Information Communication to Promote Consumer-side EMS

It should be necessary to focus on the EMS installation impact to profitability in addition to electricity cost reduction and thus the evaluation approach was proposed to promote consumer-side EMS. In order to use this evaluation approach, non-energy related additional data and their collection measures would be required. For example, detailed weather and temperature data, performance data of facilities and statistic data related to human behaviors are typical. In addition, more detailed status data should be need to collected in order to recognize accurate conditions for human activities or facilities performance. Although these data and their collection infrastructure should contribute to consumer-side EMS promotion, statistic and detailed data collection requires a lot of data collection infrastructures including sensors, communication network and data processing information systems, and it lead to high installation cost of EMS. Therefore, the important challenge of consumer-side EMS installation is to achieve detailed and various status data collection and low cost at the same time. Because low cost infrastructure requires

implementation cost reduction in addition to equipment cost reduction, wireless and auto configuration technologies which can reduce implementation cost should be expand. Table 4-2 shows information and its infrastructure to promote consumer-side EMS.

Table 4-1 Information and its Infrastructure to Promote Consumer-side EMS Required infrastructure

Energy data collection infrastructure

Sensor (Current transformer (CT), Voltage transformer (VT), Digital, Analog), Smart Meter, Cubicle type high voltage receiving equipment,

Communication network in the facility and between service provider and consumer

Data collection systems and interfaces to other back office systems Additional

data collection infrastructure

Sensor (CT, Digital, Analog),

Communication network in the facility

Data collection system and interfaces to other back office systems and external systems such as weather information system, market information system.

Required Information Electricity

related information

Power consumption amount (Total, Equipment, Area etc.) Electricity quality (Voltage, Current, Power factor etc.)

Profitability related information

Revenue related information (Revenue, Sales amount, Cost etc.) External information (Weather, temperature, irradiation) Environmental information (Indoor temperature, CO2, illuminance etc.

Demand Response (DR) 4.3.

power

mechanism which promotes power demand reduction in case of power supply shortages by paying considerations from power companies to their customers on a contract basis.

Unlike the existing one-way power supply from power companies to their customers, collaboration control between power supply and demand sides is a major characteristic point of Smart Grid and DR is one of demand adjustment functions in demand-side. In some power markets, DR programs have been already provided and contributed to demand adjustments (e.g. peak cut, peak shift) and electricity reserve. Therefore, in this section, DR programs applied to some power markets are systematically organized firstly, and then effectiveness of these DR programs is considered. In addition, the applicability of DR programs for Japanese power market is discussed and effective DR penetration models in Japan are considered.

4.3.1.Previous Studies and Systematical Reorganization of DR Programs

In this subsection, current major DR programs are listed up and reorganized by their characteristics.

Previous Studies of DR (1)

In various studies, the definition of DR and provided programs in some power markets were introduced. In [4-11], various DR programs were categorized as incentive based program (IBP) or price based program (PBP), and IBP were divided into Classic Program and Market Based Program . PBP is based on a dynamic pricing which reflects wholesale electricity price and thus it is not a flat rate. The final target of these programs is to level power demand curve providing high-price in peak time slots and low-price in non-peak time slots. In [4-12], DR programs in major U.S. markets, such as NYISO (the New York Independent system operator (ISO)), PJM (Pennsylvania, New Jergey and Maryland) interconnection and ISONE (ISO New England), were classified into two big program types;

Emergency Program and Economic Program , and execution results of these programs such as demand reduction results and registered capacities were introduced. Also the research explained power were equivalent to PBP in [4-11] as a method to shift price volatility risks to their customers or to take the risks themselves.

Reference [4-13] and [4-14] studied DR programs for business and residential customers

respectively and pay back programs which customers got rebate corresponding to their demand reduction were introduced in addition to price reduction based DR programs.

Classification of DR Programs (2)

In order to consider effective DR programs which promote demand reduction in peak time slots, this research reorganizes existing DR programs by the viewpoints of benefit for service providers such as power companies and consumers. To generate the benefit, it is important to understand who provides incentives of DR programs, that is who will get benefits by the demand reduction in consumer-side.

DR programs can be classified into either market participation style or price menu style (which is provided by power companies including DR aggregators). That means incentive providers of DR programs can be markets and/or power companies. Therefore, various DR programs are categorized into market base and price menu base firstly and then detailed consideration to promote DR programs are discussed.

a. Market Based DR program

In this program type, the incentive providers are markets (i.e. power exchange (PX), ISO, regional transmission organization (RTO) or network operator etc.) and the benefits include power supply reliability improvement, market stability and operation efficiency etc. Although autonomy initiative models providing subsidies for regional environmental issues might be considerable, this is out of scope in this research.

Next, incentive amount in the market base DR programs is considered. The U.S.

market based DR programs are categorized into Emergency Program and Economic Program in [4-12]. These program types in the market based programs are important to consider incentive estimation. Emergency Program is for the purpose of power supply reliability, therefore the urgencies of this type of DR programs are very high and some programs require penalties such as charges or suspension of trading in case that contracted demand reduction would not be achieved. Economic Program is for the purpose of market price reduction, price stabilization, power procurement from various generation sources, sufficient reserved capacity and load leveling etc. Basically, possible demand reduction amounts in these programs are registered before trading, and rebates would be paid from the market corresponding to demand reductions, or penalties would be paid by consumers for the non-attainment demand reduction time slots.

As same as normal power exchange, bulk trading is efficient in DR programs and thus DR aggregators who aggregate

appeared in the U.S. and other markets. In addition, some U.S. markets provide DR programs for ancillary service [4-15]. In this kind of programs, DR is used for a power supply reserve method for voltage and frequency management in power systems.

Therefore, it is classified as Emergency Program in this research.

b. Price Menu Based DR Program

Incentive providers in price menu based program are power companies and/or

demand reduction. Here some price menus which promote demand cut and shift are introduced.

Time Of Use (TOU)

One day is divided into some time slots and set a different electricity unit price for each time slot. By setting higher electricity unit prices on peak time slots and lower electricity prices on non-peak time slots, demand shifts are promoted.

Critical Peak Pricing (CPP)

For specific dates or time slots in which power supply would not meet demand, additional cost for power use to TOU price would be required to consumers targeting for larger amount of demand shifts.

Real Time Pricing (RTP)

Electricity price for each time slot fluctuates reflecting wholesale electricity price. It is sometime called dynamic pricing.

Peak Time Rebate (PTR)

In this program, consumers would be paid rebates corresponding to their demand reduction amount, while incentives of TOU, CPP and RTP for consumers are possible cheaper electricity price.

Reorganization of Major DR Programs (3)

Figure 4-9 represents major DR program types which are reorganized based on the incentive provision viewpoint.

Figure 4-9 DR Program Types Based on the Viewpoints of Incentive Provision