Forget Efficiency and Demand Response, Load Bank for the Grid

All the Smart Grid attention is on Demand Response, that is, on the half dozen times a year when the grid runs out of energy or has to turn to expensive energy sources. All the building attention is on efficiency, using the least energy inside the building possible. Neither approach supports renewables, or distributed energy resources. Efficiency may reduce the ability to respond to Demand Response signals. Buildings should turn to productive load banking instead.

When I am at home, my smart thermostat turns my home temperature up and down. In the winter, the temperature setting goes way down at night. The house becomes parsimonious just as the local wholesale power market goes negative. The price goes negative because it is expensive to turn up and down the power generation. I don’t see wholesale prices, so efficiency is what I do for now. In a better market, I would increase my use at night, and turn the temperature down when I get up. Instead, I efficiently use more energy by using it at the wrong time.

Load banks are familiar to those who test and install generators. Generators can burn out the circuits they are on, or the equipment on those circuits, if there is not adequate load to consume the power generated. Load banks are paired with generation to use any excess energy. Most load banks do little more than heat the air to burn off excess energy. If we can make our building systems create value while load banking, we will turn grid economics upside down.

Renewable energy, or rather intermittent generation, often generates energy when there is no market for that energy. Wind farms often produce far more energy than they can sell at that time. Just google “wind farm Texas toaster” for description of the problem. The problem is not, as many decry, subsidies. The problem is lack of markets. With no place to sell enough power when the wind is blowing, the great Texas toaster load banks wind power into heat.

Building systems should look at what they can do to use more energy, but at the right time. Ice Energy, which chills water at night to avoid air conditioning during the day, is better thought of as a daily load bank. The real impulse behind utility support of electric cars is that if charged only at night, they provide load banking while expanding their market.

I always laugh when I go to a conference “powered by wind”. I know that they are paying un-economic fees to a power source that is not the wind, which promises to buy wind at some later time. If you want to encourage renewable energy, you need to buy it when it’s available and cheap, not on some pretend market which sells you conventional power, and promises to buy wind later when it is not needed. If we instead bought energy when the wind is blowing, we would increase the value of wind energy. I the great wind farms could sell more than 40% of what they generate, they would be instantly more economic, without waiting for new technologies. Think of it as canning fresh tomatoes in summer. You don’t can tomatoes in summer to heat the house; that would suggest canning in winter. You can tomatoes in summer because that is when they are fresh and cheap.

The most efficient place to store energy is in the middle of a process you were going to do anyway. Ice Energy is effective because it stores cold in the middle of the air cooling process. My home well would be a great load bank if I had a means to store several days of water pressure. A maker of home water heaters marshals thousands of home units to provide fast 4-second load banking to meet the needs of the gird—and radically changes the net cost of water heating. Load banking that performs a useful service creates value you can see every day.

Look at your buildings, and ponder, what you can do in advance, and do it when there is a load banking opportunity. Look for ways to productively load bank your distributed energy resources rather than sell excess to the grid. Look for ways to use more energy, right now.

Demand response happens now and then. For the last couple years, with a down economy and lower industrial demand, it might not happen at all. Load surplus opportunities happen every day. If your building systems can take advantage of this surplus, consume energy when it is cheap and plentiful, to provide service when it is expensive and scarce, you can find new value streams from energy engineering, renewable energy, and building systems.

Converging with the Internet of Things

Service integration is coming to the world of Calendars. Calendars are coming to the Internet of Things. These two trends have the potential to open up whole new classes of easy integration in buildings and in personal devices. This integration got its initial acceleration from the needs of smart energy. The long term reach, though, is much farther.

Traditional e-calendars are store, copy, and forward messages. There are five copies of a meeting for five people. Changing a meeting time requires finding and updating those five messages. This is easy if the messages are on a small office LAN on one server. It poses some daunting problems if those messages are spread over two corporate servers, Gmail, a stand-alone PC, and a cell phones. If 50 are attending that meeting, things can get complex. If it is a community schedule, with 5,000 subscribers, it is almost impossible to support the diversity of clients.

Jon Udell (http://blog.jonudell.net/) has long advocated distributed calendars for communities, encouraging people and organizations to be the authoritative sources for their schedules instead of sending a flurry of messages that may soon be out of date. (If you are interested, read all you can on the ElmCity Project.) Jon’s blog introduced me to Mark Surman and the phrase “cities that think like the web” (http://commonspace.wordpress.com/). When we apply these approaches to Smart Energy, we may get “grids that think like the web.”

The way that WS-Calendar has developed since Thanksgiving makes this all easier. Standard REST and SOAP services for calendar communications reduce the barriers to distributed community calendaring. Mike Douglas is testing his SOAP concepts to synchronize dissimilar calendar servers (Exchange and BedeWorks). Community Calendars are about to get much easier to implement.

WS-Calendar, though, was created to support smart energy. Schedules and events for energy shortage and surplus, communicated along with volatile prices.

There is a long history of simple calendar communications for small devices. Older cell phones interacted with iCalendar communications despite extreme resource constraints. Open source and silicon already exists for simple calendar processing. When these services get reduced chips that we can afford to put everywhere some interesting things happen.

Consider a Calendar Service on your smart thermostat. Add a community calendar server to your house. Maybe it’s on the magnetized thin film computer stuck to the front of the refrigerator. Maybe it’s on your wireless router. The home community calendar shares schedule services with the Dad’s Android, with Mom’s Blackberry, and with the Kids iPhones. Maybe, following the Elm City model, the house calendar subscribes to the high school community server, and that of the church as well. The electric car will need this kind of information, and can create charging schedules that are themselves shared. Messages about schedule electricity shortage and abundance come through the Energy Services Interface (ESI).

Then we would have a smart thermostat that thinks like the web, in a house that thinks like the web.

Continuous programming for Smart Energy Buildings

Best practices in high performance buildings recommend continuous commissioning. Keeping building systems at peak performance requires knowing what high performance looks like, and how that performance changes over time. But performance requirements change over time. Policy based system management requires that we know the purpose of each room. We need continuous programming for buildings.

Building programming is the name of the pre-design conversations about what an owner expects to get out of a building. Designers ferret out each purpose. The design team and the owners establish clear expectations of the expected performance for each function. Some praxis defines the energy performance expectations for each space as well. This one time activity is complete before serious design begins.

This program should guide the initial commissioning requirements. Does this space support the ventilation requires of a dining area within it energy budget. Does another space meet its energy budget while supporting high-end retail? Does the ventilation support maintaining alert cubicle workers throughout a long day? These considerations can support policy based building system management.

There are two barriers to developing systems to support this model. There is no standard for passing the original program information to the commissioning process. Programs change.

It is quite common at Universities to spend 100 grand to renovate a brand new building. During the years between programming and construction, some purpose changes, some new program started, and 4 offices are now a classroom. The break area is now a data center. The back lab is now a reception space for the new academic discipline; it now has an exterior door. In commercial buildings, each new tenant may have new requirements. Things change

Even without renovations, the building program changes, and with it, the performance requirements. The squash court becomes a spinning class, supporting many sweating exercisers rather than two. The conference room becomes a break room, and adds a refrigerator and microwave. The new break room must be better ventilated, to avoid tormenting the work force with the smell of microwave popcorn. These changes create new program requirements that should in turn update the energy performance requirements.

To meet their promise, LEED buildings need to be commissioned against their designed performance, the design that was built on the original programming. To maintain that performance, this commissioning should be continuous and automated. To keep that commissioning meaningful, it its targets should be updated as the buildings program requirements change. And that requires continuous programming.

Microgrids Big and Small

Last summer, we used the call “Every end node is a microgrid” to focus smart energy standards activities. Like the regional grids, a microgrid is responsible for running its own operations, and for supporting its own needs. Like the regional grids, a microgrid uses market operations to acquire what it cannot make itself, and what it can buy more economically than it can make itself. Like the regional grids, a microgrid can contain microgrids that are responsible for their own operations.

Last week, a board member of NAESB asked me to define microgrids. I was invited to speak to NAESB to explain what interest natural gas suppliers might have in smart grid standards. I was surprised that an idea so central to national smart grid efforts needed to be described to one of the most significant energy market and business practices groups. There is so much going on so fast right now, and the pressures to accelerate are so strong, that some of us get used to ideas before we ever have to explain them.

The list of end nodes that might be microgrids starts with homes, commercial buildings, and industrial sites. Within an end node, different subsystems can interact much as they do within the larger grid. Building systems could bid for access to site-based power. Microgrid events can trigger demand response (DR) behaviors from the building systems or building zones. Microgrids can contain and be contained by other microgrids.

Buildings and sites can be participants in local area microgrids. Campuses, and military bases present existing business models for microgrids. Rather than as integrated control systems, these contained building microgrids grids can participate collection of autonomous entities. Each building / microgrid could then bid for and obtain energy supply and reliability from larger microgrid.

The models propagated by the District Energy Association can inform microgrid thinking. The defining characteristic of District Energy is cogeneration, in which a single plant may make electricity, steam, and hot water. Because steam can be used to power cooling, cogeneration systems often produce chilled water was well. Each of these products can find a market within the microgrid. The district energy plant then becomes the market maker, shifting modes of energy delivery to match the bids from the autonomous buildings it contains.

Microgrids can opt to be more intimate, and to communicate more frequently than does the larger grid today. Buildings may choose to negotiate available load shapes, sharing planned energy use and backing-off of planned energy-using processes to maintain overall market conditions within the local microgrid. Microgrids can maintain their own cybersecurity regimes, tighter or looser than those in the wider grid as befits their needs.

These local area microgrids will require regulatory reform to flourish. Industrial parks must avoid these business models today lest they become regulated as a public utility. Commodity home builders are exploring providing turnkey district energy and management, turned over to the turnkey homeowner’s association (HOA) they provide today. When combined with the new package solar thermal systems, shipped in a single container, and installed on-site, neighborhood microgrids may be the future of distributed energy.

Today, in many states, an energy supplier becomes a regulated utility when the energy delivery crosses a public road. In new neighborhoods, the homebuilder finishes a neighborhood and turns the rods over to the city. Green builders are already considering turning title for the roads over to the HOA instead, to avoid such regulation. Future regulatory changes could open up existing neighborhoods to this kind of energy management.

Microgrids can extend down as well. Each tenant in a commercial building could operate its own microgrid, existing within the environment of the buildings microgrid. One could argue that green leases are beginning to move in this direction. I find it fascinating to think of intra-building market opportunities. Can we use intra-building markets to re-use what is today waste energy? Does the data center in the basement defray costs by selling its waste heat to the other tenants? Would some tenants pay a premium for site-generated energy? By hiding the complexity of interoperation behind an economic veneer, can we improve performance and reduce integration costs?

Microgrids, whether virtual or real, are an important organizing concept of smart energy.