Overview on Demand Side Management

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potential for several other countries as well who have RC – like Australia, Austria, the ... consumption in peak time the company even paid to them if ... retailer and so it is not adapted to competitive electricity market. ... controller to switch controllable loads on and off. .... only a one-off payment ($25 for residential and $50 for.
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Overview on Demand Side Management Beáta Polgári, Dr. Dávid Raisz and Dr. Bálint Hartmann

 Abstract-- To meet rising demand, utilities normally call upon peaking power plants to increase power generation. Demandside management (DSM) can work reversely – instead of feeding more power to the system, it pays to consumers to reduce their consumption in desired periods. This normally shifts a part of the load to valley periods. This paper aims to give an overview on demand side management experiences from all over the word. Both the results and the enabling technologies for tariff incentives, direct load control (DLC) and their combinations are examined. The application of ripple control (RC) and longwave radio control (LWRC) for DLC is highlighted and their advantages are summarized. Index Terms—demand side management, demand response, ripple control, direct load control, ripple control, long wave radio control

I. INTRODUCTION

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n Hungary, a RC system exists for the control of electric storage water heaters (ESWHs) and some space heaters, however, the assets of that infrastructure are approaching the end of their lifetime. Long-wave radio control is being supported as one alternative; however, smart metering technology is also entering a large-scale pilot project phase. RC or LWRC and smart metering together provide opportunity for more sophisticated demand side management than it exists currently. This has a high potential for several other countries as well who have RC – like Australia, Austria, the Czech Republic, France, Germany New Zealand, Slovakia and the Republic of South Africa - or access to the long-wave radio signals. With three long-wave antennas in Europe - two built in Mainflingen and Burg (Germany) in 1995 and one in Lakihegy (Hungary) in 2005 - EFR, the operator can cover Germany, Belgium, The Netherlands, Switzerland, Austria, Czech Republic, Slovakia, Hungary, Slovenia, and most of Croatia. Some of the applications are mentioned in papers [1][2][3]. However in some countries ToU and CPP tariffs proved to be sufficient for load shifting, better performance can be achieved by DLC, especially when combining tariff incentives with DLC. DLC is already considered in many countries for tariff switching, lighting control and different load control purposes, but nowadays new DLC applications are also being explored. For instance DLC for offering Beáta Polgári is phd student at the Department of Electric Power Engineering, Budapest University of Technology and Economics, Budapest, Hungary (e-mail: [email protected]). Dr. Dávid Raisz is associate professor at the Department of Electric Power Engineering, Budapest University of Technology and Economics, Budapest, Hungary (e-mail: [email protected]). Dr. Bálint Hartmann is assistant lecturer at the Department of Electric Power Engineering, Budapest University of Technology and Economics, Budapest, Hungary (e-mail: [email protected]).

ancillary reserve capacity can be considered as a viable option. This dynamic application favours the penetration of renewable generation (mainly PVs) and the application of heat pumps. It has greater significance for power generation portfolios with small hydro proportion. In the first part of this paper some experiences are presented using tariff incentives for demand side management, but the focus is on the second part about DLC projects and the possible use cases of DLC. II. TARIFF CONTROL There are basically three types of pricing methods used for DSM:  Time-of-Use Pricing (ToU): This means a higher tariff in peak periods and lower in off-peak period. The simplest rate involves just two pricing periods, but there can be more.  Critical Peak Pricing (CPP): The peak rate is much higher than ToU rates but it is only used a few days each year, the timing of which is unknown until a day ahead or perhaps even the day of a critical pricing day.  Real Time Pricing (RTP): This tariff design features prices that vary hourly or sub-hourly all year long. Customers are notified of the rates on a day-ahead or hour-ahead basis. There are many other tariff types as well, like the Extreme Day Pricing (EDP) which is similar to CPP except that the higher price is valid for a whole day on a critical day. One of the world’s largest real-time pricing program was conducted by Georgia Power in place for over 10 years with 1,700 commercial and industrial volunteer customers. Their peak demand was 5,000 MW and up to 1,000 MW of peak demand reduction was achieved. They used day-ahead and hour-ahead hourly pricing and could predict the load response which is presented in Fig. 1. The spot price was only applied above a limit, but under it, standard price was calculated for the ‘baseline’ of the consumption. To encourage the customers to reduce their consumption in peak time the company even paid to them if they consumed less than this normal baseline usage. [4] The Statewide Pricing Pilot is quite well-known conducted in California which used ToU and two types of CPP pricing with the aim of shifting load from peak to valley periods and to reduce the load on critical summer days. It was important that a part of the consumers involved in this pilot participated in a DLC program as well. They proved that load reduction was definitely higher with enabling technology (here with a home climate control system). [5] The combination of ToU and CPP is used in

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several cases just like in the pilot of the New Hampshire Electric Coop. [6]

electricity bill, however, less than 20% of electricity consumers have chosen Tempo tariff. Tempo customers usually have particular load profiles and are prepared to make constraints for a relatively small financial saving compared to their incomes. It is important to note that Tempo tariff was specifically designed for a monopolistic retailer and so it is not adapted to competitive electricity market. Tempo is not offered for new customers since July, 2009. [8] III. DIRECT LOAD CONTROL In this section some DLC practices are presented with the enabling technology and the compensation for the consumers.

Fig. 1. Load response for different real time prices at Georgia Power [4]

In Ireland a demand winter peak reduction scheme was developed and tested during the winter of 2003 and 2004 with industrial customers. Consumers could apply in advance and offer reduction capacity (by reducing consumption or by onsite generation) for reliability and energy payment in return. Out of the 639 applicants, 186 were contracted, but finally only 25% of them were reliable and earned full payment, 25% was completely unsuccessful, 19% could provide less capacity but constantly and 18% provided less capacity with high variation. In conclusion, a 1,8% peak reduction has been achieved compared to the winter peak one year before even though the demand for the entire year increased by 3%. [7] A more complicated tariff system was introduced in France called ‘Tempo’ tariff. In France electricity bills for residential and small business consumers include a disposability charge based on the maximum demand and an energy charge based on the consumption and the tariff construction chosen out of 3 options. The first one is a fix price for low consumption households or weekend houses. For higher consumption households without electric heating they offer higher price and ToU energy tariff with an offpeak from 10 PM to 6 AM. For high-consumption households with electric heating EDF suggests the ‘Tempo’. They have three colors for marking days based on weather and they have ToU tariff each day thus offering 6 rates altogether. Blue marks cheap days, white corresponds to medium while red designates high tariff days. There are 300 blue, 43 white and 22 red days each year counting from Sept 1. Sundays are always blue, holidays and weekends cannot be red and a maximum of 5 red days are allowed continuously. The consumers are informed about the color of the next day by ripple control signals using a RC system. Most tempo consumers have a display that turns to the right color and a beep signal is enabled in case of a red day. Consumers without display can check the colors on the website or by phone. Consumers adjust their appliances manually but they can also apply for DLC in order to control water and space heating automatically. Tempo tariff has led to a reduction in electricity consumption of 15% on white days and 45% on red days. The program achieved a 90% consumer satisfaction and the consumers saved 10% on their

A. Directly controllable loads The most promising controllable loads are ESWHs and space heaters, but electric vehicles have a great potential as well in the future. Air-conditioners are also controlled in several projects especially in the United States, but they do not represent such a big controllable power and may cause high inconveniences for customers. B. Customer-side infrastructure for DLC On international level, the landscape of possible customer-side infrastructure shows a colorful variety. In some countries – e.g. in New-Zealand – the customers have only one meter and if they participate in DLC they get a lower flat rate than those who do not participate. Customers may also have two meters when supporting DLC – one usually for the flat rate tariff and the other for the controlled tariff. This is the case in Hungary and some parts of NewZealand as well. There are also meters equipped with two metering elements, a signal receiver and a built in relay or controller to switch controllable loads on and off. Controllers in Australia for example are capable for switching 31.5 A thus switching the load directly. However relays couple maximum 2 A circuits to control load circuits indirectly. Moreover, some controllers let the controllable load operate also at 50% and 75% load level. In the Czech Republic smart meters have more relays – one for tariff switching, one for ESWH control and the third is for heat pump control. C. Examples for DLC RC exists since 1975 and LWRC from the early 1990’s in Hungary, for controlling mainly ESWHs (and also a smaller array of electric storage space heaters) [9]. (In some cases DLC is still performed by pre-programmed switching timers, but this old technology is being replaced by LWRC receivers in case of malfunction.) The receivers are not addressed one-by-one, whereas it is theoretically viable with LWRC. A control signal has control over a group of receivers reaching thousands of appliances at once, often hundreds of kilometers apart, in some seconds. Usually two meters are located at customer’s premises participating in DLC – the one for the uncontrolled load with flat rate tariff (so called ‘A’ tariff) and the other for the controllable load with reduced tariff (B tariff). The control signal receiver’s relay enables the controllable load and the ‘B’ tariff meter. According to current Hungarian regulations a total of 8 hours (7 hours in summer-time) of up-time (when the RC

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group is switched ON) has to be ensured, 2 to 3 hours of which have to be provided in peak-period (6-22 in wintertime, 7-23 in summer-time), finally the up-time in peakperiod has to be minimum 30 minutes after each “ON” command [10]. Similar RC system exists in Slovakia and in the Czech Republic, since the deployment of the technology dates back to the Czechoslovak era. There are only a few areas in the Czech Republic in North and Central Bohemia and North Moravie, where RC coverage is not 100% but 90-95%. When a command is sent to the receiver it is transferred from the receiver to the electricity meter, which switches the tariff and operates the contactor that directly switches the controlled appliance on or off. Some receivers have extra functions like delayed switching functions to help voltage restoration operation. Concerning the controlled circuits, there are single and multi-control receivers which separately control the tariff, the switching of heat storage applications and the direct heating appliances (e.g. heating and domestic hot water heater) [11]. The policy prescribes 8 hours of operation per day for heat storage applications and 20 hours a day for direct heating appliances. The utilities could achieve that many customers wait for the low tariff period to use their energy demanding appliances like the washing machine or the iron. It is possible in the Czech Republic to change switching schedules every day since the consumers are updated on the low tariff periods. Since the legal unbundling of the local companies in 2005, RC lost some of its significance. A survey was carried out in 2003 that showed 2,500 MW of ripple controllable heat storage of which 1,350 is synchronously attainable [12]. The utilities in the Czech Republic are willing to use RC in cooperation with smart metering [13]. Unlike in the Czech Republic, LWRC was introduced in Slovakia and thus they have approximately 75,000 receivers. Although, they do not use it for DLC, only for tariff switching of dual meters what is available both for residential and commercial customers. The tariffs and the switching timetable are available online for the customers. The north-western part of Croatia, mainly the Istria Peninsula has RC which was installed more than 20 years ago for shifting heating load to off-peak period. Those consumers who participate in DLC have two meters installed. One is installed for the flat rate tariff having voltage all the time, while the other for controllable loads with a special tariff system attached. Several DSOs have been using RC in Germany for tariff, load (direct heating, space heating and domestic hot water production) and lighting control [14]. The nearly 30 year old RC system has been replaced by LWRC by 2009 in the area of EON Bayern, one of the biggest distribution companies in Germany. In 1999, a dual tariff was introduced for weekends and holidays with success. The transition is made by remote programming. They plan to use LWRC in cooperation with smart metering, as well. Beside tariff switching, DLC and timetable updating, they try to convey whether information and public warnings through the home display [15][16]. In Austria, DLC is used for lighting control, space heater and ESWH control according to [17]. In Salzburg county, up to 2000 they only used RC but since then they are changing

the receivers for LWRC. They had basically two tariffs but at some parts interruptible tariff is considered which means that the customer gets a fix rebate if he accepts that the utility may interrupt his power supply [18]. In the Netherlands, a plugwise load control system was tested with a special plug through which the appliance to be controlled should be connected to the sockets. These plugs act like interval electricity meters that transmit the consumption data to the Plugwise Source Software using ZigBee communication. The Plugwise Source Software can be installed on the consumer’s PC. It can display the consumption data in well-organized charts and creates switching schemes for the plugs. Energy saving is achieved merely by switching off appliances in periods when they are not used. Moreover, plugs can be aggregated into virtual power groups. [19] In 1955, France has started the deployment of RC to switch tariffs between off-peak and on-peak and to control ESWHs [20]. France had a PV and storage integration supporting DLC project called Millener in three isolated islands – in Corsica and Réunion started in 2011, and in Guadeloupe since 2012. Residential heating/cooling could be switched off or diminished in performance for 20 minutes by EDF through special gateways but the customer had the opportunity to switch his appliances back at any time if it caused any inconvenience. The storage was controlled to smooth PV generation, inject power into the grid in peak hours, provide a backup in case of a blackout and help to locally use the PV-generated energy. [21][22][23] UK had RC first for storage heater and water heater control. Later it has been upgraded for tariff switching capability. Since 1984, a radio teleswitch system was being built for tariff changing. In 1978, the ‘Economy 7’ tariff was introduced allowing a 7 hour operation on night tariff [24]. Then in 2004, ‘Economy 10’ appeared with a maximum of 10 hours operation providing off-peak tariff also in the afternoon and in the evening [25]. In Nordic countries electrical heating is common in the residential sector. In Sweden there are approximately 300,000 family homes equipped with electrical heating which have up to 4-5 kW peak load reduction potential each without considering water heaters, confirmed by a trial during the winter of 2003/2004. Remote control was performed solely on 5 extremely cold winter mornings for 2 hours by Abelko’s system installed in the early 1990’s and thus 67% peak reduction has been achieved. There were no customer complaints. [26] Until the beginning of the 1990’s, DLC was used in Finland, but after the market liberalization it faced difficulties. However DLC still has a great potential in peak load reduction by the control of electric heating. Therefore a pilot project was conducted from 2010 to 2011 with twoway communication to remotely read meters. A heating load control model was created one day ahead based on dayahead market prices trying to shift peak load to night. This led to cost savings thanks to the cheaper night tariff. [27] In Bergen, Norway, a smart home automation system was tested by smart metering in a commercial building having high electric consumption thanks to electrical space heating, water heating and swimming pool heating. They offered ToU tariff for 24 households with peak price between 7 AM

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to 10 AM and between 5 PM and 8 PM. As a result, significant load was shifted from these peak periods. The automation system had a feature that customers could switch their appliances to saving mode when they left their homes which proved to be very successful. In another pilot a building energy management system (BEMS) was tested with Time of Day (ToD) tariff. One part of the ToD tariff is for power peak payment which implies that only the registered power in the defined peak periods is included in the settlement basis. The BEMS was programmed to control electrical equipment with the aim of cost minimization (and so for load shifting from peak periods) by rotating the turning on/off of the different loads. It seemed to be effectual for peak load reduction. Another BEMS system was tested at a shop to control load even according to spot prices. They could achieve a beneficial load shift. [27] In Russia the main load-controlled consumers are residential consumers with electric storage heating and electric vehicles. Studies claim that controlling industrial and agricultural consumers are also effective. They also considered the control of hydrogen vehicles. [28] The Republic of South Africa also installed RC at the end of the 1950s but currently LWRC, PLC, and the combination of LWRC and PLC are also used. RC is the most common but turned out to be uneconomical and customers kept bypassing their RC receivers probably since there was no ToU tariff to compensate for their inconvenience and incite them. Radio control is unfortunately not working everywhere. The LWRC-PLC combo is the only way which can realize two-way communication. Domestic water heaters are switched off for short time periods during maximum demand but street lights and potable water pumps are also controlled by RC. Already significant number of swimming pools are in use with a 0.75 kW pool pump in average which are investigated to integrate in DLC, as well. [29][30][31] Since 2007 South Africa can no longer entirely supply itself with electricity therefore there is growing need for DLC. A so-called Power Load Management Unit (PLMU) has been developed for this purpose that switches off the controllable loads for 30 minutes periods if the voltage drops and until it is restored. [32] Air conditioners (AC) are the most common appliances to be controlled in the USA however pool pumps and electric water heaters are also frequently incorporated in DLC programs for summer peak load reduction. Such control is often applied on a relatively small number of days per year similarly to the CPP event days which are advertised normally a day in advance by the utility when they forecast a particularly high demand. The ratio of on peak to off-peak price is higher on CPP event days than in a ToU program. The control is usually accomplished by increasing the thermostat set-point or by limiting the cycling time of the air conditioner (usually to 15 minutes even if the setpoint is not reached and can switch back only after another 15 minutes). Some of these pilots are summarized in Table I and the average peak demand reduction per house is plotted for each project in Fig.2. [33] Experiences show that 30% of peak load reduction is achievable this way while only 5% can be expected from a simple ToU tariff. This control can be accomplished by a

remotely controllable device fitted to the ACs [34]. TABLE I AIR-CONDITIONER CONTROL PILOTS IN THE US [33]

Fig. 2. The average peak reduction per household for the AC control pilots in the US [33]

Another solution for summer peak demand reduction by AC control in the US is the application of programmable thermostats tested by the Long Island Power Authority (LIPA). The control is applied on maximum 7 days a year by radio paging. The customers for the participation got only a one-off payment ($25 for residential and $50 for commercial costumers) The customers had the opportunity to override the control program. 35% of commercial and 15% of residential customers did so in average. [25] Also in Taiwan, summer peak demand was tried to be lowered. They found big commercial buildings with central AC to be effective for DLC through internet gateways. A central optimization program runs online and monitors the controllable load. If load shift is needed, it sends a command to the buildings where the local gateway calculates the load reduction for each of its central chillers. Each central chiller has an interface which can interpret the shedding command. [35] At present, in New South Wales (NSW) and Queensland a large amount of load (mainly ACs, pool pumps and water heaters) is switched by RC and a lower number also in South Australia. It is not feasible to further develop this system (by providing real-time load control) due to its lifetime especially in NSW. Smart metering shows a potential solution as the AMI rollout is well underway in Victory and more than 2 million smart meters will support load control via Home Area Network (HAN) by 2013 (ZigBee is used in Victoria). With the smart metering technology the control of heat pumps and solar-electric water heaters are also planned either through PLC or radio frequency. [36] In New Zealand, ripple control is performed by the local distribution network company or by the TSO and it is operated automatically for load shedding when the frequency falls below 49.2 Hz. Some of the households have two different meters – one for metering with the day tariff

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(called “Anytime”) and another for metering the controlled energy consumption for a reduced night tariff from 9 PM to 7 AM – similarly to Hungary. However, other customers who also take part in central load control owe one single meter (Economy 24 meters). They get electricity for a moderately reduced price - “composite rate”, that is lower than the “day tariff” but higher than the “night tariff”. Naturally, the rest of the households have one meter and they do not take part in load control. Additionally, in case of some of the industrial consumers, large capacity components are also controlled in some cases. Approximately 880 MW of load is controlled that represents 13 % of New Zealand’s load. [37] D. Possible use cases of DLC DLC is basically used for load curve smoothing on system level and for public lighting control in many European countries but can be considered for low-voltage network loss reduction, for the postponement of certain investments, for decreasing procurement costs, for reducing balancing energy or for offering secondary reserves. The network loss reduction is based on the following. If a certain amount of energy is delivered through a network, the loss would be lowest if the current (and so the load) was constant over time but it is always higher if the RMS of the current is time-variant. Therefore by adequately switching the DLC load on and off making the load curve smoother (reducing the peak load), network losses will be reduced. The reduction of peak load brings relief to network components (lines and transformers as well) as a peak load reduction at a coupling point far away from the supply transformer leads to significant loss reduction. If these components would be overloaded without DLC, then their uprating can be postponed. The procurement cost reduction is also in relation to the peak load reduction and takes advantage of the possibly higher amount of base energy and less peak energy purchase at the power exchange. However the controller could also benefit from the intraday (spot) energy price variation when shifting load from peak hours to off-peak hours similarly to the ToU tariff’s effect. DLC can be used for the purpose of decreasing balancing energy costs if it is optimized for load balancing for a given balance group. Usually any deviation from the scheduled load curve of a balance group results in a penalty both for surplus and deficit. The amount of the penalty is equal to the cost of the balancing energy needed. In case of consumption surplus (when the consumption in the balance group is higher than the schedule) some controllable loads have to be switched off and vice versa. The control reserves for frequency control are obtained from the usage of groups of controlled loads as switchable loads which can be connected or disconnected from the grid. The branch, that has control over DLC, can bid these control reserves in the market for provision of ancillary services and hence can profit from it. As a result of some of the above effects, DLC favors renewable generation increase. On the one hand, large renewable generation in LV networks can cause the increase of network losses with excessive upward energy flow unless the energy is consumed locally by the controllable loads. On the other hand, DLC can be used to balance renewable generation that can be also interpreted as lower need for

secondary reserve. The above use cases can be grouped according to the type of control as some need only static control while for others, dynamic control is necessary. Ripple control is adequate for static control – namely for peak load reduction with the aim of reducing LV network losses, postponement of investments or decreasing procuring costs. Unfortunately, significant investments are needed in the first two cases even if RC is spread and one should investigate the effect of meteorological and astronomical (sunset/sunrise) changes on the network losses. An optimal network loss-reducing DLC management system should be aware of the network topology, the load curves and the DLC potential for each LV feeder and also capable for controlling the load separately for each feeder. Dynamic DLC is feasible with LWRC or with some of the smart meter communication technologies. For the purpose of decreasing balancing energy costs or using DLC as secondary reserve, dynamic DLC is desirable as it requires an online modification of the switching schedules. Beyond these systems, total online feeder measurement and control has to be established. Moreover, for offering control reserves, one should estimate the actual controllable and non-controllable load reliably and be aware of the operational limits. In addition to the purposes mentioned already, there are still further aspects for DLC. For instance, in emergency situations, when loads should be switched off to avoid a blackout, load shedding could be carried out in a more sophisticated way, if the controllable loads would be switched off instead of whole lines in a rotary system. LWRC or higher bandwidth PLC can be used for firmware update in the receivers. DLC signals can also be used for tariff switching (ToU tariff) like in the Czech Republic. LWRC can help to increase customer awareness as it has the capacity for sending out price and carbon-dioxide emission information to the home displays which thus can show the actual electricity cost and the personal carbon footprint of the customer. It could also provide local weather forecast information, display time and date, or public warning alerts and messages. IV. CONCLUSION As one could see the California project it can be concluded that demand side management is much more effective by DLC. Tariff is important to encourage consumers, but should not be too much complicated. LWRC should be considered for DLC even combined with smart metering where the signal is available. V. ACKNOWLEDGMENT The work reported in the paper has been developed in the framework of the project „Talent care and cultivation in the scientific workshops of BME" project. This project is supported by the grant TÁMOP-4.2.2.B-10/1--2010-0009. VI. REFERENCES [1]

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VII. BIOGRAPHIES Beáta Polgári (M’2009) was born in Miskolc, in 1987. She attends the Budapest University of Technology and Economics as a PhD student. She received her B.Sc. and M.Sc. degrees in Power Engineering (Power Systems) from the same university in 2010 and 2012, respectively. Her fields of interest cover smart metering and direct load control. Beáta was awarded by the first (2008) and third price (2009) of the Scientific Student Conference, the Dennis Gabor Scientific Student Award (2008), the third prize of the Dennis Gabor Master Thesis Contest (2012) and the second prize of the thesis contest of the Student Association of Energy (2013) in Hungary and the second prize of the IEEE IAS master thesis contest (2013). Dr. Dávid Raisz (M’2006) was born in Budapest, Hungary in 1977. He graduated from the Department of Power Systems of the University of Technology and Economics Budapest, Hungary, in June 2000 after a one year research stay at Department of Electrical Power Systems of the University of Technology Graz, Austria. He obtained his PhD degree in 2011. His research interests include distribution system modeling and AI applications. He is member of the Hungarian Electrotechnical Association, IEEE and VDE. Dr. Bálint Hartmann (M’2009) was born in 1984. He received M.Sc. degree in electrical engineering and obtained his PhD degree from Budapest University of Technology and Economics in 2008 and 2013, respectively. He is assistant lecturer with the Department of Electric Power Engineering, Budapest University of Technology and Economics. His fields of interest include distributed generation, renewable energy sources and smart girds.