How to look at energy efficiency through nontraditional demand-side management
How to look at energy efficiency through nontraditional demand-side management
Industries
are shifting to DSM, using strategies like smart energy storage systems and
solar installations for improved energy efficiency
By
Dr. Michael Wrinch February 2, 2024
Learning Objectives
- Explore the integration of smart meters, communication networks and data management systems for comprehensive energy monitoring.
- Gain an understanding of the challenges associated with nontraditional demand-side management (DSM).
- Develop a new perspective on stranded assets, such as parking lots and rooftops.
Demand-side management
(DSM) insights
- This article explores examples of nontraditional demand-side management (DSM) techniques, comparing them to traditional methods and highlighting the associated risks and benefits.
- There are four key areas in which the energy market has changed, giving the consumer more power over the use of electricity.
In
recent times, with the rise of artificial intelligence, advanced communication,
storage technology and the commercialization of solar technology,
nontraditional demand-side management (DSM) options have emerged. These
innovative techniques can produce significant results in distinct ways.
The
energy markets have changed in four ways over the years, with smart metering
enabling the billing of total energy, time of use and peak power.
Figure 1: Example of a stranded asset parking lot that was converted into a solar energy facility in Shanghai. Courtesy: Hedgehog Technologies
1.
Transforming stranded assets into renewable energy generators
Stranded
assets such as parking lots and rooftops can be converted into valuable
energy-producing areas by installing solar photovoltaic panels. These solar
panels have the capacity to generate megawatts of electricity on-site, reducing
the need to purchase energy from the grid — particularly during peak daylight
hours when energy prices may be higher. Recently, Six Flags Magic Mountain
initiated a groundbreaking 12.37-megawatt solar carport, described as
California’s largest solar energy project.
2.
Leveraging energy storage to reduce peak demand and charges
The
challenge with solar is that it’s not always sunny and the energy may not be
needed when solar production is at its highest. This lack of dispatchability in
solar production can be addressed by coupling it with energy storage systems,
such as batteries or thermal storage. These systems can be charged during
periods of low energy demand and discharged during peak demand periods This
helps shave off the peaks of energy demand, optimizing load levels to achieve a
higher load factor (the load factor is calculated as peak power divided by
average power), which can result in lower utility bills. Many utilities charge
higher rates during peak times for both peak power and energy.
By
reducing peak demand, facilities can avoid or minimize demand charges, which
are calculated based on the highest level of power drawn (typically over a
15-minute rolling window) during a billing period. Energy storage can further
enhance the reliability of the power supply and provide backup power during
outages, which is critical for many industrial processes or to prevent
brownouts.
3.
Participating in demand-response programs
Nontraditional
DSM often involves integration with smart grids, which can provide real-time
data on energy consumption and enable more sophisticated energy management
strategies. Facilities can participate in demand-response programs, wherein
they agree to reduce their energy consumption or deploy battery-stored solar
energy during periods of high demand on the grid in exchange for financial
incentives.
This
may involve automated systems that respond to signals from the utility to
temporarily limit energy consumption by dispatching batteries, using stored
thermal energy on-site, dimming lights, adjusting heating, ventilation and air
conditioning settings or temporarily shutting down nonessential equipment.
Figure
3: Graphic recreation of a stranded asset being repurposed for solar energy
generation. Courtesy: Hedgehog Technologies
4.
Optimizing energy use through monitoring, analytics and time-based dispatching
Energy
monitoring involves the full integration of smart meters, communication
networks and data management systems. For example, in industries attempting to
electrify their fleets with forklifts, cars and trucks, the demand can
potentially exceed the main service capacity. Energy monitoring and control can
monitor the services on the main feed and can dispatch or curtail charging
infrastructure based on the loading of these lines, thereby enabling more
efficient use of existing assets.
Additional considerations for DSM
While
nontraditional DSM strategies can yield significant benefits, there are some
pitfalls to consider before proceeding. The first challenge lies in the high
initial investment costs associated with many of these technologies. Although
this aspect can be stifling, it is important to note that there are continually
new incentives, rebates and financing options that can help offset the initial
costs. Additionally, exploring options such as energy service companies that
offer performance contracting and front-load the costs can be a viable
approach.
The
second challenge concerns the complexity of integrations. Nontraditional DSM
methods are often more intricate than jobs such as a simple lighting retrofit.
They demand thorough planning and consideration of the variables. For instance,
solar installations on rooftops or parking lots may need a seismic and
geotechnical assessment to ensure the surface can support the additional
weight.
The
third challenge is investing in the wrong technology or opting for a technology
that may become obsolete and is costly to upgrade. While all technology
eventually becomes obsolete, careful consideration is essential to ensure it
can be managed in a manner that won’t require a complete overhaul shortly after
the project is complete.
Figure 4: Photo of Hedgehog Technologies' electrical engineer Aileen Maynard standing near a large solar installation. Courtesy: Hedgehog Technologies
Nontraditional
DSM is the future
Overall,
nontraditional DSM techniques hold the promise of achieving energy reduction
and efficiency, resulting in cost savings on production and a reduced carbon
footprint. Regardless of the goal, these options are going to play an
increasingly important role in addressing the energy efficiency and
conservation needs of a plant.
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Dr. Michael Wrinch
Author
Bio: Dr. Michael Wrinch, P.Eng., is the president of Hedgehog Technologies, an
electrical engineering consulting firm that specializes in risk management. He
is certified through TÜV Rheinland, an international gold standard in safety.
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