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Energy Flexibility Clearinghouse

Conceptual framework to visualize the opportunity

Amar Pradhan

on 12 January 2016

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Transcript of Energy Flexibility Clearinghouse

Your Home
Neighbor gets Rooftop Solar installed
an EV
Installs a Smart Thermostat
Installs a Smart Water Heater & other smart appliances
Neighbor now has the ability to balance supply and demand within the home, using solutions from the likes of SolarCity, Nest, and Tesla.

But without addressing the needs of the various echelons of the energy ecosystem, there is limited economic value to produce from these devices.

Let's step through those various Echelons...
Distribution Grid
Transmission Grid
A Microgrid
can act similar to an instrumented house to internally balance supply and demand
Retailer A Customers
Retail Opportunity Example:

Retailer A which serves your neighbor and a business district can improve supply procurement by toggling demand of loads that it serves.

Such a retailer could create a market that incentives flexile demand based on it's supply procurement costs and risks.
Opportunity Example:

Distrbution utility which serves your area can defer an upgrade due to increased peak capacity needs, by procuring flexible demand to toggle in times of stress

Such a utility could create a market that incentives flexile demand based on the local peaks
Transmisson Opportunity Example:

TSO/RTO which serves your region can improve delivery by toggling the loads that it serves.

Accordingly most all TSO create ancillary service markets (spinning reserves, frequency regulation, demand response, black start, etc) which theoretically are addressable by aggregated DER. The opportunity is for DER assets like those installed by your Neighbor to cost effectively be able to service these markets
Generators deliver power
on the Transmission grid
So What are the opportunities that these various echelons provide for your Neighbor's DER?

Let's step through....
Generator Opportunity Example:

Generator must mitigate availability risk and/or intermittent fuel/renewable supply risk.

Such a Generator procures flexibility (e.g. spinning reserves) effectively from other generators. In addition it could contract directly with flexible loads (like aggregated DER including your Neighbor's) to toggle demand in response to generation uncertainty.
Neighbor's DER could respond to needs of a Generator, TSO, Distribution operator, retailer, in addition to optimally balancing within the home for comfort and security reasons.

However all these market opportunities need to be made available for the DER to toggle to, with a process to register the DER, optimally allocate a given DER to a given market, and settle transactions.

I propose that we build a clearinghouse that enables linking the energy ecosystem to DERs
Full transcript