Consumers and Energy Facility Managers
The agreements that were reached in December 2008 on the Climate and Energy Package proposed by the European Commission established new challenges that energy managers will have to cope with. The 20-20-20 targets for 2020 – 20% of reduction of EU greenhouse gas emissions compared to 1990 levels, 20% share of renewable energy sources in EU energy consumption and 20% energy efficiency increase – require unprecedented measures if they are to be met. Optimisation of consumption and generation takes on a crucial importance under the new constraints, and strategic adaptation and energy management will support profitability and compliance with those new standards. In addition to demand efficiency measures that are the basis of any given energy project, energy managers, with effect from today, will have the opportunity to consider the use of the two levers they have at their disposal: distributed generation for decentralised energy production, and demand response for a power consumption optimisation process.
- How to assess the relevance of launching Distributed Energy resources (DER) project project for a given site?
- Will DER open up new ways to manage energy and new offers from the energy suppliers?
Detailed analysis of energy end-uses is crucial for the design of appropriate DER projects and for revealing the flexibility potential of a given customer
The EU-DEEP project developed a European demand database shared across several major utilities and a methodology to identify the most interesting customers for DER integration. By extending pre-existing segmentations with specific additional criteria, 250 market segments have been identified and specific customer assessment has been elaborated. Furthermore, EU-DEEP built or upgraded tools to simulate customer’s loads, to design and operate DER, and to rank the segments according to the DER potential index (distributed generation, storage and demand response). In fact, assessing opportunity and profitability of DER integration cannot be done without an in-depth analysis of the installations. Furthermore, a sociological survey pointed out that customer knowledge is even more critical for the running of DER aggregation business models. Indeed, building a strong and transparent partnership with the customers requires its technical flexibility potential to be quantified but also a clear understanding of the client expectations to be developed.
New DER-based offers will be developed for the customer, resulting in a change of relationships between the customer and the energy supplier
The 20-20-20 objectives will lead to a significant development of DER. The integration of these local resources into the dynamics of the market will be critical for their sustainable development. EU-DEEP developed and tested innovative DER aggregation models that enable this integration within today’s system. New energy players, referred to as “aggregators”, propose the operation of “flexible” Distributed Generation (DG) units to their customers as well as the provision of Demand Response (DR) solutions, so as to take advantage of portfolio effects, to reach a size that is sufficient to be able to enter energy markets and to provide services to network operators. Development of those enabling structures and technologies, such as smart metering, should foster the emergence of new partnerships where the customer may at times turn into a supplier. The corresponding new commercial relationships are a valuable opportunity for energy managers to unveil the value contained in generation capacities and the load flexibility of their local sites. The tested business models confirmed that it is possible under specific market conditions to run aggregation businesses that can spare up to 3% of today’s annual electricity bill.
EU-DEEP developed training for energy managers aimed at providing them with the key tools to prepare DER investment decisions
Management of distributed generation and demand response requires specific expertise which is delivered during a dedicated training program developed within EU-DEEP. The training sessions have been designed within the ISO framework as change-management tools aiming at:
providing a given organisation with a framework for the integration of DER (with respect to energy efficiency and in coherence with ISO management practices);
providing organisations which are operating in more than one EU country with a thorough and synthetic view of DER integration impacts and the ISO standards required for DER implementation across the organisation, provided that DER brings the expected benefits in energy savings;
providing an integrated and consistent methodology for identifying improvement opportunities and for carrying out the implementation of recommendations using DER solutions that may support a continued increase in energy efficiency across facilities;
helping organisations operating existing DER solutions to set up best practices for DER use and cost-killing;
sketching guidance rules:
- on benchmarking, measuring, and reporting energy intensity improvements and their projected impact on reduction in Green House Gases emissions with the help of DER units;
- in evaluating and prioritising implementation of new energy-efficient technologies based on DER solutions;
providing frameworks for organisations in support of Energy Supply Companies (ESCo) and/or aggregators in order to optimise energy systems management.
Challenges not covered by EU-DEEP
- What are the detailed incentive schemes in the different European Member States for DER deployment and how can one take advantage of each of these incentive schemes?
- How to decrease the investment and operation costs of DER technologies?
- How to optimise energy procurement costs?