Demand Response and the Smart Grid

Course description:
Investment in electrical infrastructure has struggled to keep up with increased demand. We have
seen demand become so strong that it has triggered large network failures. Demand response
programs provide a simple way for facility managers to get paid for reducing consumption and
relieving load on the power grid when it is stressed. In effect they are returning capacity to the
grid and being paid for that asset. This course will look at the issues involved, how Demand
Response works, why it is beneficial, and what the Smart Grid is.

Course Outline:
Learning objectives
At the completion of this course you will be able to:
• Define the challenges of electrical supply and demand
• Explain what demand response is and the role of traders and aggregators
• Identify how to use demand response to avoid investment in peak capacity
• List the benefits and costs of participating in a demand response program
• Identify the opportunity to use demand response payments to make energy efficiency
investments in an office or factory
• Describe the impact of regulations on demand response
• Discuss the concept of the smart grid

Course content or material

1) Introduction

2) Definition of Demand Response

3) Challenges to Electrical Supply and Demand

a. Meeting demand
b. Periodic Peak Demand
c. High cost to utility means high cost to customer

4) How Demand Response Works

a. ISO detects need and issues curtailment request
b. Participant reviews request
c. Participant reduces onsite consumption
d. Participant informs ISO of curtailment
e. Aggregators

5) Rewards of Demand Response Programs

a. Get paid to manage your energy costs
b. Expected outcomes of participation

6) Curtailment Actions
a. Ways to reduce load
i. Load shedding
ii. Delaying consumption away from peak times

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 iii. On-site generation

7) Implementing Demand Response

a. Requires monitoring and communication
b. Manual versus automatic controls

8) Regulations and demands on demand response

a. EPACT 2005
b. Order 890 from US Govt

9) Smart Grid
a. Smart Grid Technologies
b. Smart Grid Impacts

10) Summary

©2011 Schneider Electric. All rights reserved. All trademarks provided are the property of their respective owners.