CPvT Presentation ISGF

Vijay Sirse / Chairman and CEO

CPvT Energy India Pvt. Ltd

A Smart Grid Solutions Company

(Subsidiary of vTrium Energy, Singapore)

Demand Response As a Tool for Demand Side

Management and Implementation Challenges (

INDIA SMART GRID FORUM

July 20, 2012

CPvT Energy (CPvT) is an Energy Management Services Company, a subsidiary of vTrium Energy, Singapore.

The Energy Market Authority of Singapore (EMA) awarded CPvT Singapore a Smart Energy Challenge (SEC) grant to enrol customers to implement a 40 MW Distributed Virtual Power Plant (Demand Response System) pilot.

From the experience of successful implementation of the Singapore DR Project, CPvT propose to offer the opportunity to Indian Power Sector stake holders (Distribution Utilities or the Power Exchanges) to participate in a Demand Response Program, largely targeted to Commercial and Industrial consumer base.

CPvT 2012 Confidential

All rights Reserved

Introduction to CPvT Energy

Definition (t): Demand response means reduction in electricity usage by end customers from their normal

consumption pattern, manually or automatically, in

response to high UI charges being incurred by the

State due to over-drawl by the State at low frequency,

or in response to congestion charges being incurred

by the State for creating transmission congestion, or

for alleviating a system contingency, for which such

consumers could be given a financial incentive or

lower tariff

CPvT 2012 Confidential All rights

Reserved

DR Definition : CERC Grid Code

DR is a growing global phenomenon and is considered an integral

part of energy management by power system authorities. It is now very widely adopted in the USA, Canada and the UK, to help manage grid conditions.

Demand response is a valuable resource for meeting the nations energy needs. By lowering the peak demand for energy, demand

response programs reduce the need to construct new, expensive

generation units. (FERC NAPDR).

Within the worlds largest Power Market (PJM in the USA), DR now

accounts for nearly 10% of the capacity needed to manage the potential growth in electricity consumption.

DR Around the World


All rights Reserved 4

DR is a set of actions taken at a site to reduce electric draw from the grid on

those occasions when the supply and demand is out of balance or prices are high

due to limitations on supply.

DR is a very effective means of deployment of Demand Side Resources in the

energy market.

Customers whose load reduction offers are accepted through CPvT must either

reduce load as contracted or face a penalties.

Typical Program Characteristics:

The most important benefits of DR as a Demand Side Management are:

o Lowering of Wholesale Market Price / Short Term Power Purchase

Costs

o Deferment or avoidance of peaking power plant


All rights Reserved

Demand Response (DR): Concept

Event Time Event Duration Annual Participation

During times of grid-stress leading to high Peak prices

30 minutes (min) to 2 hours (max) About 100 hours


All rights Reserved

Reduce dependence in imported coal/

gas

Capacity Deferment / Reduce Emissions

Reliability Benefits: Lowers the likelihood & consequences of forced

outages and load shedding

Market-wide Financial Benefits: Lower Wholesale

Market Prices

Save on STPP Cost for Discom

and reduce consumer

Electricity Bills

Importance of DR: Indian Context


Reserved

DR Stakeholders Bi-lateral Structure

Participating Customers

Discom

INDIA

SINGAPORE

DR Curtailment Signal

DR Curtailment Management

Curtailment Incentive

Participation Incentive

Load Reduction

Regulatory Approval

Implementation Support Regulatory Body

Balancing & Ancillary Service Providers

Bid and win according to Merit order

DR Aggregator

Trading Cos

Participating GenCos

LDC

Exchange

MPPs

PCs

Grid

Capacity added

/curtailed

Dispatch instructions

Settlement

Service contract

Scheduling Settlement

Performance Monitoring

Bid Clearance Scheduling Settlement

DR Stakeholders Demand Bidding Market Mechanism


All rights Reserved

Power Prices: Daily Prices DR Potential : Peak Times

0.00

5.00

10.00

15.00

20.00

25.00

Jan

Feb

Mar

Ap

r

May

Jun

e

July

Au

gust

Sep

t

Oct

No

v

De

c

Pri

ce (

in R

s./K

Wh

)

Months'11

IEX Price

IEX Min

IEX Max

IEX Weighted Avg

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Jan

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gust

Sep

tO

ctN

ov

De

c

Pri

ce (

in R

s./K

Wh

)

Months'11

PXIL Price

PXIL Min

PXIL Max

PXIL Weighted Avg

DR Opportunities Periods (30 Minutes Slot till March 31, 2012 and 15 Minutes Slots thereafter up-to

June 20, 2012)

Slots @ Rs 4.75

PXIL IEX

2009 3297 4707

2010 1938 1997

2011 1840 1605

2012 2722 242

Slots @ Rs 5.00

PXIL IEX

2009 3166 4379

2010 1817 1771

2011 1704 1365

2012 2515 140

Slots @ Rs 5.50

PXIL IEX

2009 2865 3828

2010 1496 1422

2011 1135 737

2012 1943 14

Slots @ Rs 6.00

PXIL IEX

2009 2632 3431

2010 1297 1223

2011 713 384

2012 1491 2

Slots @ Rs 6.50

PXIL IEX

2009 2291 3074

2010 1128 996

2011 548 217

2012 1136 0

Slots @ Rs 7.00

PXIL IEX

2009 2009 2689

2010 924 786

2011 496 175

2012 641 0


All rights Reserved

Managed Reduction of

assets & processes

DR Process

Event called

Event over

Curtailment Reduces burden on grid

nWs

Turn Off /Implement global

temperature resets

DR Notification from

CPvT NOC (Actual

Site Picture)

Turn off elevators 1 to 4

GRID STRESS PSO Notifies CPVT Control

Centre

CPVT Control Centre Notifies

Participant

Participant Responds

GRID RELIEF


All rights Reserved

Utility Meter Data Acquisition

Usually for 15-30 min interval

VEE ( Validating, Estimating

& Editing)

Cleaning of meter data by plugging any gaps in data due to

transmission or meter reading errors as per prevailing

standard VEE practices. This corrects mistakes in data, if

any.

Transfer to CPvT Network Operating

Center

With computer-to-computer link using transfer protocol such

as SOAP or FTP

Baseline & Performance Computation using Utility Meter Data

CPvT software computes the rolling baseline and individual

performance for each site, which is aggregated to compute

program baseline and performance


Reserved

DR Measurement Process

Challenges: Regulatory Environment

13 CPvT 2012 Confidential

All rights Reserved

Requires coordination with EE Programmes as DR increases customer awareness of consumption

DR potential should be considered in planning/demand forecasting exercises.

Policy

Orientated towards supply side.

No Negative Watt option

DRA model does not exist currently not possible for DRAs to bid on behalf of retail customers.

Regulatory push required to make DR mandatory as part of DSM program

Market Structure

Challenges: Economic


All rights Reserved

Limited financial incentive for utilities, aggregators, customers.

Reliability and Predictability of DR resource

DR as RPO portfolio

CHALLENGES

As DR is a tool for long term power system planning, therefore requires proper cost allocation

DR programs should be considered in the context of climate change and could contribute towards fulfillment of Renewable Purchase Obligation (RPO) by the Discoms.

An accurate assessment of the true financial value of DR related peak reduction is essential to quantify DR benefits: o Reduction in wholesale electricity prices. o Avoided of peak power generator o Avoided associated T&D capacity

SOLUTIONS

Challenges: Technology


All rights Reserved

Potential challenges related to uncertainty about evolving technology such as new types of metering equipment, metering standards, or communications technology

Lack of communication metering infrastructure leading to increased cost of program roll out.

Lack of interoperability and open standards

No off the shelf solution for a NOC, no specifications E.g. Vendors sell packages for MDM or Market Management but not the 2 together.

CHALLENGES

A market transformation

initiative akin to that pursued for EE is needed to allow rapid penetration of smart (price sensitive) control technologies in customer premises that would allow them to see the full benefits of DR program.

SOLUTIONS

Challenges: Design & Awareness


All rights Reserved

Improved DR program design is the most significant aspect of market penetration of DR. o Programs must be designed to find a

balance between the reward that customers receive and the inconvenience (or cost) that they incur by participating.

o Program must be designed to provide reasonable lead time to respond to demand response events with an intent to balance operational needs with customer ability to respond.

Programme Design

Lack of customer awareness and education:

Profiling many different customer categories. Client Identification Who can participate? Why should they participate? Time Consuming Energy Audit! Conflict between depts e.g. Finance & Production, Finance & Facility Operators

Customer Enrolment (The Most Challenging Part of

DR!!)

Flattens the load curve

Provides all the benefits of peaking power plant; fast to deploy, has wide-area or locally-

targeted applications, requires no additional infrastructure, reduces system losses and

pollution and helps to reduce dependence on fossil fuel

Drives energy efficiency for large power consumers, reducing costs and improving

profitability and also helps to improves energy density nationally

Provides capacity to the utility, negating the need to purchase expensive peaking

generation capacity on the spot market

Supports ancillary services to help improve grid operation

Offsets the costs associated with unforeseen generation shortages

Enables deferment in capital spending on T&D infrastructure required to support peak

loads, improving investment efficiency

The project will also demonstrate that the incentivized inclusion of the demand side in the energy supply equation will result in tremendous tangible and intangible benefits


All rights Reserved

DR Virtual Power Plant (VPP) Benefits

CONTACTS

Vijay Sirse Chairman & CEO

Mobile: +91 98 110 67988

Ms Bridgit Hartland-Johnson

Mobile: +91 96 500 13322

Mr. Himanshu Buttan

Mobile: +91 98 111 93984

Web: www.cpvtenergy.com / www.vtriumenergy.com

LET US DO MORE WITH LESS ENERGY

THANK YOU

Documents

CPvT Presentation ISGF