IEEE Power and Energy Society

Chicago Chapter 2012-2013


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Key Issues and Challenges in the Deepening Penetration of Demand Response Resources
IEEE PES Distinguished Lecturer Program

Wednesday, March 13, 2013

 

** Greek Islands Restaurant in Lombard (see "Dinner Location" link for a map) **

 

George Gross

University of Illinois at Urbana-Champaign

About the Topic

In this presentation, we focus on the key developments in the implementation of demand response resources or DRRs, with special attention on their economics and policy aspects. A DRR is a load, which reduces its electricity consumption at specified times by curtailing portions of the load in response to incentive payments. DRRs evolved out of the various demand-side management programs initiated by vertically integrated utilities in the late 1970s. DRRs are the key to making loads active participants in balancing electricity supply and demand around the clock. They offer curtailments into electricity markets operated by ISO/RTOs to compete side-by-side with supply-side resources. Such offers provide attractive alternatives to the use of generation and avoid the need to invest in new supply-side resources and to produce additional pollution. The Federal Energy Regulatory Commission (FERC) forecasts an achievable 2019 DRR penetration range of 4-14 % of system peak load in the various ISO/RTOs.

We discuss the three key factors driving the rapid growth in the DRR implementation: the rollout of the smart grid, the emergence of curtailment service providers or aggregators, and the developments on the demand response policy front. The large-scale implementation of advanced metering solutions to replace the legacy metering infrastructure and the deployment of appropriate technologies, devices, and services to access and leverage energy usage information are direct outcomes of the smart grid advancements. The creation of an important new class of market participants - the load aggregators - makes possible the deeper penetration of DRRs as viable competitors to supply resources. Recent policies starting with the Energy Policy Act of 2005 and followed by FERC Order Nos. 719 and 745 and the various state-level policies have been instrumental in the removal of barriers to DRR participation and in bringing about the persistent deepening of DRR penetrations.

We highlight some of the unintended consequences of FERC Order No. 745 and the challenges deepening DRR penetrations present. While DRR curtailments result in lower loads, which reduce prices and emissions at specific nodes in the system during the curtailment hours, some portion of the curtailed energy is recovered in future hours resulting in impacts on prices and emissions in hours those the so-called DRR payback effects. The payback effects severely affect the economic benefits and emission reductions. Such outcomes underline the importance of the formulation and implementation of effective DRR policies.

About the Speaker

George Gross is a professor of Electrical and Computer Engineering with an appointment as professor in the Institute of Government and Public Affairs. His major research activities are in power system analysis, economics and control and electric utility regulatory policy. He has a keen interest in the interdisciplinary aspects of these areas.

Prof. Gross has participated in the establishment and direction of the annual Edison Electric Institute School for Power System Operations and Planning, and has actively participated in industry restructuring forums, including appearances before FERC, NARUC and state regulatory agencies.

His professional activities include work as an Expert for the United Nations Industrial Developing Organization Technical Missions. Prof. Gross has numerous publications in international refereed journals and has lectured at many universities around the world. He has also won numerous honors in his field.

Prior to coming to the University of Illinois as the Grainger Professor of Electrical and Computer Engineering in 1993, Prof. Gross held several management positions at Pacific Gas & Electric Company in San Francisco for nearly two decades. During 1992-93 he held a one year visiting appointment in the Electrical Systems and Integrated Energy Systems Divisions of the Electric Power Research Institute.

Gross received his B.Eng.(Honors) in Electrical Engineering at McGill University in 1969, and his M.S. and Ph.D. from University of California, Berkeley in 1971 and 1974 respectively.

Location       Time  
       
Greek Islands - Taverna Room   5:30 PM   Social
300 East 22nd St.   6:00 PM   Dinner (optional)
Lombard, IL 60148   6:45 PM   Presentation
(second block east of Highland Ave)   8:30 PM   Adjourn
630-932-4545      

Reservations

Please make your reservation by noon on Monday 11 Mar 2013 via the Online Reservation Form.

The cost of the optional four course dinner (appetizer, salad, entree, dessert/coffee) is $20 for IEEE members, $25 for non-members, $10 for students, payable at the event. Sorry, we are unable to process credit cards. Checks payable to "IEEE-PES Chicago Chapter" and cash are accepted, and receipts will be provided.

At 6 pm, the waitstaff will take dinner orders, so don't be late! You will be asked to choose one of the following entrees: shrimp shish kabob, chicken shish kabob, pork shish kabob, or vegetarian entree. Soft drinks are included with the meal.

Continuing Education

IEEE technical meetings may be acceptable as continuing education where required for maintenance of professional engineering licensure. Refer to the individual state's requirements for details. A receipt for one Professional Development Hour (PDH) will be provided.


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Updated 27 Feb 2013