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Understanding Distributed Energy Resources & Demand Response
In a world reliant on and controlled by energy, distributed energy resources (DERs) and demand response efforts add efficiency to power generation and consumption, which adds resiliency and value to our grid.
WHAT ARE DERs?
DERs are small-scale electricity supply or demand resources that are usually situated near sites of electricity use.1 They are critical to the modern energy grid because they offer sustainable, alternative and renewable sources of power. Most are often connected to the public grid, improving the reliability and resiliency of wider energy systems. At times of peak energy consumption, DERs can help utilities balance grid loads to prevent outages and blackouts and even generate power to reduce energy costs.
Although they represent a small percentage of power generation, DERs are becoming more common. Examples of DERs include but are not limited to solar panels, wind turbines, battery energy storage systems and electric vehicles.
In some cases, DERs are aggregated and made available to utilities that manage power generation, transmission and distribution.2 These are called virtual DERs. And when virtual DERs reach several megawatts, they are known as virtual power plants.
DERs AND THE DEVELOPMENT OF MICROGRIDS
The rising number of distributed energy resources within the utility landscape positively correlates to the formation of microgrids, groups of interconnected loads and distributed energy resources that act as single, controllable entities with respect to the grid.3 Like individual DERs, these benefit utilities by reducing the reliance on fossil fuels (greater sustainability), managing peak energy demand (greater reliability and limiting the duration and frequency of outages (greater resiliency). If outages or blackouts occur, microgrids can temporarily replace the grid with the help of DERs.
WHY ELSE ARE DERs IMPORTANT?
Energy consumption rates are high. The usual suspects — heating, cooling, lighting, office equipment — account for the most energy consumption at residential and commercial levels. And heavy heating and processing equipment are still the big consumers across manufacturing, chemical, metal, construction and other energy-intensive industrial sectors.
However, relatively new consumers also keep utilization rates high, necessitating the adoption, implementation and management of DERs to help reduce grid strain and prevent an unfavorable ratio of energy consumption to generation.
- Electric Vehicles — Even though EVs represent a small number of vehicles in cities and rural communities (and even though EVs are DERs themselves), the recent federal investment in EV charging infrastructure development alongside designated highways, interstates and roadways suggests a slow but steady surge in energy consumption over time.4 Utilities must be prepared to handle peak periods of concentrated charging in the future.
- Data Warehouses — For utilities and countless other businesses, operations, etc., data is more available and accurate than ever. Once captured, it’s increasingly common for data to live in data warehouses, systems that store various metrics over time and make them accessible for analysis and valuable insight extraction. To maintain powerful servers, data warehouses consume a staggering amount of energy; these centers account for around 1% of global electricity use.5 As our amounts of data continue to grow, data warehouses will grow in parallel, and utilities can help data warehouses use energy more efficiently.
- Battery Energy Storage System (BESS) — BESS is an energy storage technology that can be used as a distributed energy resource, reserving energy from fossil fuel sources and renewable sources first, then distributing it during and after weather events that cause outages. This technology is important to utilities because the market for battery energy storage systems is growing; in the power sector, battery storage was the fastest-growing technology in 2023 that was commercially available, with deployment more than doubling year-on-year.6 Managing BESS effectively can provide continuity in case of supply disruption.
Utilities must respond to the inevitable growth in energy consumption by EVs, data warehouses, BESS and more, plus the need for additional energy generation. Utility-led management of DERs is an integral part of this response.
HONEYWELL’S APPROACH TO AND SOLUTIONS FOR DISTRIBUTED ENERGY RESOURCES
Because of the growing availability of distributed energy resources — their integration within the grid and the formation of microgrids — we developed an array of solutions and services that help utilities manage DERs, grid loads and microgrids with greater efficiency, efficacy and visibility.
Honeywell Forge Performance+ for Utilities is the solution at the center of our efforts.
Honeywell Forge Performance+ for Utilities is an advanced digital platform that measures, monitors, processes and analyzes utility data (from smart meters, etc.), then turns it into actionable insights for the most effective use of assets and resources — DERs included. Powered by a data-driven recommendation engine, it can help utilities track energy consumption in real time and gather information over specific periods to identify operational trends.
With these intelligent measurement, monitoring and management capabilities, Honeywell Forge Performance+ for Utilities brings valuable visibility and control to distributed energy resources. Here’s how:
IDENTIFICATION OF UNREGISTERED ASSETS
If utilities are not informed of distributed energy resources that have been adopted by users, Honeywell Forge Performance+ for Utilities can detect abnormal patterns of low, high or concentrated energy consumption and notify utilities of potential unregistered distributed energy resources.
LOAD DISAGGREGATION
Various needs, operations and habits can lead to heavy loads and imbalanced energy consumption. Utilities can manage uneven demand with increased awareness of consumption (when, where and how much energy is being used), helping shift loads to DERs and save energy for a power system with greater balance. This capability also includes load variance isolation.
FORECASTING
The optimization of distributed resources according to area and system needs is possible with this digital platform’s ability to analyze real-time and historical data. By recognizing past patterns, utilities can predict when homes, businesses or industries need more or less energy — then make the appropriate quantity available without high costs or additional grid strain. Forecasting can also be used to make sure the right DERs are used at the right time according to weather and other environmental conditions that may affect solar, wind and battery solutions.
POWER QUALITY AND CAPACITY ANALYSIS
Honeywell Forge Performance+ for Utilities provides insights into the quality and capacity of the power supply for residential, commercial or industrial utility customers. Visibility and control help ensure power isn’t lost as it’s consumed, that it’s as efficient as possible and that it meets standards.
DEMAND RESPONSE IN ADDITION TO THE MANAGEMENT OF DERs
Alongside the intelligent management of distributed energy resources, we also encourage the development and enhancement of utilities’ demand response programs that offer customers incentives to reduce their energy use during peak hours. This involves customers in utilities’ efforts to achieve a future with increased grid resiliency, efficient power consumption and optimal energy resources.
Successful demand response offerings from utilities start with Honeywell DemandSites™ suite of demand response applications from Smart Grid Solutions, which includes:
- METERING SOLUTIONS: Automated metering infrastructure (AMI) can monitor and control loads autonomously during time-based or emergency-driven outages. Meter data (collected, processed and analyzed by Honeywell Forge Performance+ for Utilities) identifies peak loads and recommends actions for strategic power reservation during times of high demand.
- DRMS+: Our Demand Response Management System is a cost-effective dashboard that displays the status of current power systems, provides load control summaries and triggers alarm events for an unobstructed view of customers’ energy usage and management.
- Distributed energy resources are fed into this platform for measuring, monitoring and managing how much, when and where energy is generated and consumed.
- This dashboard is AMI-based but also includes cellular load control switches. Responses can be automated or performed manually.
- Connected facilities and connected devices allow utilities to manage entire buildings, campuses or plant systems via one integration point, and control discrete devices or entire fleets of assets, respectively.
- CONSUMER ENGAGEMENT PORTAL (CEP): Awareness, education and training for demand response are available within this portal. It encourages energy efficiency, the adoption and integration of DERs and successful demand response with tips, education, product offers, project statuses and real-time support.
- VIRTUAL POWER PLANT (VPP): Our solution for VPPs has energy and power-optimization capabilities to help utilities and customers meet precise consumption targets. It also uses several communication interfaces, including DNP3, OpenADR, IEEE2030.5, OCPP, ISO 15118, Restful API and SFTP.
Key features of our turnkey VPP offering include:
- Full system-wide DER aggregation and integration. Integrate all DERs and aggregate as a virtual power plant.
- Real-time monitoring. Monitor the status of the VPP and its components in real time, including generation, demand and battery storage.
- Forecasting. Forecasting capabilities for energy demand, supply and pricing can help plan VPP operations, dispatch energy and maximize VPP revenue streams.
- Control and management. Control VPP operations and manage VPP assets from a centralized dashboard. This includes the ability to set energy dispatch schedules, set load management, adjust energy pricing and manage energy storage.
- Alerting and notifications. Alert users in real time about any issues, problems or abnormal conditions with the virtual power plant, such as equipment failures or outages.
- User access management. Provide role-based access control to the VPP dashboard to ensure that only authorized users can access the VPP and its data.
- Revenue maximization. Use agent-based profit/utility function maximization and game theory.
- Energy market information. Display energy market prices and demand and supply data to help with decision-making and the optimization of the virtual power plant’s operation.
- Reporting. Generate detailed reports on the virtual power plant’s performance, including energy generated, energy consumed, energy stored, financial performance and customer engagement.
These solutions — AMI, DRMS+, customer engagement portals and virtual power plants — help utilities engage in grid-edge intelligence, which means they implement changes, efficiencies and data-driven recommendations at the meter level before leveraging optimizations across entire power systems. Leaning into grid-edge intelligence helps utilities approach grid-wide energy improvements with greater control and scalability.
Our certified engineers and technicians can perform audits of existing energy consumption, directly install meters and other solutions and train utility engineers and operators on how to maximize performance with Honeywell Forge Performance+ for Utilities and DRMS+.
DERs, demand response programs and additional solutions from Honeywell Smart Grid Solutions help transform our energy resource ecosystem by improving utilities’ energy management operations, automating energy usage and balancing grid loads.
YOUR PATH TO ENERGY RESILIENCE
Understanding DERs and demand response are the first two steps toward an energy-resilient future. Managing them effectively and employing peak energy reduction solutions are the ones that follow. At Honeywell, we can help you do all of it.
For more information
https://automation.honeywell.com/us/en/solutions/smart-energy/services/sgs
Honeywell Smart Grid Solutions
2101 CityWest Blvd.
Houston, TX 77042
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