"Smart Grid" technology has gained significant global attention as a solution to give the end user control over how much electricity they use and when they choose to use it. The smart grid transforms our electrical system into a modern network that empowers utilities and consumers to manage in a fully automated manner the creation and consumption of energy. A smart grid delivers electricity from suppliers to consumers using technology to save energy, reduce cost and improve reliability. Modernized electricity networks are increasingly being adopted by many countries as a means to develop energy independence and address global warming issues. This is the only economically feasible solution since any major increase in the electric infrastructure and/or addition of more power plants would result in even higher electric rates, more pollution and more disturbance of our environment than we have today and that is simply an alternative the USA public will not stand for.
FADRS™ is a FULLY Automated Demand Response and Reduction System developed by Rey Montalvo, President of Consolidated Energy Design, Inc. ("CED") to work in conjunction with a robust Internet enabled Building Automation System (BAS). FADRS™ can integrate with an existing BAS or CED can install a BAS to work with FADRS™. Its patent-pending smart grid technology utilizes human-centric, self-healing artificial intelligence with prediction technology; it requires no human intervention, works both "on site" and over the Internet and optimizes end users' energy consumption; typically reducing it by 20-30% ("primary income stream" from utility bill savings).
FADRS™ facilitates demand response "events" so the power grids can improve their reliability and stability and end users can financially benefit in the process from a "secondary income stream." A demand response "event" is when the regional power grid calls upon end users to use less power, particularly when the power grid is being asked to provide more electricity than it has available OR when an electric substation or power generation plant goes down OR when the wholesale price for electricity is too high.
FADRS™ also has the unique capability of providing the end user with a very lucrative "tertiary income stream" from a power grid program called Frequency Regulation. This particular aspect of FADRS™ will be a "game changer." As it turns out, renewable energy sources such as wind power and solar Photovoltaic don't produce a "steady" source of power but rather a variable source of power. This variable power contribution to the power grids upsets the electric frequency (60 Hz ± 1 Hz as required by the Federal Energy Regulatory Commission). In order to maintain this "small frequency window", the power grids have instituted a special program called "Frequency Regulation" for which they pay exceptionally high incentives (~ $300,000 per MW/hr. per year). CED worked with the world's largest power grid (The PJM Interconnection) to develop the most advanced, lighting fast, extremely high quality form of Frequency Regulation that not only works with advanced battery technology but also with "Live Building Loads." This led to the PJM affirming their desire to continue working with CED on the next enhancement to FADRS™, namely, FADRS™ Smart Grid Multiple Advanced Technology Integrated Solution ("FADRS™ SG MATIS©") to be used at PJM's Network Operations Center in Milton, PA.
FADRS™ SG MATIS© will be the "ultimate game changer" (particularly for the solar and wind industry). By integrating multiple advanced energy technologies (solar PV and/or wind turbines; 24/7 energy conservation, advanced battery technology, electric vehicles and Micro Grid) in one facility or campus, the energy bill will be significantly reduced. The resultant Solar Renewable Energy Credits (SRECS) or Wind Renewable Energy Credits (WRECS) along with power grid incentives for Demand Response and Frequency Regulation will pay off said energy bill and in many cases may even leave the end user with a POSITIVE NET INCOME.
FADRS™ utilizes two way "real time" communication between the power grids and end users so commands are sent and Measured and Verified responses are received via the Internet simultaneously with NO human intervention to permit power grids to continue to use the existing antiquated electric transmission infrastructure without overloading it in spite of the logarithmic growth in electric demand in the USA and the world over the last 60 years and into the foreseeable future.
FADRS™ key attribute is its embedded "artificial intelligence" to manage and communicate with the BAS. By registering temperature and humidity in all areas of a facility, FADRS™ continually signals back to the hosting facility; therefore, continuously communicating or monitoring adjustments to be made by the building systems in order to allow for the maximum load reduction with least impact on a facility's climate control (FADRS™ caters to the occupants needs and not simply the need to save energy and is thus Human Centric) and other non-critical systems. Because FADRS™ is fully automated; there are no risks of human intervention, ensuring that facilities can take full advantage of the DR revenue streams.
FADRS™ technology has been built with an in-depth knowledge and understanding of all aspects of facility Heating, Ventilating and Air Conditioning ("HVAC"), lighting and maintenance systems (over 40 years of building controls experience). Acting as a supervisor to the BAS, FADRS™ utilizes both conventional and proprietary algorithms developed by CED over the past 40 years, and permits the BAS to execute its typical programming routines. FADRS™ can optimize the energy consumption. FADRS™ limits peak kW demand, the most expensive part of a facilities' electric bill, while also reducing the runtime (kWh) of equipment. This technology "understands" how best to optimize the overall energy performance while maintaining and optimizing equipment for longer useful lives.
FADRS™ also utilizes a proprietary prediction technology that is able to accurately determine how to arrive at desired inside temperatures and/or humidity levels with the LEAST amount of energy. This technology adapts to each facility and gets "smarter" every day all the while improving energy savings every day until a "plateau" is finally reached.
Another wonderful aspect of FADRS™ is its self-healing ability. If a "hiccup" occurs in the control of the building or during a particular DR event, FADRS™ has the ability to determine, with NO human intervention, exactly what is the most intelligent action to perform in order to get the energy system back on track.
Since all FADRS™ projects are sub metered (including sub metering for major HVAC or lighting loads) the end user will be able to read in "real time" how much electricity (or for that matter, gas, oil, water, steam, etc.) is being used by an end user on a 24/7 basis (Peak; 15 minute average; 30 minute average). The end user and FADRS NA, LLC will also be able to remotely read this information from any computer having an Internet connection.
Aggregators and ultimately Independent Service Operators (ISOs) and Regional Transmission Operators (RTOs) will be able to remotely read in "real time" how much KW/MW is being used by the end user before, during and after a DR event with NO human intervention. This functionality will result in a more reliable, stable and proactive power grid. No one will have to "guess" if the targeted capacity of power is being reduced…they will know EXACTLY how much, WHEN and WHERE power is being used. This will help other types of smart grid technology (not necessarily FADRS™) for transmission traffic make better "decisions "with respect to routing and generation needs.
Until such time that all the ISOs/RTOs agree to a standard Automated DR system that is secure (by Homeland Security Standards) and requires NO human intervention (which, incidentally may take a decade or may never happen at all), there is an opportunity for FADRS™ to greatly improve this situation and permit more end users to participate in ALL ISO/RTO DR programs with NO human intervention on the part of the end user. FADRS™ can adapt to a particular ISO/RTO internal "event" generation system and thus automate it.
FADRS™ acts as a "supervisor" to the BAS during a DR event; at other times it allows the BAS to follow its robust pre-programmed routine. The FADRS™ framework integrates with the BAS allowing FADRS™ to manage and adjust the BAS system before, during, and after an event. FADRS™ utilizes a patent pending self-healing artificial intelligence framework that utilizes thousands of conventional and proprietary algorithms (along with proprietary Prediction Technology) to determine the most efficient curtailment procedures. FADRS™ technology is deployed on site with the BAS with continuous digital communication over the network to the FADRS™ NOC. As an intelligent software platform, FADRS™ is configured to improve, record, and provide data between the ISOs/RTOs, aggregators and end users during events.
CED has successfully concluded initial discussions with the New Jersey Board of Public Utilities (NJBPU) who have stated that they will fund FADRS installations through an existing NJ Clean Energy Program called Pay for Performance (P4P). This will include the incentives as high as 40% for:
|Demand Response Events||Notice||Duration||Fiscal Incentive|
|Capacity||2-3 Hours||2-6 Hours (2 Hour Average)||$40,000-$50,000 MW/year|
|Synchronous||10 Minutes||2-30 Minutes (10 Minute Average)||$25,000 MW/Year|
|Real Time Economic||5 Minutes||1 Hour||Market Rate|
Capacity: In the Northeast region, several Aggregators provide DR Capacity, where end users are given approximately 2 – 3 hours' notice to curtail energy consumption. Depending on the ISO/RTO, these events can occur 18 times during the summer or zero times during the summer. For example, the PJM called zero Capacity events in 2008 and 2009 in New Jersey and waited until July 7, 2010 to call their first Capacity event in 2.5 years. While that particular Capacity event lasted ~ 4 hours and 15 minutes, Capacity events can last 2 – 6 hours (Average duration is 2 hours). The financial incentive provided by aggregators to the end users for contractual commitments to reduce demand is approximately $40,000 - $50,000 per megawatt (MW) per year and is paid to the end users REGARDLESS whether or not a Capacity event is called. Essentially this is an "insurance policy" for the ISO/RTO. Rates vary per region of the USA.
Synchronous Reserves: Synchronous Reserves DR events require end users to curtail electric load in a 10 minute advance notice and typically last for only 10 minutes. These Synchronous events are not necessarily weather driven but are typically called anytime during the day or night throughout the year in the event that a substation goes down, a power generation plant is having production issues, etc. Due to the short window, most facilities are not able to participate in a synchronous program without a system like FADRS™. The financial incentive to the end users for a contractual commitment to reduce demand is an additional ~$35,000 per MW per year. These events have very few participants due to the short notice period. Rates vary per region of the USA.
Real Time Pricing and Day Ahead Economics: These DR programs are offered in many regions and allow end users to adjust their electricity consumption based upon variable wholesale pricing programs. These DR events typically require a five minute response and last just one hour. These are market driven programs, but can generate as much as $30,000 per MW per year in secondary income for the end user. Rates vary per region of the USA.
Lighting, heating, and cooling requirements of a typical office building represent approximately 80% percent of its overall energy requirements. Office buildings in the USA consume an average of 17 kilowatt-hours (KWH) of electricity and 32 cubic feet of natural gas per square foot annually. Energy costs represent approximately 20 % of the total operating costs for a typical office building.
By participating in DR programs, end users benefit by as much as $100,000 per MW per year (OR MORE depending upon the region of the USA or Canada) in secondary income by participating in ALL three DR programs as well as benefiting from utility bill reductions on their overall energy consumption and expense during the events.
Additionally, utilizing FADRS™ technology, end users would be able to further reduce their company's energy costs on a 24/7 basis outside of events. On average, FADRS™ reduces approximately 20% - 30% on a facility's electric consumption for lighting and Heating, Ventilating and Air Conditioning ("HVAC") as well as other related utility expenses. This energy savings is not just limited to electricity, but includes water, oil, gas, propane and other fuels.
The result of implementing the Energy Master Plan should be a building that results in a better quality experience for the occupants (Greater comfort, better Indoor Air Quality, better lighting and tighter temperature and humidity control) at significantly less electric and/or fossil fuel and water usage.
In addition to the obvious benefits mentioned to both occupants and management, the added benefit is that much less solar PV and/or wind energy is required. Since those Class I Renewables are still VERY EXPENSIVE, it is clearly beneficial to the end user to purchase the lowest capacity possible.
The extra money saved by the solar PV and/or wind energy project would easily pay for advanced battery storage technology that FADRS™ would include in its control strategy and thus end up with a facility that is NET ZERO, NEAR ZERO or NET POSITIVE!