Industrial ADR
Demand/Response is a fact today for industrial applications. Control of D/R occurs more and more automated, for example via openADR, or other protocols still under development. The value of industrial ADR fluctuates around 10000€ per MegaWatt per year, for typically 6 events per year.
Residential ADR
A typical household consumes 3500 kWh per year, of which about 50% is time-shiftable with very little comfort loss. The average sustained time-shiftable power is thus approx 200 Watts, with a value of about 2€ per year. For that price, it is not possible to maintain an in-house network or IoT network. This is the main reason that residential (and commercial) ADR is not happening today and in the near future.
Privacy and security
Moreover, the Smart Meter introduction has shown that households are very concerned about privacy and security. Will consumers accept a VPN from the ESCO in their LAN? Will they accept IoT controlled devices in their house? On top of that, will households accept the perception that (part of) their house in under control of an ESCO?
The solution
The value of ADR will increase, but a controls price breakthrough will be necessary to make it economical for households. That breakthrough is DigitalTF. Moreover, because DigitalTF is one-way traffic into the house there will be no concern about security and privacy. If desired, users can make decisions about energy consumption manually based on the price broadcasted by DigitalTF. If not, they can set up their appliances to react automatically to a price (profile). The end user is obviously in control, not the ESCO.
Connecting Aggregators
The power meter in the MV/LV substation and the connected logic will learn over time how the LV grid power consumption responds to price stimuli. After some time, it can predict the power response and offer that Response to an Aggregator via an OpenADR, PowerMatcher or Triana interface.
A backup
Many appliances (heat pumps, EVSE’s) will be connected to the internet, but also in many cases the ESCO will not have direct access to it. DigitalTF provides a fine backup for those cases, increasing the Response depth available to price stimuli.
