WORLD METER DESIGN CONGRESS ENERGY CONSERVATION VIA CONNECTED APPLIANCES HANK MARCY Vice President, Technology 1
SITUATION OVERVIEW THE PROBLEM We have to reduce the energy use We have to use the energy we do produce more efficiently / effectively Residential energy use statistics in the U.S. and Europe the size of the prize SOLUTIONS Lowering residential energy use Energy efficient appliances Thermally-connected appliances Using the energy we do produce more efficiently / effectively Coordinating Communities of Information-Connected appliances ISSUES Finding the economic drivers who wins, who pays? 2
ENERGY CONSUMPTION FROM APPLIANCES: THE FACTS Cradle-to-grave Assessment of Environmental Impact Dishwasher WHILE WE HAVE WORK IN EVERY AREA, THE BIG OPPORTUNITY IS IN USE 3
ENERGY CONSUMPTION FROM APPLIANCES: THE FACTS Voluntary emissions reduction program Industrial effluent treatment plant facilities Energy cogeneration Recyclable product packaging PEP reusable package project Extensive use of rail transportation U.S. Energy Star leading producer European A + / A++ energy across refrigeration Super highefficiency compressors Eco design (design for recycling / disassembly ) since 1998 WEEE 98% of product components fully recyclable Industry leading low water / energy consumption in washers / dishwashers CFC phase-out 4
U.S. ENERGY CONSUMPTION Space conditioning & water heating account for 62% of total residential energy use or 12.5% of total energy use in the U.S. Appliances (excluding space conditioning & water heating) account for 17% of total residential energy use or 3.5% of total energy use in the U.S. Residential water heating energy use is roughly equivalent to all appliances. 2005 TOTAL CONSUMPTION: 20.0 QUADS 5
AVERAGE HOME APPLIANCE ENERGY CONSUMPTION IN EUROPE 6
LOWERING RESIDENTIAL ENERGY USE: PRODUCE MORE EFFICIENT HOME APPLIANCES 7
TODAY: CONSUMERS BENEFIT FROM INNOVATIVE, RESOURCE-EFFICIENT PRODUCTS Replacing a refrigerator purchased in 1990 with a new ENERGY STAR qualified model would save enough energy to light the average household for more than 4 ½months. If just one in 10 homes used ENERGY STAR qualified appliances, the change would be like planting 1.7 million new acres of trees. An ENERGY STAR qualified dishwasher saves enough water in one year to give every person in Williamsburg, Va., a glass of water. If every household in the U.S. used a highefficiency washer, the water savings could equal the amount of water that flows over Niagara Falls in about 3.5 months. WHIRLPOOL CORPORATION MANUFACTURERS MORE THAN 600 ENERGY STAR QUALIFIED PRODUCTS 8
OUR CURRENT ROADMAP WILL REDUCE ENERGY CONSUMPTION ACROSS ALL OUR BUSINESSES We Will Drop Energy Consumption by 5 to 50% with current approaches 9
LOWERING RESIDENTIAL ENERGY USE: THERMALLY CONNECTING HOME APPLIANCES 10
INTEGRATING THE KITCHEN AS AN ECOSYSTEM: THERMALLY CONNECTED AND FOCUSED ON ADAPTING, REDUCING AND RECYCLING WHIRLPOOL KITCHEN ECOSYSTEM Concept delivers ecological benefits of adapting, reducing, recycling. Through an integrated use of appliances, the concept takes its model from the cycle of nature, optimizing the use of heat and water with processes that could cut your appliances energy bill by 70%. 11
TAKING INSPIRATION FROM NATURE S WATER CYCLE, THE GREEN KITCHEN ECOSYSTEM RECYCLES WATER water recycling 12
UNDERSINK SMART FILTRATION SEPARATES CLEAN WATER water recycling 13
AND DIVERTS IT TO A TANK FOR REUSE AFTER AN ANTIBACTERIAL TREATMENT water recycling 14
THE RESIDUAL REFRIGERATOR COMPRESSOR HEATS THE WATER IN THE TANK water recycling fridge compressor produces heat 24h a day 15
THE RECYCLED PRE-HEATED WATER IS USED IN THE DISHWASHER water recycling 30% saving of the dishwasher energy 16
INTEGRATING THE KITCHEN AS ECO SYSTEM YIELDS 24% ENERGY SAVINGS Climate Zone / Herbarium TM 6th sense hood Power control Multi flex Oven Multi source cooktop Pure Climate zones Eco Boiler Steamer Veggie Washer Smart Sink Fridge / Freezer Top Drawer Co-generation appliance (TBD) Trash Compactor Dishwasher Fridge / Freezer Drawer 17
INTEGRATING THE KITCHEN AS AND ECOSYSTEM 18
BRINGING ALL PIECES TOGETHER : GREEN KITCHEN 19
MAKING MORE EFFECTIVE USE OF THE ENERGY WE DO PRODUCE: INFORMATION-CONNECTED APPLIANCES COORDINATING COMMUNITIES OF HOME APPLIANCES TO MATCH DEMAND TO AVAILABLE ENERGY 20
INFORMATION-CONNECTED APPLIANCES Information connected appliances can increase the efficient use of currently produced power. INC Control and influence communities of consumers to: shift energy to off-peak times, and manage peak loads when they occur to lower energy use and protect the grid. MDN ECM 21
MOVING FROM THE ELECTRICALLY-CONNECTED ENVIRONMENT TO THE INFORMATION-CONNECTED ENVIRONMENT Generation Grid Utilities Ancillary services Smart Meters (AMI) Grid Direct Messaging (Prices-to- Devices) Extended functionality via Grid-to-HAN Residential Devices Appliances HVAC Water Heater TV etc Government, Regulatory, Social & Community = Residential / Appliance devices role 22
PROVIDING A FRAMEWORK FOR THE NEXT GENERATION OF ENERGY CONSERVATION, INFORMATION-CONNECTED APPLIANCES CAN: Report their status Receive instructions Synchronize with other systems / homes Enabling an intelligent energy management controller able to manage energy consumption of home devices 101011001 HVAC Thermostat Circuit Breakers Oven Microwave Refrigerator Dishwasher Clothes Dryer Clothes Washer 101011001 Energy Controller 101011001 101011001 Water Heater 23
USING INFORMATION-CONNECTED APPLIANCES, THE CONSUMER CAN: Set personal energy management preferences considering: personal priorities family schedules energy saving incentive options desired levels of energy management Personal energy controller HVAC Oven Microwave Refrigerator Dishwasher Clothes Dryer Clothes Washer 101011001 Energy Controller 101011001 Thermostat 101011001 Circuit Breakers 101011001 Water Heater 24
THE ENERGY CONTROLLER WILL Manage home energy consumption considering : Personal energy preferences Pricing / Data from energy provider Appliance operation schedules Personal energy controller Time of Day (RTP) incentives Restrictions in effect (e.g., critical peak pricing) Max Kw peak limitation incentives Emergency restrictions Other incentives...? HVAC Oven Microwave Refrigerator Dishwasher Clothes Dryer Clothes Washer 101011001 Energy Controller 101011001 Thermostat 101011001 Circuit Breakers 101011001 Water Heater 25
HOUSEHOLD USE SCENARIOS Consumer chooses a managed dishwasher start The controller will start the device based on: Other scheduled energy events User preference selections Data from energy provider Household schedules EXAMPLE Lowest Time-of-Day energy rate is 1:00am-6:00am Oven Microwave HVAC Refrigerator Thermostat User wants: clean dishes for breakfast, a hot shower at 6:00am, and washer load complete at 5:30am (to put in dryer) Dishwasher Clothes Dryer Clothes Washer Energy Controller Circuit Breakers Water Heater 26
HOUSEHOLD USE SCENARIO EXAMPLE Sequence of events Nightly automated inquiry of energy provider data Adjust schedule according to energy provider data (if necessary) Increase temperature of hot water [3:45am] Run dishwasher cycle [4:00am] Run washer cycle [4:45am] Reduce hot water temp to warm [9:00am] EXAMPLE Lowest TOD energy rate is 1:00am-6:00am User wants: clean dishes for breakfast, a hot shower at 6:00am, and washer load complete at 5:30am (to put in dryer) Oven Microwave Refrigerator Dishwasher Clothes Dryer Clothes Washer Energy Controller HVAC Thermostat Circuit Breakers Water Heater 27
PROVIDING MEANINGFUL INFORMATION Information-connected appliances help consumers make good choices about When & Howto use their products. WOODRIDGE PROJECT 28
SUCCESSFUL SHIFT OF THE CLOTHES DRYER LOAD CURVE Standard load shape... compared with Woodridgepilot Red/Green LED with auto delay button (Time-of-use tariff) 29
INFORMATION-CONNECTED APPLIANCES CAN PROVIDE RAPID LOAD REDUCTION TO MATCH ENERGY PRODUCTION AND/OR PROTECT THE GRID When a grid instability was sensed, power on 150 Grid-Enabled dryers reduced from 5,700 watts to ~280 watts within.4 seconds... a 95% load reduction Low Customer Impact: turn off heating element, residual heat and tumbling continue dryer control system and sensors remain active to ensure the drying process is still managed automatically extended drying time if required PROJECT PARTICIPANTS: PORTLAND GENERAL ELECTRIC, PACIFICORP, PACIFIC POWER, CLALLAM PUD, MASON COUNTY PUD NO. 3, BONNEVILLE POWER ADMINISTRATION, PACIFIC NW NATIONAL LABORATORY, GRIDWISE ALLIANCE, INVENSYS, WHIRLPOOL CORPORATION, IBM, AND SEARS. 30
ECONOMIC DRIVERS FOR ENERGY CONSERVATION: IF THESE THINGS ARE ALL POSSIBLE, WHAT IS HOLDING US BACK? 31
ENERGY VALUE CHAIN OVERVIEW Power generation plants Heat/thermal Hydro Wind Solar electric Chemical Grid Individual system operator (ISO) Regional transmission operator (RTO) Non-profit operator (manages poles & wires) authorized to set trading floor prices Utilities Investor-owned private (IOU) Memberowned (co-op) Gov t-owned (municipal) Smart meters Consumer electronics Major home appliances HVAC and water heating systems Residential customers Ancillary services (spinning reserve, load management) Government agencies THERE ARE MANY ENTITIES INVOLVED AND THEREFORE MANY MOTIVATIONS FOR ENERGY CONSERVATION. 32
ENERGY EFFICIENT APPLIANCES PROVIDE CLEAR ECONOMIC BENEFITS FOR CONSUMERS Power generation plants Heat/thermal Hydro Wind Solar electric Chemical Grid Individual system operator (ISO) Regional transmission operator (RTO) Non-profit operator (manages poles & wires) authorized to set trading floor prices Utilities Investor-owned private (IOU) Memberowned (co-op) Gov t-owned (municipal) Smart meters Consumer electronics Major home appliances HVAC and water heating systems Residential customers Ancillary services (spinning reserve, load management) Government agencies FOR MORE ENERGY EFFICIENT INDIVIDUAL APPLIANCES, LOWER ENERGY COSTS PROVIDE CLEAR ECONOMIC BENEFITS FOR CONSUMERS = WILLINGNESS TO PAY FOR INCREASED EFFICIENCY. THE ISSUE IS THE OVERALL IMPACT IS JUST NOT THAT BIG. 33
THERMALLY CONNECTED APPLIANCES PROVIDE CLEAR ECONOMIC BENEFITS FOR CONSUMERS AND ALSO HAVE BIGGER IMPACT, BUT Appliances which generate waste heat Appliances which can use heat wasted from other appliances 550 kwh/y 1166 kwh/y 70 kwh/y 200 kwh/y 83 kwh/y 383 kwh/y 360 kwh/y 710 kwh/y General assumption: Average usage per year in the 5 key European countries for a family with two children CREATING THERMALLY CONNECTED APPLIANCES REQUIRES BROAD ALLIANCES BETWEEN APPLIANCE MANUFACTURERS, BUILDER SUPPLY COMPANIES, AND BUILDERS TO ESTABLISH ENABLING HOME INFRASTRUCTURE: 10-20 YEARS TO CREATE AN INSTALLED BASE THAT MEANINGFULLY REDUCES ENERGY USE. 34
INFORMATION-CONNECTED APPLIANCE ENABLED ENERGY MANAGEMENT PRIMARILY BENEFITS GRID AND UTILITIES Service Offering Description Economic Drivers Ancillary services Spinning reserve (slow and fast) Demand management (upand downregulation) Alleviate unexpected surge in grid power demand with appliance operational adjustment unobservable to the consumer Shift energy usage from critical/peak hours and to non-peak hours Grid-Utility Meet reserve requirement Avoid brown-outs Reduce costs (e.g., spot market prices) Manage load growth Avoid capital investment Black start Delay appliance start-up after grid power system restoration More effective startup methodology Same benefit, but as TOU/RTP is implemented, value shifts from utility to consumer Appliance feature Demand management Automatic optimization of appliance energy usage based on consumerselected preferences Consumer Receive utility/gov t credit Reduce monthly utility bill WHAT ARE THE ECONOMIC DRIVERS FOR APPLIANCE MANUFACTURERS TO CONNECT? 35
INFORMATION-CONNECTED APPLIANCES NEED A WINNING BUSINESS MODEL, ALIGNED INCENTIVES. Incentives Purchase Participation (CPR, grid) Grid-utility TOU/RTP optimization program fee Consumer rebate Money Flow Development funding. Implementation incentive Ancillary service? Sale/participation incentive? Government Development funding, implementation incentive Information-connected appliances are not waiting for technology they are waiting for aligned economic drivers so that manufacturers incorporate connectivity into their products. Currently, money primarily flows from consumers to manufacturers. Several choices to establish widespread connectivity: Consumer ASV premium for energysavings Whirlpool Corporation Increase incentives for consumers to purchase connected appliances Establish connectivity incentives between utilities and manufacturers Cause governments to incent connectivity for the greater good. 36
RESIDENTIAL ENERGY CONSERVATION: A SIGNIFICANT OPPORTUNITY THERMALLY CONNECTED APPLIANCES provide large energy reductions deliver against consumer economic drivers, but require significant home infrastructure changes and many years to provide a collective benefit INFORMATION CONNECTED APPLIANCES Provide a means to achieve collective benefits through demand response and grid protection Impact the entire energy value chain, but have less immediate impact on the economics of individual consumers COOPERATION, COLLABORATION, AND DEFINITION OF SHARED ECONOMIC DRIVERS ACROSS RELEVANT INDUSTRIES ARE REQUIRED TO MOVE BEYOND RELATIVELY SMALL-SCALE DEMONSTRATIONS. 37