Critical role of demand response

In the evolving landscape of energy management, demand response (DR) is emerging as a critical component, redefining how businesses interact with the electricity grid.

At its core, demand response involves the adjustment of the power consumption of facilities to match supply conditions. By temporarily shifting electricity usage during peak periods or adjusting the demand in response to price signals or instability on the grid, organisations can achieve significant cost savings. They can also earn revenue, and assist grid operators with integrating more renewables into the system, which reduces carbon emissions.

“Demand response is often seen as complex and difficult to implement and, up until recently, that has been true. However, EpiSensor is working to simplify and automate the IoT infrastructure for demand response so these technologies can reach mass market adoption and accelerate the transition to sustainable energy. The goal is to make DR achievable and economic on a really wide range of commercial buildings with energy assets like solar PV, batteries, HVAC systems, refrigeration, or non-essential processes that can be interrupted, or switched on if there is over-supply from renewables on the grid,” said Brendan Carroll, CEO of EpiSensor.

Types of demand response

Demand response can be broadly categorised into two types, incentivised and price-based. Incentivised demand response programmes offer payments to consumers for reducing their load during high-demand periods. Price-based programmes, on the other hand, encourage users to reduce consumption when electricity prices are high. Advanced demand response strategies leverage complex algorithms and real-time data to optimise energy usage without compromising operational efficiency.

Aggregators consolidate many distributed energy assets with sensors and software, creating what is known as a “virtual power plant”, that can have a significant positive impact to support the electricity grid while providing individual participants with streamlined management and financial incentives.

A high-end example of a successful demand response project which resulted in the creation of a large-

About EpiSensor

EpiSensor provides best-in-class IoT infrastructure to accelerate the transition to sustainable energy. With over 16 years of experience in delivering complex energy monitoring projects for partners across the globe like Veolia, Cool Planet and Enel X, it is known for producing easy-to-use and deploy energy management and demand response solutions. Its awardwinning infrastructure is researched, designed and manufactured in Ireland.

scale “virtual power plant” is the frequency response implementation in a Microsoft data centre in Ireland, facilitated by EpiSensor IoT technology and led by Enel X, a global leader in demand response, managing almost 7GW across 15 countries. In this case, Microsoft, a long-time participant in Irish grid services, is using its data centres’ batteries to respond quickly to frequency fluctuations on the grid, in a cost-effective, sustainable way, to reduce the need to build and run natural gas turbine peaker power plants.

For large-scale demand response or frequency response initiatives like the one mentioned above, collaboration with an aggregator like Enel X is crucial. However, demand response is not solely the domain of large-scale projects managed by third parties. There are local demand response solutions that businesses can integrate as extensions of their own energy management systems.

Local demand response

Implementing local demand response initiatives can be a natural extension of an existing energy management project. So for instance, imagine a commercial building that is equipped with solar photovoltaic (PV) panels and battery storage and that uses EpiSensor Edge technology for energy management and demand response. In this case, an on-premises AI-enabled gateway receives energy consumption data from wireless sensors on site and from which it can forecast future energy needs. It also integrates with the local battery, HVAC and BMS to control and manage energy usage dynamically.

Furthermore, it has access to CO2 intensity data and price signals from the grid and integrates with weather forecasting systems to predict the next day’s conditions. If rain is forecast, Edge decides to charge the batteries at night when electricity rates are lower. Edge then decides to discharge the batteries during peak demand periods the next day, optimising energy costs and ensuring efficient energy use despite the lower solar generation.

Cristina Coffey, Chief Strategy Officer of EpiSensor, emphasises the transformative potential of these technologies: “EpiSensor’s innovation focuses on providing advanced technology into a user-friendly product, enhancing user experience and driving mass market adoption. With easy-to-install wireless sensors and a gateway package, commercial buildings can efficiently monitor, control and optimise energy usage locally. Integrating sensors and controllers with Edge computing enables responsive and efficient energy management, supporting demand response initiatives and boosting overall operational efficiency.”

Demand response is often seen as complex and difficult to implement. However, EpiSensor is working to simplify and automate the IoT infrastructure so these technologies can reach mass market adoption.

Benefits

Of Demand Response Solutions

Integrating demand response into a business’s energy management plan offers many benefits. Firstly, businesses can achieve substantial cost savings by reducing energy consumption at those times when energy is expensive. Secondly, demand response contributes to grid stability, which can mitigate the risks of blackouts, ensure a reliable energy supply and reduce carbon emissions. Additionally, businesses that participate in demand response programmes often receive financial incentives or rebates, further enhancing their return on investment. Moreover, demand response initiatives can support sustainability and net zero goals by promoting the use of renewable energy sources. By aligning energy usage with periods of high renewable generation, businesses can lower their carbon footprint and contribute to broader environmental objectives.

Unprecedented opportunity

As the lines between demand response and energy management continue to blur, businesses have unprecedented opportunities to optimise their energy usage, reduce costs and support grid stability. Whether through large-scale collaborations with aggregators or local implementations using advanced edge technology, demand response is reshaping the future of energy management. By leveraging innovative solutions such as the EpiSensor Gateway and Edge package, businesses can seamlessly integrate demand response into their energy strategies, unlocking significant financial and operational benefits.

See also www.episensor.com