1. Smart Domestic
Appliances Provide
Flexibility for
Sustainable Energy
Systems
Leonardo Webinar Christof Timpe
21 August 2009 Öko-Institut
The sole responsibility for the content of this presentation lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European
Commission is not responsible for any use that may be made of the information contained therein.

2. Smart Domestic Appliances in Sustainable Energy Systems
Partners in the Project
“Smart Domestic Appliances
in Sustainable Energy Systems (Smart-A)”
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3. Smart Domestic Appliances in Sustainable Energy Systems
Overview
• The Smart Appliances Vision
• Demand Response Options by Smart Appliances
• Consumer Acceptance of Smart Appliances
• Model Results
– Benefits provided by Demand Response Devices
– Cost of Smart Appliances
– Comparison of Cost and Benefits
• A Snapshot on the Actors Involved
and Incentives Required
• Conclusions
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4. Smart Domestic Appliances in Sustainable Energy Systems
The Smart Appliances Vision
© Öko-Institut e.V.
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5. Smart Domestic Appliances in Sustainable Energy Systems
Examples Illustrating the Smart-A Vision
• The freezer receives a signal from the local
Automatic
electricity network operator that a load peak is
smart operation
expected around noon, and therefore it stores
cold in the morning to avoid operation during
peak time.
• The user switches on the dishwasher in the Low-level
morning and leaves for work. The appliance consumer interaction
optimises the timing of its operation based on
heat supply from the solar heat system.
• The washing machine checks the weather
Complex
forecast from the Internet and signals to the
consumer interaction
user that a sunny day allows for the use of a
programme with higher temperatures.
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6. Smart Domestic Appliances in Sustainable Energy Systems
Appliance Load of a Generic European Household
900
Water Heater
800
Air Conditioner
700
Power demand (W)
Oven and Stove
600 Tumble Dryer
500 Washing Machine
400 Circul. Pump
300 Dishwasher
200 Refrigerator
100 Freezer
0
0 2 4 6 8 10 12 14 16 18 20 22
Time of day (hours)
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7. Smart Domestic Appliances in Sustainable Energy Systems
Demand Response Options for Appliances
Smart Timing of Appliances Cycles
Washing Machine, Dryer: Typical <3 hrs.; Maximum 9 hrs.
Dishwasher: Typical <6 hrs.; Maximum >12 hrs.
Refrigerator, Freezer: n/a
Other Appliances: Typical <15 mins. … 1 hr.
Interruptions of the Appliance Cycle
Washing Machine: Typical <10 mins.
Dryer: Typical <30 mins.
Dishwasher: Typical <10 mins.
Refrigerator, Freezer: Typical <15 mins.
Other Appliances: Typical <15 mins.
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8. Smart Domestic Appliances in Sustainable Energy Systems
Consumer Objections and Wishes
• Higher investment cost • Economic Incentives
• Consumers want to be able to • Enhanced safety functions
retain full control over their Overloading signal
appliances Temperature surveillance
• Health and safety issues Water stop
(fire, flooding, food might Detection of technical faults
be compromised)
• Enhanced comfort and usability
• Doubts about maturity
of the technology • High quality service & support
• Scepticism about the • Attractive design
ecological benefits Pictures © PIXELIO
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9. Smart Domestic Appliances in Sustainable Energy Systems
Applications of Demand Response –
Requirements of Sustainable Energy Systems
The key challenge
of the future:
Balancing out
variable wind
Source: Abaravicius & Pyrko, 2006
(& solar)
generation.
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10. Smart Domestic Appliances in Sustainable Energy Systems
Determining the Economic Benefits of Smart
Appliances in Sustainable Energy Systems
Step 1:
Value of Demand Response Devices
for Balancing Wind Generation
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11. Smart Domestic Appliances in Sustainable Energy Systems
Sample View on a Model Run
16000
15000
14000
13000
12000
MW
11000
10000
9000
8000
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48
hour
Pd_original Pd_dsm
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12. Smart Domestic Appliances in Sustainable Energy Systems
Model A: Value of Generic 1kW DSM Device
Effects of introducing DR into 100
All cases assume a
system balancing in energy 90 30% wind share in
systems with high shares of wind: 80
installed generation
& moderate CO2 cost
– Reduced requirement for 70
“spinning reserve” from part-
60
EUR/kW/year
loaded fossil fuel plants
– Reduced necessity to shut 50
down wind plants in order to 40
ensure system stability 30
Both effects result in: 20
– Reduced use of fossil fuel 10
– Reduced CO2 emissions 0
Low Flexibility Medium Flexibility High Flexibility
The figure shows the annual Generation Generation Generation
(DE, FR, PL ..) (ES, IT, PT ..) (Nordic, AT, CH, ..)
value per kW of DR load.
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13. Smart Domestic Appliances in Sustainable Energy Systems
Model A: Application to EU29 Countries
104 130 100 2010, moderate energy prices,
100
CO2 cost included
2025, moderate energy prices,
90 CO2 cost included
2025, high energy prices,
CO2 cost included
80
70
EUR/kW DSM
60
50
40
30
20
10
0
AT BE BG CH CY CZ DE DK EE ES FI FR GB GR HU IE IT LT LU LV MT NL NO PL PT RO SE SI SK
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14. Smart Domestic Appliances in Sustainable Energy Systems
Model B: Value of Selected Appliances
18
Low flexibility generation
The value of individual appliances 16
system with 30% wind
share at moderate
is driven by: energy and CO2 prices.
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– The degree of flexibility
offered (duration of the 12
EUR/appliance/year
load shift) 10
– The volume of energy shifted
8
per appliance
6
The figure shows the annual
4
value of three selected appliances
used for DR. 2
0
Washing Machine Dishwasher Washer+Drier
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15. Smart Domestic Appliances in Sustainable Energy Systems
Determining the Economic Benefits of Smart
Appliances in Sustainable Energy Systems
Step 2:
Cost of Enabling Smart Appliances
as Demand Response Devices
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16. Smart Domestic Appliances in Sustainable Energy Systems
Cost for Providing DR by Appliances
The following cost items are relevant
• Additional production cost for the Smart Appliance
– Significant reductions expected through mass production
• Investments in an in-house communication hub
– In the future, this function can be taken over by any WLAN system.
• Cost for additional electricity consumption of Smart Appliances
– Expected average value: 1 W extra for SA “ready to operate”.
 Smart Meters are not really required for Smart Appliances operation,
Also, Smart Meters can provide other services to consumers as well.
 No extra cost have been taken into account here.
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17. Smart Domestic Appliances in Sustainable Energy Systems
Determining the Economic Benefits of Smart
Appliances in Sustainable Energy Systems
Step 3:
Comparison of Cost and Benefits
of Smart Appliances
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18. Smart Domestic Appliances in Sustainable Energy Systems
Comparison of Cost and Benefits
104 130 100 2010, moderate energy prices,
100
CO2 cost included
2025, moderate energy prices,
90 CO2 cost included
2025, high energy prices,
CO2 cost included
80
70
EUR/kW DSM
60
50
40
30
Expected
range of
20
costs
(2025)
10
0
AT BE BG CH CY CZ DE DK EE ES FI FR GB GR HU IE IT LT LU LV MT NL NO PL PT RO SE SI SK
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19. Smart Domestic Appliances in Sustainable Energy Systems
A Few Words of Caution
• Models A and B only looked at benefits of Smart Appliances used
for balancing wind power.
– Additional benefits can be gained by other applications,
e.g. managing local or regional network congestions.
• The analysis is based on a number of rough assumptions.
– Du to these uncertainties, the results should be regarded as
rough estimates rather than precise results.
• The analysis is performed on a country-by country basis.
– To the extent that balancing markets in the EU become better
connected, differences will be reduced.
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20. Smart Domestic Appliances in Sustainable Energy Systems
A Snapshot on the Actors Involved
Appliances Other Balancing Wind Other kWh
Manufacturers Power Providers Generators Generators
Smart Appl.
Appliances Aggregator
Retailers
„Smart“ System Power
Household Balancing Market
DSOs
Retailer of
Other „Smart“
Energy Household
Consumers
Other
Retailers
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21. Smart Domestic Appliances in Sustainable Energy Systems
A Snapshot on the Actors Involved
Appliances Other Balancing Wind Other kWh
Manufacturers Power Providers Generators Generators
Smart Appl.
Appliances Aggregator
Retailers
„Smart“ System Power
Household Balancing Market
DSOs
Retailer of Economic
„Smart“ Benefit
Other
Household Economic
Energy
Disadvantage
Consumers
Other Options for
Retailers Incentives
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22. Smart Domestic Appliances in Sustainable Energy Systems
Conclusions on Smart Appliances (SA)
• Domestic appliances offer a variety of load management options.
Technical constraints and consumer preferences define the limits.
• Consumers tend to accept SA if their daily routines are not changed and
comfort and safety are maintained.
• From a system perspective the value of SA is driven by the flexibility of
the conventional generation mix and the share of wind & solar energy.
• Typical values of SA for balancing wind generation are moderate. Not all
EU countries seem to offer viable potentials for SA.
• SA can have significant value, when contributing to congestion relieve
and reducing congestion costs.
• Incentive mechanisms are needed to give the right signals to the actors
involved in Demand Response through SA.
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23. Smart Domestic Appliances in Sustainable Energy Systems
Many Thanks for Your Attention!
Christof Timpe Project Website
Smart-A Project Coordinator http://www.smart-a.org
Oeko-Institut e.V. –
Institute for Applied Ecology
Freiburg - Darmstadt - Berlin
PO Box 50 02 40,
79028 Freiburg, Germany
Ph.: +49-761-452 95-25
c.timpe@oeko.de
http://www.oeko.de
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