Dan Hollenkamp, COO of intelligent building management solutions company, Toggled, explains how demand response (DR) programs can reduce energy costs and provide grid reliability.
As extreme weather events become more frequent and intense due to climate change, businesses and grid operators face mounting challenges in managing energy consumption and maintaining reliable power supply.
This summer saw record-breaking temperatures across the globe: from Paris during the Olympics to numerous US cities experiencing triple-digit heat. These conditions place enormous strain on electrical grids as air conditioning usage soars, raising concerns about potential blackouts and challenging businesses to balance energy efficiency with comfort and productivity.
The urgency for better energy management solutions is clear. A recent survey found nearly two-thirds of facility decision-makers are actively seeking effective ways to monitor their greenhouse gas emissions. This growing awareness, coupled with the need to reduce costs and carbon footprints, is driving interest in innovative approaches to building energy management.
Smart building systems and demand response (DR) programs stand out as powerful tools for addressing these challenges. When implemented together, these solutions offer a comprehensive approach to energy management that benefits both individual businesses and the broader power grid.
Understanding Smart Building Technology
Smart building technology encompasses a range of solutions, including energy-efficient LED lighting, advanced sensors, and intelligent controllers. These systems allow for real-time monitoring and management of energy consumption throughout a facility. By collecting and analysing data on occupancy patterns, environmental conditions, and equipment performance, smart buildings can automatically adjust lighting, heating, cooling, and other systems to optimize energy use without sacrificing comfort or functionality.
The potential savings from smart building implementations are substantial, with some estimates suggesting energy use reductions of up to 80 per cent in certain applications. Beyond the direct cost savings, these systems provide valuable insights into a building's energy profile, helping facility managers identify areas for further improvement and track progress towards sustainability goals.
Demand Response to the Rescue
Demand response programs take energy management a step further by enabling dynamic interaction between buildings and the power grid. During periods of peak demand or grid stress, typically caused by extreme weather events, DR programs allow utilities to send signals to participating buildings, requesting temporary reductions in energy consumption. Smart buildings equipped with DR capabilities can respond to these signals automatically, adjusting energy use in ways that minimise disruption to occupants while supporting grid stability.
A Powerful One-Two Punch for Energy Management
The integration of smart building systems with DR programs creates a powerful synergy. When a DR event is called, a smart building can leverage its understanding of energy use patterns and occupancy data to make intelligent decisions about where and how to reduce consumption – whether it’s slightly adjusting temperature setpoints, dimming non-essential lighting, or temporarily drawing power from on-site energy storage systems.
Since advanced smart building systems can predict extreme weather events, they’re able to anticipate DR events as well, enabling them to make adjustments in advance (e.g., pre-cooling spaces), further minimizing the impact of energy reductions during peak periods.
The benefits of this integrated approach extend beyond individual buildings. By enabling more flexible and responsive energy consumption, smart buildings with DR capabilities help stabilize the power grid during critical periods, reducing the risk of blackouts and the need for costly peaks. This grid-level impact makes the adoption of these technologies a key strategy for creating more resilient and sustainable energy systems at a community and regional scale.
As businesses increasingly prioritise sustainability and operational efficiency, the combination of smart building technology and DR programs offers a compelling solution. These technologies not only address immediate concerns about energy costs and grid reliability but allow for long-term improvements in energy management and carbon footprint reduction. By embracing these innovations, businesses can play a crucial role in building a more resilient and sustainable energy future, while also reaping significant operational benefits.