Automatic Demand Response

Historically, efforts to reduce electrical costs have primarily focused on decreasing overall electricity consumption. This makes sense because approximately 60% of the total electrical cost in high-rise buildings is directly related to the total kilowatt-hour (kWh) usage. However, there’s another significant portion of the cost that presents an opportunity for savings. This remaining 40% is associated with demand charges based on kilowatt (kW) usage. Unlike the bulk electrical charges (based on total kWh), demand charges are related to the peak power demand during specific time intervals.

Utility companies often use a “ratcheting rate” system for demand charges. Here’s how it works:

• When a building experiences a sudden spike in electricity demand (e.g., due to air conditioning, heating, or equipment), the utility company sets a higher demand charge.
• Even if the demand decreases afterward, the charge remains elevated. This makes it challenging for consumers to return to lower, “normal” rates.
• Essentially, demand charges penalize high peak demand, encouraging consumers to manage their usage during critical periods

3b Systems has created an automatic demand response system (ADR) that monitors real-time kW demand and modulates equipment operation automatically to reduce kW costs by avoiding demand spikes. 3b Systems analyzes 12 - 24 months of electrical data using statistical filters to identify demand (kw) outliers as part of the initial implementation process. Savings produced by the ADR system range between $.06 - $.13 / sqft in high-rise buildings. ADR implementation has many other potential benefits, such as allowing engineers to sequence large equipment without the fear of causing demand spikes. This “sequencing freedom” maximizes the time a chiller is operated at peak performance resulting in yet additional savings. This capacity affords unprecedented flexibility in equipment operation and efficiency.

ADR Implementation steps:

• Preliminary system and utility audit to determine ADR applicability
• Detailed statistical review of electrical demand(12 -24 months of utility data)
• MEP System review to identify energy conservation measures
• Software implementation
• Software beta testing and fine-tuning
• Ongoing monthly system review