Demand Response; What is it and
What are the Business Opportunities?
Dr. Bjorn Frogner
4:00pm Wednesday, 17 August 2011
Maryland Clean Energy Technology Incubator
UMBC South Campus
Bjorn will discuss the aspect of the Smart Grid called Demand Response (DR). DR is where the action is in the Smart Grid. Implementation of DR is made possible by the merger of the following two forces.
- The State of Maryland has set the goal of reducing average electricity consumption by 15% and reducing the peak-to-average consumption by 15%. These two requirements will reduce the peak capacity needs by 30%. The goal is to reach these goals by 2015. This makes DR more valuable than all other renewable energy sources combined for the next five years.
- Smart Meters are already available in many businesses and they are soon going to be installed in 1.5 million homes in BGE and PEPCO customer residences. These meters will provide two-way communication and data readings from our homes as frequently as every 15 minutes. This provides tremendous opportunities for changes in the way we consume electricity.
These forces will rapidly transform the electric utility industry. DR will make the cost of electricity become a function of supply and demand which will make electricity be like other commodities where the market determines the price. If you are well-informed, you may save money. And, if you are real well-informed, you may be able to see some of the many new business opportunities that are being created by DR.
Bjorn Frogner has a PhD in Nuclear Engineering from University of California at Berkeley. He worked for about 35 years across a broad range of technologies, primarily related to energy and IT, while he lived in Silicon Valley in California. He moved to Annapolis, Maryland, in 2009 and he now works part-time as Entrepreneur-in- Residence at University of Maryland, Baltimore County. His function there is to help startup companies in the clean energy field. He had many years of experience with the electric grid during the 70s and 80s. He has spent significant amount of time during the last 18 months making himself informed about the cyber security for the electric grid.