Alternative Utility Services identifies an opportunity for possible participation in a demand response program and follows-up with questions about the facility, equipment and operations.
Contrary to popular belief, hotels can be ideal candidates for demand response; they aren’t always at full occupancy and a newer BMS will allow central management of each individual room’s occupancy status and control over their HVAC.
Given that, Alternative Utility Services completes a simple site assessment which includes gathering information about equipment, variable frequency drives (VFD), and back-up generation.
Findings conclude that the hotel is capable of achieving a load curtailment or demand reduction of 400kW. Alternative Utility Services then works with the client to put together a load reduction strategy, should an event be called.
This strategy includes precooling and changing set-point temperatures on their chiller, reducing the number of elevators running for up to 3 hours, and reducing the speed of their VFDs in the fans and pumps. VFDs provide great savings opportunities since a 10% reduction in speed saves 27% in energy.
Based on the plan year capacity payment value for their utility ($45.80/kW for 2014 and $54.75/kW for 2015), the hotel earns an additional income of $14,654.90 and $17,520.00 respectively (capacity value X 400 kW X 80%).
Demand response participation payment rates vary by curtailment service provider (CSP), opportunity size and utility, and range between 50 and 80 percent.