(373f) Demand Response Strategies for Management of Residential Natural Gas Consumption

Natural gas is recognized as a significant energy source globally and plays a vital role in meeting the energy demands of various sectors. The residential and commercial sectors utilize natural gas for space heating, water heating, and cooking, while the industrial sector employs it as fuel for power and heat generation or feedstock. With the significant growth in demand for natural gas in these sectors in recent years [1,2], considerable challenges in maintaining a balance between supply and demand have emerged. The ability to manage this imbalance effectively is crucial for ensuring the reliability and stability of natural gas systems. This balance could be maintained through several methods, from the supply side such as expansion of the grids, or from the demand side such as demand response (DR) programs.

Recently, there has been an increasing interest in applying DR principles to natural gas systems to address the challenges of balancing supply and demand, reliability, and cost management. In this context, the availability of smart metering infrastructure facilitates the integration of DR programs in gas transmission and distribution systems. The use of "smart gas networks" enables the adjustment of consumption levels to grid availability and limitations [3]. Despite the growing interest in natural gas DR technology, the current literature on this problem is rather limited, indicating a need for further investigation from various perspectives to gain a more comprehensive understanding of the underlying factors and the full extent of the full potential of this emerging technology.

While several studies have focused on DR strategies for the management of natural gas systems, highlighting the benefits and implementation challenges [3-7], one area that requires further investigation is the demand-side management from the customer, or end-user, side. Understanding how customers can respond, or be incentivized to respond, during Gas DR (GDR) events can inform the development of effective DR programs and enhance the overall potential of GDR as a tool for grid management. Studies investigating DR in the natural gas sector can also benefit from the experiences and insights gained from similar studies in the electricity sector.

The aim of this work is to address this gap by proposing various actions and solutions to optimize the utilization of natural gas during GDR events, with the goal of encouraging customers to participate in these programs. To this end, we focus on the problem of multi-source residential heating, with natural gas serving as the primary source, and use a simulation test bed to evaluate the efficacy of various DR strategies and solutions. The strategies considered range from the use of a multi-zone heating approach to reduce overall natural gas consumption, to the use of multiple energy sources which are optimally dispatched to meet the heating requirements, to the introduction of a new tier system for gas pricing that includes an hourly cap. To calculate consumption during periods of high demand, a simulation model using Open Studio and Energy Plus software is utilized. The simulation model enables the determination of the heating energy requirements for a typical residential dwelling over the course of an entire year, with the ability to break down the demand for each hour based on location and weather conditions. The resulting energy requirement is utilized by an optimization tool to decide which source of energy the customer should use based on different incentive and pricing programs. Both the model and the optimization tools allow testing different possible solutions and modifications to quantify the energy savings, particularly during GDR events.

References:

[1] U.S. Energy Information Administration, “U.S. energy facts explained,” EIA, 2022.

[2] J. Yu, M. Schaal, and R. DiDona, “Natural gas market 2019-2020 winter outlook,” Natural Gas Supply Association - Energy Ventures Analysis, Arlington, VA (USA).

[3] L. Montuori, M. Alcázar-Ortega, and C. Álvarez-Bel, “Methodology for the evaluation of demand response strategies for the management of natural gas systems,” Energy, vol. 234, Nov. 2021, doi: 10.1016/j.energy.2021.121283.

[4] L. Montuori and M. Alcázar-Ortega, “Demand response strategies for the balancing of natural gas systems: Application to a local network located in The Marches (Italy),” Energy, vol. 225, Jun. 2021, doi: 10.1016/j.energy.2021.120293.

[5] L. Montuori and M. Alcázar-Ortega, “District heating as demand response aggregator: Estimation of the flexible potential in the Italian peninsula,” Energies (Basel), vol. 14, no. 21, Nov. 2021, doi: 10.3390/en14217052.

[6] F. Dababneh and L. Li, “Integrated Electricity and Natural Gas Demand Response for Manufacturers in the Smart Grid,” IEEE Trans Smart Grid, vol. 10, no. 4, pp. 4164–4174, Jul. 2019, doi: 10.1109/TSG.2018.2850841.

[7] A. Speake, P. Donohoo-Vallett, E. Wilson, E. Chen, and C. Christensen, “Residential natural gas demand response potential during extreme cold events in electricity-gas coupled energy systems,” Energies (Basel), vol. 13, no. 19, Oct. 2020, doi: 10.3390/en13195192.