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November 30, 2023

Contributed by Roy Bao, Sr. Renewable Energy Analyst and CTO of Bitech Technologies

A New Era of ADR in the Power Industry

Since 1870 the widespread adoption of electric power for industry, the challenges of the traditional networks are finally reaching some challenges during the last decade.

With more and more population, industries development and today extreme weather impacts to worldwide, the traditional Power network is needing adjustment to support today’s demand.

One of the techniques to handle the power shortage is Demand & Response (D&R). The D&R are used to handle by a system integrator who coordinate between Power Utilities and a lot of manufacturers who used significant power in the state.

When the power utilities realized their power will run into an issue due to any reason, based one D&R agreement, they will notify the D&R System integrators (D&R SI), then the D&R SI will manually call the heavy power usages customers in parallel and advise their customer based on D&R agreement to reduce the power usage in next 2 to 3 hours to get the incentive against their power usage.

Today, the conventional D&R is not efficient anymore. Other approaches of the D&R are taking place. For example, in the home market, the average HVAC usage is 30% of the home power usage, water heater is another 10%. Swimming pool pump is another power consumption for home. If there are way to connect Thermostat controller, Hot Water Heater and Swimming pool pump to the D&R SI, then when power company is detecting potential power shortage, then ADR (Automated D&R) to these three devices for up to 25K families can easily across different district of the power grid, then power crisis can be avoided.

ADR (Automated Demand Response) refers to a technology-driven approach to demand response, where systems automatically adjust electricity usage in response to signals from the grid or market conditions. Automated Demand Response often involves the use of advanced metering infrastructure, communication technologies, and control systems to optimize energy consumption.

ADR is getting popular worldwide for developing countries, and is also symbol one of key characters of the Smart Cities solutions.

ADR & Smart Grid Technologies Migration

In the world of power utilities, demand response (DR) refers to a commonly used method for balancing the supply and demand of electricity. This involves altering the electricity usage habits of consumers in reaction to shifts in the electricity market, grid stability, or other outside influences. The implementation of demand response tactics by power utilities has changed throughout history and remains an ever-evolving topic. Here is a basic timeline highlighting the evolution of demand response adoption.

  1. Early Adoption: During the 20th century, utilities started to investigate ways to better handle peak demand by implementing strategies for demand response. One common approach was time-of-use pricing, which meant that electricity prices would fluctuate depending on the time of day.

  2. Maturation and Technology Integration: As technology developed, particularly with the widespread use of digital meters and smart grid technologies, utilities were able to gain finer control over their distribution networks. This enabled them to implement more advanced demand response programs that could focus on specific regions or even individual customers.

  3. Grid Monetization and Policy Changes: The movement towards modernizing power grids and implementing effective policies began in the early 2000s, as more regions recognized the significance of demand response in maintaining grid reliability and efficiency. In order to promote participation from utilities and consumers, regulatory efforts and incentive programs were established for demand response programs.

  4. Renewable Energy Integration: From the 2010s onward, there has been a growing integration of renewable energy sources like solar and wind into the power grid. While this brings numerous benefits, it also adds complexity to managing the grid. As such, demand response has become an essential tool for balancing the intermittent nature of renewable generation and ensuring the stability of the grid.

  5. Advanced Technology: The current developments in technology, such as the Internet of Things (IoT) and advanced analytics, have expanded the capabilities of demand response programs. With the integration of smart appliances and devices, they can now communicate with the power grid and adapt their electricity consumption according to signals from utility companies.

The adoption of demand response is ongoing, and its importance is likely to grow as the energy landscape continues to evolve, with a focus on sustainability, grid resilience, and the integration of more renewable energy sources. Different regions and utilities may have varying levels of adoption based on their specific needs, regulatory environments, and technological infrastructures.

At Bitech Technologies, [OTCQB: BTTC] we understand the importance of implementing sustainable solutions for energy consumption. That is why we are in the process of developing new ADR (Automated Demand Response) solutions that allow businesses and organizations to automatically reduce their energy usage during peak demand periods, without any human intervention. Our ADR solution can significantly contribute to shedding high power load by incentivizing customers with compensation to decrease their energy consumption during times of high electricity demand. By responding to demand signals from utilities, our program creates a dynamic balance between electricity supply and end-user consumption, reducing the need for harmful fossil fuel generation and minimizing pressure on the power grid. This not only benefits the environment but also helps prevent power outages. Our clients are rewarded for reducing their power consumption by either transferring the load to a generator or remaining on standby. With ADR solutions, organizations can contribute towards a greener future while also saving costs on their energy usage.