Assessments of demand response potential in small commercial buildings across the United States

Abstract

Buildings are responsible for more than 73% of the total electricity usage in the United States and have a significant contribution to peak electrical demand of the power grid. Thus, proper building demand management could improve the robustness and efficiency of grid operation and could also result in economic benefits for building owners. Almost half of the building electricity usage occurs in the commercial building sector where 60% of the installed cooling capacity is attributed to small commercial buildings employing packaged air-conditioning systems (e.g., rooftop units). Thus, understanding the demand response potential and economic benefits for the small commercial sector is of great importance. In particular, the effect of climate, building type, and utility structure on demand response potential is valuable information for building managers in identifying the most beneficial demand response strategies and for utilities in developing better utility structure rate incentives to achieve demand reduction. This article presents a simulation-based assessment approach and highlights the key assessment results for three demand response strategies—thermostat, shade, and lighting controls—across a range of building types, vintages, locations, and utility rate structures. The control performance is evaluated in terms of utility cost savings, peak demand reductions, and indoor comfort impacts in comparison to a baseline night setup strategy. The tradeoff between cost savings and comfort is also explicitly investigated. The assessment results show that the demand response controls lead to slightly worse indoor comfort compared to the baseline control, with an increase in the median percentage of people dissatisfied from 5.7% to 8.1%. However, significant demand reductions and cost savings could be achieved across all tested cases with the magnitudes dependent on the weather condition and building type. Annual electricity cost savings of 5 to 25 cents/ft2 (54 to 269 cents/m2) were demonstrated for time-of-use energy rates with demand charges, whereas the savings were relatively small, below 5 cents/ft2 (54 cents/m2) for most cases, when buildings subscribed to flat rates without demand charges.