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The energy landscape is undergoing a profound transformation as both buildings and grids evolve towards bi-directional energy exchange. At the heart of this shift is the first step of grid awareness, where buildings monitor and understand their energy usage, and balance loads internally for power optimization. Over time, we envision all buildings becoming grid interactive, where they will actively respond to grid signals and participate in energy markets. This evolution is driven by the growing need for flexibility, resilience, and sustainability in how we consume and manage energy.
Key enablers of this transition include distributed energy resources (DERs) like solar panels and battery storage, smart appliances that can adjust their operation based on grid conditions, and demand flexibility programs that incentivize buildings to reduce or shift energy use during peak times. These technologies allow buildings to not only optimize their own energy performance but also support grid stability and decarbonization.
Willow plays a pivotal role in this journey. By integrating real-time data from the grid and building systems, the platform helps facility teams make informed decisions about energy use. Skills and insights enable load shaping, predictive analytics, and responses to grid signals. With Willow, buildings become grid aware as soon as they are onboarded, and we are marching together towards a world where buildings are seamlessly interactive with the grid.
Commercial buildings like hospitals and airports, even university campuses and school districts spend millions each year on electricity and natural gas. These costs are driven by operations running 24/7 and reliant on systems like HVAC, lighting, and critical equipment. With grid awareness, facilities can operate with an understanding of when energy is most expensive or when the grid is under stress. This helps optimize consumption, especially during peak demand periods, when utilities charge significantly more. For instance, peak electricity rates in the US can double compared to rates during off-peak hours. With active monitoring of grid signals and time-of–use (ToU) plans, facilities have the opportunity to shed or shift demand during peak times. These strategies can reduce costs and support grid stability.
Let’s review common strategies for managing building energy demand in relation to the grid:
1. Efficiency reduces overall energy consumption throughout the day. A lower demand curve compared to the baseline is achieved through measures like optimized HVAC systems and energy-efficient materials as well as equipment. This approach lowers costs and emissions without changing when energy is used.
2. Load Shed involves temporarily reducing energy use during peak demand periods. Energy consumption dips below the baseline at the peak, indicating actions like dimming lights or adjusting HVAC setpoints. This helps avoid high peak rates and supports grid stability.
3. Load Shift moves energy use from peak hours to off-peak times. Demand is shifted to earlier or later in the day, often through pre-cooling buildings or scheduling equipment operation during off-peak periods. This strategy leverages time-of-use pricing to reduce operational costs
4. Modulate is an approach to provide rapid, short-term adjustments in power demand, sometimes within seconds. The consumption fluctuates around the baseline, representing fast responses to grid signals, often enabled by automated controls or battery systems.
Together, these strategies enable buildings to become grid-interactive, reducing costs and improving resilience.
Willow helps organization with effective load profile management through skills and insights. Let’s take a closer look at a skill that can alert as a building approaches peak demand and recommends action to mitigate.
Willow’s Load Shed – Power Consumption Approaching Monthly Peak Demand skill generates an insight to identify that current power consumption is approaching last month’s peak demand, which could trigger higher demand charges from the utility company. The system recommends immediate actions to reduce load, such as increasing temperature setpoints and turning off unnecessary equipment. The Time Series graph illustrates power usage over several days, highlighting periods of high demand. This insight helps facility teams act proactively to avoid costly peak charges and improve energy efficiency through real-time control.
Now let’s take a look at a Skill that creates grid awareness: Load Shed – Power Consumption High While Grid Carbon is High. Willow’s Knowledge Graph combines workload-related data from the building with real-time electrical grid conditions like spot pricing and carbon emissions rate. Understanding time periods of peak demand when grid electricity might be costly or more carbon intensive can help facility teams shift loads accordingly.
In this example, Willow’s Load Shed insight is triggered because power consumption is approaching last month’s peak while the grid’s carbon intensity is high. Willow then recommends actions to mitigate. These measures help avoid costly demand charges and reduce emissions during carbon-intensive periods. The Time Series charts showcase building power usage and grid carbon intensity over several days, highlighting high-demand and high-carbon windows. This enables teams to take action proactively.
Willow’s vision is to help buildings start with grid awareness and then evolve to become grid-interactive. Full grid interactivity represents the highest level of integration between buildings and the energy grid. It goes beyond monitoring grid conditions and adjusting loads reactively. Instead, buildings become active participants in energy markets and programs, creating a two-way relationship with utilities and grid operators. Through platforms like Willow, facility teams can transact directly on grid commodities such as demand response and capacity while optimizing their load profiles based on real-time grid needs, pricing signals, and carbon intensity.
This means a building can intelligently decide when to consume, store, or even export energy. For example, during periods of high demand and elevated prices, a building could shed non-critical loads or discharge stored energy to the grid, earning revenue while supporting grid stability. Conversely, during low-cost or low-carbon periods, it could pre-cool spaces or charge batteries. These actions can be automated and made data-driven, leveraging Willow’s Knowledge Graph to combine building performance data with grid signals.
Ultimately, full grid interactivity transforms buildings from being consumption-driven into revenue-generating entities that contribute to decarbonization, resilience, and cost efficiency. This unlocks new value streams for facility teams while strengthening the overall energy ecosystem.