Deploying New TechnologiesLessons learned from demo project Customers saved on average about 10% 15% reduction of peak load Up to 50% reduction in total load for several days in a

National Conference of State Legislators:

The 21st Century Grid:

Deploying New Technologies

PETER CHRISTENSEN MANAGER, TECHNOLOGY COMMERCIALIZATION DECEMBER 3, 2013 WASHINGTON, DC

PNNL-SA-99700

Today’s agenda

What is PNNL?

Why a smart grid?

Supply-side solutions

Demand response

Energy storage

Barriers to deployment

The National Laboratory system

Pacific Northwest National Laboratory

Operated by Battelle Memorial Inst.

Offices located across the state

Collaborators across government,

industry, academia working to solve

client challenges

U.S. Department of Energy’s top-

performing laboratory for 5 years

FY12 Facts

$1B in R&D expenditures

More than 4,400 staff

2000+ users & visiting

scientists

1,041 peer-reviewed

publications

4

Expanding campus, growing capabilities

Missions focused. Resources aligned.

Strengthen U.S. scientific foundations for innovation

Increase U.S. energy capacity and reduce dependence on imported oil

Prevent and counter terrorism and proliferation of weapons of mass destruction

Reduce environmental effects of human activity and create sustainable systems

PNNL’s broad energy research

portfolio is driven by innovation

Building Energy Efficiency: Improving the

energy efficiency of buildings

Biomass: Developing scientific foundations for

biomass conversion to infrastructure ready biofuels

Vehicle Technologies: Advancing efficient

and environmentally friendly vehicle technologies

Fuel Cell Technology: Developing materials

that provide better fuel cell performance and

affordability

Wind and Water Power: Fostering

significant sustainable renewable energy from wind

and water, including conventional hydropower

Clean Fossil Energy: Addressing carbon

capture and sequestration, methane hydrates,

enhanced oil recovery and oil shale

Electricity Infrastructure: Improving the

performance of the nation’s power system

Environmental Cleanup: Providing

remediation solutions for radioactive and

hazardous waste contamination at Hanford and

other sites

Nuclear Energy: Enabling and sustaining

safe nuclear power

Geothermal Power: Pursuing efficient heat

exchange media and reservoir characterization

Solar Power: Delivering breakthroughs in thin

film photovoltaics and thermal storage

Why a smart grid?

Electrify transportation sector to reduce dependence on imported oil

Delivering 300 GW of renewable generation by 2025

Maximize benefits of end-use efficiency and storage

Meet future carbon and emissions constraints

Historical Expectations Emerging Expectations

Affordable Power

Reliable Power

Secure Power

The energy industry is highly regulated, capital intensive, risk averse,

innovation poor and highly fragmented

Big data in utility operations

New real-time

measurement

devices and

communications

provide a view of

the power system

that has profound

implications for

grid operation

and control.

GENERATION TRANSMISSION

DISTRIBUTION

Substation

Residential

Power Plant Renewable

Sources

Industrial &

Commercial

Energy Storage

Electricity Infrastructure Operations Center (EIOC)

Contingency analysis visualization tool

Problem

Operator Actions

Reconfiguration,

Re-dispatch,

Load shedding

Solution

Interactively evaluate candidate remedial actions

Bank remedial actions

Provide operation guidance

If we knew then…

14 Aug 2003

Future Power Grid Initiative (FPGI)

Purpose

Develop new-generation algorithms and tools for data networking, modeling/simulation, and visualization and decision support

Approach

Combine PNNL’s distinctive capabilities in power systems, data-intensive high-performance computing and visual analytics to address the scale and real-time challenges in future grid operation and planning

Deliverable

GridOPTICS™ – Grid Operation and Planning Technology Integrated Capabilities Suite

What is a “smart” grid?

Transmission system optimized for better utilization and reliability

Demand-side resources, down to the residential level, play a role in grid

management

Transactive Control: Expressing Aggregate Customer Price

Flexibility Allows Grid to Set Price/Incentive to Achieve One

or More Operational Objectives

December 10, 2013 15

Refrigerator

Price

($/kWh)

Load

(kW) Water Heater

Price

($/kW

h)

Loa

d

(kW)

Price-Discovery Mechanism

Load

(kW)

Price

($/kWh)

Aggregate

Demand Curve

(all customers)

Pclear

Qcapacity

Supply Limit

Price

($/kWh)

Load

(kW)

Charge battery

Discharge battery

Water heater

AC

Customer Price-Flexibility Curve

Price

($/kWh)

Load (kW)

Charge battery

Discharge battery

Water heater

AC

Max

Load

Base

Load

4. Price at

which

control

objective

achieved 2. Aggregate to

form

customer’s

overall price

flexibility

3. Utility

aggregates

across all

customers

1. Price-Responsive Device Controls

Express the Customer’s Flexibility

Air Conditioner

Price

($/kWh)

Load

(kW)

Transactive control

Olympic Peninsula Demonstration Project

Explored consumers’

response to real-time

prices

Tested smart appliances in

112 homes for one year

Real-time, two-way market

with real cash incentives

Lessons learned from demo project

Customers saved on

average about 10%

15% reduction of peak load

Up to 50% reduction in total

load for several days in a row

during shoulder periods

Response to wholesale

prices + transmission

congestion + distribution

congestion

What:

• $178M, ($89M private, $89M ARRA-funded), 5-year demonstration

• 60,000 metered customers in 5 states

Why:

• Quantify costs and benefits

• Develop communications protocol

• Develop standards

• Facilitate integration of wind and other renewables

Who:

Led by Battelle and partners including BPA, 11 utilities, 2 universities, and 5 vendors

Pacific Northwest Smart Grid Demonstration

(PNWSGD) Project

Potential impacts of high penetration

of EVs on the U.S. power grid

73%

Frequency regulation with

smart loads (EVs and water heaters)

Actual production

Generation schedule

Real-time operation

When…

• Located at strategic location in bulk power to reduce congestion

• In distribution system/home to reduce distribution congestion

Economic value Reliability value

0

0.2

0.4

0.6

0.8

1

0 3 6 9 12 15 18 21 24

Arbitrage Infrastructure

Deferment Meeting Balance

Requirements

0

0.2

0.4

0.6

0.8

1

0 3 6 9 12 15 18 21 24

300 GW Wind

Energy storage is a valuable grid asset to provide balancing services

The real value of energy storage

Barriers to deployment

Barrier

The benefits of most new grid

technologies generally accrue to

the utilities

Traditionally conservative and

slow-moving industry that is

hesitant to deploy new

technologies

Solution

Creative business models that

find ways of sharing the value

among all stakeholders

Facilitate start-ups and new

entrants that are willing to “de-

risk” technologies

December 10, 2013 22

Barriers to deployment (continued)

Barrier

Inconsistent regulatory structures across the 50 states make it costly to introduce new concepts

Some opportunities in restructured markets, but very little in vertically integrated markets

Not a consumer-driven industry

Solution

A “Uniform Code” for regulatory and market structures to encourage economic growth and jobs

A regulatory and market structure that provides incentives for new technologies and a pathway to share benefits among all stakeholders

Given the opportunity, new companies with new products can revolutionize the industry

December 10, 2013 23

Grid technology policy issues

Technology usually leads policy

development

Electricity market structure and

regulatory policy impacts tech

deployment

Policy solutions at all

jurisdictional levels

Solution requires coordination

among all stakeholders