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  • POWER-GRID.COM : MAY 2011

    18 Selling Consumerson Meters, Money

    26 Big Challenges Remainfor U.S. Offshore Wind

    54 Selling Energy Efficiencyin the Industrial Sector

    Renewable Energy and the Grid

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    ____________

    Click here to access

    Summer 2011 Energy

    Catalogue

  • We need partners that understand our vision

    Aclara leads.

    Aclara understands that utilities need to do more

    than collect data. We are driving a future that

    integrates AMI, SCADA, distribution automation,

    and more into an Intelligent Infrastructure with

    the capability for communications and control.

    With the strength of our solutions for electric,

    gas, and water utilities, we understand your

    vision. With our network we will take you there.

    Aclara Leads.

    Create Your Intelligent Infrastructure

    Find out more at Aclara.com1.800.297.2728 | [email protected]

    for the Smart Grid.

    Go to http://pgi.hotims.com for more information.

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  • www.selinc.com | +1.509.332.1890

    SEL cybersecurity products improve power reliability while enhancing usability and

    simplifying operations. Our scalable devices include user-based access controls

    and accountability measures that support compliance efforts and work with

    existing or new SCADA or IT systems.

    SEL low-latency serial, Ethernet, and wireless products preserve information

    integrity and con dentiality across transmission, distribution, and other wide-area

    critical networks. Innovative, reliable, and economical, with no licensing, support,

    or subscription fees, SEL cybersecurity solutions include:

    Centralized logging with Syslog

    Compliance with strong access controls for your electronic security perimeter (ESP)

    Central authentication with LDAP and compatibility with Microsoft Active Directory

    Rugged and reliable operation from 40 to +85C and a ten-year, worldwide warranty

    SEL Cybersecurity SolutionsSmart Security for Routable Networks

    Learn more about SELs cybersecurity solutions at

    www.selinc.com/secure.

    Go to http://pgi.hotims.com for more information.Go to http://pgi.hotims.com for more information.___________

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  • PowerGrid International: ISSN 1547-6723,

    is published 12 times per year (January,

    February, March, April, May, June, July, August,

    September, October, November and December)

    by PennWell Corp., 1421 S. Sheridan Rd., Tulsa

    OK 74112; phone 918.835.3161. Copyright

    2011 by PennWell Corp. (Registered in U.S.

    Patent Trademark Office). All rights reserved.

    Authorization to photocopy items for internal

    or personal use, or the internal or personal

    use of specific clients, is granted by PowerGrid

    International: ISSN 1085-2328, provided that

    the appropriate fee is paid directly to Copyright

    Clearance Center, 222 Rosewood Dr., Danvers,

    MA 01923 USA, 978.750.8400. Prior to pho-

    tocopying items for educational classroom use,

    please contact Copyright Clearance Center,

    222 Rosewood Dr., Danvers, MA 01923 USA,

    508.750.8400. Distributed to executives and

    engineers in electric, water/wastewater and

    gas utilities and pipeline companies around the

    world. Periodicals Postage Paid at Tulsa, OK

    and additional mailing offices. Subscription: $85

    per year (U.S.), $94 (Canada/Mexico), $225

    (international air mail). Back issues of PowerGrid

    International may be purchased at a cost of

    $13 each in the U.S. and $21 elsewhere. Copies

    of back issues are also available on microfilm

    and microfiche from University Microfilm, a Xerox

    Co., 300 N. Zeeb Rd., Ann Arbor, MI 48103.

    Available on the NEXIS Service, Mead Data

    Central Inc., Box 933, Dayton, OH 45402; (937)

    865-6800. Postmaster: Send address changes

    and other circulation information to PowerGrid

    International, P.O. Box 3264, Northbrook, IL

    60065-3240. Return undeliverable Canadian

    addresses to P.O. Box 122, Niagara Falls, ON L2E

    6S4 PowerGrid International is a registered

    trademark of PennWell Corp. We make portions of

    our subscriber list available to carefully screened

    companies that offer products and services that

    may be important for your work. If you do not want

    to receive those offers and/or information, please

    let us know by contacting us at List Services,

    PowerGrid International, P.O. Box 2280, Tulsa

    OK 74101.

    Member American Business Press.

    BPA International.

    Printed in the

    U.S.A. GST No.

    126813153

    Publications Mail

    Agreement No.

    40052420

    2 | May 2011www.power-grid.com

    MAY 2011 VOLUME 16.05

    36 Solutions for Integrating PV into the Grid Intermittency is just the beginning of the issues on the table for solar.

    .

    44 Case Study on PLC Technology at E.ONE.ON Sverige is beginning to build a smarter electric grid.

    47 Hedging Utility CustomerService Against Disaster Consumers are learning to understand newsmart tools for energy management.

    50 Coordinating the Smart GridsNew Phase of Global ImplementationToday, utilities are seeking to expand deployments.

    54 Selling Energy Efficiencyin the Industrial SectorTo ensure effective use of funds, utilities mustmaximize promoting efficiency.

    62 Products

    63 Calendar/Ad Index

    64 Perspectives

    From the Editor 6

    Notes 8

    18

    26

    30

    22Reliable, Long-life Power

    Cable Crucial to Wind Energy Systems

    Cable design and construction with validated performance-based materials

    is critical to meet demand.

    Selling Consumerson Meters, Money Senior Editor Kathleen Davis

    examines programs working toconvince consumers aboutthe joys of the smart meter.

    Big Challenges Remainfor U.S. Offshore Wind

    The need for a new transmission network could hinder wind power progress.

    Network Infrastructure Considerations for

    Smart Grid Strategies Data creep is under way. Is

    your network prepared?

    40 Cables are so Brilliant Theyre BoringSenior Editor Kathleen Davis interviewsDow Wire & Cables Simon Sutton.

    58 The Smart Grids Singular Security ChallengeA smart grid security breach couldlead to unsafe situations.

    g

    r

    ew

    Grids

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  • Embrace your power. With our software solutions, you can manage and analyze

    grid, customer, nancial and operational data. Simultaneously. Meaning you can

    make smarter decisions, faster. Its just one of the many ways we can help you turn

    vast amounts of data into insightful, actionable business intelligence.

    Visit Itron at CS Week Booth #413 to learn more.

    START HERE itron.com

    Go to http://pgi.hotims.com for more information.

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  • 4 | May 2011www.power-grid.com

    EDITOR IN CHIEFTeresa Hansen

    918.831.9504 [email protected]

    SENIOR EDITORKathleen Davis

    918.832.9269 [email protected]

    ASSOCIATE EDITORKristen Wright

    918.831.9177 [email protected]

    ONLINE/ASSOCIATE EDITORJeff Postelwait

    918.831.9114 [email protected]

    PRESENTATION EDITORDeanna Taylor

    918.832.9378 [email protected]

    BUSINESS ADMINISTRATORAngie ODea

    918.831.9431 [email protected]

    CIRCULATION MANAGERJanet Orton

    918.831.9191 [email protected]

    CIRCULATION DIRECTORGloria Adams

    603.891.9479 [email protected]

    SUBSCRIBER SERVICEP.O. Box 3264, Northbrook, IL 63264

    phone 847.559.7501

    fax 847.291.4816 [email protected]

    PUBLISHERMichael Grossman

    918.831.9500 [email protected]

    PENNWELL CORP. IN EUROPEPennWell House, Horseshoe Hill, Upshire

    Essex EN9 3SR, United Kingdom

    phone +44.1992.656600

    fax +44.1992.656700

    [email protected]

    CHAIRMANFrank Lauinger

    PRESIDENT/CEORobert F. Biolchini

    SENIOR VICE PRESIDENT, FINANCE& ADMINISTRATION (CFO)

    Mark C. Wilmoth

    1421 S. Sheridan Road, Tulsa, OK 74112

    PO Box 1260, Tulsa OK 74101

    Phone 918.835.3161 Fax 918.831.9834

    [email protected]

    http://pennwell.com

    POWER-GRID.COM

    Get daily news and up-to-date industry

    information online at our website. The site

    features topic centers across multiple areas,

    including metering, smart grid, demand response

    and transmission. Online Editor Jeff Postelwait

    posts fresh news every weekday morning to give

    you the insiders scoop on industry leaders and

    laggards. Got a lead? Drop him a line at jeffp@

    pennwell.com.

    Issue ArchivesTo see a story from our archives, visit the

    POWERGRID International website at www.power-

    grid.com. (The digital archives go all the way back to

    the January 1996 issue when we were simply called

    Utility Automation.)

    From the home page, hover over the home

    button at the top left. Then, click on current issues

    under the subtopics that pop up. On the next page,

    scroll down to POWERGRID Internationals latest

    cover photo and click the view past issues link

    thats underneath the picture.

    Finally, on the next page, hit the year youd like

    to visit and then scroll down to the issue you are

    interested in.

    And dont forget that digital pathway. You can use it

    anytime to see any previous issue from POWERGRID

    Internationals magazine archives: home, current

    issues, past issues, year, month.

    POWERGRID International isPowering up the TwitterverseFollow POWERGRID International on Twitter at the

    username @POWERGRIDmag.

    While you dont need a Twitter account to view our

    updates, if you do have one, be sure to send us a

    message so we know youre out thereand so we

    know what news interests you the most.

    Go SocialFollow POWERGRID Internationals favorite electric

    T&D conference, DistribuTECH, on Facebook.

    Become a friend today.

    Link: http://www.facebook.com/pages/

    DistribuTECH/161409009309

    _______________________________________

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    __________________

    ________

    ______

    POWERGRID International is the agship media sponsor for

  • www.dowinside.com

    Trademark of The Dow Chemical Company Dow Wire & Cable is a global business unit of The Dow Chemical Company and its subsidiaries.

    Experience the Power of Dow Inside

    Accessible, dependable power is the lifeblood of a vibrant economy. Making sure

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  • 6 | May 2011www.power-grid.com

    EDITOR IN CHIEF

    TERESA HANSEN

    FROM THE EDITOR

    California Gov. Jerry Brown on April 12 signed

    legislation requiring the states utilities to obtain 33

    percent of their electricity from renewable sources by

    2020. This is the most aggressive renewable portfolio

    standard (RPS) in the country. The previous California

    RPS mandated 20 percent by 2020.

    To people who know little or nothing about how

    electricity flows through the transmission and distribution

    system and whats involved in keeping the lights on, this

    sounds like a great idea. Many believe the percentage

    should be higher. To people who understand the ins and

    outs of electricity generation and delivery, however, it

    seems like a mammoth taskmaybe impossible.

    Major advancement in energy storage technology

    will be required to maintain reliable service with the

    heavy intermittent load that 33 percent renewable

    sources will introduce to the grid. Fortunately, utilities,

    technology companies and government are investing

    heavily in energy storage research and development. For

    example, the Department of Energys (DOEs) Advanced

    Research Projects Agency-Energy (ARPA-E) on April 15

    signed a deal with Duke Energy and the Electric Power

    Research Institute to identify opportunities for testing

    and deploying ARPA-E-funded projects that will bolster

    the electric grid. One of the initiatives main focuses is

    grid-scale energy storage.

    Duke Energy committed to developing grid-scale

    energy storage some time ago. It announced in November

    2009 plans to match a $22 million DOE grant to install

    large-scale batteries at its 153-MW Notrees wind farm

    in West Texas. A few weeks ago the utility announced it

    selected Austin-based Xtreme Powers energy storage and

    power management system for the site.

    DOE Secretary Steven Chu in April announced that

    up to $130 million from the ARPA-E will be made

    available to develop five new program areas that could

    spark critical breakthrough technologies. This includes

    $30 million to fund the Green Electricity Network

    Integration (GENI) project. Although this project is not

    an energy storage project, it is aimed at making the grid

    able to handle intermittent load better from renewable

    sources. Its main goal is to develop innovative grid-

    control software and high-voltage hardware.

    A couple of articles in this issue discuss renewable

    energy and the grid. On page 36 Johan Enslin of Petra

    Solar writes of photovoltaic solar integration solutions.

    Ram Ramachandran of Dow Wire & Cable explains the

    importance of using high-quality cable in wind facilities

    to mitigate maintenance issues and help ensure grid

    reliability on page 22.

    The industry is working on projects that should help

    California utilities deliver reliable electricity services

    as more renewable sources come online. Whether the

    needed technology breakthroughs will occur soon

    enough is unclear.

    Cost could be the white elephant in the room. Even if

    the technology is available in time, it will not be cheap.

    Critics of the new lawincluding Pacific Gas & Electric

    Co. (PG&E), the states largest utilitypredict the RPS

    will create much higher electricity rates for all consumers.

    In the late 1990s and early 2000s, California took

    a lead role in deregulating the electricity market. Its

    lawmakers were sure competition among generating

    companies would lower electricity prices. It didnt. At

    one point wholesale electricity prices increased 800

    percent. In addition, the state experienced more than

    one large-scale blackout, and rolling blackouts were

    common. By 2002, both operating units of PG&E

    were under bankruptcy protection. Southern California

    Edison was nearly bankrupt. Some reports and studies

    say the botched deregulation attempt cost the state, its

    utilities and consumers between $40 billion and $45

    billion.

    California consumers havent forgotten this debacle,

    and I doubt theyll understand if this latest cutting-edge

    energy legislation raises their rates.

    Californias Newest Cutting Edge Electricity Legislation Faces Hurdles

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  • 2010 S&C Electric Company 1042-A1006

    It minimizes the extent and duration of power outages. Cuts the cost of electricity delivery. And all but eliminates consumer complaints that always accompany power outages. Rapid restoration is critical. And nothing restores power faster than S&Cs total self-healing solution. Our system gives you the ability to restore service in just secondsautomatically.

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  • 8 | May 2011www.power-grid.com

    NOTES

    SATELLITE COMMUNICATION ISNT TOO

    EXOTIC FOR THE SMART GRID

    Satellite communication has long

    been used in utility networks to

    provide connectivity for supervi-

    sory control and data acquisition

    (SCADA) and applications such as

    voice, video and data to remote

    substation sites that other commu-

    nications methods cannot reach

    economically. Despite this his-

    tory, satellite communication often

    is viewed as an exotic technology

    and overlooked as a smart grid

    communications option.

    Satellite communication recently

    has evolved in improving perfor-

    mance reliability and reducing costs.

    Satellite networks are now two-way

    communications systems built on

    Internet Protocol (IP) with broad-

    band data rates. Next-generation

    coding standards have made sat-

    ellite more reliable and cost-effi-

    cient. Satellite networking hard-

    ware has been engineered to meet

    BY BOB GOHN, PIKE RESEARCH

    TO THE EDITOR

    Dear Ms. Hansen,

    I read your From the Editor column in March 2011

    POWERGRID International with some interest. I was not

    surprised by your reaction to the negative comments

    received in response to Onell Sotos article, but I also am

    not surprised by the negative comments. I am an energy

    professional, having worked as an engineer for a major

    utility for 18 years and as a consultant for 22 years, and

    I have many negative comments concerning the moves

    toward energy conservation and the smart grid.

    First and foremost, the average individual energy

    consumer sees the move toward energy conservation

    as an attempt by utilities to save money at consumers

    expense. Most consumers remember the days when

    utilities were guaranteed a return on investment in return

    for supplying energy when and where needed in any

    quantity needed. They remember being encouraged to

    use energy to improve their lives. Now they are being

    asked to curtail their use of energy and to alter their

    lifestyles to make life easier for the utilities. Rather than

    doing dishes, washing clothes or using hot water at the

    customers convenience, these activities are to be shifted

    to the times most convenient to utilities.

    The consumer sees no real economic benefit for

    himself or herself from energy conservation. In some

    cases, utilities note that they receive less income due

    to energy conservation and apply to their commissions

    for rate increases, leaving consumers to feel betrayed or

    played for fools.

    The consumer also sees a growing intrusion into his

    or her personal life. Smart appliances can report to the

    utility when they are being used. Smart appliances can

    be controlled remotely be the utility. (One government

    study by the Department of Energy advocated mandatory

    remote control of consumer appliances to reduce the

    need for increased electrical generation.) In addition, a

    wealth of personal information that can be inferred from

    the usage patterns of various appliances.

    For more knowledgeable consumers, there is

    also the issue of energy security. In an age when

    computer hackers can compromise any network,

    steal information from almost any data base, and

    compromise industrial control systems, the smart

    grid appears to be a tempting target for the random

    computer hacker and for the organized cyber attack

    forces of hostile states and organizations.

    The energy industry has not made its case to

    consumers and has, in my opinion, given short shrift to

    the issues inherent in the changes it proposes to impose

    on a skeptical public.

    Mark W. Bailey, P.E.

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  • Go to http://uae.hotims.com for more information.

    _____________

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  • 10 | May 2011www.power-grid.com

    NOTES

    terrestrial networking tech-

    nologies.

    Lower entry cost as a result

    of dynamic bandwidth-sharing

    techniques such as the deter-

    ministic time division multiple

    access (TDMA) technology.

    Terrestrial-grade service level

    agreements (SLAs) based on

    advances in quality-of-service

    management that allow

    bandwidth prioritization by user,

    application, virtual local area

    network (VLAN), IP address or

    other identifiers combined with

    static or dynamic committed

    information rates (CIR).

    Data security through the con-

    figuration of encrypted private

    next-generation carrier standards,

    integrating well with terrestrial wire-

    less and wireline communications.

    Advances in satellite communica-

    tions and in particular very small

    aperture terminal (VSAT) technolo-

    gies have expanded the range of

    potential smart grid applications.

    These systems use small antennas

    (often less than 1 meter), simpler

    IP-compatible terminal equipment

    and better performance than earlier

    satellite systems. These VSAT solu-

    tions provide:

    Broad geographic coverage,

    including areas where standard

    wired and wireless technolo-

    gies cannot reach. Flexible data

    rate performance, ranging from

    16 kilobytes per second (kbps)

    suitable for basic SCADA con-

    nectivity to speeds of 1 megabit

    per second (Mbps) and above

    in support of voice, video

    and general data applications.

    Performance often is enhanced

    further by bandwidth optimiza-

    tion technologies for IP com-

    munication, such as user data-

    gram protocol (UDP) header

    compression.

    Highly reliable connectivity,

    suitable for day-to-day opera-

    tion or as a backup to terres-

    trial systems during disaster

    recovery situations.

    Full IP-based integration with

    standard wired or wireless

    At Nynas, were passionate about everything to do with power.

    Need to talk to a transformer oil supplier who understands your business? One whos local enough to be near you, yet global enough to have the expertise you need. Get in touch. www.nynas.com

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  • May 2011 | 11 www.power-grid.com

    networks, which is necessary

    for utilities to comply with

    the North American Electric

    Reliability Corp. (NERC) speci-

    fications. Support of multiproto-

    col label switching (MPLS) and

    VLANs separates different users,

    applications or both (SCADA

    vs. generalized data) with their

    own bandwidth assurances.

    Protection against weather con-

    ditions through adaptive modu-

    lation techniques that maintain

    signal strength during rain or

    solar events that sometimes

    occurred with older satellite

    technologies.

    Utilities may build and operate

    their own private satellite network

    by leasing dedicated bandwidth

    from satellite operators such as

    Intelsat and SES. If deploying many

    satellite terminals, a self-managed

    network can be cost-effective. For

    smaller networks, however, working

    through a satellite network provider

    is an attractive alternative because of

    the bandwidth economies of scale in

    an existing providers larger network

    deployment.

    In addition to supporting sites

    such as substations and power gen-

    eration plants, satellite is an increas-

    ingly viable option for other smart

    grid applications, including:

    Broadband connectivity to

    remote substations to support

    video surveillance, and voice

    and data connectivity to increase

    security and productivity.

    Advanced metering infrastruc-

    ture (AMI) backhaul from meter

    aggregation nodes, especially in

    more remote, rural areas where

    other technologies might not be

    cost-effective.

    Distribution automation con-

    nectivity, ensuring connectivity

    throughout the service territory.

    Monitoring and control of

    remote renewable generation

    sites, such as solar or wind farm

    management.

    Business continuity applica-

    tions, providing links to back-

    up network operations centers

    Go to http://uae.hotims.com for more information.

    www.nynas.com

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  • 12 | May 2011www.power-grid.com

    NOTES

    nication hardware as a result of

    using various vendors. Numerous

    critical components constitute the

    smart grid. Capability

    is complicated fur-

    ther because many

    components are leg-

    acy and not directly

    smart grid-friendly.

    Given this versa-

    tility and protocol

    independence, net-

    working technology

    can bring together

    diverse devices on

    the network. Device

    server technology

    can aggregate com-

    munications of local

    interfaces including

    asynchronous serial,

    RS-232, RS-485,

    Bluetooth, ZigBee and digital and

    analog input/output (IO).

    Machine-to-machine (M2M)

    communications addresses the

    data issue, as well. It allows for

    the collection of real-time meter

    data from legacy equipment,

    which then can be sent to the

    utility to interpret and address.

    Power-consumption information

    As the smart grid gains in pop-

    ularity, embedded technology that

    enables two-way communications

    is becoming a key component

    in extracting data from legacy

    equipment at the networks edge.

    Intelligence can be embedded

    inside meters or attached exter-

    nally to equipment. The efficient

    acquisition of data and control

    across the network from each

    isolated point are power industry

    requirements.

    But what is critical to enabling

    this real-time communications high-

    way? The answer is communica-

    tions technology embedded in util-

    ity meters, distribution substations

    and other related power equipment.

    Such technology enables organiza-

    tions to control entire systems, read

    meters and allocate power according

    to need from one central location

    over the Internet.

    As highlighted by Pike

    Researchs December 2010 smart

    grid report on 10 trends to watch

    in 2011, it will be important

    to keep an eye on communica-

    tions standards, data management

    and networking vendors enter-

    ing the space. Industry standards,

    including IEEE802.11n, Wi-Fi

    Enterprise, IEE802.3, ZigBee,

    IEE802.15.4 and Bluetooth will

    begin to catch up with deploy-

    ments, and companies will need

    to determine which works best.

    Data management also becomes

    more difficult as more smart

    meters are deployed because of

    the influx of information that

    must be tracked. All this is lead-

    ing to utility companies looking

    at their back end databases and

    business intelligence infrastruc-

    ture to ensure they can handle

    the data seamlessly. Its important

    to bring together the range of

    communications hardware and

    protocolsTransmission Control

    Protocol (TCP) and Internet

    Protocol (IP), Simple Network

    Management Protocol (SNMP),

    Modbus, and Open Smart Grid

    Protocol (OSGP)to remotely

    control and manage the diverse

    devices on the network and

    behind firewalls.

    The utilities industry recogniz-

    es the benefits of IP-based com-

    munication. At the substation

    level, however, there are often

    compatibility issues with commu-

    THINKING ABOUT SMART GRID INTELLIGENCE

    BY DARYL MILLER, LANTRONIX

    (NOCs) during emergency

    response or disaster recovery

    situations.

    Redundant communications at

    critical substation and distribu-

    tion sites to backup terrestrial

    communications.

    Remote sites are not necessarily

    limited to sites in rural or geographi-

    cally remote locations. Sometimes

    locations in urban centers have

    limitations that make standard

    wired technologies economically

    unfeasible, including right-of-

    way access, line-of-sight or inter-

    ference issues. In these cases,

    satellite can be a viable option.

    Bob Gohn is a senior analyst at

    Pike Research. This piece is excerpted

    from Smart Grid Technologies and

    the Role of Satellite Communications

    available from Pike Research. More

    information on this paper and other

    research is available at http://pikere-

    search.com.

    ________

    _______

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  • May 2011 | 13 www.power-grid.com

    can be sent via numerous forms

    over the network, including

    Ethernet, 802.11, cellular and

    power line carrier. The challenge

    occurs when companies with legacy,

    non-networked equipment want to

    optimize their investment in existing

    infrastructure. Using external device

    servers and embedded modules,

    organizations can provide serial

    connectivity for applications, as

    device servers allow independence

    from proprietary protocols.

    In addition to device servers,

    M2M technology provides the

    ability to translate protocols to

    allow nonroutable protocols to be

    routed. It also offers options for

    serial and network connections,

    including serial tunneling and

    automatic host connections.

    With so much data available,

    organizations are challenged to

    gather and process the information

    effectively and efficiently. Integrating

    communications technology into

    ones existing smart grid deploy-

    ment enables remote access, control

    and troubleshooting capabilities for

    more efficient data acquisition, con-

    trol, reduced costs and better cus-

    tomer service. It also ensures legacy

    equipment can be connected to a

    network. This is a top priority for

    the utility industry.

    Daryl Miller is vice president of engineering

    at Lantronix.

    Organizations are challenged to

    gather and process information

    effectively and effi ciently.

    Go to http://uae.hotims.com for more information.

    ______________________

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  • 14 | May 2011www.power-grid.com

    NOTES

    1

    5

    4

    3

    2

    1

    0

    AVERAGE, RANGE OF MATURITY SCORES FOR ALLSGMM COMPASS SURVEY RESPONSES

    Matu

    rity

    Leve

    l

    SMR OS GO WAM TECH CUST VCI SE

    SMR: Strategy, Management and Regulatory OS: Organization and Structure GO: Grid Operations WAM: Work and Asset Management TECH: Technology CUST: Customer VCI: Value Chain Integration SE: Societal and Environmental

    EXPLAINING THE SMART GRID MATURITY MODEL

    AUSTIN MONTGOMERY AND DAVID WHITE, CARNEGIE MELLON SOFTWARE ENGINEERING INSTITUTE

    The Smart Grid Maturity Model

    (SGMM) is one approach many

    utilities use to assess where they

    are on the smart grid journey and

    make systematic decisions about

    how far and how fast to go.

    The SGMM is a management

    tool that helps utilities plan smart

    grid implementation, prioritize

    options and measure progress.

    Developed for utilities by utilities,

    the model is hosted by the Software

    Engineering Institute (SEI) at

    Carnegie Mellon University. The

    SEI is maintaining and evolving

    the SGMM as a resource for

    industry transformation with the

    support of the Department of

    Energy (DOE) and input from

    stakeholders.

    Utilities use the SGMM to assess

    their current state of smart grid

    implementation, define their goals

    for a future state and generate

    inputs into their road mapping,

    planning and implementation

    processes. Major investor-owned

    utilities and small public power

    utilities in the U.S. and around the

    world have reported finding the

    model a valuable tool.

    ACCESSING AND

    APPLYING THE SGMM

    Applying the model begins with

    an assessment using the SGMM

    compass, a survey instrument

    containing questions correspond-

    ing to each characteristic in the

    model, as well as demographic

    and performance information. An

    SGMM assessment yields a matu-

    rity rating that represents defined

    stages of an organizations progress

    toward achieving its smart grid

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  • May 2011 | 15 www.power-grid.com

    vision in automation, efficiency,

    reliability, integration of alterna-

    tive energy sources, improved

    customer interaction, energy

    and cost savings, and access to

    new business opportunities and

    markets. Maturity levels must be

    viewed in the context of an orga-

    nizations business goals and regu-

    latory environment. Achieving a

    high level in every domain is

    not necessarily a suitable goal for

    every organization.

    Utilities have two options for

    conducting an SGMM assessment

    and using the model: working

    with an SEI-certified SGMM

    navigator or completing a self-

    assessment.

    Information about the SGMM,

    including downloadable model

    artifacts, guidance on using the

    model and details on the SGMM

    navigation program (includ-

    ing becoming a certified SGMM

    navigator), is available at http://

    sei.cmu.edu/smartgrid/tools. (See

    Figure 1 for maturity results.)

    USER EXPERIENCES

    SGMM users range from large

    investor-owned utilities to small

    municipalities in the U.S. and

    around the world. Some are pio-

    neers in smart grid implemen-

    tation; others are just thinking

    about smart grid. The way in

    which they use the model differs

    according to their circumstances,

    but all have reported benefits from

    using this community resource.

    For utilities that have embarked

    on a smart grid journey, the

    SGMM has proven useful to help

    management take a step back

    from the day-to-day activity, foster

    cross-organization discussion and

    consensus, assess progress and

    refine plans.

    SDG&E is working hard to

    realize the benefits of smart grid,

    said Lee Krevat, direct of smart

    grid at San Diego Gas & Electric

    Co (SDG&E). Going through

    the SGMM navigation process

    with our cross-cutting smart grid

    team gave us an opportunity to

    take a step back to share diverse

    perspectives and take stock of

    The SGMM is useful to help

    management take a step back

    from day-to-day activity.

    Go to http://uae.hotims.com for more information.

    _________________

    _________________________

    ____

    ___________________

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  • Go to http://uae.hotims.com for more information.

    NOTES

    To test the applicability of the

    SGMM to the public power sector,

    the SEI with the support of the

    DOE and American Public Power

    Association conducted a pilot

    study using the SGMM navigation

    process with American Municipal

    Power in Columbus, Ohio, and

    22 of its member utilities. The

    participating utilities found that

    the SGMM provided a useful com-

    mon language and framework for

    discussing smart grid and recom-

    mended it for other public power

    utilities.

    American Municipal Power

    members said the final report

    offers an objective analysis of their

    utility; it provides more weight to

    our progress and strategic

    direction. We look forward to

    benefiting not just from our own

    use of the model but to sharing

    experiences and lessons learned

    with other utilities in the SGMM

    community.

    Utilities have done multiple

    SGMM assessments, using it as a

    standard to measure their prog-

    ress and refine their strategy and

    implementation.

    Pepco Holdings Inc. has been

    involved with the SGMM since

    its inception, said George Potts,

    Pepco Holdings vice president of

    business transformation.

    We recently completed the

    survey again, using the SGMM

    navigation process, Potts said.

    This was helpful in fostering

    candid, fact-based discussion of

    where we have been, where we

    are today and where we expect to

    be in the future. We look forward

    to using the tool as an integral

    part of our ongoing planning and

    transformation process and in

    measuring our progress.

    For utilities just starting, the

    SGMM can provide a reference

    set of community experience and

    help them establish a smart grid

    road map and strategy. Some utili-

    ties also have used SGMM outputs

    to communicate with stakehold-

    ers about smart grid investment

    benefits and costs.

    ___________

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  • May 2011 | 17 www.power-grid.com

    2BREAKDOWN OF UTILITY TYPE AMONGEXPANDING SGMM COMMUNITY

    Single Function Partially Integrated(2 Functions)

    Fully Integrated(4 Functions)

    Partially Integrated(3 Functions)

    25.8%

    Distribution Only

    2.2%

    Transmission

    Only

    27%

    Generation, Transmission,

    Distribution, Retail

    2.2%

    Generation, Distribution

    2.2%

    Generation, Transmission

    9%

    Transmission, Distribution

    10.1%

    Distribution, Retail

    4.5%

    Generation,

    Distribution, Retail

    4.5%

    Generation,

    Transmission,

    Distribution

    12.4%

    Transmission,

    Distribution, Retail

    the results and has created a communication

    tool they can share with the community to

    help them leverage support as they set a

    vision.

    Some users have applied the SGMM

    in national and regional road mapping

    initiatives. During summer 2010, the

    Mexican national utility, Comisin Federal

    de Electricidad (CFE), and the Mexican

    Energy Ministry, Secretara de Energa de

    Mxico (SENER), became the first organi-

    zations to apply the SGMM at the national

    level as an aid in developing a national

    smart grid road map. CFE is one of the

    worlds largest utilities, serving 33.9 million

    customers.

    After familiarizing themselves with the

    SGMM, the CFE-SENER team selected a

    group from three CFE divisions (repre-

    senting different regions, load profiles and

    conditions within Mexico) to participate in

    an SGMM pilot, thus providing insight at national

    and regional levels. The CFE team found the process

    helpful in identifying issues for discussion, provid-

    ing a baseline for measuring progress and generating

    valuable inputs into planning.

    As of January, some 100 utilities have used the

    SGMM, representing a cross section of utility types

    and sizes (see Figure 2). As more utilities around the

    world participate and the experience base around

    the SGMM grows, it becomes an increasingly valu-

    able resource to inform the industrys smart grid

    transformation.

    Austin Montgomery is smart grid program lead for the Carnegie

    Mellon Software Engineering Institute. David White is project manager at

    the Carnegie Mellon Software Engineering Institute and a core member

    of the development team for the Smart Grid Maturity Model (SGMM).

    Go to http://uae.hotims.com for more information.

    EtherNet/IP with CIP Messaging

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  • EnergyAxis conference in Bonita Springs, Fla., that

    the average customer starts with an emotional deci-

    sion then develops reasons to rationalize it. The tradi-

    tional, logical approach utilities often use to sell smart

    metering pilots, meter changes, pricing programs

    and the smart grid mighty not be effective, she said.

    Advertising messages that work best often balance an

    emotional and rational promise.

    When it comes to the smart grid and smart metering

    programs, utilities traditionally have used a handful of

    rational arguments to sell their programs to consumers:

    It helps the environment,

    It will help with energy efficiency, and

    Bills will be more accurate.

    The problem with these arguments, Shelton said, is

    that the average utility sending these messages doesnt

    recognize consumers emotional side that isnt rational

    and is freaked out about their own money.

    Using the three examples, Shelton showed studies

    that debunk how effective these campaigns could be.

    According to her numbers, 3 percent of the population

    knows that coal-fired plants affect climate change. They

    dont understand the connection between energy and

    the environment, she said.

    Utilities were deemed trusted with efficiency pro-

    grams in the survey. Customers surveyed said utilities

    are working to make things more efficient on the utility

    end, but customers do not know why utilities are trying

    to sell them efficiency on their end. Seventy-two percent

    of customers said they are not using more power than

    they were five years ago, and half of homeowners said

    their homes already are efficient.

    In the days of vertically integrated monopolieswhen utilities still referred to customers by emotionally dis-tant names such as end users and end pointsutili-

    ties neednt worry much about people and their money.

    Customers didnt have choices, and utilities didnt need

    to care about customers, their choices, their money or

    how they felt. Power wasnt an emotional business.

    Along with the push toward the smart grid and

    the influx of smart meter data comes a shift in utility

    focus. Today utilities must address customers and their

    emotional choices, especially about money, because in

    customers minds utilities are touching a lot of itin

    some cases taking it, in some cases offering it back, but

    always with their fingers in it. That makes for a nervous

    end point.

    COUNTERING EMOTIONS

    A benefit of the numerous smart grid or smart meter-

    ing pilot programs revving up across the U.S. and

    Canada is all that dataconsumption data, especially.

    With all that data and timely informationsometimes

    down to 15-minute intervalscomes an opportu-

    nity for utilities: changing the traditional flat-rate pricing

    most work with to something dynamic that works flu-

    idly with a demand-oriented cost structure.

    But now utilities are touching peoples money, and

    people take that personally. They get scared, weepy,

    excited or mad about it, which can spell trouble.

    You cannot fight an emotional argument with a logi-

    cal one, said Suzanne Shelton, president and CEO of

    the Shelton Group, an advertising agency focused on

    sustainable choices.

    She warned utility professionals March 15 at Elsters

    Selling Consumers on Meters, MoneyBY KATHLEEN DAVIS, SENIOR EDITOR

    18 | May 2011www.power-grid.com

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  • Customers said utilities are making things more effi-

    cient on the utility side to benefit utilities and to take

    more of their money. When utilities tell customers their

    bills will be more accurate, customers hear, Were mak-

    ing things so much easier for us to tack on fees and hide

    costs. Customers trust utilities to save utilities money

    through energy efficiency, but customers think utilities

    are ripping off consumers on billing.

    Shelton showed a video of a customer control group

    that revealed distrust and anger, including a consumer

    who said, You ask us to conserve, and we conserve, but

    the bill keeps going up.

    The utilitys rational response to that customer would

    be that shes consuming more, not less. Shelton returned

    to the emotional vs. rational argument. Consumers dont

    take ownership of their consumption, she said.

    REALIZING THE PROBLEM

    While the utility industry plans on consumers being

    better partners and on realizing the benefits of smart

    metering, the smart grid and new pricing, consumers

    arent gaga over the idea and might be the biggest hurdle.

    It will be difficult to involve customers, said Accenture

    consultant Rob Hartway during another conference ses-

    sion on the smart grid vision of the future.

    More regulation is coming, especially with rate pro-

    grams, and utilities must know from where data is com-

    ing and to where it is going, panelists said. What will

    drive that final smart grid vision isnt about regulation,

    the utilities, efficiency or the environment; its whether

    consumers accept the smart grid and smart metering as

    a good thing that saves them money.

    One of the biggest pain points will be customer

    acceptance, Hartway said. They will be our energy

    partners.

    The average consumer will require education and

    will be the center of the smart grid argument for

    years, he said.

    Panelist Wes Sylvester works in smart grid business

    development at Cisco.

    Reaching all the consumers will be key, he said.

    Hartway said customer communication will be espe-

    cially central to rolling out time-of-use (TOU) and other

    variable pricing programs. Without customer acceptance

    that these programs are positive for them and their wal-

    lets, utilities will have a hard time moving beyond flat-

    rate pricing, despite having the data and mining options

    to do so, he said.

    STARTING FROM SCRATCH

    One key to rolling out pricing programs will be initiat-

    ing customer communication before the pricing concept

    is even a gleam in the eye, before money evokes emotion.

    Westar Energy, a utility serving 684,000 Kansas cus-

    tomers, has regulated rates. It hasnt stopped them from

    introducing a smart grid pilot called SmartStar in the

    Lawrence area. Some 45,000 meters are slated for instal-

    lation with completion in the fall. Its a $40 million pro-

    gram, and the company sees potential benefits, including

    a future TOU rate program. Now the company is focused

    on gathering happy customers, said Kevin Heimiller,

    Westar smart grid director.

    Were taking a meaningful, yet cautious, approach,

    Heimiller said. We need to gauge customer participation

    and results or this project could be in trouble.

    The full pilot program will be in place by summer

    2012, complete with an online customer energy portal

    to track use and cost. Westar started with communities

    from the beginning, Heimiller said.

    The utility pushed the program using positive, grass-

    roots efforts: explaining projects before application,

    updating local media, speaking regularly with the city

    and organizations, being active in community events

    (including a sidewalk sale, where they were the only

    people not selling anything) and collaborating with

    locals as much as possible.

    Well go anywhere and talk to anyone, Heimiller

    said.

    The opinion of SmartStar was 64 percent positive, a

    Westar survey revealed. The utility eventually will apply

    that cautious, positive, consumer grassroots approach to

    TOU rates.

    TOU is a large room of opportunities, Heimiller said,

    but we must engage the customer to make sure they like

    what we do with that.

    Dominion is another utility cautiously approaching

    the pricing programs smart metering can offer, said

    Mike Gurganus, Dominions manager of advanced

    May 2011 | 19 www.power-grid.com

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  • metering solutions.

    Dominion has 2.4 million electric customers in the

    Central South, with a primarily residential and com-

    mercial base. Dominion has three meter demo areas,

    including a 7,000-meter program in Richmond, Va.,

    a 50,000-meter program in Charlottesville, Va., and

    another 35,000-meter program in northern Virginia

    (near major Washington, D.C, suburbs).

    The programs major benefit is about consumer cash.

    Dominion is working to enhance pricing signals and is

    examining flexible bill-pay options, making the emo-

    tional side of cash positive.

    Communications are key to buy in from stakehold-

    ers, Gurganus said.

    Dominion worked hard early to demystify smart

    meters. Next includes a dynamic-rate pilot, which is

    approved and is expected to be in place by late summer.

    The goal is to test customers responses to dynamic-

    pricing signals, he said.

    We havent offered customers a whole lot yet,

    Gurganus said. Were testing out options.

    PRICING NOW

    U.S.-based Salt River Project (SRP) and Canadian

    distribution utility Veridian Connections are involved in

    smart meter pricing programs. SRPs program is volun-

    tary. Veridians is mandated by the Ontario government.

    Kevin Myers, manager of wholesale settlements at

    Veridian Connections, said Canada fosters a cult of con-

    servation and money isnt as large of a factor as it might

    be to the average U.S. consumer. In this case, Ontario is

    trying to shift load from peak times. The price signals

    arent so much about change in the cash sense but more

    in the sense of saving energy for the right reason, he said.

    Communication becomes more important when

    change is forced, Myers said.

    Veridian initiated much pre-program communication,

    including mailers and door hangers. They often gave

    customers explanations and directions to access online

    price and data information. The communication effort

    involved repetition at each stage.

    The company even redesigned its first TOU bill so

    the charge would grab customers attention.

    As of March, the impact has been minimal, Myers said.

    Veridian encountered neither angry customers nor many

    complaints that overwhelmed its call center. Customers

    who made no consumption changes saw only small cost

    increases or decreases in a month. The utility has seen

    no perceptible change in load shape, either. In addition,

    less than 10 percent of Veridians eligible customers have

    registered for the portal, and less than 1 percent accesses

    that data monthly, he said.

    We dont see people logging on to analyze their data

    and consumption patterns, Myers said. Were a little

    disappointed that we havent seen a lot of changes, but

    change takes a long time to establish.

    SRPs TOU pilot is one of the biggest in the country

    with 630,000 installed smart meters in Arizona, said

    Ritesh Patel, SRP advanced metering infrastructure

    (AMI) manager. The project began in 2003 and expand-

    ed in 2004 and 2009.

    SRP customers must call and request to be added

    in, unlike Veridians program. This reduces the

    potential number of angry consumers because only

    customers who are program-educated and program-

    positive make the calls.

    Some 20 percent of SRP customersabout

    195,000participate in the TOU pilot, which

    includes Web access to hourly data and e-notifica-

    tions that can be sent to cell phones.

    SRP has made things simple, communicating well

    with customers via a link on its home page that

    asks, Are you on the right price plan? From there,

    customers can examine four options served side-by-

    side with four or five bullet points each that explain

    the TOU plan, the EZ-3 plan, the basic plan and the

    M-Power plan.

    Whether a utilitys pricing programs are real or the-

    oretical, customer communication is a must for a suc-

    cessful, emotionally positive choice for consumers.

    As Shelton said, to get to that happy positive, utili-

    ties must ask, When weve got smart meters totally

    deployed, what will we have? What are consumers

    getting?

    If a utility can answer those questions positively for

    consumers and show them the savings, the emotional

    reaction of electricity consumers will be a positive one

    that can benefit the smart grid and the industry.

    20 | May 2011www.power-grid.com

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  • January 24-26, 2012 Henry B. Gonzalez Convention Center, San Antonio, Texas distributech.com

    Presented By:Owned & Produced By: Media Sponsor: Supporting Publications:

    Be an industry leader.Submit a presentation to speak at the leading annual Smart Grid event in 2012!

    The 2012 conference in San Antonio will feature 13 or more conference tracks and more than 300 of the industrys leading

    speakers. DistribuTECH takes an in-depth look at the fundamental principles, business practices and newest technologies

    shaping the utility industry. Submit your presentation online at www.distributech.com.

    DEADL INE TO SUBMIT YOUR PRESENTAT ION: MONDAY, JUNE 13, 2 011.

    CALL FOR PRESENTATIONS

    Go to http://pgi.hotims.com for more information.

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  • of water-tree retardant XLPE or TR-XLPE insulation

    for underground (UG) power cables. The cables

    that move power from wind turbines to the grid

    on-shore or offare subject to the same mechanical

    and environmental stresses as those experienced

    in the grid. Conventional wisdom dictates that

    TR-XLPE becomes the choice material for wind farm

    35kV UG power distribution cables.

    QUALITY MATERIALS MATTER

    An essential part of long cable life and system

    reliability is using quality, raw materials tested

    to perform according to industry specifications.

    Cable manufacturers look for materials that deliver

    easy processing while producing the performance

    The Global Wind Energy Council (GWEC) recently reported 22 percent growth in installed wind energy capacity worldwide during 2010. This repre-

    sented a $65 billion investment in supporting equip-

    ment and power distribution infrastructure.

    To protect this investment, the balance between

    total system cost and long-term system

    reliability is crucial. If a wind farm developer,

    independent power provider or utility

    specifies quality cables made with the best

    materials technology and manufactured

    with exacting standards, the installation

    can provide decades-long reliability with

    little to no downtime for electrical losses

    and expensive repairs. When it comes to

    satisfying the demand for uninterrupted

    power by ensuring system reliability, power

    cable design and construction with validated

    performance-based materials is critical.

    A LITTLE HISTORY

    As commercial wind farms have grown

    as viable alternative energy resources during

    the past 20 years, cross-linked polyethylene

    (XLPE) has been recognized as the choice

    material for medium-voltage power cable construction.

    Its popularity for direct-buried and submarine cable

    is predicated on quality, competitiveness and reduced

    long-term operating costs.

    As demonstrated in traditional power distribution

    networks (see Figure 1), however, XLPE, although

    superior to materials such as high-molecular-

    weight polyethylene (HMWPE), has seen its share

    of performance issues. That led to the development

    Reliable, Long-life Power CableCrucial to Wind Energy Systems

    BY S. RAM RAMACHANDRAN, DOW WIRE & CABLE

    22 | May 2011www.power-grid.com

    1

    1,000

    500

    100

    50

    10

    5

    11,000 2,000 5,000 10,000 20,000 50,000 100,000 200,000

    As seen in Long-life XLPE-insulated Power Cables edited by Harry Orton, of OrtonConsulting Engineers International, and Rick Hartlein, of National Electrical EnergyTesting Research and Application Center (NEETRAC)

    Est

    imate

    d C

    um

    ula

    tive

    Num

    ber

    of

    Failu

    res

    Estimated Cumulative Experience (km/yr)

    HMWPEClassic XLPEAdditive W TR XLPW

    Variable

    FAILURE DATA FOR THREEGENERATIONS OF UG MV CABLE INSTALLED

    AT TXU (ONCOR) IN TEXAS

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  • attributes end users expect. Flexibility, stress-crack

    resistance and shield strippability are considerations

    for easy installation. Once in the ground, cables

    are subject to environmental stresses including

    water intrusion and extreme temperature variations.

    Corrosion kills cables and interrupts power

    supply. It becomes increasingly important for cable

    manufacturers, wind farm developers, installers,

    utilities and others in the value chain to understand

    the benefits quality materials bring to power cable

    design and construction.

    For many years, cable has been seen as a commodity.

    The general feeling is that any standard utility cable

    will operate fine in any system. Because of this

    commodity mindset, cable often is purchased based

    on price rather than its being a critical part of

    an overall system investment. Shouldnt the cable

    specified have a lifespan equal to the

    system it supports? This is possible with

    performance cable such as TR-XLPE vs.

    base cable using standard XLPE (see Figure

    2). As a case in point, Dow Wire & Cable

    introduced its DOW Endurance MV 4202

    TR-XLPE in 1983. Studies show that nearly

    30 years later, buried cable made with this

    material exhibits little to no wear and has

    an expected lifespan of more than 40 years.

    TECHNOLOGY, STANDARDS

    Many raw materials suppliers and cable

    makers serve the wind energy market.

    Research and development at the front end

    of the supply chain is important. Cable

    makers, developers, IPPs and utilities

    should ask about the kind of technology,

    clean manufacturing and packaging

    techniques, testing and validation that

    goes into raw material production. Similarly, end

    users should insist on specifying cable that has

    gone through rigorous testing and meets at least

    the current minimum performance standards set by

    utilities. Trusting investment dollars to anything less

    is risky.

    Many testing institutes work with companies

    and their customers to ensure that raw materials

    and the cables produced with those materials meet

    recognized national and international standards.

    These organizations include: National Electric

    Energy Testing Research and Applications Center

    (NEETRAC), standards development agencies such

    as the Association of Edison Illuminating Companies

    (AEIC), Insulated Cable Engineers Association

    (ICEA) and Cable Technology Laboratories (CTL).

    In addition, cable makers are producing cables

    that consistently exceed stringent, long-term testing

    standards such as AWTT and ACLT in North America,

    VDE Standards in Germany and DL/T-1070-2007

    in China. These long-term testing methodologies

    demonstrate a proven record of ensuring long-life,

    reliable cable performance.

    No exclusive standards exist for cable performance

    May 2011 | 23 www.power-grid.com

    2

    LIFE CYCLE NET PRESENT VALUE(NPV) COMPARISON EXAMPLE

    PERFORMANCE CABLE VS. BASE CABLE

    40 35 30 25 20 15

    Base Cable Life (Years)

    NP

    V/F

    oo

    t

    453525

    $10

    $8

    $6

    $4

    $2

    $0

    ($2)

    ($4)

    No exclusive standards exist

    for cable performance

    in the wind energy market.

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  • in the wind energy market. End users must insist on

    cables that meet, or preferably exceed, the current

    power industry minimum standards. Cables form a

    small percentage of the total power system cost, and

    polymeric materials represent an even smaller percent-

    age. The renewable energy industry must take a broad

    view to focus on the needed system reliability that rests

    largely on excellent materials, quality cable-manufac-

    turing processes and elevated performance standards.

    IMPROVEMENTS AT UTILITIES

    Utilities also are implementing practices that

    include cable inspection, installation and operations.

    Wisconsin Public Service (WPS) serves more than

    400,000 electric customers in an 11,000-square-mile

    area. As discussed in a joint white paper authored by

    WPS and Dow Wire & Cable, the

    utility has focused on cable reli-

    ability for 30 years as a preventive

    action to delay cable replacement.

    Cable reliability is determined

    by WPS based on strict mate-

    rial specifications, a comprehen-

    sive plan that monitors incoming

    cable quality based on those spec-

    ifications, and in training cable

    installers. It all leads to effective

    system management.

    Similarly, as a way to provide

    mutual value and insight, many

    utilities conduct and share field

    aging evaluations that provide

    to materials suppliers and cable manufacturers a

    broader view of cable and system performance vs.

    depending solely on accelerated aging tests in a lab.

    A joint evaluation conducted by Alabama Power and

    NEETRAC confirm the robustness of TR-XLPE cables

    made and installed in 1985 (see Figure 3). Results

    indicate that cable life in excess of 40 years easily can

    be projected.

    ITS TIME TO WORK TOGETHER

    For anything worth pursuing, it takes a community

    of likeminded people to achieve success. Wind power

    is not new; however, to go from the power needed to

    turn a millstone to the power needed to light up and

    connect communities efficiently and cost-effectively

    is another story. Collaboration is essential. AWEA

    and GWEC are helping as they provide gathering

    places and information portals for all stakeholders. But

    collaboration must exist in the trenches, as well, among

    investors, developers, IPPs, utilities, equipment, cable

    and material suppliers, etc., to realize the energy goals

    that are legislated or soon will be.

    Companies and their customers are working

    together to develop, validate and adopt superior

    products for cable construction and to enhance market

    awareness about building power systems with the right

    components used best to ensure optimum results for

    the entire value chain.

    And, at a fair price that recognizes the total system

    cost, including the potential to specify quality cable

    once rather than the additional expense of repair and

    replacement over the systems lifetime.

    S. Ram Ramachandran is global director of end-use marketing

    for Dow Wire & Cable, a business unit of The Dow Chemical Co.

    Ram and his team interface with global end users such as utilities,

    communications groups, off-shore drillers and regulatory boards. He is

    a Senior Member of the Institute of Electrical and Electronic Engineers

    (IEEE) and is chairman of the Power Cable Standards Discussion Group

    of IEEE/Insulated Conductors Committee. He has eight patents and is

    the author of more than 20 papers.

    24 | May 2011www.power-grid.com

    3PROVEN FIELD PERFORMANCE WISCONSINPUBLIC SERVICE-HISTORICAL CABLE DATA

    5 7 9 11 13 15 17 19 21 23 25

    Water Trees in XLPE & TR-XLPE

    (Dow 4202) Cables (>0.3 mm)

    Wate

    r Tr

    ees

    per

    Cub

    ic Inch

    2,000

    1,500

    1,000

    500

    0

    Tree-retardant insulation

    Nontree-retardant insulation

    Years in Service Until Tested

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  • www.awea.org

    Wind Power Works

    for Electric UtilitiesNot only does wind power provide a clean source of electricity, it keeps

    electric rates low and provide a hedge against fossil fuel price volatility

    once wind projects come on-line. Wind energy costs have dropped

    over the past few years as wind turbine technology has matured, with

    taller towers, and with improved wind turbine efciency. Wind energy is

    now one of the most cost-effective sources of new electricity generation,

    competing with new installations of natural gas and costing less than

    either coal or nuclear power. Thats one reason wind power has added

    35% of all new generating capacity to the U.S. grid since 2007 thats

    twice what coal and nuclear added combined.

    JOIN US

    for the 4th Annual Utilities and Wind Power Seminar

    at the AWEA Wind Energy Fall Symposium,

    November 2, 2011 in Carlsbad, California.

    Attendees wont want to miss the

    in-depth presentations and

    interactive discussions on the

    most important issues facing

    electric utilities and wind power

    implementation, providing insight

    and topical information.

    The American Wind Energy Association (AWEA) is working with

    electric utilities all over the U.S. to help them bring wind energy to

    their customers as a source of emissions-free and domestically-

    produced electricity but also as a source of clean energy jobs.

    Learn more about AWEA membership for utilities and how your utility

    can get involved directly in the wind energy industry.

    Go to: www.awea.org/utility to learn more or send an e-mail to

    [email protected] today !!

    Go to http://pgi.hotims.com for more information.

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  • into 2012 and beyond.

    Cape Wind, which has secured power purchase

    agreements for the first half of the facilitys future output,

    hopes to begin building the 130 turbine wind farm late

    this year. However, the developer is still trying to find

    another buyer for the other half of the power.

    GETTING SMART FROM THE START

    In an effort to help the industry out, the Department

    of the Interior launched the Smart from the Start

    scheme last year to hasten project review and approval

    times to 1-3 years from the more typical seven-year time

    frame.

    The program created an accelerated leasing process

    to encourage more offshore wind development along the

    Atlantic seaboard.

    Charlie Natale, a consultant with ESS Group, said

    Smart from the Start is substantially speeding up project

    approvals, helping early offshore projects gain traction

    in the U.S.

    T he U.S. could see as many as 10 GW of offshore wind capacity installed by 2020. But it wont be easy, say industry experts.

    There are some 5 GW in planning right now, but

    who knows how much of this can be realized, said Dirk

    Matthys, the North American chief executive of Spanish

    turbine maker Gamesa. He said that growth will hinge

    on how fast the government can streamline a new pro-

    gram to approve projects.

    Other hurdles such as local opposition and the need

    for a new transmission network could also hinder prog-

    ress, said Matthys.

    Nevertheless, he believes it is possible to develop 5-10

    GW in the U.S. within the next decade.

    Washingtons incentive programs must also be

    increased for longer-term planning, observers add.

    There is a big lack of long-term incentives which you

    need for project planning purposes, said Mark Rodgers,

    communications director at Cape Wind, the company

    trying to develop the countrys first offshore wind farm

    off the coast of Massachusetts.

    According to Rodgers, the government has a project

    loan program and tax credit scheme in place for this

    year. But its uncertain if these programs will be extended

    Big Challenges Remain for

    U.S. Offshore Wind

    BY IVAN CASTANO, CONTRIBUTOR TO RENEWABLE ENERGY WORLD.COM

    26 | May 2011www.power-grid.com

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    ___________________

  • Go to http://uae.hotims.com for more information.

    The program has enabled a string of projects from

    Maine to North Carolina to more quickly move into

    advanced stages of planning and permitting, with

    projects in Road Island, Delaware and New Jersey

    furthest along.

    However, accelerated project approvals wont have a

    major impact if the transmission infrastructure isnt able

    to handle the wind farms. According to ESSs Natale, the

    lack of transmission is the sectors greatest challenge.

    The existing electricity transmission system doesnt

    have the capacity to handle the additional and pulsating

    energy that will come from the offshore projects, he

    explained, adding that costly electromechanical equip-

    ment will be needed to convert fluctuating voltage flows

    so the landline system can absorb the electricity.

    Natale expects the first offshore farms will be hooked

    inland through a zonal approach in which different

    facilities will connect through so-called collector plat-

    forms. This is not an immediate solution, as platforms

    like these are still being tested in Europe.

    Right now the collector platforms are being deployed

    by Siemens and ABB in the North Sea so they will need

    to succeed there before they can be used in the U.S.,

    he noted.

    There are also plans for an Atlantic Wind Connection

    (AWC) mega project that will provide a high-voltage

    backbone from the Carolinas to New England. The net-

    work will be connected to the sea bed and jump off at

    two or three locations to feed into New England, New

    Jersey, New York and Virginia. When finished, it will

    have the capacity to deliver 6,000 MW of wind power to

    the mid-Atlantic states.

    But, as Natale pointed out, this initiative will be very

    expensive and complicated and is seen as a long-term

    solution to the sectors transmission woes.

    IMPROVING TECHNOLOGY

    Transmission and incentives arent the only factors that

    need to improve; there is still plenty of room to advance

    the technology as well.

    According to Gamesas Matthys, the industry can still

    do a lot to improve the efficiency and reliability of tur-

    bines. Specifically, he said, generation costs must come

    down to the Department of Energys recommended

    12-13 cents per kWh in the near term, down from 20

    _______________

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  • Stay informed with

    The Utility Weekly News Wrap Up

    Join Teresa Hansen online EVERY MONDAY for the

    Utility Weekly News Wrap Up, presenting up-to-date and

    informative news briefs on important industry topics.

    Hansen, Editor in Chief of POWERGRID International, Electric Light

    & Power and Utility Products magazines, covers topics including:

    T&D Project Announcements

    Regulatory Filings and Approvals

    Legislative Issues

    Renewable Generation and Products

    And much more!

    Visit www.power-grid.com, www.elp.com or www.utilityproducts.com

    to check out the latest news and vital topics in an easy, online,

    streaming video format.

    www.power-grid .com www.elp.com www.utilityproducts.com

    Go to http://uae.hotims.com for more information.

    cents today. Beyond that, developers must hit 10 cents

    per kWh in the next decade.

    Gamesa recently teamed with Northtrop Grumman

    to build an offshore wind technology center and

    develop next-generation wind systems. Under the

    alliance, Gamesa will launch its first G11X-5 MW

    offshore prototype in the U.S. in the fourth quarter of

    2012. The Madrid-based firm also intends to work on

    a 7 MW prototype, Matthys said.

    Matthys boasted that Gamesas latest offshore tur-

    bines are more reliable and can last up to 30 years

    instead of 20 years like rival machines.

    The generation costs of offshore projects need to

    be lower, and the way to do this is to have a more

    reliable project. Our turbines help meet this require-

    ment, he explained.

    If generation costs can be cut, offshore wind will

    start to gain market share in the U.S., even with trans-

    mission constraints. As Matthys explained, in some

    cases the transmission problem isnt as big as it is for

    onshore projects.

    The big advantage of offshore is that it will be

    very close to the main energy consumption mar-

    kets [in the East coast] like New York, Philadelphia,

    Washington, Baltimore etc, Matthys said. The big

    onshore resources are in the mid west and you would

    need to build big transmission lines to meet these

    markets demand and this will also be expensive and

    challenging.

    However, even with some of this positive movement,

    it will take many years for offshore wind to catch up to

    the pace of onshore development in the U.S.

    Ivan Castano is a freelance journalist based in Miami. His work has

    appeared in Thomson Reuters International Finance Review (IFR), Dow

    Jones Financial News, Euromoney, Trade & Forfaiting Review and a range of

    trade publications covering the capital markets, private equity, loan, credit and

    restructuring markets. This article originally appeared on Renewable Energy

    World.com, a sister publication of POWERGRID International._________

    _____________

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  • Go to http://uae.hotims.com for more information.

    BY DON LEICK, TELVENT

    Better Wind Power Integration

    through More Accurate ForecastsWind power supply is an increasingly significant factor in energy utility operations and power portfolios. But because of the intermittent characteris-tics of wind, it can be a difficult energy source to integrate.

    Utilities have traditionally

    dealt with a controllable supply

    source, such as coal, nuclear

    and natural gas, which can be

    dispatched in known units. Wind

    power, in contrast, is variable.

    Utilities have experience with

    managing variable load, but

    managing variable supply

    is more challenging. This is

    especially true because wind

    power forecasts have a higher

    rate of error than traditional load

    forecasting, due to the highly

    variable nature of wind.

    Therefore, to successfully

    integrate, utilities need the most

    accurate wind power forecast

    possible. Inaccurate wind

    forecasts cost utilities significant

    money through TSO imbalance

    penalties, having to fill shortfalls

    with spot market purchases or

    accessing reserves. Too often,

    utilities are playing it safe and

    not utilizing the amount of wind

    that is available to them, due

    to the lack of confidence in the

    forecasts. More accurate wind

    power forecasts would enable

    utilities to utilize more of the

    forecasted available power at

    lower risk, and even potentially

    reduce spinning reserves costs.

    Focusing not on wind, but on

    wind power, is key. A forecast

    system needs to learn the

    patterns of the complex terrain

    effects and turbine waking

    effects that exist at all wind

    plants. This forecasting approach

    requires less observational data

    than traditional wind power

    forecasting methods. The training

    needs to be done with power

    datathe variable utilities really

    need to predictnot observed

    weather data. Meteorological

    tower observations are not

    needed for optimal forecasts.

    This can be very beneficial, as

    observed weather data is often

    expensive to gather, is of poor

    quality, or may simply not be

    available at all.

    We are at a critical stage in the

    wind power industry: Utilities

    must integrate valuable wind

    power sources more efficiently

    into their energy mix while

    continuing to add larger and

    larger amounts of it into their

    portfolios. With a system that

    provides a more accurate wind

    power forecast, achieving these

    objectives becomes much more

    attainable for utilities.

    Don Leick is senior energy product

    manager at Telvent. Wind Power Forecasts by

    WindLogics is delivered exclusively to utilities

    by Telvent.

    May 2011 | 29 www.power-grid.com

    _________

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  • in the substation and distribution

    segments of the smart grid must

    undergo changes to accommodate

    this dramatic increase in data (see

    Figure 1). First, it is easy to predict

    that Internet protocol (IP) technol-

    ogy is a key smart grid enabler

    because it is standards-based,

    flexible and scalable. Second, the

    switches and routers deployed

    throughout the infrastructure must

    adapt to the increased data demands

    by supporting greater throughput

    and also by assisting in intelligent

    Key smart grid components include remote control and automation, two-way communica-

    tions and enhanced information

    technology targeted to both utili-

    ties and their customers. In addi-

    tion to upgrading and hardening

    the power utility infrastructure,

    the smart grid is designed to help

    consumers and power companies

    make smarter decisions about how

    they use power. That requires much

    information and much data analysis.

    The implications for infrastructure

    providers are huge. As in other

    information intensive markets

    before smart grid, data creep is well

    underway. According to a December

    2010 SBI Energy study, The Smart

    Grid Utility Data Market, the

    volume of smart grid data moving

    through the infrastructure network

    will grow from 10,780 terabytes

    (TB) in 2010 to more than 75,200

    TB in 2015.

    DATA INFLUX

    It is clear that the infrastructure

    Network Infrastructure Considerations for Smart Grid Strategies

    BY JIM KRACHENFELS, GARRETTCOM, INC.

    30 | May 2011www.power-grid.com

    Synchrophasor

    Fire Wall Control Center

    Magnum 6KQ Managed FieldSwitch

    Relays

    VoltaicBatteries

    Wind

    Magnum DX940Wireless Router

    Magnum 10KT Managed Switch

    RTUs

    IEDs 1588 Precision

    Timing Required

    Distribution Substation Information Infrastructure

    47395672

    Electric Co.

    47395672

    Electric Co.

    47395