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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PowerGrid International: ISSN 1547-6723,
is published 12 times per year (January,
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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
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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
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ONLINE/ASSOCIATE EDITORJeff Postelwait
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PRESENTATION EDITORDeanna Taylor
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fax +44.1992.656700
CHAIRMANFrank Lauinger
PRESIDENT/CEORobert F. Biolchini
SENIOR VICE PRESIDENT, FINANCE& ADMINISTRATION (CFO)
Mark C. Wilmoth
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http://pennwell.com
POWER-GRID.COM
Get daily news and up-to-date industry
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__________________
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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
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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.
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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.
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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
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DEADL INE TO SUBMIT YOUR PRESENTAT ION: MONDAY, JUNE 13, 2 011.
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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