Smart Grid Fundamentals and Benefits - WADE THAI · Smart Grid/DE is a winSmart Grid/DE is a win--win for the power sector;win for the power sector; DE combined with Smart Grid has

Smart Grid Fundamentals Smart Grid Fundamentals Smart Grid Fundamentals Smart Grid Fundamentals and Benefits and Benefits and Benefits and Benefits

International Conference & Utility ExhibitionInternational Conference & Utility ExhibitionPattaya, Thailand Sept. 29, 2010Pattaya, Thailand Sept. 29, 2010

Sridhar Samudrala Sridhar Samudrala Asia Asia DirectorDirectorSridhar Samudrala Sridhar Samudrala –– Asia Asia -- DirectorDirectorWorld Alliance for Decentralized Energy (WADE)World Alliance for Decentralized Energy (WADE)

Edinburgh, Washington, Canada, China, India, ThailandEdinburgh, Washington, Canada, China, India, Thailand

DE DE -- Share of Share of National Power GenerationNational Power Generation

World Average is 9% - Where are you?

50

60

30

40

10

20

0

Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2010).

Why Smart Grid Why Smart Grid --yyCogeneration/TrigenerationCogeneration/Trigeneration

Energy Cost Energy costs can be a high proportion of the d i i d i product cost in many industries.

Cogeneration/trigeneration can reduce the energy costs by up to 40%.y p

Security of Supply Cogeneration/trigeneration can increase the reliability of power supply Production processes reliability of power supply. Production processes need to avoid unscheduled shutdown.

Environmental Protection The high overall thermal efficiency of cogeneration/ trigeneration minimizes the production of carbon dioxide Other exhaust production of carbon dioxide. Other exhaust emissions can be controlled by the use of low emission combustion technology.

Flexiability of Operatoins Optimize your operation, dependent on fuel and electricity prices, factory power and heat load.

Trigeneration SystemTrigeneration SystemTrigeneration SystemTrigeneration SystemChilled Water for Overall Plant Efficiency >80%

Natural Gas

Process (15 C)

Absorption ChillerAbsorption Chiller

Steam 10 Tonnes/hr

Gas Turbine

Heat Recovery Boiler

Hot water for Process

Heat ExchangerElectricity for Captive use 3,500 kW

Specific CO2 emissions in g/kWhe

Coal firedcond plant

DE - Diesel engineGE - Gas Engine

DE HFO

gGT - Gas TurbineNG - Natural GasCHP - Combined Heat and Power

GT - NGsimple cycle

DE -HFO CHP Combined Heat and PowerLBF - Liquid Bio Fuel

GE - NGGT-NG

CC

GE - NG

DE -LBF

GE NGCHP800 g/kWhe 450 g/kWhe 370 g/kWhe550 g/kWhe600 g/kWe

DE LBFCC

0 g/kWhe220 g/kWhe

Increased Efficiency Results in Increased Efficiency Results in yyReduced Carbon EmissionsReduced Carbon Emissions

Source: ICFSource: ICFSource: ICFSource: ICF

SMART GRID: The next big innovationg

Efficient GridEfficient Grid The Electric Power Research Institute (EPRI) has estimated the cost of building a

S G id $165 billi h d d i l $8 billi ( ) g

Smart Grid at over $165 billion over the next two decades – approximately $8 billion per year

Global Electricity Sector Investment over next 3 decades i.e, 2020-30Global Electricity Sector Investment over next 3 decades i.e, 2020 30 US $ 10 Trillion: 60% of total energy investment Three(3) times higher than investment in the electricity sector during past 30 years

"We're sitting on an aged, old infrastructure while emerging countries like India and China are moving to the next generation of networks and generation sources." --Brad Gammons, vice president, IBM global energy and utilities industry group

US $ 5.5 Trillion on T&D -- Approximately 30% on Transmission and rest to Distribution (smart Grid)

Pl d d d d l t f t t i U it d St t Planned and proposed deployments of smart meters in United States 150+ million meters by 2020 45% of U.S. households 45% of U.S. households

Smart Grid’s Building Blocks

Advanced Metering Advanced Metering ---- Smart Meters (single phase and polySmart Meters (single phase and poly--phase meters), 2phase meters), 2--way way communications, interface to enterprise applications communications, interface to enterprise applications

Transmission/Distribution Automation Transmission/Distribution Automation ---- FFault Detection, Isolation, Restoration, ault Detection, Isolation, Restoration, Integrated Volt/VAR management, including switch/cap controllers, switched Integrated Volt/VAR management, including switch/cap controllers, switched

i & l li & l lcapacitors & voltage regulatorcapacitors & voltage regulator

Substation Automation Substation Automation ---- Substation controller and transformer monitoring and Substation controller and transformer monitoring and di tidi tidiagnosticsdiagnostics

Distribution Operations Distribution Operations ---- Demand Side Management and Outage Management Demand Side Management and Outage Management ft & i t f t i ti li ti d t l t ti i tift & i t f t i ti li ti d t l t ti i tisoftware & interface to existing applications, and control center optimizationsoftware & interface to existing applications, and control center optimization

Utility Enterprise Applications Utility Enterprise Applications ---- Electric, Gas & Telecommunications utility Electric, Gas & Telecommunications utility geospatial based applications Demand Side Management application and advancedgeospatial based applications Demand Side Management application and advancedgeospatial based applications, Demand Side Management application, and advanced geospatial based applications, Demand Side Management application, and advanced analytics & visualizationanalytics & visualization

Customer sector Smart metering Critical Peak Pricing smart energy management Customer sector - Smart metering, Critical Peak Pricing, smart energy management customers

Smart Grid Smart Grid DefinitionsDefinitionsSmart Grid Smart Grid -- DefinitionsDefinitions Smart Grid Smart Grid -- umbrella term umbrella term -- combination of technologies, combination of technologies,

approaches, and processes. approaches, and processes. Informed, involved, and active Informed, involved, and active pp ppp pconsumers consumers -- demand response and distributed energy resources.demand response and distributed energy resources.

"Many distributed energy resources with plug"Many distributed energy resources with plug--andand--play convenience play convenience y gy p gy gy p g p yp yfocus on renewable”.focus on renewable”.

"Mature well"Mature well--integrated wholesale markets growth of new electricityintegrated wholesale markets growth of new electricityMature, wellMature, well integrated wholesale markets, growth of new electricity integrated wholesale markets, growth of new electricity markets for consumers”. "Power quality is a priority with a variety of markets for consumers”. "Power quality is a priority with a variety of quality/price options quality/price options -- rapid resolution of issues”rapid resolution of issues”

"Greatly expanded data acquisition of grid parameters "Greatly expanded data acquisition of grid parameters -- focus on focus on prevention, minimizing impact to consumers”prevention, minimizing impact to consumers”

"Automatically detects and responds to problems "Automatically detects and responds to problems -- focus on prevention, focus on prevention, minimizing impact to consumer”minimizing impact to consumer”g pg p

Existing GridExisting GridExisting GridExisting Grid

Centralized Main Grid

Only 1/3 of fuel energy converted to Transmission System

Central Generation

Only 1/3 of fuel energy converted to electricity

Waste heat is not recovered (over Substations

Transmission System

Waste heat is not recovered (over 50-60% lost)

Generation - Up to 20% gen Distribution Networkp gcapacity exists to meet peak demand only (i.e. 5% of time)

Customer Loads

Transmission - Up to 8% is lost along transmission lines

Di t ib ti t 45% l i

L1 L2

LmLn

L1 L2

LL

L1 L2

LmLn

L1 L2

LL Distribution – up to 45% losses in developing countries (Africa-Asia)

LmLn LmLn

Today’s GridToday’s Gridyy

Future GridFuture GridFuture GridFuture Grid

Customer D iDomain

Comparison of Comparison of ppExisting and Future GridsExisting and Future Grids

TraitsExisting Transmission and Distribution System Future Smart/Intelligent Grid SystemsTraits Distribution System Future Smart/Intelligent Grid Systems

Loss R d ti

Limited ability to address problem of high transmission and distribution losses.

Prevents disruptions, minimizes impact, more customer participation - better energy management and energy

Reduction Limited control for distribution companies accounting, leakage can be detected quickly and prevented

Peak Reduction

Reactive approach - Utilities tend to purchase costly power during peak hours Grid technology enable utilities to reduce purchase of costly

power and maintain grid disciplineReduction power and maintain grid discipline

Integration of DG Grids designed for one way flow -- Clients

who have capacity to inject power into grid Allows individuals to generate onsite power and feed into grid without raising reverse flow reliability and safety issues. Best

are limited by utilities and regulations for DG and renewableReliability of Supply Post breakdown repair Self healing. Power quality a priority

Consumer Benefits

Little customer participation - due to price visibility and difficulty of determining price Customers can optimize the monthly bill

i G id d ffi i f il bl l illRural Outreach

Still an issue -- high cost for placing transmission and distribution lines

Micro Grids and efficient use of available power supply will pave the way for increasing rural outreach without large investment in T&D

Quality of

Smart Grid benefits by Smart Grid benefits by StakeholderStakeholder

Government & Regulators• Opportunity for GDP Uplift & green‐job creation

Utilities•Wider portfolio of investment options

• Effective carbon abatement investment option•Creation of low‐carbon regulatory frameworks accelerated

• Grid efficiency, reliability & Understanding of power flows increased enabling operational/maintenance savings 

• Spending efficiency increased by providing options to rationalize national infrastructure investments

• Opportunity to transition from commodity provider to service provide• opportunity to evolve the operating model and lower operating costslower operating costs

Vendor• opportunity to collaborate with other participants 

Consumers•Greater choice between energy providers, 

in the value chain to gain market access•Opportunity to create new services & products to take to market

b l d d f

products and servicesGreater transparency and control over energy efficiency 

l b f• ability to improve understanding of consumer behaviour• opportunity for machine‐to‐machine platform that can service multiple industries

• opportunity to see environmental benefits on a household/business benefits• access to clean technologies, such as micro‐generation and electric vehiclescan service multiple industries  generation and electric vehicles• provision of more reliable  service with potential carbon savings 

Cost & SavingsCost & SavingsCost & SavingsCost & Savings Saving up to Saving up to 1515% % -- mostly from distribution losses. Save $mostly from distribution losses. Save $500 500 billion in investments billion in investments

in the next in the next 20 20 years by offsetting construction of new infrastructure that would years by offsetting construction of new infrastructure that would th i b d d t t l d th i A i NEGA WATTSth i b d d t t l d th i A i NEGA WATTSotherwise be needed to meet load growth in Asia. NEGA WATTSotherwise be needed to meet load growth in Asia. NEGA WATTS

New technology (AM) automatically lower the settings on home appliances, New technology (AM) automatically lower the settings on home appliances, triggered by signals sent by utility companies over the Grid ”consumers are willing triggered by signals sent by utility companies over the Grid ”consumers are willing triggered by signals sent by utility companies over the Grid. consumers are willing triggered by signals sent by utility companies over the Grid. consumers are willing to have utilities remotely dial down the appliances to lessen the load on the grid and to have utilities remotely dial down the appliances to lessen the load on the grid and reduce consumption. reduce consumption.

Remote gateway device use Remote gateway device use -- powered by systems integration softwarepowered by systems integration software-- enable enable energy companies and customer homes to communicate with one another. The energy companies and customer homes to communicate with one another. The device relies on broadband Internet connection to receive pricing information from device relies on broadband Internet connection to receive pricing information from the utility which is transmitted wirelessly to a smart meterthe utility which is transmitted wirelessly to a smart meterthe utility, which is transmitted wirelessly to a smart meter.the utility, which is transmitted wirelessly to a smart meter.

One impediment to widespread Smart Grid usage is cost. To implement the One impediment to widespread Smart Grid usage is cost. To implement the technology in a single home can cost a utility company between $technology in a single home can cost a utility company between $500 500 and $and $11,,000 000 in in technology in a single home can cost a utility company between $technology in a single home can cost a utility company between $500 500 and $and $11,,000 000 in in USA. Will Customers Pay??? USA. Will Customers Pay???

Clean power sources such as wind and solar still technical challenges Clean power sources such as wind and solar still technical challenges ---- can be better can be better p gp gincorporated with upgraded equipment.incorporated with upgraded equipment.

Barriers & ChallengesBarriers & ChallengesBarriers & ChallengesBarriers & Challenges

Regulatory restrictions in the implementation of energy plants in commercial complexes and buildings based on zoning

Tariff setting does not reflect the cost of fuel, No standardization of DE, Net metering and Connection chargesg g

Difficulties in funding (investors and lenders) the projects Difficulties in getting public acceptancecu es ge g pub c accep a ce Lack of centralised organisation providing

coordination, information, training or services, , g Lack of awareness and knowledge on climate change issues

SUMMARY SUMMARY -- Strategies to make a smarter Strategies to make a smarter gggrids an attainable goalgrids an attainable goal

Smart Grid/DE is a winSmart Grid/DE is a win--win for the power sector;win for the power sector;

DE combined with Smart Grid has great potential to reduce CODE combined with Smart Grid has great potential to reduce CO22 emissions emissions and reduce overall costs of supplying power;and reduce overall costs of supplying power;

DE/Smart Grid can provide energy access for those in rural areas and DE/Smart Grid can provide energy access for those in rural areas and developing countries;developing countries;

New fuels like Hydrogen will play a major role;New fuels like Hydrogen will play a major role;

Develop New Regional Transmission Plans to Bring Renewable Power to Develop New Regional Transmission Plans to Bring Renewable Power to Market;Market;

Create New Incentives for Investments in Smart Grid Technologies; Create New Incentives for Investments in Smart Grid Technologies;

Smart/Intelligent Grid is the Smart/Intelligent Grid is the ggLocal/Global Solution!Local/Global Solution!

THANK YOU THANK YOU THANK YOU THANK YOU

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NAMASKARNAMASKARNAMASKARNAMASKARssamudrala@[email protected]