Smart Grid is...The Evolution to the Smart Grid Philip Bane Managing Editor Smart Grid News

Copyright Global Smart Energy 2008

Smart Grid isSmart Grid is

Real-time Simulation and Contingency AnalysisReal-time Simulation and Contingency Analysis

Distributed Generation and Alternate Energy SourcesDistributed Generation and Alternate Energy Sources

Self-Healing Wide-Area Protection and IslandingSelf-Healing Wide-Area Protection and Islanding

Asset Management and On-Line Equipment MonitoringAsset Management and On-Line Equipment Monitoring

Demand Response and Real-time PricingDemand Response and Real-time Pricing

Participation in Energy MarketsParticipation in Energy Markets

Shared Information – Continuously Optimizing – Intelligent Responses!Compilation of GSE & EnerNex Concepts

The Evolution to the Smart GridPhilip Bane

Managing EditorSmart Grid News


GlobalSmartEnergyGlobalSmartEnergy

Research consultancy• “Where’s the money?”

Clients• Agencies, labs, states, provinces• Investors, Fortune 50, startups

Products• Smart Grid Newsletter

• www.smartgridnews.com• Research• Consulting• Future:

• Smart Grid International• Smart Grid Globe• Smart Carbon News


Agenda – Evolution to the Smart Grid

Agenda – Evolution to the Smart Grid

The Problem The Goal Forces at Work Getting There

• Smart Metering

Opportunity Caveat –

• North American orientation• Not an engineer

The Evolution to the Smart GridPart 1: The Problem


Demand Projected To Increase 30% by 2030Demand Projected To Increase 30% by 2030

Sources: U.S. Department of Energy, Energy Information Administration, Annual Energy Review 2006and Annual Energy Outlook 2008 Early Release*Electricity demand projections based on expected growth between 2006-2030

Billo

n kil

oWat

thou

rs

Courtesy: EEI


Worldwide Electricity Demand Growth

Worldwide Electricity Demand Growth

Source: Energy Information Administration, International Energy Outlook 2006

Net Electricity Consumption

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2003 2015 2030

(Bill

ion

kilo

Wat

thou

rs)

U.S. China OECD Europe India

USA

CHINA

Courtesy: EEI

Copyright Global Smart Energy 2008 8

Reliability Margins Projected to Fall Below Minimum Target Levels

Reliability Margins Projected to Fall Below Minimum Target Levels

TRE (ERCOT)2009/2016+

New England 2009/2009

RFC (MISO)*2008/2008

AZ/NM/SNV2009/2011

California2009/2012

Rocky Mtn2008/2011

SPP2015/2016+

MRO2009/2009

(US)

New York2011/2016+

RFC (PJM)2012/2014

*Excludes MISOresources outside the RFC boundary

Source: NERC 2007 Long Term Reliability Assessment

Courtesy: EEI


Can We Meet Tomorrow’s Demand?Can We Meet Tomorrow’s Demand?

Source: GF Energy 2007 Electricity Outlook Entering the Climate Zone June 18, 2007

CEO Perspective

47% NOT confident

Courtesy: EEI


Coal Plant Cancellations / Closings2006 - 2007

Coal Plant Cancellations / Closings2006 - 2007

Source: NRDC: The Growing Trend Against Coal-Fired Power PlantsCourtesy: EEI


Reasons for CancellationsReasons for Cancellations Uncertainty

• Cost of future CO2 emission requirements• Changing attitudes among policy makers and consumers

Risk• Rapidly rising construction costs• New emphasis on renewables, energy efficiency and demand

response

Bottom line a “Dash to gas!”Courtesy: EEI


Fuel Costs Increasing DramaticallyFuel Costs Increasing DramaticallyFuel Costs Increasing Dramatically

Source: U.S. DOE/EIA Electric Power Monthly, March 2008 ReleaseTable 4.1-based on $/MMBtu Delivered Cost

1999 – November 2007Courtesy: EEI


Source: NERC Transmission Loading Relief Procedure Logs

Transmission Congestion Dramatically Increasing

Leve

l 2 o

r hig

her T

LRs

Requests for transmission loading relief (TLRs) in the Eastern Interconnection

2007

20012001

20032003

20052005

Courtesy: EEI


Raw Materials Price IndexesRaw Materials Price Indexes

Coppe

r 400

%20

03-6

Courtesy: EEI


Equipment Price Increases 2002-2006

Equipment Price Increases 2002Equipment Price Increases 2002--20062006

Courtesy: EEI


source

Aging Workforce(Typical Utility)

Aging Workforce(Typical Utility)

Source: KEMA

Courtesy: EEI


The World's Growing Use of Electrical Devices

The World's Growing Use of Electrical Devices

3,151,43955,8520Electric hybrid vehicles worldwide

5B0.8B0Cell phones US

6B to 8B500M to 1B 0PCs

1.9B1.4B0.6BTVs

33.7%25.3%10.4%Electricity as % of total energy

6.99 TW3.80 TW2.06 TW

Electricity usage

8.29B6.22B2.56BWorld Population

205020001950Category


TelevisionSatellite RadioHome StereoRefrigerationHair DryersDishwashersAir ConditioningHome SecurityHome TheaterVideo GamesBroadband InternetWi-Fi NetworksDigital CamerasPortable Players

TelevisionSatellite RadioHome StereoRefrigerationHair DryersDishwashersAir ConditioningHome SecurityHome TheaterVideo GamesInternetWi-Fi Networks

TelevisionRadioHome StereoRefrigerationHair DryersDishwashersAir Conditioning

TelevisionRadioRecord PlayerRefrigeration

Home

LightsAir ConditioningDiagnosticsPatient TVsMonitoring GearPhysician ComputersElectronic recordsTele-medicine

LightsAir ConditioningDiagnosticsPatient TVsMonitoring gearPhysician Computers

LightsAir ConditioningDiagnosticsPatient TVs

LightsHealth Care

LightsAir ConditioningMainframesElectronic transfersATMsOnline TradingOnline BankingData CentersElectronic Exchanges

LightsAir ConditioningMainframesElectronic transfersATMsOnline TradingOnline BankingData Centers

LightsAir ConditioningMainframesElectronic Transfers

LightsFinance

Air ConditioningPersonal ComputersLaser PrintersComputer NetworksCell PhonesData CentersIntegrated Supply Chain

Air ConditioningPersonal ComputersLaser PrintersComputer NetworksCell PhonesData Centers

LightsAir ConditioningMainframes

LightsBusiness

LightsRefrigerationAir ConditioningCash RegistersCard ProcessingScannersRFID

LightsRefrigerationAir ConditioningCash RegistersCard ProcessingScanners

LightsRefrigerationAir ConditioningCash Registers

LightsRefrigeration

Retail

LightsMotorsProcess ControlRobotic ManufacturingElectronic "Vision"

LightsMotorsProcess Control

LightsMotors

LightsMotors

Industry

2010s1990s1970s1950sSector


Implications of Electricity AddictionImplications of Electricity Addiction

Electric economy• What happens when the

lights go out?

Will we accept pollution?• Unsafe, dirty, expensive,

does not work scenario

National security• South Africa

• Closing mines• China

• Factories without electricity• Los Angeles

• 2 weeks -- $20B lossSource: American Power Conversion

$6,480,000Brokerage Operations

$2,580,000Credit Card Operations

$2,000,000Semiconductor Manufacturing

$90,000Airline Reservations

$72,000Telephone Ticket Sales

$41,000Cellular Communications

NA Hourly Downtime Cost


The current US gridThe current US grid

“The most complex machine on earth”

160,000 miles of high-voltage lines• $120B value

Millions of miles of medium-voltage distribution lines• 4,500 large substations valued at $140B

Fragmented• 3,170 utilities• 130 control areas• 125M customers who pay

nearly $300B per year

ArgonneNationalLaboratory



China Transmission GridChina Transmission Grid


China’s CO2 Emissions Surpass U.S. in 2007*

China’s CO2 Emissions Surpass U.S. in 2007*

* Based on projected data from the International Energy Agency, November 2007.

Courtesy: EEI


Infrastructure is old and obsolete• Old – e.g. 50-year-old transformers• Obsolete – electromechanical geared

designed before era of microprocessors

Deferred maintenance• 30+ years of neglect now coming due

Used in ways for which it was not designed• Bulk power shipments up several

orders of magnitude• Renewable mandates in 28 states• Recent Berkeley Lab report states that

western utilities are over-relying on grid to move renewable power in bulk

North American Grid Market DriversNorth American Grid Market Drivers

Running today's digital society through yesterday's grid is like running the Internet through an old telephone switchboard.

Reid Detchon, Energy Future Coalition


The grid has not seen the benefit of R&DThe grid has not seen the benefit of R&D

Less R&D than almost any industry• 0.2% of net revenues• 1/20th the average of all

U.S.industries

The Evolution to the Smart GridPart 2: The Goal


Edison Electric Institute Conclusions

Edison Electric Institute Edison Electric Institute ConclusionsConclusions

Supply margins are declining and demand is increasing• Need significant infrastructure investment but costs increasing

rapidly

No longer a declining cost industry• Need significant outreach to explain the reasons for increasing cost

Increasing concerns about the environment• Need to accelerate development and deployment of new technologies

Energy efficiency is viable option• Need to create regulatory climate for making EE a sustainable

business

Smart Grid holds potential for meeting the needs of utilities and consumers


Characteristics of the Modern Grid


It will “Motivate and include the consumer”

Well informed and active grid participants Provide new options for grid operators Customers see what they use, when they use

it, and what it costs Consumer options…options….options Different products and prices for different

consumers• According to their preferences• According to their needs• According to their willingness to participate

Involving the consumer is win – win!




It will “Accommodate all generation and storage options”

Seamlessly integrates all types and sizes of electrical generation and storage systems

Simplified interconnection process analogous to “plug-and-play”

Large central power plants including environmentally-friendly sources such as wind and solar farms and advanced nuclear plants will continue to play a major role

Number of smaller, decentralized sources will increase




It will “Enable markets” No constraints to shipping power among regions Consistent market operation from coast-to-coast Growth of selected, competitive retail markets Aggregated demand response involving the consumer Energy resources located closer to the consumer Growth of “electricity related” markets

Markets motivate behavior and get results!ArgonneNationalLaboratory





It will “Provide power quality for 21st

century needs” Power quality standards will balance load

sensitivity with delivered power quality at a reasonable price• Suitable for computers and electronics• Addresses sags, spikes, harmonics and momentary

interruptions

Varying grades of power quality at different pricing levels

Solutions at both system and consumer levelVoltage dips that last less than 100 milliseconds can have the same effect on an industrial process as an outage that lasts several minutes or more

Primen, 2002




It will “Optimize assets and operate efficiently”

Improved load factors and lower system losses More power through existing systems The knowledge to build only what we need Tools for efficient, optimized designs Intelligent monitoring and diagnostics Computer-aided asset management, workflow

management, outage management Condition Based Maintenance

Convergence of operating information with asset management processes will dramatically improve grid efficiency




It will “Self Heal” Performs continuous self-assessments Detects, analyzes, responds to, and restores

grid components or network sections Handles problems too large or too fast-moving

for human intervention Acts as the grid’s “immune system” Supports grid reliability, security, and power

quality

The blackout of August 2003 took hours to build up. Once it breached the original service territory, it took 9 seconds to blackout 50M people.

PNNL, June 2006




It will “Resist attack”

Physical and cyber security built in from the ground up

Reduces threat, vulnerability, consequences Deters, detects, mitigates, responds, and restores Less vulnerable to natural disasters Energy security has become national security

The lack of a concerted, deliberate technical approach risks serious consequences from security threats to the power delivery system infrastructure.

Erich Gunther, Power & Energy Continuity, 2002


The Grid - Today vs. TomorrowThe Grid - Today vs. Tomorrow

Full price info, time-of-use pricing, choose from many plans and prices

No price visibility, time-of-day pricing rare, few choices

Motivates/Includes Consumer

Many “plug and play”distributed energy resources complement central generation

Dominated by central generation. Little DG, DR, storage or renewables.

Accommodates Generation/Storage

PQ a priority with a variety of quality/price options according to needs

Mature, robust, well-integrated wholesale markets

Tomorrow

Focus on outages not power qualityMeets PQ Needs

Limited wholesale markets, not well integrated

Today

Enables Markets

Characteristic


The Grid - Today vs. TomorrowThe Grid - Today vs. Tomorrow

Deep integration of grid intelligence with asset management software

Little integration with asset managementOptimizes

Resilient with rapid restoration

Prevents disruptions, minimizes impact

Tomorrow

Vulnerable to terrorists and natural disasters

Protects assets following disruption (e.g. trip relay)

Today

Resists Attack

Self Heals

Characteristic

The Evolution to the Smart GridPart 3: Forces at Work


Setting the stage: Market Forces Setting the stage: Market Forces

What if...• ... demand grew 50% in 20 years?• ... 50% of skilled workers retired in 10 years?• ... carbon constraints became severe?• ... fuel costs kept going up?• ... power quality demands got much higher?• ... renewables were mandated all over the country?• ... reliability rules became more stringent?

Would you...• ... build 50% more power plants... hire 50% more

workers... build 50% more power lines... raise rates over and over again?

What if they all came true... all at once


Evolutionary Forces Evolutionary Forces

Intelligence to the edges Passive to transactive Customized to standards-based Vertical to horizontal Permanent whitewater Externals becoming internals


Intelligence to the Edges Intelligence to the Edges

CentralizedMainframe computersIntelligence in the middle

DistributedClient-serverIntelligence migrates out

True networkInternetIntelligence everywhere


Passive to TransactivePassive to Transactive

Passive Active Interactive Transactive

Transaction Broadly Defined:Negotiation

DecisionExchange


MediaMedia

Print TV Internet EmbeddedCommerce


Electric PowerElectric Power

One-Way Monitored DR, DG,V2G, etc.

Real-TimeMarket

“Prices to Devices”


Customized to standards-basedCustomized to standards-based

High-tech markets start out in chaos, with multiple approaches and technologies

Evolution of standards• DOS to Windows• HTML Ver 1• Light socket

Utilities now realize that standards... ... give them more power over vendors (since

they can freely mix and match products) ... increase their choices (since they can

choose from a wide range of plug-and-play options)

... decrease their costs (since competition lowers prices)


High-tech industries are in constant flux, with new innovations making last year’s favorites obsolete

Example –• Yesterday (2007) --Advanced meters• Today (2008) No

Permanent whitewater


Externals becoming internalsExternals becoming internals

Cost of Electricity

Carbon

Safety (nuclear)

Transmission Congestion

Reliablity

Adds $190B to NA Utility Cap Ex Over Next 20

Years*

*The Brattle Group‘Transforming America’s Power Industry: The Investment Challenge

Water treatment / discharge

The Evolution to the Smart GridPart 4: Getting There


VisionVision

Electric grid evolves

• Ubiquitous communications backbone

• Operational technologies

• Information technologies


Utility of TodayUtility of Today

Electro-Mechanical

Heavy use of old radio technology

Few sensors

Limited automation


Utility of the FutureUtility of the Future

Digital

Advanced communication

Self healing

Lots of sensors

Automated control

Smart Meters


‘07 ‘08 ‘09 ’10 ’11 ’12 ’13 ’14 ’15 ‘16

Field Force InitiativesSupervisor EnablementForecasting & SchedulingDispatching & MobileWork ManagementElectronic Design

Customer Care InitiativesOperation Insight Analytics ICE Infrastructure & ChannelICE Self ServiceCare Rep of the FutureSingle View of the Customer

Asset Mgmt InitiativesAsset Investment SupportGIS PlatformGIS Data ConversionOMS / DMSCondition Based Maintenance

Required by virtually every initiative

Future flexibility

Scalable platform

Enterprise solutions

Timing is JIT based on Field Force (and Smart Grid)

Mobile workforce

Sensors on assets

Customer adoption

Cost-to-serve Customer

convenience

Can be done now – but needs GIS down stream

O&M costs Workforce

demographics

Field and Smart Grid require GIS

Capital efficiency

Reliability

Drivers Dependencies

Network InfrastructureWANMobile

IT InfrastructureSOAEncryption & AuthenticationIdentity & Access MgtEnterprise Info. Analytics

Integrated TimelineCourtesy SDG&E

Integrated TimelineCourtesy SDG&E

Smart MeterPlanBuildDeploy


AMI TechnologiesAMI Technologies

Smart Meters Two-way Communications Consumer Portal Home Area Network Meter Data Management Demand Response Customer Service Applications Operational Gateway Applications

AMI empowers the customer and supports grid operations


ADO Technologies and ApplicationsADO Technologies and Applications Distribution Management System with advanced

sensors Advanced Outage Management (“real-time”) DER Operations Distribution Automation Distribution Geographic Information System Micro-grid operations (AC and DC) Hi-speed information processing Advanced protection and control Advanced grid components for distribution

The functionality of ADO enables “Self Healing”


ATO Technologies and ApplicationsATO Technologies and Applications

Substation Automation Geographical Information System for Transmission Wide Area Measurement System (WAMS) Hi-speed information processing Advanced protection and control Modeling, simulation and visualization tools Advanced grid components for transmission Advanced regional operational applications

Deeply integrated with AMI, ADO and AAM – ATO optimizes transmission operations


AAM Technologies and ApplicationsAAM Technologies and Applications

Advanced sensors• System Parameters• Asset “health”

Integration of real time information with other processes:• Operations to optimize asset utilization• T&D planning • Condition based maintenance• Engineering design and construction • Customer service• Work and resource management• Modeling and simulation

Integration of AMI, ADO, and ATO with asset management processes will dramatically improve grid operations and efficiency


Address AMI BarriersAddress AMI Barriers

“Time based” rate design not yet implemented• Consumers do not see market and/or time-based prices for

energy. Lack of a focused consumer education plan

• The AMI concept and its benefits have not been effectively communicated.

• Clarity on the “end state” is lacking – the opportunities created by AMI that lead us to a Smart Grid are not well understood by stakeholders.

Lack of Incentives• Financial and policy incentives might engage stakeholders

to move forward. Standards

• Agreement is needed on communication standards to facilitate exchange of information among applications and users.

Fear of stranded investments• New technologies need to be “future proofed”.

55


Address ADO BarriersAddress ADO Barriers

Cost recovery for technologically obsolete assets• Regulations are needed to allow early retirement of

assets that do not support the Modern Grid vision Limited deployment of supporting technologies

• Integrated, hi-speed, two-way communications system• Hi-speed computing systems needed for analyzing large

volumes of data Distributed system behavior is not well understood

• Further study is needed to understand how various distribution systems interact when DER are broadly deployed (particularly their behavior during upset conditions).

Lack of Incentives• Financial and policy incentives are needed that motivate

utilities to invest in ADO technologies for the benefit of consumers and society

Universal interoperability• Agreement is needed on communication standards to

ensure interoperability among distribution assets 56


Address ATO BarriersAddress ATO Barriers

Inconsistent policies among states and federal regulators prevent effective collaboration across a national footprint

Regulations that support integrated electricity markets are needed

The not in my backyard (NIMBY) philosophy creates excessive delays in deploying needed upgrades to the grid• Solutions are needed to reduce the concerns of citizens

who object to the placement of new facilities near their homes and cities

Industry engineering staffs are reluctant to change traditions and standards• Utility planning and design traditions and standards

generally focus on the traditional model of the electric grid – centralized generation, legacy technologies, with little reliance on distribution assets and the consumer as active resources


Address AAM BarriersAddress AAM Barriers

The integration of multiple key technologies has not yet occurred• The deployment and integration of advanced sensors,

integrated communication systems, and advanced algorithms, including supercomputers, is needed to support the processing and analysis needed for advanced asset management.

Industry executives are reluctant to change processes and technologies• Some utility cultures are resistant to change and operate in

“silos” organizationally. As a result, changes to processes and technologies needed to improve asset management are difficult to initiate.

Human and financial resources at many utilities are limited and stressed• The amount of resources available to look beyond day-to-

day operations is limited


Regulatory BarriersRegulatory Barriers

Existing regulations in some states are barriers to modernization

Current rate designs do not provide an incentive for consumers to become actively involved – time based rates are needed.

Many of the grid assets are not compatible with modern grid technologies and must be replaced even though they are not at the end of their functional lives – more favorable depreciation rules are needed.

Utility revenues are based on sales of KWh. Grid modernization may result in a reduction of KWh sales to utilities – policy changes are needed to give utilities an incentive to invest in grid modernization.

Uncertain cost recovery for investment in grid modernization is preventing a deeper deployment of new technologies – clear cost recovery policies are needed.


Milestone SequenceMilestone Sequence

AMI and DR

ATO addresses congestion

AAM greatly improves the performance of today’s asset management programs

AMI empowers the customer and establishes communications to the loads

ADO enables self healingDistribution (ADO)

Transmission (ATO)

Asset Management (AAM)


SA

Congestion Management

Transmission S&M, Comm

ATO

ISO

EMS

Transmission SCADA

Transmission GIS

Distribution AAM

Maintenance

Planning

Design/ Build

Asset Utilization

Transmission AAM

AMI

Consumer HAN

MDMS

DR

Time-based Rates

AMR

Distribution SCADA

Distribution S&M, Comm

ADO

DER Operation

DA

OMS

Distribution GIS

Records

The “Big Picture”The “Big Picture”


Metrics Metrics

Reliability Outage duration and frequency Momentary outages Power Quality

Security Ratio of distributed generation to

total generation Consumers participating in energy

markets

Economics Peak and average energy prices

by region Transmission congestion costs Cost of interruptions and power

quality disturbances Total cost of delivered energy

Efficient System electrical losses Peak-to-average load ratio Duration congested transmission

lines loaded >90%

Environmentally Friendly Ratio of renewable generation to

total generation Emissions per kilowatt-hour

delivered

Safety Injuries and deaths to workers

and public

The Evolution to the Smart GridPart 4: Smart Grid Opportunity


Smart Grid Beyond the Tipping PointSmart Grid Beyond the Tipping Point

Global - 20 years - $4T+ • North America - $800B • Europe - $750B• China - $1.5T• Africa -- $500B

Electric grid is NOT about energy It is about IT – digital devices,

networks & data• Use of PKI certificates for IED (smart device) / Certicom• Policies applied to IED / GridNet

It is about new business models


Utilities Worldwide Total IT Spending (Source: Gartner/Dec 2007)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2005 2006 2007 2008 2009 2010

Year

$million

Hardware

Internal Services

IT Services

Software

Telecommunications

Total

5 Yr Global Utility Spend on IT >$140B5 Yr Global Utility Spend on IT >$140B


Estimated Cost of Developing and Deploying Advanced Transmission Technologies thru 2024

(Source: EPRI – Power Delivery System of Future / Preliminary Estimate of Cost and Benefits / 2004)

$72BDigital Devices

$110Total Cost ($billion)

$37BIT

$15001Power delivery system planning tools

$11,0000.5Dynamic thermal circuit rating

$11,0001Probabilistic vulnerability assessment

$11,0001Faster than real-time simulation tools

$1010,0001Emergency restoration equipment/tools

$220,0000.1Emergency operation controllers, relays, & tools

$630020Energy storage shock absorbers

$1020050Power electronics controllers, current limiters, & circuit breakers

$10100100Higher voltage lines/substations

$30200150High current/superconducting wires & cables

$550,0000.1Self diagnostic transformers & other substation equipment

$2020,0001Reliability centered/predictive maintenance

$4400,0000.01Sensors/monitors & communication systems

$1010,0001Automation of transmission/substation systems

Cost ($billion)Number of Units

Development and Deployment Avg.

Cost/Unit ($million)

Transmission Technology CategoryRed Font = IT Oriented ServicesGreen = Digital Devices


North American Spend on Digitization of Distribution

North American Spend on Digitization of Distribution

Transmission IT -- $37B Digital Devices -- $72B

Distribution IT -- $150+B Digital Devices -- $280B


Danish Power System TransformationDanish Power System Transformation


A Major Market OpportunityA Major Market Opportunity Capital migrating to energy tech

• Grid Point / Current Group / EKA Systems US IPOs – Comverge, EnerNoc, Iberdrola – largest renewable IPO

$63.3bn

$48.9bn

$30.1bn

2004 2005 2006

62% Growth

30% Growth

Source: New Energy Finance

Global Investment in Clean Energy2004 - 2006


Electric Energy Horizon –Nine OpportunitiesElectric Energy Horizon –Nine Opportunities

Demand as Full Partner – ‘fifth fuel’

Real-Time Command & Control – ‘months to seconds’

Grid-Smart Devices – ‘prices to devices’

Smart Portal – ‘energy dashboards’

Smart Customers – ‘user control’

Smart Distribution – ‘beyond the meter’

Smart – Rich Utilities -- ‘next Google’

Beyond the Utility


Demand as Full Partner – ‘fifth fuel’Demand as Full Partner – ‘fifth fuel’

Regulators beginning to demand it Showing up in utility resource

plans Smart Grid example: ERCOT load

loss, February 27, 2008. Companies: EnerNoc, Comverge


Real-Time Command & Control – ‘months to seconds’Real-Time Command & Control – ‘months to seconds’

Wide-area monitoring and control• Phasor-grade data• From minutes to seconds

Near real-time visualization and simulation• Predictive control

Situational awareness• Look-ahead capabilities• Visibility into adjacent control areas

Self-healing and adaptive networks Smart Grid Example: improving outage

response Companies: Areva, Lockheed Martin


Grid-Smart Devices – ‘prices to devices’Grid-Smart Devices – ‘prices to devices’

EPRI: Prices to devices PNNL: Grid-friendly appliances “Trickle-down” from larger gear

• Know about their own consumption, can talk, listen, negotiate

Smart Grid Example Companies: Certicom (PKI security

at device level)


Smart Portal – ‘energy dashboards’Smart Portal – ‘energy dashboards’

Energy dashboard for customers Gateway

• Seeing prices• Seeing consumption• Making choices• Controlling devices

Utilities: From industry or from outside?• Microsoft, Intel, Cisco, Sony?• Demand response? Escos?• Regulators mandate?• Industry consortium?

Companies: GridPoint, Tendril


Smart Customers – ‘user control’Smart Customers – ‘user control’

Industry and commerce already raising energy IQ

Now small business and consumers• Galvin’s Perfect Power / Sad Socket• Network for New Energy Choices• Pareto’s Energy Improvement Districts

Utilities: Who do you want to educate the public?


Smart Distribution – ‘beyond the meter’Smart Distribution – ‘beyond the meter’

$1 Trillion asset value• 90% of all interruptions originate in the

distribution grid

Smart meters are fine, but why monitor only the end point?• Telecom and business networks monitor the

entire length

Aging workforce additional reason Utilities: Future-proof now!

• Spec communications and open standards to avoid lock-out or expensive retrofits


Smart-Rich UtilitiesSmart-Rich Utilities

PHEV opportunity• Now selling gas• $1T+ to utility top line• Minimum 300% increase in gross revenue


Beyond the Utility-- MicrogridsBeyond the Utility-- Microgrids

Energy Independence Districts and Parallel Microgrids

Shalom Flank, Ph.D.CTO and Microgrid Architect

Pareto Energy LTD

Courtesy

[email protected]


Supergrid vs.Microgrids

Source: Chris Marnay, LBL


Microgrids and the Dispersed Grid

Source: Chris Marnay, LBL


WPCA Renewable Biomass Facility

Current project to convert pelletized wastewater residuals to a gas

Installation of trigeneration system to generate 10 to 15 MWe


Stamford Government Center


EID Examples – Stamford, CT


Pareto Microgrid

Organization: Financing:Chartered by City or Town Tax-exempt bonds / long pay-backPublic-Private Partnership Invest across all types of energyParticipants are Board members Gov't / foundation grants and incentives


85

Interconnection issues often block distributed generation

• Microgrid Interconnection is essential – pure “islanded”operation is more expensive and less reliable

• Current solutions are inadequate – IEEE 1547 and other standards work better for smaller projects (<2MW)‏

• For larger projects, extensive customization and negotiations with utility required – highly vulnerable to delays and “gold-plating”

• Current solutions cannot combine multiple small generators on a set of private wires (“microgrid”) – instability and equipment damage will result

EIDs require a new interconnection approach


Pareto has new solution for microgrid interconnection

Removes synchronization / stability problems of connecting multiple generators to each other and to the utility grid –entirely “non-synchronous” solution

Removes safety and fault current problems for larger installations – DC inverters limit potential power flows

Removes power quality issues for private wires or deteriorated utility grids – software controllers combine sources into “perfect” AC signal (200µs switching times)‏

Stabilizes utility grid – can sell VAR, current, and frequency stabilization services back to utility


Single-Building Perspective

System Perspective

EID Interconnection


Beyond the Utility Beyond the Utility

Convergence of multiple trends• Microgrids, net zero housing, renewables, DG, CHP,

server farms, robotic manufacture

Opportunities: • Aggregation • Outsourcing • Microgrids / EID/ • User as customer• Horizontal infrastructure

Utilities: How do you want to play?• Supply products, services or turnkey?• Collaborate with growing number of suppliers?• Victim?


Why there is still time -- Five year windowWhy there is still time -- Five year window

Utilities are ‘very’ slow to move Industry dominated by big, slow

moving companies Foot-dragging by proprietary vendors More then just energy or technology Eager investors Extensive M&A

• Two major utilities taken private (TXU / PSE)• Technology acquisitions• Renewable acquisitions

SMART MICRO-GRIDS

Modern version of the “electric grid”


Smart Grid isSmart Grid is

Real-time Simulation and Contingency AnalysisReal-time Simulation and Contingency Analysis

Distributed Generation and Alternate Energy SourcesDistributed Generation and Alternate Energy Sources

Self-Healing Wide-Area Protection and IslandingSelf-Healing Wide-Area Protection and Islanding

Asset Management and On-Line Equipment MonitoringAsset Management and On-Line Equipment Monitoring

Demand Response and Real-time PricingDemand Response and Real-time Pricing

Participation in Energy MarketsParticipation in Energy Markets

Shared Information – Continuously Optimizing – Intelligent Responses!Compilation of GSE & EnerNex Concepts

Smart Grid is...The Evolution to the Smart Grid Philip Bane Managing Editor Smart Grid News

Documents