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OwnerJuly 2015 to presentEl Cerrito

Finding best available technologies for meeting energy needs today and tomorrow: energy efficiency, demand response,, solar, wind, electric vehicles, biofuels and smart grid. It’s all the innovations that make the energy we use more secure, clean, and affordable. The energy world's best hopes lie in what's happening in the digital realm, especially in data analytics.

Saturday, August 6, 2011

Call to Action

Today's Power System  Source: EPRI

The electricity system isn’t just about electricity. It's about three flows across three integrated networks:
  • Electricity
  • Information
  • Money
The smart grid is a way to better facilitate and manage all those flows and transactions into a cooperative, collaborative, transactive, reliable system.

Tomorrow's Power System Source: EPRI

Navigate this Report
Back to Smart Energy
1. Background

2. What is the Smart Grid?
3. Characteristics of a Smart Grid
4. What is the Smart Grid – EISA 2007
5. Business Case
6. Benefits [EPRI Cost/Benefit Added Aug 5, 2011]
7. Risks/Issues
8. Success Factors
9. Next Steps



1. Background
Energy is a global ~$6T market with historically little innovation. The energy industry is poised to change due to global warming and peak oil and this revolution will be facilitated by an explosion of information technology.

In the early 1990’s the communication silo tipped over and became a horizontal layer that affected all other things. The energy silo is the next to tip. The same way no one could have predicted Google and Facebook in 1994, no one knows today all the innovation that will be possible with the Smart Grid

Everything will be connected on the network and will be accessible by any device. What will this mean?

2. What is the Smart Grid?
  1. An Internet for things that connects physical objects like the internet connected information
  2. The synergy of information and energy
  3. Much more than automated meter reading
  4. A dictionary definition of the Smart Grid is a transformed electricity transmission and distribution network or "grid" that uses robust two-way communications, advanced sensors, and distributed computers to improve the efficiency, reliability and safety of power delivery and use.
  5. According to NIST, it takes use of communications, computing and power electronics to create a system that is:
    • Self-Healing and Adaptive
    • Interactive with consumers and markets
    • Optimized to make best use of resources and equipment
    • Predictive rather than reactive, to prevent emergencies
    • Distributed across geographical and organizational boundaries
    • Integrated, merging monitoring, control, protection, maintenance, EMS, DMS, marketing, and IT
    • More Secure from attack


Building a smarter utility

Ron Ambrosio of IBM Research discusses smarter utilities


3. Characteristics of a Smart Grid
  1. Enable active participation by consumers
  2. Accommodate all generation and storage options
  3. Enable new products, services, and markets
  4. Provide power quality for the needs of a digital economy
  5. Optimize asset utilization and operating efficiency
  6. Anticipate and respond in a self-healing manner
  7. Operate resiliently in disasters, physical or cyber attacks

4. What is the Smart Grid – EISA 2007
Deploying the Smart Grid became the policy of the United States with passage of the Energy Independence and Security Act of 2007 (Title 13). According to Title XIII the Smart Grid includes:
  1. Optimizing grid operations and resources to reflect the changing dynamics of the physical infrastructure and economic markets using digital controls to manage demand, congestion, and provide ancillary services
  2. Cyber security including ability to detect, respond to, recover, etc relative to security threats
  3. Using and integrating distributed resources, demand side resources, and energy efficiency resources
  4. Deploying smart technologies for metering
  5. Communications of grid operations and status
  6. Distribution automation including ability to sense disruptions in power flows and communicate on such instantaneously
  7. Integrating “smart” appliances and other consumer devices including ability of appliances and equipment to respond without human intervention
  8. Deploying and integrating advanced electricity storage and peak-shaving technologies
  9. Transferring information to consumers in a timely manner to allow control decisions
  10. Developing standards for the communication and interoperability of appliances and equipment connected to the electric grid
  11. Identifying and lowering barriers to adoption of smart grid technologies, practices, and service


5. Business Case
  1. Integrate Intermittent Resources - As a matter of physics, the supply and demand of energy is balanced on a moment to moment basis. Renewable wind and solar energy resources are much more intermittent than the traditional coal base power plant. Parts of America’s existing dumb and fragmentary electricity grid are so vulnerable to load variations that their owners think they may be able to cope with no more than about 2% of intermittent wind power. Smart Grid technology can help manage intermittent sources and balance supply and demand.

  2. Manage Demand - Electricity demand varies widely over the year due to weather and use patterns. The capacity needed to supply the top few hours of peak summer use costs tens of billions of dollars. Smart Grid technology can help smooth the peak, increase load factors and the growth of peak demand.

  3. Engage Consumers - Today consumers have very little information about their energy use. It’s like going to the grocery store and getting a consolidated bill at the end of the month with very little information about the prices of the items you bought. Ubiquitous information to consumers reduces overall energy use, but more importantly, it reduces peak energy use by 5-20%, depending on pricing and market design and the availability of end-use enabling technology.

  4. Create Microgrids - The current grid can’t handle two way flows of electricity on the distribution network. A centralized grid can be inefficient and costly. Only a third of the fuel energy burnt in power plants ends up as electricity, with half lost as waste heat, and a further 8% lost along long-distance transmission lines. A more distributed grid, by its very architecture, can improve efficiency by matching local supply with demand. With multiple decentralized energy sources, electricity can be generated close to the point of use, avoiding the losses and congestion that result from long-distance transmission. The Smart Grid makes a more distributed grid possible by its very architecture, can improve efficiency by matching local supply with demand. With multiple decentralized energy sources, electricity can be generated close to the point of use, avoiding the losses and congestion that result from long-distance transmission.

  5. Enable Electric Vehicles At the moment, the grid would be unable to cope if a large number of commuters arriving home plugged in their electric vehicles more or less simultaneously to recharge them. Yet if those same cars were recharged at three o’clock in the morning, when demand is low, it would benefit both consumer (who would get cheap power) and producer (who would be able to sell otherwise wasted electricity). Such cars might even act as “micro-peakers” or regulatators, reservoirs of electrical energy that a power company could draw on if a car were not on the road. Managing plug-ins could be the smart grid’s killer application.


6. Smart Grid Benefits
  1. Return on Investment - In April 2011, The Electric Power Research Institute (EPRI) released a broad assessment of the costs and benefits to modernize the U.S. electricity system and deploy what has become known as “the smart grid.” Factoring a wide range of new technologies, applications and consumer benefits the investment needed to implement a fully functional smart grid ranges from $338 billion to $476 billion and can result in benefits between $1.3 trillion and $2 trillion.

    This indicates an investment level of between $17 and $24 billion per year will be required over the next 20 years. The costs cover a wide variety of enhancements to bring the power delivery system to the performance levels required for a Smart Grid. The costs include the infrastructure to integrate distributed energy resources (DER) and to achieve full customer connectivity, but exclude the cost of generation, the cost of transmission expansion to add renewables and to meet load growth, and a category of customer costs for smart-grid ready appliances and ;devices.

    The wide range in these estimates reflects the uncertainty the industry currently faces in estimating these costs and the possible reductions which may or may not occur over time.

    • Summary of Estimated Cost and Benefits of the Smart Grid 20-Year Total ($billion)
      • Net Investment Required 338 – 476
      • Net Benefit 1,294 – 2,028
      • Benefit-to-Cost Ratio 2.8 – 6.0
  2. Enables New Products, Services, and Markets - The Smart Grid enables a
    market system that provides cost-benefit tradeoffs to consumers by creating
    opportunities to bid for competing services.

  3. Energy Independence ;- The Smart Grid makes an electric vehicle economy possible. Without more intelligence, the grid will be unable to cope if a large number of commuters arriving home plugged in their electric vehicles more or less simultaneously to recharge them. Benefits included: reducing dependence on unstable oil supplying countries. Reduced balance of trade deficits. Reduces oil consumption by reducing the need for inefficient generation during peak usage periods.

  4. Reduced Greenhouse Gases by enabling electric vehicles and new power sources. The Smart Grid, combined with a portfolio of generation and end-use options, could reduce 2030 overall CO2 emissions from the electric sector by 58% relative to 2005 emissions (EPRI 1020389). A Smart Grid would be capable of providing a significant contribution to the national goals of energy and carbon savings. One EPRI report (EPRI 1016905) estimated the emissions reduction impact of a Smart Grid at 60 to 211 million metric tons of CO2 per year in 2030.

  5. More Consumer Choice - Making information available to everybody. More options for consumers. The smart grid consumer is informed, modifying the way they use and purchase electricity. They have choices, incentives, and disincentives.

  6. Managed Peak Demand - A more efficient grid, with reduced energy losses and a greater capacity to manage peak demand, lessening the need for new generation.

  7. Integrated Renewable Energy - Facilitates expanded deployment of renewable energy which is inherently intermittent. DER - Accomodated distributed power sources. The Smart Grid
    accommodates all generation and storage options.

  8. Improved Power Quality - Improved power quality. EPRI studies have estimated the cost of power disturbances across all business sectors in the U.S. at between $15 billion to $24 billion due to power quality (PQ) phenomena (EPRI 1006274).

  9. Improved Power Reliability - Less outage time / shorter outages / smarter decisions. The Smart Grid independently identifies and reacts to system disturbances and performs mitigation efforts to correct them. Other EPRI studies have estimated the cost of power disturbances across all business sectors in the U.S. at between $104 billion and $164 billion a year as a result of outages (EPRI 1006274). The cost of a massive blackout is estimated to be about $10 billion per event as described in EPRI’s “Final Report on the August 14, 2003 Blackout in the United States and Canada.” Improved resilience to disruption.

  10. Capital Investment Savings - Optimized facility utilization and averts construction of back-up (peak load) power networks. Increased capacity and efficiency in operating existing electric power network.

  11. Operating Savings - Automates maintenance and operations. The Smart Grid
    optimizes assets and operates efficiently.

  12. Risk Avoidance - Improved Cyber Security. The Smart Grid resists attacks on both the physical infrastructure (substations, poles, transformers, etc.) and the cyber-structure (markets, systems, software, communications).
    The benefits of the Smart Grid are numerous and stem from a variety of functional elements which include cost reduction, enhanced reliability, improved power quality, increased national productivity and enhanced electricity service. -Source: EPRI

7. Risks/Issues in deploying the Smart Grid

  1. Today most consumers pay the same rate for electricity regardless of when they use it regardless of the actual cost. The Smart Grid is not all about technology and consumers will not be engaged to change their energy use behavior without financial motivation. Without dynamic pricing, where retail electric rates reflect actual wholesale market conditions, smart grid technology will be ineffective.
  2. Lack of standards is a roadblock to deployment. In the absence of federal standards for the Smart Grid and smart appliances, any utility that dared to update its grid would have to gamble that its new features would remain compatible with next-generation technology. As Steve Hickok, deputy administrator of the Bonneville Power Administration, puts it, "No one wants to get stuck with a Betamax." How can we avoid incompatible systems being fielded that result in costly legacy systems that must be replaced much sooner than projected?
  3. Utilities must take privacy and security concerns into account when designing advanced metering systems and must persuade consumers, regulators and politicians that privacy interests are adequately protected
  4. Proprietary protocols and closed systems might stifle innovation. The Internet has two big advantages to offer the Smart Grid. First, it is layered, and so one can imagine layering the Smart Grid’s power plane under some new protocols. Second, the Internet is big and still rapidly growing. Some established Smart Grid players are making familiar sounds about the Internet not being right for energy -- too fragile, to insecure, etc -- and so they want to build a separate Smart Grid, instead of fixing the Internet.
  5. Pervasive deployment of demand response impacts control system stability

9. Success Factors
In January 2010, the California Public Utilities Commission (CPUC) soughtindustry input on its draft decision on adopting smart grid metrics.
  1. Customer / AMI Metrics
    • Number of advanced meter malfunctions where customer electric service is disrupted
    • Load impact from smart grid-enabled, utility administered demand response (DR) programs (in total and by customer class, to the extent available)
    • Percentage of demand response enabled by AutoDR (Automated Demand Response) by individual DR impact program
    • The number of utility-owned advanced meters with consumer devices with Home Area Network (HAN) or comparable consumer energy monitoring or measurement devices registered with the utility (by customer class, CARE, and climate zone, to extent available)
    • Number of customers that are on a time-variant or dynamic pricing tariff (by customer class, CARE, and climate zone)
    • Number of escalated customer complaints related to (1) the accuracy, functioning, or installation of advanced meters or (2) or the functioning of a utility-administered Home Area Network with registered consumer devices
    • Number of utility-owned advanced meters replaced annually before the end of their expected useful life
    • Number of advanced meter field tests performed at the request of customers pursuant to utility tariffs providing for such field tests
    • Number and percentage of customers with advanced meters using a utility-administered internet or web-based portal to access energy usage information or to enroll in utility energy information programs

  2. Plug-in Electric Vehicle Metrics
    • Number of customers enrolled in time-variant electric vehicles tariffs

  3. Storage Metrics
    • MW and MWh of grid connected energy storage interconnected to utility facilities at the transmission or distribution system level

  4. Grid Operations Metrics
    • The system-wide total number of minutes per year of sustained outage per customer served as reflected by the System Average Interruption Duration Index (SAIDI), Major Events Included and Excluded
    • How often the system-wide average customer was interrupted in the reporting year as reflected by the System Average Interruption Frequency Index (SAIFI), Major Events Included and Excluded
    • The number of momentary outages per customer system-wide per year as reflected by the Momentary Average Interruption Frequency Index (MAIFI), Major Events Included and Excluded
    • Number of customers per year and circuits per year experiencing greater than 12 sustained outages
    • System load factor and load factor by customer class
    • Number of and total nameplate capacity of customer-owned or operated, utility grid-connected distributed generation facilities.
    • Total annual electricity deliveries from customer-owned or operated, utility grid-connected distributed generation facilities
    • Number and percentage of distribution circuits equipped with automation or control equipment, including Supervisory Control and Data Acquisition (SCADA) systems

  5. Non-Consensus Customer/AMI Metrics
    • Measured improvements in grid reliability at the customer level and to measure the ability of the smart grid to avoid and identify outages
    • Number customer reported outages
    • Peak/off-peak price differential
    • Load impact from smart grid-enabled, utility administered demand response (DR) programs (in total and by customer class, to the extent available)
    • The number of utility owned advanced meters with consumer devices with Home Area Network (HAN) or comparable consumer energy monitoring or measurement devices registered with the utility (by customer class, CARE, and climate zone, to extent available)
    • Number of customers that are on a timevariant or dynamic pricing tariff (by customer class, CARE and climate zone, to the extent available)
    • Number and percentage of customers with advanced meters using a utility-administered internet or web-based portal to access energy usage information or to enroll in utility energy information program

  6. Non Consensus Advanced Automation and Measurement Technology Metrics – Many of these technologies are in there early stages and IOUs have not decided if or in what form they should be deployed
    • Power Quality Metric
    • Line Losses
    • Dynamic Line Rating
    • T&D Load Factor

  7. Non Consensus Environmental Metrics
    • Avoided GHG emissions due to smart grid-enabled line loss reductions in the transmission and distribution system. This could possibly be done with a modeling tool.
    • Avoided GHG emissions due to smart grid-enabled improvements in intermittent renewable integration that reduce the need for spinning reserves and other ancillary services.
    • Avoided GHG emissions from smart grid-enabled residential Auto-DR programs Avoided GHG emissions due to smart grid-enabled energy storage. Changes in NOx and hydrocarbon(HC) emissions (in place & time)
    • Changes in consumptive water use per unit of electricity generated
    • Cost of avoided GHG emissions ($ per ton of avoided global warming pollution with SG deployment compared against a non-SG baseline.)
    • Cost of delivered energy efficiency and demand response programs with and without SG deployment, such as improved cost effectiveness and meeting program goals at lower than anticipated cost
    • Achieve RPS goals at lower than anticipated cost due to SG deployment
    • Economic value of avoided transmission and distribution line losses

  8. Non Consensus - Cyber Security Metrics
    1. Number and total number of minutes of outages attributable to grid and cyber attacks;
    2. Number and percentage of customers whose data is compromised by a cyberattack, and number and percentage of customers notified of a data breach (DRA suggested).
    3. Number of attempted cyber-attacks on the utility, and the number of security breaches experienced by the utility

  9. Non Consensus Plug-In Electric Vehicle Metrics
    1. Metering-related metrics
    2. Smart charging

  10. Non Consensus Energy Storage Metrics - Peak-shaving cannot be tracked as an isolated storage use and assigned a capacity
    1. The magnitude and percentage of total load served by advanced energy storage and peak-shaving technologies
    2. MW and MWh of capacity of peak load-reducing energy storage installed

8. Next Steps Computing and communication converged. What analogous convergence might we look for in energy? Some day the big box stores will stop slapping "smart" on appliances, since they will all be smart. Utilities will no longer install smart meters. Just meters. Studies will no longer appear measuring the size of the smart grid. Its intelligence no longer an oddity, we’ll drop the "smart" adjective. When the smart grid simply is the grid, then this industry will have arrived.

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