Energy Efficiency, Demand Response, PHEVs and the Smart Grid…Pulling It All Together

Terry BostonPresident & CEO, PJM Interconnection2010 Summer SeminarAugust 2, 2010

West Philly High PHEV

2© 2010 Electric Power Research Institute, Inc. All rights reserved.

PJM as Part of the Eastern Interconnection

KEY STATISTICS• PJM member companies 600+• Millions of people served 51• Peak load in megawatts 144,644• MWs of generating capacity 164,905• Miles of transmission lines 56,250• GWh of annual energy 729,000• Generation sources 1,310• Square miles of territory 164,260• Area served 13 states + DC• Internal/external tie lines 250

26% of generation inEastern Interconnection

23% of load inEastern Interconnection

19% of transmission assetsin Eastern Interconnection19% of U.S. GDP produced in PJM

6,038 substations

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$34.3 billion

$26.7 billion

PJM Annual Market Settlements

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We Need Transmission…

Bottom line…

You have to love Storage & Transmission.

• If you like wind…• If you like nuclear…• If you like clean coal…

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Proposed Generation in Queue

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Off Shore Wind—Potential 54 GW

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Intermittent Wind Generation

8,760

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PJM Load and Wind Resources –April 7, 2009

Load

MW W

ind MW

Loca

tiona

l mar

gina

l Pric

e-$/M

Wh

9© 2010 Electric Power Research Institute, Inc. All rights reserved.

Comparison of Wind with Solar PV 4.6 MW TEP Solar Array (Arizona)

0

1000

2000

3000

4000

1400000 1450000 1500000 1550000

Seconds since 00:00:00 Jan 1, 2007

kW

0

1000

2000

3000

250 750 1250

kW

(b)

Source: Carnegie Mellon University

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Grid Storage Types

Pumped Hydro Compressed Air Flywheels

Stationary Battery Mobile Batteries Water Heaters

My favorite

My favorite

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Making Plug-in Hybrid Vehicles Happen

1902 Lohner-Porsche PHEV

2009 BWM MINI E

Battery Electric Vehicles (18)

2010 Coda Automotive Sedan2010 Mitsubishi iMiEV BEV2010 Nissan LEAF2010 Ford Battery Electric Van2010 Tesla Roadster Sport EV2011 Peugeot Urban EV*2011 Renault Kangoo Z.E. 2011 Renault Fluence Z.E.2011 Tesla Model S2011 BYD e6 Electric Vehicle2011 Ford Battery Electric

Small Car 2011 Opel Ampera Extended

Range BEV*

2012 Fiat 500 minicar

3/31/2010

Battery Electric Vehicles

2012 Renault City Car* 2012 Renault Urban EV*2012 Audi e-tron 2013 Volkswagen E-Up*2016 Tesla EV

Extended Range Electric Vehicles

2010 Chevy Volt Extended Range

Plug-in Hybrid Vehicles (6)

Fisker Karma S Plug-in Hybrid 2010 Toyota Plug-in Hybrid 2011 BYD F3DM Plug-in Hybrid2012 Bright Automotive IDEA

Plug-in Hybrid2012 Ford Plug-in Hybrid2012 Volvo Plug-in Hybrid

12© 2010 Electric Power Research Institute, Inc. All rights reserved.

480,000 Vehicles in United States

Average ~66 miles per day

MPG = ~7

Parked 12 hours at same location

Parked for 3 months

Great public visibility

Will Work for Fuel…

Available for a full time summer job.

13© 2010 Electric Power Research Institute, Inc. All rights reserved. 13– Photo: EPRI

It’s really going to happen.

PHEV: Benefits to Markets

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Operational Details• Altairnano, Inc – Lithium Ion nano titanate battery

• Energy: 300 kWh• Efficiency: 90% round trip

• Power: 1 MW for 15 minutes• Usable Charge Range: 5% - 99%

AES Grid-Scale Energy Storage System

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Fast Regulation: Speed Matters…

A fossil power plant following a regulation

command signal

Energy Storage (batteries / flywheels) accurately following a regulation command

signal

Energy Storage OutputRegulation Signal

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Learn Faster Than the Competition

The only sustainable competitive advantage is the ability to learn faster

than the competition.

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Smart Grid –More Power to the Customer

7/21/2010 agreement with BOMA/Chicago for load frequency

control with buildings.

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PJM’s Role in the Smarter (Robust) Grid

Generation

Distribution

Smart Metering, Demand Response, PHEV, Energy

Conservation and Distributed Resources

Smart Metering, Demand Response, PHEV, Energy

Conservation and Distributed Resources

SCADA and Phasor Measurements

SCADA and Phasor Measurements

The Smart Grid is realized by merging data to achieve a total end-to-end systems view by integrating information technology and operational technology.

Energy StorageEnergy Storage

ISO/RTO

Two-Way Communication and Control $800 million DOE grants$800 million DOE grants

Substation AutomationSubstation AutomationCustomer

Transmission & Sub-transmission

Distribution AutomationDistribution Automation

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Demand Resource and Energy Efficiency in the Capacity Market – 2013/2014

www.pjm.com

9,282 MW or enough power for 5 million people or half the

number of households in the state of

Michigan

9,282 MW or enough power for 5 million people or half the

number of households in the state of

Michigan

679 MWs or enough to power 115,000 households – about the number of households in

the city of Pittsburgh

679 MWs or enough to power 115,000 households – about the number of households in

the city of Pittsburgh

Energy EfficiencyEnergy EfficiencyDemand ResourcesDemand Resources

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Offers of Demand-Side Resources as Capacity in PJM by Delivery Year

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PJM Incremental Capacity Resource Additions

Capa

city C

hang

es (M

W)

As of 6/22/2001

16%

77%

64%

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Union Station ─ 1908