EU-US ENERGY COUNCIL

Technology Working Group

Steve Bossart

US Department of Energy

National Energy Technology Lab

Assessing Smart Grid Benefits and Impacts: EU and U.S. initiatives

Vincenzo Giordano

Ettore Bompard

European Commission DG JRC

2013 IEEE PES Innovative Smart Grid Technologies

February 26, 2013

ObjectivesBackgroundAreas of collaborationSmart grid definitionsSmart grid investmentsProject inventoryPerformance and progress

Build metricsImpact metrics

DisseminationFuture Collaboration

Topics2

Objectives

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Objectives of Joint EU-US Collaboration on Smart Grid

Make sure we speak the same language when it comes to Smart

Grid definitions, terminology and methodological approaches

Build common approaches in assessment framework for smart

grid advances, benefits, and impacts, as well as in information

sharing, leading to practical future opportunities for

transnational cooperation

Background

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Two workshops with EU and US Smart Grid experts

(Albuquerque Nov 2010, Washington DC Dec 2011)

"EU-U.S. Workshop on Assessment Methodologies for Smart

Grid: Advances, Benefits, and Impacts"

Joint DoE- JRC report

"Assessing Smart Grid Benefits and Impacts: EU and U.S.

initiatives"

Background6

Areas of Collaboration

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EU-US cooperation

PROJECT INVENTORY

CASE STUDIES

KPI and CBA

Dissemination and sharing

Primary Areas of Joint Collaboration

ISGAN ANNEX I

ISGAN ANNEX II

ISGAN ANNEX III

ISGAN ANNEX IV

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Smart Grid Definitions

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What is a Smart Grid?EU - A Smart Grid is “an electricity network that can intelligently integrate the

behavior and actions of all users connected to it - generators, consumers and

those that do both - in order to efficiently ensure sustainable, economic and

secure electricity supply” [EC Smart Grid Task Force].

US - A Smart Grid uses digital technology to improve reliability, security, and

efficiency (both economic and energy) of the electric system from large

generation, through the delivery systems to electricity consumers and a

growing number of distributed-generation and storage resources [DOE System

Report].

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Context of Smart Grid Smart Grid Enhanced by Smart Grid

Two-way communicationsSensorsControlsDecision support toolsComponents

TransformersPower electronicsConductors

Sensing, control, automation, power transformation, and

communications

Renewable energy resourcesElectric vehiclesEnergy storageDistributed generationConnected appliances/devicesLoad control/demand response

Generation, storage, and load

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Smart Grid Investments

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Smart Grid InvestmentsRequired Smart Grid investments Funding for Smart

Grids development ($/Smart metering deployment

EU €1.5 trillion over 2007-2030 to renew the electrical system from generation to transmission and distribution [IEA 2008].This figure includes investments for Smart Grid implementation and for maintaining and expanding the current electricity system.

€184 million (FP6 and FP7 European funding for projects in the JRC catalogue) About €200 million from European Recovery Fund, ERDF, EERA.National funding: n/a

40 million already installed [JRC, 2011) 240 million by 2020 [Pike Research, 2011]

US $338 (€238) to 476 (€334) billion by 2030 [EPRI, 2011] The costs include the infrastructure to integrate distributed energy resources and consumer systems, but do not include generation costs, transmission expansion , and consumer’s smart appliances and devices

$9.8 (€-) billion in 2009 (US Recovery act; includes Federal and private sector funding)

8 million in 2011 [Smartmeters.com, 2011] 60 million by 2020 [Smartmeters.com, 2011]

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Smart Grid Project Inventory

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US –Inventory of Smart Grid projects

99 projects under SGIG total

budget $8.1 billion

Submission of project information is required under the project schemeInventory of all US Smart Grid projects is underway (ISGAN)

32 projects under SGDP total

budget $1.7 billion

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US –Inventory of Smart Grid projects

www.sgiclearinghouse.org

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Progress and Performance

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Policy goals and business case

How much are we progressing

toward a Smart Grid? How do we

measure the level of smartness?

KPI analysis

European Union

Which smart grid solutions

have a viable business case?

For whom? Cost & benefit analysis

Metrics & benefits analysis

Tools:

Smart Grid Computational Tool

Energy Storage Computational Tool

United States

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Features of the Ideal Smart Grid - Services versus Characteristics

EU (Services) US (Characteristics)

Enabling the network to integrate users with new requirements Accommodate all generation and storage options

Enabling and encouraging stronger and more direct involvement of consumers in their energy

usage and managementEnable active participation by customers

Improving market functioning and customer service Enable new products, services, and markets

Enhancing efficiency in day-to-day grid operation

Optimize asset utilization and operate efficientlyEnabling better planning of future network

investment

Ensuring network security, system control and quality of supply

Operate resiliently to disturbances, attacks and natural disasters

Provide the power quality for the range of needs

DOE Analytical ApproachE

xam

ple

Improvesfeeder voltage regulation

Reduced feeder losses worth$60 per MWh

Automatic Voltage and VAR Control

• Capacitor controls

• Distribution Management System

Functions Mechanisms Benefits

What does the Smart Grid

do?

How does itdo that?

What “goodness”

results?

Monetary Value

What is the goodness

worth?

What are Smart Grid

technologies?

Assets

$6000

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US – Build MetricsKey Questions to Address

1. What was purchased, built, and deployed?

• # of assets or programs

• Type of assets or programs

Configuration of assets

2. How much did it cost?

• Cost segmentation: assets, labor , and specific asset type

3. Where was it installed?

• NERC Region, State, or recipient locations

4. How much of the system was affected?

• % of system, % of customers, % of load

5. What does it do?

• Characteristics of assets or programs: Intended function or use of assets

Smart Grid FunctionsSensing Control Protection

Wide Area Monitoring, Visualization, and Simulation

Power Flow Control Fault Current Limiting

Diagnosis & Notification of Equipment Condition

Automated Feeder Switching

Dynamic Capability Rating

Real-Time Load Measurement and Management

Automated Islanding and Reconnection

Adaptive Protection

Automated Voltage and VAR Control

Enhance Fault Protection

Real-Time Load Transfer

Customer Electric Use Optimization

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Energy Storage ApplicationsRenewable Support Investment Deferral Ancillary Services Load Management

Renewables Energy Time Shift

Electric Supply Capacity Deferral

Area Regulation Electric Energy Time Shift

Renewables Capacity Firming

T&D Upgrade Deferral Load Following Transmission Congestion Relief

Wind Generation Grid Integration, Short Duration

Substation Onsite Power

Electric Supply Reserve Capacity

Time-of-Use Energy Cost Management

Wind Generation Grid Integration, Long Duration

Electric Service Reliability

Voltage Support Demand Charge Management

Electric Service Power Quality

Transmission Support

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Benefits Analysis FrameworkBenefit

CategoryBenefit

Sub-categoryBenefit

Economic

Improved Asset Utilization

Optimized Generator Operation (utility/ratepayer)Deferred Generation Capacity Investments (utility/ratepayer)Reduced Ancillary Service Cost (utility/ratepayer)Reduced Congestion Cost (utility/ratepayer)

T&D Capital Savings

Deferred Transmission Capacity Investments (utility/ratepayer)Deferred Distribution Capacity Investments (utility/ratepayer)Reduced Equipment Failures (utility/ratepayer)

T&D O&M Savings

Reduced Distribution Equipment Maintenance Cost (utility/ratepayer)Reduced Distribution Operations Cost (utility/ratepayer)Reduced Meter Reading Cost (utility/ratepayer)

Theft Reduction Reduced Electricity Theft (utility/ratepayer)

Energy Efficiency Reduced Electricity Losses (utility/ratepayer)

Electricity Cost Savings

Reduced Electricity Cost (consumer)

Reliability

Power Interruptions

Reduced Sustained Outages (consumer)Reduced Major Outages (consumer)Reduced Restoration Cost (utility/ratepayer)

Power QualityReduced Momentary Outages (consumer)Reduced Sags and Swells (consumer)

Environment Air EmissionsReduced Carbon Dioxide Emissions (society)Reduced SOX, NOX, and PM-10 Emissions (society)

Security Energy SecurityReduced Oil Usage (society)Reduced Wide-scale Blackouts (society)

.

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Five Primary Analytical Focus Areas Peak Demand and Electricity

Consumption

• Advanced metering infrastructure

• Pricing programs & consumer devices

• Direct load control

Operations & Maintenance Savings from Advanced

Metering

• Meter reading• Service changes• Outage management

Distribution System Reliability

• Automated & remote operations

• Feeder switching Monitoring & health sensors

Energy Efficiency in Distribution Systems

• Voltage optimization• Conservation voltage

reduction• Line losses • Operational efficiency

Transmission System Operations & Reliability

• Application of synchrophasor technology for wide area monitoring, visualization, and control

SGIG Consumer Behavior Studies: Overview of Research Topics

Given the diversity of studies being undertaken as part of the SGIG program, we have a unique opportunity to evaluate issues in several

topical areas:

Research Topical Areas1. Customer Acceptance: What motivates customers to accept time-based rate programs?2. Customer Retention: What motivates customers to remain on time-based rate programs?3. Customer Response: Will customers respond, and if so by how much will they respond, to time-based rate programs?4. Role of enabling technology and information/education: Will customers respond, and if so by how much will they respond, to control and/or information technology and/or education alone?

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Dissemination

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Dissemination platforms - US

www.sgiclearinghouse.org www.smartgrid.gov

www.energy.gov/oe/technology-development/smart-grid

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Future Collaboration

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Future EU US Collaborative Smart Grid Work Mapping activities

Coordination of EU and US mapping exercises of Smart Grid projects within the ISGAN framework.

Clarify definition of large- and small-scale demonstrations, & R&D, demonstration and deployment

Extrapolation of project results

Possible approaches to scale-up project and meta-analyses results to larger control areas

Project Assessment

Approaches to capture non-quantifiable impacts (e.g., social, environmental)

Approaches to capture best practices and lessons learned

Case Study Analysis

Evaluate use of SGCT and ESCT

Parallel consumer behavior studies

Approaches to capture best practices and lessons learned

Other Areas

Clarify driver differences between EU and US and how assessment methodology reflects

differences

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