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Xanthus Consulting International
Frances Cleveland [email protected]
Five-Level DER
Hierarchical Architecture
Xanthus Consulting International
DER Management Functional Requirements • Energy
– Generate energy at any time – Generate energy at specific times to offset peak load – Store energy for later delivery – Offset local loads – Provide backup power – Modify energy output autonomously in response to local
voltage variations in order to damp voltage deviations
• Reactive power – Provide reactive power by a fixed power factor – Provide reactive power through autonomous responses
to local voltage measurements – Provide reactive power through autonomous responses
to temperature
• Frequency support – Support frequency regulation on a multi-second basis by
direct automatic generation control (AGC) commands – Support frequency regulation on a second or even sub-
second basis through autonomous modifications of energy output to counter frequency deviations
• Response to emergencies – Provide “spinning” or operational reserve so that energy
is available at short notice (seconds or minutes) – Respond to emergency conditions by riding through
voltage anomalies or only tripping off if necessary – Create microgrids to minimize the extent and length of
power outages – Provide black start capabilities
• Economic responses – Provide low cost energy – Provide low emissions energy – Provide renewable energy – Support the receipt of pricing signals for demand
response actions – Manage energy and ancillary services based on pricing
signals
• Schedules – In real-time, modify energy and ancillary service outputs
based on time-based schedules – Plan ahead for generation and storage based on
scheduled requirements
• Wide area situational awareness – Provide status and measurements on current energy and
ancillary services – Forecast status and output over hours and days for
energy and ancillary services – Provide emergency alarms and information
• Direct control via remote commands – Support turn on/turn off – Support limiting maximum generation – Support setting the power factor
• Interconnection and maintenance – Provide operational characteristics to utility at initial
interconnection and upon changes – Support updating of autonomous settings and schedules
locally – Support updating of autonomous settings and schedules
through remote communications – Testing of updates for meeting regulatory and utility
requirements, including safety
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Example DER “Spaghetti” Diagram extracted from NISTIR 7628 showing the logical interactions between the DER actors (these DER actors are being harmonized with the SGAM Actors) Blue are existing logical interfaces Red are new logical interfaces
NISTIR 7628 Logical Diagram of Actors and Logical Interfaces, with DER Additions to Meet the Functional Requirements
Xanthus Consulting International
DER Architectural Levels
• Distributed Energy Resources (DER) architectural levels : – Level 1: autonomous DER systems responding to customer
preferences and local conditions – Level 2: the customer DER management systems (CDEMS)
managing local DER systems – Level 3: the retail energy providers (REP) systems and utilities
interacting with CDEMS and DER systems (multiple scenarios) – Level 4: the utility DER management systems (DERMS) to model
and analyze DER system impacts and capabilities, in order to request/command DER actions
– Level 5: the Independent System Operators (ISOs)/Regional Transmission Operators (RTOs), and the various wholesale and retail energy markets, working with the distribution utilities to provide optimization requests, pricing information, and emergency commands
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Market
Enterprise
Operation
Station
Field
Process
Transmission Energy Market Clearinghouse
ISO/RTO/TSO Balancing Authority
Hierarchical DER System Five-Level Architecture, in SGAM Format
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
DER Management System (DERMS)
Distribution Management
System (DMS)
Outage Management
System (OMS)
System to Establish Demand
Response (DR) Pricing
Transmission Bus Load
Model (TBLM)
“DER SCADA” System for Control &
Monitoring
Utility Grid
Facilities Site Loads
Circuit breaker
Meter and PCC
Level 2: Facilities DER Energy Management System (FDEMS)
Level 1: Autonomous cyber-physical DER systems
Level 5: Transmission and Market Interactions
Facilities DER Energy Management Systems
(FDEMS)
Facilities Site WAN/LAN
Utility WAN/LAN
Facilities DER Energy Management Systems
(FDEMS)
Facilities DER and LoadEnergy Management
System
PV Equipment
Electric Vehicle
PV Controller Electric Vehicle Supply Equipment
Battery Storage
Controller
Battery Diesel Generator
Diesel Controller
Distributed Energy Resources (DER) Customer PremisesTransmission Distribution
ECP ECPECPECP
Geographic Information
System (GIS)
Energy Management System (EMS)
Level 3: Utility and REP Monitoring & Control WAN Communications
Retail Energy Provider (REP) and/or DER Aggregator
Demand Response
(DR) System
REP DER & Load Management
System
Facilities Load Management
Distribution Energy Market Clearinghouse
Retail Energy Market Clearinghouse
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Level 1: Autonomous Cyber-Physical DER Systems in a Customer or Utility Site
No external communications are involved, just internal communications
between the controller and the physical device
Communication Protocols and Associated Cybersecurity Standards:• Proprietary protocols – Unknown cybersecurity• Modbus – No associated cybersecurity• BACnet – Cybersecurity left up to implementers• ANSI C12.19, 22 for metering – Cybersecurity covered in C12 standards
• IEC 61850 mapped to MMS – Cybersecurity provided by IEC 62351-3, 4, 6• IEC 61850 mapped to DNP3 – Cybersecurity covered in IEEE 1815:2012• IEC 61850 mapped to Web Services – Cybersecurity may use WS-Secure• SEP 2.0 – Cybersecurity covered in SEP 2.0• SEP 1.x – Cybersecurity covered in SEP 1.x
Utility Grid
Facilities Site Loads
Circuit breaker
Meter and PCC
Level 1: Autonomous cyber-physical DER systems
PV Equipment
Electric Vehicle
PV Controller Electric Vehicle Supply Equipment
Battery Storage
Controller
Battery Diesel Generator
Diesel Controller
ECP ECPECPECP
Xanthus Consulting International
Levels 1: Communication Protocols and Cybersecurity
• For basic DER functionality: – Proprietary protocols – Unknown cybersecurity – SEP 1.x – Cybersecurity provided in SEP 1.x, but with some issues – Modbus – No associated cybersecurity – BACnet – Cybersecurity left up to implementers
• For advanced DER functionality, use the object models from IEC 61850-7-420 and IEC 61850-90-7 mapped to different protocols, including:
– IEC 61850 mapped to Manufacturing Messaging Specification (MMS) mapping in the IEC 61850-8-1 standard – Cybersecurity provided by IEC 62351
– IEC 61850 mapped to DNP3 (IEEE 1815) with the generic mapping to IEC 61850 in IEEE 1815.1, and a specific mapping to IEC 61850-7-420 and 90-7 developed by EPRI – Cybersecurity provided by IEEE 1815
– IEC 61850 mapped to Web services mapping which will be standardized in IEC 61850-8-2 and may be OPC UA, DPWS, REST, or Web Sockets – Cybersecurity provided by WS-Security, HTTPS, and other web services security
– SEP 2.0 with a draft mapping by EPRI, but pending final release of the SEP 2.0 specification – Cybersecurity provided by SEP 2.0
• For DER revenue metering – ANSI C12.19, ANSI C12.22, and other ANSI C12.xx – Cybersecurity covered in C12 standards, with
some issues – DLMS/COSEM (in Europe and other non-North American countries)
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Level 2: DER Management System to Manage Groups of DER Systems
Facilities DER Energy Management Systems communicate with DER controllers to monitor, control, or request actions. May include multiple layers of DER Management systems.
Communication Protocols and Associated Cybersecurity Standards• Modbus – No associated cybersecurity• BACnet – Cybersecurity left up to implementers• SEP 2.0 – Cybersecurity covered in SEP 2.0• IEC 61850 mapped to MMS – Cybersecurity covered in IEC 62351
Utility Grid
Facilities Site Loads
Circuit breaker
Meter and PCC
Level 2: Facilities DER Energy Management System (FDEMS)
Level 1: Autonomous cyber-physical DER systems
Facilities DER Energy Management Systems
(FDEMS)
Facilities Site WAN/LAN
Facilities DER Energy Management Systems
(FDEMS)
Facilities DER and LoadEnergy Management
System
PV Equipment
Electric Vehicle
PV Controller Electric Vehicle Supply Equipment
Battery Storage
Controller
Battery Diesel Generator
Diesel Controller
ECP ECPECPECP
Facilities Load Management
Xanthus Consulting International
Levels 2: Communication Protocols and Cybersecurity
• For basic DER functionality: – Proprietary protocols – Unknown cybersecurity
– SEP 1.x – Cybersecurity provided in SEP 1.x, but with some issues
– Modbus – No associated cybersecurity
– BACnet – Cybersecurity left up to implementers
– OASIS EMIX, Energy Interop – No explicit cybersecurity
• For advanced DER functionality, use the object models from IEC 61850-7-420 and IEC 61850-90-7 mapped to different protocols, including:
– IEC 61850 mapped to Manufacturing Messaging Specification (MMS) mapping in the IEC 61850-8-1 standard – Cybersecurity provided by IEC 62351
– IEC 61850 mapped to DNP3 (IEEE 1815) with the generic mapping to IEC 61850 in IEEE 1815.1, and a specific mapping to IEC 61850-7-420 and 90-7 developed by EPRI – Cybersecurity provided by IEEE 1815
– IEC 61850 mapped to Web services mapping which will be standardized in IEC 61850-8-2 and may be OPC UA, DPWS, REST, or Web Sockets – Cybersecurity provided by WS-Security, HTTPS, and other web services security
– SEP 2.0 with a draft mapping by EPRI, but pending final release of the SEP 2.0 specification – Cybersecurity provided by SEP 2.0
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Level 3: Utility and REP WAN ICT Interactions with DER Systems May Include hierarchical layers of DER management systems – see following scenarios
Communication Protocols and Associated Cybersecurity• IEC 61850 mapped to MMS – Cybersecurity provided by IEC 62351• IEC 61850 mapped to DNP3 – Cybersecurity provided by IEEE 1815• IEC 61850 mapped to web services – Cybersecurity provided by WS-Secure
or other web services security• OpenADR for pricing signals – Cybersecurity not explicitly identified• NAESB Req. 21 & 22 Energy Usage and 3rd Parties – Privacy provided
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
“DER SCADA” System for Control &
Monitoring
Utility Grid
Facilities Site Loads
Circuit breaker
Meter and PCC
Level 2: Facilities DER Energy Management System (FDEMS)
Level 1: Autonomous cyber-physical DER systems
Facilities DER Energy Management Systems
(FDEMS)
Facilities Site WAN/LAN
Facilities DER Energy Management Systems
(FDEMS)
Facilities DER and LoadEnergy Management
System
PV Equipment
Electric Vehicle
PV Controller Electric Vehicle Supply Equipment
Battery Storage
Controller
Battery Diesel Generator
Diesel Controller
ECP ECPECPECP
Level 3: Utility and REP WAN Information & Communications (ICT)
Retail Energy Provider (REP) and/or DER Aggregator
REP DER & Load Management
System
Facilities Load Management
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Level 3a: DER Systems in Substations
Communication Protocols and Associated Cybersecurity Standards• IEC 61850 mapped to MMS – Cybersecurity covered in IEC 62351
Bid DER into the retail energy market
DER Architecture of Utility-Owned DER Systems in a Substation
Utility Grid
Battery Storage
Battery Storage
Controllers
Substation Power Equipment and Controls
Level 1: Autonomous cyber-physical DER systems
Level 2: Facility DER Energy Management System (FDEMS)
Substation DER Energy Management System
Level 3: Utility and REP WAN Information & Communications (ICT)
ECP
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
“DER SCADA” System for Control &
Monitoring
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Level 3b: DER Systems in Residences and Communities
Communication Protocols and Associated Cybersecurity Standards• Modbus – No associated cybersecurity• BACnet – Cybersecurity left up to implementers• SEP 2.0 – Cybersecurity covered in SEP 2.0• IEC 61850 mapped to MMS – Cybersecurity covered in IEC 62351
DER Architecture for Residential and Community DER Systems
Electric Grid
Residential or Community Home Area Network (HAN)
Level 2: Facility DER Energy Management System (FDEMS)
Customer Site Load
Circuit breaker
Meter and PCC
Level 1: Autonomous cyber-physical management of DER systems
PV Equipment Electric Vehicle
PV ControllerBattery Storage
Controller
Battery
ECP ECPECP
Residential Facility DER Energy Management
Systems (FDEMS)
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
“DER SCADA” System for Control &
MonitoringLevel 3: Utility and REP WAN Information & Communications (ICT)
Retail Energy Provider (REP) and/or DER Aggregator
REP DER & Load Management
System
Electric Vehicle Supply Equipment
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Level 3c: DER Systems in Commercial or Industrial Sites
Communication Protocols and Associated Cybersecurity Standards• Modbus – No associated cybersecurity• BACnet – Cybersecurity left up to implementers• SEP 2.0 – Cybersecurity covered in SEP 2.0• IEC 61850 mapped to MMS – Cybersecurity covered in IEC 62351
DER Architecture of Commercial and Industrial DER Systems
Commercial or Campus Building
Electric Vehicle Parking and
Charging StationSub Meter
Utility Grid
Circuit breaker
Sub Meter and DER ECP
Industrial Load
Level 2: Facility DER Energy Management System (FDEMS)
Vehicle Charging LAN
Commercial or Campus Building LAN
Electric Grid
Customer Site Load
Level 1: Autonomous cyber-physical DER systems
PV Equipment
PV Controller Battery Storage Controller
ECP ECP
Battery
Building DER Energy Management Systems EV Charging
Management Systems
Campus Facility DER Energy Management
Systems (FDEMS)
Microgrid DER Energy Management Systems
Electric Vehicle
ECP
Electric Vehicle
ECP
Sub Meter
Level 1: Autonomous cyber-physical DER systems
PV Equipment
PV Controller
Battery Controller
Battery Diesel Generator
Diesel Controller
ECP ECPECP
Main Meter and DER PCC
Sub Meter
Campus Microgrid
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
“DER SCADA” System for Control &
Monitoring
Level 3: Utility and REP WAN Information & Communications (ICT)
Retail Energy Provider (REP) and/or DER
Aggregator
REP DER & Load Management
System
Electric Vehicle Supply Equipment
Electric Vehicle Supply Equipment
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Level 3d: DER Power Plants
Communication Protocols and Associated Cybersecurity Standards• Modbus – No associated cybersecurity• BACnet – Cybersecurity left up to implementers• SEP 2.0 – Cybersecurity covered in SEP 2.0• IEC 61850 mapped to MMS – Cybersecurity covered in IEC 62351
DER Architecture of DER Power Plants
Wind Turbines
Wind Power Plant
Many DER Electrical Connection Points (ECPs)
Utility GridMain Meter and
Plant PCC
Level 2: Facilities DER Energy Management System (FDEMS)
Storage to Counter Rapid Changes in
Wind Power
Plant DER Energy Management Systems
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
“DER SCADA” System for Control &
MonitoringLevel 3: Utility and REP WAN Information & Communications (ICT)
Retail Energy Provider (REP) and/or DER Aggregator
REP DER & Load Management
System
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Level 3e: DER Virtual Power Plants (VPP)
Communication Protocols and Associated Cybersecurity Standards• Modbus – No associated cybersecurity• BACnet – Cybersecurity left up to implementers• SEP 2.0 – Cybersecurity covered in SEP 2.0• IEC 61850 mapped to MMS – Cybersecurity covered in IEC 62351
DER Architecture of Virtual DER Power Plants (VPP)
Utility Grid
Many DER Electrical Connection Points (ECPs)
Virtual Power Plants
Multiple types of DER systems
located in different areas
Level 2: Facilities DER Energy Management System (FDEMS)
Utility Grid
Virtual Plant DER Energy Management Systems
Level 3: Utility and REP WAN Information & Communications (ICT)
Retail Energy Provider (REP) and/or DER Aggregator
REP DER & Load Management
System
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Level 3f: Military Base Microgrids with DER Systems
Communication Protocols and Associated Cybersecurity Standards• Modbus – No associated cybersecurity• BACnet – Cybersecurity left up to implementers• SEP 2.0 – Cybersecurity covered in SEP 2.0• IEC 61850 mapped to MMS – Cybersecurity covered in IEC 62351
DER Architecture of Military Bases with DER Systems
Level 3: Utility and REP WAN Information & Communications (ICT)
Military Base
Electric Vehicle Parking and
Charging StationSub Meter
Utility Grid
Circuit breaker
Sub Meter and DER ECP
Military Load
Level 2: Facilities DER Energy Management System (FDEMS)
Vehicle Charging LAN
Military Building LAN
Military Grid
Military Site Load
Level 1: Autonomous cyber-physical DER systems
PV Equipment
PV Controller Battery Storage Controller
ECP ECP
Battery
Building DER Energy Management System
EV Charging Management System
Military Facilities DER Energy Management
Systems (FDEMS)
Microgrid Energy Management Systems
Electric Vehicle
Electric Vehicle Supply Equipment
ECP
Electric Vehicle
ECP
Sub Meter
Level 1: Autonomous cyber-physical DER systems
PV Equipment
PV Controller
Battery Controller
Battery Diesel Generator
Diesel Controller
ECP ECPECP
Main Meter and DER PCC
Sub Meter
Military Islanded Microgrid
Military Financial Microgrid
Electric Vehicle Supply Equipment
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
“DER SCADA” System for Control &
Monitoring
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Level 3g: Microgrid Architecture Microgrid Architecture
Building
Electric Vehicle Parking and
Charging StationSub Meter
Utility Grid
Circuit breaker
Sub Meter and DER ECP
Sub microgrid
Load
Level 2: Facility DER Energy Management System (FDEMS)
Vehicle Charging LAN
Building LAN
Electric Grid
Building Site Load
Level 1: Autonomous cyber-physical DER systems
PV Equipment
PV Controller Battery Storage Controller
ECP ECP
Battery
Building DER Energy Management Systems EV Charging
Management Systems
Microgrid Energy Management System
(microEMS)
Sub Microgrid Energy Management Systems
Electric Vehicle
ECP
Electric Vehicle
ECP
Sub Meter
Level 1: Autonomous cyber-physical DER systems
PV Equipment
PV Controller
Battery Controller
Battery Diesel Generator
Diesel Controller
ECP ECPECP
Main Meter & Microgrid Breaker
at PCC
Sub Meter
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
“DER SCADA” System for Control &
Monitoring
Level 3: Utility and REP WAN Information & Communications (ICT)
Retail Energy Provider (REP) and/or DER
Aggregator
REP DER & Load Management
System
Electric Vehicle Supply Equipment
Electric Vehicle Supply Equipment
Microgrid Breaker
Xanthus Consulting International
Level 3: Communication Protocols and Cybersecurity
• For advanced DER functionality, use the object models from IEC 61850-7-420 and IEC 61850-90-7 mapped to different protocols, including:
– IEC 61850 mapped to Manufacturing Messaging Specification (MMS) mapping in the IEC 61850-8-1 standard – Cybersecurity provided by IEC 62351
– IEC 61850 mapped to DNP3 (IEEE 1815) with the generic mapping to IEC 61850 in IEEE 1815.1, and a specific mapping to IEC 61850-7-420 and 90-7 developed by EPRI – Cybersecurity provided by IEEE 1815
– IEC 61850 mapped to Web services mapping which will be standardized in IEC 61850-8-2 and may be OPC UA, DPWS, REST, or Web Sockets – Cybersecurity provided by WS-Security, HTTPS, and other web services security
– OpenADR for demand response – No explicit cybersecurity – OASIS EMIX, Energy Interop – No explicit cybersecurity
• Customer Energy Usage provided to Third Parties – NAESB Req.18 for energy usage models – No explicit cybersecurity – NAESB Req.21 for requirements for Third Party access – No explicit cybersecurity – NAESB Req.22 for privacy for Third Party access – No explicit cybersecurity other than
the privacy
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Level 4: Utility Operational DER Management: DERMS Analysis of power system requirements for safety, reliability, and efficiency, as well as price
Communication Protocols and Associated Cybersecurity Standards• IEC 61968/ 61970 (CIM) mapped to OPC UA (IEC 62541) –
Cybersecurity covered in IEC 62541• MultiSpeak – Cybersecurity provided in MultiSpeak ver. 4• XML-based enterprise standards (HTML/ HTTP, EMIX,
OpenGIS)• Application-specific protocols
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
DER Management System (DERMS)
Distribution Management
System (DMS)
Outage Management
System (OMS)
System to Establish Demand
Response (DR) Pricing
Transmission Bus Load
Model (TBLM)
“DER SCADA” System for Control &
Monitoring
Utility WAN/LAN
Geographic Information
System (GIS)
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Level 4: Communication Protocols and Cybersecurity
• Enterprise application-to-application interactions using the Common Information Model (CIM)
– IEC 61968 for application-to-application messaging, such as between: • GIS and DMS • DMS and DERMS • OMS and DERMS • DR and DMS • DR and DERMS
– IEC 61970 for exchanges of power-flow models of the distribution system, including DER systems
– No explicit cybersecurity, but could use IEC 62541 (OPC UA) or WS-Security or other security for XML-based interactions
• MultiSpeak for similar application-to-application messaging – Cybersecurity provided by MultiSpeak ver. 4
• XML-based enterprise standards (HTML/ HTTP, EMIX, OpenGIS) – No explicit cybersecurity, but could use IEC 62541 (OPC UA) or WS-Security or other security for XML-based interactions
• Application-specific protocols – No explicit cybersecurity • Pricing signals:
– OpenADR, EMIX, and/or Energy Interop may be used for issuing pricing signals to CDEMS or larger DER systems – No explicit cybersecurity but could use WS-Security
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Level 5: ISO/RTO/TSO Interactions
Transmission Energy Market Clearinghouse
ISO/RTO/TSO Balancing Authority
Level 4: Distribution Utility Operational Analysis and Control for Grid Operations
DER Management System (DERMS)
Distribution Management
System (DMS)
Outage Management
System (OMS)
System to Establish Demand
Response (DR) Pricing
Transmission Bus Load
Model (TBLM)
“DER SCADA” System for Control &
Monitoring
Utility Grid
Facilities Site Loads
Circuit breaker
Meter and PCC
Level 2: Facilities DER Energy Management System (FDEMS)
Level 1: Autonomous cyber-physical DER systems
Level 5: Transmission and Market Interactions
Facilities DER Energy Management Systems
(FDEMS)
Facilities Site WAN/LAN
Utility WAN/LAN
Facilities DER Energy Management Systems
(FDEMS)
Facilities DER and LoadEnergy Management
System
PV Equipment
Electric Vehicle
PV Controller Electric Vehicle Supply Equipment
Battery Storage
Controller
Battery Diesel Generator
Diesel Controller
ECP ECPECPECP
Geographic Information
System (GIS)
Energy Management System (EMS)
Level 3: Utility and REP WAN Information & Communications (ICT)
Retail Energy Provider (REP) and/or DER Aggregator
Demand Response
(DR) System
REP DER & Load Management
System
Facilities Load Management
Distribution Energy Market Clearinghouse
Retail Energy Market Clearinghouse
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Mapping communication standards and their corresponding cybersecurity standards to the different DER interconnections
These include IEC standards as well as other standards
Communication Protocols and Associated Cybersecurity for the DER Domain
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Core Smart Grid Standards Used by Utilities for DER Management and Other Functions
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Customer-focused Smart Grid Standards used for Interacting with DER Systems
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IEC TC57 Architecture of Standards as Basis for IEC 62351 Series of Cybersecurity Standards (shown in IEC 62351-10)
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Phased Approach for Reaching the Ultimate Integration of DER Systems with Utility Operations
Autonomous DER operations Expanded
Monitoring & Control
Combined Field and Virtual Modeling and
Analysis Partial
Integrated Operations
Ultimate fully integrated operations
Phase 1 Phase 3 Phase 2 Integration
Phases: 1) Start with autonomous DER systems which provide volt/var management, low/high voltage ride-through, responses to frequency anomalies, etc. Use interconnection agreements to ensure appropriate autonomous settings. 2) Expand to situational awareness with hierarchical communication networks, monitoring aggregated smaller DER and direct monitoring of larger DER. Issue broadcast requests (pricing signal and/or tariff-based) and/or direct commands 3) Combine field and virtual modeling through power flow-based analysis, state estimation, contingency analysis, and other analysis applications to assess economics and reliability. 4) Ultimately integrate DER management with distribution automation, load management, and demand response for optimal power system management.
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Benefits of DER to Customers #1 • Provide cost-savings for customers:
– Through net metering, feed-in tariffs, and other tariffs, to reduce overall electricity usage and costs
– Through reducing load by increasing generation in reaction to prices in Demand Response programs
– Directly through direct market participation and/or dynamic pricing tariffs
• Provide emergency backup generation – Customers can install DER for emergency power to their
critical loads – Customers can sell emergency power into a microgrid island
which was formed due to a loss of utility power
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Benefits of DER to Customers #2 • Optimize energy usage through combined generation,
storage, and load management – Use DER Energy Management System to assess energy
needs over specific time frames, and schedule energy generation and energy usage
• Use by-products from customer industrial processes to generate and sell electricity: – Use heat to generate electricity through Combined Heating
and Power (CHP) systems, thus off-setting some of the customer’s costs.
– Provide biomass as source of gas, production of hydrogen as transportable energy.
• Participate in carbon trading: – If and when carbon trading becomes a reality, customers can
“trade” their low-carbon DER generation
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Benefits of DER to Customers #3 • Provide combined or shared cost-savings for both utilities
and customers: – Through net metering, to reduce overall electricity usage and costs – Through different types of tariffs – Through Demand Response pricing signals – Directly through direct market participation and/or dynamic pricing
tariffs – Indirectly through overall lower electricity costs due to utility gains in
efficiency
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Benefits of DER to Distribution Utility Operations #1
• Increase reliability – Provide spinning or operational reserve for local areas
– Support intentional islanding for campuses, housing developments, and industrial/commercial areas if normal energy supply is not available
• Decrease costs – Defer construction of distribution facilities through DER generation,
which acts as negative load, provides peak shaving, and supports voltage and VArs on the feeder
– Directly control DER generation to provide peak shaving to minimize start-up of costly peaker generation
– Use Demand Response or market incentives to increase DER generation during peak times
• Improve power quality – Provide smooth transitional VAr support in place of switched
capacitor banks to minimize harmonics
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Benefits of DER to Distribution Utility Operations #2
• Increase generation capacity / decrease load: – Provide energy within a substation for local generation
– Provide energy from “real” and “virtual” power plants
• Improve energy efficiency: – Provide energy close to loads, thus minimizing losses
– Provide voltage support along feeders in place of voltage regulators, so that voltage levels from the feeder substation could be lowered, while still remaining within the nominal limits
– Provide VAr support to improve power efficiency
– Support load-following of local loads to improve power efficiency
– Counteract any large non-conforming loads of the DER owner, thus providing a more stable load profile to utilities
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Benefits of DER to Transmission and ISO/RTO Operations • In aggregate, support energy balancing operations by
ISO/RTOs: – Provide VAr support to transmission system
– Provide frequency support
– Provide low/high voltage ride-through
– Support ancillary services required by the balancing authority
– Provide black start capabilities
• Improve energy efficiency: – Support “virtual” market-driven microgrids
– Decrease transmission losses by having generation closer to the loads
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Benefits of DER for Society
• Minimize carbon and pollution production:
– Renewable DER units produce less carbon dioxide, thus helping in the battle against global climate change
– Efficient re-use of “waste heat” or other by-products of industry improve the overall efficiency of energy usage
– Many DER units, including burning biomass and CHP, can also minimize non-carbon pollutants
• Meet mandated renewable portfolios:
– Many states have legislated renewable portfolios that mandate increasing use of renewable sources of energy. Most renewables to-date are small generators
• Provide “green power” for socially conscious people
– Many people are willing to pay extra for power or to off-set their carbon “footprint”