Observations on Smart Grid in the United States

Prepared for

Chile: Smart Grid Technologies and Policy Reverse Trade Mission

James T. Reilly Consultant

August 21, 2011

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EIA Base Case 2008

Technology EIA 2008 Reference Target

Efficiency Load Growth ~ +1.2%/yr Load Growth ~ +0.75%/yr

Renewables 60 GWe by 2030 100 GWe by 2030

Nuclear Generation 20 GWe by 2030 64 GWe by 2030

Advanced Coal Generation

No Existing Plant Upgrades

40% New Plant Efficiency

by 2020–2030

130 GWe Plant Upgrades

46% New Plant Efficiency

by 2020; 49% in 2030

CCS None Widely Deployed After 2020

PHEV None 10% of New Vehicle Sales by 2017;

+2%/yr Thereafter

DER < 0.1% of Base Load in 2030 5% of Base Load in 2030

Goal:

CO2 Reduction

• Expanded Advanced Light Water

Reactor Deployment

• Enabling Efficiency, PHEVs, DER

via the Smart Distribution Grid

• Enabling Intermittent Renewables

via Advanced Transmission Grids

• Advanced Coal Plants with CO2

Capture and Storage

EfficientBuildingSystems

UtilityCommunications

DynamicSystemsControl

DataManagement

DistributionOperations

DistributedGeneration& Storage

Plug-In Hybrids

SmartEnd-UseDevices

AdvancedMetering

Consumer Portal& Building EMS

Internet Renewables

PV

ControlInterface

Heat Pump Water Heaters

Variable Refrigerant FlowAir Conditioning

Ductless Residential Heat Pumps and Air Conditioners

Hyper-EfficientResidential Appliances

LED Street and

Area Lighting

Efficient Data Centers

Low-Emissions Technologies

Key Drivers for Smart Grid

• Optimization of energy supply and demand

• Integration of Renewable Generation and Distributed Energy

Resources

• Platform for new energy devices and applications for more

efficient use of energy

– Real-time consumption information and pricing

– Active demand management

• Improvement of grid reliability and responsiveness

– Real-time intelligence and control

– Outage prevention and recovery

IntelliGrid

Electrical

Infrastructure

Intelligence Infrastructure

Integrated Energy and Communications System Architecture – 2001 Rev 0 Architecture – 2004

Source: NIST Smart Grid Framework 1.0, September 2009

Smart Grid Domains

Technologies of Interest

Themes

Direction To date, the smart grid in the United States has been dominated by smart

metering and as an enabler for demand management. Now, the direction is turning towards being an enabler for the integration of renewables into distribution networks and the bulk power system.

Standards The NIST Smart Grid Interoperability Panel (SGIP) is the primary forum for

the identification of standards for the smart grid and, as such, addresses issues in the areas of communications, data exchange, and the interconnection of distributed energy resources.

Research The focus of smart grid related research in the U.S. is on solutions for

integrated systems and energy storage.

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Evolution of Smart Grid

• Customer Service / Cost Savings initial AMI deployments (2000 to 2008)

• Demand Management expanded AMI deployments (2009 to 2010)

• Integration of Renewable Energy demonstration and pilot projects (2010)

• Smarter Transmission Grid NASPInet interoperability demo (2011)

Regulatory Framework

• Public Utility Commissions within state boundaries, primarily distribution

• Federal Energy Regulatory Commission interstate transmission; wholesale markets

• Nuclear Regulatory Commission nuclear power plants

• North American Electric Reliability Corporation electric reliability organization; critical infrastructure protection committee

Renewable portfolio standard

Renewable portfolio goal

Solar water heating eligible

Extra credit for solar or customer-sited renewables

Includes non-renewable alternative resources

WA: 15% x 2020*

CA: 33% x 2020

NV: 25% x 2025*

AZ: 15% x 2025

NM: 20% x 2020 (IOUs)

10% x 2020 (co-ops)

HI: 40% x 2030

Minimum solar or customer-sited requirement

TX: 5,880 MW x 2015

UT: 20% by 2025*

CO: 30% by 2020 (IOUs) 10% by 2020 (co-ops & large munis)*

MT: 15% x 2015

ND: 10% x 2015

SD: 10% x 2015

IA: 105 MW

MN: 25% x 2025 (Xcel: 30% x 2020)

MO: 15% x 2021

WI: Varies by utility;

~10% x 2015 statewide

MI: 10% & 1,100 MW

x 2015*

OH: 25% x 2025†

ME: 30% x 2000 New RE: 10% x 2017

NH: 23.8% x 2025

MA: 22.1% x 2020 New RE: 15% x 2020

(+1% annually thereafter)

RI: 16% x 2020

CT: 23% x 2020

NY: 29% x 2015

NJ: 20.38% RE x 2021

+ 5,316 GWh solar x 2026

PA: ~18% x 2021†

MD: 20% x 2022

DE: 25% x 2026*

DC: 20% x 2020

NC: 12.5% x 2021 (IOUs)

10% x 2018 (co-ops & munis)

VT: (1) RE meets any increase in retail sales x 2012;

(2) 20% RE & CHP x 2017

KS: 20% x 2020

OR: 25% x 2025 (large utilities)*

5% - 10% x 2025 (smaller utilities)

IL: 25% x 2025

29 states +

DC and PR have an RPS

(8 states have goals)

OK: 15% x 2015

PR: 20% x 2035

WV: 25% x 2025*†

VA: 15% x 2025*

DC

IN: 15% x 2025†

Renewable Portfolio Standards

Source: Interstate Renewable Energy Council (August 2011)

† *

Federal Policy

• Title XIII – Energy Independence and Security Act of 2007 (EISA)

– SMART GRID ADVISORY COMMITTEE AND SMART GRID TASK FORCE

– SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION

– SMART GRID INTEROPERABILITY FRAMEWORK

– STATE CONSIDERATIONS OF SMART GRID

• Title IV – American Recovery and Reinvestment Act of 2009 (ARRA)

– SMART GRID DEMONSTRATION PROJECTS

– SMART GRID INVESTMENT GRANTS

• 128 FERC ¶ 61,060 Smart Grid Policy (Issued July 16, 2009)

NIST Role in Smart Grid

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Energy Independence and Security Act (EISA) of 2007 Title XIII, Section 1305.

Smart Grid Interoperability Framework

In cooperation with the DoE, NEMA, IEEE, GWAC, and other stakeholders, NIST has “primary responsibility to coordinate development of a framework that includes protocols and model standards for information management to achieve interoperability of smart grid devices and systems…”

ARRA Smart Grid Investment Grants

Category

Description

#

Award

($ million)

1 Advanced Metering Infrastructure 31 818

2 Customer Systems 5 32

3 Electric Distribution Systems 13 254

4 Electric Transmission Systems 10 148

5 Equipment Manufacturing 2 26

6 Integrated and/or Crosscutting Systems 39 2,211

TOTAL 100 3,489

ARRA Investment Grants – AMI

Category 1 $ 818 million

Category 6 $1,410 million

Total grants – AMI $2,228 million AMI-related projects represent 64% of total

investment grants.

Total number of smart meters in U.S. by 2012: 16.3 million – approx. 11% of total meters

Source: Assessment of Demand Response and Advanced Metering, Staff Report, Federal Energy Regulatory Commission 2006, 2008, 2010

AMI meters vs. total meters penetration of advanced metering

AMI – solid state meters / two way communications

Advanced Metering Infrastructure

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Year AMI Meters Total Meters

2010 12,828,363 147,709,399 8.7%

2008 6,733,151 144,385,392 4.7%

2006 947,224 141,994,039 0.7%

Smart Grid Landscape

Concepts Devices Applications Measurement/Data Communications

• Interconnection-wide

reliability coordinator

• Synchrophasors and

PMU concentrators

• State Estimator and

Contingency Analysis

• Voltage and current

angle differences

• Precision time

protocols

• Interconnection-wide

state estimator

• Wholesale and

customer smart meters

• Wide-area situational

awareness

• Voltage and current

phasors and DLR

• Information

management protocols

• Smart grid cyber

security and definitions

• Intelligent end devices

(IEDs)

• Event detection • Frequency • Wide-area networks

and communications

• Interoperability • Switched/controllable

capacitor banks

• Disturbance location • Three-phase AC

voltage and/or current

• Field area networks

and communications

• Electricity storage • Digital fault recorders • Dynamic Ratings • Power system modeling

and real-time data from

• Premises networks and

communications

• Emergency control • Plug-in electric vehicles • Pattern recognition •Meter data common

profiles

• Wireless

communications

• Substation automation • Power quality meters • Protection systems • Dynamic Line Ratings • Substation LANs

• Device and end-to-end

testing

• Direct control load

management

• Remedial action • Global Positioning

System

• Training • DLR for operations • Demand Response • Encryption

• Wind generation • Tension and Sag

measurement

• Automatic meter

reading

• Phasor Management

Networks

• Voltage/reactive control

• Operator training

•Data storage and

retrieval

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Characteristics of the Future Power Delivery System

• Interactive with consumers and markets

• Self-Healing and Adaptive

• Optimized to make best use of resources and equipment

• Predictive rather than reactive, to prevent emergencies

• Accommodates a variety of generation options

• Integrated, merging monitoring, control, protection, maintenance, EMS, DMS, marketing, and IT

• Cyber Secure

Reilly Associates PO Box 838 Red Bank, NJ 07701 Telephone: (732) 706-9460 Email: j_reilly@verizon.net