Smart Grid Tutorial - Office of Technology Services...

Department of Chemical and Biological EngineeringDepartment of Chemical and Biological Engineering

Illinois Institute of TechnologyIllinois Institute of Technology

Smart Grid Tutorial: Smart Grid Tutorial: What? Why? How?What? Why? How? and Who?and Who?

Donald J. Chmielewski

Associate Professor Department of Chemical and Biological Engineering

Illinois Institute of Technology



Presentation OutlinePresentation Outline

What is the smart grid?

Why would the chemical industry be interested?

How does one participate in the smart grid?

Who should participate in the smart grid?

2



What is the Smart Grid?What is the Smart Grid?

A smart grid is an electrical grid that uses information and

communications technology to gather and act on information,

such as information about the behaviors of suppliers and

consumers, in an automated fashion to improve the efficiency,

reliability, economics, and sustainability of the production and

distribution of electricity.

Wikipedia:

3




The electric industry is poised to make the transformation

from a centralized, producer-controlled network to one that is

less centralized and more consumer interactive.

The move to a smarter grid promises to change the

industry’s entire business model and its relationship with

all stakeholders, involving and affecting utilities, regulators,

energy service providers, technology and automation vendors

and all consumers of electric power.

DOE Smart Grid Primer:

4




By integrating an end-to-end, advanced communications

infrastructure into the electric power system, a Smart Grid can

provide consumers near real-time information on their energy

use, support pricing that reflects changes in supply and

demand, and enable smart appliances and devices to help

consumers avoid higher energy bills.

NIST SMART GRID COLLABORATION WIKI:

5




6




7



8

Gas Turbines

Coal Fired

Nuclear

What’s wrongWhat’s wrong with the Dumb Gridwith the Dumb Grid??

Consumer Demand

Consumers

http://www.google.com/imgres?imgurl=http://www.alternate-energy-sources.com/images/nuclearreactionhow2.JPG&imgrefurl=http://www.alternate-energy-sources.com/how-does-nuclear-energy-work.html&usg=__7w4UXeohCGnxmHjspFQn3Mk1LjY=&h=322&w=371&sz=21&hl=en&start=1&zoom=1&itbs=1&tbnid=EdexGueWvIH62M:&tbnh=106&tbnw=122&prev=/images?q=nuclear+energy&tbnid=EdexGueWvIH62M:&tbnh=0&tbnw=0&hl=en&sa=X&gbv=2&imgtype=i_similar&tbs=isch:1




9

Gas Turbines

Coal Fired

Nuclear


Consumer Demand

Consumers

If demand is low then few generators

needed





10

Gas Turbines

Coal Fired

Nuclear


Consumer Demand

Consumers

If demand is high then many generators

needed





11

Gas Turbines

Coal Fired

Nuclear


Consumer Demand

Consumers

Renewable Sources





12

Gas Turbines

Coal Fired

Nuclear


Consumer Demand

Consumers

If demand is low and wind is high then almost no generators needed

Renewable Sources





13

Gas Turbines

Coal Fired

Nuclear


Consumer Demand

Consumers

If demand is high and wind is low then all generators needed

Renewable Sources





14

Gas Turbines

Coal Fired

Nuclear

SomeSome Solutions to the Solutions to the DispatchDispatch ProblemProblem

Consumer Demand

Consumers

Renewable Sources

Massive Energy Storage

Consumer Flexibility

Advanced Communication Network

The Smart Grid










15



MotivatingMotivating ConsumerConsumer FlexibilityFlexibility

16



17

Consumers

Consumers

Consumers

Centralized Power Systems Centralized Power Systems Gas Turbines

Coal Fired

Nuclear

Renewables

Electric Utility





18

Consumers

Consumers

Consumers

DeregulatedDeregulated Power SystemsPower Systems Gas Turbines

Coal Fired

Nuclear

Renewables

I S O

Independent System Operator





19

• Managed by an Independent System Operator (ISO)

• Auction based rather than centralized decisions

• Pay as highest accepted bid (usually)

Deregulated Power SystemsDeregulated Power Systems



20

Cost of Power GenerationCost of Power Generation

0 200 400 600 800 10000

10

20

30

40

50

Power Output (MW)

Op

erati

ng C

ost

s ($

/hr)

Coal Plant

Gas Turbine



21

Price of ElectricityPrice of Electricity

0 200 400 600 800 10000

10

20

30

40

50

Power Output (MW)

Ele

ctr

icit

y P

ric

e (

$/M

Wh

r)

Coal Plant

Gas Turbine

If demand

is 600MW

then, electricity

price is $18/MW-hr



22

Price of ElectricityPrice of Electricity

0 200 400 600 800 10000

10

20

30

40

50

Power Output (MW)

Ele

ctr

icit

y P

ric

e (

$/M

Wh

r)

Coal Plant

Gas Turbine

If demand

is 1200MW

then, electricity

price is $33/MW-hr



23

RealReal--time Pricing for Electricity time Pricing for Electricity

PJM Western Hub, Day-Ahead prices: June 1, 2001 through June 20, 2001,

http://www.pjm.com/markets-and-operations/energy/day-ahead/day-ahead-historical.aspx

0 2 4 6 8 10 12 14 16 18 200

20

40

60

80

time (days)

En

erg

y V

alu

e

($/M

Wh

r)

6 6.5 7 7.5 8 8.5 9 9.5 100

20

40

time (days)

En

erg

y V

alu

e

($/M

Wh

r)



24

RealReal--time Pricing for Electricity time Pricing for Electricity

Texas Hub: July 2012

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

20

40

60

80

Time (days)

Ele

ctri

city

Pri

ce (

$/M

Wh

r)

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

500

1000

1500

2000

Time (days)

Ele

ctri

city

Pri

ce (

$/M

Wh

r)



25

Consumers

Consumers

Consumers

LoadLoad--Serving Entity Serving Entity Gas Turbines

Coal Fired

Nuclear

Renewables

I S O

LSE

LSE

LSE

Electricity price to consumers is the annual average





26

• Average price includes price spikes

• Flexible consumers can beat the average by

avoiding spikes

• Flexible consumers can beat the average by

exploiting low price periods

• Real-time prices might be imposed on

consumers, so now is the time to prepare

Why ofWhy of Interest to theInterest to the Chemical Industry?Chemical Industry?








27







Power Generation Example

HVAC Example

Chemical Plant Example


28



Integrated Gasification Combined CycleIntegrated Gasification Combined Cycle

29



30

Integrated Gasification Combined Cycle Integrated Gasification Combined Cycle

with Dispatch Capability with Dispatch Capability

Storage Tank

vH2,S Gasification Block

PG Power Block

vH2,G

vcoal

vH2

2 2

max

2 2

max

/

0

0

H H G

H H

G G

M P

M M

P P

PG = β vH2,G



Economic Model Predictive Control Economic Model Predictive Control

,

min max

min g , ,

. . ( , , )

( , , )

( )

t T

x ut

x u w d

s t x f x u w

z h x u w

z z z

, ,g x u w

Economic Objective

- (Instantaneous Profit)



Literature on EconomicLiterature on Economic MPCMPC

32

Conceptual Development and Stability Issues: Rawlings and Amrit (2009); Diehl, et al. (2011); Huang and Biegler (2011); Heidarinejad, et al. (2012)

Process Scheduling: Karwana and Keblisb (2007); Baumrucker and Biegler (2010); Lima et al. (2011); Kostina et al. (2011)

Building HVAC Systems: Braun (1992); Morris et al. (1994); Kintner-Meyer and Emery (1995); Henze et al. (2003); Braun (2007); Oldewurtel et al. (2010), Ma et al. (2012); Mendoza and Chmielewski (2012)

Power Scheduling: Zavala et al. (2009); Xie and Ilić (2009), Hovgaard, et al. (2011), Omell and Chmielewski (2013)



EMPC Applied to IGCC with Dispatch EMPC Applied to IGCC with Dispatch

2 2

max

2 2

max

min

. . /

0

0

G

t T

e GP

t

H H G

H H

G G

C P d

s t M P

M M

P P

( )eC t is the cost (or value) of electricity

33



34

EMPC Applied to IGCC withEMPC Applied to IGCC with DispatchDispatch

0 1 2 3 4 5 6 7 8 9 100

20

40

Energ

y V

alu

e

($/M

Whr)

0 1 2 3 4 5 6 7 8 9 100

500

1000

1500

Genera

ted P

ow

er

(MW

)

0 1 2 3 4 5 6 7 8 9 100

500

1000

Time (days)

H2 in

Sto

rage (

tonnes)







Power Generation Example

HVAC Example

Chemical Plant Example


35



HVAC Power ConsumptionHVAC Power Consumption

Cooling is mainly required during the hottest times of a day…

Outside Temperature. August 3 - 6, 2001. Pittsburg, PA.

3 4 5 6 760

70

80

90

100

Time (days)

Tem

per

atu

re (

F)

36



Traditional HVAC SystemTraditional HVAC System

Heat from

BuildingBuilding

Heat from

Environment

Power

Consumption Chiller

• Heat is removed from the building by a chiller

• Chiller consumes electric power

• Heat removal correlated with real-time electricity prices

37



Correlation Between Cooling Load and Correlation Between Cooling Load and

Energy Prices Energy Prices

3 4 5 6

70

80

90

Time (hours)

Tem

per

atu

re (

F)

3 4 5 60

50

100

150

Time (days)

Ele

ctri

city

Pri

ce (

$/M

Wh

r)

August 3 - 6, 2001. Pittsburg, PA.

38



Thermal Energy Storage (TES)Thermal Energy Storage (TES)

TES helps time

shift electricity

consumption to

periods of low

electricity prices.

39



Impact of ThermalImpact of Thermal Energy StorageEnergy Storage

Heat from

BuildingBuilding

Heat from

Environment

Power

Consumption Chiller

Heat to

TES

Thermal

Energy Storage

Heat to

Chiller

Heat from

BuildingBuilding

Heat from

Environment

Power

Consumption Chiller

Heat to

Chiller

23 24 25 26

200

300

400

500

600

Chiller Cooling Load (Qc)

Time (days)

Hea

t F

low

(K

We)

Qc

Qr

23 24 25 26

200

300

400

500

600


Time (days)H

eat

Flo

w (

KW

e)

Qc

Qr

23 24 25 26

2000

4000

6000

Time (days)

Hea

t F

low

(K

We)

Heat to Chiller Heat from Room

Heat from

BuildingBuilding

Heat from

Environment

Power

Consumption Chiller

Heat to

TES

Thermal Energy Storage

Heat to

Chiller

23 24 25 26

200

300

400

500

600


Time (days)

Hea

t F

low

(K

We)

Qc

Qr

40



EMPC SimulationEMPC Simulation with TESwith TES

41

0 20 40 60 80 100 120 14020

30

40

Time (hours)

Ou

tsid

e

Tem

peratu

re (

C)

0 20 40 60 80 100 120 140

40

60

80

100

120

140

Time (hours)

Ele

ctr

icit

y

Pric

e (

$/M

Wh

r)

0 20 40 60 80 100 120 140

0

200

400

600

Time (hours)

Hea

t to

C

hil

ler (

kW

T)

0 20 40 60 80 100 120 140

-2000

-1000

0

Time (hours)

En

erg

y i

n

Sto

ra

ge (

MW

hr T

)

0 20 40 60 80 100 120 140

0

200

400

600

800

Time (hours)H

ea

t fr

om

R

oo

m (

kW

T)

0 20 40 60 80 100 120 14020

22

24

26

Time (hours)

Tem

peratu

re

in R

oom

(C

)

Heat from

BuildingBuilding

Heat from

Environment

Power

Consumption Chiller

Heat to

TES

Thermal

Energy Storage

Heat to

Chiller Note: EMPC Prediction Horizon is

12 hours








42



WhoWho should participate in the Smart Grid?should participate in the Smart Grid?

Those with revenue gains larger

than investment costs!

43



Impact of ThermalImpact of Thermal Energy StorageEnergy Storage

Heat from

BuildingBuilding

Heat from

Environment

Power

Consumption Chiller

Heat to

TES

Thermal

Energy Storage

Heat to

Chiller

Heat from

BuildingBuilding

Heat from

Environment

Power

Consumption Chiller

Heat to

Chiller

23 24 25 26

200

300

400

500

600


Time (days)

Hea

t F

low

(K

We)

Qc

Qr

23 24 25 26

200

300

400

500

600


Time (days)H

eat

Flo

w (

KW

e)

Qc

Qr

23 24 25 26

2000

4000

6000

Time (days)

Hea

t F

low

(K

We)


Heat from

BuildingBuilding

Heat from

Environment

Power

Consumption Chiller

Heat to

TES


Heat to

Chiller

23 24 25 26

200

300

400

500

600


Time (days)

Hea

t F

low

(K

We)

Qc

Qr



Capital Cost of Thermal Energy StorageCapital Cost of Thermal Energy Storage

45

??$$$



Design Questions Design Questions

• What are the energy expenditures?

• What is the appropriate size of the TES?

• Is there a benefit to changing chiller size?

Heat from

BuildingBuilding

Heat from

Environment

Power

Consumption Chiller

Heat to

TES


Heat to

Chiller

23 24 25 26

200

300

400

500

600


Time (days)

Hea

t F

low

(K

We)

Qc

Qr

23 24 25 26

2000

4000

6000

Time (days)

Hea

t F

low

(K

We)


46



Equipment costs: Chiller: Cc = 500 $/kWe TES: Cs = 28.4 $/kWThr

Present value parameters:

ri = 7% n = 30yrs

nii

frr

PV)1(

11

124365

47

Chiller and TES Sizing Chiller and TES Sizing



Sce

($/MWhr)2 Es

max (MWThr)

Pcmax

(kWe)

202 0.05 113.8

452 1.15 106.5

48

28.4 $/kWThr for the TES is too expensive

Chiller and TES Sizing Chiller and TES Sizing



Hot Oil Utility

P1

P2

P3

P4

Hot Oil Based

Utility Plant

Electric Grid

Utility Plant Configuration Utility Plant Configuration

49



Hot Oil Utility PlantHot Oil Utility Plant

50

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)



Utility Plant with Electric Power OptionUtility Plant with Electric Power Option

51

Electric

Heater

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)



Energy Costs in 2005Energy Costs in 2005

52

0 100 200 300

0

50

100

150

Day ofthe Year

En

erg

y C

ost

($

/MW

hr)

Energy Costs 2005

Electricity

Natural Gas




53

0 100 200 300

0

50

100

150

Day ofthe Year

En

erg

y C

ost

($

/MW

hr)

Energy Costs 2008

Electricity

Natural Gas




54

0 100 200 300

0

50

100

150

Day ofthe Year

En

erg

y C

ost

($

/MW

hr)

Energy Costs 2012

Electricity

Natural Gas



Energy CostsEnergy Costs –– Three Sample YearsThree Sample Years

55

0 100 200 300

0

50

100

150

Day ofthe Year

En

ergy C

ost

($/M

Wh

r)

Energy Costs 2012

Electricity

Natural Gas

0 100 200 300

0

50

100

150

Day ofthe YearE

ner

gy C

ost

($/M

Wh

r)

Energy Costs 2008

Electricity

Natural Gas

0 100 200 300

0

50

100

150

Day ofthe Year

En

erg

y C

ost

($

/MW

hr)

Energy Costs 2005

Electricity

Natural Gas



Operating Profiles in 2005Operating Profiles in 2005

56

55 56 57 58 59 60 61 62 63 64 65

0

50

100

150

Day ofthe Year

En

ergy R

ate

(M

W)

or

Cost

($/M

Wh

r)2005

Electricity Cost Fuel Cost Electric Power Fuel Usage

0 1 2 3 4 5 6 7 8 9 10

0

50

100

150

Day ofthe Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r) 2005

Electricity Cost Fuel Cost Electric Power Fuel Usage



Comparison of 2008 and 2012Comparison of 2008 and 2012

57

0 1 2 3 4 5 6 7 8 9 10

0

50

100

150

Day ofthe Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r) 2012

Electricity Price Fuel Price Electric Power Fuel Usage

170 171 172 173 174 175 176 177 178 179 180

0

50

100

150

Day of the Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r) 2008

Electricity Price Fuel Price Electric Power Fuel Usage



Annual Operating Costs (in millions)Annual Operating Costs (in millions)

58

2005 2008 2012

Baseline $37.4 $32.9 $18.8

With Electric

Heater $33.7 $30.3 $18.3

Savings $3.7 $2.6 $0.5

Percent Savings 10% 8% 3%



Electric Heaters Electric Heaters

59

http://www.armstrong-chemtec.com



Cost of Electric Heaters Cost of Electric Heaters

60

Cost of 5MW electric heater is $1.1 million

Installed cost of 5MW heater is $3.3million

If economy-of-scale is linear, then

o 35MW installed is $23.1 million

If economy-of-scale is 0.6 rule, then

o 35MW installed is $10.6 million



Economic AnalysisEconomic Analysis

61

2005 2008 2012

Savings from

electric heater $3.7 $2.6 $0.5

Heater Cost

(Linear EOS) $23.1 $23.1 $23.1

Payback (years) 6.2 8.8 46

Heater Cost

(0.6 Rule EOS) $10.6 $10.6 $10.6

Payback (years) 2.8 4.1 21



Alcoa Alcoa and Aluminum Smelting and Aluminum Smelting

62

• 40% of Costs to Produce Aluminum is Electricity

• Production is Directly Proportional to Power Input

• Process Focused Demand Response – Not Aux. Load



Evolution of Alcoa Demand ResponseEvolution of Alcoa Demand Response

63

Dynamic Demand

Response

300

350

400

450

500

550

May 31, 2011 - 70 MW's of Direct Load Control

300

350

400

450

500

55024 Hrs of Traditional Operations (470 MW)

Base Load Consumption

Smelting provides

steady 24/7 grid load

Limited collaboration

with energy system

0

100

200

300

400

500

600

24 Hr Load Profile with Reliability Interruption

Traditional Demand

Response

Alcoa provides emergency

shutdown capability

Smelter a last resort

ancillary service

MISO remotely controls 75

MW of smelter load in real

time

Enables dynamic grid

regulation



Utility Plant with Electric Power OptionUtility Plant with Electric Power Option

64

Electric

Heater

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)



ConclusionsConclusions What is the smart grid?

Demand Response!


Lower Energy Costs!


Economic MPC!


Those with positive Net Present Value!

65



66

AcknowledgementsAcknowledgements

Current and Former Students:

Jianyuan Feng Avery Brown

Benjamin Omell David Mendoza-Serrano

Oluwasanmi Adeodu Ming Yang (Taiwan Electric)

Collaborators and Personal Communications:

Dennis O’Brien (Jacobs)

Kiran Sheth and Don Bartusiak (ExxonMobil)

Funding:

National Science Foundation (CBET – 0967906)

Wanger Institute for Sustainable Engineering Research (IIT)

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