Ti E Smart Grid Overview Rh 5 05 09

Oregon TiE - Smart Grid Presentation by Roger Hicks

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TiE Oregon's Clean Energy SIG Focus on the Smart Grid

• Session 1 – May 2009– An Introduction to the Smart Grid Market

• Smart Grid Overview• Some local examples • Highlights of some opportunities to pursue

• Session 2 – Early Fall 2009?– Global smart grid activities– Taking advantage of new legislation– Some local examples

• Session 3 – Late Fall 2009?– TBD


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Meeting AgendaRoger Hicks

Business Consultant

“What is the smart grid and why should we care?”An introduction to the smart grid concept along with a summary of problems it will address and some business opportunity examples in the

emerging clean energy marketplace.

John Thornton VP Manufacturing & Supply Chain, Porteon Electric Vehicles Inc.

“Moving towards the intelligent convergence of vehicles, buildings and electric utilities.”

An overview of perspectives on the future of transportation and sustainability: electric vehicles (EVs) and the Smart Grid as enabling technologies.

Bill Sproull Sr. VP of Business Development & Customer Experience at ClearEdge Power

“Smart and Clean Distributed Generation”How clean, high efficiency - smart - distributed generation can play a role in the Smart Grid of the future and, specifically as an example,

what ClearEdge Power is doing to bring compact fuel cell combined heat and power systems to residential and commercial.

Wrap-up

“Discussion of Opportunities to Pursue”


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What Is the Smart Grid and Why Should We Care?

Roger HicksTiE Clean Energy SIG Meeting

5-5-09


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Why All This Interest In Energy?• Electricity is one of the largest and most capital-intensive sectors of the

economy. – Total asset value is estimated to exceed $800 billion, with approximately 60% invested in power

plants, 30% in distribution facilities, and 10% in transmission facilities.

• Annual electric revenues – the Nation’s “electric bill” – are about $247 billion– Paid by America’s 131 million electricity customers, which includes nearly every business and

household.– There are more than 3,100 electric utilities and additionally, there are nearly 2,100 non-utility power

producers, including both independent power companies and customer-owned distributed energy facilities.

• There are a lot of risks we face by staying on the current path.– Uncertain access to fuel resources – cost may go out of control– Increasing harm to the atmosphere – global warming may change the planet– Unpredictable power outages – cascading grid failures disrupt commerce– Poor utilization of economic capital – unnecessary cost increases for energy users

• “The grid of the future will require $165 billion over the next 20 years” - EPRI– The benefits to society will be $638 to 802 billion. The cost-benefit is 4 to 1.


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The 100 yr old Electric Power Grid Will Soon Go Through a Rapid Evolution


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It’s Time to Think Different

• While the Smart Grid will utilize the latest technology to achieve its goals, it is not just about technology.

• Implementation of the Smart Grid will require a complete rethinking of the public policy, utility business models, business processes and consumer behavior.

• This is a real paradigm shift!


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So Just What is the Smart Grid?• Sed ut perspiciatis - unde omnis iste natus error sit

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Nobody really knows yet but we sure are talking about it a lot.


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What is the Smart Grid?• According to US Department of Energy (DOE):– Smart Grid is the term used for an electricity

delivery system that is integrated with modern digital and information technology to provide improved reliability, security, efficiency and ultimately lower cost to the user.


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The Vision of the Smart Grid


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Source: NETL – A Systems View of the Modern Grid – Spring 2009Visit our website at www.netl.doe.gov/moderngrid/ to find out how you canbecome more involved in this national effort to modernize the grid.


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Benefits of the Smart Grid

• Summary of Energy-Savings & Carbon-Reduction Mechanisms Enabled by a Smart Grid

EPRI – The Green Grid


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Goals and Characteristics, Which Together Characterize a Smart Grid

From: FERC – Smart Grid Policy, March 2009

• Increased use of digital information and controls technology to improve reliability, security, and efficiency of the electric grid.

• Dynamic optimization of grid operations and resources, with full cyber-security.

• Deployment and integration of distributed resources and generation, including renewable resources.

• Development and incorporation of demand response, demand-side resources, and energy efficiency resources.

• Deployment of “smart” technologies (real-time, automated, interactive technologies that optimize the physical operation of appliances and consumer devices) for metering, communications concerning grid operations and status, and distribution automation.


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Goals and Characteristics, Which Together Characterize a Smart Grid

From: FERC – Smart Grid Policy, March 2009

• Integration of “smart” appliances and consumer devices.• Deployment and integration of advanced electricity storage and peak-

shaving technologies, including plug-in electric and hybrid electric vehicles, and thermal storage air conditioning.

• Provision to consumers of timely information and control options.• Development of standards for communication and interoperability of

appliances and equipment connected to the electric grid, including the infrastructure serving the grid.

• Identification and lowering of unreasonable or unnecessary barriers to adoption of smart grid technologies, practices, and services.


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Smart Grid Knowledge Domains

Smart Grid

AMI

DR

HAN DG

EV

T&D

RPS

C&T

FERCTOU

EMS

REP

Renewable portfolio standard

Cap and Trade

Federal Energy

Regulatory Commission

Time of Use Rates

Renewable Energy

Payments

Energy Management

Systems

Advanced Metering

Infrastructure

Demand Response

Distributed Generation

Electric Vehicles

Home Area Networks

Transmission and

Distribution


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How Utilities Respond to Peak Demand Will Change



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The Electricity Transmission Network is Going to Change


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How Systems Work Together Will Change



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Infrastructure Devices Will Change



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Communications Will Change

Smart Grid Standards Assessment andRecommendations for Adoption and

Development, February 2009Copyright © 2009 EnerNex Corporation. All rights reserved.


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22From Grid 2030 report by US DOE 2003


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Some Local Smart Grid Players• Measurement & Control– Veris Industries, Obvius– BPL Global, Powermand

• Distributed Generation & Monitoring– PV Powered, ClearEdge Power,– Azuray Technologies, Deck Monitoring

• Electric Vehicles and Infrastructure– Porteon, Shorepower Technologies


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Veris Industries

Modbus

RS-485

4-20 mA4-20 mA

Ethernet

Internet

Phone line

Internet


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Obvius


Challenges Facing the Utility Industry

Grid Efficiency

• Regulatory & environmental constraints prohibiting supply

• Central supply costs are increasing

• Distributed energy resources are expensive

Reliability

• Aging grid infrastructure

• Faults are increasing due to growing loads with age

• Challenging asset management economics

Load Management

• Demand is increasing beyond supply capacity

• Metering infrastructure is inadequate for data needs

• Growth is where supply is not

Grid Communications

• Systems not prepared for emerging applications

• Limited network management capability

• Inadequate communications

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BPL Global’s Solutions

PremiseMeet peak demand for

~1/3 the cost of new generation

Distributed Energy Resource Integration and Management Integrate and optimize renewable sources of supply and storage

Substation SolutionsExtend asset life and

improve reliability

•Power SG® - Integration and collaboration

Fault Location and Asset ProtectionIdentify and isolate faults to improve reliability

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Substation Residential and C&I Demand

DistributionGrid

Distributed RenewableGeneration & Storage

DistributionGrid


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PV Powered’s SEGIS Award

• PV Powered was awarded one of 12 contracts after a competitive solicitation process that attracted 27 applications

• Total US DOE funding to PV Powered is worth up to $5M• The PV Powered project addresses five technology areas:

– Customized suite of PV material-specific MPPT algorithms– Integration with commercial/industrial energy management (EMS)

systems – Integration with utility Advanced Metering Infrastructure (AMI)

devices to enable a two-way interactive grid relationship– Mitigation of issued associated with weather induced transients– Smart string combiner tightly integrated with inverter


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Where is the Smart Grid on The Hype Cycle?


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Is It Time for the Smart Grid?

Reasons to be excited– We are at an inflection point– Innovation is needed to

unlock value– It’s a long term movement– There is a large ecosystem – Gov’t is favorable and

throwing money at it– Alternatives are unattractive– Lot’s of hype right now

Reasons to be cautious– It’s a stimulus driven market– Old industries change slowly– The value proposition is

unproven– The benefits to consumers

are indirect– Payback cycles are long– It’s a complex combination of

technology, policy, businesses and relationships


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Source: PNNL

It’s Time to Deliver the Smart Grid


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Thank YouContact Me If You Want to Know More about Smart Grid Opportunities

[email protected]


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Backup


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What is the Smart Grid?• According the Federal Energy Regulation Commission (FERC)

– “The Smart Grid means a lot of things, but for us, the Smart Grid means a more efficient transmission system that can reduce emissions and increase reliability,” FERC Commissioner Philip Moeller said. “For example, by minimizing line losses, Smart Grid technologies will allow generators to produce less energy and less pollution, while delivering the same amount of electricity to customers.”

• According to Electric Power Research Institute (EPRI)– The term Smart Grid may be best understood as the overlaying of a

unified communications and control system on the existing power delivery infrastructure to provide the right information to the right entity (e.g. end-use devices, T&D system controls, customers, etc.) at the right time to take the right action.

– It is a system that optimizes power supply and delivery, minimizes losses, is self-healing, and enables next-generation energy efficiency and demand response applications.


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What Is the Smart Grid?

• According to PJM - a Regional Transmission Operator:– Transitioning the grid from a radial system to a true network to

ensure connectivity from generation sources to end-use customers.– Converting from an electro-mechanical to a fully digital system to

support information and automation-enabled assets– Enabling two-way communication within the grid community so

that customers can, if they choose, move from passive to active participation in the marketplace.

• According to Oracle– An electricity delivery infrastructure that leverages advancements in IT,

communications technology, and energy technology to improve delivery utilization/resilience and empower consumers to address environmental concerns


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• According to Capgemini consulting:

Nobody can tell you today exactly what technologies the future Smart Grid will incorporate but we have been able to compile a list of key characteristics. We expect each utility to have its own version of the Smart Grid but it is clear it will have the following characteristics:– Autonomous restoration– Resist attacks – both physical and cyber– Supports distributed resources – (generation, storage, demand reduction)– Supports renewable energy sources– Provides for power quality– Provides for security of supply– Supports lower operations costs– Minimizes technical losses– Minimizes manual maintenance and intervention.

Capgemini Report - Smart Grid: Leveraging Technology to Transform T&D Operating Models

What is the Smart Grid?


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Smart Grid Ingredients

Capgemini


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43NETL – A Vision For a Modern Grid www.netl.doe.gov/moderngrid

Ti E Smart Grid Overview Rh 5 05 09

Technology

Transcript of Ti E Smart Grid Overview Rh 5 05 09