E N E R G YE N E R G Y
Delivering BenefitsDelivering Benefitswith a Smarter Grid
©2011 N i t C lti I
Navigant Reference: 850179
©2011 Navigant Consulting, Inc.
D I S P U T E S & I N V E S T I G AT I O N S • E C O NO M I C S • F I N A N C I A L A D V I S O RY • M A N A G E M E N T C O N S U LT I N G
Navigant Smart Grid Service Offerings
Navigant works with clients to develop Smart Grid strategies and implement Smart Grid programsimplement Smart Grid programs.
CompetenciesService Offerings CompetenciesVisioning Process and Strategic Objective
Development
Total Value Assessment and Dynamic Rates A aly i
Service OfferingsSMART GRID STRATEGY
Analysis
Business Analysis and Business Case Development
Strategic Option and Planning Development
Vision & Strategy
Business Case
e e op e t
PMO/ Construction Management / EVM
ARRA Reporting and ComplianceSMART GRID IMPLEMENTATION
Customer Interface and Change Management
IT / Systems Integration / Cyber Security
Smart Grid and Distribution Technology
Implementation Planning
Smart Grid Implementation
Monitoring & Evaluation
1©2011 Navigant Consulting, Inc.E N E R G Y
IT / Systems Integration / Cyber Security
We are entering the “Second Wave” of smart grid deployments where d d t di f th b i ill b iti l
Smart Grid Deployment Waves
deeper understanding of the business case will become critical.
Se o d Wa e
Future Waves“Addressing Strategic Needs”
Second Wave“Understanding the Business Case”
stment
• Targeted
First Wave“Laying the Foundation
and Learning”• Scaling up deployment• More rigorous business casesR
ate of Inves Targeted
deployment• Gradual build‐out• Continuous
cases• Cost recovery• Demonstrating value
Cumulative R
• Pilot programs and demos
improvement
C • Pilot programs and demos• Government incentives and subsidies
• Regulatory mandates
2©2011 Navigant Consulting, Inc.E N E R G Y
2015 20202005
Smart Metering and Advanced Metering Infrastructure
Smart metering and Advanced Metering Infrastructure will allow utilities and their customers to manage electricity consumptionutilities and their customers to manage electricity consumption.
Functionality• Real‐time load measurement and management by utilities
• Optimization of electricity p yusage by customers
BenefitsBenefits• Peak demand reduction• Lower meter reading and operations costoperations cost
• Faster restoration of power after outages
Sources: Elster, Navigant
3©2011 Navigant Consulting, Inc.E N E R G Y
Distribution Automation
Distribution automation technologies are being implemented improve reliability increase operational efficiency and save energyreliability, increase operational efficiency, and save energy.
Functionality• Feeder switching and reconfiguration
• Voltage controlg• Equipment health monitoring
BenefitsBenefits• Lower distribution operations and maintenance costs
• Higher reliability and power• Higher reliability and power quality
• Energy savings from customer equipment and distribution
Sources: S&C Electric, Cooper Power Systems
4©2011 Navigant Consulting, Inc.E N E R G Y
equipment and distribution
SynchroPhasor Technology
SynchroPhasor technology will monitor electrical conditions across regional grids and deliver that information to operatorsregional grids and deliver that information to operators.
Functionality• Wide area monitoring• System visualization• Advanced control applications• Advanced control applications
BenefitsBenefits• Higher grid reliability• Reduced transmission congestioncongestion
• Better management of variable renewable energy resources
Sources: Southern California Edison, Schweitzer Engineering Laboratories
5©2011 Navigant Consulting, Inc.E N E R G Y
DOE ARRA Smart Grid Programs
DOE’s ARRA Smart Grid Investment Grant and Demonstration programs have been a critical catalyst for US smart grid deploymentprograms have been a critical catalyst for US smart grid deployment.
Smart Grid Investment Grant Program Smart Grid Demonstration Program
American Recovery and Reinvestment Act Smart Grid Programs
• $3.4 billion in federal funding• $8.2 billion of total project value• 99 projects selected
• Regional Smart Grid Demonstrations• 16 projects selected• $435 million in federal funding
• Project categories:• Customer Systems• Advanced Metering
I f t t
• $877 million of total project value• Energy Storage Demonstrations
• 16 projects selectedInfrastructure
• Distribution Systems• Transmission Systems• Equipment Manufacturing
• $185 million in federal funding• $770 million of total project value
• Equipment Manufacturing• Integrated and Crosscutting
There are also ten Renewable and Distributed Systems Integration (RDSI) and
6©2011 Navigant Consulting, Inc.E N E R G Y
High Temperature Superconductor projects.
In the coming years, smart grid technologies will support higher functionality and grid automation
Increasing Smart Grid Functionality
functionality and grid automation.
• Leverage the sensors and communications networks installed during the first
Sensing and
Remote Control
Automation
wave
• Use the technologies to develop “apps” that enable
Sensing and Reporting
operational efficiency, resilience, and optimization
• Increase speed to impact• Standardize processes• Reduce cost• Reduce cost
7©2011 Navigant Consulting, Inc.E N E R G Y
Smart Grid Benefits
The resultant benefits will come from areas that have been difficult to demonstrate and monetize in the pastdemonstrate and monetize in the past.
Smart Grid BenefitsSmart Grid BenefitsSmart Grid BenefitsSmart Grid Benefits
FinancialFinancial
TypeType DescriptionDescription ExamplesExamples
Benefits related to utility or consumer costs that can be expressed directly in financial termsBenefits related to utility or consumer costs that can be expressed directly in financial terms
• Reduced T&D operations costs• Lower electricity bills for customers• Reduced T&D operations costs• Lower electricity bills for customers
Easier to monetize
ReliabilityReliability
can be expressed directly in financial terms.can be expressed directly in financial terms. • Lower electricity bills for customers• Lower electricity bills for customers
Benefits related to power interruptions or power quality, but that may not be easily expressed in financial terms.
Benefits related to power interruptions or power quality, but that may not be easily expressed in financial terms.
• Shorter power outages• Less severe voltage sags• Shorter power outages• Less severe voltage sags
monetize
EnvironmentalEnvironmental Benefits related to air polluting emissions.Benefits related to air polluting emissions. • Reduced CO2 emissions• Reduced SOx and NOx
• Reduced CO2 emissions• Reduced SOx and NOx
SecuritySecurity Benefits related to maintaining a secure energy supply and infrastructure.Benefits related to maintaining a secure energy supply and infrastructure.
• Reduced oil consumption• Fewer, or smaller blackouts• Reduced oil consumption• Fewer, or smaller blackouts
Harder to monetize
8©2011 Navigant Consulting, Inc.E N E R G Y
Source: Navigant
A Tool to Monetize Smart Grid Benefits
Navigant’s Smart Grid Computational Tool is based on a rigorous analytical framework being utilized for over 140 U S projectsanalytical framework being utilized for over 140 U.S. projects.
A I/A I/S a t id oje tS a t id oje t
Inputs Outputs
Data that Data that
AMI/Smart Meters, Automated Feeder and Line Switching
AMI/Smart Meters, Automated Feeder and Line Switching
Annual Generation Annual Generation
Monetary Value of up to 22 Benefits
Monetary Value of up to 22 Benefits
Smart grid project Assets, Functions, and Mechanisms
Smart grid project Assets, Functions, and Mechanisms
SGCTSGCT
corresponds to Impact Metricscorresponds to Impact Metrics
Data derived from estimates and
Data derived from estimates and
Costs, Number of Tamper DetectionsCosts, Number of Tamper Detections
Value of Service, Price of Capacity at Value of Service,
Price of Capacity at NPV Analysis of Project
NPV Analysis of Project
All Output is calculated
over
All Output is calculated
over SGCTSGCTassumptionsassumptions
Cost Parameters and Escalation
Factors
Cost Parameters and Escalation
Factors
Discount Rate, Inflation Rate, Population G h
Discount Rate, Inflation Rate, Population G h
Peak, Value of CO2Peak, Value of CO2of Projectof Project
SensitivitySensitivity
multiple years
multiple years
FactorsFactors GrowthGrowth
Sensitivity FactorsSensitivity Factors High and Low case Value of CO2
High and Low case Value of CO2
Sensitivity Analysis of Project
Sensitivity Analysis of Project
9©2011 Navigant Consulting, Inc.E N E R G Y
Source: Navigant
Achieving smart grid benefits will require metrics that demonstrate impact
Metrics to Demonstrate Impact
impact.
Performance metrics can be used to demonstrate smart grid impactPerformance metrics can be used to demonstrate smart grid impactSmart Grid
Strategy • Operational efficiency• Reliability improvement• Operational efficiency• Reliability improvement
to demonstrate smart grid impactto demonstrate smart grid impact
Systems Deployment
Lessons Learned
• Customer satisfaction• Customer demand profiles• Capital investment deferral
• Customer satisfaction• Customer demand profiles• Capital investment deferral
Performance
Capital investment deferral• Asset utilization• Electricity cost savings• Fuel savings
Capital investment deferral• Asset utilization• Electricity cost savings• Fuel savingsMeasurement • Fuel savings• Generation mix• CO2 reductions
• Fuel savings• Generation mix• CO2 reductions
10©2011 Navigant Consulting, Inc.E N E R G Y
KeyC O N TAC T SKeyC O N TAC T SKeyC O N TAC T SKeyC O N TAC T SC O N T A C T S C O N T A C T S C O N T A C T S C O N T A C T S
Forrest SmallDirectorBurlington, Massachusetts, USA+1 (781) 270‐8303 F S ll [email protected]
©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.©2011 Navigant Consulting, Inc. 11
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