© 2010 San Diego Gas & Electric Company. All copyright and trademark rights reserved
Lee Krevat, Director-Smart Grid
SDG&E’s Smart Grid Deployment Plan
Numbers and forecasts are for illustration purposes only
Smart Grid Technology Conference
June 1, 2011
Smart Grid Deployment Plan
Objectives
Engage customers and other stakeholders to create a Smart Grid
Deployment Plan that reflects the region’s priorities and values –
not just those of the utility.
Align the organization so that it can continue the cultural change
necessary to create the Utility of the Future.
Analyze a wide range of potential projects oriented toward
“smart” technologies and services – prioritizing cost vs. benefits,
both financial and societal.
Comply with CPUC decisions, state and federal policy
SB 17 and D.10-06-047
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Methodology
Presents a comprehensive plan that includes 64 projects in 9 programs
The plan is not a request for funding – it is a “policy guide for future
investments”
8 officers, 18 directors, 150+ managers and staff helped develop the plan
Two-Way dialogue with 25+ stakeholder groups
Aligned to SDG&E Strategic Plan
Collaborating with the Environmental Defense Fund to value environmental
benefits
Partnering with the Office of the Information and Privacy Commissioner of
Ontario on the implementation of customer privacy policies
To be put into practice with the Dynamic Pricing Program
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SGDP Development
SDG&E leveraged the NIST smart grid
conceptual model to develop the SGDP,
with 3 additional “cross-cutting” domains.
NIST Smart Grid Framework 1.0 January 2010
Secure Communication Flows
Electrical Flows
Domain
Domain (NIST Conceptual
Model)Markets
Operations
Service Provider
Customer
Distribution
Transmission
Bulk Generation
Grid & Cyber Security
Info & Comms Technology
HR & Workforce Development
Cross cutting domain
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Organization Ownership
Name Role Responsibility
Smart Grid Executive Steering
Committee
Executive Sponsors Responsible for review &
approval of drafts & final
Smart Grid Director Team Steering Committee Responsible for review &
approval of drafts & final
Smart Grid Team Cross-domain facilitation; Project
Management
Executive reporting; issues
management; accountable for
overall project delivery
Vice Presidents Domain Owners: Customer, Markets,
Transmission, Distribution, Operations,
Bulk Generation, Service Providers,
Grid & Cyber Security, ICT, Workforce
Accountable for delivery of a
domain & its sub-domain
Directors Domain Leads Responsible for team
leadership, delivery of a
domain & its sub-domain
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Customers and Other Key Stakeholders
SDG&E, in collaboration with key stakeholders, will create the
foundation for an innovative, connected and sustainable energy
future in the San Diego region.
Ratepayers Advocates Privacy Advocates
Governmental Organizations Energy & Environmental NGOs
Academia Large Customers / Corporate
Interests
Business Organizations Collaborative Organizations
Workforce Interests
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Requirements
• Smart Market, Customer & Utility. Meet environmental policies.Vision
• Inventory of SG investments and assessment of privacy & security.Baseline
• Provide benefits to consumers and compliance with SB17.Strategy
• Describe Grid and Cyber Security strategy.Security
• Timing of deployment of SG technologies. Roadmap
• Cost estimates for SG investments for next 10 years.Cost
• Analysis: policy driven, environmental goals, economic, etc.Benefits
• Measure performance.Metrics
Source: CPUC
SB 17 requires a “Smart Grid Deployment Plan” to be filed by July 1st
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Vision
The Smart Grid Deployment Plan is the same as the SDG&E Vision
“SDG&E, in collaboration with key stakeholders, will create the
foundation for an innovative, connected and sustainable energy future
in the San Diego region.”
Focuses on customers and stakeholders, and their adoption of
renewables, PEVs, other technologies, and environmental policy
SDG&E cannot wait for others to move forward – our customers are already
moving forward.
Incorporates stakeholder ideas, recommendations and priorities.
SB 17 Alignment
Describes our vision of how the 11 SB17 smart grid goals will be realized by
2015/2020
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Vision: Smart Customer,
Smart Market, Smart Utility
Smart Customer
Empowering customers with more choice on how and when they use energy based on
improved information (including accurate price signals) and access to enabling technology
Smart Market
Empowering customers to participate in demand response and new dynamic rate programs
and ancillary service markets
Requires price signals that accurately reflect cost to provide utility services and avoid cross-
subsidization
Smart Utility (driven by Customers)
Usage information, prices and critical event notifications provided through the customer’s
preferred communication channels
Development of the distribution system and IT infrastructure to enable and support growth in
these customer alternative energy solutions
Includes the provision of balancing, storage, reliability and integration services to customers
which reflects the value of the service the utility provides and the infrastructure investment
that supports it, particularly for distributed generation customers
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Deployment Baseline
Details the current state of SDG&E’s grid
Generation, transmission, distribution
Discusses 2006 San Diego Smart Grid Study
Inventories our past (in service as of 12/31/10) and in-flight
smart technology investments
SCADA/Sensor
Smart Meters
OpEx 20/20
Self-healing circuits
Current state of customer privacy policies
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Smart Grid Strategy
Plan for Smart Grid deployment across business units and functions
Collaborate with stakeholders on an ongoing basis
Plan projects using a decision-making framework
Policy, Value and Pilots
Policy – projects driven by state or federal policy, but potential customer and
societal benefits are calculated
Value – projected benefits outweigh costs or are necessary to effectively
communicate with customers
Pilots – mitigate risk, determine costs and benefits
Aligned to the SB17 goals
Technology and communications network selection
Ensure privacy and leverage interoperability and standards
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Grid & Cyber Security Vision
All Smart Grid participants, such as customers, service
providers, regulators and utilities, are able to:
Rely on the availability of the system
Trust the integrity of the information produced by the system
Confident that sensitive information is secure from unauthorized access
or disclosure
SDG&E’s Smart Grid is resistant to physical and cyber security
threats. It is resilient to attack and natural disasters, and
aligned with industry standards and best practices.
Because resources are finite, it is built on a security program
that uses risk management methodologies to maximize its
security investments.
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Grid & Cyber Security
Vision -> Strategy
Convergence
• Policy-driven coarse-grained controls
• Integration (process &
technology)
• Standards
Disaggregation
• Physical & logical control distribution
• Fine-grained controls tuned for local needs
Awareness
• Situational
• Participant
• Regulatory
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Grid & Cyber Security –
Strategic Objectives
Set privacy as a foundational building block of our Security Programs
Distribute security controls, make them more autonomous
Evolve existing security capabilities
Develop new security capabilities
Unify shared security capabilities
Integrate physical and cyber security capabilities
Identity and access management
Encryption key management
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Roadmap Programs
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SDG&E’s roadmap includes smart grid investments in 9 programs:
SMART
GRID
Customer
Empowerment
Renewable
Growth
Electric
Vehicle
Growth
Security
Reliability & Safety
Operational Efficiency
SG RD&D
Integrated & Cross-cutting
Systems
Workforce Development
Smart Grid Roadmap
Lays out the timeline for our 9 programs from 2011-2020 and their
alignment to policy goals
Shows by project, by year, and policy / value / pilot
Includes brief descriptions of all projects including “Enterprise” projects –
those not being done because of smart grid, but including smart grid
requirements.
Total number of projects – 64
Enterprise – 13 (not included in costs/benefits)
Includes 2015 and 2020 Vision statements in Program timelines for
context
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Background
• Installing 1.4 million smart electric meters and adding module to existing
850,000 gas meters for all customers by December 2011
• Install 1.4 million smart electric meters for all customers
• Solid-state electric meter technology with ZigBee Chip
• Electric interval data reads:
• Residential: hourly, Commercial/Industrial: 15-minutes
Customer Benefits
• Enhances reliability and outage detection, and speeds restoration
• Gives customers more control over their everyday
energy usage, opportunity for lower bills
• Reduced need to access property, more privacy
Currently about 2.18 Million meters installed (>95%)!
Customer Empowerment
Smart Meter
Tools and Programs
• Google PowerMeter / SDG&E Online Tools About 12,000 users
• Demand Response
• Dynamic Pricing – future offering
• Home Area Network Pilots
Awards and Recognitions
• SDG&E’s Smart Meter program was awarded “Best in Quality”,
by Chartwell, Inc. for customer service
• Recognition of being a “gold standard” utility by CPUC
Commissioner Ryan in 2010
• Second year in a row the honor of “Smartest Utility in the in
Nation” by Intelligent Utility Magazine and IDC Energy Insights.
Customer Empowerment
Data Available to Customers
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Distributed Renewable Growth
0
5
10
15
20
25
30
35
40
45
50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Tota
l nu
mb
er
of
MW
at
year
en
d
Residential Distributed Generation
Distributed Renewable Growth
Circuits with Potential Issues
23Values are for illustration only and do not represent forecasts
Reliability Issues
Changing San Diego Energy Mix
Energy mix for 2015 and 2020 are subject to substantial uncertainty Values are for illustration purposes and do not represent forecasts
25 TWH
5 TWH
10 TWH
15 TWH
20 TWH
29
Transformer Single Phase Analytics
0
5
10
15
20
25
30
35
40
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
KW
8/25/2010 Interval Hours
5781929
5781930
5781931
5782024
5782027
XMFR Sum
Operational Efficiency:
Condition Based Maintenance
LTC energy is measured at
the control cabinet on the
other side of the bank
TRANSFORMER
COOLING
ANALYSIS
DISSOLVED
GAS
ANALYSIS
TRANSFORMER
ANALYSIS
TRANSFORMER
BUSHINGS
ANALYSIS
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Operational Efficiency:
Outage and Distribution Management
• Paperwork
• Manual processes
• Labor intensive
• Software systems are not fully integrated
• Unplanned outages are reported by
customers
• Limited ability for specialized reports
• Near real time data
• Automated process
• Integration with more systems
• Faster outage restoration times
• Better management of customer expectations
• System generated reports
• System generated switching plans
Current State Future State
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Research, Development & Demonstration:
SDG&E Borrego Springs Microgrid Project
Project
Description
In cooperation with the US Department of Energy and the California Energy Commission, SDG&E and 10 public and private sector partners will develop a “microgrid” project - a small version of its electric grid which takes advantage of local distributed energy resources and state-of-the-art controls to enhance grid operations – to achieve a >15% reduction in feeder peak load and improve system reliability.
Current Status •Site Selection complete – Borrego Springs•Finalizing system requirements and high level design•Developing customer communication plan•Collaborating with environmental agencies to satisfy permitting requirements
Energy
Storage
Micro turbine
Rooftop PV Solar
Utility-scale Energy Storage
Distributed GenerationHome Energy System
Ground PV Solar ArrayPHEVs
Switches &
Power
Electronics
Conceptual illustration courtesy of National Energy Technology Laboratory
Distributed Energy
Resources
Utility-scale Energy Storage
Rooftop PV Solar
Micro-turbines
Building Energy Storage
Community Energy Storage
Distributed Generation
Home Energy System
PHEVs
Ground PV Solar Array
Grid Resources
Capacitor Banks
Voltage Regulators
Automated Switches
Power Electronics
Communications
Information
Electricity Pricing
DER status
Demand Response
Programs
Network status
Community Objectives
Load and Resource
Profiles
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Integrated/Cross Cutting Systems:
SDG&E Grid Communication System
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Smart Grid AssetsMobile Data
Smart Meters •AMI•Reclosers•Switches•Fault Indicators•Transformers•Cap banks
Radio
Site
900MHz
4,000 sq mi
•Substation Automation•PMUs•High capacity mobile users•Wide area measurement / controlHigh Capacity Assets
INTEGRATED SECURITY
INTEGRATED MANAGEMENT & RF CONTROL
1. Multiple RF layers integrated via a Control Service2. Use all the spectrum tools available, matching app requirements with spectrum3. Purchase at least one block of licensed spectrum for high-integrity service4. Use SDGE assets for siting RF base stations
Smart Grid Costs and Benefits
“I think there is a world market for
maybe five computers.”
-- Thomas Watson,
Chairman of IBM, 1943
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US Army Photo
“[By 1985], machines [computers] will be capable of doing
any work Man can do.”
-- Herbert A. Simon, 1965
Cost Estimates
Costs and Benefits calculated based on nominal $
Does not include Enterprise projects
2012 GRC, active and approved applications are based on filed numbers
Conceptual estimates 2011-2015
Provisional ranges 2016-2020
Capital Expenditures and O&M
$ by Program Low/High – not projects
Includes Baseline projects costs as of EOY 2010
Smart Meter and Operational Excellence 20/20
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Benefit Estimates
Analysis is based on the EPRI framework developed for DOE
Societal (includes environmental, societal, and fuel cost savings for customers)
shown separately in a holistic view
SDG&E investment is necessary but not sufficient for customers & society to realize these
benefits
Conceptual estimates 2011-2015, provisional ranges 2016-2020
Similar range percentages were used for conceptual estimates and provisional ranges
Terminal Value estimate to capture post-2020 value based on useful life of assets
Estimated at the project level (economic and reliability) and summarized by Program
“Difficult to quantify” benefits, such as energy independence, customer
convenience, customer satisfaction, public and worker safety, and enterprise
goodwill will be discussed in narrative but their value is not monetized
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Societal Benefits
Identified and quantified (jointly with EDF) societal benefits related to
reduction of environmental footprint and customer fuel cost
savings enabled by Smart Grid investments.
2011-2020 Benefits
Low Range
2011-2020 Benefits
High Range
Estimated Avoided Emissions Reduction by
Integrating Centralized Renewable Energy
Estimated Avoided Emissions Reduction by
Integrating Distributed Generation
Estimated Avoided Net Emissions
Reduction by Integrating Electric Vehicles
Estimated Avoided Fuel Cost by Integrating
Electric Vehicles
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Metrics
SDG&E worked with the other CA IOUs and the Environmental Defense Fund to
develop a list of Smart Grid metrics
Dozens of metrics were evaluated by the working group; 19 were determined
to be “consensus” metrics
Customer/AMI– 9
Electric Vehicles – 1
Energy Storage – 1
Grid Operations – 8
A ruling is expected from CPUC to establish the consensus metrics (with
potential minor changes), and possibly others, for ongoing reporting
Pending that ruling, we are including the Consensus metrics in the SGDP
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