Overview of the Modern Grid Initiative

Overview of the Modern Grid Initiative Presented by Steve Pullins, Modern Grid Initiative Team Midwest Regional Summit 15 November 2006 1 1 Part I: Background 2 2 Overview One reoccurring theme that DOE has heard from industry is the need to demonstrate the integration of state-of-the-art technologies, tools, and systems in pilot-scale projects The goal of our effort is to create the foundation for a large, multi-year technology integration program The initiative involves a broad range of stakeholders in defining both the framework and the structure of the program The initiative will build on the existing technology development efforts at DOE and others The desired outcome goes beyond a shared vision to a shared understanding and agenda. Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 3 3 Team Charter Approach the grid modernization issues from a: Systems perspective National perspective Societal perspective Independent perspective Develop a program plan for technology integration that consider these issues more comprehensively Broad stakeholder involvement Diverse geographic needs Diverse network topologies Broad range of potential technologies Office of Electricity Delivery and Energy Reliability Powering the 21 Century Economy st 4 4 Modern Grid Program Timeline 2008 2006 2005 Concept Development Regional Summits 2007 Developmental Field Tests Regional Development & Demonstration Program 2012 Adoption of Modern Grid Strategies Technology Gap Analysis National Summits Basis for National Deployment of the Modern Grid Fiscal Year 2006 Fiscal Year 2006 •Development of the Modern Grid •Development of the Modern Grid systems view concepts systems view concepts • Stakeholder alignment • Stakeholder alignment • Commencement of the initial • Commencement of the initial developmental field test (DFT) developmental field test (DFT) Fiscal Year 2007 Fiscal Year 2007 •Full operation of two to three •Full operation of two to three developmental field tests developmental field tests •Continued stakeholder •Continued stakeholder alignment alignment Powering the 21 Century Economy st Fiscal Year 2008 -- 2012 Fiscal Year 2008 2012 •Bid, selection, and deployment •Bid, selection, and deployment of large Technology Integration of large Technology Integration Projects Projects •Refinement of the Modern Grid •Refinement of the Modern Grid strategies through lessons from strategies through lessons from the integration projects the integration projects Fiscal Year 2013 Fiscal Year 2013 •Adoption of the Modern Grid •Adoption of the Modern Grid strategies by appropriate national and strategies by appropriate national and state organizations state organizations Office of Electricity Delivery and Energy Reliability 5 5 Related DOE OE Support Coordination of other modern grid projects West Virginia University integrated control of next generation power systems project ($1M) Hawaii Sustainable Energy Security (~$2M) New Mexico Sustainable Energy Security (~$1M) Montana State load control system reliability ($2M) University of Louisville (Genscape) Electric Grid Monitoring ($1M) Pilot Energy Cost Control Evaluation at NETL ($2M) S&C Electric Advanced Technology Center ($1M) Cleveland State Center for Research in Electric and Aerospace Tech ($1M) Nxegen Connecticut Peak Demand Management ($1M) 20 of 27 OE earmark projects appear to be directly related to the Modern Grid Initiative Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 6 6 Part II: Vision 7 7 Vision Revolutionize the electric system by integrating 21st century technology to achieve seamless generation, delivery, and end-use that benefits the nation Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 8 8 A smart, integrated grid will widely: Detect emerging problems and fix them before they seriously impact quality of service Incorporate extensive measurements, rapid communications, centralized advanced diagnostics, and feedback control that quickly returns the system to a stable state Have the ability to re-route power flows, change load patterns, improve voltage profiles, and take other corrective steps, within seconds of detecting a problem Enable loads and distributed resources to participate in operations Use modern tools to improve design and operation with reliability, security, efficiency, and safety as fundamental values Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 9 9 Modern Grid Stakeholders Others • EPRI • Financial Firms • R&D Organizations Policy & Regulation • FERC • PUC’s • NERC • NARUC Government • Federal • State • Local Utilities • IOU’s • Publics • RTO / ISO • Power marketers Advocacy • EEI • Rate Payer Groups • Environmental Groups Vendors • Technology • Services Consumers • Industrial • Commercial • Residential Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 10 10 Developers of the Modern Grid FERC EEI NERC (FM) DOE-OE Grid 2030 GWAC GridWise Alliance Galvin Initiative Utility AMI Modern Grid Initiative CEC PIER GridWise Program GridWorks GridApps NW GridWise Testbed CERTS DOE-OE CPUC AMI PSERC NYSERDA CEC PIER EPRI Intelligrid Open AMI DV 2010 Office of Electricity Delivery and Energy Reliability Powering the 21 Century Economy st 11 11 Part III: Robust Trends 12 12 Problems and Needs Robust trends Reliability failures Generation mix movement Market movement GDP losses – 40% premium on electricity paid by consumers Cannot get over the deployment hump Renewables growth 12M DG poised for grid influence Loss of skills and experience Grid divorce – a response, not control, scenario Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 13 Electric Infrastructure – Growing Crisis? Transmission problems rocketed when generation additions outdistanced transmission additions. Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 14 14 Generating Nodes on the Grid Change in Generation Mix Connected to the Grid 40000 35000 30000 Number of Units 25000 20000 15000 10000 5000 0 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18 20 20 20 22 20 24 20 26 20 28 20 30 Small DG / Renew ables (0.119MW) Midsize Hydro / Gas / Duel Fuel (20-99MW) Large Fossil / Nuclear (>100MW) Year Exponential increase Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 15 15 Electricity Market Paradigm Shift Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 16 16 Annual Business Losses from Grid Problems Primen Study: $150B annually for power outages and quality issues $0.2B - $2B $2B - $4B $4B - $7B $7B - $12B Powering the 21 Century Economy st $18.5B Office of Electricity Delivery and Energy Reliability 17 17 Do we have “Pilot-itis”? Example: US Substation / Distribution Automation Projects in Utilities 600 500 Pilot Projects Number of Projects Deployment Projects 400 300 Develops technology 200 100 Develops real value 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Pilot = <5% deployment into the field (substations and feeders). Powering the 21 Century Economy st Deployment = >25% deployment into the field. Office of Electricity Delivery and Energy Reliability 18 18 Power Industry Loss of Skills and Experience Utility downsizing has reduced senior staff Experienced staff in the power industry is aging Enrollment in power engineering at universities is small Complexity of modern grid requires skills in advanced power system and IT Perceived value of technical skills has been reduced over the past 15 years Fundamental understanding of the power systems has been replaced by advancements in technology Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 19 19 Part IV: Systems Perspective of the Modern Grid 20 20 Systems Perspective of a Modern Grid A fully modern grid will be broadly judged by its reliability, security, safety, quality and cost of service to the consumer, and by its impact on the environment and economy These key goals, or success factors, must be evaluated with respect to a variety of power system conditions and processes It is from this interdependency of goals that the “systems view” of the Modern Grid forms Office of Electricity Delivery and Energy Reliability Powering the 21 Century Economy st 21 21 “Systems View” The “Systems View” perspective takes a holistic and objective approach to a subject, including technical, economic, regulatory, political, and societal aspects. It includes the complete recognition of the power system as one integrated machine having many interdependent parts, a recognition that solutions can come from a wide and diverse range of sources, the desire to identify key ingredients needed to reach the desired end state and to develop those ingredients in the right sequence, and a development approach that optimizes the total system rather than the individual parts. A “Systems View” also takes account of the full range of costs and benefits to society associated with the provision of reliable power. Office of Electricity Delivery and Energy Reliability Powering the 21 Century Economy st 22 22 Tomorrow’s Modern Grid • Self Heals (detects, analyzes, • Self Heals (detects, analyzes, responds & restores) responds & restores) • Motivates and Includes the Key Success • Motivates and Includes the • Congestion costs • Emergency • Congestion costs • Emergency Consumer Factors Consumer • Massive • Restoration • Massive • Restoration • Resists Attack• Integrated Communications blackout probability • Resists Attack• Integrated Communications blackout probability • Reliable • 21st • operations • Routine operations • Secure • Provides Power Advanced Control Methods • Quality for 21st • SAIFI • Provides Power Advanced Control Methods • Quality for RoutineSAIFI • Economic • Restoration time • Optimization • Restoration time • Optimization Century Needs Sensing and Measurement Century Needs Sensing and Measurement • • Efficient • • CAIDI • Environmentally • Components Systems planning • • Accommodates Advanced Components • Accommodates All GenerationFriendly planning • Advanced Systems • All Generation • CAIDI • Peak Decision Support • and Storage Options and Storage Options • Safe Peak Decision Support • Improved Interfaces and to average load ratio • Improved Interfaces and to average load ratio • Capacity use • Capacity use • Enables Markets • Enables Markets • Optimizes Assets and Operates • Optimizes Assets and Operates Efficiently Efficiently Powering the 21 Century Economy st Office of Electricity Delivery and Energy Reliability 23 23 Part V: Can We Afford the Modern Grid? Yet another Systems View….. 24 What’s it going to take? (2005 – 2024) Robust Trends (2004) Additions for Growth (2005–24) 53% Fuel Purchased: $78B/year Retirements (2005-24) Smart Grid Avoidance (2005 – 24) $15B/yr $300B $480B Generation $156B 50% $4B/yr $80B $80B Transmission 30% $12B $57B $36B ($46-117B) Outages / PQ: $150B/year $2B <1% $12B/yr $240B $240B Distribution $5.5B/yr $110B Consumer Systems $220B $730B Powering the 21 Century Economy st $206B Load Purchased: $260B/year Planned Office of Electricity Delivery and Energy Reliability capital influx: $936B 25