Smart Grid 101
Moderator: Mike Hyland, APPA VP, Engineering Services Speaker: Kiah Harris, Burns & McDonnell June 1, 2009
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Agenda
• What is Smart Grid? • How the Smart Grid can Affect:
– – – – Smart Smart Smart Smart Generation Transmission Systems Distribution Systems Customers
• Communications and Data Needs • Preparing to implement a Smart Grid at Your Utility • Smart Grid Stimulus Funding
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Smart Grid
• Concept of the Smart Grid crystallized in the 2003 blackout:
– Lack of knowledge about system conditions among operators – Goal was to make the transmission system more secure by collecting more data faster to provide better status of the system to operators – Take many decisions out of operator realm and move to computer controls
• Expanded in the 2007 Energy Independence and Security Act to include:
– Customer centric features like load management – Integration of renewable and traditional distributed generation – Distribution system optimization – Numerous other considerations to make the system more efficient and avoid additional investment
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From the 2007 Energy Independence and Security Act
It is the policy of the United States to support the modernization of the Nation’s electricity transmission and distribution system and to achieve each of the following, which together characterize a Smart Grid:
-Increased use of digital information and controls technology -Dynamic optimization of grid operations and resources -Deployment and integration of distributed resources, including renewable -Development and incorporation of demand response, demand-side resources, and energy-efficiency resources -Deployment and integration 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 -Deployment and integration of advanced electricity storage and peak-shaving technologies -Provision to consumers of timely information and control options -Development of standards
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So, Smart Grid is
• Advanced technology to move information across sectors and control equipment
– Computers – Monitors and sensors – Control devices
• Extensive data management system that allows use of data across enterprise • Expanded two way communication system between utility operations, system facilities, customers • Network Security
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Supply Chain is Changing
From serial…
To circular…
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Advancing Technology is the Enabler for
Smart Generation Smart Transmission Smart Distribution
Utilities can advance Smart Grid to any or all of these areas…
Smart Customers
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Smart Generation
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Smart Generation will use Load and Distributed Generation More Extensively
• One considered benefit of the Smart Grid will be to advance load control for expanded use for generation control and reserves. • Load has infinite ramp rate
– Steam units 2-5%/Minute – Gas turbines 10%/Minute
• Can manipulate load to effectively work with nondispatchable renewable resources, like wind and solar. (more effective with storage capabilities)
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Releasing Reserves Delays Capacity Additions
• Growth projections of 200GW over next 20 years • Planning reserves: 12-15% of load
– @800GW of load-96 to 120GW of capacity
• Operating reserves: 3% of load for each of spinning and supplemental
– @800GW of load-24GW for each area
• Regulation capacity
– Reserves reg up and down capacity for units in each balancing authority – Depends on amount of non-dispatchable resources and non-conforming load
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Distributed Generation will Be Used More by Utilities
• Various types of generation are being applied:
– Combined heat and power – essentially base loaded – Backup generation – rarely used – Renewable generation – Solar peaking
• Uses include:
– Manage feeder loading during peaks – Reduce system losses – Creat micro-grids during outages
• This generation is “behind the meter” Smart Grid will allow it to be coordinated with system needs
– Increase economics for end users – Increase opportunity to reduce costs – Reduce outage times
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Smart Generation will
• Bring load into generation control system to allow freeing of reserves to serve load • Use load to optimize renewable energy production • Bring customer generation into mix to reduce extent of outages
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Smart Transmission
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Smart Transmission
• Transmission systems are already highly monitored via SCADA • Two major areas for transmission systems:
– New devices allow faster recognition of conditions-Synchro Phasor project
• • • • Monitor more features of the system Dynamic rating characteristics considered Time synchronization throughout interconnects Moving to preemptive, automatic action on transmission and generation grid based on information
– Advanced asset management for lines and substation equipment
• Remote, real time monitoring of transformers • Remote monitoring of other device conditions, (breakers, tap changers, etc.) 14
Advanced Monitoring Systems will be Coming…
Source: 2008 Edison Award Nomination - APS
• Transformer and Oil Analysis and Notification system by Arizona Public Service one example • Allows real time gas analysis of transformer health
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The Smart Transmission System Will
• Provide faster real time information to control centers about status of system • Provide predictive maintenance with real time analysis • Allow better use of investment through use of probabilistic analysis • Allow better flow control over transmission system for use in preemptive control concept through rerouting or redistribution of loads to avoid problems
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Smart Distribution
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Smart Distribution
• Basic approaches to use of Smart Grid for Distribution:
– Increased management of customer load and generation – Increased management of distribution level facilities – Increased awareness of power quality at each meter
• Goal is to
– Improve customer service – Reduce losses – Extend capabilities of existing system investment
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Advanced Metering Located at Customer
• Provides meter location specific power quality issues
– Automatic outage detection – Voltage levels
• Ties to building management and home area networks to allow feeder and transformer optimization
– Storage loads and plug-in hybrids can be used with other loads to adjust feeder and transformer loading – Advanced load management to unique loads takes control beyond mass broadcast addresses
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Distributed Automation
• DA allows more refined switching of the system • Coupled with AMI, voltage reduction can be used effectively to reduce load without power quality issues • Outage identification and recovery can be enhanced. Not dependent on customer call ins. • When coupled with load monitoring and control, effective ways to optimize feeders and transformers • Feeder switching during substation maintenance and transformer outages is enhanced • Enhanced micro-grid operation of the system beyond recloser operations
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Mirco-Grid Possibilities
• Use of DA and distributed generation during outages can create Micro-Grids to keep the lights on for some of the customers
Requires managing loads, isolation from main grid
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Other Uses of Smart Grid for Distribution
• With AMI, remote connect and disconnect can be used • Better customer service with increased sensing on the system • Voltage reduction for load control can be better optimized • Load research and bill inquiries • Work order integration and more accurate deployment of work force • Assist with other municipal services
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The Smart Distribution System will
• Work with customer systems to minimize peak loads, reduce losses, extend investments in feeders • Allow more system switching so that smallest portion of affected systems is isolated during disturbances • Permit and enhance micro-grid development • Provide enhanced monitoring of substations and feeders • Provide enhanced work order management • Provide opportunities for additional services to municipal entities
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Smart Customer
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Smart Customers
• Three aspects to Customer
– Rates aligned with costs – Two way communications between utility and customer for information transfer – Technology at end use location to gather data on end use, allow better control and to use information from utility
• Goal is to inform customers so that they adjust consumption to reduce cost of supply • Customers are key to energy efficiency enhancements
– Purchasers of buildings and renovations – Purchasers of appliances – Users of electricity
• Without energy efficiency, rates will be increasing rapidly with costs of new resources, fuel and emissions
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Role of the Smart Grid
• The Smart Grid will be a key enabler in the Customer transformation
– Enable dynamic pricing – Integration with “Intelligent” building systems for automated energy response – New view of operational “value” vs cost – As advanced technology becomes more affordable, new service offerings will come about – Pricing differential allows new evaluation of investment in storage, distributed generation and load management
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Dynamic Pricing
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Winter Day in MISO
35 30 $/MWh
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15
10
5
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hours
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Dynamic Pricing
(continued)
180 160
140
Summer Day in MISO
120 100 $/MWh 80
60
Typical energy rate seen by customer
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0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hours
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Home Area Networks will Interface with Utility Information
A Home Area Network is a network contained within a user's home that connects a person's digital devices, from multiple computers and their peripheral devices to telephones, VCRs, televisions, video games, home security systems, “smart“ appliances, fax machines and other digital devices that are wired into the network.
http://www.webopedia.com/TERM/H/HAN.html
Two way communications between customer and utility
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The Smart Customer will
• Require education on transformation to smart grid • See technology and software evolve at building and home network level, appliances • Use dynamic pricing to:
– Optimize usage and minimize bills – Make more educated conservation and demand side management investments
• Add distributed generation that makes sense and allow utility to control • Provide load control opportunities for the utility
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Smart Grid Communications: Tying it Together
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Communications - Today
• Today most utilities have a private communications network
– – – – Built to support SCADA and transmission system protection Serves a limited number of sites Designed for reliability Low bandwidth constant bit rate applications
• Presently monitor:
– Power plants – Transmission lines – Transmission substations
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Communications - Tomorrow
• Smart Grid will require
– – – – – Increased bandwidth Variable bit rate traffic Various applications/solutions Interoperability Increased network security
• One solution may not work for entire service territory • As the system goes in, it can be designed to support multiple functions (and departments) in metering and distribution automation
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Topology will Build from Customer back to Utility
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Network Security will be a Major Aspect
SMART GRID Infrastructure
Power Procurement and Marketing Engineering & Planning Distribution Management
Operations
Electric Meter
Suburban home
Collector Data Repository Communication Infrastructure Meter Data Management
Management Information Systems
Residential Application
CIS System Wireless
Fiber Ring – [Private WAN]
Customer Integration & AMI
Collector
Customer Service/Billing
Commercial Application BPL/PLC
Substation Automation Generation Transmission Automation
Distribution Automation Metering Customer Integration & AMI
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Smart Grid Data
• Produced by
– AMI/AMR meters – Smart Devices (appliances, asset management)
• Produced by Distributed Generation
– Wind turbines and solar panels – Combined heat and power – Backup units
• Huge amount of information to be collected, processed, validated, corrected, etc. on an hourly or sooner basis • Requires a data management system to be able to use enterprise wide
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Smart Grid Roll Out
The Business Case or Where Do We Go From Here?
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Creating a Smart Grid
• Determine what your objective is for the SG:
– Increase customer service? – Allow customers freedom to purchase based on dynamic pricing? – Improve distribution/transmission system operations? – Advanced metering infrastructure/two way communications? – Internet based? – Distribution automation?
• Identify what you need to achieve the objective:
• What do I already have that advances the cause and what more do I need? Pilot project to verify approach? • How will I manage:
– Security? – Data?
• Where can I start now to achieve part of the objective and where will I need to prepare a longer term roll out?
– AMI – Communications – Enterprise wide data management 38
Business Considerations
• Aspects of a Utility not transforming to Smart Grid might include:
– Competitive Disadvantage
• Customer Service • Operations Optimization
– With the above, Rating Agency risk assessment could result in lower rating
• Smart Grid could just become cost of doing business like investments in:
• SCADA • Distribution Automation • Conventional Meters
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Benefit Identification
• • • • • • • • • Investment Deferral/Avoidance Reliability Enhancements Energy Efficiency Operational Efficiency Power Quality Security/Theft Environmental/Sustainability Safety Revenue Opportunities
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-Supply Side Resources
-Distribution Upgrades -Distributed Generation
-Improved Load Profile
-Customer Disconnect -Maintenance Savings
-Emissions Reduction -CO2 Reduction -Renewable Energy --Loss Reduction
Obstacles to Transformation
• Inertia of the Conventional Grid
– Uncertainty of costs – Benefits are there, are we really going to get them? – Existing operations are hard enough. Will turning them over to a computer be more efficient? – City Council expectations for cost recovery can impede implementation – Utility performance measurements and metrics. Better or worse with it? – Security is on everyone’s mind. Adding integrated operational and communication systems increases concerns
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Stimulus Money
• Energy Independence and Security Act of 2007
– Section 1306 authorized the Smart Grid Investment Grant Program – Modified by the American Recovery and Reinvestment Act of 2009 – 50% matching grant (grant size of $500,000 to $200 million) – Projects that advance the digital upgrades of the grid – Projects that deploy Phasor Measurement Units (PMUs) – Most public power utilities will go for the digital upgrade type projects
• Two major types of Smart Grid projects
• Will require ongoing monitoring and reporting to DOE once a quarter • Final requirements out mid June. Currently have a Notice of Intent
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Projects that Support or Advance Smart Grid Functions such as…
• The ability to develop, store, send and receive digital information concerning electricity use, costs, prices, time of use, nature of use, storage , or other information relevant to device, grid or utility operations to or from:
– Through one or a combination of devices and technologies – To or from a computer or other control device
• Being able to measure or monitor electricity use by time of day, power quality, or type of generation and to store, report by digital means • Ability to sense and localize disruptions and to communicate information instantaneously and automatically to enable automatic responses • Protection from cyber security threats • Operate through digital means devices that were electromechanical or manual • Use digital information to manage or modify demand, manage congestion, voltage control, or provide operating reserves and frequency regulation
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Types of Projects to Consider
• AMI
– – – – Meters Communications Meter data management system Need to demonstrate time varying rates available
• Distribution automation
– Adding remote control capabilities
• Asset management
– Real time monitoring – Solid state, digital relay replacements for electromechanical
• Bringing load control into the generation operations
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Application Requirements Include:
• Description of the project • Project plan
– – – – – – – – Key milestones Risks Project team Component equipment and labor costs How you will address cyber security Approvals and certifications How interoperability is addressed Metrics to measure performance
• How the project advances SG • Estimate of job creation • Estimation of benefits
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Wrap UP
• The Smart Grid will use advanced digital devices to enhance the speed at which data is collected and the quality of information on all aspects of the system. • SG can affect all areas of operations to enhance operations, minimize investment and improve customer service. • SG interface with customers can be a major component. • Providing time varying pricing to all smart customers for them to make decisions on usage is critical piece for load adjustments. • SG for the smart customer requires significant education. • SG requires extensive communications on the system and to and from customers. Security has to be considered. • SG entails dealing with a significant amount of data that needs to be turned into information quickly. • The SG installation will take years to fully realize. As technology changes, new opportunities will be created. • Stimulus money can be applied for to support SG projects.
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Questions??
Contact info for Kiah: kharris@burnsmcd.com
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