Doug Voda, PPMV Global Segment Leader for Smart Grid – February 2015

NRECA – TechAdvantage What You Should Know About Communication Systems: Business Strategies and Options

The visionary Smart Grid Five Pillars

Capacity

Reliability

Efficiency

Sustainability

Upgrade/install capacity economically Provide additional infrastructure (PHEVs, Renewables)

Stabilize the system and avoid outages Provide high quality power all the time

Improve efficiency of power generation Reduce losses in transport and consumption

Connect renewable energy to the grid Useful life of products as technology changes

Safety Eliminate or reduce risk of harm or injury

Distribution Grid Modernization – Data and Applications

With permission from Boreas Group - 2013

Smart Grid Applications – Hierarchy & Architecture

Switch orders, outages

Business Intelligence

Smart Grid Applications at different Levels in Distribution Networks

Self Healing – FDIR • A group of reclosers, load break

switches, and circuit breakers on a feeder operate together to restore power in the most optimal manner

• Coordinated control between groups of reclosers, load break switches, and substation circuit breakers within a substation and possibly with adjacent substations

• Coordinated control between groups of reclosers, load-break switches, and substation circuit breakers across the distribution grid

Efficiency – Volt/VAr Control • Manually or remotely control

capacitors at the local level utilizing settings based on historic metrics of customer power usage

• Adding two-way communications and Volt/VAr control software to coordinate and control capacitors, voltage regulators and load tap changers in real time

• Utilizing network management software and an impedance model of the distribution system to optimize the reduction in energy losses and demand

Device level and/or peer-

to-peer

Substation level

Centralized

Hierarchy, Decision Locations, and Automation stages • Layers of communication (Three Tiers)

• (Peer to Peer) Device to Device, or device to gateway to device • Device to Gateway, from Gateway to Device • Device to Gateway to Control Center to Gateway to Device

• Polling and Data Requirements- considerations for data frequency at various layers

• Cyclic • Report by Exception • Capacity, Frequency and Latency

• Protocol applications significantly affect data bandwidth requirement (DNP3.0 L3 requires

much less bandwidth than DNP3.0 L), RTU’s with deadband feature is a good thing.

• Switching and Within Communication Networks • Time Stamping becomes very important at device level to perform automation using

multiple communication layers

Taxonomy Structure for Public Power Communications

Communications- Utility Applications, Factors by Technology

Source: Spgigler Group - Edison Institute Report, March 2009

U.S. MARKET FOR SMART GRID TECHNOLOGIES, through 2014 (billions)

2007 2008 2009 2014

• Communications 1,656 1,122 1,628 2,916

• Sensors, measurement 4,467 3,997 4,420 6,022 & Control

Fast data rates and sufficient bandwidth increases communication benefit

AMI

HAN

Distribution Automation

Feeder Automation

Device Monitoring

Self Healing

Voltage Reduction

Volt/Var Control

Asset Health Monitoring

Distributed Generation

Source: Spgigler Group - Edison Institute Report, March 2009

Results of Analysis from various wireless communication suppliers

• Several communication suppliers have the bandwidth, and minimal latency to perform fault detection isolation restoration, VVO, distribution automation and backhaul for AMI……Separation of the AMI communication from distribution grid management and data backhaul is a common solution due to AMI communication latency and capacity

• Technology advancements in wireless communication have improved capacity, latency and reduced cost; available frequencies, partitioning and connectivity are improving dramatically

• Many utilities have underestimated the capacity requirements and the opportunities with wireless infrastructure.

• Communications for operations control should not be delegated exclusively to IT group

• Most suppliers are willing to demonstrate performance, take advantage of this and learn what works for your topology

Sensor Accuracy & Grounding Considerations

Accuracy of Sensors is broken up into 5 classes: 0.3%: “Revenue Class” Feeder Metering (>99.7% accuracy)

For end-customer demand metering (for fair invoicing of energy consumption)

0.5%: Volt-Var Control (>99.5% accuracy) For optimizing grid efficiency via minimizing distribution and/or transmission losses

1%: Voltage Control (>99% accuracy) For precision required to initiate capacitor banks or voltage regulators

2%: Protection (>98% accuracy) For fault detection and automatic restoration of reclosers or switches.

10%: Fault Indication (>90% accuracy) For detection and location of high earth fault currents in solidly grounded grids.

Sensors – Segmentation by Application & Accuracy

FCI –> Clamp-on Fault Current Indicator Asset Monitoring –> Condition Monitoring & Diagnostics for Distribution Apparatus FDIR -> Fault Detection Isolation Restoration Control -> Voltage control for Capacitor Banks and Voltage regulators VVC -> Volt-Var Control (Volt-Var Optimization & Conservation Voltage Reduction) DR -> Demand Response and Feeder Metering

<0.5% 0.5…1% 1…2% >2% ACCURACY

APPLICATION

FDIR

Asset Monitoring

DR

VVC

x

x

x

x

x

FCI

x

Control x

Sample Roadmap Table of Contents

9.3.2 PEOPLE 46 9.3.3 TECHNOLOGY 47 9.4 SWOT ANALYSIS 48

10. ROADMAP 51

10.1 APPLICATION ARCHITECTURE PHILOSOPHY 55 10.2 CLOUD COMPUTING 58 10.3 RECOMMENDED OPTION 59 10.4 MAINTAINING RP3 RATING WITH THE RECOMMENDED OPTION 63 10.5 SUMMARY OF IMPLEMENTATION OPTIONS CONSIDERED 63 10.6 SCHEDULE 69 10.7 CYBERSECURITY 75 10.8 KEY PERFORMANCE INDICATORS 76 10.9 CUSTOMER OUTREACH 78

11. PROCESS IMPROVEMENT 81

11.1 LINE ASSET DESIGN – BUILD MANAGEMENT 81 11.2 SYSTEM AND MAINTENANCE PLANNING 83 11.3 VEGETATION MANAGEMENT 86 11.4 WORK MANAGEMENT 88

12 ORGANIZATIONAL REDESIGN 90

12.1 GOVERNANCE 90 12.1.1 TECHNOLOGY SERVICE GOVERNANCE FRAMEWORK 91 12.1.2 TECHNOLOGY GOVERNANCE COMMITTEE 93 12.3.1 DECISION MAKING 93 12.1.3 CHANGE CONTROL BOARD 94 12.1.4 POWER-USERS 95 12.1.5 MAJOR PROGRAM / PROJECT COORDINATION 96 12.1.6 TECHNOLOGY CAPITAL AND O&M EXPENDITURE BUSINESS CASE DEVELOPMENT PROCESS 96 12.1.7 USER SUPPORT AND SERVICE LEVEL AGREEMENT 97 12.1.8 USER TRAINING 97 12.2 OCM PLAN 97 12.2.1 TECHNOLOGY FAIR 101 12.3 ORGANIZATIONAL RECOMMENDATIONS 102 12.3.1 FOUR DAY WORK WEEK 102 12.3.2 WEB DEVELOPMENT, CONTENT, AND SOCIAL MEDIA 102 12.3.3 BILLING DEPARTMENT AND IT 102 12.3.4 IT/OT CONVERGENCE 103

13. RISKS 104

14. CONCLUSION 106

APPENDIX A – ACRONYMS 108

Appendix B – Current Application List / Stand Based Integration 110

1. INTRODUCTION 1

1.1 APPROACH 3 1.2 CONTEXT 6 1.3 THE COST OF INACTION: WHY CHANGE 6 1.4 REPORT ORGANIZATION 7

2. GUIDING PRINCIPLES 9

3. TRIGGERING CHANGE 10

4. THE CORNERSTONE OF THE ADVANCED UTILITY: ASSET MANAGEMENT 11

4.1 CENTRAL DATA STORE 13 4.2 DATA DEPENDENCIES 14 4.3 ENTERPRISE SERVICE BUS - ESB 15

5. DEFINING BOUNDARIES 17

5.1 GEOGRAPHIC INFORMATION SYSTEM (GIS) 17 5.2 WORK MANAGEMENT SYSTEM (WMS) 20 5.3 COMPUTERIZED MAINTENANCE MANAGEMENT SYSTEM (CMMS) 22 5.4 OUTAGE MANAGEMENT SYSTEM (OMS) 23 5.5 DISTRIBUTION AUTOMATION (DA) / SCADA 24 5.6 ADVANCED METERING INFRASTRUCTURES (AMI) / SMART METER 25 5.7 EMERGING TRENDS 27 5.8 SUPPORTING SYSTEMS 27

6. DATA QUALITY 28

6.1 CONVERSION / MIGRATION 28 6.2 ON GOING MAINTENANCE 28 6.3 FACETS OF DATA QUALITY 29 6.4 TYPICAL DATA ISSUES 31 6.5 DATA QUALITY REQUIREMENTS – AN ILLUSTRATED EXAMPLE 32

7. CURRENT GAPS 34

7.1 SGMM ASPIRATIONS WORKSHOP SUMMARY 34 7.2 SYSTEMS GAPS 35 7.3 BOREAS IDENTIFIED GAPS 36

8. DEFINING VALUE 38

9. QUALITATIVE ASSESSMENT 40

9.1 SYSTEMS ENVIRONMENT 40 9.2 PERCEPTIONS 41 9.3 PEER COMPARISON 43 9.3.1 PROCESS 45 9.3.2 PEOPLE 46

Planning and deploying Technology

Investing in FDIR, VVC, Monitoring and Diagnostics – factors for financial justification

Investment Costs Apparatus/Hardware Communications Control and Analytics Design and Installation Training, deployment, spare parts Maintenance Consumer costs and regulatory penalties

Benefits Availability of Service – some increased revenue Apparatus/Hardware life extension Reduced penalties Reduced capital expenditures Reduced unplanned maintenance Higher quality Reduced generation costs

FDIR Benefit/Cost >1.8 VVC Benefit/Cost >2.6

Monitoring and Diagnostics Benefit/Cost > 6.0 MicroGrid Benefit/Cost > 2.0

© ABB Oy March 3, 2015 | Slide 16

THANK YOU !

Contact information If you have further questions please contact

Presenter: Doug Voda

Company: ABB

Contact phone (610) 390-2548

Contact e-mail ( doug.voda@us.abb.com)