mike montoya - sce

SCE Smart Grid Creating a Cleaner, Smarter Energy Future

Mike Montoya May 18, 2010

2

© Copyright 2009, Southern California Edison

PG&E

•  Serve a population of about 14 million people in a 50,000-square-mile service area within central, coastal and Southern California

•  5 million electric meters

•  12,000 circuit miles of transmission lines and more than 111,500 circuit miles of distribution lines

•  5,000 MW of generating capacity from interests in nuclear, hydroelectric, and fossil-fueled power plants

•  Award-winning energy efficiency & DR customer programs

•  Industry leader in renewable energy, electric transportation, Smart Grid and smart metering SDG&E

LADWP

Southern California Edison An Edison International Company

3


SCE’s vision of a smart grid is to develop and deploy a more reliable, secure, economic, efficient, safe and environmentally-friendly electric system covering all facets of electricity from

production through transmission, distribution, and its smart use in homes, businesses and vehicles.

SCE’s Smart Grid Vision

4


California Climate & Energy Policies Most Aggressive Policies in the United States

5


CA Renewables Portfolio Standard •  20% by 2010 •  33% by 2020 (Governor’s Exec Order)

Lg Rooftop Solar PV Program •  500 MWs by 2015 •  250 MWs by SCE & 250 MWs by IPP •  ~ 350 projects at 1-2 MWs each

California Solar Initiative (CSI) •  Goal of install 3,000 megawatts (MW) of

new, customer-side solar photovoltaic projects by 2017

2008 Renewables Summary

Renewable & DER Growth California is Pushing Beyond Limits of Current Grid Capabilities

6


From “Brie"ng on the CAISO Renewable Integration Study”, October 17,2007

Signi!cant Increase in New Wind Resources Potential 7x Increase in Total Wind Energy to 15 Billion kWh

7


Identi!ed Issues on the Bulk Power System (Wind)

•  System spinning reserve requirements will change due to the #uctuation in wind generation

•  Reactive power planning requirements (VARS) will change due to the #uctuation of wind generation

•  Wind generation does not contribute to the main system frequency control

•  Inter-area oscillations may occur due to the lack of inertia from Type 3 and Type 4 wind turbines

8


•  Seasonal, Daily, Minute PV Power Fluctuating

•  PV Inverter – Grid Interactions

•  Low Capacity Factor < 20%

•  Inaccurate forecasting

•  No cost effective grid storage yet

Solar Intermittencies

9


Early Market (2010-2014)

•  Modest number of PEVs; •  Early adopters with high

expectations; •  Uncertainty around market

development; and •  New policies and standards

developed & implemented.

Growing Market (2015 +)

•  Growing number of PEVs; •  Some clarity around

customer charging behavior and impacts to electric grid; and

•  Growing signi"cance of load management.

We are in the early days. All of us – policy makers, auto manufacturers, auto dealers,

utilities – need to !gure it out together.

(in thousands)

PEV Adoption Forecast for SCE Service Area

10


1. Includes smart meters, energy smart appliances and customer devices, electric vehicles, DR, inverters and storage technologies

By 2020, in SCE’s service area there may be as many as 10 million intelligent devices1 linked to the grid providing sensing information and automatically responding to prices/event signals

Engaging Customers in the Supply Chain

11


Transmission: Renewables Integration •  Increase transmission capacity to

integrate more bulk renewable energy resources

•  Implement Synchrophasors & Wide Area Controls to enable enhanced grid monitoring and controls

•  Provide real-time Voltage, VAR & frequency support to mitigate volatility

•  RD&D on advanced inverter technology to signi"cantly improve integration

•  RD&D on large scale energy storage systems

12


Avanti - Circuit of the Future

Distribution Automation •  Enable distributed energy

resources and storage to support customer choice and improve grid stability

•  Develop new technology for dynamic Volt/VAR and harmonics control to provide quality service and enable voltage conservation

•  Minimize customer outages due to distribution system failures through expansive automation

•  Development of superconducting devices such as fault current limiters and transformers

13


•  Choice to Manage Cost & Peak Demand –  Rates

•  Time of Use and Tiered Rates •  Critical Peak Pricing (CPP) •  Peak Time Rebate (PTR)

–  Programs •  Smart Communicating Thermostats

–  Outcome •  Reduce Peak Load by 1,000 MWs

•  Energy Information Drives Conservation –  Reduce Residential Energy Consumption by

1% (minimum) –  Reduce GHG by 365,000 tons/yr

•  Automated Self-Service –  Remote Service Switch –  Payment and Billing Options


Edison SmartConnect™: Empowering Customers

14


Customer Bene!ts

•  Enable state and federal energy policy goals –  Renewables Portfolio Standard (RPS) –  California Solar Initiative (CSI) –  Assembly Bill 32

•  Maintain levels of service reliability as increasing levels of renewable and distributed energy resources are incorporated into the transmission and distribution systems

•  Empower customers by providing actionable information and better tools to manage their energy costs and conservation efforts

•  Improve grid security, safety, and reliability

•  Create the processes and deploy the infrastructure needed to support the projected adoption of plug-in electric vehicles

15


~$1.5 Billion Capital* Smart Grid Development

* Project capital approved by CPUC in SCE’s 2009 GRC & SmartConnect program

2009 2010 2011 2012 PEV Integration Renewable Integration Tech Dev.

Advanced Load Control

Enhanced Outage Management Expanded Distribution Automation Centralized Remedial Action Schemes Phasor Measurement Substation Security Video Surveillance Energy Management System Upgrade

Smart Metering

SCE Smart Grid Development Building on Smart Foundation Built Over the Past Decade

16


SCE Smart Grid Development Statistics •  Total synchrophasors on bulk transmission system = 27 •  Advanced energy management system (EMS) = Yes •  Total substations automated (% of 900 substations) = 56% •  Total substation transformers with dissolved gas analysis (DGA) = 0% •  Total substations with low latency, high bandwidth telecoms = 33% •  Distribution management and load control systems = Yes •  Total circuits with outage mitigation (% of 4,400 circuits) = 41% •  Total circuits with "eld automation (% of 4,400 circuits) = 41% •  Total microprocessor relays = 31% •  Total "ber optic cable miles = 3,100 •  Total renewable resource capacity integrated

–  Transmission = 2,784 MW –  Distribution = 2.4 MW

•  Total demand response (DR) capacity = 1,548 MW •  Smart metering

–  Large commercial and industrial (C&I) customers = 100% –  Residential and small commercial and industrial (C&I) customers = 635,000+ meters

17


What is Needed to Realize a Smarter Grid?

•  Intelligent and communicating PEVs that integrate gracefully with the grid

•  Cost effective energy storage at bulk transmission and distribution

•  Commercial products based on open, non-proprietary standards that are secure

•  Seamless and secure telecommunications infrastructure that integrates millions of intelligent devices to produce actionable information that is used to control the electric system

•  Workforce with the skills and knowledge to engineer, build, operate and maintain an electric grid with pervasive information technology embedded

18


Observations

•  Smart Grid is a journey that will be 20+ years in the making –  Personal computing was introduced 30 years ago –  Portable cell phones were introduced 25 years ago –  Public Internet was launched 20 years ago

•  Pace of technology adoption will need to consider policy, customer impact, utility operations and asset obsolesce

•  A smarter electric grid will become more interactive with our customers’ lives thru the home, transportation and workplace

19


For more information on SCE’s Smart Grid strategy, news, and updates, go to: www.sce.com/smartgrid

For information on careers with Advanced Technology, please email Lee Cordner at [email protected]

20


Appendix

21


•  Circuit and sub-circuit component modeling/ simulation of incremental impacts

•  Incorporate hybrid adoption and “handraiser” data

•  Measure incremental PEV impacts by comparing to base load growth

T&D System Impacts Financial

Impacts Modeling &

Analysis Drivers & Concerns

•  Over 95% of "nancial impacts due to transformer and circuit/ substation upgrades

•  SCE will apply for recovery PEV-related costs through its General Rate Case

•  Some costs may be mitigated by optimization with infrastructure replacement and with other smart investment programs

•  Wide range of system impacts depending on density of PEV clustering, vehicle counts, etc.

•  Anywhere from 1 to 10% of transformers forced beyond loading limits

•  Adverse impacts on 4 to 11% of system circuits and substations

•  Large, mobile load with local distribution impacts

•  May double household peak usage

•  Uncertainty of charging level, time of day, geographic location

•  More than 4,300 circuits to assess

Distribution System Impacts

22


Jurisdictional Issues: How should EV service providers be regulated if they will provide electric services to retail end-use customers?

Non-customary Loads: At what charging level should a customer be required to pay for system upgrades associated with new load?

Cost Allocation: Who should pay for the upgrades associated with PEV load and the associated procurement and emissions obligations?

Charging Infrastructure: How will sufficient charging infrastructure be installed to support market adoption, particularly with respect to public and multi-family dwelling access?

Utility Role: What opportunities exist for utilities within the market, and where will they be needed to "ll in gaps (if at all)?

Over the next year, a number of key issues will need to be decided by utilities and regulators (e.g., through the AFV OIR process)

Key Policy & Market Issues

mike montoya - sce

Technology

southern california

growth california

edison smartconnect

smartsdgemetering2 copyright

sce smart grid

renewable energy

energy smart appliances

edison international