The US and Russia Getting “Smarter”:

Russian-American Smart Grid Partnership Initiative

Grigoriy ShchennikovNelson Zhao

Tatiana PopovaThankie Yuan Shi

Growing consumption – a challenge for the grid

Population, total

GDP per capita (current US$)

Source: World Bank

World electricity consumption

Source: Enerdata

Consumption per capita

Existing grid

One-way flow electricity

Source: IEA

• Centralized, bulk generation, mainly coal and natural gas• Responsible for 40% of human-caused CO2 production• Limited automation and situational awareness• Lack of customer-side data to manage and reduce energy use

Evolution from traditional to smart grid

Smart Grid Successful Partnerships

• Korea – leader in the area of the smart grid technologies • State of Illinois - advanced research capabilities at national labs and

universities• sister-state agreement between the Jeju Special Self-Governing Province

and the State of Illinois• Additional project opportunities - smart buildings, smart transportation,

smart communities, and R&D.

Dignitaries in Illinois and South Korea have numerously affirmed the mutual benefits of this model partnership for smart grid

collaboration

Smart Grid PartnershipsMay, 2011 - Memorandum of Understanding

Areas of cooperation: • AMI smart meters • distribution automation • best practices in business processes • creation of smart grid innovation cluster • supportive government policies to promote smart grid• exchange of technical information and experiential data

Slowdown in the development of the partnership

Fundamental ChangesPt. 1: Russian Policy Recommendations

Clear motivations and incentives are needed for reform. Why?

• Market suspicion

• End-result Uncertainty

Standardize implementation rules and regulations!

Fundamental ChangesPt. 1: Russian Policy Recommendations (Cont.)

New smart grid outreach and consumer awareness program

• Residential communities just aren’t shown the benefits of smart grid technologies

• That leads to overall mistrust of energy companies and lack of local community support

• i.e., An absence of reliable standards for conducting energy savings contracts

• Risks for consumers AND public service providers

Fundamental ChangesPt. 2: U.S. Policy Recommendations

Policy-makers need a compelling value proposition for consumers

Must define key value areas

• Why should we support grid modernization? What benefits come with this?

…. How much more do I have to pay?

• Reliability? Efficiency? Safety? Etc.

Fundamental ChangesPt. 2: U.S. Policy Recommendations (Cont.)

Define set smart grid performance goals for all 3 levels of government

Better coordination among federal, state, and local regulators

The Next Sister City

The Smart Grid Maturity Model• Provides a framework for understanding the current state of you smart

grid deployment and capability.• Assesses how mature your utility’s smart grid is.• Identifies gaps that need to be filled and helps make a strategic plan

Domain Abbr.

Strategy, Management,and Regulatory

SMR

Organization And Structure

OS

Grid Operations GO

Work and AssetManagement

WAM

Domain Abbr.

Technology TECH

Customer CUST

Value Chain Integration

VCI

Societal and Environmental

SE

LevelsDomains

Glendale Water and Power San Diego Gas and Electric