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  • U.S. Smart Grid Development and Global Smart Grid Coordination Presentation to the Board on

    Global Science and Technology

    Eric Lightner

    Director, Smart Grid Task Force June 21, 2012

  • Better, Smarter Electricity Grid-- A National Energy Policy Priority

    2

    A modernized electric system is

    part of President Obama’s

    Blueprint for a Secure Energy Future.

    “We'll fund a better, smarter electricity

    grid and train workers to build it –

    a grid that will help us ship wind and

    solar power from one end of this country

    to another.”

    President Barack Obama

    “America cannot build a 21st century economy with a 20th century electricity

    system. By working with states, industry leaders, and the private sector, we

    can build a clean, smart, national electricity system that will create jobs,

    reduce energy use, and expand renewable energy production.”

    Energy Secretary Steven Chu

    Source: White House: http://www.whitehouse.gov/sites/default/files/microsites/ostp/nstc-smart-grid-june2011.pdf

  • Smart Grid Focus

    3

    Institutional issues/solutions must be considered in conjunction with these technology needs

    Smart Grid Domain

    Generation End User Transmission Distribution

    System understanding and control: visualization, communications, computation

    System flexibility for stability: storage, demand response, accommodating increased variability

    Interface with end users: deployment of AMI,

    microgrids, etc.

    Integration of renewables: improved

    operation, planning, etc.

    Improved efficiencies in buildings and

    industry

    Cleaner generation

    technologies

    Accessing high quality sources of renewable energy and

    addressing line congestion

    Accommodating increased use of EV, PV, DG, and

    consumer participation

    System security: physical security, cyber security, mitigating increased vulnerabilities

    Seamless connection: two-way power flows and

    increased data streams

  • DOE Smart Grid Implementation Plan

    4

    Smart Grid Characteristics

    Enables Informed

    Participation by Customers

    Accommodates All

    Generation & Storage Options

    Enables New

    Products, Services, & Markets

    Provides Power

    Quality for the Range of Needs

    Optimizes Asset

    Utilization & Operating Efficiency

    Operates Resiliently

    to Disturbances, Attacks, & Natural

    Disasters

    Smart Grid Challenges

    Advancing

    Functionality with New Technologies

    Building a Strong

    Business Case for Smart Grid

    Investment

    Enabling

    Interoperability through Standards

    Conformance

    Expanding

    Consumer Participation in

    Energy Management

    Enhancing

    Cybersecurity

    Sustaining a Skilled

    Workforce

    Key Activities

    Smart Grid

    Demonstrations and Deployment

    Research and

    Development Standards

    Interconnection

    Planning and Analysis

    Workforce

    Training

    Stakeholder

    Engagement and Outreach

    Monitoring

    National Progress

    Vision

    A smart grid that uses digital technology to improve reliability, security, and efficiency (both economic and energy) of the electric system from large generation, through the delivery systems to electricity consumers

    and a growing number of distributed-generation and storage resources

  • Smart Grid Investment Grant (SGIG)

    5

    Customer Systems Customer Systems Customer Systems Customer Systems

    Deploying technologies for immediate commercial use supporting manufacturing, purchasing, and installation of smart grid technologies

    Customer Systems Advance Metering

    Infrastructure

    Electric Distribution

    Systems

    Electric Transmission

    Systems

    • Displays

    • Portals

    • Energy management

    • Direct load controls

    • Smart meters

    • Data management

    • Back office integration

    • Switches

    • Feeder optimization

    • Equipment monitoring

    • Energy storage

    • Wide area monitoring and visualization

    • Synchrophasor technology

    • Energy storage

    Customer Systems

    Equipment Manufacturing

    • Energy devices

    • Software

    • Appliances

    99 projects, $3.4B Federal + $4.6B Private Investments

  • 6

    SGIG Spending

    EPRI Estimate

    Brattle Group Estimate

    $7.9 billion with cost share to be spent through 2015

    $338 - $476 billion needed through 2030

    $880 billion needed through

    2030

    Chupka, M.W. Earle, R., Fox-Penner, P., Hledik, R. Transforming America’s power industry: The investment challenge 2010 – 2030. Edison Electric Institute, Washington D.C.,: 2008.

    EPRI. Estimating the costs and benefits of the smart grid: A preliminary estimate of the investment requirements and the resultant benefits of a fully functioning smart grid. EPRI, Palo Alto, CA; 2011.

    Maximize Public Investment

  • DOE Analytical Approach E

    xa m

    p le

    Improves feeder voltage regulation

    Reduced feeder losses worth $60 per MWh

    Automatic Voltage and VAR Control

    • Capacitor controls

    • Distribution Management System

    Functions Mechanisms Benefits

    What does the Smart Grid do?

    How does it do that?

    What “goodness” results?

    Monetary Value

    What is the goodness

    worth?

    What are Smart Grid technologies?

    Assets

    $6000

    7

  • ARRA Status

    The DOE Metrics and Benefits work is transitioning into the reporting and analysis of impact metrics. Build metric reporting and analysis will continue.

    8

    Metrics and Benefits Plan

    Build Metric Reporting and Analysis

    We are here

    Impact Metric Reporting and Analysis

  • Application of Advanced Metering Infrastructure

    Investments in AMI are being made by 75% of the SGIG projects

    9

    Peak and Overall Demand Reduction

    62 projects are pursuing ……

    • 40 w/ pricing programs

    • 25 w/ customer systems

    • 21 w/ direct load control devices

    Operational Efficiency Improvement

    60 projects are pursuing ……

    • 60 w/ automated meter reading

    • 44 w/ voltage and power quality monitoring

    • 51 w/ outage detection and notification

    • 50 w/ tamper detection

    • 48 w/ remote service switch

    • Reducing requirements for generation capacity and energy (less fuel)

    • Improved asset utilization • Lower emissions (CO2, NOx, SOx) • Lower bills

    • Operations and maintenance (O&M) cost reductions

    • Greater responsiveness to customer • Lower outage duration • Improved energy efficiency

  • Pricing Pilot at Oklahoma Gas & Electric

    10

    Potentially Avoid Future Generation:

    • Study results show a 1.3 kW reduction per customer is possible

    • Hoping for 20% participation by Dec 2014

    • Targets: Enroll ~ 40K customers in 2012 with 72MW peak reduction; 150K customers by Dec 2014 with 210 MW peak reduction (offsets a natural-gas fired peaking plant)

    Customers with PCT reduced

    electricity usage by 20%

    Customers with IHD reduced

    electricity usage by 17%

    Price Level Residential VPP- CP Price

    Number of days in summer 2011 at each price level

    Low and off- peak

    4.5¢ per kWh 63

    Standard 11.3¢ per kWh 25

    High 23.0¢ per kWh 28

    Critical 46.0¢ per kWh 6

    Critical Event 46.0¢ per kWh 7 (included in the above)

    OGE deployed TOU-CP and VPP-CP programs in Summer 2011, VPP-CP is highlighted here.

  • Consumer Behavior Studies

    11

    Sierra

    Pacific

    Nevada

    Power OG&E MMLD CVPS VEC

    MN

    Power* CEIC SMUD DECo

    Lake

    land Total

    Rate Treatments

    TOU l l l l 3

    CPP l l l l l l l l 8

    CPR l l 2

    VPP l l 2

    Non-Rate Treatments

    Education l l l 3

    Cust. Service l 1

    IHD l l l l l l l l l 9

    PCT l l l l l 5

    DLC l 1

    Features

    Bill Protection l l l l l 4

    Experimental Design

    Opt In l l l l l l l l l l 9

    Opt Out l l l l 3

    Within l 1

    Number of Participants

    9,509 6,853 3,196 500 3,735 6,440 4,025 5,000 97,480 5,400 3,000 145,138 l l Sierra Pacific and Nevada Power are testing the effect of a technology package, including an IHD and a PCT

    * MN Power is also testing the difference between hourly energy feedback and daily energy feedback

  • Operational Efficiency Improvements at Talquin Electric Cooperative

    12

    Background: • For over 70 years, members submitted their own meter readings

    (highly inaccur

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