us smart grids and pv integration

Smart Grids in the USSmart Grids in the USand PV‐Grid Integration

Smart Grids ConferenceSalzburg 2009

May 14, 2009

©2009 Navigant Consulting, Inc.

Navigant Consulting, Inc.77 South Bedford StreetBurlington, MA 01803(781) 270‐8303www.navigantconsulting.com

Navigant Consulting’s Energy Practice

Navigant Consulting, Inc. (NCI) is a specialized consulting firm known globally for its emerging energy technology and strategy expertise.

Navigant Consulting Energy PracticeNavigant Consulting

• Publicly traded since 1996(NYSE NCI)

Energy Practice

Power Systems, Markets and

Business Planning & Pe fo a e

Emerging Technologies &

(NYSE: NCI)• 2008 revenues ‐$810 million

• 42 offices globally

Pricing Performance Improvement

gEnergy Efficiency

Clean Energy and Smart Grids

Visioningand Strategy

Valuation andBusiness Case

Planning andImplementation

1©2009 Navigant Consulting, Inc.

Agenda

1 Evolution of Smart Grids in the US

2 PV Integration with Smart Grids


Agenda




Drivers of US Smart Grids

Forces including customer involvement, energy reliability and climate change are driving the evolution of the Smart Grid.

Smart Grids in the US

• Po e uality to

Energy Reliabilityand Security

• Re e able e e y

Climate Change

• Mo e a d bette

Customer Involvement

• Power quality to support the future economy

• A resilient electric

• Renewable energy integration

• New end‐use products and services that

• More and better information for utilities, customers and energy service providers

power system to withstand and recover from natural disasters and attack

consume less fossil‐based energy

• More efficient delivery system

• Customers as energy partners

• New energy products and services

©2009 Navigant Consulting, Inc. 4

y

Key Observations and Trends

Several factors are influencing the evolution of the Smart Grid in the United States.Evolutionary Factors Key Observations and Trends

Regulatory/Investment Recovery

y

• Utilities are seeking regulatory security for recovery of Smart Grid investments

• Some utilities are waiting for recovery before implementing any technology others are experimenting first

y

y

Standards Development

technology, others are experimenting first

• Standards bodies are racing to keep up with leading utilities and the vendors they have selected

• New models are being employed to keep pace with the changes in

ValueClarification

technology

• Value analyses and business cases are starting to consider more complex benefits for multiple stakeholder groups

• Companies are beginning to consider new approaches to evaluatingClarification

The Federal Stimulus

• Grants will support deployment of Smart Grid technologies and systems

• Companies are beginning to consider new approaches to evaluating investments in system technologies

5

Stimulus Package

systems• Demonstrations will help explore advanced functionality


Smart Grid Deployments

Utilities across North America are engaged in a number of pilots and system implementations.

eploym

ent

TechnologyImplementation

Smart Grid Implementation

Scale

onFu

ll De Implementation Implementation

Technology Pilot

S

Dem

onstratio

Integrated Pilot

Individual Technology Integrated Systems

Pilot/D

6

Scope


Government Activity and Support

With $4.5 B in funding support, the Federal Stimulus package will be an unprecedented driver for Smart Grids development in the US.

American Recovery and Reinvestment Act

State Initiatives

• $4.5 B in federal investment for Smart Grid development

G t

State Initiatives• California• Pennsylvania• Illinois• Mi hi a

• Smart Grid Investment Grant Program

• Smart Grid Government Activity

• Michigan Demonstrations

Research and Development

7

NARUC‐FERC Smart Grid Collaborative


Agenda




Integrating PV with Smart Grids

Navigant Consulting conducted a large multi‐client study to examine the opportunities created by integrating PV with Smart Grids.

Does PV‐Smart Grid :

• Enable higher penetration of PV?

• Help PV provide value for thePV Drivers Smart Grid

Drivers• Help PV provide value for the grid?

• Create new business opportunities?opportunities?


Smart Grid‐PV Framework

Smart Grid systems support better communications and control between distributed resources and the utility distribution system.

AMI facilitates communications

Inverter

between utility information systems and PV inverters

Information FlowInverterPower

Control

Operator Interface

ElectricalService Panel

Utility Information Systems

AMISmart Meter

Power Flow

Load Circuits

Utility Distribution

SystemDAEnergy Storage

(ES)

Demand Response (DR)

DR curtails small amounts of customer load for short periods of time (<2 hrs)

ES provides input to inverter to compensate for PV variability (<8 hrs)

DA helps manage feeder voltage and

accommodate changing power flow

10

PV system Smart Grid plus DR and ES Functionality Electrical System Components


Smart Grid Enables More PV on Distribution Feeders

The Smart Grid enables higher penetrations of PV by addressing key technical challenges.

Can the PV‐Smart Grid enable higher penetrations of PV?

• Barriers to high penetration of PV include:− Technical T&D challenges

Can the PV‐Smart Grid enable higher penetrations of PV?

g− Communications challenges− Regulatory and business model challenges Th S t G id dd k t h i l T&D h ll• The Smart Grid addresses key technical T&D challenges

• By addressing the technical issues will allow utilities to accept more PV on distribution feeders without compromising

ti f d i litoperating performance and service quality

11

Yes. Smart Grid could support more PV on distribution feeders.


Increased Distributed PV Penetration

NCI estimates that rooftop PV penetration could be significantly higher by 2020 as a result of addressing T&D barriers with Smart Grid.

Cumulative Installed CapacityThe Smart Grid Enables

• Addressing technical challenges could result in:• hi h t t i

p yRooftop PVHigher Penetration of PV

16 000

20,000

• higher net metering caps• better interconnection

standards and processes• more prevalent time of use 8 000

12,000

16,000

MWpDC

ptariff options

• These changes simplify interconnection of PV and improve its economics increasing the 0

4,000

8,000Mits economics, increasing the projected installed capacity by over 60% by 2020.

2010 2015 2020

Rooftop PV Penetration without Smart GridRooftop PV with Smart Grid


High Penetrations of PV Adds New Value

Distributed PV can provide benefits in key areas. Combining this resource with energy storage enhances its value.

Can the PV Smart Grid help PV provide value for the grid?

• The greatest value of PV is derived from avoiding central generating capacity and avoided energy costs

Can the PV‐Smart Grid help PV provide value for the grid?

• Energy storage is a key for enhancing the value of PV in a Smart Grid context

• When concentrated, PV can provide benefits related to grid e o e a e , a p o i e e e i e a e o g ioptimization

• PV is cost effective assuming continuation of rebates and ITC credits – however, the incremental value of Smart Grid is notcredits however, the incremental value of Smart Grid is not enough to overcome the loss of incentives

13

Yes. PV in high penetrations can provide grid benefits.


Most Promising Areas of Opportunity

NCI identified the three most promising areas of business opportunity created by the PV‐Smart Grid.

S i i

Grid Optimization

T&D Capital Deferral3%

Spinning Reserve3%

Emissions Reductions

Reliability3%

Power Quality1%

Grid OptimizationCoordinated control of PV inverters,

primarily for regulating feeder voltage, may also provide utility or others ability to trip PV off in an

active mode

3%

Central Generation

Central Generation Energy Offset

59%

Capacity Deferral28%

DG PV Power PlantAggregate distributed PV systems across area or region into a reliable

d di t bl

Smart Capacity FirmingMeet end‐use energy demand by

coordinating on‐site PV and energy storage with demand response and potentially coordinate net end‐use d d ith tilit i t

59%

14

and predictable energy resourcedemand with utility requirements


Unlocking Value Could Create New Business Opportunities

By leveraging the Smart Grid and high penetrations of distributed PV, new opportunities to unlock value can be created.

Can the PV Smart Grid create new business opportunities?

• The analysis reveals three main areas for new value:• Deferred/avoided energy and capacity from traditional

Can the PV‐Smart Grid create new business opportunities?

/ gy p ygeneration

• Smart capacity firming by combining PV with energy storage• Grid optimization through coordinated control of PV• Grid optimization through coordinated control of PV

inverters• Tapping this value will require enhancements to technology,

policy and business modelspolicy and business models

15

Yes. PV‐Smart Grid could create new business opportunities.


Enhancements to Achieve Benefits

Achieving the benefits highlighted in the study requires enhancement of technology, policy and business models.

Technology Policy Business Models

• Technical/business requirements for

di i f

• Eligibility of integrated PV/

• Tariffs and pricing mechanisms that

i h

Technology Policy Business Models

coordination of AMI and PV

• Functional f

PV/energy storage systems for state/federal rebates and

monetize the benefits provided by distributed PVS ffrequirements for

leveraging PV as a grid resource

rebates and Investment Tax Credits

• Modification of

• Service offerings to facilitate participation of PV as a grid resource• Modification of

technical standards (e.g., IEEE 1547) to allow PV inverters

as a grid resource

16

to provide grid support


Contact Information

Forrest SmallDirector, Energy PracticeBurlington MA 01803Burlington, MA 01803+1 781‐270‐8303 [email protected]


us smart grids and pv integration

Documents