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West Virginia Smart Grid Implementation Plan
Costs, Benefits, and Roadmap
Smart Grid Interoperability Summit
June 16, 2010
Toronto, Canada
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Today’s Discussion
• What is the 21st Century telling us?– Asset utilization is low on power system
• West Virginia Smart Grid Implementation Plan– High outages and coal-fired generation
• Results for West Virginia– 5:1 benefit-to-cost to implement Smart Grid
• Key Lessons for the State and the Nation– Portion of capital can be used for Smart Grid
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What is the 21st Century Telling Us?
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From the 20th to the 21st CenturySubstantial Increase in Consumer Involvement
Generation
•47%
•17,342 units
Transmission
•43%
•164,000 miles
Distribution
•34%
•3 million miles
Consumer Systems
•<1%
•12.3 M DG
500 wind parks
50 solar parks5,000 distributed wind
5,000 utility solar
2 M architectural wind
5 M building solar
25 M residential solar
1 M PHEV/PEV
10 M PHEV/PEV
50 M PHEV/PEV
100,000 Buildings as PP
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Sea Change in the Network
• Consumer engagement with resources to solve power issues locally
• Two-way power flow in Distribution• As prices increase, local renewables will
increase in residential, commercial, and industrial
• Imperative to transform from passive to active control in Distribution
• New ways for Distribution to become a Transmission resource
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Smart Grid Characteristics
The Smart Grid is “transactive” and will:
• Enable active participation by consumers• Accommodate all generation and storage options• Enable new products, services and markets• Provide power quality for the digital economy• Optimize asset utilization and operate efficiently• Anticipate & respond to system disturbances (self-heal)• Operate resiliently against attack and natural disaster
Updated 02/25/2008
…the enabler
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Interoperability Challenges
• Cyber and interoperability standards• Merging of legacy and Smart Grid components• Technology obsolescence• Network congestion • Integration of variety of technologies/vendors
– Communications, sensors, data transmission• Data management • Privacy• Two-way communications and power flow
Updated 02/25/2008
West Virginia Smart Grid Implementation Plan (WV SGIP)
If you come to a fork in the road, take it.
- Yogi Berra
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West Virginia Smart Grid Implementation Plan
• Address the role of coal in Smart Grid• Support economic development in State of West Virginia• Only state-wide Smart Grid implementation plan completed• Only second Smart Grid study to be published in the nation
• $540K project jointly funded by NETL, RDS, Allegheny Power, AEP, State of West Virginia, WVU, and DOE OE
• Results describe the approach and value proposition of implementing Smart Grid in West Virginia
• Cost & benefit analysis compare the state of current electricity grid and future Smart Grid in West Virginia
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WV SGIP Process
Updated 02/25/2008
Final Report
Business Case
Implementation Plan
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As Is - Current State - Future Plans
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WV Smart Grid Future State
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Gap Analysis
4Modern Grid
Vision
WV Probable Future
Scenarios
TechnicalRegulatoryLegislativeConsumer
Other
List of Solutions
Milestones
Process
Decision
Document
Data
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Newly Discovered
Impact
WVU Assessment
Select Solutions
4a
Objectives and Project Planning
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Key Facts About West Virginia
• 991,000 electric customers (142,000 commercial and industrial)
• 16,500 MW of generation (90% coal-fired & 90MWh)
• Over 47,000 miles of distribution circuits
• 5,900 miles of transmission lines
• 58M MWh traded outside the state
• 32M MWh used inside the state
• AEP and Allegheny Energy serve 98% of the customers
• SAIDI (with storms) = 439 min/customer/yr
• National Avg SAIDI= 120 min/customer/yr
• SAIFI = 1.52• Storm SAIFI = 0.45• NOx = 157K T/yr• SOx = 456K T/yr• CO2 = 87M T/yr
Updated 02/25/2008
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Generation Capacity
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Principal Characteristics
Smart Grid Maturity Matrix Evaluation
Updated 02/25/2008
Current State
Future State
WV Smart Grid As-Is Principal Characteristics Aggregate Score
Final Results
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Proposed West Virginia Smart Grid SolutionsSolution Scope
Advanced Meter Infrastructure (AMI)
All residential, commercial and industrial Customers represented by 998,317 meters
IT Integration (IT) A CIS Upgrade to accommodate AMI and DR functionality & Outage Management
Demand Response (DR) The aggregated sum of 104 MW of DR from Residential, Commercial and Industrial Customers
Distribution Management System (DMS)
The automated fault clearing & restoration of service, circuit monitoring and control of the Distribution System to include 707 circuits of 1107 total circuits
Distributed Energy Resources (DER)
100MW of Base Generation, 800 MW of Peak Generation, 250 MW of Advanced Storage and 100 MW of Wind Resources all capable of being dispatched on demand
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Important Distinctions for WV
• Reductions in WV consumption go to exporting more energy– 104MW of DR, doesn’t necessarily mean a
reduction of generation. It likely means 104MW of increased export.
– More efficient delivery system (reduced line losses) means more export.
• Benefits from reduced WV outages is higher than most states– Higher outage parameters (number and duration)
are the overriding benefit potential of a WV Smart Grid
Updated 02/25/2008
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WV Smart Grid Costs & Benefits
PV 20-yr Cost and Benefits ($M)
Solution Cost BenefitsAMI $399 $1,649
IT $170 $1,308DR $22 $1,091
DMS $454 $3,288DER $832 $5,289Total $1,878 $12,625
Benefit to Cost Ratio for West Virginia 5:1
Benefit to Cost Ratio for San Diego 6:1
Benefit to Cost Ratio for US (EPRI, 2004) 4:1 to 5:1
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WV Benefits by BeneficiaryPV 20-yr Benefits by Beneficiaries ($M)
Solution Consumer Operational WV Society US Society
AMI $630 $439 $308 $271
IT $563 $136 $326 $283
DR $23 $614 $240 $214
DMS $2,909 $73 $303 $2
DER $3,368 $2 $301 $1,618
Total $7,493 $1,263 $1,479 $2,389
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WV Annual Benefits ($M)Key Success
FactorsBenefits Annual Benefits ($M)
(All Beneficiaries)
Reliability Reduced Consumer Losses $898Reduce Power Quality Events $131
Economic Reduce Price of Electricity $399Job Creation $215
Consumer Sales of DER Resources $175
Increased Energy Sales as Exports $7
Reduced Transmission Congestion $1
Increased Transportation Fuels Business $5Consumer Conservation $20
Operational Savings $194Environmental Reduced Emissions $7
Security Reduced Blackout Probability & Dependence on Foreign Oil $13
Safety Reduce Hazard Exposure $1
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Total Benefits & Cost Racking
$(2,000)
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Benefits Net of Cost
Total Benefits
Benefits
Total Cost
Costs
WV SGIPUS and WV Benefit and Cost Racking
20-year NPV (in $M)(Regional US + WV Utility + WV Consumer + WV Society)
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Racking Costs & Benefits by Solution
$(2,000)
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Benefits Net of CostTotal Benefits
Benefits
Total Cost
Costs
WV SGIPAll Solutions Benefit and Cost Racking
20-year NPV (in $M)
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Implementation Plan
Updated 02/25/2008
ID Task Name Start Finish Duration2010
1 104w12/29/20111/1/2010AMI
3 156w12/27/20121/1/2010IT Systems
5 156w12/28/20151/1/2013DR
7 156w12/27/20131/3/2011DMS
10 156w12/27/20171/1/2015DER Field
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4
6
8
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208w12/25/20151/2/2012AMI Field
52w12/30/20131/1/2013IT Systems Field
104w12/28/20171/1/2016DR Field
208w12/26/20171/1/2014DMS Field
104w12/29/20141/1/2013DER
2011 2012 2013 2014 2015 2016 2017
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Comparing Business As Usual to the Smart Grid Plan
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
CapEx & OpEx ($ Millions)
<--SG CapEx
SG OpEx
BAU CapEx
BAU OpEx
Year
$ M
illio
ns
Key Lessons for West Virginia and the Nation
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Coal and Smart Grid
Study Areas• Baseload coal becomes larger fraction of generation• Distributed coal enables high penetration of
intermittent renewables• Potential for coal-CHP applications
• Sensitivity analyses
Poly-fuel and poly-products, shift in generation mix, impact of EVs, impact of utility storage, impact of proposed carbon and renewable energy legislation
Updated 02/25/2008
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Conclusions
• Implementing a Smart Grid will: – Radically improve system reliability– Lower the carbon footprint– Support a better sustainable business climate– Generate benefits beyond the borders
• WV “numbers” (20-yr present value)– ~ 1 million meters– Total Smart Grid Cost - ~ $1.9B– Total Smart Grid Benefit - ~ $10B– Benefit Cost Ratio: 5:1
• A Smart Grid can be implemented with a portion of the business as usual (BAU) 10-year capital plan.
• A WV Smart Grid benefits the regional market (others outside the state benefit greatly)
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For More Information
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For additional Information:
http://www.netl.doe.gov/energy-analyses/index.html
Steve Bossart
Director, Integrated Electric Power Systems
Office of Systems Analysis and Planning
National Energy Technology Laboratory
304-285-4643