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Smart Grid Computational Tool (SGCT)

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What is the DOE Smart Grid Computational Tool (SGCT)? What does it do?

The SGCT is an analysis tool that identifies the benefits of a SG project and guides the user through an analysis which quantifies those benefits.

The SGCT characterizes smart grid (SG) projects by identifying the what technology will be installed and what functionality that technology will enable.

Based on the characterization of a project it identifies the economic, reliability, environmental and security benefits the SG project will yield.

The SGCT uses user entered data to calculate the monetary value of benefits and prepares graphs and tables that compare the costs and benefits to help determine the project’s overall value.

The SGCT can also perform a sensitivity analysis.

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The SGCT can calculate the value of the following benefits*:

Benefit CategoryBenefit

Sub-categoryBenefit

Economic

Improved Asset Utilization

Optimized Generator Operation (utility/ratepayer)Deferred Generation Capacity Investments (utility/ratepayer)Reduced Ancillary Service Cost (utility/ratepayer)Reduced Congestion Cost (utility/ratepayer)

T&D Capital SavingsDeferred Transmission Capacity Investments (utility/ratepayer)Deferred Distribution Capacity Investments (utility/ratepayer)Reduced Equipment Failures (utility/ratepayer)

T&D O&M SavingsReduced Distribution Equipment Maintenance Cost (utility/ratepayer)Reduced Distribution Operations Cost (utility/ratepayer)Reduced Meter Reading Cost (utility/ratepayer)

Theft Reduction Reduced Electricity Theft (utility/ratepayer)Energy Efficiency Reduced Electricity Losses (utility/ratepayer)Electricity Cost Savings

Reduced Electricity Cost (consumer)

ReliabilityPower Interruptions

Reduced Sustained Outages (consumer)Reduced Major Outages (consumer)Reduced Restoration Cost (utility/ratepayer)

Power QualityReduced Momentary Outages (consumer)Reduced Sags and Swells (consumer)

Environmental Air EmissionsReduced Carbon Dioxide Emissions (society)Reduced SOX, NOX, and PM-10 Emissions (society)

Security Energy SecurityReduced Oil Usage (society)Reduced Wide-scale Blackouts (society)

*Methodological Approach for Estimating the Benefits and Costs of Smart Grid Demonstration Projects, EPRI, January 2010.

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How can the SGCT be used?

The tool was designed to be used by a number of different groups for a number of different purposed. For utilities:

The SGCT can be used after SG technology is implemented to: Better understand the benefits of a SG project or technology Compare costs and benefits of a SG project Compare the benefits of a SG project given different scenarios Inform future investment with the results of the analysis

The SGCT can be used prior to implementing a SG project to: Help prepare a business case for the project Identify the potential benefits of the project and estimate their

magnitude Help plan a data collection strategy that will allow benefits of the

project to be quantified IMPORTANT: This type of analysis requires the user to make

assumptions about how the project will impact the system.

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HOW DOES THE TOOL WORK?

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Illustration of the inputs and outputs of the SGCT

US DOE SGCT

Inputs Outputs

Data that corresponds to Impact Metrics

Data derived from estimates and assumptions

Examples

AMI/Smart Meters, Automated Feeder and Line Switching

Annual Generation Costs, Number of

Tamper Detections

Cost Parameters and Escalation Factors

Discount Rate, Total Capital Cost, Inflation

Rate, Population Growth

Value of Service, Price of Capacity at Peak, Value of CO2

Sensitivity FactorsHigh and Low case

Value of CO2

Monetary Value of up to

22 Benefits

NPV Analysis of Project

Sensitivity Analysis of

Project

All Output is calculated

over multiple years (beyond initial 5 years of data entry)

The SGCT identifies, organizes, and processes the inputs required to analyze the costs and benefits a SG project.

Smart Grid Project Assets, Functions, and Mechanisms

Click each of the chevrons to

“dig deeper”

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What equations are required to translate data into monetary value?

The Theory Behind the Tool: How do you analyze the monetary benefit of a smart grid project?

Functions Mechanisms Benefits

What does the Smart Grid do?

How does itdo that?

What “goodness” results?

Monetary Value

What is the goodness worth?

Assets

What are Smart Grid technologies?

Metrics Calculations Forecast

What data should be tracked to capture benefits?

How can benefits be projected beyond the first 5 years?

Module 1 of the SGCT

Module 2 of the SGCT

Module 3 of the SGCT

The analysis that the tool guides a user through is based on the questions above.

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The output from one module becomes the input for the next module.

Characterization Module

Data Input Module

Computational Module

Purpose Determine the list of project benefits.

Filter irrelevant metrics. Guide and assist data entry.

Calculation engine. Present results.

Inputs Assets, Functions, Mechanisms

List of Benefits Calculation Dataset, Sensitivity Ranges

Outputs List of Benefits Calculation Dataset

Tabular and Graphic Presentation of Monetized Benefits.

Key Methodologies

Asset-to-Functions and Function-to-Benefits Relational Models

Benefit-to-Inputs Relational Model

Smart Grid Benefits Calculations

DOE SGCT Modules

1 2 3

Click each of the chevrons to

“dig deeper”

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The Characterization Module helps the user navigate the Asset-Function-Mechanism-Benefit Map.

USER INPUT

USER INPUT

USER INPUT

IPSM OUTPUT

BACK Screenshots

Enables Functions

A, C, and D

Enables Mechanisms B, C, and D

Results in Benefit #4

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Calculation Dataset

Data Quality Filter

The Data Input Module prompts users to enter data only for relevant metrics and checks data entry.

BACK Screenshots

Relevant Metrics for SG Project

Complete Metric BankFilters based on the

project Benefits determined in the previous module

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The Computational Module performs various analyses, carries out calculations and produces outputs.

Calculation Dataset from previous module

High and Low Sensitivity Ranges for Inputs

22 Benefit Calculations

NPV Analysis

Sensitivity Analysis

INPUTS Calculation Engine OUTPUTS

BACK Screenshots

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The SGCT User Guide includes explanations of the methodologies and step-by-step instructions.

The first half of the User Guide is dedicated to: Providing context for the tool and explaining its purpose. Explaining the general methodology for assessing the benefits of

a smart grid project. Explaining the Asset-Function-Benefit Mapping and defining each

Asset, Function and Benefit. The second half of the User Guide is dedicated to:

Explaining the general Architecture of the SGCT Providing a step-by-step instruction manual for using the SGCT.

The Appendix of the User Guide documents and explains: The detailed cost and benefit calculations used in the tool Key concepts and assumptions (ex. baseline, inputs, escalation

techniques, s-curve model).

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IPSM Screenshots

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PDIM Screenshots

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MCT Screenshots

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Assets, Functions, and Mechanisms define what the SG project is and what it does.

Smart Grid Project Assets, Functions, and Mechanisms

Assets – These inputs describe the SG technologies or technology groups being implemented by the project.

Functions – These inputs describe what the SG does. Mechanisms – These inputs are linked to specific Functions

and describe in greater detail how the SG exercises each function.

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Data that corresponds to Impact Metrics

Impact metrics capture the effects SG has on the electric grid or its management and operation.

Impact metrics quantitatively capture the impacts of the SG on the electricity grid or its management and operation.

This data must be directly measured or tracked after the SG project is implemented.

These metrics are used to calculate benefits.

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Data or information that can be estimated or assumed are used in benefit calculations.

In addition to using data that must be directly measured or tracked, the tool uses data that can be estimated or assumed.

Examples of this type of data include: price of generation capacity at peak, the value of service to a customer during an outage, and the value of CO2.

This data is used to calculate benefits.

Data derived from estimates and assumptions

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Parameters that describe the cost of the project and factors that allow results to be extrapolated

Cost parameters describe the overall cost of the project and include items such as discount rate, interest rate, amortization period, and capital cost.

Escalation factors allow inputs to be extrapolated beyond the first 5 years of data entry so that results can be extrapolated.

Examples of escalation factors include population growth rate, inflation rate, and electricity demand rate.

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Cost Parameters and Escalation Factors

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Sensitivity Factors are used in the sensitivity analysis.

Sensitivity factors multiply the data inputs by a certain percentage

A high and low sensitivity factor can be set for every input in the analysis

Using these sensitivity factors high and low scenarios can be created and the results of these scenarios can be compared

Sensitivity Factors

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