1. A Vision for a Holistic and Smart Grid with High Benefits to Society Stephen Lee Senior Technical ExecutivePower Delivery & Utilization December 2, 2009 T&D Asia 2009, Bangkok

2. Outline

HolisticApproach

Valuesto Society

Opportunity toInnovate

Smart GridStrategy

3. What is TheSmart Grid?

Engaging Consumers

Enhancing Efficiency

Ensuring Reliability

Enabling Renewables & Electric Transportation

Many Definitions But OneVISION Holistic Highly Instrumented with Advanced Sensors and Computing Interconnected by a Communication Fabric that Reaches Every Device 4. What is Holistic?

Holistic approach means considering the Whole

What is the Whole System addressed by the Smart Grid?

• Traditional Electric Power System

• Modern Electric Power System

• End-to-End Power Delivery Value Chain

Holistic 5. Modern Electric Power System

Renewable wind and solar

Smart meters

Energy storage

Demand response / dynamic pricing

Distributed generation and storage

Electric or plug-in-hybrid electric vehicles

Advanced transmission technologies

Advanced sensors

Synchrophasors or phasor measurement units

Wide-area measurements and control

Emergency operation and system restoration

Holistic Challenge is to integrate all of them 6. End-to-End Power Delivery Value Chain Data Communication Wide Area Control Sensors Monitoring, Modeling, Analysis, Coordination & Control Holistic End-uses & DR Distribution System Transmission System Energy Storage Fuel Supply System Fuel Source/Storage Power Plants Renewable Plants Controllers ZIP M Dynamic Load Models Dynamic Power Plant Models 7. SmartEnergyDelivery Value Chain

Not Just a Smart Electric Power Grid, but includes:

Gas utility system

Fuel supply system (oil/natural gas pipelines, coal & shipping)

Water system, e.g., for power plants cooling and district heating

Electrified transportation

Weather systems (wind and solar forecasting)

Communication network (voice and data) and cyber security

Carbon reduction & other pollution control systems

Markets power, carbon, other emissions

Customer behavior engagement

Holistic 8. Smart Grid Domains Source: EPRI Report to NIST on Smart Grid Interoperability, June 2009 Holistic 9. Role of National Institute of Standardsand Technology (NIST)

In cooperation with the DoE, NEMA, IEEE, GWAC, and other stakeholders,NISThas primary responsibility tocoordinate development of a framework that includes protocols and model standards for information managementto achieve interoperability of smart grid devices and systems

Energy Independence and Security Act (EISA) of 2007Title XIII, Section 1305Smart Grid Interoperability Framework Holistic 10. NIST Phase 2 and Phase 3 Plan March September 2009 2010 Holistic PHASE 1 Recognize a set of initial existing consensus standards and develop a roadmap to fill gaps PHASE 2 Establish public/private Standards Panel to provide ongoing recommendations for new/revised standards to be recognized by NIST PHASE 3 Conformity Framework (including Testing and Certification) 11. Benefits to Society

The greatest values to society from the Smart Grid comes from

Integration of :

• renewable resources,

• energy storage,

• demand response,

• electric transportation, and

• energy efficiency,

While increasing power delivery reliability and fast system restoration, and

Improving the global environment.

Values 12. Current State Power Grid Operations 2-4 Sec scan rates Limited to info from lines and transformers at substations MW, MVAR, KV breaker status Limited Grid Visibility Values 13. Smart Transmission State Power Grid Operations Higher speed scan rates Allows more frequent analysis of system state Enhanced Grid Visibility Values 750 +282j 250 +84j 100 +62j 20 + 8j 276 + 120j 130 + 8j 300 + 100j 750 + 262j 440 + 200j 120 + 11j 350 + 150j 227 + 420j 704 + 308j 2 3 4 5 7 6 1 8 9 10 11 12 13 14 15 16 17 176 +88j 14. Online Stability Monitoring & Analysis Wide Area Visualization Model Validation & Adjustment Controlled Separation & Restoration PMU Applications Improve situational awareness Increase transfer capabilitiesPrevent cascading failures & reduce wide-area blackouts Reduce system restoration time and outage durations Improve accuracy of models Research Development Application Demonstration Values 15. North America Electricity Balancing Authorities Values 16. Variability of Wind Generation Values 17. Solar Thermal (CSP)vsPhotovoltaic (PV) Output Source: Larry Stoddard, Black & Veatch Sunny Day Cloudy Day Values 18. Compressed Air Energy Storage AEC CAES Plant (McIntosh, Alabama): - - Arial View - -

First US CAES Plant: Alabama Electric Cooperative McIntosh Plant (110MW 26 Hr)

Started commercial operation: midnight May 31, 1991

Due to excellent part load efficiency, regulation ramping, and/or spinning reserve duty are often used

AEC McIntosh Site: CAES Plant On Right and Two Combustion Turbines On Left Values 19. Balancing Intermittent Resourceson the Grid V f High Low Supply Demand Values 20. What is Demand Response?

Voluntary ,temporaryadjustment of power demand by end-user or counter-party in response to market signal (e.g. price, emergency, etc.)

Three basic forms

• Direct Load Control

• Price Response

• Interruptible Tariff

Enabling technologyautomation ubiquityDR magnitude & reliability

Still subject to human behavior

• Even with automation, overrides possible

• Persistencea question

Image source: GDF Suez Values 21. Smart Grid Enabling Consumersto be More Efficient Numerous studies have been conducted to quantify the impact of information on electricity consumption Making Consumers Energy Aware Values 22. Prices to Devices Tomorrows Smart Pricing Efficient Building Systems Utility Communications Dynamic Systems Control Data Management Distribution Operations Distributed Generation and Storage Plug-In Hybrids Smart End-Use Devices Control Interface Advanced Metering Consumer Portal and Building EMS Internet Renewables PV

Thermostat receives day-ahead hourly prices

Consumer sets upper and lower limits

Thermostat learns thermal, consumer and weather impacts

Values 23. Smart Grid Enabling PHEVThrough Smart Charging

Utility Auto industry collaboration

Standardize interface vehicle-to-grid

Open systems

Plug-In Vehicle AMI Path Smart Charging Back End Energy Management, Cust ID, Billing Non-AMI Path Standard Interface Values 24. Foundations Need Strengthening

End-to-End Situational Awareness

Alarm Management and Real-Time Root-Cause Diagnosis

Dynamic Models of all Generators and Loads

Faster System Restoration

System Integrity Protection Schemes

• Faster reflex actions on wide-area problems

• Measurement-based safety nets to prevent cascading blackouts, e.g., load shedding, islanding/separation, damping

Values 25. Fast System Restoration Can ReduceSocial Impact Of Widespread Blackouts Source: NSF/EPRI Workshop on Understanding and Preventing Cascading Failures in Power Systems, Oct 28, 2005. Extensive (magnitude & duration) blackoutscost Billions of $ to the economy Values 26. New Regulatory or Market SolutionsAre Needed

Virtual Service Aggregators serving as Energy Balancing Authorities

• Dispatch and control highly variable but renewable wind and solar generation

• Dispatch and control (and own?) large scale energy storage plants

• Manage demand response proactively

• Manage smart electric vehicle charging

Virtual Vertical Utilities

Innovate 27. Potential Role of the VirtualVertical Utility Innovate 28. Synergy with Other Systems

Transportation system

Water system

Electric appliance design

Regional planning

Green building

Green urban planning

Local/national interests

• Employment

• Technology development

• Local conditions

• Energy diversity/security

Innovate 29. Challenges to Business-As-UsualAssumptions

AC vs DC distribution vs wireless

Obligation to Serve vs Obligation to Obtain

Transmission network as common carrier requiring automatic toll collection

New business entities e.g. virtual vertical utilities and virtual energy balancing authorities

Microgrid power companies or cooperatives

Application of Internet

Zero energy appliances and buildings

Innovate 30. ASEAN Power Grid Strategy Batam Philippines Brunei Vietnam Malaysia Laos Cambodia Myanmar Indonesia Singapore Thailand Philippines Brunei Vietnam Malaysia Laos Cambodia Myanmar Indonesia Thailand 1 2 3 4 5 6 7 8 9 10 11 WestKalimantan Sumatra Sabah Sarawak Eastern System Western System 31. How to Develop A Smart Grid Strategy

Consider Region as a Whole

Consider all costs in the Whole system

Consider all benefits in the Whole system

Directly address equitable allocation of all costs and benefits (including environmental and social costs)

What Investments give highest Benefit-Cost ratios?

Lay out long term and short term plans

Be Realistic about maturity and commercial readiness of different technologies

Engage in the global developments of Smart Grid standards

Consider regional collaboration on Smart Grid demonstration projects with cost sharing between governments and industries

Strategy 32. Smart Grid: Focus on What has HighBenefits to Society Smart Grid Strategy Need an Objective Assessment of the Potential for Smart Grid and the Path to Achieve it 33. Conclusions

Need to Make the Whole Value Chain Smarter

Smart Grid would Modernize the Electric Power System

Key Messages:

• Focus on Benefits to Cost Payback

• Consider all parts together (Holistic approach)

• Remove deficiencies in foundations

• Implement new solutions

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