An Overview of the Smart Grid

David K. OwensChair, AABE Legislative Issues and Public Policy Committee

AABE Smart Grid Working Group WebinarSeptember 7, 2011

What is the Smart Grid?

An advanced, telecommunication / electric grid with sensors and smart devices linking all aspects of the grid, from generator to consumer, and delivering enhanced operational capabilities that:

Provide CONSUMERS with the information and tools necessary  to be

responsive to electricity grid conditions (including price and reliability)

through the use of electric devices and new services (from smart

thermostats to PHEV) Ensure EFFICIENT use of the electric grid (optimizing current assets

while integrating emerging technologies such as renewables and storage devices) Enhance RELIABILITY (protecting the grid from cyber and natural attacks, increasing power quality and promoting early detection and self correcting grid “self-healing” ) 2

Smart Grid … Sensing and Measurement

Advanced Sensors

Remote Monitoring of Expensive Equipment(e.g. Transformers)

Smart Meters

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Smart Grid … Integrated Communications

Examples:

PowerlineBroadband over Powerline (BPL)

CellularRadio Frequency (RF)

Satellite4

Smart Grid …Advanced Control

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Smart Meter Platform and Home Area Network Technologies will take EE and

DR to New Levels

HAN communication

SmartMeter communication

…Giving customers the tools and the know-how to be smarter energy consumers

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Why Do We Need A Smarter Grid?

(Grid Modernization)

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Transformational Technology

Game Changing Technology that Will Transform the Industry New Customer Relationships Greater and Better Customer Energy Control New Businesses / Strategic Partnerships New Market Participants

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A New Kind of Utility/Customer

Engagement Use of advanced

customer service channels to deliver customer benefits, choice and control

Shift from reactive issue resolution to proactive information transfer

Information push versus pull customer service model

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Smart Meter Map Details

27 million smart meters installed as of September 1, 2011.

The map captures smart meter installations and planned deployments by IOUs, large public power utilities, and some coops.

65 million smart meters projected to be deployed by 2015. 54% of U.S. households

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Smart Grid Implementation Challenges There is tremendous and growing

pushback from customers and regulators to the smart meter. It focuses on Accuracy of meters Health concerns: Radio Frequency Exposure Who decides whether a meter should be installed? Cost of installation Access to information: privacy intrusion Impact “at risk” customers Dynamic pricing Customers are not seeing immediate benefits

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