12/7/2012 1National Academy of Engineering ‐ BMED

December 2008www.oe.energy.govU.S. Department of Energy – 1000 Independence Ave., SW  Washington, DC 20585

Experience in Smart Grid Development in the United States

Presented at the APEC Energy Working Group

Washington, DC 

Dan Ton

Program Manager, Smart Grid R&DNovember 6, 2012

December 2008

Outline

Smart Grid Landscape in the U.S.

Smart Grid Development by the U.S. DOE

— Recovery Act Smart Grid Programs

— Smart Grid R&D Program

International Smart Grid Action Network (ISGAN)

2

December 2008

The North American Electric Grid

U.S. Figures22% of world consumption

3,200 electric utility companies

17,000 power plants

800 gigawatt peak demand

165,000 miles of high‐voltage lines

6 million miles of distribution lines

144 million meters

$1 trillion in assets

$350 billion annual revenues

3

December 2008

Key Drivers Toward Future of Electric Grid

• More than 5000 billion kWh• Load curves – increased peaking• PEVs (could increase demand 25%)• More electrically sensitive equipment (2.5x)*

• More than 5000 billion kWh• Load curves – increased peaking• PEVs (could increase demand 25%)• More electrically sensitive equipment (2.5x)*

• Blackouts • Aging infrastructure• Vulnerability of assets

• Blackouts • Aging infrastructure• Vulnerability of assets

• 140 control areas• Energy management systems (<1%)

• 180,000 miles of wires• ~10 million DG units

• 140 control areas• Energy management systems (<1%)

• 180,000 miles of wires• ~10 million DG units

• 51% coal• 19% nuclear• 20% natural gas• 3% oil• 6% hydro• 1% other renewable

• 51% coal• 19% nuclear• 20% natural gas• 3% oil• 6% hydro• 1% other renewable

• More natural gas• More renewables

• Same or less coal• Same or less nuclear• Same or less oil

• More natural gas• More renewables

• Same or less coal• Same or less nuclear• Same or less oil

• Nodes within control area increase 5‐10x• Energy management systems (70%)• Additional 30,000 miles needed• ~ 22 million DG units (2.5x increase)

• Nodes within control area increase 5‐10x• Energy management systems (70%)• Additional 30,000 miles needed• ~ 22 million DG units (2.5x increase)

• Infrastructure protection• Increased globalization• Materials and resource limitations• All‐hazard risks will continue to increase

• Infrastructure protection• Increased globalization• Materials and resource limitations• All‐hazard risks will continue to increase

• 3653 billion kWh• Hybrids, No PEVs• Electrically‐sensitive equipment (limited consideration – PQ)

• 3653 billion kWh• Hybrids, No PEVs• Electrically‐sensitive equipment (limited consideration – PQ)

2009 2035

Vulnerability of Energy Infrastructure• Interdependencies of electric and

energy systems• Communications & controls

Complexity of Grid • Expanding footprint• Overlay of markets• Operating “closer to the edge”

Demand Transformation• Expanding digital economy• Demand-side management• Demand growth

Changing Supply Mix • Expanding transmission• Increasing system flexibility

needs

4

December 2008

Smart Grid Focus

Institutional issues/solutions must be considered in conjunction with these technology needs

Smart Grid Domain

Generation End UserTransmission Distribution

System understanding and control:  visualization, communications, computation

System flexibility for stability:  storage, demand response, accommodating increased variability

Interface with end users: deployment of AMI, microgrids, etc.

Integration of renewables: improved operation, planning, etc.

Improved efficiencies in buildings and 

industry

Cleaner generation technologies

Accessing high quality sources of renewable energy and addressing line congestion

Accommodating increased use of EV, PV, DG, and consumer participation

System security:  physical security, cyber security, mitigating increased vulnerabilities

Seamless connection:  two‐way power flows and increased data streams

5

December 2008

DOE Smart Grid Implementation Plan

Key Activities

Smart Grid Challenges

Smart Grid Characteristics

Vision

Enables Informed Participation by

Customers

Accommodates All Generation &

Storage Options

Enables New Products, Services,

& Markets

Provides Power Quality for the Range

of Needs

Optimizes Asset Utilization &

Operating Efficiency

Operates Resiliently to Disturbances,

Attacks, & Natural Disasters

Advancing Functionality with New Technologies

Building a Strong Business Case for

Smart Grid Investment

Developing Appropriate

Standards for Interoperability

ForecastingConsumer

Participation in Energy Management

Enhancing Cybersecurity

Sustaining a Skilled Workforce

Smart Grid Demonstrations and Deployment

Research and Development

Standards Interconnection

Planning and Analysis

Workforce Training

Stakeholder Engagement and Outreach

Monitoring National Progress

A smart grid that uses digital technology to improve reliability, security, and efficiency (both economic and energy) of the electric system from large generation, through the delivery systems to electricity consumers and a growing

number of distributed-generation and storage resources

Source: Office of Electricity Delivery and Energy Reliability 6

December 2008

Smart Grid Investment Grant (SGIG)

Customer Systems

Customer Systems

Customer Systems

Customer Systems

Deploying technologies for immediate commercial use supporting manufacturing, purchasing, and installation of smart grid technologies

Customer Systems

Advance Metering

Infrastructure

ElectricDistribution

Systems

Electric Transmission

Systems

• Displays

• Portals

• Energy management

• Direct load controls

• Smart meters

• Data management

• Back office integration

• Switches

• Feeder optimization

• Equipment monitoring

• Energy storage

• Wide area monitoring and visualization

• Synchrophasor technology

• Energy storage

Customer Systems

EquipmentManufacturing

• Energy devices

• Software

• Appliances

99 projects, $3.4B Federal + $4.6B Private Investments7

December 2008

Smart Grid Demonstration Program (SGDP)

Demonstrate emerging technologies and alternative architectures to validate business models and address regulatory/scalability issues

32 projects, $620M Federal + $980M Private Investments

Grid‐Scale ES Applications

•Large Battery Systems (3 projects, 53MW)

•Compressed Air (2 projects, 450MW)

•Frequency Regulation (20MW)

•Distributed Projects (5 projects, 9MW)

•Technology Development (5 projects)

Smart Grid Regional Demonstrations

•12 AMI

•10 PEV charging points

•10 HAN

•9 In‐home displays

•9 SCADA improvements

•8 Energy storage

•8 Distribution automation

8

December 2008

Smart Grid Interoperability Standards

NIST Smart Grid Interoperability Standards Program

•Added 22 standards, specifications, and guidelines to the 75 previously recommended as immediately applicable

• Expanded cyber security and product testing guidance

• Expanded discussion of Smart Grid architecture 

• New framework for testing conformity – the Interoperability Process Reference Manual

Published Interoperability Framework and 

Roadmap, Release 2, in Feb 2012

• Public‐private partnership created in Nov. 2009 to coordinate standards developed by Standards Development Organizations (SDOs) including IEC, ISO, ITU, IEEE, … 

• >700 member organizations (>1,800 individuals)

• Open, public process with international participation

Launched the Smart Grid 

Interoperability Panel (SGIP)

9

December 2008

DOE Analytical Approach

Exam

ple

Improvesfeeder voltage regulation

Reduced feeder losses worth$60 per MWh

Automatic Voltage and VAR Control

• Capacitor controls

• Distribution Management System

Functions Mechanisms Benefits

What does the Smart Grid

do?

How does itdo that?

What “goodness”

results?

Monetary Value

What is the goodness

worth?

What are Smart Grid

technologies?

Assets

$6000

10

December 2008

DOE Smart Grid Computational Tool (SGCT)*:  Tracking Grid Modernization Goals and Calculating the Value of Specific Benefits

• 15.5 million smart meters

• 800 Phasor Measurement Units

• 6,500 Distributed Circuits

Deployment of Smart Grid Technologies 

• Reductions in monthly bills for customers with smart meters and enabling technologies

• Reductions in peak demand translate to less generation capacity required

• Reductions in operating costs for distribution circuits with automated equipment

Economic Benefits

• Reduction in length of power outages

• Reduction in frequency and geographic scope of power outagesReliability Benefits

• Reductions in energy wasted (line losses) in distribution circuits

• Reduced emissions of CO2, NOX , and SOX associated with electricity consumption of customers with smart meters and enabling technologies

Environmental Benefits

*Available for download at http://www.smartgrid.gov/recovery_act/program_impacts/computational_tool 11

December 2008

OE Research & Development Program

Program Areas Goals

Clean Energy Transmission and Reliability

Transmission Reliability and 

Renewables Integration

Advanced Modeling Grid Research

Develop advanced monitoring, control, and 

computational applications to reliably operate 

the US transmission system.

Smart Grid

Smart Grid R&D

Power Electronics

Develop advanced digital technology for applications at 

the distribution level to achieve self‐healing from grid 

disturbances and full customer participation and choice

in load management.

Energy Storage Develop new and advanced energy storage technologies 

that will enhance the stability and reliability of the future 

electric grid.

Cybersecurity for Energy Delivery Systems Develop resilient energy delivery systems that can survive a 

cyber incident while sustaining critical functions.

12

December 2008

Dollars  in Thousands

FY 2011 FY 2012 

23,000 19,924

Smart Grid R&D Program

Promotes development of anefficient, fully integrated “smart”grid through the adaptation andintegration of digital informationand communication technologiesinto the Nation’s electricitydelivery system.

Guided by MYPP* focusing R&D on:› DER/DR/PEV integration

› Distribution automation

› Microgrids

› Standards & best practices

Plus crosscut efforts on:• Communications and Outreach (incl. support of the President’s Green Button Initiative)

Guided by MYPP* focusing R&D on:› DER/DR/PEV integration

› Distribution automation

› Microgrids

› Standards & best practices

Plus crosscut efforts on:• Communications and Outreach (incl. support of the President’s Green Button Initiative)

13

* MYPP available at: http://www.smartgrid.gov/sites/default/files/oe_mypp.pdf

December 2008

0%

20%

40%

60%

80%

100%

0% 20% 40% 60% 80% 100%

Lo

ad

Facto

r (%

)

Percentage of Year

75%

5%

5% = ~400 hrs/yr

90%

Renewable and Distributed Systems Integration (RDSI)

Lower Peak Demand Reduces Infrastructure  Investments

25% of distribution & 10% of generation assets (transmission is similar), worth 100s of billions of US dollars, are needed less than 400 hrs/year!

25% of distribution & 10% of generation assets (transmission is similar), worth 100s of billions of US dollars, are needed less than 400 hrs/year!

9 demonstration projects in 8 states to integrate use of DER to provide at least 15% peak demand reduction on distribution feeder or substation

Projects are either microgrids or are developing technologies that will advance microgrids

Systems must be capable of operating in both grid parallel and islanded modes

$55 million of DOE funds over five years (total value of awards will exceed $100 million, including participant cost share) 

14

December 2008

PEV Integration

Reduce current costs of commercially available EVSE (residential and non‐residential), with smart grid capabilities, by 50% in 3 years

Key features: Bi‐directional communications; Human machine interface for applications to provide local user input/output; PEV load management & smart controls; Conformance to interoperability, cyber security, and safety standards

FY 2011 Smart Grid‐Capable EVSE FOA

Source: Transforming Global Markets for Clean Energy Products, IEA (2010)

Four awards announced in December 2011(Total value: $10.8M over 3 years, with $6.8M from DOE)

15

December 2008

Distribution Automation – FY 2010 FOA Awards

Seamless integration of AMI & demand response, customer‐owned DER, fault location, isolation, & restoration, volt/VAR control, & dynamic reconfiguration for distribution automation

− Boeing Distribution Management System

− Alstom’s e‐terra integrated distribution management system

16

Integrated Distribution Management System

Advanced Communications and Controls

On‐Ramp Wireless:  Develop a wide area wireless distribution grid sensor and faulted circuit indicator system capable of monitoring underground and other hard‐to‐reach distribution circuits 

ABB: Develop a real‐time distribution feeder performance monitoring, advisory control, and health management system for enhanced asset utilization and grid reliability 

December 2008

Green Button Data and Information Tools

Allow consumers to download standardized data file byclicking online “Green Button” to view their energy useinformation and send to 3rd parties for value-added services

7 awards announced in May 2012 to demonstrate and adopt information tools to allow consumers to better manage energy use

Value‐added ServicesStandard EUI File Format

7 Green Button Apps for Energy awards announced in May‐June 2012 to get the most out of Green Button data

20 utilities committed to provide Green Button data access to 31 million customers  (as of May 2012)

17

December 2008

Outyear Smart Grid R&D Funding Opportunity Area, 

Pending Funds Availability

18

Microgrid Development

• RD&D to reach 2020 targets on costs, reliability, system energy efficiencies, and emissions, as defined at the August 2011 DOE Microgrid Workshop

• Definitization of RD&D priority and technology performance specifications to be discussed at the July 30‐31, 2012, DOE Microgrid Workshop 

December 2008

ISGAN: What and Why

19February 24, 2012

ISGAN…

• Fulfills a key recommendation in the Smart Grids Technology Action Plan(released by Major Economies Forum Global Partnership, 2009)

• Was launched as one of 11 initiatives under the Clean Energy Ministerial (in 2010)

• Is organized as an IEA Implementing Agreement (in 2011)

• 22 signatory member nations (as of August 2012)

• Six annexes established, with the U.S. leading on Annex 1

• Builds on the momentum of and knowledge created by the substantial smart grid investments being made globally

• Will leverage cooperation with the Global Smart Grid Federation and others

A mechanism for bringing high-level government attention and action to accelerate the development and deployment of smarter electricity grids around the world.

19

December 2008

12 CEM Initiatives

International Smart Grid 

Action Network

Super‐Efficient Equipment and 

Appliance Deployment Initiative

Electric Vehicles Initiative

Bioenergy Working Group

Carbon Capture Use and Storage Action Group

Clean Energy Education and Empowerment 

Women’s Initiative

Clean Energy Solutions Centers

Global Superior Energy 

Performance Partnership

Multilateral Solar and Wind Working 

Group

Solar and LED Energy Access 

Program

Sustainable Development of Hydropower Initiative

21st Century Power 

Partnership

(new in 2012)

20

December 200821

ISGAN Principal Focus Areas

December 2008

ISGAN Work Portfolio

Annex 5:Smart Grid 

International Research Facility Network 

(SIRFN)

Annex 6: Power T&D Systems

Foundational ProjectsNew 

Projects*

Annex 4: Synthesis of Insights 

for Decision Makers**

Annex 2: Smart Grid Case 

Studies

Annex 3: Benefit‐Cost Analyses and 

Toolkits

Annex 1: Global Smart Grid 

Inventory

**Knowledge sharing by design *Approved March 201222

December 2008

Linkage Among Annexes 1‐3 

Annex 2: Smart Grid Case 

Studies

Annex 3: Benefit‐Cost Analyses 

and Toolkits

Annex 1: Global Smart Grid 

Inventory

Common projects for assessment/analysis

• Identify national drivers and tech preferences

• Select projects with strong opportunities for int’l comparison

• Qualitative assessment of selected projects (narrative)

• Quantitative assessment of selected projects

Common contextual information, metrics, and KPIs

23

December 2008

SIRFN Interests

Renewable Energy/Distributed Energy Integration

Building Automation

Electric Vehicle Integration

Microgrids

Distribution Automation

Cyber Security

6 Key Areas24

December 2008

ISGAN Schedule

         

Week of 26 March 2012 Mexico City, Mexico

March 26‐27 –Joint IEA/ISGAN Workshop: 

“Smart Grids in                           Distribution Networks:  

How2Guide drafting workshop” March 28‐30 – ISGAN 3rd

Executive Committee meeting

25‐26 April 2012  London, UK

Third Clean Energy Ministerial

21 May 2012 Bregenz, Austria

ISGAN Workshop on PV integration in 

distribution systems (with IEA PVPS; part of Austria Smart Grids 

Week 2012)

18‐19 June 2012Milan, Italy

ISGAN Annex 6 workshop on interactions between 

T&D systems

Week of 24 Sept 2012Nice, France

ISGAN ExCo meeting, workshop(s), and technical 

visits

3 December 2012Berlin, Germany

ISGAN Workshop on SIRFN (as part of 5th Int’l Conference on Integration of 

Renewables and Distributed Energy 

Resources)

25

December 2008

ISGAN Management & Resources

ISGAN is managed by its Executive Committee

– Consists of representatives of all Participants

– Meets semi‐annually; Next meeting: France, September 2012

ISGAN is supported by a Secretariat at the Korea Smart Grid Institute

– Email address: isgan@smartgrid.or.kr

ISGAN website: iea‐isgan.org

CEM website: cleanenergyministerial.org26

December 2008

Smart Grid Information Resources

Smart Grid Information Clearinghouse

Smartgrid.gov

o Smart grid project summaries (with focus on non‐ARRA projects), use cases, and business cases for the U.S. and internationally

o >200 & >50 smart grid projects in the U.S. and overseas; >1,000 smart grid‐related documents and multimedia (use cases, c/b analyses, business cases, legislation & regulation, standards, and technologies)

o ARRA smart grid project summaries and other Federal program activities

o Reporting of ARRA SGIG & SGDP projects (progress, metrics and benefits, consumer behavior studies) and provision of analysis results to the public

27

December 2008

Contact Information

Dan T. TonProgram Manager, Smart Grid R&DOffice of Electricity Delivery and Energy ReliabilityU.S. Department of Energy (202) 586‐4618Dan.ton@hq.doe.gov

For more information:

OE: www.oe.energy.gov

Smart Grid: smartgrid.gov

28