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8/14/2019 Secretary Chu Grid Week
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Investing in our Energy Future
Secretary Steven Chu
U.S. Department of Energy
Washington, D.C.
September 21, 2009
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Recovery Act is making a down paymenton a clean energy economy
The nation that leads the world in creating a new
clean energy economy will be the nation thatleads the 21st century global economy.
-- President Obama
Creating jobs immediatelyInvesting in our energyinfrastructure to provide
lasting value
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We'll fund a better, smarter electricitygrid and train workers to build it -- a gridthat will help us ship wind and solarpower from one end of this country to
another.Think about it. The grid that powers thetools of modern life -- computers,appliances, even BlackBerrys -- lookslargely the same as it did half a centuryago.
President Barack Obama
To meet the energy challenge and create a 21stcenturyenergy economy, we need a 21stcentury electric grid
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Worldwide shipments of Solar Photovoltaics in Megawatts
U.S.
U.S. falling behind in clean energy race
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Recovery Act will double
non-hydroelectricrenewable generation
Source: EIA -- An Updated Annual Energy Outlook 2009 Reference Case
Billio
nsofkilow
atthours
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Recovery Act will set the stage for
widespread deployment of plug-inhybrid electric vehicles
Recently made $2.4 billioninvestment in advanced
batteries the largest batteryinvestment in world history
Today, 99 percent of
batteries for hybrids aremade in Japan
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Grid Modernization-$4.5 billion includingSmart Grid
Investment Grantsand Demonstrations
WAPA and BPA totalof $6.5 billion in
borrowing authority
The Recovery Act invests ingrid modernization
$750 million fortransmission loanguarantees
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Today, we are announcing:
$44.2 million in awards to State Public
Utility CommissionsTo hire and retrain PUC staff as utilities
ramp up Smart Grid activities
The availability of $100 millionTo train a new generation of
utility workers
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Dynamic optimization of grid operationsand resources
Incorporation of demand response and
consumer participation
The Smart Grid: What is it?
Measurement Visualization Automation
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System TransparencySeeing and operating the grid as a
national system in real-time
Energy StorageProviding regulation and load shaping
Cyber Security and Physical SecuritySecuring the physicalinfrastructure and two-way communication and data exchange
Smart Grid is a key enablerto
Grid Modernization
Load ManagementMaking consumer demandan active tool in reducing the peak
Renewable IntegrationAddressing variabilityand intermittence of large-scale wind generation
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11
Xcel Energy Alamosa System
Highvariability
due toclouds
Solar energy sources are highly variable
Output from
an 8MWsolar PVpanel in
Colorado on
9/4/08
81 % drop in5 minutes
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Jan. 5-25, 2009
0
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Date/Time (5-min increments)
MW
BPA TOTAL WIND GENERATION
BPA BALANCING AUTHORITY AREA LOAD
Wind requires substantial balancing reserves
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BPA is installing 14 anemometers for next-hour wind forecasts to adjust generationand make more efficient use of combined wind, hydro and other resources.
They are also working on Dynamic Transfer to reliably let a power plant in onebalancing authority supply reserves to another balancing authority.
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Variable Generation Affects Grid Operations
No wind 11% renewables
23% renewables 35% renewables
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System TransparencySeeing and operating the grid as a
national system in real-time
Energy StorageProviding regulation and loadshaping
Cyber Security and Physical SecuritySecuring the physicalinfrastructure and two-way communication and data exchange
Smart Grid is a key enablertoGrid Modernization
Load ManagementMaking consumer demandan active tool in reducing the peak
Renewable IntegrationAddressing variability andintermittence of large-scale wind generation
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Energy Storage is critical to grid operations
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Energy Storage is Critical to Grid Operations
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Pumped Storage
Pumped Storage can provide:
Rapid response in pump-up andgenerating modes to offset windgeneration variability Store wind energy during lowervalue periods
Prevent wind curtailment andavoid new transmission investments
Additional capital and operating costs have tobe compared to the cost of spinning reserves
Energy losses (~20%) related to storage
Grand Coulee Dam
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System TransparencySeeing and operating the
grid as a national system in real-time
Energy StorageProviding regulation and load shaping
Cyber Security and Physical SecuritySecuringthe physical infrastructure and two-waycommunication and data exchange
Smart Grid is a key enablerto
Grid Modernization
Load Management Making consumer demandan active tool in reducing the peak
Renewable IntegrationAddressing variability andintermittence of large-scale wind generation
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(8,760 hrs)
distribution
generation
0%
20%
40%
60%
80%
100%
0% 20% 40% 60% 80% 100%
Percenta e of Year
Load
Factor(%)
5% = ~440 hrs/yr
75%
90%
Hourly Loads as Fraction of Peak, Sorted from Highest to Lowest
Peak Reduction is Paramount
>25% of distribution and >10% of generation assets are needed
less than 5% of the time ($100s of billions of investments)
Generation
Distribution
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0
50
100
150
200
PeakReduction(GW)
0%
5%
10%
15%
20%
25%
%
ofPeakDema
nd
Other DR
Interruptible Tariffs
DLC
Pricing w/o Tech
Pricing w/Tech
38 GW,4% of peak
82 GW,
9% of peak
138 GW,14% of peak
188 GW,
20% of peak
Achieving peak demand reduction
requires a Smart Grid and dynamic pricingLight blue:reductions
through
dynamicpricing
Dark blue:reductions
throughSmart Gridtechnology
Source: FERC, June 2009 National Assessment of Demand Response Potential
Business asusual
Expandedcurrent best
practices
Universaladvancedmetering
anddynamic
pricing
All DemandResponse tools(e.g. direct load
control) fully
deployed
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Changing Consumer Behavior
Empower consumersthrough better
information
Give consumers thetools and incentives to
managetheir energyuse and eliminate
waste
Demand response programmability mustbe as easy and automatic as possible.
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Automated Demand Response Saves
Capacity and EnergyElectric load profile for PG&E participants on 8/30/2007
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Is the grid ready
forPlug-In Hybrids?
Plug-in Hybrid Vehicles:
2009 Fisker Karma S2010 Toyota Plug-in Prius2010(?) BMW Mini E2010 Saturn VUE2011 BYD F3DM
2012 Ford2012 Volvo
Battery Electric Vehicles:
2010 Chevy Volt EREV2010 Chrysler EV2010 Miles EV
2010 Mitsubishi iMiEV BEV2010 Nissan BEV2010 Ford Battery Electric Van2010 Tesla Roadster Sport EV
Source: Electric Drive Transportation Association (Updated June 1, 2009)
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Typical Charging Scenarios
Filling the Valley
= ???
Source: Lemoine, Kammen, and Farrell 2008. An Innovation and Policy Agenda for Commercially Competitive Plug-In Hybrid Electric Vehicles
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System TransparencySeeing and operatingthe grid as a national system in real-time
Energy StorageProviding regulation and load shaping
Cyber Security and Physical SecuritySecuring thephysical infrastructure and two-way communication and
data exchange
Smart Grid is a key enablerto
Grid Modernization
Load ManagementMaking consumer demandan active tool in reducing the peak
Renewable IntegrationAddressing variability and intermittenof large-scale wind generation
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Source: www.nerc.comAngles are based on data from blackout analysis.Angle reference is Browns Ferry.
Phasors wouldhave given gridoperators 30-40minutes warning
that problemswere developingin Northern Ohio
Phasors could have prevented
the 2003 blackout
Estimates of 2003 blackouts cost: $6 10 billion
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Goal: sensor-based operations and
dynamic modelingFrequency and
response to system eventsGrid stress -
Angle separation
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System TransparencySeeing and operating the grid as a
national system in real-time
Energy StorageProviding regulation and load shaping
Cyber Security and Physical SecuritySecuring the physical infrastructure and two-waycommunication and data exchange
Smart Grid is a key enablerto
Grid Modernization
Load ManagementMaking consumer demandan active tool in reducing the peak
Renewable IntegrationAddressing variability and intermittenof large-scale wind generation
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Advanced Tools/Technology
Encryption
Authentication Diagnostics
Monitoring
Forensic Analysis
Control systems for critical applications must
be designed, operated and maintained tosurvive and intentional assault with no loss of
critical function
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Challenges
Data Sharing/Data Ownership Standards
Transmission Planning
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Were making progress on Smart Grid
Interoperability standards
$10 million inRecovery Act fundingtransferred to NIST
Weve hosted two SmartGrid Interoperability
Standards workshops
Secretary Locke will have more to say on Thursday
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Blue - high wind potential,Red - large demand centers, andGreen - little wind and smaller demand centers.
NERC, April 2009
Seven Percent of the U.S. Population
Inhabits the Top Ten States for Wind
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Reduce congestion another
priority
Aug 2006 DOE
Congestion Study
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Does the U.S. require an Extra High
Voltage Grid?
Predominantly AC Path
Predominantly DC Path
Station
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Questions?Questions?Questions?Questions?