Forum Telecontrollo Reti Acqua Gas ed ElettricheRoma 14-15 ottobre 2009

Smart Grid - a new paradigm for distribution business?

Jean-Luc RoyBusiness Development Director Europe

Agenda

• Why a smart grid revolution now? • What are the main challenges?• What are the majors impacts on

distribution business? • What are the required changes ?

Why a smart grid revolution now?What are the challenges?

WHY THE SMART GRID REVOLUTION?

Running today's digital society through yesterday's grid is like running the Internet

through an old telephone switchboard’’‘‘Reid Detchon

Electric utilities are facing four main challenges

Increasing demand for energy and electricity

1

2 Moving towards an environmentally-friendlier energy mix (lower carbon emissions, more renewable energy…)

3Volatile energy prices and critical energy losses

4Emerging large regional transmission networks

All these changes are raising the network complexity

Today’s one-way centralized electricity network…

380kV

110kV 25kV220/110kV

20kV20kV

400/230V

380/220kV

12kV 380kV

Power flow

-

Heavy Industry

Residential Areas

Family HomesFarmhouses

Transmission Network

Rail Traffic

Department Stores, Offices, Light

Industry

Power plant

Farmhouses

Transmission Network

Rail Traffic

… needs to evolve

Wind Farms

Central power plant

Fuel Cells

Industrial Plants CHP

Residential Areas

Department Stores, offices Micro-turbines

StorageVirtual Power Plant

Decentralized generation Central generation Consumption

Power Flows

Towards a dynamic and bi-directional flow of energy and data

What are the majors impacts on distribution business?

Smart grid changes will impact distribution business in all its dimensions

• At the strategic level: a clear roadmap is required in order to allocate resources efficiently and to focus management efforts

• At the operational level: taking advantage of the technological innovations will require drastic changes of business processes and organization

• At the IS/IT level: shifting from information scarcity to abundance requires new approaches and policies in IT/IS in order to capture short-term opportunities while not impeding longer-term objectives

• All across the company: A change program is needed to ensure consistency of all action plans and gain people buy-in and acceptance at all levels of the hierarchy

HAN Devices(Active Engagement

Of End Users)

AMI End Point

(Smart Meters)

Distributed Generation

AM

I Com

munications

IntegratedDistribution

Grid Management

Smart Distribution – Combining Value ChainsBusiness and Physical – Metering and Operation

DemandResponse

apps

AutomatedMetering

Management MeterData

Warehouse

DistributedGeneration

apps

MarketManagement

Settlement

DistributedResourcePortfolioManagt

Critical DMS Capabilities (today)• Modeling

– Size– Version control– Incremental changes– Intuitive Graphical modeling– Interactions with other repositories (GIS, AM, CIS, EMS, …)– Management of Incomplete and Inaccurate Models– Fast and flexible On-lining

• Large scale Operation and Telemetry (Millions points)– 1000’s, 10K, 100K RTUs ?– Millions MV Loads– Model LV Customers– Fast growing models

• Network Analysis robustness– Is Critical to Feeder/Substation Reconfiguration (planned or unplanned Outages)– Is Critical where feeders are strongly loaded (high growth rates)

• Work Management effectiveness– Model accurately work and safety processes– Synchronize with Modeling activities

• Deployment Management– Underestimation of Data/Model Management issues– Business Process adaptation– Resistance to Change

New Issues and Requirements for DMS (1)• Distributed Generation

– Bidirectional flows– Unpredictability– Instability– Modeling in MV and in LV (residential)– Various aggregations levels– Portfolio Management, optimisation– Behaviour during Outages– Operation of Microgrids requires multi-islands Loadflow + Freq calculations

at MV level• Demand Response

– Variability of Load Models– Modeling in MV and in LV (residential)– Various aggregation levels– Manage Event/Signals - Interfaces (MDM, Settlement, CSP, …)– Cold Load pickup after Outage– Portfolio Management, optimisation

New Requirements for DMS (2)• Interoperation with AMI

– OMS and Work Management– DG– Signals/Events from DR– Interface with Metering– Customer modeling– load data at LV level– Load model– Voltages monitor, LV phases balance

• HAN devices / Energy Box– Load Forecast– Load Model

• Volt/Var Control:– Control and Optimisation (Intelligent Electronic Devices + MVDC)

• Storage• Plug-in Hybrid Electric Vehicle:

– Load model: might become very complex, driven by factors external to electricity sector (batteries service chain, automakers, local communities)

Summary: exciting time for DMS applications• Load Forecast: Integrate with multiple engines (Wind, Solar, DR, ..)• DG application (MV and LV units/portfolios)• DR application (MV and LV loads/portfolios)• EMS-like applications down to MV levels

– Generation forecast, scheduling, monitoring and balancing (and dispatch ?)– Look ahead load-flow and security analysis– Training Simulator (e.g.: micro-grid operation/restoration)

• Load flow calculations– Simple one way algorithms will be phased out– Extend to LV => another order of magnitude for model size increase– multi-islands Load-flow + Freq calculations at MV level– Very complex, non static Load Models (DR)

• Micro grid operation tools• Reconfiguration (DG and Micro grid options)• Closer coordination with Customer model (complex load groups, portfolios for

DR, connectivity model)• Extended Interfaces:

– AMI Interface (OMS, load model, DG, DR)– MDM Interface (DR)– Business/Enterprise Interface (e.g.: DR Events to Settlement)

• MVDC management (optimization, reconfiguration strategies, …)

AMI Integrated OMS Incident Summary

AMI-Integrated Predicted Feeder Level Outage – Southern Company

AMI Integrated Smart Meter Responses to Feeder-wide Ping

Forum Telecontrollo Reti Acqua Gas ed ElettricheRoma 14-15 ottobre 2009