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The 21 The 21 st st Century Grid Century Grid Rick Sergel President & CEO July 16, 2009

The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

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Page 1: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

The 21The 21stst Century Grid Century Grid

Rick SergelPresident & CEOJuly 16, 2009

Page 2: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

Demand Response GrowsDemand Response Grows

Page 3: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

System: A Traditional ViewSystem: A Traditional View

DemandConventional &

Hydro Generation

Distribution Bulk Power System

reliabilityreliability

Page 4: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

System: A Traditional ViewSystem: A Traditional View

DemandConventional &

Hydro Generation

Distribution Bulk Power System

Local Drivers

Policy Security

Economic

Regional Drivers

Policy Security

Economic

reliabilityreliability

Over the past 60 years, we’ve divided the “grid” into two separate systems.

Page 5: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

The System Begins to ChangeThe System Begins to Change

DemandConventional &

Hydro Generation

Distribution Bulk Power System

Demand Response

Nuclear

Energy Efficiency

reliabilityreliability

As new resources were added, bulk system reliability became more dependent on distribution-level assets.

Page 6: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

The 21The 21stst Century Grid Emerges Century Grid Emerges

DemandConventional &

Hydro Generation

Distribution Bulk Power System

Demand Response

NuclearEnergy Efficiency

Plug-In Hybrid Electric Vehicles

Rooftop Solar / Local Wind Development

Wind & Variable Generation

reliabilityreliability

The 21st century grid will become a single, interdependent system.

Page 7: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

The Smart GridThe Smart Grid

DemandConventional &

Hydro Generation

Demand Response

NuclearEnergy Efficiency

Plug-In Hybrid Electric Vehicles

Rooftop Solar / Local Wind Development

Wind & Variable Generation

reliability

“smart grid”

The “Smart Grid” will enable the visualization and control needed to maintain operational reliability.

Page 8: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

Common ChallengesCommon Challenges

DemandConventional &

Hydro Generation

Demand Response

NuclearEnergy Efficiency

Plug-In Hybrid Electric Vehicles

Rooftop Solar / Local Wind Development

Wind & Variable Generation

“smart grid”

cyber security

reliability

Page 9: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

Common DriversCommon Drivers

DemandConventional &

Hydro Generation

Demand Response

NuclearEnergy Efficiency

Plug-In Hybrid Electric Vehicles

Rooftop Solar / Local Wind Development

Wind & Variable Generation

“smart grid”

Drivers

Policy Security

Economic

cyber security

reliability

Building the 21st century grid requires a comprehensive and coordinated approach to policy and resource development.

Page 10: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

The 21The 21stst Century Grid Century Grid

DemandConventional &

Hydro Generation

Demand Response

NuclearEnergy Efficiency

Plug-In Hybrid Electric Vehicles

Rooftop Solar / Local Wind Development

Wind & Variable Generation

“smart grid”

reliability

Page 11: The 21 st Century Grid Rick Sergel President & CEO July 16, 2009

Question & Answer