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The Smart Grid …

Lunch and Learn

GE Energy

Session 3: The Smart Grid –

The Distribution View

Session 3 of a 5 Part Series on the Smart Grid

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Smart Grid Learning Series

Session 1: The Smart Grid and its Benefits

Session 2: The Smart Grid…

The Consumer View

Session 3: The Smart Grid…

The Distribution View

Session 4: The Smart Grid…

The Transmission View

Session 5: The Smart Grid…

The View from Rural America

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Session 3: The Smart Grid and The Distribution View

Topics:Smart Grid Overview

•

Industry challenges•

Transformation of the grid•

Benefits OverviewMore Focus on the Distribution System –

a “Smarter”

GridImpact of Green Generation on DistributionImprovement Options for Smart Distribution

•

Reliability•

Efficiency •

Advanced Distribution Management SystemsImpact of Policy Discussion

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Soaring energy demand•

World energy consumption will triple by 2050

Power outages financial impact•

Cost of power disturbances in US ~ $100B a year

Green energy takes center stage•

Generation of electricity in US accounts for ~ 40% of CO2

emission

Electricity prices on the rise•

U.S. sees 6.5% spike in ’09 electric bills

Aging infrastructure / workforce•

The average US transformer age is just under 40 years old

•

50% of US utility workers are within 7 years of retirement

Industry Challenges

Transformation of the Grid

Transformation of the Grid

Wide-AreaProtection &Automation

Wide-AreaMonitoring

& Control

DeliveryOptimization

AssetOptimization

DemandOptimization

RenewablesForecasting

RenewablesSmoothing

Flexibility for Emerging Capabilities

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The integration of electrical and information infrastructures, and the incorporation of automation and information technologies with our existing electrical network.

Comprehensive solutions that:Improve the utility’s power reliability, operational performance and overall productivityDeliver increases in energy efficiencies and decreases in carbon emissionsEmpower consumers to manage their energy usage and save money without compromising their lifestyleOptimize renewable energy integration and enabling broader penetration

That deliver meaningful, measurable and sustainable benefits to the utility, the consumer, the economy and the Environment

More Focus on the Distribution SystemAnd Consumer Interface

Electrical infrastructure

Information infrastructure

A Smarter Grid

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EconomyStimulus

Operational Efficiency

“Green” AgendaCustomer Satisfaction

Energy Efficiency

•

Reduce system and line losses

•

Enable DSM offerings

•

Improve load and VAR management

•

Comply with state energy efficiency policies

•

Reduce outage frequency and duration

•

Improve power quality

•

Enable customer self-service

•

Reduce customer energy costs

•

Reduce GHG emission via DSM and “peak shaving”

•

Integrate renewable generating assets

•

Comply with Carbon/GHG legislation

•

Enable wide adoption of PHEV

•

Integrate distributed generation

•

Optimize network design

•

Enable remote monitoring and diagnostics

•

Improve asset and resource utilization

Smart Grid Benefits

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What it is Why$16MM/yr, 51K tons of CO2 reduction+

Res. consumer savings up to 10%Based on 1.6% peak load reduction using critical peak pricing resulting in reduction in fuel costs and deferral of generation capacity

Utility Value/MM Customers*

*Utility savings are approximate annual savings per one million customers

+ $85/kW-yr peak generation capacity value

$7MM/yr, 45K tons of CO2 reduction+

Based on 0.2% loss reduction and 0.5% CVR peak load reduction resulting in reduction in fuel costs and deferral of generation capacity

$11MM/yr, ~4.5 yr ROIBased on system-wide deployment of advanced transformer M&D resulting in transformer life extension and reduction in inspection, maintenance & repair costs

Prognostics for proactive equipment maintenance

Reduced outages and focused maintainers

Asset optimization

Reduce delivery losses in distribution systems

Less energy waste and higher profit margins

Delivery optimization

Manage peak via control of power consumption

Defer upgrades, optimize generation &

renewablesDemand optimization

Reliabilityoptimization

Wide Area Protection & Control

Increased network performance & reliability

$7MM/yrBased on the deferral of the capacity upgrade of two 220kV transmission lines for 3 yrs (each line 30 miles long with a cost of upgrade of $1.5MM per mile)

Renewablesoptimization

Use of Forecasting & Smoothing

Compensation for production variability

Key step for meeting RPS targets, especially in areas with weak grids

Roadmap for a Smarter Grid

Delivery Optimization

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Source: AEP PUC Hearing

Grid Inefficiencies

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Consider the work to pull a wagon.

Total Pull consists of Forward and Upward Pull

Only the Forward Pull does work to move the wagon

The Forward Pull ~ Watts

The Upward Pull ~ VARs

PowerFactor = Forward/Total = COS(Θ)

Cos(51°) = 0.63

TotalPull

UpwardPull

ForwardPull

Θ=51°

Understand the Fundamentals ….What are VARs?

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Understand the Fundamentals ….What are Volts & Amps?

Again consider pulling a wagon.

Volts are how hard you pull.

Amps are how fast the wagon goes against the rolling resistance

Pulling force ~ Volts

Speed ~ Amps

Pull Harderto go faster

Speed

Resistance

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Understand the Fundamentals ….What is IVVC?

VAR Optimization -

Power Factor Correction

Distribution feeder capacitor bank control to provide the benefit of energy loss

reduction by coordinating capacitor banks control.

Conservation Voltage Reduction (CVR)

Coordinating regulator and LTC control to reduce feeder voltage levels to provide

the benefit of load reduction on the feeders and substation.

Integrated Volt/VAR Control (IVVC)

Coordinated Control of substation transformer tap changers, feeder voltage

regulators and capacitor banks to ensure a VAR and voltage profile to optimize

these benefits.

Why Now?

Until recently, the benefits and costs have not been tied together between the

distribution, generation, consumer, etc.

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Reduced VAR deficiencies

Reduced distribution and system losses

Reduces or delays distribution rebuilds

No need to manually control/inspect banks

Automatic Fuse Detection

-3

0

3

6

9

12

15

18

VAr

Optimization ON

MW

MVAr

IVVC Benefits

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Reduce voltage at peak for economicsReduce voltage across base to reduce demandMonitoring improves visibility of voltage along circuitSignificant positive PV calculated for Utility and ConsumerReduced CO2 emissions

Average Daily Load Profile

DemandMW

Base Load(8760 hrs per year)

Critical Peak (100 hrs per year)

Peak (1000 hrs per year)

Voltage Control Reduces Load at base load

Voltage Control Reduces Load at Peak

Conservation Voltage Reduction Benefits

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IVVC Value Proposition

IVVC

• Reduced base & peak generation cost

• Avoided generation & T&D capital

Peak hour (peak load reduction)

Regular hour

Loss Reduction

ConservationVoltage

Reduction

• Reduced peak generation cost

• Capital avoidance for peak generation & T&D equipment

• Reduced generation cost

• Capital avoidance for base load

SGTechnology

Enabled Capability Benefits

O&M Savings

• Cap bank blown fuse detection

• Reduced capacitor bank, LTC and voltage regulator inspections

Reduced CO2Emissions

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D20 ME

D20 EME

D20 ME

D20 EME

i BOX

SEL 351

i BOX

SEL 351

D25g

NO

FeederSwitch

FeederTie Switch

Sub #1

Sub #2

CB13

CB16

FeederSwitch

LAN

Step 2: FDIR routine communicates with feeder switches to determine fault location and prefault load.

Step 3: FDIR routine determines if capacity exists on alternate feeder.

Step 4: If capacity exists then FDIR routine sends a control to isolate fault by opening feeder #1 switch.

If no capacity: “Unable to restore segment due to lack of capacity on Feeder 2”.

Step 5: FDIR routine sends a control to close feeder tie switch. Power restored to customers on non-faulted feeder section

Feeder Trips to Lockout

Customers Interrupted

No Fault Detected

Prefault Load

Power Restored

Capacity Check

Fault Detected

Open Breaker

Close Tie Switch

Fault Detection Isolation & Service Restoration (FDIR)

Feeder#1

Feeder#2

Fault

Step 1: Fault occurs.

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FDIR Value Proposition

FDIR

Reduced fault investigation and patrol time

Improved SAIDI

Automated switching

Faster restoration of certain customers

Fault Detection

Fault Isolation & Restoration

Reduced need for manual switching

Improved SAIDI, SAIFI and customer satisfaction

Faster outage detection

SGTechnology Enabled Capability Benefits

21Source: OG&E Study,

Distributech

Conference 2009

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Case 1 Case 2 Case 3 Case 4 Case 5 Case 6

Incremental Costs in Dollars per Customer Minute Interrupted (over Base Case)

Base Case –

Manual Operated Disconnects (MOD)Case 1 –

Manual Operated

ReclosersCase 2 –

Reclosers

with Remote ControlCase 3 –

Automatic Fault Detect Isolate Restore (FDIR)Case 4 –

Closed Loop Automation Case 5 –

Distribution Management System Case 6 –

Smart Grid with Meters

Delivery Optimization –

Reliability Benefit Summary Fault Detection Isolation Restoration

StationSeg 2Seg 1 Seg 3

S2 TS1F1

StationSeg 2Seg 1 Seg 3

S2 TS1F1

Typical System

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Fault occurs

Customers call in to report outage – process starts now

Recloser predicted out by OMS – limited data

Crew dispatched & arrives –prediction may be adjusted

Crew patrols circuit to identify fault location

Fault located and switching takes place until maximum customers restored

Crew repairs fault, closes recloser manually

Manual switching calculations may be be necessary to shift additional load

Outage completed in OMS by dispatchers – when they can

Some customers respond they are still out – process starts over again

Example Outage Scenario –

Today

N.O.

R

R1

T1

F1T3T2

Customer Trouble calls

R

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MMeters replace customer calls as initial outage notification

OMS predicts probable device – more accurate

As customers call, status available immediately

Advanced DMS used for FDIR using real-time load & voltage data

Load flow analysis is used to determine how best to pick up load from one or more adjacent circuits

Meters are pinged immediately following each switching action toensure all customers in non-faulted section are restored

Crew investigates, repairs, restores

Meters that do not respond are re-processed by OMS prediction

Crew immediately notified to follow-up (nested outage)

N.O.

R

R1

T1

F1T3T2

MeterInformation

R

M M

M M

M

M M

M M

Outage Scenario with AMI/OMS/DMS Integration

Asset Optimization

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Operational efficiencyReducing O&M expense, more efficient deployment of capital & human resources, and increased productivity

Utility Perspective

The average US transformer age is just under 40 years old

50% of US utility workers are within 7 years of retirement

Source: William Bartley P.E. Hartford Steam Boiler Inspection & Insurance

0%

20%

40%

60%

80%

100%

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97

Age in Years

Transformer Failure Rate

Average

Aging Assets & Workforce

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Detecting signs of failure conditions

Reducing probability of catastrophic failure

Reducing unscheduled outages

Addressing specific unit or population issues

Loading T&D equipment for maximum efficiency

Deferring upgrade capital costs

Managing & extending the life of equipment

Reducing O&M costs

Transformer On-Line Monitoring & Diagnostics?

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Current Failure rate of 1% is a conservative average for a fleet.

* 60% is an industry accepted effectiveness number for a quality

monitoring system. Failure reduction figure based on a CIGRE and on a KEMA study.

Risk of unexpected Failure can be reduced by 2.5 fold!(.00028 / .0007 = 2.5)

Current failure rate

DetectedFailures before M&D:

Undetected

Faults detected by M&D Systems

30%.003

1%.01

70%.0007

10%.0007

90%.0063

Without

Monitoring

30%.003

1%.01

70%.0007

10%.00028

90%.0025

With

Monitoring

60% *.00042

40%.0028

CatastrophicProportion of faults:

Non-catastrophic

Faults not detected by M&D Systems

Asset Optimization –

On-Line Monitoring & Diagnostics Station Transformer Risk Model

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M&D

Reduced inspection costCondition based inspection

Condition based maintenance

SGTechnology Enabled Capability Benefits

Early detection of failures

Improved asset life

Improved system throughput

Reduced maintenance cost

Reduced blackout probability

Reduced corrective maintenance cost

Loss revenue during blackout

Less capital spending

Improved power sales

Transformer Asset Optimization Value Proposition

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From reactive, non-integrated…

To interactive decision support

We Will See Advances in Technology –

“Smarter”

Advanced Distribution Infrastructure

IVVC FDIR

TPDPF SOMCA RPC SCAONR LELM

OCP/OVP DTS

Analytics & Visualization

Meters, PQ, Customer Interface

DG, Micro-Grids, PHEVs,

advanced protection

Asset OptimizationDelivery

Optimization

Demand Optimization

GIS, OMS

Field Devices (switches,

reclosers, cap banks, etc)

Real-time Database &

Network Model

Operational Database

(alarms, trending, load profiles, etc)

Meter Data Management

DG Control, PHEV

Management

Open Standards –

CIM, SOAP, XML, ESB

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AMI/SG & RPS RPS onlyAMI/SG only

Electric Decoupling

FERC/NARUC Collaborative

Pending Electric Decoupling

Sources: National Council on Electricity Policy, Pew Center on Global Climate Change, NRDC,

Capgemini

Survey of NARUC and CAMPUT (2009)

Tier 1 Tier 2

Smart Grid Policy Momentum

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Summary

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Economic and environmental demands are forcing functions

•

Investment in technology can accelerate their adoption

•

The Smart Grid is dynamic and must be viewed as a system

•

Distribution systems will be more in the technology spotlight

•

Policy will drive incentive for delivery optimization

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Smart Grid Learning Series …

next week

Session 1: The Smart Grid and its Benefits

Session 2: The Smart Grid…

The Consumer View

Session 3: The Smart Grid…

The Distribution View

Session 4: The Smart Grid…

The Transmission View

Session 5: The Smart Grid…

The View from Rural America