Building Support For The Next Wave Of Smart Grid Projects 05 05 2011
- 1. ENERGY Building Support for the Next Wave of Smart Grid Projects INFOCAST Webinar May 5, 2011 Navigant Reference: 830282 ©2011 Navigant Consulting, Inc. D I S P U T E S & I N V E S T I G AT I O N S • E C O N O M I C S • F I N A N C I A L A D V I S O RY • M A N A G E M E N T C O N S U LT I N G
- 2. Building Support for the Next Wave of Smart Grid » Introduction Our speakers today will discuss strategic issues associated with smart grid deployment and suggested approaches for future projects. • David Walls, Managing Director • Forrest Small, Director • Ralph Zarumba, Director • Erik Gilbert, Associate Director Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 1 ENERGY
- 3. Building Support for the Next Wave of Smart Grid Agenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit Tools Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 2 ENERGY
- 4. Building Support for the Next Wave of Smart Grid Agenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit Tools Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 3 ENERGY
- 5. The First Wave » Time Frame & Characteristics We are entering the “Second Wave” of smart grid deployments where deeper understanding of the business case will become critical. Future Waves “Addressing Strategic Needs” Second Wave “Understanding the Business Case” • Targeted deployment First Wave “Laying the Foundation • Scaling up deployment • Gradual build-out and Learning” • More rigorous business • Continuous cases improvement • Cost recovery • Demonstrating value Cumulative Rate of Investment • Pilot programs and demos • Government incentives and subsidies • Regulatory mandates 2005 2015 2020 Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 4 ENERGY
- 6. The First Wave » Areas of Smart Grid Deployment The first wave of smart grid, estimated to continue through 2015, has begun to bring intelligence to the grid across all segments. Areas of Smart Grid Technology Deployment in the First Wave Advance Distributed Customer Distribution Transmission Metering Energy Systems Automation Management Infrastructure Resources Customer Customer Customer Customer Customer Systems Systems Systems Systems Systems • Displays • Smart meters • Switches • SynchroPhasor • Distributed • Portals • Data generation • Equipment measurement • Energy management monitoring • Wide area • Energy storage management • Back office • Voltage and monitoring and • PEVs visualization • Appliances integration VAR control Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 5 ENERGY
- 7. The First Wave » DOE ARRA Smart Grid Programs DOE’s ARRA Smart Grid Investment Grant and Demonstration programs have been a critical catalyst for the first wave of projects. American Recovery and Reinvestment Act Smart Grid Programs Smart Grid Investment Grant Program Smart Grid Demonstration Program • $3.4 billion in federal funding • Regional Smart Grid Demonstrations • $8.2 billion of total project value • 16 projects selected • 99 projects selected • $435 million in federal funding • Project categories: • $877 million of total project value • Customer Systems • Energy Storage Demonstrations • Advanced Metering • 16 projects selected Infrastructure • $185 million in federal funding • Distribution Systems • $770 million of total project value • Transmission Systems • Equipment Manufacturing • Integrated and Crosscutting There are also ten Renewable and Distributed Systems Integration (RDSI) and High Temperature Superconductor projects. Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 6 ENERGY
- 8. The First Wave » AMI Projects Dominate Smart Grid Investments Approximately 75% of the smart meter deployments through 2013 will occur in California, Texas, and through DOE programs. • Automated meter reading and operational functionality forecasted to reduce labor costs • Demand response programs intended to reduce electricity costs and defer Capex upgrades AMI Smart Meters1 (M) AMI Business Case2 (M) $700 Societal Energy $600 8 Capacity $500 16 Capex Deferral 3.2 $400 $300 $200 Operations 12 $100 DOE Programs California $- Texas (non SGIG) Others Cost Benefit 1.Navigant estimate of electric smart meters installed and funded 2 Illustrative example of typical AMI Business Case for an Investor through 2015 Owned Utility operating in an organized market Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 7 ENERGY
- 9. The First Wave » Utilities Continue to Realize DA Benefits The first wave of Distribution Automation (DA) initiatives have been performed as incremental investments and pilot projects. • Distribution reliability improvements have been demonstrated on worst performing circuits • Line loss reductions have been demonstrated in voltage optimization pilots, but results are still estimated or calculated • DA functionality advancements and communication technology cost reductions have improved the business case Circuits with Auto Switches Outage Minutes on Circuits 60 200 150 40 100 Illustrative 20 50 0 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 8 ENERGY
- 10. The First Wave » Pilot Projects Early AMI pilot projects across the US have largely focused on dynamic pricing and direct load control. • Typical deployments of less than 10,000 meters • Dynamic pricing pilots have captured 5-20% of the customers • Direct load control and demand response has focused on commercial and industrial • Simple business cases – Focus on operational savings – Demonstration of load reduction potential – Structure of the utility matters • Results should be used carefully, as they have not been based on rigorous sampling or approaches Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 9 ENERGY
- 11. The First Wave » Key Outcomes The results of early projects will be mixed as the business cases and customer involvement are uncertain. • Market adoption of pricing programs is low • Customer benefits are difficult to capture • Business case is difficult to make without a mandate or subsidy The next wave of projects will focus more on utility side benefits and business cases, and will clarify the relationship between the utility, the customer and the smart grid. Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 10 ENERGY
- 12. Building Support for the Next Wave of Smart Grid Agenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit Tools Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 11 ENERGY
- 13. The Next Waves » Comparison Factors for Smart Grid Waves Several factors will be different between the first wave of smart grid and the next. Comparison Factor First Wave Next Wave Smart grid systems AMI and metering Distribution systems Benefits One-dimensional, static Complex, evergreen Lower – Functionality Higher – control sensing/monitoring Distributed energy Passive awareness Active integration resources Rudimentary, NPV, black Business case tools Complex, EV, transparent box Performance Relevant performance Limited and crude measurement metrics Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 12 ENERGY
- 14. The Next Waves » Focus on Distribution Systems Smart distribution systems can make a greater contribution to moving us toward the modern grid than AMI and smart metering. AMI and Smart Distribution Support MGI Smart Grid Functionality1 Modernizing the grid will lead us Metering Systems Characteristics Real-time load measurement and toward seven key outcomes management • Self-heals Customer electricity use optimization • Motivates and Includes the Automated voltage and VAR consumer control • Resists attack Adaptive protection • Provides power quality for 21st Automated feeder and line century needs switching Automated islanding and • Accommodates all generation and reconnection storage options Real-time load transfer • Enables markets Diagnosis & Notification of • Optimizes assets and operates Equipment Condition efficiently Enhanced fault protection Source: A Systems View of the Modern Grid, Modern Grid Initiative (MGI), National Energy Dynamic capability rating Technology Laboratory, January 2007. 1 Functionality as specified in the DOE’s Smart Grid Benefits Yes No Framework Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 13 ENERGY
- 15. The Next Waves » Capture Complex Smart Grid Benefits Smart grid benefits will come from areas that have been difficult to demonstrate and monetize in the past. Smart Grid Benefits Type Description Examples Benefits related to utility or consumer costs that • Reduced T&D operations costs Easier to Financial can be expressed directly in financial terms. • Lower electricity bills for customers monetize Benefits related to power interruptions or power • Shorter power outages Reliability quality, but that may not be easily expressed in • Less severe voltage sags financial terms. • Reduced CO2 emissions Environmental Benefits related to air polluting emissions. • Reduced SOx and NOx Benefits related to maintaining a secure energy • Reduced oil consumption Harder to Security supply and infrastructure. • Fewer, or smaller blackouts monetize Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 14 ENERGY
- 16. The Next Waves » Increase Smart Grid Functionality Build on the sensing and reporting technology of the first wave, and increase functionality for control and automation. • Leverage the sensors and Automation communications networks Remote installed during the first Control wave Sensing and Reporting • Use the technologies to develop “apps” that enable operational efficiency, • Increase speed to impact resilience, and optimization • Standardize processes • Reduce cost Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 15 ENERGY
- 17. The Next Waves » Platform for Consumers and New Energy Products Facilitate close communications with consumers and their appliances, and become a platform for new energy products and services. Support Direct Consumer Engagement • Information on demand • Customer control and engagement • Collaborative and personalized interaction channels Integrate Consumer Energy Technologies • Smart appliances and equipment • Energy management systems • Distributed energy resources Enable New Energy Products and Services • Energy service bundles • Customized electric service levels • Retail energy exchanges Source: “A Day in the Life of the Future Customer”, Customer Care Research Consortium, Navigant analysis. Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 16 ENERGY
- 18. The Next Waves » Integrate Distributed Energy Resources Simplify integration of distributed energy resources, and use them to create smart grid resources. AMI facilitates communications between utility information systems and PV inverters Information Flow Inverter Power Electrical Utility Smart Service AMI Information Control Meter Panel Systems Operator Interface Power Flow Load Utility Energy Storage Circuits DA Distribution (ES) System DA helps manage Demand DR curtails small amounts ES provides input to circuit voltage and Response of customer load for short inverter to compensate for accommodate changing (DR) periods of time (<2 hrs) PV variability (<8 hrs) power flow PV system Smart grid technologies Functionality Electrical system components Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 17 ENERGY
- 19. The Next Waves » Measure Performance Apply metrics that track the impacts of smart grid on grid operations and performance, and use the results to guide ongoing deployment. Performance metrics can be used to demonstrate smart grid impact Smart Grid Strategy • Operational efficiency • Reliability improvement • Customer satisfaction Lessons Systems • Customer demand profiles Learned Deployment • Capital investment deferral • Asset utilization • Electricity cost savings Performance • Fuel savings Measurement • Generation mix • CO2 reductions Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 18 ENERGY
- 20. Building Support for the Next Wave of Smart Grid Agenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit Tools Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 19 ENERGY
- 21. Regulatory Issues » Innovations Create Regulatory Challenges Every decade, the electric power industry has introduced new innovations that have created new regulatory challenges. 1960s 1970s 1980s 1990s 2000s Large Nuclear Energy Competition The Smart Centralized Power Efficiency in Wholesale Grid Fossil Stations and Retail Stations Markets Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 20 ENERGY
- 22. Regulatory Issues » Regulatory Strategy There are four elements of regulatory strategy to be considered for smart grid programs. Prudency Cost Recovery Regulatory Strategy Pricing & Program Cost Allocation Design Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 21 ENERGY
- 23. Regulatory Issues » Corporate Structure and the Regulatory Strategy The regulatory strategies of distribution companies will differ from those of vertically integrated utilities. Distribution Company Vertically Integrated Utility • A Distribution Utility offering • What are the different approaches to “wires services” faces different quantifying the benefits of smart challenges when implementing the grid for a vertically integrated utility smart grid than a Vertically versus a wires company Integrated Utility. • Should a difference exist for the • Their charter often limits them to quantification of the Cost / Benefit “Wires Issues” Analysis? • What criteria should a Distribution • Is it valid to account for potential Utility use in performing the Cost / benefits associated with customers Benefit Analysis – should it who are procuring from include the generation benefits? competitive suppliers? • What if a customer procuring competitive power does not want to participate in a smart grid information program? Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 22 ENERGY
- 24. Regulatory Issues » Prudency Investment prudency will remain a critical review item for regulators. • Is the proposed program design reasonable and will it withstand Initial Decision scrutiny in a post-implementation review? Making Process • The implementation of smart grid typically triggers early Treatment of retirement of infrastructure – will the utility face disallowance risk? Existing Infrastructure • Is the utility ready to implement the “soft-side” of the smart grid Customer including pricing design and customer education? Implementation Issues Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 23 ENERGY
- 25. Regulatory Issues » Cost Allocation Allocating costs must properly reflect the accrual of benefits to different classes of customers, and the system as a whole. • The value of benefits is perceived to generally follow the customer Who Benefits from groups who participate directly in smart grid programs the Smart Grid? • Although System Benefits provides significant value to all, System-Wide customers arguments are made to re-allocate or disallow the costs Benefits • Most approaches to cost allocation are based upon traditional approaches (e.g., Allocated Cost of Service) and ignore how Existing Cost Allocation consumers benefit from the smart grid Approaches Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 24 ENERGY
- 26. Regulatory Issues » Cost Recovery Cost recovery strategy is integral to the utility’s overall smart grid strategy. • A large smart grid implementation may trigger a rate case Will a Rate Case opening up every issue in the utility revenue requirement Triggered? • Many utilities have chosen to isolate smart grid cost recovery Isolated Smart Grid Cost Recovery • The timing of the cost recovery – current or deferred Timing Issues Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 25 ENERGY
- 27. Regulatory Issues » Pricing Design Pricing design must carefully balance the enhanced functionality of the smart grid, with the core interests of customers. • How were the existing tariffs designed and are they appropriate Existing for the smart grid? Tariffs • How will you establish Dynamic Pricing and wide-spread TOU? Dynamic Pricing / • Is it feasible for your customer base? TOU • Any new pricing design or product offering needs to be Adverse Customer implemented in a manner that targets receptive customers Reactions Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 26 ENERGY
- 28. Regulatory Issues » Strategy Success Factors Winning regulatory strategies for smart grid will rely on traditional success factors. Don’t Over-Promise •The death knell of many good ideas occurs when reality and expectations collide Provide Customers What They Want – Not What You Think They Should Have •Most customers don’t want to think about electricity – they just want it there when they need it! Maintain Price Stability •People like utilities that are boring -- significant price increases are tantamount to painting a target on your back Listen to Markets and Behave Appropriately •Wholesale energy and ancillary service prices are volatile •Smart grid strategy should account for energy price •Market designs change Design programs so that no customer groups feel like they are being treated unfairly •Cost allocation really does matter Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 27 ENERGY
- 29. Building Support for the Next Wave of Smart Grid Agenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit Tools Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 28 ENERGY
- 30. Smart Grid Cost-Benefit Tools » Overview Business cases for the next wave of projects will be more rigorous, and require more capable tools. • Flexible Tools Will Be Required ⁻ Regulatory structures, mandates and requirements vary widely ⁻ Every utility has different characteristics, approaches, potential avoided costs, etc. ⁻ Every project has unique aspects ⁻ Some costs and benefits are difficult to quantify in dollars (e.g., reliability, GHG emissions) • Key Issues Must Be Addressed ⁻ Defining the “smart grid” ⁻ Establishing a deployment timeline and technology/function evolution path ⁻ Establishing a baseline approach ⁻ Developing an approach to stakeholder benefits and costs accrual ⁻ Applying appropriate time value to benefits and costs • Proper Methodology and Tools Can Clarify and Simplify the Business Case ⁻ Help organize thinking about difficult-to-quantify benefits ⁻ Help plan and prepare for measurement & verification (M&V) Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 29 ENERGY
- 31. Smart Grid Cost-Benefit Tools » Framework and Tools Examples The three tools discussed here are based on a framework developed by DOE, EPRI and Navigant. 1. Smart Grid Computational Tool (SGCT) – Focuses on utility project investment analyses – Can model a wide range of smart grid project types 2. Residential Technology Benefit/Cost Test Tool – Focuses on residential technology (e.g., HAN) behind the meter – Specialized for ROI analysis – Provides standardized cost tests (e.g., TRC test, Utility Test, etc.) 3. Regional Cost-Benefit Assessment Model – Extends the DOE/EPRI Smart Grid Methodology – Examines Regional Investment Scenarios Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 30 ENERGY
- 32. Smart Grid Cost-Benefit Tools » Framework DOE’s Smart Grid Benefits Framework is based on the idea that smart grid assets and functionality lead to benefits. What are smart grid What does the How does it What “goodness” What is the technologies? smart grid do? do that? results? goodness worth? Monetary Assets Functions Mechanisms Benefits Value Benefits are assessed in the following categories: •Economic •Reliability •Environmental, and •Security Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 31 ENERGY
- 33. Smart Grid Cost-Benefit Tools » 1 – SGCT Inputs and Outputs The SGCT is an Excel based tool that uses a variety of data inputs and assumptions, and provides standard outputs. Inputs Examples Outputs Smart grid project AMI/Smart Meters, Assets, Functions, Automated Feeder and Line Switching Monetary Value and Mechanisms of up to 22 Data that Annual Generation Benefits corresponds to Costs, Number of Impact Metrics Tamper Detections All Output Data derived from Value of Service, is calculated NPV Analysis estimates and Price of Capacity at over of Project assumptions Peak, Value of CO2 SGCT multiple Discount Rate, years Cost Parameters Inflation Rate, and Escalation Population Factors Growth Sensitivity Analysis of High and Low case Project Sensitivity Factors Value of CO2 Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 32 ENERGY
- 34. Smart Grid Cost-Benefit Tools » 2 – Residential Technology Benefit/Cost Test Tool Calculates the benefits, costs and the five standard benefit/cost ratios for demand-side smart-grid technologies. Input, output & model structure are easily accessed via graphical user interface Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 33 ENERGY
- 35. Smart Grid Cost-Benefit Tools » 2 – Residential Technology Benefit/Cost Test Tool Outputs include total benefits and costs by category as well as five standard benefit/cost test ratios. Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 34 ENERGY
- 36. Smart Grid Cost-Benefit Tools » 3 – Regional Cost-Benefit Assessment Model Six refined benefits categories—from generation to consumption—each comprises a group of functions. Automated Wide Area Voltage & 6 Benefit Categories VAR Control Dynamic Monitoring 30 Functions Capacity & Visual- Rating ization Improved Power Flow Conductor Control Line Efficiency Infra- Phase structure Balancing T&D Life Optimization Extension Utility Grid Operational Reliability Efficiency Smart Grid Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 35 ENERGY
- 37. X Advanced Meter Infrastructure (AMI) - Smart Meters X Meter Data Management System (MDMS) Meter Data Management System (MDMS) X X Dispatchable/Automated Capacitor Banks Dispatchable/Automated Capacitor Banks X X X Distribution Management System Fault Current Limiter X X Advanced Transformers (e.g., Load Tap Controls, MTUs, etc.) Advanced Transformers (e.g., Load Tap Controls, MTUs, etc.) ©2011 Navigant Consulting, Inc. X X X Load Monitoring Device Microgrid Controllers & Technologies Microgrid Controllers & Technologies X Outage Management System Outage Management System X X Phase Angle Regulating Transformer Reclosers / Auto-Sectionalizing Switches Reclosers / Auto-Sectionalizing Switches X Fault Indication Technology Fault Indication Technology X X Vehicle to Grid Infrastructure - 2 Way Flow Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 X X Automated Voltage Regulator Automated Voltage Regulator Controllable/Regulating Inverter Controllable/Regulating Inverter X Equipment Health Sensor (Distribution) X X Advanced Visualization & Analysis Software (Distribution) Advanced Visualization & Analysis Software (Distribution) 36 Grid Reliability Phase Balancing End Use Energy Efficiency Dynamic Capacity Rating Utility Operational Efficiency Enhanced Fault Prevention Dynamic & Responsive Demand Enhanced Ancillary Services BENEFIT CATEGORY / FUNCTION Utility Process Improvement Improved Conductor Line Efficiency Distributed Generation - Renewable Centralized Generation - Renewable Automated Voltage and VAR Control Automated Meter Operating Savings Wide Area Monitoring & Visualization Transmission and Distribution Optimization Distributed Generation - Non-Renewable Renewable & Distributed Systems Integration Improved Utility Planning and Forecasting End Use Conservation from Behavior Change Static Conservation Voltage Reduction (CVR) Power Flow Control & Real Time Load Transfer Enhanced EE Program Measurement & Evaluation Enhanced DR Program Measurement & Evaluation Enhanced EE Program Marketing & Implementation BENEFIT Dispatchable Conservation Voltage Reduction (CVR) Enhanced DR Program Marketing & Implementation Enhanced Fault Location, Isolation & Service Restoration Automated Islanding and Reconnection (Micro-Grid Capability) Demand Response from Customer Controlled Reduction Events End Use Conservation from Automated Consumption Optimization Improved Equipment Efficiency from Condition Diagnosis & Maintenance Load Shifting from Storage, Distributed Energy Resources, Electric Vehicles, Etc. FUNCTIONS Demand Response from Utility Controlled Reduction Events (Direct Load Control) Reduced Outages from Equipment Condition Diagnosis & Preventive Maintenance Infrastructure Life Extension from Equipment Condition Diagnosis & Preventive Maintenance CATEGORIES/ ASSET X X X X X X X X X X X Customer Consumption Display/Portal X X X X End Use Remotely Controlled Interrupter/Switch X X X X X X X X X X X Energy Management System (EMS) - Residential X X X X X X X X X X X Energy Management System (EMS) - Commercial & Industrial X X X X X X X X X X Home Area Network X X X X X X X X X X Customer Electric Vehicle (EV) / Plug in Hybrid (PHEV) X X X X X Smart Appliances and Equipment X X X X X Smart Thermostat Smart Grid Cost-Benefit Tools » 3 – Regional Cost-Benefit Assessment Model X X X X X X X End Use Equipment Sensors (e.g., Equipment Health, Consumption, etc.) X X X X X X X X X X X Distributed Storage (e.g., Batteries, Flywheels, etc.) X X X X X X X Renewable Distributed Generation (e.g., Small Wind, Solar, Hydro, etc.) DG X X X X X X X Other Distributed Generation (NG, LNG, Fuel Cell, Propane, Diesel) X X X X X X X X X X X X X X X X X X X X X X X Advanced Meter Infrastructure (AMI) - Smart Meters X X X X X X X X X X X X X X X X X X X X X X X Meter Data Management System (MDMS) X X X Dispatchable/Automated Capacitor Banks X X X X X X X X X X X X X X X X X X X X X Distribution Management System X X X Fault Current Limiter X X X X X X X X Advanced Transformers (e.g., Load Tap Controls, MTUs, etc.) X X X X X X X X X X X X X X X X Load Monitoring Device X X Microgrid Controllers & Technologies X X X X X Outage Management System X X X X X Phase Angle Regulating Transformer Distribution X X Reclosers / Auto-Sectionalizing Switches X X X X Fault Indication Technology X X X X X X X X Vehicle to Grid Infrastructure - 2 Way Flow X X X X X X X X X Automated Voltage Regulator X X X X X Controllable/Regulating Inverter X X X X X X X X X Equipment Health Sensor (Distribution) X X X X X X X X X X X X X X X X X X X X X X X X Advanced Visualization & Analysis Software (Distribution) X X X X X X X X Flexible AC Transmission System (FACTS) Devices X X X X X X X X X X X X Transmission Sensors (Phasor Measurement, Synchrophasor, Temperature, Load) ASSETS X X X X X Very Low Impedance (VLI) or High Temp Superconductivity (HTS) cables X X X X X X X X X Equipment Health Sensor (Transmission) Transmission X X X X X X X X X X X X X X X X X X X X X X X X Advanced Visualization & Analysis Software (Transmission) X X X X X X X X X X X Central Storage (e.g., Batteries, Flywheels, etc.) X X X X X X X X X X X X X X Variable Pricing/Variable Rate Structure X X X X X X X X X X X X X X X X X X Transactive Control System ENERGY X X X X X X X X X X X X X X X X X X X X X X X X X X X Other Integrated Utility IT System (IT hardware, software) X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Two-way Communications Infrastructure (High Bandwidth) Other DATA X X X X X X X X X X X X X X X X Electricity Consumption (e.g., Substation, Feeder, Customer, etc.) (kWh per year, kWh per hr) X X X X X X X X X X X X X X X X X X X X Electricity Generation (e.g., Generator, DG, Renew, Ancillary, etc.) (MW, MWh/yr, MWh/hr) X X X X X X X X X X X Operations & Maintenance Requirements (description) X X X X X T&D Equipment Failures (qty) X X X X X X X X X X X X X X Power Quality Indices & Metrics (qty) X X X X X X X X X X X X X X X X Reliability Indices & Metrics (e.g., SAIDI, CAIDI, SAIFI, etc.) (indices, minutes, qty) X X X X X X X X X X X X X X X X X X X X X X X X Transmission & Distribution Line Loads (e.g., Substations, Feeders, etc.) (MW peak, MW load X X X X X X X X X X X X X X Transmission & Distribution Overload Events (e.g., Substations, Feeders, etc.)(qty, location) Impact Data X X X X X X X X X X X X X X X X X X X X Deferred Capacity Expansion (Generation, Transmission and Distribution) (MW) X X X X X X X X Transmission & Distribution Line Losses (%, annual kWh) X X X X X X X X Generation Capacity Factor (0.00 - 1.00) X X Electricity Theft (annual kWh) that must be collected for the benefit/cost assessment is identified. X X X X X X X X X X X X X X X X X X X X X X X X X X X Congestion Metrics (MW) X X X X X X X X X X X X X X X X X X X X X X X X Emissions (e.g., Generation, Vehicle, etc.) (CO 2, CO 2e, SO x, NOx, Particulate) (tons) X X X X X X X X X X X X X X X X X X X X X X X X X X Electricity Prices (Wholesale & Retail) ($/kWh, $/peak kW) X X X X X X X X X X X X X X X X X Value of Avoided Ancillary Services ($/kWh, $/kW) X X X X X X X X X X X X X X X X X X X X X X X X X X Value of Avoided Capacity Expansion ($/MW) Assets are mapped to functions based on project specifics, then data X X X X X X X X X X X X Value of Avoided O&M ($) X X X X X X X Value of Increased Energy Efficiency ($/kWh) X X X X X X X Value of Increased Demand Response ($/kW) X X X X X X X X X X X X X X X X X X X X X X X Value of Reduced Congestion ($/MW) Impact Valuation Data X X X X X X X Value of Avoided Outages & Reduced Outage Duration ($/momentary outage, $/hour) X X X X X X X X X X X X X X X X X X X X X X X X Value of Reduced Emissions ($/ton) X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Equipment Units (qty) X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X DATA Unit Equipment Costs ($/unit) X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Installation & Integration Costs ($/unit) X X X X X X X X X X X X X X X X X X X X X X X X X X X X Software & Systems Cost ($/unit) X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Operations Costs ($/unit, $/year) X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Maintenance Costs ($/unit, $/year) Cost Data X X X X X X X X X X X X X X X X X X X X X Administrative Costs ($/year) X X X X X X X X X X X X X Incentive Costs ($/year) X X X X X X X X X X X X X X X X X Marketing, Outreach, and Education Costs ($/year) X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Training Costs ($/year) X X X X X X X X X X X X X X X X X X X X X X X Penetration Rate/Uptake (%) X X X X X X X X X X X X X X X X Persistence (%) X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Utility Acceptance/Perception (description) X X X X X X X X X X X X X X X End-User Acceptance/Perception (description) X X X X X X X X X X X X X X X X X X X Regulatory Acceptance/Perception (description) Deployment Factors X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Future Deployment Plans (description)
- 38. Smart Grid Cost-Benefit Tools » 3 – Regional Cost-Benefit Assessment Model Using this tool in a regional analysis demonstrated a favorable benefit/cost ratio. Regional Benefit Summary Smart Grid Economic Benefits - 2010 NPV 5. $0.3 B 6. $0.3 B 1. T&D Automation & Optimization 4. $1.3 B 2. End Use Energy Efficiency & Conservation 1. $3.1 B 3. Dynamic & Responsive Demand 4. Reliability from DR & Storage $9.5 B 3. $1.8 B 5. Reduction of Renewable Integration Costs 6. Prevented Outages 2. $2.7 B Smart grid build-out for the region in this scenario was estimated between $4B to $6B over this period. Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 37 ENERGY
- 39. Key CONTACTS David Walls Managing Director Burlington, MA (781) 270-8436 DWalls@navigant.com Forrest Small Director Burlington, MA (781) 270-8303 Forrest.Small@navigant.com Ralph Zarumba Director Chicago, IL (312) 583-4167 Ralph.Zarumba@navigant.com Erik Gilbert Associate Director Boulder, CO (303) 728-2536 Erik.Gilbert@navigant.com ©2011 Navigant Consulting, Inc. 38 Confidential and proprietary. Do not distribute or copy. ENERGY