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The Networked Grid 2010 - R. Thompson, D. Leeds
The Networked Grid Sponsors

                     SIGNATURE
LIVE BROADCAST       SPONSORS             UTILITY
   SPONSOR                               SPONSORS
Additional Sponsors
Public Utilities in Attendance

Representing over 70 Million Electricity Customers
Keynote Speakers


     Mike Montoya, Director of Engineering Advancement

     Southern California Edison

     Day 1 Utility Keynote





     Linda Jackman, Group VP, Product Strategy & Management

     Oracle Utilities

     Day 2 Software & Applications Keynote





     Stephen Johnston, Chief Executive Officer

     SmartSynch

     Day 2 Network Infrastructure Keynote
Agenda: Day 1, May 18th

     9:00am – 9:45am: Introduction and GTM Research Top 5 Smart Grid Trends

     9:45am – 10:30am: Keynote Address, Mike Montoya, SCE


     10:30am – 11:00am: Break


     11:00am – 12:30pm: North American Utility Executive Round Table Discussion


     12:30pm – 1:30pm: Lunch


     1:30pm – 2:45pm
       
  Track 1: Networked Grid Communications Infrastructure: Scaling AMI and Beyond
       
  Track 2: The Soft Grid: Smart Grid’s Killer Applications

     2:40pm – 4:00pm
       
  Track 1: Power Forward: Grid Optimization and Distribution Automation
       
  Track 2: Information is Power: Meter Data Management and Analytics


     4:00pm – 4:30pm: Break


     4:30pm – 5:45
       
  Track 1: Winning the Home Network Battle: PHYs, Protocols and Platforms
       
  Track 2: The Smart Home Customer Experience: Next-Generation Consumer Services and Time-of-Use Pricing



     5:45pm – 8:00pm: Networking Cocktail Reception (Main Pool)
Agenda: Day 2, May 19th

     8:45am – 9:00am: Day 2 Welcome and Kickoff


     9:00am – 9:30am: Software and Applications Keynote, Linda Jackman, Oracle Utilities

     9:30am – 10:00am: Network Infrastructure Keynote, Stephen Johnston, SmartSynch


     10:00am – 10:30am: Break


     10:30am – 12:30pm: Workshop Sessions
       
  Track 1: Power Layer Infrastructure Technologies and Network Communications Layer Architectures (Erich Gunther, Enernex)
       
  Track 2: North American Utility Smart Grid Case Studies (PG&E, SMUD, USC/LADWP)



     12:30pm – 1:30pm: Lunch


     1:30pm – 2:30pm
       
  Track 1: Securing the Networked Grid Infrastructure
       
  Track 2: Addressing Peak Demand: The Future of Demand Response and Smart Appliances



     2:30pm – 3:30pm
       
  Track 1: The Microgrid Emergence: Distributed, Intermittent Renewable Power and Storage
       
  Track 2: Utility Enterprise 2.0: Information Technology and Back-Office Systems Integration



     4:00pm – 5:00pm
       
  Track 1: The Networked EV: Smart Grids and Electric Vehicles
       
  Track 2: The Networked Building: Efficient, Automated “Energy LANs”
Indian Wells Conference Center Layout

TRACK 2




TRACK 1
The Only Fully-Integrated Media Firm

Online Media     Market Research          Industry Events
                                   Annual Summit Events




                                   One-Day Conferences




                                       Q3/Q4 Events to be
                                       Announced Soon!
Smart Grid Research Subscription Service

                                                       Upcoming Titles

                                                
     Smart Grid 2015: Market
                                                      Forecast & Top 5 Trends

                                                
     Smart Grid Policy: Top 10
                                                      State PUC Profiles

                                                
     The Future of Meter Data
                                                      Management

    Annual Research Subscription Service
                                                
     The Future of Distribution
                                                      Automation Communication

    Eight (8) Market Reports Per Year                Networks



    Dedicated Monthly Analyst Access Time      
     The Networked EV: Smart
                                                      Grids and Electric Vehicles
1 Year Later: GTM’s Smart Grid Taxonomy
GTM’s Top 5 Smart Grid Trends



    Increase Consumer Awareness and Engagement


    Realizing the Network Infrastructure Foundation


    EV Growth Accelerating the Need for Smart Grids


    The Convergence of Smart Grids and Distributed PV


    The Growth and Future of Demand Response
1. Customer Awareness and Engagement


     Inability of utilities to adequately explain the benefits of smart meters to customers


     What are the necessary actions?
      
     Education
      
     Marketing (Customer Segmenting)
      
     Value



     What actions are utilities taking now?
      
     Restructuring organizations around better outbound communications to consumers

      
     Ramping up and better formalizing customer support centers
             
  Ex: PG&E launching dedicated call center with 165 customer service reps.

      
     Dedicating more budget for consumer education and marketing
             
  Ex: BG&E’s $500M smart grid project ($50M dedicated to education & marketing)

      
     Creating transparency and providing factual data to PUCs and consumer groups
              
  Ex: Oncor and PG&E meter accuracy testing
Customer Awareness and Engagement


    The conversation needs to change from energy savings to value creation
     
    Does the consumer care about a 10% monthly savings on electric bills?
     
    Can we imagine new programs where consumers accrue value?
           
  Create solutions to problems that people may not realize that they have
                
  Ex: Apple iPod and digital music libraries
           
  Participatory network for trading/selling both negawatts and energy
                
  Ex: net metering for solar



    What does this issue foreshadow for more advanced SG services?
     
    TOU pricing, EV charging, etc.



    The industry (not necessarily the consumer) needs to be prepared for
     imperfection
     
    Rate of meter deployment increasing (PG&E 10x increase/day from 2007 to
          2008)
     
    Amount of new technology and systems is extensive
2. Realizing the Network Infrastructure Foundation


     Building a communications network infrastructure is a FOUNDATION for ALL smart
      grid applications and services
      
     Building an AMI network is not enough
      
     Distribution Automation is a critical application
      
     Will overlay networks be acceptable and/or cost effective for different apps?

     Physical layer networking “religion” arguments are misguiding the industry
      
     There is no one network fits all solution (scale, coverage, performance & cost rule)
      
     Different applications have different networking requirements
      
     Different service areas and physical environments have different requirements

     Standards are good but they do NOT translate to interoperability
      
     “Based on IP” is an onion with many layers to peel back

     Network segmentation and function is becoming better defined and more critical
      
     Tiered networks will define smart grid communications platforms
      
     Provisioning services across an entire network is critical

     Centralized versus distributed network intelligence will dictate architecture

     Many network technologies & architectures will prevail in evolving smart grids
      
     Mesh, WiMAX/LTE, BPL, Licensed, Unlicensed, Public, Private
      
     Telecom: FTTH, FTTC, EPON, GPON, ADSL, ADSL2+, VDSL, CWDM, DWDM, ATM, Frame
            Relay, IP, SONET, Carrier Ethernet, and the list goes on
Realizing the Network Infrastructure Foundation




Source: GTM Research
3. EV Growth Accelerating the Need for Smart Grids
                                 (SG and EVs: Is the tail wagging the dog?)


     True EV scale is impossible without a networked grid in place

     2010/11 EVs coming to market
      
     Leaf priced at $25k (after fed tax credit)
      
     Most major auto manufacturers delivering products to market
      
     CA IOUs high-end estimate between 800k – 1M EVs by 2020

     Major issues on the horizon
      
     The load impacts of EVs are equivalent, or greater, to a home at peak
              
  Nissan Leaf: 220V, 30 Amps = 6.6 kW
              
  Chevy Volt: 240V, 16 Amps = 3.8kW
      
     Infrastructure build-out (grid- and customer-level) to maintain safe, reliable electric services
      
     The critical need for off-peak charging
      
     Rate design for EVs (setting the right pricing scheme)
      
     Offering the right products and services
              
  Public networked charging stations, in-home 220V connections, etc.
      
     Intersection of renewable energy and vehicle charging
      
     Proper consumer education

     Technology building blocks
      
     Basic hardware, networking (all flavors), software (provisioning, authentication, applications,
            etc.)
EV Growth Accelerating the Need for Smart Grids




Source: Nissan and PG&E
4. The Convergence of Smart Grids and PV




Source: GTM Research




                                        Source: GTM Research
The Convergence of Smart Grids and PV

     Moving from a centralized architecture to a distributed architecture ALWAYS
      introduces massive opportunities for change, along with technical challenges
      
     The “distributed utility” is on the horizon (aggregate distributed PV power plants)

     Certain circuits in certain service areas are ALREADY facing >20% distributed PV
      penetration
      
     What new technologies are necessary to accommodate this?
      
     What is the EXACT % of PV penetration where issues begin to arise?
      
     When will energy storage solutions be available at scale at acceptable price points?

     Sensor and communications technologies are critical to scale distributed PV while
      maintaining grid stability and reliability
      
     SG networks can manage voltage regulation, reverse power flow, power fluctuation, etc.

     Inverters/microinverters and architectures (centralized/distributed) are evolving
      rapidly
      
     Possibily to +/- both power and VAR
      
     Inverter companies are exploring and developing expanded communications solutions
      
     Microinverter companies are exploring home gateway/comms opportunities

     A smart grid comms network could potentially provide the ability to forecast PV
      resources for capacity planning
      
     Integration of GIS/weather
5. The Growth and Future of Demand Response



     Demand Response is rapidly evolving from wholesale markets to retail markets

     Last Friday PJM procured a total of ~10GW in DR for 2013/14 capacity auction
     
     Increase of 32% over last year



     Recent DR Trends
     
     More attention to the correlation of a smart grid and demand response
             
  HANs are effectively trying to automate DR across smart appliances
     
     Increased participation of consumers in demand response programs
     
     More interest in multi-state and state-federal demand response working groups (FERC-
           NARUC) and new regulatory structures
     
     More reliance on demand response in strategic plans and state plans
             
  Act 129 in PA (3% reduction in electricity use / 4.5% reduction in peak demand by
                2013)
     
     Increased activity by third parties to aggregate retail demand response
             
  Megawatts under management continues to grow for leading CSPs
The Growth and Future of Demand Response

At Peak, DR is cheaper, faster and cleaner than adding a peaking power plant

                                            
     The Future of Demand Response

                                                 
     Barclay’s Capital estimates DR
                                                       market could hit $20B by 2020

                                                 
     Will demand response retail
                                                       auctions emerge?

                                                 
     Will utilities leverage SG comm
                                                       networks to cut out 3rd party
                                                       CSPs?

                                                 
     Will consumers increasingly
                                                       inquire about the market value of
Source: GTM Research                                   their negawatts?
Additional Important Trends and Topics


     Management of the coming onslaught of data (MDM and beyond)
      
     Integrated enterprise back-end systems not yet prepared

     Smart grid security (physical/cyber) and consumer privacy
      
     Applying NERC CIP, NIST 7268, etc.

     HANs and consumer energy management (growth opportunity but nascent)
      
     Physical layer communications and user applications/platforms

     ARRA Funds Releasing
      
     $204M to Duke Energy last week

     Microgrids
      
     Policy incentives and declining costs for distributed generation and storage
      
     Financial incentives for negawatts and “M2G” (microgrid to grid)

     PUCs Evolving
      
     Examples: Act 129 in PA, SB 221 in OH, rate-based energy storage in TX, Phase I EV ruling
            in CA

     Industry M&A
      
     ABB/Ventyx, Cooper/Eka, Honeywell/Akuacom, SSN/Greenbox, EnerNOC/SmallFoot, Black
            & Veatch/Enspiria
Upcoming 2010 Conferences



    Growth Opportunities Utility-Scale Solar
    
    July 13th, San Francisco, Intersolar NA



    PV Grid: The Convergence of Smart Grids and Solar
    
    September, New York



    The Networked EV: Smart Grids and Electric Vehicles
    
    November 9th, San Francisco, PG&E Auditorium
The Networked Grid 2011: Save the Date

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The Networked Grid 2010 - R. Thompson, D. Leeds

  • 2. The Networked Grid Sponsors SIGNATURE LIVE BROADCAST SPONSORS UTILITY SPONSOR SPONSORS
  • 4. Public Utilities in Attendance Representing over 70 Million Electricity Customers
  • 5. Keynote Speakers   Mike Montoya, Director of Engineering Advancement   Southern California Edison   Day 1 Utility Keynote   Linda Jackman, Group VP, Product Strategy & Management   Oracle Utilities   Day 2 Software & Applications Keynote   Stephen Johnston, Chief Executive Officer   SmartSynch   Day 2 Network Infrastructure Keynote
  • 6. Agenda: Day 1, May 18th   9:00am – 9:45am: Introduction and GTM Research Top 5 Smart Grid Trends   9:45am – 10:30am: Keynote Address, Mike Montoya, SCE   10:30am – 11:00am: Break   11:00am – 12:30pm: North American Utility Executive Round Table Discussion   12:30pm – 1:30pm: Lunch   1:30pm – 2:45pm   Track 1: Networked Grid Communications Infrastructure: Scaling AMI and Beyond   Track 2: The Soft Grid: Smart Grid’s Killer Applications   2:40pm – 4:00pm   Track 1: Power Forward: Grid Optimization and Distribution Automation   Track 2: Information is Power: Meter Data Management and Analytics   4:00pm – 4:30pm: Break   4:30pm – 5:45   Track 1: Winning the Home Network Battle: PHYs, Protocols and Platforms   Track 2: The Smart Home Customer Experience: Next-Generation Consumer Services and Time-of-Use Pricing   5:45pm – 8:00pm: Networking Cocktail Reception (Main Pool)
  • 7. Agenda: Day 2, May 19th   8:45am – 9:00am: Day 2 Welcome and Kickoff   9:00am – 9:30am: Software and Applications Keynote, Linda Jackman, Oracle Utilities   9:30am – 10:00am: Network Infrastructure Keynote, Stephen Johnston, SmartSynch   10:00am – 10:30am: Break   10:30am – 12:30pm: Workshop Sessions   Track 1: Power Layer Infrastructure Technologies and Network Communications Layer Architectures (Erich Gunther, Enernex)   Track 2: North American Utility Smart Grid Case Studies (PG&E, SMUD, USC/LADWP)   12:30pm – 1:30pm: Lunch   1:30pm – 2:30pm   Track 1: Securing the Networked Grid Infrastructure   Track 2: Addressing Peak Demand: The Future of Demand Response and Smart Appliances   2:30pm – 3:30pm   Track 1: The Microgrid Emergence: Distributed, Intermittent Renewable Power and Storage   Track 2: Utility Enterprise 2.0: Information Technology and Back-Office Systems Integration   4:00pm – 5:00pm   Track 1: The Networked EV: Smart Grids and Electric Vehicles   Track 2: The Networked Building: Efficient, Automated “Energy LANs”
  • 8. Indian Wells Conference Center Layout TRACK 2 TRACK 1
  • 9. The Only Fully-Integrated Media Firm Online Media Market Research Industry Events Annual Summit Events One-Day Conferences Q3/Q4 Events to be Announced Soon!
  • 10. Smart Grid Research Subscription Service Upcoming Titles   Smart Grid 2015: Market Forecast & Top 5 Trends   Smart Grid Policy: Top 10 State PUC Profiles   The Future of Meter Data Management  Annual Research Subscription Service   The Future of Distribution Automation Communication  Eight (8) Market Reports Per Year Networks  Dedicated Monthly Analyst Access Time   The Networked EV: Smart Grids and Electric Vehicles
  • 11. 1 Year Later: GTM’s Smart Grid Taxonomy
  • 12. GTM’s Top 5 Smart Grid Trends  Increase Consumer Awareness and Engagement  Realizing the Network Infrastructure Foundation  EV Growth Accelerating the Need for Smart Grids  The Convergence of Smart Grids and Distributed PV  The Growth and Future of Demand Response
  • 13. 1. Customer Awareness and Engagement   Inability of utilities to adequately explain the benefits of smart meters to customers   What are the necessary actions?   Education   Marketing (Customer Segmenting)   Value   What actions are utilities taking now?   Restructuring organizations around better outbound communications to consumers   Ramping up and better formalizing customer support centers  Ex: PG&E launching dedicated call center with 165 customer service reps.   Dedicating more budget for consumer education and marketing  Ex: BG&E’s $500M smart grid project ($50M dedicated to education & marketing)   Creating transparency and providing factual data to PUCs and consumer groups  Ex: Oncor and PG&E meter accuracy testing
  • 14. Customer Awareness and Engagement  The conversation needs to change from energy savings to value creation  Does the consumer care about a 10% monthly savings on electric bills?  Can we imagine new programs where consumers accrue value?  Create solutions to problems that people may not realize that they have  Ex: Apple iPod and digital music libraries  Participatory network for trading/selling both negawatts and energy  Ex: net metering for solar  What does this issue foreshadow for more advanced SG services?  TOU pricing, EV charging, etc.  The industry (not necessarily the consumer) needs to be prepared for imperfection  Rate of meter deployment increasing (PG&E 10x increase/day from 2007 to 2008)  Amount of new technology and systems is extensive
  • 15. 2. Realizing the Network Infrastructure Foundation   Building a communications network infrastructure is a FOUNDATION for ALL smart grid applications and services   Building an AMI network is not enough   Distribution Automation is a critical application   Will overlay networks be acceptable and/or cost effective for different apps?   Physical layer networking “religion” arguments are misguiding the industry   There is no one network fits all solution (scale, coverage, performance & cost rule)   Different applications have different networking requirements   Different service areas and physical environments have different requirements   Standards are good but they do NOT translate to interoperability   “Based on IP” is an onion with many layers to peel back   Network segmentation and function is becoming better defined and more critical   Tiered networks will define smart grid communications platforms   Provisioning services across an entire network is critical   Centralized versus distributed network intelligence will dictate architecture   Many network technologies & architectures will prevail in evolving smart grids   Mesh, WiMAX/LTE, BPL, Licensed, Unlicensed, Public, Private   Telecom: FTTH, FTTC, EPON, GPON, ADSL, ADSL2+, VDSL, CWDM, DWDM, ATM, Frame Relay, IP, SONET, Carrier Ethernet, and the list goes on
  • 16. Realizing the Network Infrastructure Foundation Source: GTM Research
  • 17. 3. EV Growth Accelerating the Need for Smart Grids (SG and EVs: Is the tail wagging the dog?)   True EV scale is impossible without a networked grid in place   2010/11 EVs coming to market   Leaf priced at $25k (after fed tax credit)   Most major auto manufacturers delivering products to market   CA IOUs high-end estimate between 800k – 1M EVs by 2020   Major issues on the horizon   The load impacts of EVs are equivalent, or greater, to a home at peak  Nissan Leaf: 220V, 30 Amps = 6.6 kW  Chevy Volt: 240V, 16 Amps = 3.8kW   Infrastructure build-out (grid- and customer-level) to maintain safe, reliable electric services   The critical need for off-peak charging   Rate design for EVs (setting the right pricing scheme)   Offering the right products and services  Public networked charging stations, in-home 220V connections, etc.   Intersection of renewable energy and vehicle charging   Proper consumer education   Technology building blocks   Basic hardware, networking (all flavors), software (provisioning, authentication, applications, etc.)
  • 18. EV Growth Accelerating the Need for Smart Grids Source: Nissan and PG&E
  • 19. 4. The Convergence of Smart Grids and PV Source: GTM Research Source: GTM Research
  • 20. The Convergence of Smart Grids and PV   Moving from a centralized architecture to a distributed architecture ALWAYS introduces massive opportunities for change, along with technical challenges   The “distributed utility” is on the horizon (aggregate distributed PV power plants)   Certain circuits in certain service areas are ALREADY facing >20% distributed PV penetration   What new technologies are necessary to accommodate this?   What is the EXACT % of PV penetration where issues begin to arise?   When will energy storage solutions be available at scale at acceptable price points?   Sensor and communications technologies are critical to scale distributed PV while maintaining grid stability and reliability   SG networks can manage voltage regulation, reverse power flow, power fluctuation, etc.   Inverters/microinverters and architectures (centralized/distributed) are evolving rapidly   Possibily to +/- both power and VAR   Inverter companies are exploring and developing expanded communications solutions   Microinverter companies are exploring home gateway/comms opportunities   A smart grid comms network could potentially provide the ability to forecast PV resources for capacity planning   Integration of GIS/weather
  • 21. 5. The Growth and Future of Demand Response   Demand Response is rapidly evolving from wholesale markets to retail markets   Last Friday PJM procured a total of ~10GW in DR for 2013/14 capacity auction   Increase of 32% over last year   Recent DR Trends   More attention to the correlation of a smart grid and demand response  HANs are effectively trying to automate DR across smart appliances   Increased participation of consumers in demand response programs   More interest in multi-state and state-federal demand response working groups (FERC- NARUC) and new regulatory structures   More reliance on demand response in strategic plans and state plans  Act 129 in PA (3% reduction in electricity use / 4.5% reduction in peak demand by 2013)   Increased activity by third parties to aggregate retail demand response  Megawatts under management continues to grow for leading CSPs
  • 22. The Growth and Future of Demand Response At Peak, DR is cheaper, faster and cleaner than adding a peaking power plant   The Future of Demand Response   Barclay’s Capital estimates DR market could hit $20B by 2020   Will demand response retail auctions emerge?   Will utilities leverage SG comm networks to cut out 3rd party CSPs?   Will consumers increasingly inquire about the market value of Source: GTM Research their negawatts?
  • 23. Additional Important Trends and Topics   Management of the coming onslaught of data (MDM and beyond)   Integrated enterprise back-end systems not yet prepared   Smart grid security (physical/cyber) and consumer privacy   Applying NERC CIP, NIST 7268, etc.   HANs and consumer energy management (growth opportunity but nascent)   Physical layer communications and user applications/platforms   ARRA Funds Releasing   $204M to Duke Energy last week   Microgrids   Policy incentives and declining costs for distributed generation and storage   Financial incentives for negawatts and “M2G” (microgrid to grid)   PUCs Evolving   Examples: Act 129 in PA, SB 221 in OH, rate-based energy storage in TX, Phase I EV ruling in CA   Industry M&A   ABB/Ventyx, Cooper/Eka, Honeywell/Akuacom, SSN/Greenbox, EnerNOC/SmallFoot, Black & Veatch/Enspiria
  • 24. Upcoming 2010 Conferences  Growth Opportunities Utility-Scale Solar  July 13th, San Francisco, Intersolar NA  PV Grid: The Convergence of Smart Grids and Solar  September, New York  The Networked EV: Smart Grids and Electric Vehicles  November 9th, San Francisco, PG&E Auditorium
  • 25. The Networked Grid 2011: Save the Date