International approach - Smart Grid and DSM: Issues and Activities
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The document discusses the concept of the smart grid, which integrates advanced technologies to enhance energy efficiency, reliability, and consumer control over electricity usage. It outlines various components, applications, and examples of smart grid implementations across different states and countries, emphasizing the benefits of demand-side management and advanced metering infrastructure. Additionally, it addresses key implementation challenges and the financial aspects related to the deployment of smart grid technologies.
International approach - Smart Grid and DSM: Issues and Activities
- 1. The Regulatory Assistance Project 50 State Street, Suite 3 Montpelier, Vermont USA 05602 Tel: 802.223.8199 Fax: 802.223.8172 27 Penny Lane Cedar Crest, New Mexico USA 87008 Tel: 505.286.4486 Fax: 773.347.1512 P.O. Box 210 Volcano, California USA 95689 Tel: 209.296.4979 Fax: 716.296.4979 P.O. Box 507 Hallowell, Maine USA 04347 Tel: 207.623.8393 Fax: 207.623.8369 429 North NE Nebergall Loop Albany, OR 97321 Tel: 541.967.3077 Fax: 541.791.9210 Smart Grid and DSM: Issues and Activities Frederick Weston Chester, England 21 October 2009
- 2. Smart Grid The smart grid is an interconnected system of information and communication technologies and electricity generation, transmission, distribution, and end-use technologies that has the potential to: – Enable consumers to manage their usage and choose the most economically efficient energy service offerings, – Enhance delivery system reliability and stability through automation, and – Improve system integration of the most environmentally benign generation alternatives, including renewable resources and energy storage 2Adapted from Roger Levy, presentation to the Utah Public Service Commission, 13 May 2009
- 3. DSM Demand-Side Management means many things to many people – In the US, DSM as a catch-all term is typically no longer used • Replaced by energy efficiency and demand response • In the US, DSM refers to either “demand response” or “ratepayer-funded energy efficiency” – In this presentation, it refers to all investments and activities that affect customers’ load shapes and usage 3
- 4. Some Goals of Smart Grid Lowering costs of service (utility costs, capacity utilization, unit costs, environmental footprint) Strengthening system reliability and security – Improved management of increasingly complex system • Users become resources that provide value to the system • Increased deployment of distributed technologies – generation and end-use efficiency – Better integration of non-dispatchable resources Increased consumer economic efficiency through: – Information and automation and – More advanced (dynamic) pricing structures • TOU prices, Critical Peak Pricing (or rebates), Real-Time Pricing Improved EM&V of end-use energy efficiency programs Fostering innovation and entrepreneurship 4
- 5. Primary Target: Cost of Peak 5
- 6. Key Technology & System Components Communications – Medium: wireless, internet/broadband, telephone, power-line – Utility-customer, utility-appliance, customer-appliance, aggregator-utility, aggregator-customer Intelligence configuration – “Smart” systems: Automated meters & advanced “smart” metering – the intelligence is in the meter or with the system operators – “Dumb” systems: Communications backbone but intelligence is not in the meter . Instead it is in the customer’s computer, appliances themselves, or in hand of an aggregator, etc. Integration into system operations – New operating protocols – Impacts on system reliability standards Integration into system planning 6
- 7. Some Supply-Side Smart Grid Applications Generation control Regulation (voltage/VARs, etc.) Real-time energy balancing Reserve augmentation Intra-day production shifting Diurnal, weekly, and seasonal leveling Firming of renewables 7
- 8. Distributed Resources: Smart Grid Applications Local area networks (home, campus, etc.) Direct load control Demand response aggregation Distributed Generation Micro-grids Energy storage 8
- 10. Pennsylvania Six electric distribution companies (EDCs) have fully deployed or are completing deployment of advanced metering networks with varying levels of “smart” functionality – PECO, PPL Electric, Duquesne, Citizens, Wellsboro, and UGI All EDCs would have to upgrade their system to provide hourly pricing 10
- 11. Pennsylvania (cont.) 11 PPL Electric Utilities Project description Number of meters Costs and benefits Original deployment 1.3 million Est. operational benefits alone outweigh costs by $7 million (15-yr NPV) 2002-2004 Upgrading AMR network, without replacing meters, to provide an hourly pricing option for all customers by 2010 consistent with Act 129
- 12. Texas 12 CenterPoint Energy - Houston Project description Number of meters Costs and benefits Deployment Planned enhancements 2.4 million Capital cost - $639.6 million Est. savings and benefits - $120.6 million during surcharge period (12 years) 2009 through 2014 ARRA funding proposal may include remote control switches, a Distribution Management System to enable management and control of microgrids and integration of wind and solar, fault location characterization software, predictive failure analysis software, and PHEV demo AMI with two-way network (WiMax radios); remote connect/ disconnect; consumer education; home monitors for low-income Sources: Filings in TPUC Docket No. 35639; Smart Grid Today, 4/27/09; CenterPoint filing in Project No. 36674.
- 13. Multiple States 13 American Electric Power – gridSMART South Bend, Indiana, Pilot (late 2008-late 2009; $7 million) Texas Planned enhancements Ohio substation pilot 10,000 meters installed; customer access to prior day hourly data; A/C load control; TOU rate option; remote connect/disconnect; 6- 10 MW/yr of utility-scale battery storage; PHEV charging, dist. mgt. system on 2% of circuits (reconfiguration/optimization, real- time monitoring and diagnostics, fault location i.d.) Smart meters to all 5 million customers by 2015; microgrids; EPRI “green circuit”; 25 MW of energy storage by 2010; 1,000 MW of demand reduction from efficiency and DR by 2012 Demo of high-speed, IP-based communications to connect three substations using high-voltage BPL (USDOE funding); applications include protective relaying, SCADA expansion, remote station surveillance and advanced sensing Installing 1 million smart meters in Texas over next several years
- 14. Oregon 14 Portland General Electric Project description Number of meters Costs and benefits Deployment Planned enhancements 850,000 Capital cost - $132 million Est. operational savings in 2011 - $18.2 mil. (not incl. DR, etc.); net benefits $33 million (20-yr PVRR) Mid-2008 (systems acceptance testing) through 2010 Two-way RF AMI, remote connect/disconnect on all multi- family meters CPP pilot for residential customers beginning 2010, turnkey demand response programs (via recent RFP) may use AMI system, integration of AMI with new outage management system, energy usage and tools on Internet, better information on bills, distribution asset utilization, stimulus fund projects
- 15. Oregon Where are Portland General Electric’s expected operational savings? 15 Non-Labor Costs 3% Power Cost Savings 8% Working Capital Improvement 3% Unaccounted for Energy 11% Late Fees 11% Labor and Loadings 64%
- 16. European Union 16 Enel SpA - Italy Project description Costs and benefits Planned enhancements Cost - €2.1 billion Projected annual savings – €500 million • 32 million smart meters installed from 2000 to 2005 • Real-time display of home energy usage • Pricing options and participation in energy markets • Automatic management of the grid in case of outage • Monitoring of status of network components • >100,000 substations remotely controlled • Automated fault clearing • Mobile applications for field crews • More fault detectors, • New voltage and current outdoor sensors, • Distributed generation protection, • Enable active participation of small and medium customers in power market. Sources: “Echelon teams with T-Mobile for cell-based AMI,” Smart Grid Today, 4/23/09; Enel Spa presentations at Grid Week 2008 and Brussels, 3/19/09 Enel coordinates ADDRESS, a consortium of 11 EU countries developing large- scale interactive distribution energy networks.
- 17. European Union (cont.) 17 EDF – France, Italy, Germany, UK Project description Costs and benefits Smart grid demos Cost - $6.4 billion (est.) Est. yearly savings - $430M on metering services; ~$220M on non tech. losses 2010: 1% pilot (300,000 meters, 7,000 concentrators) to test information system and deployment process and validate business case; installing advanced digital controls for distribution automation at substations 2012-2016 – 35 million meters; 700,000 collectors PREMIO - Distributed energy resources, renewable resources, energy efficiency and demand response FENIX – Aggregate distributed energy resources to create a large-scale virtual power plant Source: Richard Schomberg - EDF VP Research North America, GridWeek 2008
- 18. Getting Smart Advanced metering infrastructure (AMI – smart meters and 2-way communication) may be a 1st step, providing new capabilities such as: – Time-varying pricing options coupled with enabling technology like smart communicating thermostats – Useful usage information for consumers and CSRs – Improved outage detection and response – Right sizing of distribution assets 18
- 19. Getting Smart (cont.) FERC survey conducted in 1st half of 2008 – 4.7% of meters in U.S. are “advanced” • Highest penetration rates in Pennsylvania, Idaho, Arkansas, North Dakota and South Dakota (IOUs in PA and ID; co-ops elsewhere) • That does not include installations by the three California IOUs, CenterPoint, Oncor, Southern Co., PGE, Detroit Edison, Alliant, etc. – 8% of U.S. consumers participate in a demand response program • Potential resource contribution is about 41,000 MW – about 5.8% of U.S. peak demand 19
- 20. US Deployment of AMI 20 Source: KEMA presentation to Northwest Energy Efficiency Alliance, 2/11/09, using FERC survey data from the first half of 2008 AMI Penetration Rates – 2008
- 21. Microgrids Interconnected network of distributed energy systems (loads/resources) that can function connected to or separate from grid During a grid disturbance, a microgrid isolates itself from the utility seamlessly with no disruption to loads within; automatically resynchronizes and reconnects to grid seamlessly when grid conditions return to normal Current projects – CERTS Microgrid Test Bed (AEP) - Testing started 11/06 – GE demo - Advanced controls, energy mgt. and protection technologies – US Army CERL/Sandia Labs Energy Surety Project - Controls, optimization of resources and storage 21
- 22. The American Recovery and Reinvestment Act of 2009 (ARRA) Signed into law on 17 February 2009 $787 billion total funding For FY2009-FY2012 DOE portion – $32.7 billion, excluding loan programs – $12.5 billion in loan programs • Rapid deployment of renewable energy systems -- $6.0 billion • DOE power administration borrowing authority -- $6.5 billion 10/22/2009 22
- 23. ARRA $ for DOE Energy Efficiency and Renewables Work $16.8B EERE Recovery Act Funding $2.5 $14.35 EERE Discretionary RD&D EERE Directed Funding Amounts are in billion US Dollars
- 24. Some Key Implementation Issues What is the objective of deployment? – i.e., what problem are you solving? – Carbon impacts: both operational and planning High front-end infrastructure cost Chicken or egg? – absence of smart appliances – if you build it will they come? Identifying the values of different applications – Who benefits and who pays? – Inter-generational issues Access to information – Customers & aggregators must have timely & easy access to consumption data 24
- 25. More Key Implementation Issues Where does the “smart” part go: – In the meter? – In the appliance? – On a separate platform (e.g., personal computer)? – Potential big winners and losers • Technology developers (everybody wants “their” technology to be “the” technology) • Utilities (usually want to “own” the customer relationship) Open source versus proprietary systems – Communications protocols – Data format – Control signals 25
- 26. Cautions Is a smart grid a green grid? – Assertions of savings, particularly energy savings from changes in consumer behavior, may be optimistic – Improved price signals do not eliminate all barriers to end- use efficiency • Direct programmatic spending on energy efficiency can save seven times as much energy (and carbon) per consumer $ than can carbon taxes or prices • Carbon benefits of load-shifting depend on resource mix Does focus on smart grid distract policymakers from more cost-effective means of achieving same ends? – Integrated long-run analysis needed to determine highest and best uses of limited ratepayer dollars 26
- 27. Recycling the $$ into EE Saves Seven Times More Carbon 27
- 28. The Smart Grid Suite 28
- 29. From Smart to Smarter “Smart Grid” continuing to evolve Demos and rollout of pieces Fully integrated projects with these features are just starting – Real-time communication – Active interaction with loads – Distribution system management – Optimized integration of distributed generation and storage 29 EPRI graphic