Ti E Smart Grid Overview Rh 5 05 09

TiE Oregon's Clean Energy SIG
Focus on the Smart Grid
• Session 1 – May 2009
– An Introduction to the Smart Grid Market
• Smart Grid Overview
• Some local examples
• Highlights of some opportunities to pursue

• Session 2 – Early Fall 2009?
– Global smart grid activities
– Taking advantage of new legislation
– Some local examples

• Session 3 – Late Fall 2009?
– TBD
Oregon TiE - Smart Grid Presentation by
1
Roger Hicks

Meeting Agenda
Roger Hicks
Business Consultant
“What is the smart grid and why should we care?”
An introduction to the smart grid concept along with a summary of problems it will address and some business opportunity
examples in the emerging clean energy marketplace.

John Thornton
VP Manufacturing & Supply Chain, Porteon Electric Vehicles Inc.

“Moving towards the intelligent convergence of vehicles,
buildings and electric utilities.”
An overview of perspectives on the future of transportation and sustainability: electric vehicles (EVs) and the Smart Grid as
enabling technologies.

Bill Sproull
Sr. VP of Business Development & Customer Experience at ClearEdge Power

“Smart and Clean Distributed Generation”
How clean, high efficiency - smart - distributed generation can play a role in the Smart Grid of the future and, specifically as
an example, what ClearEdge Power is doing to bring compact fuel cell combined heat and power systems to
residential and commercial.

Wrap-up
“Discussion of Opportunities to Pursue”
2
Roger Hicks

What Is the Smart Grid and
Why Should We Care?

Roger Hicks
TiE Clean Energy SIG Meeting
5-5-09

3
Roger Hicks

Why All This Interest In Energy?
• Electricity is one of the largest and most capital-intensive sectors of the economy.
– Total asset value is estimated to exceed $800 billion, with approximately 60% invested in power
plants, 30% in distribution facilities, and 10% in transmission facilities.
• Annual electric revenues – the Nation’s “electric bill” – are about $247 billion
– Paid by America’s 131 million electricity customers, which includes nearly every business and
household.
– There are more than 3,100 electric utilities and additionally, there are nearly 2,100 non-utility power
producers, including both independent power companies and customer-owned distributed energy
facilities.
• There are a lot of risks we face by staying on the current path.
– Uncertain access to fuel resources – cost may go out of control
– Increasing harm to the atmosphere – global warming may change the planet
– Unpredictable power outages – cascading grid failures disrupt commerce
– Poor utilization of economic capital – unnecessary cost increases for energy users
• “The grid of the future will require $165 billion over the next 20 years” - EPRI
– The benefits to society will be $638 to 802 billion. The cost-benefit is 4 to 1.

4
Roger Hicks

The 100 yr old Electric Power Grid Will
Soon Go Through a Rapid Evolution

5
Roger Hicks

It’s Time to Think Different

• While the Smart Grid will utilize the latest
technology to achieve its goals, it is not just
about technology.
• Implementation of the Smart Grid will require
a complete rethinking of the public policy,
utility business models, business processes
and consumer behavior.
• This is a real paradigm shift!
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Roger Hicks

So Just What is the Smart Grid?
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dolor sit amet, consectetur, adipisci velit, sed quia non
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Nobody really knows yet but we sure are talking
about it a lot.
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Roger Hicks

What is the Smart Grid?
• According to US Department of Energy (DOE):
– Smart Grid is the term used for an electricity
delivery system that is integrated with modern
digital and information technology to provide
improved reliability, security, efficiency and
ultimately lower cost to the user.

8
Roger Hicks

The Vision of the Smart Grid

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Roger Hicks

Source: NETL – A Systems View of the Modern Grid – Spring 2009
Visit our website at www.netl.doe.gov/moderngrid/ toSmart Grid Presentation by
Oregon TiE - find out how you can
10
become more involved in this national effort to modernize theHicks
Roger grid.

Benefits of the Smart Grid

• Summary of Energy-Savings & Carbon-Reduction
Mechanisms Enabled by a Smart Grid
EPRI – The Green Grid
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Roger Hicks

Goals and Characteristics, Which Together
Characterize a Smart Grid
From: FERC – Smart Grid Policy, March 2009

• Increased use of digital information and controls technology to improve
reliability, security, and efficiency of the electric grid.
• Dynamic optimization of grid operations and resources, with full cyber-
security.
• Deployment and integration of distributed resources and generation,
including renewable resources.
• Development and incorporation of demand response, demand-side
resources, and energy efficiency resources.
• Deployment of “smart” technologies (real-time, automated, interactive
technologies that optimize the physical operation of appliances and
consumer devices) for metering, communications concerning grid
operations and status, and distribution automation.

12
Roger Hicks

Goals and Characteristics, Which Together
Characterize a Smart Grid
From: FERC – Smart Grid Policy, March 2009

• Integration of “smart” appliances and consumer devices.
• Deployment and integration of advanced electricity storage and peak-
shaving technologies, including plug-in electric and hybrid electric
vehicles, and thermal storage air conditioning.
• Provision to consumers of timely information and control options.
• Development of standards for communication and interoperability of
appliances and equipment connected to the electric grid, including the
infrastructure serving the grid.
• Identification and lowering of unreasonable or unnecessary barriers to
adoption of smart grid technologies, practices, and services.

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Roger Hicks

Smart Grid Knowledge Domains
Energy Advanced Renewable
Management Metering portfolio
EMS RPS
Systems Infrastructure standard

AMI
Demand
Transmission
Response
and
T&D DR
Distribution

Smart Cap and
REP C&T Trade
Grid
Renewable
Energy
HAN DG
Payments
Home Area Distributed
Networks Generation

EV
FERC
TOU Federal
Electric
Energy
Time of Use Vehicles
Regulatory
Rates
Commission

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Roger Hicks

How Utilities Respond to Peak Demand
Will Change

EPRI – The Green Grid 15
Roger Hicks

The Electricity Transmission Network is
Going to Change

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Roger Hicks

How Systems Work Together Will Change

EPRI – The Green Grid 17
Roger Hicks

Infrastructure Devices Will Change

EPRI – The Green Grid
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Roger Hicks

Communications Will Change

Smart Grid Standards Assessment and
Recommendations for Adoption and
Development, February 2009
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Copyright © 2009 EnerNex Corporation. All rights reserved. Roger Hicks

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Roger Hicks
Copyright © 2009 EnerNex Corporation. All rights reserved

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Roger Hicks

From Grid 2030 report by US DOE 2003
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Roger Hicks

Some Local Smart Grid Players
• Measurement & Control
– Veris Industries, Obvius
– BPL Global, Powermand
• Distributed Generation & Monitoring
– PV Powered, ClearEdge Power,
– Azuray Technologies, Deck Monitoring
• Electric Vehicles and Infrastructure
– Porteon, Shorepower Technologies

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Roger Hicks

Veris Industries

Ethernet
Internet
4-20 mA
4-20 mA Phone line
Internet
Modbus
RS-485
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Roger Hicks

Obvius

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Roger Hicks

Challenges Facing the Utility Industry

Grid Efficiency Reliability
• Regulatory & • Aging grid infrastructure
environmental constraints • Faults are increasing due to
prohibiting supply growing loads with age
• Central supply costs are • Challenging asset
increasing management economics
• Distributed energy
resources are expensive

Load Management Grid Communications
• Demand is increasing beyond • Systems not prepared for
supply capacity emerging applications
• Metering infrastructure is • Limited network
inadequate for data needs management capability
• Growth is where supply is • Inadequate communications
not

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Roger Hicks

BPL Global’s Solutions

Residential and
Distribution Distribution
Distributed Renewable
Substation
C&I Demand
Grid Grid
Generation & Storage

Premise
Substation Solutions
Distributed Energy Resource Integration and Management Meet peak demand for
Extend asset life and
Integrate and optimize renewable sources of supply and storage ~1/3 the cost of new
improve reliability
generation
Fault Location and Asset Protection
Identify and isolate faults to improve reliability

SG® - Integration and collaboration
•Power

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Roger Hicks

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Roger Hicks

PV Powered’s SEGIS Award
• PV Powered was awarded one of 12 contracts after a competitive
solicitation process that attracted 27 applications
• Total US DOE funding to PV Powered is worth up to $5M
• The PV Powered project addresses five technology areas:
– Customized suite of PV material-specific MPPT algorithms
– Integration with commercial/industrial energy management (EMS)
systems
– Integration with utility Advanced Metering Infrastructure (AMI)
devices to enable a two-way interactive grid relationship
– Mitigation of issued associated with weather induced transients
– Smart string combiner tightly integrated with inverter

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Roger Hicks

Where is the Smart Grid
on The Hype Cycle?

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Roger Hicks

Is It Time for the Smart Grid?
Reasons to be excited Reasons to be cautious
– We are at an inflection point – It’s a stimulus driven market
– Innovation is needed to – Old industries change slowly
unlock value – The value proposition is
– It’s a long term movement unproven
– There is a large ecosystem – The benefits to consumers
are indirect
– Gov’t is favorable and
– Payback cycles are long
throwing money at it
– Alternatives are unattractive – It’s a complex combination of
technology, policy, businesses
– Lot’s of hype right now
and relationships

31
Roger Hicks

It’s Time to Deliver the Smart Grid

Source: PNNL
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Roger Hicks

Thank You
Contact Me If You Want to Know More
about Smart Grid Opportunities

roger.hicks@comcast.net
503.807.7627
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Roger Hicks

Backup

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Roger Hicks

• According the Federal Energy Regulation Commission (FERC)
– “The Smart Grid means a lot of things, but for us, the Smart Grid
means a more efficient transmission system that can reduce emissions
and increase reliability,” FERC Commissioner Philip Moeller said. “For
example, by minimizing line losses, Smart Grid technologies will allow
generators to produce less energy and less pollution, while delivering
the same amount of electricity to customers.”
• According to Electric Power Research Institute (EPRI)
– The term Smart Grid may be best understood as the overlaying
of a unified communications and control system on the existing
power delivery infrastructure to provide the right information to
the right entity (e.g. end-use devices, T&D system controls,
customers, etc.) at the right time to take the right action.
– It is a system that optimizes power supply and delivery,
minimizes losses, is self-healing, and enables next-generation
energy efficiency and demand response applications.

35
Roger Hicks

What Is the Smart Grid?
• According to PJM - a Regional Transmission Operator:
– Transitioning the grid from a radial system to a true network to
ensure connectivity from generation sources to end-use
customers.
– Converting from an electro-mechanical to a fully digital system to
support information and automation-enabled assets
– Enabling two-way communication within the grid community so
that customers can, if they choose, move from passive to active
participation in the marketplace.
• According to Oracle
– An electricity delivery infrastructure that leverages advancements in IT,
communications technology, and energy technology to improve
delivery utilization/resilience and empower consumers to address
environmental concerns

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Roger Hicks

• According to Capgemini consulting:
Nobody can tell you today exactly what technologies the future Smart
Grid will incorporate but we have been able to compile a list of key
characteristics.
We expect each utility to have its own version of the Smart Grid but it is
clear it will have the following characteristics:
– Autonomous restoration
– Resist attacks – both physical and cyber
– Supports distributed resources – (generation, storage, demand reduction)
– Supports renewable energy sources
– Provides for power quality
– Provides for security of supply
– Supports lower operations costs
– Minimizes technical losses
– Minimizes manual maintenance and intervention.

Capgemini Report - Smart Grid: Leveraging Technology to by
Oregon TiE - Smart Grid Presentation Transform T&D Operating Models
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Roger Hicks

Smart Grid Ingredients

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Capgemini Roger Hicks

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Roger Hicks

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Roger Hicks

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Roger Hicks

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Roger Hicks

www.netl.doe.gov/moderngrid 43
NETL – A Vision For a Modern Grid Roger Hicks

Ti E Smart Grid Overview Rh 5 05 09

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