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Recovery Act
Opportunities for Smart
         Grid
               Andrew G. Campbell
    Advisor to Commissioner Rachelle Chong
     California Public Utilities Commission

            Smart Grid Symposium
                April 21, 2009
                                              1
Energy Independence and Security Act of 2007

 Title XIII – Smart Grid, SEC. 1301. Statement of
   Policy on Modernization of Electricity Grid:

 It is the policy of the United States to support the
     modernization of the Nation's electricity
     transmission and distribution system to maintain
     a reliable and secure electricity infrastructure
     that can meet future demand growth and to
     achieve each of the following, which together
     characterize a Smart Grid:…(see Appendix)
                                                 2
American Recovery and Reinvestment Act
                  of 2009
$4.5 Billion – Smart Grid Research, Development,
  Demonstration, and Deployment
For expenses necessary for electricity delivery and energy
  reliability activities to modernize the electric grid,
  including: demand responsive equipment, enhance
  security and reliability of the energy infrastructure,
  energy storage research, development, demonstration
  and deployment, and facilitate recovery from disruptions
  to the energy supply, and for implementation of
  programs authorized under title XIII of the Energy
  Independence and Security Act of 2007 (42 U.S.C.
  17381 et seq.)

                                                      3
Smart Grid Funding Breakdown
                       Smart Grid
                       Investment
                         Grants
                      $3.375 Billion
      Other                               Smart Grid
    Initiatives                         Demonstrations
                                         $615 Million


                        Smart Grid
                       ($4.5 Billion)

                                        Worker Training
       Grid
                                         ($100 Million)
  Interoperability
                                          Green Jobs
   ($10 Million)                           Program
                           DOE
                      Transmission &
                     Demand Program
                        ($80 Million)
                                                                  4
                                                   Source: EPRI
Smart Grid Investment Grant Program
                                       Overview
  Competitive, merit-based solicitation; more than 1,500 applications expected
  Covers electric transmission, distribution, and customer-side applications
  Deployment of Phasor Measurement Units (PMU) within the transmission system is
a specific program goal

          Eligibility and Funding                      Anticipated Schedule
                                                       Activity               Date
•    $3.375 billion available
                                                    Notice of Intent      April 16, 2009
•    Funding provided for up to 50% of
     qualified investments requested by                  (NOI)
     grant applicants
                                                    Comments Due          May 6, 2009
•    Applications expected from eligible
     entities such as electric utilities, load
                                                  Funding Opportunity    [July 17], 2009
     serving entities, appliance and
                                                 Announcement (FOA)
     equipment manufacturers, and IT
     vendors
                                                 Application Due Dates   [July 29, 2009;
•    Expected project awards range from
                                                                          Dec. 2, 2009;
     $500,000 to $20,000,000 ($100,000
                                                                         Mar. 31, 2010]
     to $5,000,000 for PMU projects)
                                                  All Funds Obligated    September 2010
                                                                                     5
                                                                             Source: DOE
Smart Grid Demonstrations
                                       Overview
  Competitive, merit-based solicitation; several hundred proposals expected
  Covers electric transmission, distribution, and customer-side projects at a scale that
can be replicated across the country
  Scope includes (1) Regional smart grid demonstrations, (2) Utility-scale energy
storage demonstrations, (3) Grid monitoring demonstrations
        Eligibility and Funding                      Anticipated Schedule
•   $615 million available                           Activity                 Date
•   Applicant’s cost share must be at
                                             Draft Funding Opportunity    April 16, 2009
    least 50% of the total allowable costs
                                                    Notice (FOA)
•   Expect applications from all types of
    organizations including state and
                                                  Comments Due            May 6, 2009
    local agencies, universities, electric
    utilities, equipment manufacturers,         Funding Opportunity           TBD
    and project developers
                                               Announcement (FOA)
•   Expect to fund: 8-12 regional
    demonstrations, 12-19 energy               Application Due Dates          TBD
    storage projects, and 4-5 grid
    monitoring projects; $5m to $60m
                                                All Funds Obligated      September 2010
    per project                                                                      6
                                                                             Source: DOE
Five Technologies to Look for in Smart Grid
                    Projects
•   Integrated communications, connecting components to open
    architecture for real-time information and control,
    allowing every part of the grid to both ‘talk’
    and ‘listen’
•   Sensing and measurement technologies,
    to support faster and more accurate response
    such as remote monitoring, time-of-use pricing
    and demand-side management
•   Advanced components, to apply the latest research in
    superconductivity, storage, power electronics and diagnostics
•   Advanced control methods, to monitor essential components,
    enabling rapid diagnosis and precise solutions appropriate to
    any event
•   Improved interfaces and decision support, to amplify human
    decision-making, transforming grid operators and managers quite
    literally into visionaries when it come to seeing into their systems

                                                                      7
                                                              Source: DOE
APPENDIX


           8
Statement of Policy on Modernization of
                Electricity Grid
1. Increased use of digital information and controls
   technology to improve reliability, security, and efficiency
   of the electric grid.
2. Dynamic optimization of grid operations and resources,
   with full cyber-security.
3. Deployment and integration of distributed resources and
   generation, including renewable resources.
4. Development and incorporation of demand response,
   demand-side resources, and energy-efficiency
   resources.
5. 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. 9
Statement of Policy on Modernization of
           Electricity Grid. (Cont.)
6. Integration of `smart' appliances and consumer devices.
7. Deployment and integration of advanced electricity
   storage and peak-shaving technologies, including plug-
   in electric and hybrid electric vehicles, and thermal-
   storage air conditioning.
8. Provision to consumers of timely information and control
   options.
9. Development of standards for communication and
   interoperability of appliances and equipment connected
   to the electric grid, including the infrastructure serving
   the grid.
10.Identification and lowering of unreasonable or
   unnecessary barriers to adoption of smart grid
   technologies, practices, and services.
                                                       10

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Smart Grid

  • 1. Recovery Act Opportunities for Smart Grid Andrew G. Campbell Advisor to Commissioner Rachelle Chong California Public Utilities Commission Smart Grid Symposium April 21, 2009 1
  • 2. Energy Independence and Security Act of 2007 Title XIII – Smart Grid, SEC. 1301. Statement of Policy on Modernization of Electricity Grid: It is the policy of the United States to support the modernization of the Nation's electricity transmission and distribution system to maintain a reliable and secure electricity infrastructure that can meet future demand growth and to achieve each of the following, which together characterize a Smart Grid:…(see Appendix) 2
  • 3. American Recovery and Reinvestment Act of 2009 $4.5 Billion – Smart Grid Research, Development, Demonstration, and Deployment For expenses necessary for electricity delivery and energy reliability activities to modernize the electric grid, including: demand responsive equipment, enhance security and reliability of the energy infrastructure, energy storage research, development, demonstration and deployment, and facilitate recovery from disruptions to the energy supply, and for implementation of programs authorized under title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et seq.) 3
  • 4. Smart Grid Funding Breakdown Smart Grid Investment Grants $3.375 Billion Other Smart Grid Initiatives Demonstrations $615 Million Smart Grid ($4.5 Billion) Worker Training Grid ($100 Million) Interoperability Green Jobs ($10 Million) Program DOE Transmission & Demand Program ($80 Million) 4 Source: EPRI
  • 5. Smart Grid Investment Grant Program Overview Competitive, merit-based solicitation; more than 1,500 applications expected Covers electric transmission, distribution, and customer-side applications Deployment of Phasor Measurement Units (PMU) within the transmission system is a specific program goal Eligibility and Funding Anticipated Schedule Activity Date • $3.375 billion available Notice of Intent April 16, 2009 • Funding provided for up to 50% of qualified investments requested by (NOI) grant applicants Comments Due May 6, 2009 • Applications expected from eligible entities such as electric utilities, load Funding Opportunity [July 17], 2009 serving entities, appliance and Announcement (FOA) equipment manufacturers, and IT vendors Application Due Dates [July 29, 2009; • Expected project awards range from Dec. 2, 2009; $500,000 to $20,000,000 ($100,000 Mar. 31, 2010] to $5,000,000 for PMU projects) All Funds Obligated September 2010 5 Source: DOE
  • 6. Smart Grid Demonstrations Overview Competitive, merit-based solicitation; several hundred proposals expected Covers electric transmission, distribution, and customer-side projects at a scale that can be replicated across the country Scope includes (1) Regional smart grid demonstrations, (2) Utility-scale energy storage demonstrations, (3) Grid monitoring demonstrations Eligibility and Funding Anticipated Schedule • $615 million available Activity Date • Applicant’s cost share must be at Draft Funding Opportunity April 16, 2009 least 50% of the total allowable costs Notice (FOA) • Expect applications from all types of organizations including state and Comments Due May 6, 2009 local agencies, universities, electric utilities, equipment manufacturers, Funding Opportunity TBD and project developers Announcement (FOA) • Expect to fund: 8-12 regional demonstrations, 12-19 energy Application Due Dates TBD storage projects, and 4-5 grid monitoring projects; $5m to $60m All Funds Obligated September 2010 per project 6 Source: DOE
  • 7. Five Technologies to Look for in Smart Grid Projects • Integrated communications, connecting components to open architecture for real-time information and control, allowing every part of the grid to both ‘talk’ and ‘listen’ • Sensing and measurement technologies, to support faster and more accurate response such as remote monitoring, time-of-use pricing and demand-side management • Advanced components, to apply the latest research in superconductivity, storage, power electronics and diagnostics • Advanced control methods, to monitor essential components, enabling rapid diagnosis and precise solutions appropriate to any event • Improved interfaces and decision support, to amplify human decision-making, transforming grid operators and managers quite literally into visionaries when it come to seeing into their systems 7 Source: DOE
  • 9. Statement of Policy on Modernization of Electricity Grid 1. Increased use of digital information and controls technology to improve reliability, security, and efficiency of the electric grid. 2. Dynamic optimization of grid operations and resources, with full cyber-security. 3. Deployment and integration of distributed resources and generation, including renewable resources. 4. Development and incorporation of demand response, demand-side resources, and energy-efficiency resources. 5. 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. 9
  • 10. Statement of Policy on Modernization of Electricity Grid. (Cont.) 6. Integration of `smart' appliances and consumer devices. 7. Deployment and integration of advanced electricity storage and peak-shaving technologies, including plug- in electric and hybrid electric vehicles, and thermal- storage air conditioning. 8. Provision to consumers of timely information and control options. 9. Development of standards for communication and interoperability of appliances and equipment connected to the electric grid, including the infrastructure serving the grid. 10.Identification and lowering of unreasonable or unnecessary barriers to adoption of smart grid technologies, practices, and services. 10