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The “Smart Grid”<br />What is it? <br />What can it do for utilities and their customers? <br />What are the big issues?<b...
“Smart Grid” refers to a wide range of components and programs across the system<br />www.ShepherdAdvisors.com<br />“Smart...
Why are you supposed to call the utility when your power goes out?<br />www.ShepherdAdvisors.com<br /><ul><li>A) To ask if...
B) To ask how long it until the power is back on.
C) To tell them the power is out because they probably do not know.</li></li></ul><li>“Distribution automation” involves d...
Smart Meters are like their traditional counterparts except they are digital, programmable, and networked<br />www.Shepher...
Usage info & appliance/light scheduling may be provided using in home displays or web/tv based home energy portals<br />ww...
“Controlling your lights, AC & appliances?  Yep,  there’s an app for that”<br />www.ShepherdAdvisors.com<br />Lutron Home ...
www.ShepherdAdvisors.com<br />Survey of utilities:   Why do you want to do this and what is holding you back?<br />An info...
Already aggressively pursuing smart grid pilots and deployments
Cautiously pursuing limited pilot programs
Waiting for now
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July 2011 - Michigan Energy Forum - Steve Craig

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Join Michigan Energy Forum in their discussion of Smart Grids. The panel will discuss and answer the following questions. What is the "Smart Grid" and what does it mean for residential and business utility customers over the next 10 years? How might it impact the cost of electricity, and the ability of utilities to keep the lights on during storms? Come and hear about what is happening in Michigan, and how it might provide economic development opportunities here!

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  • Transcript of "July 2011 - Michigan Energy Forum - Steve Craig"

    1. 1. The “Smart Grid”<br />What is it? <br />What can it do for utilities and their customers? <br />What are the big issues?<br />www.ShepherdAdvisors.com<br />
    2. 2. “Smart Grid” refers to a wide range of components and programs across the system<br />www.ShepherdAdvisors.com<br />“Smart Grid” allows for better monitoring and management from generation, transmission , and distribution, and consumption.<br />Transmission<br />Distribution<br />Generation<br />Today we will focus primarily on Distribution Automation and Customer Programs <br />
    3. 3. Why are you supposed to call the utility when your power goes out?<br />www.ShepherdAdvisors.com<br /><ul><li>A) To ask if its the neighborhood or just my house?
    4. 4. B) To ask how long it until the power is back on.
    5. 5. C) To tell them the power is out because they probably do not know.</li></li></ul><li>“Distribution automation” involves deploying more sensors, communication devices, and switches to allow utilities to monitor and control the flow of electricity <br />www.ShepherdAdvisors.com<br />Screen shot from video at Duke Energy website explaining <br />how distribution automation works<br />
    6. 6. Smart Meters are like their traditional counterparts except they are digital, programmable, and networked<br />www.ShepherdAdvisors.com<br />Traditional Meter “Smart Meter” <br />“Smart Meters” can provide consumers and the utility hourly or real time data <br />
    7. 7. Usage info & appliance/light scheduling may be provided using in home displays or web/tv based home energy portals<br />www.ShepherdAdvisors.com<br />
    8. 8. “Controlling your lights, AC & appliances? Yep, there’s an app for that”<br />www.ShepherdAdvisors.com<br />Lutron Home Control + is one example of a cell phone <br />application already commercially available<br />Iphone screens shots from their advertising. Copyright – Lutron Electronics Co, Inc.<br />
    9. 9. www.ShepherdAdvisors.com<br />Survey of utilities: Why do you want to do this and what is holding you back?<br />An informal qualitative survey of Midwestern utilities representing a range of experience with smart grid projects, ownership structures, and sizes<br /><ul><li>Experience with smart grid projects:
    10. 10. Already aggressively pursuing smart grid pilots and deployments
    11. 11. Cautiously pursuing limited pilot programs
    12. 12. Waiting for now
    13. 13. Size:
    14. 14. Large multi-state
    15. 15. Large single state
    16. 16. Small and medium sized municipal utilities
    17. 17. Ownership
    18. 18. Investor owned utilities
    19. 19. Municipal government utilities </li></li></ul><li>Survey Findings: Utilities’ Strategic Benefits & Concerns<br />www.ShepherdAdvisors.com<br />Benefits<br /><ul><li>Operational Improvements & Cost Reductions
    20. 20. Peak Load & Demand Management
    21. 21. Reliability Improvements
    22. 22. (Customer Engagement & Relationship)
    23. 23. (Intermittent Source and Storage Integration )</li></ul>Concerns<br /><ul><li>Want to avoid “Stranded Technology Investments”
    24. 24. Interoperability & Standards
    25. 25. New technologies
    26. 26. Cost Impacts & Financing
    27. 27. Customer indifference</li></li></ul><li>Smart Meters and Distribution Automation Provide Reliability, Operational, Customer Service Benefits <br />www.ShepherdAdvisors.com<br /><ul><li>Improved Meter Reading & Billing
    28. 28. Precludes need to manual meter reading
    29. 29. Eliminates need for “Key Rooms” & appointment setting
    30. 30. Reduces number of “estimated readings”
    31. 31. Streamlined account openning and closing
    32. 32. Outage Management
    33. 33. Detection and analysis
    34. 34. Power rerouting
    35. 35. Outage prevention
    36. 36. Improved Trouble Call Service
    37. 37. Verifying power to the meter can reduce unneeded service calls</li></li></ul><li>The Smart Grid will involve significant operational and management challenges<br />www.ShepherdAdvisors.com<br /><ul><li>IT Issues
    38. 38. Data management : At least 720 times more data
    39. 39. Systems integration
    40. 40. Technology choices
    41. 41. Wireline or wireless communications
    42. 42. Public or proprietary
    43. 43. Bandwidth & backhaul frequency
    44. 44. Future requirements & ever evolving technology
    45. 45. Business Process Changes
    46. 46. Field crew & distribution Operations
    47. 47. Call center
    48. 48. Billing statements
    49. 49. Security
    50. 50. Wireless and network
    51. 51. Privacy</li></li></ul><li>Detailed meter data can facilitate new customer offerings, if they are interested<br />www.ShepherdAdvisors.com<br />Customer Education<br /><ul><li>Detailed usage information
    52. 52. Appliance & plug level energy education
    53. 53. Customer comparisons, energy saving competitions and
    54. 54. Peer to peer tip sharing using Facebook and other social media</li></ul>Customer Control<br /><ul><li>Smart appliances
    55. 55. Addressable outlets
    56. 56. Online or mobile control </li></ul>Demand Management <br />(Curtailing or shifting demand during Peak Load Events)<br /><ul><li>Voluntary, permission based ability for the utility to adjust thermostats & AC units, electric vehicle charging stations, water heaters, and other appliances
    57. 57. Time of Use pricing </li></li></ul><li>Thank You. Please feel free to contact us with any questions.<br />Steve Craig<br />206.293.9321<br />734.975.0333<br />steve@shepherdadvisors.com<br />Sherpherdadvisors.com<br />Shepherd Advisors provides strategic market research and management consulting to utilities, private firms, governments, and non-profits to help them better understand their customers and markets and the options and implications for improving their business.<br />www.ShepherdAdvisors.com<br />
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