Your SlideShare is downloading. ×
ENERGYBuilding Support for theNext Wave of Smart Grid ProjectsINFOCAST WebinarMay 5, 2011Navigant Reference: 830282©2011 N...
Building Support for the Next Wave of Smart Grid » IntroductionOur speakers today will discuss strategic issues associated...
Building Support for the Next Wave of Smart GridAgenda                                     1                   The First W...
Building Support for the Next Wave of Smart GridAgenda                                     1                   The First W...
The First Wave » Time Frame & CharacteristicsWe are entering the “Second Wave” of smart grid deployments wheredeeper under...
The First Wave » Areas of Smart Grid DeploymentThe first wave of smart grid, estimated to continue through 2015, hasbegun ...
The First Wave » DOE ARRA Smart Grid ProgramsDOE’s ARRA Smart Grid Investment Grant and Demonstrationprograms have been a ...
The First Wave » AMI Projects Dominate Smart Grid InvestmentsApproximately 75% of the smart meter deployments through 2013...
The First Wave » Utilities Continue to Realize DA BenefitsThe first wave of Distribution Automation (DA) initiatives have ...
The First Wave » Pilot ProjectsEarly AMI pilot projects across the US have largely focused on dynamicpricing and direct lo...
The First Wave » Key OutcomesThe results of early projects will be mixed as the business cases andcustomer involvement are...
Building Support for the Next Wave of Smart GridAgenda                                     1                   The First W...
The Next Waves » Comparison Factors for Smart Grid WavesSeveral factors will be different between the first wave of smart ...
The Next Waves » Focus on Distribution Systems Smart distribution systems can make a greater contribution to moving us tow...
The Next Waves » Capture Complex Smart Grid BenefitsSmart grid benefits will come from areas that have been difficult tode...
The Next Waves » Increase Smart Grid FunctionalityBuild on the sensing and reporting technology of the first wave, andincr...
The Next Waves » Platform for Consumers and New Energy ProductsFacilitate close communications with consumers and their ap...
The Next Waves » Integrate Distributed Energy ResourcesSimplify integration of distributed energy resources, and use them ...
The Next Waves » Measure PerformanceApply metrics that track the impacts of smart grid on grid operationsand performance, ...
Building Support for the Next Wave of Smart GridAgenda                                     1                   The First W...
Regulatory Issues » Innovations Create Regulatory ChallengesEvery decade, the electric power industry has introduced newin...
Regulatory Issues » Regulatory StrategyThere are four elements of regulatory strategy to be considered forsmart grid progr...
Regulatory Issues » Corporate Structure and the Regulatory StrategyThe regulatory strategies of distribution companies wil...
Regulatory Issues » PrudencyInvestment prudency will remain a critical review item for regulators.                        ...
Regulatory Issues » Cost AllocationAllocating costs must properly reflect the accrual of benefits todifferent classes of c...
Regulatory Issues » Cost RecoveryCost recovery strategy is integral to the utility’s overall smart gridstrategy.          ...
Regulatory Issues » Pricing DesignPricing design must carefully balance the enhanced functionality of thesmart grid, with ...
Regulatory Issues » Strategy Success FactorsWinning regulatory strategies for smart grid will rely on traditionalsuccess f...
Building Support for the Next Wave of Smart GridAgenda                                     1                   The First W...
Smart Grid Cost-Benefit Tools » OverviewBusiness cases for the next wave of projects will be more rigorous, andrequire mor...
Smart Grid Cost-Benefit Tools » Framework and Tools ExamplesThe three tools discussed here are based on a framework develo...
Smart Grid Cost-Benefit Tools » FrameworkDOE’s Smart Grid Benefits Framework is based on the idea that smartgrid assets an...
Smart Grid Cost-Benefit Tools » 1 – SGCT Inputs and Outputs The SGCT is an Excel based tool that uses a variety of data in...
Smart Grid Cost-Benefit Tools » 2 – Residential Technology Benefit/Cost Test ToolCalculates the benefits, costs and the fi...
Smart Grid Cost-Benefit Tools » 2 – Residential Technology Benefit/Cost Test ToolOutputs include total benefits and costs ...
Smart Grid Cost-Benefit Tools » 3 – Regional Cost-Benefit Assessment ModelSix refined benefits categories—from generation ...
Building Support For The Next Wave Of Smart Grid Projects   05 05 2011
Building Support For The Next Wave Of Smart Grid Projects   05 05 2011
Building Support For The Next Wave Of Smart Grid Projects   05 05 2011
Upcoming SlideShare
Loading in...5
×

Building Support For The Next Wave Of Smart Grid Projects 05 05 2011

698

Published on

A discussion of how the next wave of smart grid projects will be different from what we have seen so far.

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
698
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
25
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Building Support For The Next Wave Of Smart Grid Projects 05 05 2011"

  1. 1. ENERGYBuilding Support for theNext Wave of Smart Grid ProjectsINFOCAST WebinarMay 5, 2011Navigant Reference: 830282©2011 Navigant Consulting, Inc.D I S P U T E S & I N V E S T I G AT I O N S • E C O N O M I C S • F I N A N C I A L A D V I S O RY • M A N A G E M E N T C O N S U LT I N G
  2. 2. Building Support for the Next Wave of Smart Grid » IntroductionOur speakers today will discuss strategic issues associated with smartgrid deployment and suggested approaches for future projects.• David Walls, Managing Director• Forrest Small, Director• Ralph Zarumba, Director• Erik Gilbert, Associate DirectorBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 1 ENERGY
  3. 3. Building Support for the Next Wave of Smart GridAgenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit ToolsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 2 ENERGY
  4. 4. Building Support for the Next Wave of Smart GridAgenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit ToolsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 3 ENERGY
  5. 5. The First Wave » Time Frame & CharacteristicsWe are entering the “Second Wave” of smart grid deployments wheredeeper understanding of the business case will become critical. Future Waves “Addressing Strategic Needs” Second Wave “Understanding the Business Case” • Targeted deployment First Wave “Laying the Foundation • Scaling up deployment • Gradual build-out and Learning” • More rigorous business • Continuous cases improvement • Cost recovery • Demonstrating valueCumulative Rate of Investment • Pilot programs and demos • Government incentives and subsidies • Regulatory mandates 2005 2015 2020Building Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 4 ENERGY
  6. 6. The First Wave » Areas of Smart Grid DeploymentThe first wave of smart grid, estimated to continue through 2015, hasbegun to bring intelligence to the grid across all segments. Areas of Smart Grid Technology Deployment in the First Wave Advance Distributed Customer Distribution Transmission Metering Energy Systems Automation Management Infrastructure Resources Customer Customer Customer Customer Customer Systems Systems Systems Systems Systems • Displays • Smart meters • Switches • SynchroPhasor • Distributed • Portals • Data generation • Equipment measurement • Energy management monitoring • Wide area • Energy storage management • Back office • Voltage and monitoring and • PEVs visualization • Appliances integration VAR controlBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 5 ENERGY
  7. 7. The First Wave » DOE ARRA Smart Grid ProgramsDOE’s ARRA Smart Grid Investment Grant and Demonstrationprograms have been a critical catalyst for the first wave of projects. American Recovery and Reinvestment Act Smart Grid Programs Smart Grid Investment Grant Program Smart Grid Demonstration Program • $3.4 billion in federal funding • Regional Smart Grid Demonstrations • $8.2 billion of total project value • 16 projects selected • 99 projects selected • $435 million in federal funding • Project categories: • $877 million of total project value • Customer Systems • Energy Storage Demonstrations • Advanced Metering • 16 projects selected Infrastructure • $185 million in federal funding • Distribution Systems • $770 million of total project value • Transmission Systems • Equipment Manufacturing • Integrated and Crosscutting There are also ten Renewable and Distributed Systems Integration (RDSI) and High Temperature Superconductor projects.Building Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 6 ENERGY
  8. 8. The First Wave » AMI Projects Dominate Smart Grid InvestmentsApproximately 75% of the smart meter deployments through 2013 willoccur in California, Texas, and through DOE programs.• Automated meter reading and operational functionality forecasted to reduce labor costs• Demand response programs intended to reduce electricity costs and defer Capex upgrades AMI Smart Meters1 (M) AMI Business Case2 (M) $700 Societal Energy $600 8 Capacity $500 16 Capex Deferral 3.2 $400 $300 $200 Operations 12 $100 DOE Programs California $- Texas (non SGIG) Others Cost Benefit 1.Navigant estimate of electric smart meters installed and funded 2 Illustrative example of typical AMI Business Case for an Investor through 2015 Owned Utility operating in an organized marketBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 7 ENERGY
  9. 9. The First Wave » Utilities Continue to Realize DA BenefitsThe first wave of Distribution Automation (DA) initiatives have beenperformed as incremental investments and pilot projects.• Distribution reliability improvements have been demonstrated on worst performing circuits• Line loss reductions have been demonstrated in voltage optimization pilots, but results are still estimated or calculated• DA functionality advancements and communication technology cost reductions have improved the business case Circuits with Auto Switches Outage Minutes on Circuits 60 200 150 40 100 Illustrative 20 50 0 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5Building Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 8 ENERGY
  10. 10. The First Wave » Pilot ProjectsEarly AMI pilot projects across the US have largely focused on dynamicpricing and direct load control.• Typical deployments of less than 10,000 meters• Dynamic pricing pilots have captured 5-20% of the customers• Direct load control and demand response has focused on commercial and industrial• Simple business cases – Focus on operational savings – Demonstration of load reduction potential – Structure of the utility matters• Results should be used carefully, as they have not been based on rigorous sampling or approachesBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 9 ENERGY
  11. 11. The First Wave » Key OutcomesThe results of early projects will be mixed as the business cases andcustomer involvement are uncertain. • Market adoption of pricing programs is low • Customer benefits are difficult to capture • Business case is difficult to make without a mandate or subsidyThe next wave of projects will focus more on utility side benefits and business cases, and willclarify the relationship between the utility, the customer and the smart grid.Building Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 10 ENERGY
  12. 12. Building Support for the Next Wave of Smart GridAgenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit ToolsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 11 ENERGY
  13. 13. The Next Waves » Comparison Factors for Smart Grid WavesSeveral factors will be different between the first wave of smart gridand the next. Comparison Factor First Wave Next Wave Smart grid systems AMI and metering Distribution systems Benefits One-dimensional, static Complex, evergreen Lower – Functionality Higher – control sensing/monitoring Distributed energy Passive awareness Active integration resources Rudimentary, NPV, black Business case tools Complex, EV, transparent box Performance Relevant performance Limited and crude measurement metricsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 12 ENERGY
  14. 14. The Next Waves » Focus on Distribution Systems Smart distribution systems can make a greater contribution to moving us toward the modern grid than AMI and smart metering. AMI and Smart Distribution Support MGI Smart Grid Functionality1 Modernizing the grid will lead us Metering Systems Characteristics Real-time load measurement and toward seven key outcomes management • Self-heals Customer electricity use optimization • Motivates and Includes the Automated voltage and VAR consumer control • Resists attack Adaptive protection • Provides power quality for 21st Automated feeder and line century needs switching Automated islanding and • Accommodates all generation and reconnection storage options Real-time load transfer • Enables markets Diagnosis & Notification of • Optimizes assets and operates Equipment Condition efficiently Enhanced fault protection Source: A Systems View of the Modern Grid, Modern Grid Initiative (MGI), National Energy Dynamic capability rating Technology Laboratory, January 2007.1 Functionality as specified in the DOE’s Smart Grid Benefits Yes NoFramework Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 13 ENERGY
  15. 15. The Next Waves » Capture Complex Smart Grid BenefitsSmart grid benefits will come from areas that have been difficult todemonstrate and monetize in the past. Smart Grid Benefits Type Description Examples Benefits related to utility or consumer costs that • Reduced T&D operations costs Easier to Financial can be expressed directly in financial terms. • Lower electricity bills for customers monetize Benefits related to power interruptions or power • Shorter power outages Reliability quality, but that may not be easily expressed in • Less severe voltage sags financial terms. • Reduced CO2 emissions Environmental Benefits related to air polluting emissions. • Reduced SOx and NOx Benefits related to maintaining a secure energy • Reduced oil consumption Harder to Security supply and infrastructure. • Fewer, or smaller blackouts monetizeBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 14 ENERGY
  16. 16. The Next Waves » Increase Smart Grid FunctionalityBuild on the sensing and reporting technology of the first wave, andincrease functionality for control and automation.• Leverage the sensors and Automation communications networks Remote installed during the first Control wave Sensing and Reporting• Use the technologies to develop “apps” that enable operational efficiency, • Increase speed to impact resilience, and optimization • Standardize processes • Reduce costBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 15 ENERGY
  17. 17. The Next Waves » Platform for Consumers and New Energy ProductsFacilitate close communications with consumers and their appliances,and become a platform for new energy products and services. Support Direct Consumer Engagement • Information on demand • Customer control and engagement • Collaborative and personalized interaction channels Integrate Consumer Energy Technologies • Smart appliances and equipment • Energy management systems • Distributed energy resources Enable New Energy Products and Services • Energy service bundles • Customized electric service levels • Retail energy exchanges Source: “A Day in the Life of the Future Customer”, Customer Care Research Consortium, Navigant analysis.Building Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 16 ENERGY
  18. 18. The Next Waves » Integrate Distributed Energy ResourcesSimplify integration of distributed energy resources, and use them tocreate smart grid resources. AMI facilitates communications between utility information systems and PV inverters Information Flow Inverter Power Electrical Utility Smart Service AMI Information Control Meter Panel Systems Operator Interface Power Flow Load Utility Energy Storage Circuits DA Distribution (ES) System DA helps manage Demand DR curtails small amounts ES provides input to circuit voltage and Response of customer load for short inverter to compensate for accommodate changing (DR) periods of time (<2 hrs) PV variability (<8 hrs) power flow PV system Smart grid technologies Functionality Electrical system componentsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 17 ENERGY
  19. 19. The Next Waves » Measure PerformanceApply metrics that track the impacts of smart grid on grid operationsand performance, and use the results to guide ongoing deployment. Performance metrics can be used to demonstrate smart grid impact Smart Grid Strategy • Operational efficiency • Reliability improvement • Customer satisfaction Lessons Systems • Customer demand profiles Learned Deployment • Capital investment deferral • Asset utilization • Electricity cost savings Performance • Fuel savings Measurement • Generation mix • CO2 reductionsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 18 ENERGY
  20. 20. Building Support for the Next Wave of Smart GridAgenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit ToolsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 19 ENERGY
  21. 21. Regulatory Issues » Innovations Create Regulatory ChallengesEvery decade, the electric power industry has introduced newinnovations that have created new regulatory challenges. 1960s 1970s 1980s 1990s 2000s Large Nuclear Energy Competition The Smart Centralized Power Efficiency in Wholesale Grid Fossil Stations and Retail Stations MarketsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 20 ENERGY
  22. 22. Regulatory Issues » Regulatory StrategyThere are four elements of regulatory strategy to be considered forsmart grid programs. Prudency Cost Recovery Regulatory Strategy Pricing & Program Cost Allocation DesignBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 21 ENERGY
  23. 23. Regulatory Issues » Corporate Structure and the Regulatory StrategyThe regulatory strategies of distribution companies will differ fromthose of vertically integrated utilities. Distribution Company Vertically Integrated Utility • A Distribution Utility offering • What are the different approaches to “wires services” faces different quantifying the benefits of smart challenges when implementing the grid for a vertically integrated utility smart grid than a Vertically versus a wires company Integrated Utility. • Should a difference exist for the • Their charter often limits them to quantification of the Cost / Benefit “Wires Issues” Analysis? • What criteria should a Distribution • Is it valid to account for potential Utility use in performing the Cost / benefits associated with customers Benefit Analysis – should it who are procuring from include the generation benefits? competitive suppliers? • What if a customer procuring competitive power does not want to participate in a smart grid information program?Building Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 22 ENERGY
  24. 24. Regulatory Issues » PrudencyInvestment prudency will remain a critical review item for regulators. • Is the proposed program design reasonable and will it withstandInitial Decision scrutiny in a post-implementation review?Making Process • The implementation of smart grid typically triggers early Treatment of retirement of infrastructure – will the utility face disallowance risk? Existing Infrastructure • Is the utility ready to implement the “soft-side” of the smart grid Customer including pricing design and customer education? Implementation IssuesBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 23 ENERGY
  25. 25. Regulatory Issues » Cost AllocationAllocating costs must properly reflect the accrual of benefits todifferent classes of customers, and the system as a whole. • The value of benefits is perceived to generally follow the customerWho Benefits from groups who participate directly in smart grid programs the Smart Grid? • Although System Benefits provides significant value to all, System-Wide customers arguments are made to re-allocate or disallow the costs Benefits • Most approaches to cost allocation are based upon traditional approaches (e.g., Allocated Cost of Service) and ignore how Existing Cost Allocation consumers benefit from the smart grid ApproachesBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 24 ENERGY
  26. 26. Regulatory Issues » Cost RecoveryCost recovery strategy is integral to the utility’s overall smart gridstrategy. • A large smart grid implementation may trigger a rate case Will a Rate Case opening up every issue in the utility revenue requirement Triggered? • Many utilities have chosen to isolate smart grid cost recoveryIsolated Smart Grid Cost Recovery • The timing of the cost recovery – current or deferred Timing Issues Building Support for the Next Wave of Smart Grid Projects, May 5, 2011 ©2011 Navigant Consulting, Inc. 25 ENERGY
  27. 27. Regulatory Issues » Pricing DesignPricing design must carefully balance the enhanced functionality of thesmart grid, with the core interests of customers. • How were the existing tariffs designed and are they appropriate Existing for the smart grid? Tariffs • How will you establish Dynamic Pricing and wide-spread TOU?Dynamic Pricing / • Is it feasible for your customer base? TOU • Any new pricing design or product offering needs to beAdverse Customer implemented in a manner that targets receptive customers ReactionsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 26 ENERGY
  28. 28. Regulatory Issues » Strategy Success FactorsWinning regulatory strategies for smart grid will rely on traditionalsuccess factors. Don’t Over-Promise •The death knell of many good ideas occurs when reality and expectations collide Provide Customers What They Want – Not What You Think They Should Have •Most customers don’t want to think about electricity – they just want it there when they need it! Maintain Price Stability •People like utilities that are boring -- significant price increases are tantamount to painting a target on your back Listen to Markets and Behave Appropriately •Wholesale energy and ancillary service prices are volatile •Smart grid strategy should account for energy price •Market designs change Design programs so that no customer groups feel like they are being treated unfairly •Cost allocation really does matterBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 27 ENERGY
  29. 29. Building Support for the Next Wave of Smart GridAgenda 1 The First Wave 2 The Next Waves 3 Regulatory Issues 4 Smart Grid Cost-Benefit ToolsBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 28 ENERGY
  30. 30. Smart Grid Cost-Benefit Tools » OverviewBusiness cases for the next wave of projects will be more rigorous, andrequire more capable tools.• Flexible Tools Will Be Required ⁻ Regulatory structures, mandates and requirements vary widely ⁻ Every utility has different characteristics, approaches, potential avoided costs, etc. ⁻ Every project has unique aspects ⁻ Some costs and benefits are difficult to quantify in dollars (e.g., reliability, GHG emissions)• Key Issues Must Be Addressed ⁻ Defining the “smart grid” ⁻ Establishing a deployment timeline and technology/function evolution path ⁻ Establishing a baseline approach ⁻ Developing an approach to stakeholder benefits and costs accrual ⁻ Applying appropriate time value to benefits and costs• Proper Methodology and Tools Can Clarify and Simplify the Business Case ⁻ Help organize thinking about difficult-to-quantify benefits ⁻ Help plan and prepare for measurement & verification (M&V)Building Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 29 ENERGY
  31. 31. Smart Grid Cost-Benefit Tools » Framework and Tools ExamplesThe three tools discussed here are based on a framework developed byDOE, EPRI and Navigant. 1. Smart Grid Computational Tool (SGCT) – Focuses on utility project investment analyses – Can model a wide range of smart grid project types 2. Residential Technology Benefit/Cost Test Tool – Focuses on residential technology (e.g., HAN) behind the meter – Specialized for ROI analysis – Provides standardized cost tests (e.g., TRC test, Utility Test, etc.) 3. Regional Cost-Benefit Assessment Model – Extends the DOE/EPRI Smart Grid Methodology – Examines Regional Investment ScenariosBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 30 ENERGY
  32. 32. Smart Grid Cost-Benefit Tools » FrameworkDOE’s Smart Grid Benefits Framework is based on the idea that smartgrid assets and functionality lead to benefits. What are smart grid What does the How does it What “goodness” What is the technologies? smart grid do? do that? results? goodness worth? Monetary Assets Functions Mechanisms Benefits Value Benefits are assessed in the following categories: •Economic •Reliability •Environmental, and •SecurityBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 31 ENERGY
  33. 33. Smart Grid Cost-Benefit Tools » 1 – SGCT Inputs and Outputs The SGCT is an Excel based tool that uses a variety of data inputs and assumptions, and provides standard outputs. Inputs Examples Outputs Smart grid project AMI/Smart Meters, Assets, Functions, Automated Feeder and Line Switching Monetary Value and Mechanisms of up to 22 Data that Annual Generation Benefits corresponds to Costs, Number of Impact Metrics Tamper Detections All Output Data derived from Value of Service, is calculated NPV Analysis estimates and Price of Capacity at over of Project assumptions Peak, Value of CO2 SGCT multiple Discount Rate, years Cost Parameters Inflation Rate, and Escalation Population Factors Growth Sensitivity Analysis of High and Low case Project Sensitivity Factors Value of CO2Building Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 32 ENERGY
  34. 34. Smart Grid Cost-Benefit Tools » 2 – Residential Technology Benefit/Cost Test ToolCalculates the benefits, costs and the five standard benefit/cost ratiosfor demand-side smart-grid technologies. Input, output & model structure are easily accessed via graphical user interfaceBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 33 ENERGY
  35. 35. Smart Grid Cost-Benefit Tools » 2 – Residential Technology Benefit/Cost Test ToolOutputs include total benefits and costs by category as well as fivestandard benefit/cost test ratios.Building Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 34 ENERGY
  36. 36. Smart Grid Cost-Benefit Tools » 3 – Regional Cost-Benefit Assessment ModelSix refined benefits categories—from generation to consumption—eachcomprises a group of functions. Automated Wide Area Voltage & 6 Benefit Categories VAR Control Dynamic Monitoring 30 Functions Capacity & Visual- Rating ization Improved Power Flow Conductor Control Line Efficiency Infra- Phase structure Balancing T&D Life Optimization Extension Utility Grid Operational Reliability Efficiency Smart GridBuilding Support for the Next Wave of Smart Grid Projects, May 5, 2011©2011 Navigant Consulting, Inc. 35 ENERGY

×