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Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
Smart Grid Sector Study
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Smart Grid Sector Study

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Grad school PowerPoint presentation on policies and case study of "smart grid" technology; my slides begin at #19.

Grad school PowerPoint presentation on policies and case study of "smart grid" technology; my slides begin at #19.

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  • 1. The Smart Grid: a business sector study and economic development opportunities for Michigan
  • 2. New energy economy plays a critical role in a new round economic development • Substitution effect to cope with energy crisis and preserve human living environment • Pull effect to attract a large investment and create numerous jobs • Effect of technological progress to further technology level of energy supply and provide a new platform for economic development UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 2
  • 3. Smart grid: an enabler of energy economy Grid: an enormous, complex network of transmission and distribution lines and devices along which electricity, generated at large, central fossil fuel plants, hydroelectric dams, and nuclear facilities, travels many hundreds of miles. Smart grid: Wikipedia: delivering s electricity from suppliers to consumers using two-way digital technology to control appliances at consumer’s homes to save energy, reduce cost and increase reliability and transparency. GridWise Alliance: a more complex and sophisticated infrastructure that will continue to power our digital economy but in a cleaner, more reliable, and more affordable way. The Smart Grid: An introduction: using digital technology to improve reliability, security , and efficiency of the electric system: from large generation, through the delivery systems to electricity consumers and a growing number of distributed generation and storage resources. Smart grid solutions: an energy internet: marrying information technology with our current electrical infrastructure, helping us support the energy needs of our 21st century society. In essence, an energy internet, delivering real-time energy information and knowledge, empowering smarter energy choices. UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 3
  • 4. Principal characteristics • Enable active participation by consumers • Accommodate all generation and storage options • Enable new products, services, and markets • Provide power quality for the digital economy • Optimize asset utilization and operate efficiently • Anticipate & respond to system disturbances (self-heal) • Operate resiliently against attack and natural disaster UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 4
  • 5. Smart grid is more • Reliable • Secure • Economic • Efficient • Environmentally friendly • safe UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 5
  • 6. Smart Grid Technology Research, Development and Demonstration 6 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 7. Smart Grid Functions 7
  • 8. Smart Grid Technologies and their applicability • Enables active participation by consumers smart meters advanced metering infrastructure existing automatic meter reading technology programmable communicating thermostat smart home software home automation network interfaced with utility smart grid system building/ facility energy management system interfaced with market pricing signal/ utility smart grid system UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 8
  • 9. • Accommodates all generation and storage option virtual utilities (integrated diesel generator with load management plug-in hybrid electric vehicles solar/ wind generation distributed energy resource management system energy storage devices/ systems UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 9
  • 10. • Enables new products, services, and markets real-time/ time-of-use pricing options design and research new market system (applying intelligent network feedbacks and consumer responses) demand response/ load management program appliances interface with utility smart grid system motor and drives interface with utility smart grid system UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 10
  • 11. • Provides power quality for the range of needs in a digital economy smart sensors intelligent electronic devices smart switches capable of communications smart reclosers with communications capability intelligent assets with built-in communications (smart transformer, breakers) smart feeder automation interconnection protocols system interoperability adoption project UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 11
  • 12. • Optimizes asset utilization and operating efficiency condition-based monitoring/ maintenance computerized maintenance management advanced asset management software advanced outage avoidance and management dynamic line rating to improving system reliability transformer load management grid simulator and modeler flexible power flow control process re-engineering using intelligent system UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 12
  • 13. • Addresses and responds to system distribution in a self-healing manner integrated outage and work management system outage damage assessment for restoration distribution state estimator fault location and analysis, management wide area monitoring system substation automation station equipment condition and reliability monitoring feeder and distribution automation smart feeder automation automated adaptive relaying feeder fault detection and diagnostics voltage regulator with communication capability capacitor control with communication capability UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 13
  • 14. • Operates resiliently against physical and cyber attacks and natural disasters cyber-security and data integrity weather prediction and storm damage forecast and outage management system UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 14
  • 15. Brief history • Alternating current power grid evolved after 1896 • Automatic metering reading in 1980s • Advanced metering infrastructure, prototype sensor and then smart meters in 1990s • In 2000, Telegestore Project in Italy and wide area measurement system • In the US, Austin, Texas and Boulder, Colorado UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 15
  • 16. Worldwide smart grid • Australia Committing to investing heavily • Canada Energy Conservation Responsibility Act • China wide area monitoring system • UK Green Recovery Plan • Republic of Korea fully integrated smart grid system UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 16
  • 17. usa • Electricity Advisory Committee • GridWise Alliance • Electric Power Research Institute • GridWise Architecture Council • Galvin Electricity Initiative • Smart Grid Policy Center • Electric Drive Transportation Association • Federal Energy Regulatory Commission and the National Association of Regulatory Utility Commissioners • North American Electric Reliability Corporation • DOE and the U.S. Environment Protection Agency • American Public Power Association • Edison Electric Institute • Center for American Progress UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 17
  • 18. The State of Michigan • Michigan DELEG: workforce training in smart grid technology • Whirlpool Corp. : smart appliances • DTE: smart meter technology • GE: new research center and A123 battery manufacturing facilities • Michigan Clean Renewable and Efficient Energy Act UP6550 | Robert Moreo + Yuchen Mao | Wayne State University 18
  • 19. Case Study: DTE Energy  Provides gas and electric utility services to 2.7 million Michigan homes and businesses, and energy-related services to businesses and industries nationwide.  Business operations in 26 states  Headquarters in Detroit  $532M earnings on $8B 2009 revenue  10,200 employees 19 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 20. Case Study: DTE Energy  Vincent G. Dow – VP Distribution Operations  Oversees electrical distribution system, including distribution and substation operations, outage restoration, new customer connections, engineering, field and meter services, and all distribution system construction.  Also oversees asset optimization, resource management, performance management, and the Smart Grid efforts for DTE Energy. 20 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 21. Case Study: DTE Energy  DTE Energy Ventures:  Over $100 million in venture capital invested in energy-related companies in MI and elsewhere  Investment focus includes Smart Grid sector  Collaborates with University of Michigan to offer $100,000 Clean Energy Prize 21 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 22. Case Study: DTE Energy  DTE Economic Development:  Confidential building and site location assistance  Rate analysis and support  Strong community and economic development partnerships to provide direct access to key decision-makers  Expertise and experience in the electric and natural gas utility business 22 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 23. Case Study: DTE Energy  DTE SmartCurrents Program:  $83 million from the U.S. Department of Energy over the next two years; matched by DTE Energy and its technology partners.  660,000 new "smart" meters in 2010-2011  700 deployment and construction jobs for IT contractors and overhead linemen, and 350 permanent positions for suppliers 23 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 24. Case Study: DTE Energy  DTE SmartCurrents Program:  Smart Home would provide different pricing levels to incentivize off-peak electrical usage, web-based customer energy usage presentation and customer outage notification. In addition, certain "smart" appliances could communicate with DTE Energy to provide optimum energy savings. 24 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 25. Case Study: DTE Energy  DTE SmartCurrents Program:  As a result of the DOE funding, DTE Energy will have the opportunity to offer Smart Home technology with in-home displays and high tech thermostats to 5,000 customers, and make improvements to 11 substations and 55 circuits over the next two years. 25 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 26. Case Study: DTE Energy  Community Energy Storage (CES):  Detroit Edison’s Advanced Implementation of A123s Community Energy Storage Systems for Grid Support  $5M DOE/ARRA funding  This project will install 20 CES units, 25kW/2hr each, into a system that includes a 1 MW storage device integrated into a solar system. 26 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 27. Other Michigan Successes  A123 Systems  Leading supplier of high-power lithium ion batteries, which can provide grid storage for renewable energy production  MIT startup; acquired Ann Arbor based T/J Technologies in 2006  300,000 square foot assembly plant in Livonia  300,000 square foot coatings facility in Romulus 27 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 28. Other Michigan Successes  General Electric  $70M invested (10% stakeholder) in A123 Systems  $100M investment in new advanced manufacturing technology and software center, Visteon Village, Van Buren Twp.  “Michigan is a great location for a technology center because of its world-class engineering, technical talent and public officials who understand that investing now will create tomorrow’s leading positions in information technology, clean energy and transportation.” -Jeff Immelt, GE CEO 28 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 29. Other Michigan Successes  Whirlpool Corporation  Benton Harbor-based company since 1911  World's leading manufacturer and marketer of major home appliances  "By 2015, Whirlpool Corporation will make all the electronically controlled appliances it produces -- everywhere in the world -- capable of receiving and responding to signals from smart grids" 29 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 30. Policy and the Smart Grid  Energy Independence and Security Act of 2007 (EISA) TITLE XII– SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF THE 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 achieve the ultimate goals that together define a Smart Grid. 30 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 31. Policy and the Smart Grid  Elements of TITLE XII: I. Increased use of digital information VI. Integration of `smart’ appliances and controls technology. and consumer devices. II. Optimization of grid operations and VII. Deployment and integration of resources, with full cyber-security. advanced electricity storage and III. Deployment and integration of peakshaving technologies, distributed resources and including plug-in electric and hybrid generation, including renewable electric vehicles, and thermal- resources. storage air conditioning. IV. Incorporation of demand response, VIII. Provision to consumers of timely demand-side resources, and information and control options. energy efficiency resources. IX. Development of standards for V. Deployment of `smart’ technologies communication and interoperability for metering, communications of appliances and equipment concerning grid operations and connected to the electric grid. status, and distribution automation. X. The lowering of unreasonable or unnecessary barriers to adoption. 31 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 32. Policy and the Smart Grid • On April 6, 2006, Michigan Governor Jennifer Granholm called for the development of a comprehensive plan for meeting the state's electric power needs. • Executive Directive No. 2006-2 21st Century Energy Plan  Michigan has had essentially no energy efficiency programs since 1996.  Forecasted Michigan’s future energy needs  Made recommendations to legislators and regulators 32 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 33. Policy and the Smart Grid  MI Clean, Renewable, and Efficient Energy Act of 2008  Energy efficiency programs are supported by customer rates via a volumetric charge (per kWh) for residential customers and monthly "per meter" charges for commercial and industrial customers.  Establishes energy optimization savings standard, decoupling mechanisms, and economic incentives for implementing energy efficiency programs.  Renewable Portfolio Standard of 10% by 2015 33 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 34. Policy and the Smart Grid  21st Century Jobs Fund  Authorized in 2005  Over 500 applications for first round of funding  Smart Grid technology not a targeted area for investment:  71% of funding has gone towards Life Sciences  Some of the 8% devoted to infrastructure may be grid-related 34 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 35. Michigan’s Priorities 2010  State is focusing on life sciences, construction, and certain alternative energy technologies, and developing a workforce capable of working within those industries  Building from strength in skilled trades and manufacturing, Michigan’s priority is finding work for displaced workers  40% of Michigan’s existing “green” jobs are in transportation and alternative fuels 35 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 36. Michigan’s Priorities 2010  Despite nationwide attention to “green” jobs, Michigan is still losing jobs across the board – except within renewable energy production  Low concentration could mean opportunity for growth 36 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 37. Michigan’s Priorities 2010  The single best Competitive Employment Performance industry in Michigan included firms in the business of producing semiconductors and related devices  Michigan is outpacing US averages in grid-related industries: 37 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 38. Michigan’s Priorities 2010  Developing a Smart Grid workforce in Michigan  $4.39M Recovery Act grant for training, April 2010:  Train Michigan workers and create career pathways in skilled trades and other in-demand jobs in the electric power workforce sector.  Meet the needs of employers for highly skilled workers in the electric power workforce sector.  Improve preparedness of both new hires and incumbent workers within the electric power sector to migrate to the Smart Grid. 38 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 39. Growth Potential 39 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 40. Growth Potential 40 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 41. Recommendations to NEI  Capitalizing on Existing Assets and Resources:  DTE Energy, GE, and A123 Systems are heavily invested in battery technology in Michigan  Because of parallel applications within automotive industry, applying Smart Grid battery storage solutions to improve alternative energy reliability makes sense  Expand or replicate DTE/A123 pilot project  Provide funding to help create secondary market for future used battery cells 41 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 42. Recommendations to NEI  Workforce Development:  “NEI’s approach is to be a catalyst for change.”  Training focus in Michigan needs to shift to the understanding of computer and electronic devices and components that will connect the Smart Grid  Smart meters, monitoring devices and software, sensors and controls  Electronics training needs to begin in high schools, partnering with colleges and business where possible 42 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 43. Recommendations to NEI  Consumer education and awareness  Leverage federal funds to build a complete regional generation to end user Smart Grid demonstration project  Alleviate public perception that Smart Grid improvements will cost too much  Compare to CFL bulbs as an example of life-cycle costs, and how prices have come down over time 43 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University
  • 44. 44 UP6550 | Robert Moreo + Yuchen Mao | Wayne State University

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