TM Forum- Management World Americas - Smart Grid Summary

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Smart Grid introduction, its components, its advantages, main drivers, main technologies

Smart Grid introduction, its components, its advantages, main drivers, main technologies

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  • 1. Smart GridCommunication StrategyShekhar GuptaManager Network Planning OpsCentury LinkDecember 8th, 2009
  • 2. What is the Grid?Generation Transmission Distribution10,000 Power Plants 157,000 miles of high voltagetransmission linesSubstations step downvoltages and distribute tohundreds of thousands ofmiles of lower voltage lines.Customers’electric systemsCustomerThe grid is the integrated network incorporating thegeneration, transmission and distribution of electricity
  • 3. 3 Major Interconnections, 8 Regions, 135Balancing Authorities
  • 4. Today’s Grid•Generation of power is mostly centralized and large scale.•Electricity travels the path of least resistance hence it is not easy tocontrol its path through the network.•Customers do not choose their source of electricity as serviceprovision is territorially based•Energy prices are mandated with little consumer choiceOver 3100 Electric UtilitiesLarge stock-holder owned utilitieshandle majority of customersPublicUtilitiesPublicUtilitiesStock-holderOwned UtilitiesStock-holderOwned UtilitiesElectricCooperativesElec.Coops
  • 5. Today’s Grid is Under StressThe US energy grid is antiquated– Much of the power delivery infrastructure wasdesigned before 1960– The Near-term retirement of many aging plants isprojectedInefficiency and failures are costly– Power interruptions and disturbances cost the U.S.electricity consumer at least $79 billion per year1– A recent rolling blackout caused an estimated $75million in losses in Silicon Valley alone. 2– When the Chicago Board of Trade lost power for anhour during the summer of 2000, trades worth $20trillion could not be executed.– Congestion in distribution and bottlenecks affect manyparts of the grid.Today‟s grid is increasingly operating atits limits– facing shortcomings in capacity, reliability, securityand power quality– 30% increase in demand expected by 2030America faces a significant need for newelectric power generation“Today’s power grid is wasteful, costly, inefficientand dumb…” 11. Lux’s Research, “Alternative Power and Energy Storage State of the Market Q4 2008: Weaving the$65 Billion Power Web,”
  • 6. What Utilities NeedLarge utilities may own & operate all domainsSome major utility needs are:Revenue Impacting• Near real time usage status delivered in regular intervals; on-demand response• Service integration with billing systems• New products and services such as time-based rates, pre-payment, etc• Eliminate mechanical meter billing loss• Improve response to power outage / restorationExpense Impacting• Integrate utility network management systems• Manage peak load;– reduce peak rate– better control localized generation• Reduce meter reader costs• Reduce service disconnects / reconnect costs• Reduce outage support calls• Improve technician dispatch accuracy
  • 7. Smart Grid DriversElectric Utilities: Current Situation / Challenges– Today‟s power grid is aging, inefficient and under stress– Power demand expected to increase by 30%-50% over next 10-20 years;prices are expected to increase to help manage demand– Grid cannot easily integrate alternative power generation and storageEnvironment– Economic: prolonged recession, business & consumer managing spend– Social: green movement, carbon footprint, hybrid/electric vehicles,recycling, etc.– Market: dynamic, emerging marketplace, new players in energy sector(eg, wireless, Google, Cisco, start-ups)– Political/Regulatory: energy is top priority for current administration;mandates for electric utilities; job creation• Building a smart grid is a priority with many stakeholders• Rural America may have different Smart Grid challenges
  • 8. Tomorrow’s Smart Grid changes the paradigmA communications overlayDistributed Intelligence throughout the grid‟secosystemAutomated & remote control of grid componentsNew energy sources (solar, wind, etc.)New energy storage meansMany on-premise monitoring and control devices“Today’s power grid is wasteful, costly, inefficient and dumb…. However, the adventof distributed generation, distributed storage, and distributed intelligence willchange power infrastructure into an intelligent and more nimble power web…”1Smart Grid enhances today’s grid via….1. Lux’s Research, “Alternative Power and Energy Storage State of the Market Q4 2008: Weaving the $65 Billion Power Web,”
  • 9. Smart Grid Delivers SolutionsGenerationCustomerStep-UpSub-stationStep-DownSub-stationTrans-formerDomainGenerationTransmissionDistributionCustomerSmart Grid is about„beefing-up‟ theelectrical grid andenabling it via acommunications networkSmart Grid implementsa data network overlayto the electric grid tomeasure, manage, andcontrol the grid„Beefing-up‟ the gridenables new electricalsolutions such asalternative energysources and electricautomobilesSmartGridOverlayDataNetwork
  • 10. The SMART GRID is a network architecture,protocol & a framework for developmentRe-engineering Power distribution and controlIt integrates communication technologies withthe electric grid, allowing for real-time, two-way communication between the utility, theconsumer, and throughout the distribution gridIt‟s an organizing framework for broad anddisperse development activities aimed atmodernizing the gridIt energizes a competitive marketplace forelectricityIt‟s a fully automated power networkSmart Grid will revolutionize the transmission,generation and storage of energyIt’s the widely accepted Framework for ModernizingToday’s Power Grid
  • 11. Smart Grid’s Design CharacteristicsEnhanced availability of power– Quality, Distribution, Magnitude, minimal congestion & constraintDistributed energy generation and storage– Not only large, but also smaller power plants with various energy sources (wind,solar, etc.)Democratic and Participatory– Consumers actively participate and bring value– Increases choice in energy / Redefines demand responseOpen Access - Enabling the marketplace– Encourages new entrants and new devices– Energy prices will be fluid, responding to load, time of day, source, etc.– Customers will be able to choose the source(s) of their energyEfficient– Sensing and measurement grid improve load balancing characteristics– Minimal transmission congestionSelf-healing– Minimizes user impact from problemsResistant to attacks – Isolates faultsIt’s a big vision with plenty of onramps
  • 12. SmartGrid Ecosystem has many StakeholdersDemandResponseHAN, GatewayMeter DataManagementDistributionAutomationConsultantsBackhaul TechnologyProvidersSystemIntegratorsS&C Electric, Cooper,Cleveland PriceKEMA, Enspiria,Michael Weibe,EnernexIBM, CapGemini,Accenture, SAIC, SAPEmbarq,AT&T Cingular, Verizon,Rogers Wireless, Tropos,Corinex, Current,Arcadian Networks,Earthlink,, Landis+Gyr,Elster, GE, Sensus,EchelonAztech, Blue Line,Riga, CentimeterData CollectionHardwareIBM, HP, DellData CollectionTechnologiesItron, Sensus, Cellnet,Elster, DCSI,Cooper / Cannon,Trilliant, Tantalus,powerOne data, HuntAlliances andOrganizationsZigBee Alliance,OpenHAN, Intelligrid,GirdWise, OpenAMI, EPRI,ANSI C12 / NEMA,DRAM, DRCCRegulatoryPUC, FederalUtilitiesItron, Oracle, eMeter,Nexus, EnergyICT,EnerNOCComverge, EnerNOC,Cannon, Carrier,Honeywell, GoldenPower, CorporateEngineering SystemsAMI vendors, IBM Tivoli,HP OpenView,MicrosoftSource: M2M United 2009Smart Grid ecosystem has many potential partnersMeters
  • 13. Stakeholders of the VisionNational Government (s) including DOD, DOE, Agriculture, Energy Regulatory,Homeland Security– National Energy Technology LaboratoryRegional, state, Municipalities and local government agenciesElectrical and gas utilitiesIndustry Players: Electrical equipment and IT manufacturers & SystemdevelopersConsumersResearch laboratories & universitiesInternational agencies and trading partners (particularly Canada & Mexico)Public interest organizations, environmental groups, and labor unionsInvestorsAnd Communications Companies (Not included inGovernmental Reports)Yet the Vision is still formative
  • 14. SmartGrid Standards Overview(Example listings - not complete)Source: Enerex 2009ExternalHANFieldLANEnterpriseWANMeter / GatewayCollectorMetering SystemPortalNormalProgramCriticalPeak EventEmergencyStage 1EmergencyStage 2 CurrentTemp$StatusNORMALPENDINGACTIVEOVER-RIDE!03/03/20078:48amProgram:AWAYRetailersAggregatorsRegulatorsCustomersProvidersMDMSCIS/BillingOMSWMSEMS/DMSRoutersTowersGround StationsRepeatersRingsRelaysModemsBridgesAccess PointsInsertion PointsThermostatsIn-Home DisplaysSmart AppliancesField ToolsPCsBuilding AutomationInternet ProtocolsWorld-Wide WebebXMLIEC 60870-6 ICCPIEC 61970IEC 61968Web ServicesMultispeakMessage BusesSONET, WDM, ATMMPLSFrame RelaySatelliteMicrowaveIEC 61850DNP3WiMAXBPL / PLCWireless MeshADSLCellularCable (DOCSIS)ZigBeeWiFiLonWorksBACnetHomePlugOpenHANExampleMembersExampleTechnologies
  • 15. Generic Architecture ComponentsDataSmart meterCustomer Utility
  • 16. Smart Grid and Local Energy NetworksEfficientBuildingSystemsUtilityCommunicationsDynamicSystemsControlDataManagementDistributionOperationsDistributedGeneration& StoragePlug-In HybridsSmartEnd-UseDevicesAdvancedMeteringConsumer Portal& Building EMSInternet RenewablesPVControlInterfaceAdvanced MeterInfrastructure(AMI) is the mainUtility applicationLocal energymanagementenables end-userparticipation insmart gridSmart Gridenables energymanagement atend-user devicesIntegrates newenergy solutionsat end-userlocationsLocal energy management is an emerging market
  • 17. What we must know…AMI is the Utility’s CornerstoneIncremental investments– Communications bandwidth– Business development capitalIncremental utility-side capital– Programmatic, customer-facing and physicaldevice management systemsIncremental field capital andknowledge-based applications– Sensors & device controllers– Information managementInitial capital outlay– Meter functionality– Communications infrastructure– Head-end and legacy systems modificationsCapital Build-UpExpectedValueIncremental Capital CommitmentDistributionOperations &AutomationDemandResponseExtendedUtilityRolesIncremental Value CaptureAMIUtilities may seek to provide some of the same communications servicesBenefits fromAMI/Smart Meterscover 60% - 70%of capital costsQ: How do utilitiesmake “smart grid”projects a winner?A: Build upon previousinvestmentsUtilities view Advanced Meter Infrastructure (AMI) as the foundation for thefutureSource: AEP 2009
  • 18. Smart MeterSmart Meters usually involve a different technology mix, such as real-time or near real-time sensors,power outage notification, and power quality monitoring.The system provides a wide range of advanced features, including the ability to remotely turn poweron or off to a customer, read usage information from a meter, detect a service outage, detect theunauthorized use of electricity, change the maximum amount of electricity that a customer candemand at any time; and remotely change the meters billing plan from credit to prepay as well asfrom flat-rate to multi-tariff.These meters are fully electronic and smart, with integrated bi-directional communications,advanced power measurement and management capabilities, an integrated, software-controllabledisconnect switch, and an all solid-state design.Smart MeterFeatures & Benefits• Automated MeterReading⇒ Saves labor• Real-Time Consumption⇒ Modifies user behavior• Demand Response⇒ Manage peak demand
  • 19. Utility Communications ArchitectureANSI C12.22 Network TopologyC12.22 network:– Abstracts utility datarequirements to higher protocollayers– Utilizes secure, encryptedcommunications at lower layers– Designed with flexibility to useproprietary or standardcommunication networks atlower layers– Provides for interoperability atend devices– Allows system integration with3rd party devices throughcommon standards-basedinterface– Supports 1-way and/or 2-waynetwork communication paths– Enables enhanced security,reliability and speed fortransferring end-device dataCommunicationNetwork
  • 20. Telecom empowers the smart grid vianetworks, devices and servicesSmartDevicesSmart GridServicesSmart GridComm. Networkflexible communicationsarchitecture, fiber, copper,wireless technologies,Transport, BPLSensors, Smart Controls,Home energy hub, routers,switching, interfaces,appliances, etc.Managed Networkservices, energymonitoring services,(secure, SLA)Devices integratedwith broadbandWeb-basedsolutions, Portal
  • 21. Who’s Getting Involved?Google Hopes to become the underlying platform for home energy management.Introduced Power meter, online app that tracks home energy use.AT&T, Verizon 3rd parties have adapted T‟s or V‟s wireless high speed cellular datanetwork. To give utilities 2-way communications with meters. AmbientLaunches X-3000 Node Certified for Use on the Verizon Wireless Network; Itron &SmartSynch on AT&T‟s.Black & Veatch In Oct 2008 expanded its integrated network services to providetelecommunications infrastructure services for electric utilities.ZigBee Alliance,HomePlug allianceZigbee (wireless platform for home sensing & monitoring) joinedHomePlug (connectivity over residential electric wiring) to create openplatform and protocols for Smart GridIBM Signed $9.6M contract to bring Broadband over powerline (BPL) for ruralelectric cooperatives and their customers.Xcel Energy (XEL) building a $100 million Smart Grid City in Boulder, Colo.Many Startups Comvere COM) EnerNoc (ENOC) Echelon (ELON) : Making devices and systems thatlet consumer monitor and adjust their electricity use in real timeTendril - Smart meter with open platform for other devices in-home displayshows electricity usageGridPoint Inc., intelligent hub connects location to a renewable energy source,utility grid, and online energy management tools.ObamaAdministrationCongress is betting a $4.5 - $11 billion slice of its economic stimulus package on thedevelopment of the smart grid. President Obama is calling for another 40 millionsmart meters installed using funds from the stimulus program
  • 22. Time Horizon: DOE Roadmap forModernizing America’s ElectricDelivery System
  • 23. Time Horizon“Large scale smart grid integrated solutions will be partiallyunderway in places such as Texas within five years. It will beobvious to everyone within a decade. It will be mainstreamwithin two decades.”“The winners will be those who start planning today for thatbrave new world. Those who understand that to prosper in thatworld, you will need new, smarter business models.”*Why Now?– The Stimulus bill and other factors are bringing key conversations to a head.Telecom Industry shouldn‟t want standards laid down by others before addingits voice; Telecoms should seek to be courted as partners and avoid beinglocked out of value;– Pivotal choices will be made for the Smart Grid in 2009 and Telecoms need toclaim a place at the table.* Berst, Jesse, Smart Grid Millionaires
  • 24. Roadmap Partners ** Department of Energy
  • 25. Smart Grid Communications PortalthermostatAir conditionerAppliancesHeaterLights & LoadsSolar Energy SourceUserInterfaceControlsEnergy Provider AEnergySource BSmart MeterSmartGridComm.PortalOn-PremiseOff-PremiseThe communications portal serves as the on-premise clearinghouse and data processor forall energy related appliances and devices. Itrelies on a customer’s communications line.Internet
  • 26. A Specific Example for Service provider toconsider - Smart Grid’s Communication PortalA Communications portal could sitbetween consumers‟ home networkand the wide area network.The portal could enable two-way, secure,and managed communicationsbetween consumers‟ equipment andenergy providers‟ equipment.Performing the work closely related torouters and gateways, the portalcould add management features(e.g., expanded choice, real-timepricing, detailed billing, consumptioninformation, and distributedcomputing) to enable fully networkedapplications.A user interface available both at home &remotely places control andmanagement of home energy devicesas well as distributed energyresources at the end user‟s disposal.
  • 27. Connected Home Architecture
  • 28. Home Plug Power Line AllianceHigh Speed Home Area Network (HAN)– Limitations: noise interference, distanceHome Plug Command & ControlSpecification– Low power, low bandwidth, high reliable, powerline– Complementary to Home Plug– For home appliances, security, home automation– Demand response & demand management (smartgrid)– Low cost addition into any device or appliance– Plug and play– Secured networkAny device on network can be triggeredand any device can take action based ona trigger & can also send status.Applications•Automatic Meter Reading and Energy Management - Smart Meter, Thermostat, Circuit Breaker, HVAC,Water heater, power measurement, data collecting, load controller, smart switches, etc.•Demand Response and Demand Management•Home Appliances Automation, remote command and control. Actuators – Ceiling fan, shade and drapecontrol, audio source control, audio volume control, gate controller, door position monitor and controller, &solenoid controllers, etc.•Monitoring Security and Safety including remote access and control via the internet.•Street light control; Industrial Automation; Sensors and Life Safety Devices – Smoke detector, motiondetector, water, heat, health monitoring, etc; Various indoors controllers – Lighting control, switches, anddimmers, door and windows lock, etc.
  • 29. ZigBeeSan Ramon, Calif. - August 25, 2008 –Today utilities led by American Electric Power, Consumers Energy,Pacific Gas and Electric Company, Reliant Energy, Sempra, andSouthern California Edison are working with the ZigBee® Allianceand the HomePlug® Powerline Alliance to develop a commonapplication layer integrated solution for advanced meteringinfrastructure (AMI) and home area networks (HAN). Using therobust capabilities of the ZigBee Smart Energy public applicationprofile as a baseline, the three groups will expand the applicationlayer and enable it to run on HomePlug technology, providingutilities with both wireless and wired HAN industry standards toselect from when implementing new AMI programs.
  • 30. Home Energy ManagementBasicEnhancedAdvancedSimple indicatorMore comprehensive in-home displays (usage,cost, time)ProgrammableCommunicatingThermostat (PCT)Fully automated intelligentenergy management systemOther automated/programmable appliancesElectric vehicle charging /storageDistributed generation andstorageSource: Pacific Gas & Electric
  • 31. Google’s Smart Grid Play
  • 32. High Level Market Sizing – by 2015Electric smart meters– Est. 262 million smart metersshipped 2007 to 2015(Frost & Sullivan)– ~5% in EQ territory= ~13.1 million meters– Assume $1-2 / month / meter =~$157 - $314 million / yearHome energy management– ~6.6 million HH in EQ territory(Market Profile)– 5% HH penetration• 85% online, 25% have HAN,25% take solution– Assume $10/month/HH= ~$42 million / yearAdditional revenue notcaptured here– Transport, Network managementservices, On-premise energymanagement for business– Smart meters for water and gasdouble market size(IMS Meter Report, 2007)
  • 33. ARRA Smart Grid StimulusSmart GridStimulus GoalsOpportunity Funding Sources Can be used for:Total: $16.6 BillionAccelerate the development, demonstration and deployment of smart gridtechnologies, services and practices nationwide.Support the upgrading of the country‟s power grid.Support renewable energy and transmission technologiesAddress the specific energy priorities adopted by the statesFacilitate early use of new technologies in energy-related projectsSmart Grid funds 50%, 2-yr projects$4.3BilEnergy efficiency Block Grants EISA via DOE $3.2 BState Energy Program via States - $3.1 BilLoan Guarantee Program via DOE - $6 Bil•New Smart Grid technologies, smartmetering•Modernization of transmission infrastructure•Communication upgrades of energy grid•Demonstration projects in rural areas•Open protocols & standards•Electric Utility “OR OTHER PARTY”
  • 34. Smart Grid Systems ViewSource: SAIC – San Diego Smart Grid Study – Final Report