A Vision for a Holistic and Smart Grid with High Benefits to Society


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Presented on Dec 2, 2009 as a keynote speech to the 2009 T&D Asia Conference in Bangkok and followed by moderating a round-table discussion of top utility executives in SE Asia.

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A Vision for a Holistic and Smart Grid with High Benefits to Society

  1. 1. A Vision for a Holistic and Smart Grid with High Benefits to Society Stephen Lee Senior Technical Executive Power Delivery & Utilization December 2, 2009 T&D Asia 2009, Bangkok
  2. 2. Outline <ul><li>Holistic Approach </li></ul><ul><li>Values to Society </li></ul><ul><li>Opportunity to Innovate </li></ul><ul><li>Smart Grid Strategy </li></ul>
  3. 3. What is The Smart Grid? <ul><li>Engaging Consumers </li></ul><ul><li>Enhancing Efficiency </li></ul><ul><li>Ensuring Reliability </li></ul><ul><li>Enabling Renewables & Electric Transportation </li></ul>Many Definitions – But One VISION Holistic Highly Instrumented with Advanced Sensors and Computing Interconnected by a Communication Fabric that Reaches Every Device
  4. 4. What is Holistic? <ul><li>Holistic approach means considering the Whole </li></ul><ul><li>What is the Whole System addressed by the Smart Grid? </li></ul><ul><ul><li>Traditional Electric Power System </li></ul></ul><ul><ul><li>Modern Electric Power System </li></ul></ul><ul><ul><li>End-to-End Power Delivery Value Chain </li></ul></ul>Holistic
  5. 5. Modern Electric Power System <ul><li>Renewable wind and solar </li></ul><ul><li>Smart meters </li></ul><ul><li>Energy storage </li></ul><ul><li>Demand response / dynamic pricing </li></ul><ul><li>Distributed generation and storage </li></ul><ul><li>Electric or plug-in-hybrid electric vehicles </li></ul><ul><li>Advanced transmission technologies </li></ul><ul><li>Advanced sensors </li></ul><ul><li>Synchrophasors or phasor measurement units </li></ul><ul><li>Wide-area measurements and control </li></ul><ul><li>Emergency operation and system restoration </li></ul>Holistic Challenge is to integrate all of them
  6. 6. End-to-End Power Delivery Value Chain Data Communication Wide Area Control Sensors Monitoring, Modeling, Analysis, Coordination & Control Holistic End-uses & DR Distribution System Transmission System Energy Storage Fuel Supply System Fuel Source/Storage Power Plants Renewable Plants Controllers ZIP M Dynamic Load Models Dynamic Power Plant Models
  7. 7. Smart Energy Delivery Value Chain <ul><li>Not Just a Smart Electric Power Grid, but includes: </li></ul><ul><li>Gas utility system </li></ul><ul><li>Fuel supply system (oil/natural gas pipelines, coal & shipping) </li></ul><ul><li>Water system, e.g., for power plants cooling and district heating </li></ul><ul><li>Electrified transportation </li></ul><ul><li>Weather systems (wind and solar forecasting) </li></ul><ul><li>Communication network (voice and data) and cyber security </li></ul><ul><li>Carbon reduction & other pollution control systems </li></ul><ul><li>Markets – power, carbon, other emissions </li></ul><ul><li>Customer behavior engagement </li></ul>Holistic
  8. 8. Smart Grid Domains Source: EPRI Report to NIST on Smart Grid Interoperability, June 2009 Holistic
  9. 9. Role of National Institute of Standards and Technology (NIST) <ul><li>In cooperation with the DoE, NEMA, IEEE, GWAC, and other stakeholders, NIST has “primary responsibility to coordinate development of a framework that includes protocols and model standards for information management to achieve interoperability of smart grid devices and systems …” </li></ul>Energy Independence and Security Act (EISA) of 2007 Title XIII, Section 1305 Smart Grid Interoperability Framework Holistic
  10. 10. NIST Phase 2 and Phase 3 Plan March September 2009 2010 Holistic PHASE 1 Recognize a set of initial existing consensus standards and develop a roadmap to fill gaps PHASE 2 Establish public/private Standards Panel to provide ongoing recommendations for new/revised standards to be recognized by NIST PHASE 3 Conformity Framework (including Testing and Certification)
  11. 11. Benefits to Society <ul><li>The greatest values to society from the Smart Grid comes from </li></ul><ul><li>Integration of : </li></ul><ul><ul><li>renewable resources, </li></ul></ul><ul><ul><li>energy storage, </li></ul></ul><ul><ul><li>demand response, </li></ul></ul><ul><ul><li>electric transportation, and </li></ul></ul><ul><ul><li>energy efficiency, </li></ul></ul><ul><li>While increasing power delivery reliability and fast system restoration, and </li></ul><ul><li>Improving the global environment. </li></ul>Values
  12. 12. Current State – Power Grid Operations 2-4 Sec scan rates Limited to info from lines and transformers at substations MW, MVAR, KV breaker status Limited Grid Visibility Values
  13. 13. Smart Transmission State – Power Grid Operations Higher speed scan rates Allows more frequent analysis of system state Enhanced Grid Visibility Values 750 +282j 250 +84j 100 +62j 20 + 8j 276 + 120j 130 + 8j 300 + 100j 750 + 262j 440 + 200j 120 + 11j 350 + 150j 227 + 420j 704 + 308j 2 3 4 5 7 6 1 8 9 10 11 12 13 14 15 16 17 176 +88j
  14. 14. Online Stability Monitoring & Analysis Wide Area Visualization Model Validation & Adjustment Controlled Separation & Restoration PMU Applications Improve situational awareness Increase transfer capabilities Prevent cascading failures & reduce wide-area blackouts Reduce system restoration time and outage durations Improve accuracy of models Research Development Application Demonstration Values
  15. 15. North America Electricity Balancing Authorities Values
  16. 16. Variability of Wind Generation Values
  17. 17. Solar Thermal (CSP) vs Photovoltaic (PV) Output Source: Larry Stoddard, Black & Veatch Sunny Day Cloudy Day Values
  18. 18. Compressed Air Energy Storage AEC CAES Plant (McIntosh, Alabama): - - Arial View - - <ul><li>First US CAES Plant: Alabama Electric Cooperative McIntosh Plant (110MW – 26 Hr) </li></ul><ul><li>Started commercial operation: midnight May 31, 1991 </li></ul><ul><li>Due to excellent part load efficiency, regulation ramping, and/or spinning reserve duty are often used </li></ul>AEC McIntosh Site: CAES Plant On Right and Two Combustion Turbines On Left Values
  19. 19. Balancing Intermittent Resources on the Grid… V f High Low Supply Demand Values
  20. 20. What is Demand Response? <ul><li>Voluntary , temporary adjustment of power demand by end-user or counter-party in response to market signal (e.g. price, emergency, etc.) </li></ul><ul><li>Three basic forms </li></ul><ul><ul><li>Direct Load Control </li></ul></ul><ul><ul><li>Price Response </li></ul></ul><ul><ul><li>Interruptible Tariff </li></ul></ul><ul><li>Enabling technology  automation  ubiquity  DR magnitude & reliability </li></ul><ul><li>Still subject to human behavior </li></ul><ul><ul><li>Even with automation, overrides possible </li></ul></ul><ul><ul><li>Persistence a question </li></ul></ul>Image source: GDF Suez Values
  21. 21. Smart Grid Enabling Consumers to be More Efficient Numerous studies have been conducted to quantify the impact of information on electricity consumption Making Consumers Energy Aware Values
  22. 22. Prices to Devices Tomorrow’s Smart Pricing Efficient Building Systems Utility Communications Dynamic Systems Control Data Management Distribution Operations Distributed Generation and Storage Plug-In Hybrids Smart End-Use Devices Control Interface Advanced Metering Consumer Portal and Building EMS Internet Renewables PV <ul><li>Thermostat receives day-ahead hourly prices </li></ul><ul><li>Consumer sets upper and lower limits </li></ul><ul><li>Thermostat “learns” thermal, consumer and weather impacts </li></ul>Values
  23. 23. Smart Grid Enabling PHEV Through Smart Charging <ul><li>Utility – Auto industry collaboration </li></ul><ul><li>Standardize interface vehicle-to-grid </li></ul><ul><li>Open systems </li></ul>Plug-In Vehicle AMI Path Smart Charging Back End Energy Management, Cust ID, Billing Non-AMI Path Standard Interface Values
  24. 24. Foundations Need Strengthening <ul><li>End-to-End Situational Awareness </li></ul><ul><li>Alarm Management and Real-Time Root-Cause Diagnosis </li></ul><ul><li>Dynamic Models of all Generators and Loads </li></ul><ul><li>Faster System Restoration </li></ul><ul><li>System Integrity Protection Schemes </li></ul><ul><ul><li>Faster reflex actions on wide-area problems </li></ul></ul><ul><ul><li>Measurement-based safety nets to prevent cascading blackouts, e.g., load shedding, islanding/separation, damping </li></ul></ul>Values
  25. 25. Fast System Restoration Can Reduce Social Impact Of Widespread Blackouts Source: NSF/EPRI Workshop on Understanding and Preventing Cascading Failures in Power Systems, Oct 28, 2005. Extensive (magnitude & duration) blackouts cost Billions of $ to the economy Values
  26. 26. New Regulatory or Market Solutions Are Needed <ul><li>Virtual Service Aggregators serving as Energy Balancing Authorities </li></ul><ul><ul><li>Dispatch and control highly variable but renewable wind and solar generation </li></ul></ul><ul><ul><li>Dispatch and control (and own?) large scale energy storage plants </li></ul></ul><ul><ul><li>Manage demand response proactively </li></ul></ul><ul><ul><li>Manage smart electric vehicle charging </li></ul></ul><ul><li>Virtual Vertical Utilities </li></ul>Innovate
  27. 27. Potential Role of the Virtual Vertical Utility Innovate
  28. 28. Synergy with Other Systems <ul><li>Transportation system </li></ul><ul><li>Water system </li></ul><ul><li>Electric appliance design </li></ul><ul><li>Regional planning </li></ul><ul><li>Green building </li></ul><ul><li>Green urban planning </li></ul><ul><li>Local/national interests </li></ul><ul><ul><li>Employment </li></ul></ul><ul><ul><li>Technology development </li></ul></ul><ul><ul><li>Local conditions </li></ul></ul><ul><ul><li>Energy diversity/security </li></ul></ul>Innovate
  29. 29. Challenges to Business-As-Usual Assumptions <ul><li>AC vs DC distribution vs wireless </li></ul><ul><li>Obligation to Serve vs Obligation to Obtain </li></ul><ul><li>Transmission network as common carrier requiring automatic toll collection </li></ul><ul><li>New business entities e.g. virtual vertical utilities and virtual energy balancing authorities </li></ul><ul><li>Microgrid power companies or cooperatives </li></ul><ul><li>Application of Internet </li></ul><ul><li>Zero energy appliances and buildings </li></ul>Innovate
  30. 30. ASEAN Power Grid Strategy Batam Philippines Brunei Vietnam Malaysia Laos Cambodia Myanmar Indonesia Singapore Thailand Philippines Brunei Vietnam Malaysia Laos Cambodia Myanmar Indonesia Thailand 1 2 3 4 5 6 7 8 9 10 11 West Kalimantan Sumatra Sabah Sarawak Eastern System Western System
  31. 31. How to Develop A Smart Grid Strategy <ul><li>Consider Region as a Whole </li></ul><ul><li>Consider all costs in the Whole system </li></ul><ul><li>Consider all benefits in the Whole system </li></ul><ul><li>Directly address equitable allocation of all costs and benefits (including environmental and social costs) </li></ul><ul><li>What Investments give highest Benefit-Cost ratios? </li></ul><ul><li>Lay out long term and short term plans </li></ul><ul><li>Be Realistic about maturity and commercial readiness of different technologies </li></ul><ul><li>Engage in the global developments of Smart Grid standards </li></ul><ul><li>Consider regional collaboration on Smart Grid demonstration projects with cost sharing between governments and industries </li></ul>Strategy
  32. 32. Smart Grid: Focus on What has High Benefits to Society Smart Grid Strategy Need an Objective Assessment of the Potential for Smart Grid and the Path to Achieve it
  33. 33. Conclusions <ul><li>Need to Make the Whole Value Chain Smarter </li></ul><ul><li>Smart Grid would Modernize the Electric Power System </li></ul><ul><li>Key Messages: </li></ul><ul><ul><li>Focus on Benefits to Cost Payback </li></ul></ul><ul><ul><li>Consider all parts together (Holistic approach) </li></ul></ul><ul><ul><li>Remove deficiencies in foundations </li></ul></ul><ul><ul><li>Implement new solutions </li></ul></ul>THANK YOU! [email_address]