The True Value of Grid Reliability


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Learn from the results of the Duke Ohio’s Auditor’s Assessment and other case studies from around the world where real utilities are performing at 99.7 – 100% levels of reliability daily, and achieving the business case benefits of a smarter, future-proof grid.

Learn about:

* The true value of having a proven communications network that delivers true reliability on day 1 of deployment
* The connection between having a reliable and multi-application grid
* Research and observations from MetaVu from recent smart grid assessments

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The True Value of Grid Reliability

  2. 2. Agenda  True Value of Grid Reliability  Paul Alverez, Principal and Practice Leader MetaVu  Role of Communications in a Reliable Grid  Jeff Norman, Senior Consultant, Emerging Technologies, SAIC  Reliable Energy Control Networking Platform  Sebastien Schikora, Director Product Management, Echelon E h l  Q&A2
  3. 3. True Value of Reliability  l f li bili The Role of AMI and Benefits to Customers Paul Alverez, Principal and Practice Leader pMetaVu, Inc.M t V I2240 Blake StreetDenver, CO USA 
  4. 4. About MetaVuCelebrating 10 years of sustainable business excellence Environmental & Social Responsibility Advisory Build the  • Corporate sustainability strategy & planning Business  Case &  • SSustainable operations execution i bl i i Roadmap • Environmental/Social/Governance  Smart Grid  performance and benefits evaluation Optimize  Experience Implementation Utility Practice Focus Areas Measure     • Renewable generation & energy strategy Performance,  Value • DSM program design and optimization • Smart grid planning execution and Smart grid planning, execution, and  performance measurement  “Smart Innovator Award – Top Sustainability Consultant”  Representative MetaVu Clients…. © 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 4
  5. 5. Smart Grid Performance and Value MeasurementComprehensive, Independent Deployment Assessments Duke Energy Ohio Xcel Energy SmartGridCity™ • 800,000 premises • 46,000 premises, half with AMI • Full AMI and DA • Full DA on selected feeders • Scope of Assessment • Scope of Assessment (by Capability)  Estimated economic benefits:  Fuel,   Actual economic benefits:  Fuel, Capital,  Capital, Expenses, Revenue Capture Expenses, Revenue Capture  Estimated reliability benefits Estimated reliability benefits  Actual non economic benefits:  reliability,  Actual non‐economic benefits: reliability, environmental, safety  Meter accuracy and RF emissions  Relative value of capabilities from   Cyber security guideline conformity customers perspective (market research) customers’ perspective (market research)   Systems/operations integration level  Organizational and operational change  • Public version of report released  management in event of roll‐out  June 30 on PUCO website June 30 on PUCO website  Projected roll‐out costs based on actual© 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 5
  6. 6. Two‐way Data Flows in AMI systems Utility Backhaul Today’s Topics (AMI) Reliability Opportunities • Meter Polling • Voltage Exception Reporting • Interval Data Aggregation • Sectionalization S ti li ti Customer Premises Smart Meters Data Collectors ‘Big Picture’ findings on Reliabili© 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 6
  7. 7. Meter Polling Goal: • Identify Outage Locations Faster • I Improve Extent Prediction E t t P di Utility ti Backhaul Reliability Benefits: • Faster Time to Restoration Economic Benefits: • Increased Revenue Capture Customer Smart Data • Reduced Restoration Costs Premises Meters Collectors© 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 7
  8. 8. Voltage Exception Reporting Goal: • Proactively identify  power quality issues lit i Utility Backhaul Reliability Benefits: • Dramatically reduce  power quality complaints Economic Benefits: • Reduces investigation costs Reduces investigation costs Customer Smart Data Premises Meters Collectors© 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 8
  9. 9. Interval Data Aggregation Goal: • Improve distribution  capacity planning it l i Utility Backhaul Reliability Benefits: • Identifies capacity  issues before outage  issues before outage occurs Economic Benefits: • Prioritizes and right‐sizes  Customer Smart Data Premises Meters Collectors capacity upgrades© 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 9
  10. 10. Open Sectionalization Goal: Power Flow • Reduce number of  F customers impacted by  an outage P Reliability Benefits: Reliability Benefits: • Reduces Customer  Minutes Out Closed Economic Benefits: Economic Benefits: • Increased Revenue Customer Smart Sectionalizers Switches Premises Meters Substations© 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 10
  11. 11. Open Sectionalization Goal: • Reduce number of  customers impacted by  Reliability Benefits: an outage • Reduces Customer  Economic Benefits: Minutes Out • Increased Revenue Closed Customer Smart Sectionalizers Switches Premises Meters Substations© 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 11
  12. 12. Closed Pow Flow Sectionalization wer Goal: • Reduce number of  w customers impacted by  an outage Reliability Benefits: y • Reduces Customer  Minutes Out Economic Benefits: conomic enefits: Open • Increased Revenue Customer Smart Sectionalizers Switches Premises Meters Substations© 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 12
  13. 13. The Big Picture Additional Perspective on Smart Grid‐Related Reliability Issues • Reliability improvements significant in percentage terms, but  not likely enough for customers to perceive  99.95% reliability = 4.4 hours out per customer per year  A 20% improvement translates into 3.5 hours • Beauty (reliability value) is in the eye of the beholder • The law of diminishing returns applies (big time!) g pp ( g ) • Smart grid’s greatest reliability value may lie in the future  Distributed Generation (PV Solar) and Storage Distributed Generation (PV Solar) and Storage  Electric Vehicles • What’s the value of an insurance policy on future reliability? What s the value of an insurance policy on future reliability?© 2002 ‐ 2011 MetaVu, Inc.  Echelon Webinar:  True Value of Reliability │ 13
  14. 14. Thank You Paul Alvarez Principal and Practice Leader Principal and Practice Leader MetaVu, Inc. 303 679 8340  303‐679‐834014
  15. 15. Energy Consulting and EngineeringSeptember 21, 2011
  16. 16. Agenda  Introduction to SAIC  Energy Consulting and Engineering  Emerging Technologies g g g  Benefits of developing a communications approach to enhance grid reliability16
  17. 17. SAIC Energy Consulting and Engineering We are a group of technically based engineers and business  We are a group of technically based engineers and business consultants serving public and private industries and financiers  worldwide. We develop sustainable solutions specific to engineering,  economic, financial, planning, operational, and organizational  , ,p g, p , g challenges. We are part of SAIC, an $11 billion science, engineering, and  technology company serving the energy, health, environment, and  defense industries.17
  18. 18. SAIC Industry Rankings Engineering News Record, 2011 #8 Top 50 in Program Management #9 Transmission & Di t ib ti T i i Distribution #14 Top Construction Management for Fee #19 Top 200 Environmental Firms #20 Top 20 Firms in Combined Design and CM/PM Professional Services #21 P Power #42 Top 500 in Design #61 Top 100 in Design-Build FORTUNE, M FORTUNE March 2011 h #5 Worlds Most Admired Companies: Information Technology Services Newsweek, October 2010 #192 500 G Greenest Bi Companies i A t Big C i in America i Verdantix, 2010 #4 Green Quadrant Sustainable Engineering Firms CM/PM = Construction Management/Program Management18
  19. 19. SAICUtility Life-Cycle Support Services Life Cycle Independent and Systems Information Consulting Owner’s Engineering and Design- Design-Build Technology Engineering Integration • Smart grid roadmap • Project valuation • Requirements • Renewable energy • Application • Stakeholder • Specification definition, design, plants management facilitation development systems engineering • LEED® building • Infrastructure and integration projects management – • Strategic messaging • Developer selection • Program and project • Energy efficiency telecommunications/ • Capital investment • Independent management networks/NOC, planning and engineering for projects • Micro grid design desktop, help desk management lenders, developers, • Community energy owner’s engineers and implementation efficiency design • ERP/enterprise • Transmission systems support planning and market • Due diligence • Grid operations, • Critical infrastructure rules support decision support projects • CIS, MDMS, asset systems, integrated management, GIS • Rates • Procurement distributed di t ib t d energy • Build own operate Build, own, operate, implementation and i l t ti d • Power markets, fuels management resources, load maintain business integration market • AMI, EMS, GIS, management, models • Business process re- • Revenue bond SCADA, T&D SA demand response engineering finance selection and • Cyber security and implementation • Project management • Business process information and integration oversight i ht assurance modeling • Outsourcing Research & Development: Wave, Wind, Solar, Algae, Data Mining/Decision Support, Data Analytics AMI = advanced metering infrastructure; CIS = customer information system; EMS = energy management system; ERP = enterprise resource planning; GIS = geographic information system; MDMS = meter data management system; NOC = network operations center; SCADA = supervisory control and data acquisition; T&D SA = transmission and distribution security architecture; LEED i a registered t d is i t d trademark of th U.S. Green Building Council i th U S and/or other countries. k f the U S G B ildi C il in the U.S. d/ th ti19
  20. 20. Emerging Technologies Smart Grid Infrastructure Services offered: Technologies evaluated:  Technology screening and prioritization  Smart Grid communications infrastructure  Technology due diligence  Home area networks (HANs)  Technical and business case analysis  Home energy management systems  Vendor partnership development (HEMS)  Pilot and technology demonstrations  Distribution line sensors  Bench and field testing  Transformer monitors  Plug-in electric vehicles (PEVs)  Smart meters20
  21. 21. Emerging Technologies Key Strategies Drive Smart Grid Efficiency  Use a standards-based approach  Apply standards in developing smart grid infrastructure to economic and longevity reasons.  Use IP-based communications systems IP based  Apply Internet-based protocols (where available) as the standard for transport layer.  Buy versus build  Utilize existing publicly available communications infrastructure where it makes sense.  Used distributed processing/intelligence systems  Distribute processing/intelligence to help alleviate latency and cost-of-transport issues associated with heavy volumes of data. p y21 Source: Duke Energy
  22. 22. Emerging Technologies Smart Grid Architecture Source: Duke Energy, “Developing the Communications Platform to Enable a More Intelligent Grid” WEBINAR22
  23. 23. Communications Approach Benefits of Using Public Carrier Networks Real‐time communications Real time communications Average latency of milliseconds (1) ‐A l f illi d Large coverage ‐ 98% US population  is covered (2) Standard‐based ‐ Backed by 3GPP & 3GPP2 bodies $ Affordable cost ‐ Connectivity cost decreasing continuously  (3) High scalability ‐ 5B+ connections worldwide  (4) Reliability & security R li bilit & it ‐ Used in government & finance sectors (1) CDMA Development Group; “Mobile Broadband Comparison”; March 2008 (2) Federal Communications Commission; “Connecting America: The National Broadband Plan”; March 2010 (3) SmartSynch webinar; June 9, 2010 ( ( ) (4) Wireless Intelligence estimate g Source: Qualcomm M2M = machine to machine23
  24. 24. Communications Approach Wi-Fi Technology B i Wi Fi T h l Brings U i l d S Unrivaled Success  10 percent of the world’s population uses Wi-Fi  Approximately 2 billion cumulative shipments of Wi-Fi to date  Annual double-digit growth  Ubiquitous in home, enterprise, industry, education, and government environments  Consumers love Wi-Fi: Wi Fi:  7 out of 10 users would give up chocolate before Wi-Fi ( e o (Kelton Research, 2008) esea c , 008)  73 percent of university students say Wi-Fi helps them get better grades ( (Wakefield Research, 2008) , ) Source:Wi‐Fi Alliance24 Wi-Fi = wireless fidelity
  25. 25. Communications Approach Wi-Fi IC Shipments to Double by 201525 Source:Wi‐Fi Alliance Wi-Fi = wireless fidelity IC = interchange carrier
  26. 26. Communications ApproachCommunications Node Enables Distributed Management Communications nexus for an integrated network integrated network  WAN communications  LAN communications  modularity  (Wi‐Fi, PLC, ERT) y ( )  Distributed grid  management enabled by  local processing and   memory  Energy sensing applications  current, voltage, power  quality power factor quality, power  Source: Duke Energy, “Developing the Communications Platform to Enable a More Intelligent Grid” http://www.duke‐‐David‐Masters‐SmartGrid‐Comm‐Platform‐02‐01‐11.pdf WAN = wide area network; LAN = local area network; Wi-Fi = wireless fidelity; PLC = power line communication; Wi Fi ERT = encoder, receiver, transmitter; RF = radio frequency; PEV = plug-in electric vehicle26
  27. 27. Communications Approach Communications Node Supports Multiple Functionalities  Serves as a data aggregator for end points  Performs remote analytics and appropriate control  Provides short-term storage for end-point and local analytics data  Provides integrated input/output options  Provides embedded intelligence into the grid itself at key locations  Serves as a router that forwards data between end devices, nodes, and servers  Serves as a gateway and performs protocol conversion, as needed27 Source: Duke Energy
  28. 28. Communications Approach Communications Node and Potential Software Applications Application Description Utilizes voltage sensing at the transformer and meter to generate Voltage Monitoring exception reports which indicate voltage regulation problems Monitors loading on transformers and provides real-time alerts when Transformer Overload Monitoring transformer is overloaded Three-phase li d i Th h line devices th t measure current ( that t (amps) and id tif th ) d identify the Remote Fault Detection fault current and location of a fault Outage and Restoration Notification Remote and automated notification of power outages Ability to remotely configure and control capacitor banks and regulators Integrated Volt/Var Management to achieve specific power factor and voltage objectives on the grid Remote control of customer equipment to manage peak capacity and Demand Response Event Management grid operation issues Street Light Monitoring Monitoring of streetlights to ensure they are operating appropriately Remotely identify in real time where PEV vehicles may be located and PEV Monitoring charging Source: Duke Energy PEV = plug-in electric vehicle28
  30. 30. Introducing Echelon Echelon Energy Control Network: open, intelligent, distributed control Market Global Field Passionate Maker Innovator Proven Customers 20 100 100M >1,000 years patents smart devices customers First Energy Control HQ Silicon “Plant-to-Plug” Commercial, Network Valleyy solutions Utilities30
  31. 31. A Fundamental Shift Is Underway YESTERDAY: • Single source, local • Steady-state • C ti consumer Captive • Ubiquitous, cheap • Single business model TODAY: • Distributed energy sources, global • Erratic demand • Consumer choice and participation • K GDP component, price pressure Key t i • New business models31
  32. 32. Taking the Smart Grid beyond metering Starting now we make the “other end of the wire” smart32
  33. 33. Why does the communications network need t be reliable? d to b li bl ?33
  34. 34. Field Proven Reliability Customer Reliability  Load Profile  Readings # of Meters  Data Tested 99 –100% Extended Hourly 600,000* 99.7 – 100% Extended Hourly 200,000 99.7 – 100% Extended Hourly 170,000 99.7 – 99 7 100% Extended E t d d Hourly H l 50,000 50 00034 *tests conducted on a pilot sample of the total number of meters
  35. 35. Echelon Solution Components  ANSI Meters  System Software  Data Concentrators  Edge Control Node35
  36. 36. The Edge Control Node (ECN) 7000 Series P Purpose-built f th S b ilt for the Smart G id t Grid  Multiple communication p p paths  EV-DO, Wi-Fi, GPS, 900Mhz RF, …  Variety of integrated sensor and input options  Open for expansion  No limits, no licenses, no restrictions36
  37. 37. Join Leading Utilities On the Journey g y Co Achieved a return on $8M saved annually 600,000 smart due to remote meter meters installed; high investment in 4 readings and $2M saved customer satisfaction with years: invested 2.2B annually net ork ann all in network and Euro and earn 500M E E d Euro communication costs remote control per year From plant to plug: Smart street lighting lighting, Customer satisfaction residential demand response increased 26% and 10% increase in customer sat in 1yr. and smart metering complaints reduced with 370,000 smart meters37
  38. 38. Discoverthe power of controlQ&A
  39. 39. Thank You For Attending You will receive two whitepapers:  Duke Energy whitepaper referenced today: “Duke Energy: Developing the communications platform to enable a more intelligent grid”  E h l reliability case study: Echelon li bilit t d “NES Load Performance Test in Kaiserlautern Germany” NES Germany39