Smart Grid in the Era of
      Consumerization of
       Nearly Everything
                      Prepared and Edited by
                     Michael M. Hsieh, Ph.D.
Instigator and Instructor of Smart Grid Technology Course Suites
                     at UC Berkeley Extension
                       http://extension.berkeley.edu/spos/smartgrid.html

Conference Technoark                     All Rights Reserved.              1
    2013-Jan-25
Modernization of The Electric Grid
                                                                              SMES:


Today’s                                Tomorrow’s                             Superconducting
                                                                              Magnetic Energy
                                                                              Storage
                                                                              DG: Distributed

Electricity …                          Choices …                              Generation

                                                                              Power park
                                           e-

                                                                               Fuel Cell



                                                Hydrogen
                               Wind             Storage                            Remote
                               Farms                                 Industrial DG Loads

                                                Fuel Cell
                                  Rooftop
                                Photovoltaics       e-               SMES


                                                   Smart
                                                 Substation

                                       Load as a
                                       resource              Combined Heat and
                                                                  Power
 Conference Technoark
                        Reference:T. Basso, NREL, October 20, 2005                    2
     2013-Jan-25
The Consumerization of Smart Energy
• Bring Your Own Energy and Equipment (BYOE)
      – Consumer generated energy makes Consumers
        the Prosumers.
• Crowd Sourced Technology
      – Consumer Owned Generation, Solar Power
        Purchase Agreement (PPA), Community Choice
        Aggregation (CCA), etc., use technology not
        supplied by the traditional utility industry.
• Plug and Play
      – All will be plugged in and tied to the grid and
        they must interoperate and play as intended.
Conference Technoark
                         Reference: Smart Grid Technology Course Suite,   3
    2013-Jan-25
                         UC Berkeley Extension, Michael M. Hsieh, 2012
The Democratization of Smart Energy
  • Buy Your Own Energy (BYOE)
         – Solar Power Purchase Agreement (PPA),
           Community Choice Aggregation (CCA), etc.,
           procure energy not supplied by the traditional
           utility industry.
  • Crowd Sourced Technology
         – Smart microgrids, PPA, and CCA, use facilities
           not built by the traditional utility industry.
  • Plug and Play
         – All will be plugged in and tied to the grid and
           they must interoperate and play as intended.

Conference Technoark
                           Reference: Smart Grid Technology Course Suite,   4
    2013-Jan-25
                           UC Berkeley Extension, Michael M. Hsieh, 2012
An Example of Self-Generation System




                Micro-Generation systems can be either grid-connected or off-grid.
Conference Technoark
                                Reference: Randy H. Katz, UC Berkeley, August 31, 2009   5
    2013-Jan-25
Metro Area Voltage Swells and Sags
                           Challenges and Opportunities
•   Network State         • Condition Based Monitoring                  •   Customer Engagement
•   Asset Health Mgmt     • Distribution Automation                     •   Outage Management
•   Asset Management      • Demand Side Management                      •   Volt VAR Control
•   Enterprise Resource Mgmt                                            •   Workforce Management




    Conference Technoark
                                       Reference: Ankur Varma, Silver                         6
        2013-Jan-25
                                      Spring Networks, March 6, 2012
Solar Power Purchase Agreement (PPA)
                              The Purchaser only
                              bought the Power.




 Not the
 System

Conference Technoark
                       Reference: Matt Gudorf, UC Irvine, 2008   7
    2013-Jan-25
Solar PPA’s Power Delivery Method
                         Buying                    Leasing
                                                                     Solar PPA
                       Equipment                  Equipment
 Upfront Capital          Yes                   Little or None        None
   Maintenance
                          Yes                             Yes         None
     Required
   Performance
                          Yes                             Yes         None
       Risk
        System
       Expertise          Yes                             Yes         None
       Required
       Purchase
                          Yes                 Yes or Re-Lease         None
       Required
Conference Technoark
                           Reference: Matt Gudorf, UC Irvine, 2008               8
    2013-Jan-25
Paying for the Electricity




                                                                  Transmission costs are the
                                                                  smallest part of a consumer’s
                                                                  electric bill – 7 percent on
                                                                  average. The remaining parts
                                                                  of an electric bill can be
                                                                  attributed to costs from:
                                                                  • Generation – 68%
                                                                  • Distribution – 24%

Conference Technoark
                             http://www.modernizethegrid.com/modernize-the-grid/          9
    2013-Jan-25
Example: CCA in Collaboration with IOU


                         CCA




       CCA             Responsible for         IOU             Responsible for          Home or Business
                       buying and building                     delivering energy,
                       energy supplies                         repairing lines, and
                                                               serving customers


CCA: Community Choice Aggregation
IOU: Investor Owned Utility
PG&E: Pacific Gas & Electric, Northern California, USA
Conference Technoark
                                             Reference: Lean Energy US, October, 2011                      10
    2013-Jan-25
Campus Level Smart Microgrid Examples
 Site of Microgrid                                      Attributes
                                          Load: 42 MW Peak
  UC San       Diego1
                                    Self-Generation: 37 MW Peak

      Stanford                            Load: 50 MW peak
     University2                    Self-Generation: 30 MW peak

                                       Load: 11 MW peak
    A   Shipyard3
                           Savings in Electric Bill: ~$23M in 10 years

  An Engineering                      Load: 3.5 MW peak
     Center3               Savings in Electric Bill: ~$10M in 10 years

 Microgrids can be viewed as an energy consumer having its own utility company.
                             1. Byron Washom, UCSD, 2011
 Conference Technoark        2. Joseph Stagner, Stanford University, 2012    11
     2013-Jan-25             3. Pike Research, 2012
Solar Power at Hopkins Parking Structure at UC San Diego




   Conference Technoark
                          http://www.marketplace.org/topics/sustainability/power-building-bigger-batteries   12
       2013-Jan-25
Segmentation of US Energy Consumers
Segments         % of Total                     Attributes and Opportunities
                 Population
                                     Members of this group are most protective of the
Concerned              31%      environment and supportive of smart grid initiatives. They
 Greens                            are highly likely to participate in energy management
                                     programs. They can be viewed as Early Adopters.
                                  This group doesn’t know much about smart grid but is
  Young                23%              interested in learning about its potential for
 America                                   environmental benefits and cost savings.
                                   This group of consumers has the highest income per
   Easy                20%       capita comparing with all other segments. They are very
  Street                        comfortable with their current life style and are reluctant
                                             to change their personal behaviors.
                                 This group of consumers is frugal and has a do-it-yourself
DIY & Save             16%      (DIY) life style. Their biggest concern is providing for their
                                         family, not the global environmental issues.
                                 This group tends to be older, set in their ways and do not
Traditional            11%      see the need for energy reform. Factsheet, and education
                                regarding smart meter accuracy, health, and privacy could
                                       perhaps offset concerns with the technology.
Conference Technoark
                              Reference: Smart Grid Consumer Collaborative, January 23, 2012   13
    2013-Jan-25
Traditional Biz Model of Utility Industry
 • US Utility industry have built, operated, and
   maintained a mission critical infrastructure
   24x7x365 for 130+ years.
 • Utility industry produce, market, and deliver
   “workhorse electrons” to consumer’s doorsteps
   at a regulated “price per kilowatt-hour” like
   Entitled Commodity.
 • Utility industry carry heavy inventory of asset,
   skill set, and personnel.
 • Not a very healthy nor readily sustainable
   business model in the 21st century.
Conference Technoark
                       Reference: Smart Grid Technology Course Suite,   14
    2013-Jan-25
                       UC Berkeley Extension, Michael M. Hsieh, 2010
Could Utility Industry Take a New Biz Model?
• Utility Generated and Utility Operated-and-
  Maintained Energy offered as a “societal” Service
  like Fire Service, Medical Service, Police Service,
  Societal Defense Service (e.g., US National Guard
  of each individual state) etc.
• Service premium charged according to the
  different levels of service agreement – hint,
  similar to the way the insurance industries work
  in US.
• This would be a model for the consumerized and
  democratized Smart Energy industry.
Conference Technoark
                       Reference: Smart Grid Technology Course Suite,   15
    2013-Jan-25
                       UC Berkeley Extension, Michael M. Hsieh, 2012
Need New Workforce for Smart Energy Industry
 • Boots on the Ground
    – Take care of the smart grids and smart
      microgrids 24x7x365 as the first line of defense.
 • Brains at the Desk
    – Manage the distributed control, the big data,
      the (external as well as internal) customer
      engagement, the consumerization and the
      democratization of smart energy.
 • Thought Leaders at the Helm
    – Lead and retain the “smart energy” workforce
      into the new business era.
Conference Technoark
                       Reference: Smart Grid Technology Course Suite,   16
    2013-Jan-25
                       UC Berkeley Extension, Michael M. Hsieh, 2012
Opportunities for Investments
 • Observability of all kinds of grid
 • Controllability of all kinds of grid
 • Communication Infrastructure for all parties
 • Friendly and effective Customer Engagement
 • Situational Intelligence and Predictive analytics
 • Workforce Development
 • Education of the general public
 • Smart Energy Storages, Smart Energy Systems,
   Smart Cities, Smart Governance
 • Security for Critical Infrastructure
Conference Technoark
                       Reference: Smart Grid Technology Course Suite,   17
    2013-Jan-25
                       UC Berkeley Extension, Michael M. Hsieh, 2012
What’s In It For Me – the Consumer?
  • Better Choices – Consumer and/or Prosumer
  • Better (Quality of) Life
  • Features Wanted by the People, Assets and
    Properties of the People, Service for the
    People




Conference Technoark
                       Reference: Smart Grid Technology Course Suite,   18
    2013-Jan-25
                       UC Berkeley Extension, Michael M. Hsieh, 2012
Smart Grid: A Once In a Life Time Opportunity




Conference Technoark
                       Reference: George W. Arnold, NIST, July 19, 2009   19
    2013-Jan-25

Michael Hsieh (UC Berkley Extension) - Conférence TechnoArk 2013

  • 1.
    Smart Grid inthe Era of Consumerization of Nearly Everything Prepared and Edited by Michael M. Hsieh, Ph.D. Instigator and Instructor of Smart Grid Technology Course Suites at UC Berkeley Extension http://extension.berkeley.edu/spos/smartgrid.html Conference Technoark All Rights Reserved. 1 2013-Jan-25
  • 2.
    Modernization of TheElectric Grid SMES: Today’s Tomorrow’s Superconducting Magnetic Energy Storage DG: Distributed Electricity … Choices … Generation Power park e- Fuel Cell Hydrogen Wind Storage Remote Farms Industrial DG Loads Fuel Cell Rooftop Photovoltaics e- SMES Smart Substation Load as a resource Combined Heat and Power Conference Technoark Reference:T. Basso, NREL, October 20, 2005 2 2013-Jan-25
  • 3.
    The Consumerization ofSmart Energy • Bring Your Own Energy and Equipment (BYOE) – Consumer generated energy makes Consumers the Prosumers. • Crowd Sourced Technology – Consumer Owned Generation, Solar Power Purchase Agreement (PPA), Community Choice Aggregation (CCA), etc., use technology not supplied by the traditional utility industry. • Plug and Play – All will be plugged in and tied to the grid and they must interoperate and play as intended. Conference Technoark Reference: Smart Grid Technology Course Suite, 3 2013-Jan-25 UC Berkeley Extension, Michael M. Hsieh, 2012
  • 4.
    The Democratization ofSmart Energy • Buy Your Own Energy (BYOE) – Solar Power Purchase Agreement (PPA), Community Choice Aggregation (CCA), etc., procure energy not supplied by the traditional utility industry. • Crowd Sourced Technology – Smart microgrids, PPA, and CCA, use facilities not built by the traditional utility industry. • Plug and Play – All will be plugged in and tied to the grid and they must interoperate and play as intended. Conference Technoark Reference: Smart Grid Technology Course Suite, 4 2013-Jan-25 UC Berkeley Extension, Michael M. Hsieh, 2012
  • 5.
    An Example ofSelf-Generation System Micro-Generation systems can be either grid-connected or off-grid. Conference Technoark Reference: Randy H. Katz, UC Berkeley, August 31, 2009 5 2013-Jan-25
  • 6.
    Metro Area VoltageSwells and Sags Challenges and Opportunities • Network State • Condition Based Monitoring • Customer Engagement • Asset Health Mgmt • Distribution Automation • Outage Management • Asset Management • Demand Side Management • Volt VAR Control • Enterprise Resource Mgmt • Workforce Management Conference Technoark Reference: Ankur Varma, Silver 6 2013-Jan-25 Spring Networks, March 6, 2012
  • 7.
    Solar Power PurchaseAgreement (PPA) The Purchaser only bought the Power. Not the System Conference Technoark Reference: Matt Gudorf, UC Irvine, 2008 7 2013-Jan-25
  • 8.
    Solar PPA’s PowerDelivery Method Buying Leasing Solar PPA Equipment Equipment Upfront Capital Yes Little or None None Maintenance Yes Yes None Required Performance Yes Yes None Risk System Expertise Yes Yes None Required Purchase Yes Yes or Re-Lease None Required Conference Technoark Reference: Matt Gudorf, UC Irvine, 2008 8 2013-Jan-25
  • 9.
    Paying for theElectricity Transmission costs are the smallest part of a consumer’s electric bill – 7 percent on average. The remaining parts of an electric bill can be attributed to costs from: • Generation – 68% • Distribution – 24% Conference Technoark http://www.modernizethegrid.com/modernize-the-grid/ 9 2013-Jan-25
  • 10.
    Example: CCA inCollaboration with IOU CCA CCA Responsible for IOU Responsible for Home or Business buying and building delivering energy, energy supplies repairing lines, and serving customers CCA: Community Choice Aggregation IOU: Investor Owned Utility PG&E: Pacific Gas & Electric, Northern California, USA Conference Technoark Reference: Lean Energy US, October, 2011 10 2013-Jan-25
  • 11.
    Campus Level SmartMicrogrid Examples Site of Microgrid Attributes Load: 42 MW Peak UC San Diego1 Self-Generation: 37 MW Peak Stanford Load: 50 MW peak University2 Self-Generation: 30 MW peak Load: 11 MW peak A Shipyard3 Savings in Electric Bill: ~$23M in 10 years An Engineering Load: 3.5 MW peak Center3 Savings in Electric Bill: ~$10M in 10 years Microgrids can be viewed as an energy consumer having its own utility company. 1. Byron Washom, UCSD, 2011 Conference Technoark 2. Joseph Stagner, Stanford University, 2012 11 2013-Jan-25 3. Pike Research, 2012
  • 12.
    Solar Power atHopkins Parking Structure at UC San Diego Conference Technoark http://www.marketplace.org/topics/sustainability/power-building-bigger-batteries 12 2013-Jan-25
  • 13.
    Segmentation of USEnergy Consumers Segments % of Total Attributes and Opportunities Population Members of this group are most protective of the Concerned 31% environment and supportive of smart grid initiatives. They Greens are highly likely to participate in energy management programs. They can be viewed as Early Adopters. This group doesn’t know much about smart grid but is Young 23% interested in learning about its potential for America environmental benefits and cost savings. This group of consumers has the highest income per Easy 20% capita comparing with all other segments. They are very Street comfortable with their current life style and are reluctant to change their personal behaviors. This group of consumers is frugal and has a do-it-yourself DIY & Save 16% (DIY) life style. Their biggest concern is providing for their family, not the global environmental issues. This group tends to be older, set in their ways and do not Traditional 11% see the need for energy reform. Factsheet, and education regarding smart meter accuracy, health, and privacy could perhaps offset concerns with the technology. Conference Technoark Reference: Smart Grid Consumer Collaborative, January 23, 2012 13 2013-Jan-25
  • 14.
    Traditional Biz Modelof Utility Industry • US Utility industry have built, operated, and maintained a mission critical infrastructure 24x7x365 for 130+ years. • Utility industry produce, market, and deliver “workhorse electrons” to consumer’s doorsteps at a regulated “price per kilowatt-hour” like Entitled Commodity. • Utility industry carry heavy inventory of asset, skill set, and personnel. • Not a very healthy nor readily sustainable business model in the 21st century. Conference Technoark Reference: Smart Grid Technology Course Suite, 14 2013-Jan-25 UC Berkeley Extension, Michael M. Hsieh, 2010
  • 15.
    Could Utility IndustryTake a New Biz Model? • Utility Generated and Utility Operated-and- Maintained Energy offered as a “societal” Service like Fire Service, Medical Service, Police Service, Societal Defense Service (e.g., US National Guard of each individual state) etc. • Service premium charged according to the different levels of service agreement – hint, similar to the way the insurance industries work in US. • This would be a model for the consumerized and democratized Smart Energy industry. Conference Technoark Reference: Smart Grid Technology Course Suite, 15 2013-Jan-25 UC Berkeley Extension, Michael M. Hsieh, 2012
  • 16.
    Need New Workforcefor Smart Energy Industry • Boots on the Ground – Take care of the smart grids and smart microgrids 24x7x365 as the first line of defense. • Brains at the Desk – Manage the distributed control, the big data, the (external as well as internal) customer engagement, the consumerization and the democratization of smart energy. • Thought Leaders at the Helm – Lead and retain the “smart energy” workforce into the new business era. Conference Technoark Reference: Smart Grid Technology Course Suite, 16 2013-Jan-25 UC Berkeley Extension, Michael M. Hsieh, 2012
  • 17.
    Opportunities for Investments • Observability of all kinds of grid • Controllability of all kinds of grid • Communication Infrastructure for all parties • Friendly and effective Customer Engagement • Situational Intelligence and Predictive analytics • Workforce Development • Education of the general public • Smart Energy Storages, Smart Energy Systems, Smart Cities, Smart Governance • Security for Critical Infrastructure Conference Technoark Reference: Smart Grid Technology Course Suite, 17 2013-Jan-25 UC Berkeley Extension, Michael M. Hsieh, 2012
  • 18.
    What’s In ItFor Me – the Consumer? • Better Choices – Consumer and/or Prosumer • Better (Quality of) Life • Features Wanted by the People, Assets and Properties of the People, Service for the People Conference Technoark Reference: Smart Grid Technology Course Suite, 18 2013-Jan-25 UC Berkeley Extension, Michael M. Hsieh, 2012
  • 19.
    Smart Grid: AOnce In a Life Time Opportunity Conference Technoark Reference: George W. Arnold, NIST, July 19, 2009 19 2013-Jan-25