Analyze. Simplify. Implement. Drivers for Smart Grid projectsOperational Improving Grid Reliability Improve transfer capacity Deployment of AMI & associated IT infra. Renewable integration Expansion of Demand ResponseSocial Lower energy prices Jobs growth Cleaner environment 3
Analyze. Simplify. Implement.Overview of a smarter electric grid Adapted from Walawalkar , Tongia et. al 2007
Analyze. Smart Grid: Simplify. Implement. Best Defined by FunctionalityObjectives of the smart grid are Enabling informed participation by customers Accommodating all generation and storage options Enabling new products, services, and markets Providing the power quality for the 21st century economy Optimizing asset utilization and operating efficiently Addressing disturbances through automated prevention, containment, and restoration Operating resiliently against all hazards Source: US Department of Energy 5 5
Analyze. Simplify. Implement. Emerging Business ModelsElectric Supply Improved Asset Utilization & Reduced Price Risk Integration of Renewables, Distributed Generation & StorageTransmission & Distribution Utilities Smart Distribution Grids Transmission Investment that Can Adapt to Alternative Futures Operations = System Integration + MarketsConsumer Applications Vendor / Utility Partnerships & Competition Energy Management, Productivity, & Consumer Experience Apps Intelligent, Low-Energy Buildings Integrated DesignTransportation PHEVs, EREVs, & EVs with Smart Charging Reuse of Batteries on the Grid 6
Analyze. Simplify. Implement. Challenges for Smart Grid DeploymentDefining and understanding business caseSystem planning & selection of right projectsRegulatory & policyConsumer acceptanceCulture and educationTechnical & Engineering DesignWorkforce training and education 7
Analyze. Simplify. Implement.Role of Electricity Markets in understanding the valueProvides price transparency to quantity value proposition ofvarious EES technologiesMarket Design Access to various markets for energy, ancillary services capacity Generation Supply mix & Demand Curve Market size Locational factors Electric transmission network & interconnection 17
Analyze. Simplify. Implement. Smart Grid (EES) Demonstration ProjectsMajor projects include: CAES demonstration (NY and CA), Renewable Integration (CA, TX, NM), PeakShaving, Community Energy Storage and demonstration of new technologies. Visit www.energy.gov for additional details.
Analyze. Simplify. Implement. Case Study 2: Why Demand Response (DR)?DR can reduce marginal costs of peak production Especially the case where generators are paid market clearing prices under uniform auctionsDR of 5% can mitigate market power, and reduceuneconomical investment in peaker units (as per studies) India has virtually no peaker units – we resort to load-shedding!DR might also manage variability in supply from renewablessuch as wind and solar PV 19
Analyze. Simplify. Implement. Short Run Marginal Cost Curve & Price Duration Curve* This price duration curve shows only the wholesale energy prices corresponding to the generation component of customer’selectricity bill. T&D costs are added onto these wholesale energy costs.