American Electric Power (AEP) Virtual Power Plant Simulator (VPPS)

1. American Electric Power (AEP)Virtual Power Plant Simulator (VPPS) Tom Jones, Manger – Corporate Technology Development American Electric Power Grid-InterOp 2009 Denver, CO Nov 17-19, 2009

2. Virtual Power Plant Simulator (VPPS) VPPS Foundational System South Bend, Indiana AMI / AMR 10,000 Smart Meters • Mesh Network Communications • End-use Tariffs • End-use Controls (Thermostat) Dolan Technology Center - Laboratory Test Bed for Modeling Real Resources • Renewables (PV, Wind) • Demand Response • Storage • Distributed Generation VPPS • Changes to existing architecture (if applicable) • Interface implications to legacy systems • Architecture Considerations for Emerging/changing requirements • Improved Benefits from Architecture Changes • Overall Project Lessons Learned (3-5 Slides) • Topics could be wide ranging (project planning, resources, stimulus implications, software integration, hardware installation, customer acceptance, etc.) • What surprised you? What information would member utilities find interesting? • Q&A

3. AEP Smart Grid Demo Topology • Changes to existing architecture (if applicable) • Interface implications to legacy systems • Architecture Considerations for Emerging/changing requirements • Improved Benefits from Architecture Changes • Overall Project Lessons Learned (3-5 Slides) • Topics could be wide ranging (project planning, resources, stimulus implications, software integration, hardware installation, customer acceptance, etc.) • What surprised you? What information would member utilities find interesting? • Q&A

4. Changes to Existing Architecture Distribution Secondary and End-Use Advanced Monitoring, Communications & Control Energy Storage LG Electronics Utility OperationsCustomer Premise “High Demand Period” “Delay wash 2 hours?” “Please respond Yes or No” Customer Portal or Meter Advanced Monitoring, Communications & Control PHEV Distribution Operations Adapted from EPRI source image

5. Changes to Existing Architecture Distribution Primary System 2. Capacitor Automation a. Monitor status b. Monitor VAr req’ts c. Control to optimize VAr supply . Station Feeder Circuit Breaker C Station Communications Switches Capacitors NC Capacitors NO Switches NO NO C PHEV NC C NO C Station AMI Station NO Energy Storage/DER 3. Automated Meter Infrastructure a. Outage notification b. Automatic meter reading c. Monitor voltage and load d. Gateway to Home Area Network 4. Demand Response and Distributed Energy Resources a. Monitor and control end-use devices b. Monitor and control DER systems and devices c. Integrate into power system optimization Station

6. Changes to Existing Architecture The Integrated Power System Storage Wind Fuel Cell ≈ ≈ ≈ ~ ~ ~ Control Point Solar Residential ≈ ≈ ≈ ≈ Monitoring & Optimization Center ≈ ≈ Industrial NO/NC ≈ ≈ Regional Aggregation/ Control ≈ Commercial

7. Interface Implications to Legacy Systems The Virtual Power Plant Simulator • Models “Load” as Controllable within bounds: Real and Reactive Power • Looks beyond the station to the end-use and customer • Considers load as a “resource”, including distributed energy resources, that could be controlled to relieve system constraints • Considers the distribution system as a potential resource for contingency planning • Changes to existing architecture (if applicable) • Interface implications to legacy systems • Architecture Considerations for Emerging/changing requirements • Improved Benefits from Architecture Changes • Overall Project Lessons Learned (3-5 Slides) • Topics could be wide ranging (project planning, resources, stimulus implications, software integration, hardware installation, customer acceptance, etc.) • What surprised you? What information would member utilities find interesting? • Q&A

8. Considerations for Emerging/Changing Requirements Tariff Flat Rate Real Time Pricing Demand No Control Critical Load Only Storage Daily Cycle Instant Response PHEV On-Peak Charge On-Peak Discharge Fossil DG Backup Only On-Peak Supply Solar Cloudy Sunny Wind Calm Windy Fuel Cell Min Base Supply Max Base Supply Backup Only Full Demand Supply External Output (e.g. Cost) $ Supply Energy Deficiency Demand Internal Power Surplus Energy Daily Time Cycle The Smart Grid “Control Panel”

9. Improved Benefits from Architecture Changes • Optimizes resource allocation across power system • Harmonizes grid operation from end-use to RTO • Enables adoption of renewable and distributed resources • Permits real time optimization of system under current operational opportunities and constraints • System constraints • Market value • Environmental constraints • Simulation prior to mass deployment reduces investment and operational risk • Changes to existing architecture (if applicable) • Interface implications to legacy systems • Architecture Considerations for Emerging/changing requirements • Improved Benefits from Architecture Changes • Overall Project Lessons Learned (3-5 Slides) • Topics could be wide ranging (project planning, resources, stimulus implications, software integration, hardware installation, customer acceptance, etc.) • What surprised you? What information would member utilities find interesting? • Q&A

10. Overall Project Lessons Learned • Vision of Smart Grid as a Virtual Power Plant appears technically achievable • Operational requirements and impacts need to be understood and optimized • Economics and system benefits need to be understood and quantified to optimize resource allocation • Alignment of vision and public policy is needed to effectively capture societal benefits • Collaboration between industry, academia, and government is required • The EPRI/AEP Virtual Power Plant Simulator (e.g. OpenDSS platform) Smart Grid Project permits stepwise evaluation of the various systems and components of a smart grid, including cross-impact analysis • Changes to existing architecture (if applicable) • Interface implications to legacy systems • Architecture Considerations for Emerging/changing requirements • Improved Benefits from Architecture Changes • Overall Project Lessons Learned (3-5 Slides) • Topics could be wide ranging (project planning, resources, stimulus implications, software integration, hardware installation, customer acceptance, etc.) • What surprised you? What information would member utilities find interesting? • Q&A

11. Thank You! Q&A • Changes to existing architecture (if applicable) • Interface implications to legacy systems • Architecture Considerations for Emerging/changing requirements • Improved Benefits from Architecture Changes • Overall Project Lessons Learned (3-5 Slides) • Topics could be wide ranging (project planning, resources, stimulus implications, software integration, hardware installation, customer acceptance, etc.) • What surprised you? What information would member utilities find interesting? • Q&A