Experience in Smart Grid Development in the United States

1. Experience in Smart Grid Development in the United States Presented at the APEC Energy Working Group Washington, DC Dan Ton Program Manager, Smart Grid R&D November 6, 2012

2. Outline • Smart Grid Landscape in the U.S. • Smart Grid Development by the U.S. DOE • Recovery Act Smart Grid Programs • Smart Grid R&D Program • International Smart Grid Action Network (ISGAN) 2

3. The North American Electric Grid U.S. Figures 22% of world consumption 3,200 electric utility companies 17,000 power plants 800 gigawatt peak demand 165,000 miles of high-voltage lines 6 million miles of distribution lines 144 million meters $1 trillion in assets $350 billion annual revenues 3

4. Key Drivers Toward Future of Electric Grid 2009 2035 • 51% coal • 19% nuclear • 20% natural gas • 3% oil • 6% hydro • 1% other renewable • Changing Supply Mix • Expanding transmission • Increasing system flexibility needs • More natural gas • More renewables • Same or less coal • Same or less nuclear • Same or less oil • 3653 billion kWh • Hybrids, No PEVs • Electrically-sensitive equipment (limited consideration – PQ) • Demand Transformation • Expanding digital economy • Demand-side management • Demand growth • More than 5000 billion kWh • Load curves – increased peaking • PEVs (could increase demand 25%) • More electrically sensitive equipment (2.5x)* • 140 control areas • Energy management systems (<1%) • 180,000 miles of wires • ~10 million DG units • Complexity of Grid • Expanding footprint • Overlay of markets • Operating “closer to the edge” • Nodes within control area increase 5-10x • Energy management systems (70%) • Additional 30,000 miles needed • ~ 22 million DG units (2.5x increase) • Blackouts • Aging infrastructure • Vulnerability of assets • Vulnerability of Energy Infrastructure • Interdependencies of electric and energy systems • Communications & controls • Infrastructure protection • Increased globalization • Materials and resource limitations • All-hazard risks will continue to increase 4

5. Smart Grid Focus Smart Grid Domain Generation Transmission Distribution End User Cleaner generation technologies Accessing high quality sources of renewable energy and addressing line congestion Accommodating increased use of EV, PV, DG, and consumer participation Improved efficiencies in buildings and industry Seamless connection: two-way power flows and increased data streams Integration of renewables: improved operation, planning, etc. Interface with end users: deployment of AMI, microgrids, etc. System understanding and control: visualization, communications, computation System flexibility for stability: storage, demand response, accommodating increased variability System security: physical security, cyber security, mitigating increased vulnerabilities Institutional issues/solutions must be considered in conjunction with these technology needs 5

6. DOE Smart Grid Implementation Plan Vision A smart grid that uses digital technology to improve reliability, security, and efficiency (both economic and energy) of the electric system from large generation, through the delivery systems to electricity consumers and a growing number of distributed-generation and storage resources Enables Informed Participation by Customers Accommodates All Generation & Storage Options Enables New Products, Services, & Markets Provides Power Quality for the Range of Needs Optimizes Asset Utilization & Operating Efficiency Operates Resiliently to Disturbances, Attacks, & Natural Disasters Smart Grid Characteristics Smart Grid Challenges Advancing Functionality with New Technologies Building a Strong Business Case for Smart Grid Investment Developing Appropriate Standards for Interoperability Forecasting Consumer Participation in Energy Management Enhancing Cybersecurity Sustaining a Skilled Workforce Key Activities Smart Grid Demonstrations and Deployment Research and Development Standards Interconnection Planning and Analysis Workforce Training Stakeholder Engagement and Outreach Monitoring National Progress Source: Office of Electricity Delivery and Energy Reliability 6

7. Smart Grid Investment Grant (SGIG) Deploying technologies for immediate commercial use supporting manufacturing, purchasing, and installation of smart grid technologies Customer Systems Advance Metering Infrastructure ElectricDistribution Systems Electric Transmission Systems Equipment Manufacturing Customer Systems Customer Systems Customer Systems Customer Systems Customer Systems • Displays • Portals • Energy management • Direct load controls • Smart meters • Data management • Back office integration • Switches • Feeder optimization • Equipment monitoring • Energy storage • Wide area monitoring and visualization • Synchrophasor technology • Energy storage • Energy devices • Software • Appliances • 99 projects, $3.4B Federal + $4.6B Private Investments 7

8. Smart Grid Demonstration Program (SGDP) Demonstrate emerging technologies and alternative architectures to validate business models and address regulatory/scalability issues 32 projects, $620M Federal + $980M Private Investments 8

9. Smart Grid Interoperability Standards NIST Smart Grid Interoperability Standards Program 9

10. DOE Analytical Approach Example What does the Smart Grid do? How does it do that? What “goodness” results? What is the goodness worth? What are Smart Grid technologies? Assets Functions Mechanisms Benefits Monetary Value • Capacitor controls • Distribution Management System Automatic Voltage and VAR Control Improves feeder voltage regulation Reduced feeder losses worth $60 per MWh $6000 10

11. DOE Smart Grid Computational Tool (SGCT)*: Tracking Grid Modernization Goals and Calculating the Value of Specific Benefits 11 *Available for download at http://www.smartgrid.gov/recovery_act/program_impacts/computational_tool

12. OE Research & Development Program 12

13. Promotes development of an efficient, fully integrated “smart” grid through the adaptation and integration of digital information and communication technologies into the Nation’s electricity delivery system. Smart Grid R&D Program • Guided by MYPP* focusing R&D on: • DER/DR/PEV integration • Distribution automation • Microgrids • Standards & best practices • Plus crosscut efforts on: • Communications and Outreach (incl. support of the President’s Green Button Initiative) * MYPP available at: http://www.smartgrid.gov/sites/default/files/oe_mypp.pdf 13

14. Renewable and Distributed Systems Integration (RDSI) 5% = ~400 hrs/yr Lower Peak Demand Reduces Infrastructure Investments • 9 demonstration projects in 8 states to integrate use of DER to provide at least 15% peak demand reduction on distribution feeder or substation • Projects are either microgrids or are developing technologies that will advance microgrids • Systems must be capable of operating in both grid parallel and islanded modes • $55 million of DOE funds over five years (total value of awards will exceed $100 million, including participant cost share) 90% 75% 5% 25% of distribution & 10% of generation assets (transmission is similar), worth 100s of billions of US dollars, are needed less than 400 hrs/year! 14

15. PEV Integration FY 2011 Smart Grid-Capable EVSE FOA • Reduce current costs of commercially available EVSE (residential and non-residential), with smart grid capabilities, by 50% in 3 years • Key features: Bi-directional communications; Human machine interface for applications to provide local user input/output; PEV load management & smart controls; Conformance to interoperability, cyber security, and safety standards Source: Transforming Global Markets for Clean Energy Products, IEA (2010) 15

16. Distribution Automation – FY 2010 FOA Awards Advanced Communications and Controls On-Ramp Wireless: Develop a wide area wireless distribution grid sensor and faulted circuit indicator system capable of monitoring underground and other hard‐to‐reach distribution circuits ABB: Develop a real-time distribution feeder performance monitoring, advisory control, and health management system for enhanced asset utilization and grid reliability Integrated Distribution Management System • Seamless integration of AMI & demand response, customer-owned DER, fault location, isolation, & restoration, volt/VAR control, & dynamic reconfiguration for distribution automation • Boeing Distribution Management System • Alstom’s e-terra integrated distribution management system 16

17. Green Button Data and Information Tools Allow consumers to download standardized data file by clicking online “Green Button” to view their energy use information and send to 3rd parties for value-added services • 7 awards announced in May 2012 to demonstrate and adopt information tools to allow consumers to better manage energy use 20 utilities committed to provide Green Button data access to 31 million customers (as of May 2012) • 7 Green Button Apps for Energy awards announced in May-June 2012 to get the most out of Green Button data Standard EUI File Format Value-added Services 17

18. Outyear Smart Grid R&D Funding Opportunity Area, Pending Funds Availability 18

19. ISGAN: What and Why A mechanism for bringing high-level government attention and action to accelerate the development and deployment of smarter electricity grids around the world. • ISGAN… • Fulfills a key recommendation in the Smart Grids Technology Action Plan(released by Major Economies Forum Global Partnership, 2009) • Was launched as one of 11 initiatives under the Clean Energy Ministerial (in 2010) • Is organized as an IEA Implementing Agreement (in 2011) • 22 signatory member nations (as of August 2012) • Six annexes established, with the U.S. leading on Annex 1 • Builds on the momentum of and knowledge created by the substantial smart grid investments being made globally • Will leverage cooperation with the Global Smart Grid Federation and others February 24, 2012 19 19

20. 12 CEM Initiatives • 21st Century Power Partnership(new in 2012) 20

21. ISGAN Principal Focus Areas 21

22. ISGAN Work Portfolio • Annex 5:Smart Grid International Research Facility Network (SIRFN) • Annex 4: Synthesis of Insights for Decision Makers** • Annex 2: Smart Grid Case Studies • Annex 3: Benefit-Cost Analyses and Toolkits • Annex 1: Global Smart Grid Inventory New Projects* Foundational Projects • Annex 6: Power T&D Systems **Knowledge sharing by design *Approved March 2012 22

23. Linkage Among Annexes 1-3 • Annex 2: Smart Grid Case Studies • Annex 3: Benefit-Cost Analyses and Toolkits • Annex 1: Global Smart Grid Inventory • Common projects for assessment/analysis • Identify national drivers and tech preferences • Select projects with strong opportunities for int’l comparison • Qualitative assessment of selected projects (narrative) • Quantitative assessment of selected projects • Common contextual information, metrics, and KPIs 23

24. SIRFN Interests 6 Key Areas 24

25. ISGAN Schedule 25

26. ISGAN is managed by its Executive Committee Consists of representatives of all Participants Meets semi-annually; Next meeting: France, September 2012 ISGAN is supported by a Secretariat at the Korea Smart Grid Institute Email address: isgan@smartgrid.or.kr ISGAN website: iea-isgan.org CEM website: cleanenergyministerial.org ISGAN Management & Resources 26

27. Smart Grid Information Resources Smart Grid Information Clearinghouse Smartgrid.gov • Smart grid project summaries (with focus on non-ARRA projects), use cases, and business cases for the U.S. and internationally • >200 & >50 smart grid projects in the U.S. and overseas; >1,000 smart grid-related documents and multimedia (use cases, c/b analyses, business cases, legislation & regulation, standards, and technologies) • ARRA smart grid project summaries and other Federal program activities • Reporting of ARRA SGIG & SGDP projects (progress, metrics and benefits, consumer behavior studies) and provision of analysis results to the public 27

28. Contact Information Dan T. Ton Program Manager, Smart Grid R&D Office of Electricity Delivery and Energy Reliability U.S. Department of Energy (202) 586-4618Dan.ton@hq.doe.gov For more information: OE:www.oe.energy.gov Smart Grid:smartgrid.gov 28