CURRENT Group, LLC 20420 Century Boulevard Germantown, MD 20874 301-944-2700 CURRENT Group, LLC...
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Transcript of CURRENT Group, LLC 20420 Century Boulevard Germantown, MD 20874 301-944-2700 CURRENT Group, LLC...
CURRENT Group, LLC • 20420 Century Boulevard • Germantown, MD 20874 • 301-944-2700
CURRENT Group, LLCNARUC Panel: Experience with Getting Retail and Wholesale
Incentives Aligned for CustomersNovember 11, 2007
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Leader in Smart Grid services
Integrated communications, sensors, system management, and analytic software solution
Largest global Smart Grid services deployment in progress with Oncor (f/k/a TXU) Electric Delivery in Dallas/Ft. Worth (1.8M homes, 200K businesses, 450K Smart Grid elements)
300 Employees worldwide
Winner of Red Herring’s Top 100 Private Companies for 2006
Winner of 2006 Platts Global Energy Commercial Technology of the Year award of the Year Award
Investors include:
About CURRENT Group, LLC
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Oncor (formerly TXU Electric Delivery)
CURRENT awarded the Nation’s largest BPL / Smart Grid deployment and services agreement ever by Oncor Electric Delivery
Services Include:
– Smart Metering – over 1.8 million meters in Dallas/Fort Worth
– Transformer Deterioration & Overload Detection – 400,000+ transformers
– Outage Detection and Restoration
– Substation Connectivity
– Sale of retail communications services
Actively reading meters and billing customers using system
Present Status
– Over 100,000 homes passed
– May 2007 Texas PUC Rule Making defined requirements for an Advance Meter Surcharge
• As a result, Oncor converting to 100% remote connect/disconnect meters in 2008
Dallas Deployment Map
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Why a “Smart Grid”
Smart Grid can improve energy efficiency and reliability
“If we could make the electric grid even 5 percent more efficient, we would save more
than 42 gigawatts of energy: the equivalent of production from 42 large coal-fired
power plants. Those are plants that we would not need to build and emissions that we
would not produce” (Commissioner Wellinghof, U.S. Federal Energy Regulatory
Commission testifying to U.S. Congress, May 2007)
“A peer-reviewed analysis of 11 studies in 2004 indicated a median achievable
economic potential (savings from the intelligent air conditioner and similar devices), of
24% of total U.S. electricity demand . . . Customers equipped with enabling
technologies (automatic price-sensitive thermostats) delivered a response that was
twice as high as those customers who did not have enabling technology.” (Michael
Howard of EPRI testifying to U.S. Congress, May 2007)
The grid is going to have to be updated to handle 20-30% of renewables that many
state renewable portfolio standards are calling for . . . That can be challenging with
intermittent resources such as wind. . . . Turbines have to shut down to protect
themselves when wind hits 60 mph and if wind blows at night the Danes often have to
shut off other generators. (EPRI President Dr. Steven Specker presenting at the 2007
Deloitte Energy Conference)
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CURRENT Smart Grid™ Vision
CURRENT’s Smart Grid
True “Smart Grid”
Robust Network Management
Diagnostic & Diagnostic & Predictive Predictive AnalyticsAnalytics
• Collection/analysis of sensor & grid device data
• Delivered to utilities and its customers in usable form
Enterprise AnalysisEnterprise Analysis
• High speed, low latency
• Two way, symmetrical• IP-based, open
standards
High Performance High Performance CommunicationsCommunications
• Embedded • Distributed• Real time
Advanced SensingAdvanced Sensing
System-wide System-wide Integration Integration of Devicesof Devices
“. . . a power system that can incorporate millions of sensors all connected through an advanced communication and data acquisition system. This system will provide real-time analysis by a
distributed computing system that will enable predictive rather than reactive responses to blink-of-the-eye disruptions.” (EPRI, emphasis added)
“…Communications is a foundation for virtually all the applications and consists of high speed two-way communications throughout the distribution system and to individual customers.” (CA
Energy Commission Report)
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“Future-Proof” Advanced Metering
Monitored by network management system, CURRENT Look®
“Under the Glass” Smart Grid communications technology
Comprehensive functionality 1-minute increment reads On-demand reads Remote software upgrade capability Proactive alarming for “Unusual” events
Demand-response tools Real-time or peak pricing Time-of-use pricing
Greatly reduced service costs Real-time meter data information can avoid truck rolls Real-time power outage and restoration detection
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Meter Instant Read
An “Instant Read” can be performed on a Smart Grid-enabled meter to display real time usage and other data.
Date/Time when the reading was taken
kWh calculated kWh reading from meter
240V Voltage voltage reading from meter
Positive Pulses # of positive pulses measured (used to calculate usage)
Negative Pulses # of negative pulses detected (used to measure and calculate distributed generation level )
Refresh Collects new reading from meter
0
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Incentives for Demand Response
What’s Missing Now (particularly for residential and small commercial users)
- There is no direct link of savings and value between customer incentive, distribution grid operational value, and capacity value
- There is no method of real-time measurement and verification of DR load reductions by customer, even if the customer is on line during the shed event
- The Generator settlement is based on generic load profile, not actual usage
- There is minimal to no economic benefit for Generators to provide demand response
- Generators have minimal to no incentive because they are paid as if customer has no demand response
Next Steps
- Real-time alignment of retail energy prices with generation and power supply costs
- Base DR opportunities on individual customer’s dynamic base profile information (not generic or sample profiles)
- Develop pricing options and DR incentives that align customer reduction with greatest need
- Reassess value of DR that both is immediately verifiable and creates both capacity and distribution operational benefits
- Decoupling
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Smart Grid - Enabling Dynamic Base Profiles
Definition: A dynamic base profile is an individual customer profile based on daily updated AMR data (15-minute increments)
A Smart Grid is Required:
Real-time access to dynamic base profiles
Real-time measurement and verification of impacts
Advanced meters will enable provision of DR programs as never before
Need greater frequency of meter read capability (e.g., 15 minutes)
Residential, not just C&I customers, can control energy usage
Companies providing DR products will have unlimitedly ability to creatively package services
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Mass Market DR Requires Actual Customer kWh Usage Data
Adoption of DR in mass market will be driven by wholesale pricing/settlements based closely on actual customer kWh usage
Provides appropriate economic incentive for retailers to provide DR
Without retailer incentives, products will not be deployed in areas where customers have advanced meters
Pricing Options for Residential Demand Response Programs
Credits: One-time Enrollment Credit, $25-$100 per household % Discount off total monthly bill:
- based on number of devices (e.g., thermostat, AC, pool pump), e.g. 15% > 5 devices, 10% for 3-4 devices, 5% for 1-2 devices
- based on usage, e.g. $10 for using 10% less energy than previous month
Information Displayed on Bill
Usage: kWh shed = total $$ saved, broken out by peak, mid-peak and non-peakkWh consumption - monthly/annual usage comparison
Distributed Energy: kWh contributed, broken out by peak, mid-peak and non-peak credit for kWh uploaded to electric grid
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Texas Experience
CURRENT is working on DR in the ERCOT market
Structural separation between unregulated generators, regulated transmission of distribution companies, and unregulated retail electric providers (REPs)
Proving more complicated issue than initially thought, but first revisions anticipated in 3Q 2008
Challenges in Texas:
- REPs without DR plans oppose computer programming changes in wholesale settlement process for all REPs if DR is offered by a single REP
- ERCOT IT system, which performs as a third-party clearing house for wholesale settlements between generators and REPs, is not equipped to handle 15-minute (or more frequent) data (which PUCT recently implemented) from more than 50,000 meters – Texas is looking at a deployment of 7 million advanced meters by 2012
- ERCOT budget comes from fee assessed on all consumers, and existing budgets exclude this cost, so PUCT approval would likely be necessary for IT upgrade
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Texas Experience
CURRENT is participating in trials with the Center for Commercialization of Electric Technologies (CCET)
REPs and TDUs still resolving respective responsibilities and system requirements
Smart Grid advancing independently, and with critical benefits beyond DR:
“24/7 Demand Response” - beyond peak times
Network efficiency – utilities no longer have to run “hot” or inefficiently
Shaving 3-5 volts off for millions of end users yields immense savings
Granular Demand Response events on select feeders can help ease grid congestion and improve reliability