Eric Dresselhuys

Smart Grid Project Outcomes: Experiences and Lessons Learned – INDUSTRY PERSPECTIVES: Global and India

EVP

Silver Spring Networks

Global Smart Grid Success

Copyright 2016 Silver Spring Networks

• Numerous success stories from around the world

• Multi-application view is key

• Not everything works

• Suggestions for success

What you will hear today

DescriptionPG&E has networked more than 5.1 million homes and businesses to-date (August 2015)

Operational Network Success

>60MManual Meter Reads Avoided

636kRemote Operations

in 2014

2.16% to <0.1%

Reduced Estimated Reads

Annual benefits reported1

• 99.75% meter read performance (all meters)• 98.5+% daily on-demand performance• Daily volume* of 2k-3k RCD operations

1 Source: PG&E

Copyright 2016 Silver Spring Networks

DescriptionImproved customer service with remote service switch

Expanding Options for

Customers

Disconnects

for non-pay

Same-day

re-connection

requests occur

after 3pm

Example of

disconnect,

payment, to

re-connect

Initial Results

• Extended payment options

• Option to pay until 11:45pm day prior to disconnection

for non-payment

• Extended hours for same day re-connection,

7pm vs 3pm

• Re-connection happens quickly

Decreasing

by 10-20%

>50%

500Up to 500

connections in

1 day

17 Mins

Copyright 2016 Silver Spring Networks

Faster Restoration: Superstorm Sandy (& Nor’Easter)October/November 2012

8 million left without power

across the NE

~One million w/ power

unrestored a week later

Public outrage over delays in

restoration

Smart grid technology sped recovery

“[Smart meters] enable us to dispatch crews

more efficiently, allowing them to focus on

areas of possible damage instead of going

out to locations where power has already

been restored-Jeanette Mills, Chief Customer Officer, BGE

• PHI restored power to all DC

customers within 48 hours of

storm hitting

• Received kudos from Sec. of

Energy Chu for fast response

~$25M per day

Avoided storm mutual

aid costs

(for 1M customers)

Sources: Various. See slide notes.Copyright 2016 Silver Spring Networks

Description

Remote Outage Checking

Initial Results1• Power outages are often caused by problems within

a home, such as a tripped circuit breaker

• AMI enables reps to remotely check whether an

outage is on the utility or customer side of the meter,

reducing unnecessary crew dispatches and customer

outage time

1 Source: MIT Technology Review (May 2013)

42k per

year

~2 hours

Eliminated

truck rolls

Reduction in

outage

duration per

case

Copyright 2016 Silver Spring Networks

Description• Data analytics software identifies tampered, by-

passed or failed smart meters

• 20+ algorithms use utility and 3rd party data to

generate leads

• Benefits include:

• Improved customer and utility safety

• Reduced revenue loss

• Reduces resources required for investigations

• Platform for future data-based decision making

Revenue Protection

Results (2013)1

Incrementa

l $ billed

per

customer

1 Source: A Case Study on the Revenue Protection Software: Sacramento Municipal Utility District Smart Grid Demonstration (EPRI, December 2014)

Incremental

$ collected

per

customer

Graphic display of investigation sites within the SMUD Service Territory

$2.90

$0.65

Copyright 2016 Silver Spring Networks

Transformer Load Management w/ AMI

Description

• AMI data used to determine accurate,

hourly load profiles for 5,400 transformers

to identify over-loading

1 Source: Innovations from Across the Grid, Edison Foundation, Dec. 2014

Avoided customer interruptions and power quality issues

Capital savings and avoided losses due to improved equipment sizing

Reduced environmental disturbances, safety issues and property damage

Fewer truck rolls for outage response

Benefits1

Copyright 2016 Silver Spring Networks

Successful Operational Savings through C&I AMI

Description

• Deployed AMI to 24,500 large C&I customers -representing more than 40% of CPFL’s revenue - that required individual truck rolls for billing

• AMI network deployed across a challenging and sparse geography

Monthly truck

rolls avoided

Results to date1

23.4k

$2.1M

Estimated

annual savings

in readings,

billing and

inspections

1 Source: Valor Economico (03/02/2015) interview with Paulo Bombassaro

CPFL’s C&I AMI network

CPFL used to send a vehicle and two

electricians to do the reading of high-

voltage customers. What was done in

two hours …now we do in 0.04

seconds- Paulo Bombassaro,

Director of Engineering CPFL

Copyright 2016 Silver Spring Networks

Description

CitiPower and Powercor’s Meter Outage

Notification system leverages AMI data to manage

outages

The system enables:

• Earlier outage detection

• Quicker restoration of supply interruptions

• Real-time interactions with customers via SMS,

Mobile Apps, and Email

2014 Australia

Business Award

winner for

Innovation

Results1

1 Source: Australia Business Awards (link)

AMI-based Outage Management

Operational

Savings (2013)$7M

Copyright 2016 Silver Spring Networks

Better Reliability with Multiple DA Apps

Minutes of Customer

Interruptions Avoided

per Year

Estimated Annual

Opex Savings

Customer outages that

will be avoided by FPL

detecting transformer

issues

Annual benefits reported1

• 4.6 million smart meters

• 3,800+ remote fault indicators

• 1,300+ capacitor banks

• 1,000+ automated feeder switches

• 750+ line/transformer monitors

1 Sources: U.S. Dept. of Energy Report – Smart Grid Investments Improve Grid Reliability, Resilience, and Storm Response; Innovations from Across the Grid,

Edison Foundation, Dec. 2014

Description

Improved storm response and grid reliability with

multiple DA applications on a single network

5.1M

$30M

10K

Copyright 2016 Silver Spring Networks

Fault Detection and Management

Description1

• Automatic detection of faults and rerouting of

power

• More efficient operation and faster power

restoration

• 55% of customers served by circuits with

automated distribution devices (reclosers and

switches)

• 3,500+ DA devices installed

Initial Results2

~3.3

million

Utility

Substation Automated switch with

SSN DA comms

SSN Bridge MasterDMS/

SCADA

1. Source: ComEd Progress Report

2. “Innovations from Across the Grid,” Edison Foundation, Dec. 2014

Customer

outages avoided

since 2012

DMS/

SCADA

[Infrastructure] investments have

resulted in ComEd’s best year-

end reliability performance (0.99

SAIFI) and customer satisfaction

rate on record.

- The Edison Foundation

Utility

Substation

Copyright 2016 Silver Spring Networks

Significant Savings from VVO / CVR

Description

• Monitor voltage at end of line

• Reduce (and flatten) voltage from substation to

reduce excess power delivered to customers,

while meeting regulated lower limit Energy

Savings

Peak

Demand

Reduction

Initial Results1

126V

114V

118V (?)

Regulated

lower limit

118V

Reduce voltage

(and flatten)

1 Source: AEP published results

2.9%

2%-3%

Copyright 2016 Silver Spring Networks

Driving Demand Response

across a Full Service Territory

Description

• OGE’s Positive Energy SmartHours dynamic pricing program

• More than 110k participants enrolled with target of ~150k (20% of customers)

• Silver Spring Smart Grid Platform-enabled ecosystem of devices & software

• Devices/solutions used:

Average savings

per residential

customer

Results to date1

$152

155 MW

Current

capability of

peak demand

reduction

PCT

CustomerIQ

Consumer

Engagement &

Marketing

1 Source: OGE presentation in Distributech 2014

Smart Meter

Ads

Videos

TV

Average savings

per commercial

customer

$305

Copyright 2016 Silver Spring Networks

Successful Peak Pricing

Savings

Description

• More than 1 million smart meters deployed1; 387k dynamic pricing participants in 2014

• Default TOU rates for residential and small commercial customers

• Residential rates vary from 7.2 to 11.6 cents/kWh; TOU rate pilot for Electric Vehicles

Results achieved in 20142

Capacity price

mitigation to all

BGE Zone

Customers

$28M

1 Full Deployment started in 2012 and expected to finish by end of 20152 Source: Case No. 9028: Fourth Quarter 2014 Metrics Report of Baltimore Gas and Electric Company

$7M

Avoided T&D

infrastructure due

to reduced peak

load

$9M

Auction results

from bidding

dynamic pricing

in PJM

Copyright 2016 Silver Spring Networks

Solar Integration –New and legacy systems

Demand Response – Pricing + direct load control

Advanced Metering Infrastructure

Customer Engagement

Distribution Automation –Grid monitoring, energy

storage

Silver Spring

Network

Description• Hawaii Clean Energy Initiative targets 40%

renewable energy for the state

Renewables Research

Leveraging DR to integrate more renewables &

Exploring smart inverters (built in

VAR mgmt)

Customers excited to be able to manage and control their

energy bill and usage

Benefits

Renewables Integration

Smart Energy Platform Transfers to Smart Cities

City of Copenhagen

• EU’s most sustainable city

• Network-as-a-Service Model

• Anchor tenant of 20K lights across five manufacturers

• Immediate plants to evaluate/deploy range of sensors

City of Paris

• Pilot for both street lights and traffic lights

• City-wide sub-GHz mesh – capacity for more services

• Network canopy of 18K street lights

• Poodle protection!

Huge Street Light Overlays at Utilities

• Over 1 million street lights under management

• Further enhancing radio mesh coverage

• Driving street light vendors to tight integration

• Leverage for environmental sensors

Doing More Key to Business Results

* Based on publicly available U.S. smart grid business/rate cases and includes Silver Spring internal estimates

Operational benefits from AMI are now nearing

breakeven

Adding DA can create a positive business case without any

consumer behavioral change

Engaging customers with DR/EE programs creates additional

benefits and new business model opportunities

B/C ratio: ~1 B/C ratio: ~1.4 B/C ratio: ~1.7

290 280

Cost Benefits

AMI

~290 ~280

290 280

105280

Cost Benefits

DA

AMI

~395

~560

290 280

105280

30

105

10

85

Cost Benefits

DA

AMI

~435

~750

EE

DR

Average U.S. Smart Grid Business Case* $/customer, electric only, PV over 20 years

Copyright 2016 Silver Spring Networks

Copyright 2016 Silver Spring Networks

• Failure Modes• “Failure to Launch”

• “Failure to Deliver”

• “Failure to Sustain”

• Networking / Platform most likely ‘Point of Failure’• Insufficient reliability across applications & geographies

• Insufficient capacity

• Proprietary / non-Standards

• Parts vs. Solutions

Not Everything Works!

Copyright 2016 Silver Spring Networks

• Plagiarize!

• You will do more that you think – plan ahead

• Standards are key, interoperability is critical

• Differentiate cost from value

Suggestions

“THANK YOU”