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Integration Challenges of The Intelligent Grid—
Enterprise Integration of DR & Meter Data
Ali Vojdani, Ph.D.CEO, UISOL
October 7, 2008
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Utility Integration Solutions, Inc.www.UISOL.com
UISOL Solution Center in Silicon Valley, CA
• Integration specialist of the utility industry
• Leader in utility industry integration best practices & standards
• Licensed software for managing demand response
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DR Rewards
• DR is critically important • To bridge the grim reserve margin picture in US (135 GW New Generation required,
57 GW planned)• To avoid the unacceptable price volatility we see in wholesale markets today• To remedy the abysmal asset utilization in the utility industry
• DR is a viable resource• E.g., 7000 sites representing 6 GW in PJM Interconnection today• Many customers are willing to participate• Aggregators have been willing and able to provide curtailment services
• DR is economical• EG., BGE estimates that the capital cost of DR is at $165/kW; 3-4 times cheaper
than the cost of installing new peaking generation, which is around $600-800/kW.
• Many other benefits, including• Green• National security• New jobs• Congestion management in grids• Protecting equipments in a SmartGrids
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DR Challenges
GAPS In DR*
• As a resource, DR is more difficult to manage than central generation
• Unless we get better at managing and automating DR, it will become the limiting factor for DR growth
ECONOMIC ELEMENTS
Low cost of participation
Sufficient level of economic benefits
IT ELEMENTS
Flexible DR Business Architecture
Highly Integrated IT Infrastructure for DR
MARKET OPERATIONS
Broad-base of DR programs
Consistency of DR program offerings
Use of DR as a reliable power resource
Scalability of DR Programs
High penetration across customer classes
Voluntary and default programs
High level of customer awareness
POLICY ELEMENTS
Active market monitoring by regulators
Standardized market rules & regulations
Quality assurance standards for DR services
KEYNo Significant DevelopmentEarly Stages of DevelopmentModerate DevelopmentFully Developed
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ECONOMIC ELEMENTS
Low cost of participation
Sufficient level of economic benefits
IT ELEMENTS
Flexible DR Business Architecture
Highly Integrated IT Infrastructure for DR
MARKET OPERATIONS
Broad-base of DR programs
Consistency of DR program offerings
Use of DR as a reliable power resource
Scalability of DR Programs
High penetration across customer classes
Voluntary and default programs
High level of customer awareness
POLICY ELEMENTS
Active market monitoring by regulators
Standardized market rules & regulations
Quality assurance standards for DR services
KEYNo Significant DevelopmentEarly Stages of DevelopmentModerate DevelopmentFully Developed
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Source: UISOL Final Report submitted to California Energy Commission on Project No. 500-01-043, DR-04-01, “California Demand Response Network, April 2005.
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The Curse of Dimensionality
• Dealing with millions of distributed resources would require a different level of sophistication than we have today*
• Some analysts caution that the impact of distributed resources on the utility industry could be analogous to the impact of personal computers on mainframe computing
It takes a 1000,000 KW to get 1 GW
*Most people know how to make a hamburger. Some may even be able to operate a mom and pop fast food joint. Very few can scale it as McDonald.
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DR Management Technology
DR Transaction Volume
Manual Processes
Semi-Automated Processes
Traditional Automation
Next Generation: Dynamic DRM
Modern Automation
Where
We Are Today
Where We
Need to Be
Sophistication
Gap
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Lessons Learned in California
• Beyond a certain level, manual processes become unmanageable
• Goal is to achieve “10x10” improvements in DR performance
• It is feasible to automate DR end-to end with modern business process integration technologies
“A Major Step Forward for Implementation of Demand Response Programs in California, UISOL press release, 8/11/2006
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Expected Process Automation BenefitsSource: Presentation of Pete Langbein of PJM at UIC2008, 9/16/2008
• Quicker participation of DR resources in markets
• Improved transparency for all participants
• Reduce time and administrative costs
• Scalability for higher volume of participation (number of participants and number of transaction per participant)
• Simplify the process to provide more opportunity to participate for small resources
PJM Interconnection coordinates the movement of electricity through all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. This service area has a population of about 51 million and a peak demand of 144,644 megawatts. See also www.uisol.com/new/news/uisol-to-implement-next-
generation-demand-response-management-application-for-pjm/ Source of statistocs and map: PJM.com
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Why is DR Management Complex?
1. Large dimensionality of transaction management• E.G., ,PJM already has to deal with 7000 DR sites, compared with 2000 gen. sites
2. DR Business Network is complex• Many entities are involved in the DR value chain• Many people at each entity• Many DR processes, many tasks• Many interfacing systems
3. DR processes are new and evolving • Process maturity level 1 on a 1-5 scale• Processes are not documented, consistent, measured, or optimized• Processes are extending to residential customers with programmable communicating
thermostats (PCT), in home displays, and home area networks (HAN)• There is a shortage of experienced people• Standards (e.g., for Process and IT) are yet to be developed
4. DR business rules change frequently• Need to keep up with the changes in the (often inflexible) IT applications• As an industry we are not used to rapid change
5. Need visibility to maintain the integrity of DR, including• Audit trail (Who did What, When)• Measurement and verification (M&V) of DR to avoid gaming and ensure reliability
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DR Business Network Is ComplexExample
EnergyCustomer
Energy Service Provider
Curtailment Service Provider
ISO/RTO
DR CommunityUtility
DR Aggregator
Meter Service Provider
MarketMonitor
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DR Business Network Need to Be Integrated
CustomerCustomer
AggregatorAggregator ISOISO
UtilityUtility
Data Integration(e.g., Customer
Information)
Business Process
Integration (e.g., Demand
Bid Processing)
Collaboration (e.g.,
Registration Process)
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DR Processes Touch Many Systems
Key
ServicePoint
Metering System
Data Collection
Control and Reconfiguration
Readings, eventsand status
Controls and signals
Meter Maintenance
Configuration, installation, etc.
MeterData
Management
CustomerInformation
andBilling
Load curves, Measurement history, etc.
NetworkOperations
Tariffs, parameters
On request read
WorkManagement
Install,Remove,
Disconnect,Reconnect
Meter service request
Special read
Outage Management
Power reliability and quality events
Outage and restoration verification
Meter health and tamper detection
Interface and protocol details of the Service Point are outside the scope of
IEC 61968-9
Data obtained by special read
Transaction information
Pointof
Sale
Account information
Planningand
Scheduling
Disconnect/reconnect,demand reset
Outside the scope of 61968
61968 Part 9
Defined by other 61968 Parts
DemandResponse
signals
CustomerDataSet
Meterreadings
Meterhistory
Tokens
Transaction records
61968-10
61968-3
61968-8
61968-561968-3
61968-6
LoadManagement
System
Load Control
Load Analysis
LoadScenarios
MeterReadings
MeterAsset
Management
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DR Touches Many Application Interfaces
Market Management
E_TAGS for the DC line / Before DAM through end of ADJ Period?? / As needed
Energy Management
Transmission Rights Mgt
Settlement &Billing
REGISTRATION
Commercial Systems
NetworkModelManagement
Data Warehouse
TAGGING
EXTERNAL
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Inflexible Systems Cannot Handle Change
The Graveyard of Stranded DR Applications
See “California Demand Response Network”, Final Report on California Energy Commission Project No. 500-01-043, DR-04-01, April 2005.
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Need for Flexible Infrastructure
• We need flexible DR applications that can withstand significant changes in DR tariffs and business rules
• It is often cheaper to buy a new flexible application than to maintain an inflexible one
Impact of 1989 Loma Prieta Earthquakeon San Francisco Bay Bridge
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Implementing DR Enabling Technologies Example-A Utility
ISO
Aggregators
Service Providers
Customers
Devices
AMI Network Collection Engine
IVR
OMS
Demand ResponseManagement
(DRM)
CIS/Billing
System Planning& Asset Management
Field Service/Work Mgt
GIS
AMI Network Collection System
Existing Database
(e.g., MV90)
OperationHandheldHandheld &Mobile
Stan
dard
s-ba
sed
Ente
rpris
e Se
rvic
e B
usOther
Monitoring/SensingDevices, PCTs, …
MDM ApplicationsAggregation
Customer Baseline Load CalculationRevenue Protection
Advanced BillingConnect/Disconnect
AMI Asset MgtCSR Tools
AMI Deployment Support
Data Collection Adapters
Meter Data Management(MDM)
Storage(Configuration
& Usage)
Calculation Engine
Validation, Estimation, and Editing
System Management & Admin. Tools
Reports
Application Interface Adapters
Customer Self Service
SCADA
Analytics/Business
Intelligence
Finance & Accounting
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Integrating the DR Business Network
DR ProcessDefinitions/
Business Rules
Agent(Requestor)
Agent(Approval)
Agent(Responsible)
DR BPM
Application
Y
Application
B
Application
A
Application Z
Other Agents(Substitution/
Escalation)
AdapterNotifications
Task Lists/In-Box
DR Information
Model
DR Information
Model
DR ProcessDefinitions/
Business Rules
DR BPM
Monitoring, Measurement,
ControlDR
Information Model
DR Information
Model
DR ProcessDefinitions/
Business Rules
DR BPM
Monitoring, Measurement,
ControlDR
Information Model
DR Information
Model
DR Bus
*See also www.uisol.com/demand-response/
DRMMonitoring,
Measurement, Control
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Demanding Flexibility From DR VendorsSmart Requirements Specification
Need to add “flexibility” as a key requirement to the list of traditional requirements for:• Performance• Security• Usability• Portability• Availability• Scalability• Reliability
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Ensuring FlexibilityThe Flexibility Test
• Need to add “flexibility test” to the list of traditional tests:• Functionality test• Availability test• Performance test• Security test• Volume test • Integration test
• Flexibility test would be a predictor of change order costs, and should answer questions such as:
• How fast and at what cost can you change an application?• Are small modules of business functions exposed as services, so that they can be
reconnected?• How fast and at what cost can you change an interface?
• While our industry has recognized the need for “interoperability testing”*, the need for “flexibility testing”has yet to be widely recognized.
* See MultiSpeak.org
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Need to Be Proactive in Enabling DR
• To enable growth in DR we need to improve our DR • Processes• Systems • Organization/People
• The best time to improve our DR capability is before we are forced to
• A good starting point is to• Assess where you are, • Where you need to be, and• Design a flexible DR
Transformation Roadmap that can bridge the gap
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Summary
• A major challenge in the Intelligent Grid is integration and management of DR • DR management (DRM) is complex and unless we get much better at it, it will
become the limiting factor in DR growth • To get better at DRM, we need to
• Understand what DR processes are, assess/troubleshoot their performance, and come up with a realistic DR Process Improvement Roadmap that we can successfully execute over time
• Implement a Dynamic DRM Software that can automate and efficiently manage the DR business network
• Design and execute a DR Organization Change Enablement Program to manage the people dimension
• We need to follow a Smart Integration Approach to ensure the DR systems and processes are flexible and can easily incorporate the never ending changes in DR business rules
• Request flexibility• Perform flexibility test• Build flexibility into interfaces
• Meeting these challenges will not be easy but is worth it--there is no better alternative
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References*
• Building an infrastructure for demand response, Power Economics, Volume 5, Issue 9, October 2001.
• California Demand Response Network, Distributech 2006. • How to Get More Response from Demand Response, the
Electricity Journal, Vol 19, No. 8, Oct 2006.• The Missing Link-Every one is in favor of demand
response, but little gets delivered when system operators need it the most., Public Utilities Fortnightly, Special Editionon Demand Response, March 2007.
• Smart Integration-The smart grid needs infrastructure that is dynamic and flexible, IEEE Power & Energy Magazine, November/December 2008
*Authored/Co-authored by Ali Vojdani
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More Information
• UISOL web site: http://UISOL.com• E-mail: [email protected]• Tel: 925-939-0449
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Speaker Bio
Ali Vojdani is the CEO of UISOL. He has over 27 years of experience in the application of IT in the utility industry as part of his professional career at UISOL, Vitria Technology, Perot Systems, EPRI, PG&E, and McGill University.
Ali has been involved in numerous business integration and transformation projects in US, Canada, UK, and Australia. His work on improving resource scheduling at PG&E became the finalist of the 1997 prestigious Frantz Edelman award for the best management science application world-wide.
In 2004 Ali instigated the all new annual Utility Integration Conference (UIC) and has successfully chaired UIC for the last five years. He also regularly conducts training workshops on Business Process Management (BPM) and Demand Response Management for utilities.
Ali has been an evangelist for enabling Demand Response (DR) over the last decade. His work has resulted in the cutting edge software solution DRBizNet for integrating the demand response business network.
Dr. Vojdani has a Ph.D. in electrical engineering and has authored over 60 technical publications.