James Avery

Senior Vice President

San Diego Gas & Electric

United States

The New Smart Energy Era: Managing the Utility Business

in a Changing Landscape

Macro-Drivers of the Smart Grid

• Environment – Incorporate

and enable all generation and storage options to support customer choice, improve grid stability, improve power supply options, reduce GHG

• Customer – Enable energy

markets and motivate customer’s participation in energy management through smart energy devices, new products and services, increased Energy Efficiency (EE)/Demand Response (DR), adoption of PEVs and renewable resources

• Grid – Enhance the grid to reduce

customer disruptions, resist attack, improve workforce and asset optimization, and improve efficiency

In-home/in-premise displays, control of individual appliances, Energy management systems/controllers

Plug-In Electric Vehicle (PEV) Integration, Renewable Resource Integration

Str

ateg

ic C

ompo

nent

s

Large Scale Energy Storage, Phasor Measurement Units, Self Healing Grid, Network Communications

Energy Policy Goals are Driving the Need for Smart Grid Investments• Policy goals demand that we:

• Accommodate higher levels of intermittent renewable resources interconnected to distribution and transmission, as is required by law

• 20% Renewable Portfolio Standard statute; 33% Executive Order and SDG&E CEO commitment

• AB920 FIT requirements requiring utility to purchase energy from customer-generators

• SB17 Smart Grid Deployment Plan by 7.01.2011; Smart Grid OIR

• AB811, PACE, Million Solar Roofs

• Accommodate intermittent load fluctuations that will result fromincreased EV & PV market penetration

• AB32 Greenhouse Gas Emission Reduction

• Alternative Fuel Vehicle OIR; Smart Grid OIR

• Empower energy management behind the meter

• Demand Response OIR; Smart Grid OIR

• Be responsive to rulemaking proceedings at FERC and the CPUC

5

Greenhouse gas

emission1990 levels

(15% reduction from current levels)

Renewable Energy20% of the load with

20% biomass

2000 2010 20162012

80% below

1990 levels

3,000 MW of

distributed PV

100% of zero net energy

residential constructions

100% of zero net energy

commercial constructions

33% of the load with

20% biomass

2012 – 2020: 4500 MW / 16 GWh (elec)

620 Million Therms (gas)

2020

Energy Efficiency,

including DR

MandatoryEO S-14-08EO S-06-06

MandatorySB 1078 – SB 107

EO S-06-06

IncentiveMSR

MandatoryEO S-3-05

ReliabilityCA Resource Adequacy

requirementFERC must-offer

requirement

MandatoryR06-04-010 D08-07-047

MandatoryR06-04-010 D07-10-032

10% reduction of total forecasted

electricity consumption

200,000 solar water heaters systems IncentiveAB 1470

MandatoryAB 2021

Energy Storage

2017 2019 2030 20502014 2025

Targets in process to be

established for 2015 and 2020

TREC Market*

MandatoryAB 2514

MandatoryR06-02-012 D10-03-021

(*) Tradable Renewable Energy Credit Market: April 2010 (with IOUs limits until 2012) Source: EPRI

California Energy Policy Elements (2010)

Factors Driving Need for Energy System Change

• Centralized renewables• Intermittent availability issues

• Increased volume threatens grid stability

• Distributed renewables (rooftop solar)• No control, can’t see it, no communication

• Power quality issues will increase

• Electric vehicles• Current system cannot manage potential volume

• Overall consumption may rise significantly

• National security• Attacks on energy systems

• Economic impact

• Customer Empowerment• Choice, Control, Convenience

• Smart Appliances, Smart Charging, Smart Rates

Job of managing grid getting more complex; need to leverage technology

Large IOU Renewable Resource MixExpected to Change Over Time

Intermittency: Photovoltaic Panel Output Variations

Graph: CAISO

Image: sdge.com

Images: US DOE

Image: SCE

Intermittency: California Wind Resources

Data source: “ISO Balancing Authority Area Hourly Wind Generation Data for 2009”, CAISO

February 2007

Overspeed Wind Shutdown

“Wind Event on February 24, 2007”,ERCOT presentation, C. Gonzalez-Perez

Intermittency: Texas Overspeed Event

Sodium Sulfur (NaS) Batteries

Image: Electricity Storage Association

Images: NGK Insulators

Normal operating temperatures of 575-650˚ F

34 MW NAS INSTALLATIONfor 51 MW Wind Farm

Rokkasho, Japan

Distributed Generation

CEC PV Forecast and SDG&E Actual AC Nameplate Capacity

1MW PV - 10 Minutes on a Cloudy Day

PV Penetration 2009

PV Penetration 2014

Values are for illustration only and do not represent forecasts

Roll-out Schedule for Plug-in Electric Vehicles

2009 2012 2010/2011 2010

BYD in Europe

Fisker Karma

Subaru Stella

Chrysler

Smart for Two

ZENN City

BYD EV in China

Tesla Roadster

Saturn VUE

Mitsubishi iMiEV

Chevrolet Volt (5.3kW charge)

Kia LPG/Electric

EPRI, Eaton, Ford Trouble

Truck

Nissan LEAF

BMW Mini E (7.7kW charge)

Toyota Prius

Aptera BYD F3DM

Ford Escape

Hyundai

BEVPHEV

Tesla Roadster Prius PHEV Prototype BYD F3DMNissan Leaf53kWh, 17kW@240V, 70A

3.5 hr charge24kWh,3.3kW@240V,13A

8 hr charge

Electric Vehicle Charging

Source: EPRI

Power demand from “badly” controlled charging – a new, potentially disruptive peak

Controlled overnight charging could result in no increase in peak load

Many drivers share patterns and arrive home near the same time A typical level 2 EV charge, 220V

@ 30a could draw 6.6kW power

Smart Meter and Home Area Network

Network to Meter

Smart Meter

Internet

Electric Vehicle

Battery Storage

Gas Meter

A/C

HANHAN

Pool Pump