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SUMMARY ON SMART GRIDS & SMART METERS

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AMR - Automatic Meter Reading

AMI – Advanced Metering Infrastructure

AGI – Advanced Grid Infrastructure

BenefitsRevenue mgmt.Reduced intrusion

Circa 1985 Circa 2000 Circa 2007

Typical Functionality

Monthly kWh readings

Daily kWh readings Disconnect

/ reconnect

On-demand reads

Outage management support

Load control

Limited hourly data

Expanded hourly data

Demand Response

Downline automation

Home area network interface

TechnologiesWalk-by radio

Drive-by radio

Fixed radioPLC – 1 way

PLC – 2 way

Fixed/Tower RF–2 way

Star and mesh radio

Broadband/WiMax??

Customer serviceOutage restorationAsset management

Enhanced customer svc.Outage identificationSystem planningReduced losses

Demand responseFeeder automationWeb applications

?

Evolution of Advanced Metering

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• Planning• CIS• GIS• OMS• WFM• AVL• Asset

Mgmt• Others

• AMI• SCADA• Crew

Dispatch• Generation

& load dispatch

• Others

Data Acquisition and Control

Data Management

Engine(s)

Integration Bus

ApplicationsWide Area Network Strategies• Backhaul / bulk• Medium to broadband• Data, video, voice• Public and private• RF, fiber, satellite

Local Area Network Strategies• “Last Mile” and AMI

systems• Low to Medium band• RF and PLC

Home Area Networks• Emerging

technologies• Zigbee, Insteon, Z-

Wave, 6LoWPAN, etc

Home automation & generation

Meters

Down-line automation & asset management

Crew Mgmt.

Substations

Typical Smart Grid components

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Core AMI Technology PLC RF Mesh RF Tower Digital Cellular WiMAX / WiFi

VendorsAclara

CooperL+G

Cooper ElsterItron

Landis+Gyr SilverSpring

Tantalus (hybrid)

Trilliant

SensusAclara

SmartSynchConsert

Other start-ups

SkyTeqOther start-ups

Optimal deployment scenarios

Rapid, system wide

Rapid, system wide

Rapid, system wide

TargetedTrial system (in 2

– 3 years)Communications status Power-Line Unlicensed Licensed Public Public

Maturity of systems High Moderate Moderate Very Low Very Low

Capital cost of Infrastructure : annual operating expense

Medium : Low Medium : Low Medium : Low Low : High High : Medium

Data throughput Low to moderateModerate to

highModerate to

highModerate to high Very High

Ability to serve customer based SmartGrid applications

Low to medium Medium to high Medium to high Medium to high High

Ability to serve SmartGrid applications

Medium High High Low High

Summary Technology comparison

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Need for MDM:

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Multiple data sources

Accurate and timely data

Secure data storage

Create and disseminate information

• AMI• Manual

Readings• SCADA• OMS• MWF• Other

• Validating, Editing and Estimating (for hourly data)

• Standards and rules for service order creation

• Proactive assurance of data availability

• Audit trail

• Securely manages 1,000 times more data/meter than CIS or AMI systems can.

• Tags for weather, demographic and other operational characteristics

• Manage and access non-traditional meter data, e.g., PQ, volts, etc.

• Interface to billing systems• Interface for Customer

Service Reps• Create TOU billing

summaries• Provide summary data • Support operation &

planning needs • Platform for customer web

presentment

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Motivation for the Standardization Roadmap

• Support of the vision „Smart Grid“ during realization– The importance of standardization is emphasized in all discussion about

Smart Grid Chapter 3.4 – Benefits of Smart Grids and their standardization

• A lot of standardization activities are starting– Standardization roadmap as basis for a German position in national and

international standardization – Providing the knowledge from R&D projects like the German E-Energy-

Projects in standardization• Intersectoral topic with a lot of stakeholders and interfaces

– Collecting and summarizing various national activities • Information about existing standards and current activities

– „Not reinventing the wheel again and again“

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Motivation for a Smart Grid on the basis of the energy management triangle – political

objectives and technical implementation

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Avoidance of gridbottlenecks Electromobility

Distribution and Renewable Energy Resources

Flex

ibili

zatio

n of

load

Dis

tribu

ted

and

rene

wab

le e

nerg

ies

Ene

rgy

effic

ienc

y

Limitation of netw

ork expansion

Energy efficiency

Distributed and

renewable energies

Com

petit

ion

Ene

rgy

cost

sLi

bera

lizat

ion

Storage Energy efficiency

Limiting

climate change

Replacem

ent of

fossil fuels

Reducing

pollution

Growth in consumption

Energy autonomy Security of supply

Indu

stry

Society

Environm

ent

Political Objectives

Technology / Implementation

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Definition of „Smart Grid“ – One example of the DKE-Committee SMART.GRID

The term „Smart Grid“ (an intelligent energy supply system) comprises

• networking and control of intelligent generators, storage

facilities, loads and network operating equipment• in power transmission and distribution networks • with the aid of Information and Communication

Technologies (ICT). • The objective is to ensure sustainable and environmentally

sound power supply by means of transparent, energy- and cost-efficient, safe and reliable system operation.

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Communication between

system components

Smart Grid – Intelligent Energy Supply

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Interdisciplinary technologies:Data collection, processing and recombination

Market Grid Operation

SmartGrid

SmartGeneration

SmartDistribution and Transmission

SmartConsumption

SmartStorage

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A lot of further definitions about the term

„Smart Grid“ • IEC• European Technology Platform ETP Smart Grids• ERGEG – European Regulators • BDEW - German Association of Energy and Water Industries• NIST National Institute for Standards and Technology• …

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What is a Smart Grid? Like blinded men with an elephant.

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Quelle: E-Energy Jahreskongress 2009, Prof. Gunter Dueck

Various perspectives on a Smart Grid

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Integration into the International Standardization

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IEC Council

SMB

Technical Committees e.g. TC 57

WG13

International Standardization

System operators /suppliers

Manufacturers

Consultants

Academics

Authorities (GOs)

Other organizations(NGOs)

European standardization

Technical Committeee.g. DKE K 952

AK 15

AK 10

National Standardization

System operators /suppliers

Manufacturers

Consultants

Academics

Authorities (GOs)

Other organizations

(NGOs)

WG14

AK 19

WG19

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SMART GRID: WHAT IS IT?

• New metering and communication system, .e.g, “smart” meters: demand response; pricing options

• T&D investments to “modernize” communications, sensors, grid design and operation: manage outages; energy storage; intermittent resources

• Customer side of the meter: In Home Devices

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SMART GRID: JURISDICTION• Federal policies are not mandatory; states have discretion about adopting

any PURPA policies, including Smart Grid policies in the Energy Policy Acts of 2005 and 2007

• FERC regulates wholesale markets and supervises RTOs; required to establish “just and reasonable” rates

• States regulate utility distribution rates (and generation supply portfolios and rate design in states with and without restructuring); approve cost recovery; establish retail tariffs and prices for retail electricity service

• Smart Grid is primarily a matter for state regulation

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Smart Grid: What is the purpose?

• More efficient operations, .e.g. eliminate meter reading and field visit jobs

• Enable Demand Response programs: direct load control, dynamic pricing

• Enable distributed resources to be integrated into grid operations

• Improve reliability of service: outage detection and management

• Improve grid operations and efficiency; integrate renewables

• Link customer’s side of the meter to utility operations: in-home devices, appliances

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SMART METERING

• Advanced or smart meters: Only achieves part of this vision

• Most utilities focus primarily on Advanced Metering systems and rarely propose Smart Grid plans or investment decisions

• Smart Meter proposals often claim to represent crucial part of future Smart Grid plans

• Unknown ratepayer costs for investment to obtain modernization of the Transmission and Distribution grids

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Consumers Have Serious Questions about Smart Metering

• Costs: – Rate impacts– Technology obsolescence– Retire existing working meters

• Benefits: – Operational cost savings: elimination of jobs re meter reading;

field operations– Demand Response: implementation of dynamic pricing– Energy conservation or consumption reduction– Part of implementation of Smart Grid for T&D operations:

integrate renewables; enable Electric Vehicles

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CONSUMER CONCERNS ABOUT COSTS

• Utilities often seek separate tracker to assure cost recovery outside of a base rate case: consumers bear full responsibility for actual costs as they occur

• Potential for higher bills for low use and low income customers

• New technologies: who bears risk of wrong choice? [VCRs vs. DVDs vs. DVRs]

• Smart Metering proposals may be only a downpayment on unknown future Smart Grid investments

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CONSUMER CONCERNS ABOUT BENEFITS

• Benefits are estimated over a 15-20 year period; degree of accuracy never calculated

• To document cost effectiveness, utilities sometimes seek demand response and supply side benefits that make up over 50% of costs and that require estimates of future prices of capacity and energy

• Demand Response benefits have yet to be proven in any full scale implementation of dynamic pricing: customer participation rates; persistence of results; impacts of wholesale market structure on value of DR and means to return this value to customers

• Can low use and low income/elderly customers see benefits or only costs?

• Who bears the risk that these estimates are wrong?

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CONSUMER CONCERNS ABOUT BENEFITS

• Utilities seek to justify their smart metering approach without any analysis of alternative means to obtain DR results from residential customers: direct load control works and is less costly; do not need AMI for this technology

• Utilities typically do not include customer costs to actually bring the usage data into the home or connect to any appliance: in-home devices and new appliances are not cheap!

• Estimated price for the new EV autos? $40,000 and more

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CONSUMER CONCERNS ABOUT DYNAMIC PRICING

• AMI is being used as a justification for demanding that residential customers move to TOU or dynamic pricing as “default”

• Consumers want and need stable and fixed prices for service essential to their health and well being

• TOU rates NOT popular for a reason• Concern about bill impacts on some customer groups:

low income; elderly; disabled. CA pilot results show very low elasticity of demand for low income but rarely studied directly

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CONSUMER CONCERNS ABOUT CONSUMER PROTECTIONS

• Utilities typically couple smart metering with the functionality of remote connection and disconnection of the meter; disconnection for nonpayment should be accompanied by a premise visit and attempt to contact the customer to avoid disconnection

• These new meters may give rise to a host of degraded service options, e.g., prepayment (pay in advance and automatically disconnect when meter is not fed); service limiters

• New privacy concerns will become evident with the access to individual household usage information: Is anybody home? What appliances are being used? Who can access this data and for what purpose?

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SMART GRID AND THE CUSTOMER SIDE OF THE METER: WHO IS IN CHARGE?

• Promoters of a “smarter” grid emphasize how customers can be “empowered”

• Dynamic pricing does not “empower” customers; it presents a Hobson’s Choice to many low use, low income, and elderly customers who must use electricity during peak hours

• Customers prefer Peak Time Rebate option in which customers are rewarded for peak load reduction

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SMART GRID AND ELECTRIC POWERED VEHICLES

• An EV will increase household load factor by 50% or more at peak hours (source: BG&E executive)

• Significant burden on utility transformers and distribution system• What if off-peak usage gets more expensive due to demand?• Questions:

– Who pays: all customers or cost causers? Ratepayers or taxpayers?

– Should this potential development be used to demand TOU rates for all?

– Can plug in devices control time of energy flow?– In home or neighborhood plug in options?

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T&D INVESTMENTS

• Smart Grid investments for T&D systems should be linked to delivery of customer benefits:– Establish a baseline that identifies current status of smart grid

investments in T&D systems– Condition rate recovery to enforceable reliability objectives—

reduce frequency and duration of outages; reduce customer outage costs

– Target distribution investments where they are likely to have most significant results

– Demonstrate ability to integrate intermittent resources and distributed resources

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SMART GRID: REGULATORY RESPONSE

• KEY RECOMMENDATION: Let’s be “smart” about “smart grid”– Utilities should link proposed investments to

specific functionalities– What incremental investments are required?

Who pays?– At what cost? Over what period of time?– What enforceable promises are made to deliver

the benefits to end use customers?

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WE NEED SMART REGULATORY POLICIES FOR SMART GRID

• Endorsement of utilities “wants” based on magic words or inchoate promises would not be “smart”

• Presumption should be for rate recovery that links costs and benefits: utilities must assume some of the risks that their estimates are wrong

• Base rate recovery preferred to separate trackers or surcharges• Smart Grid and smart metering must not be used as a means to

impose dramatic changes in retail rate design for residential customers– Dynamic and time-based price programs must remain optional on an “opt in”

basis– Rewards in the form of credits for peak usage reduction should be the

preferred approach

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OUT LINE What is Smart Meter Why we have to develop Smart Meter Smart Meter to Smart Grid Smart Grid Smart grid functions Obstacles Smart Grid in Other Countries Learn from Other Countries Smart Grid in Taiwan Future Life with Smart Grid

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What is Smart Meter compare with tradition meter

• A new electricity meter which can eliminate many labor-intensive business process

• You can know power using information in every hour, or even in every second

• The part of Advanced Metering Infrastructure ( AMI )

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Why we have to develop Smart Meter

• Greenhouse effect• Economize power by

change our way in using power

• Decrease power wasting caused by meter

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Smart Meter to Smart Grid

• Smart Grid is a concept of use power efficiently

• AMI support the Smart Grid of the future

• Smart Grid provide advance metering

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Smart Grid(1/2)

• keeps track of all electricity flowing in the system• use superconductive transmission lines for less

power loss• It can run at arbitrary hours • the capability of integrating alternative sources• multiple networks and multiple power generation

companies with multiple operators employing • provide the bi-directional metering needed to

compensate local producers of power

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Smart Grid(2/2)

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Smart grid functions • Be able to heal itself • consumers participation• Resist attack• Provide higher quality power • Accommodate all generation • Enable electricity markets to flourish• Optimize assets • Enable higher penetration of intermittent power

generation sources

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Obstacles

• regulatory environments that don't reward utilities for operational efficiency

• consumer concerns over privacy• social concerns over "fair"

availability of electricity• limited ability of utilities to rapidly

transform their business and operational environment to take advantage of smart grid technologies

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Smart Grid in Other Countries(1/2) • Europe

– Grid upgrade plan– Legislation

• America– U.S. stimulus package– “Three Advanced”

• Advanced Hardware• Advanced Software/Systems• Advanced Materials

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Smart Grid in Other Countries(2/2) • China

– An plan to develop a national smart grid by 2020– Smart grid city

• Japan– Island micro-grid: Solar energy– Smart grid island

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Learn from Other Countries

• Technology Upgrade– “Three Advanced”– To improve…

• Integration• Standardization

• Localization– Ex: Renewable source

• User friendly

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Smart Grid in Taiwan• a plan by Taiwan power since 2008

– 1st stage(08~09)• UHV users• AMR (Automatic Meter Reading System)

– 2nd stage(10~11)• HV users• Domestic smart grid

– 3rd stage(11~)• LV users• universal

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Future Life with Smart Grid

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Quotation• http://www.digitimes.com.tw/tw/dt/n/shwnws.asp?CnlID=13&Cat=&Cat1=&id=167866• http://blog.udn.com/ctang/2324868• http://translate.google.com.tw/translate?hl=zh-TW&sl=en&tl=zh-TW&u=http%3A%2F

%2Fen.wikipedia.org%2Fwiki%2FSmart_grid• http://www.youtube.com/watch?v=Qjyugl8Hncw&feature=related• http://www.taiwangreenenergy.org.• http://fund.pchome.com.tw/magazine/report/po/taiwannews/

1850/126702720060795002001.htmtw/Domain/domain-5.aspx• http://www.eettaiwan.com/ART_8800588601_480402_TA_b76706cb.HTM• http://www.libnet.sh.cn:82/gate/big5/www.istis.sh.cn/list/list.aspx?id=5398• “Smart Grid” Thomas J. Gentile, 2009 IEEE-USA Annual Meeting

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