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Open Access Technology International, Inc. www.oati.com

Terry Mohn

Smart Grid Tutorial

Executive Consultant

OATI

Smart Grid Tutorial - 21st Century Grid


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OATI Offerings Overview

DR-DER Management

End-to-End Operation

Scheduling

Compliance

Trading

Risk Management

Market Solutions

Congestion

Renewables

©2016 OATI, Inc.


• High use of renewables: 20% – 35% by 2020

• Distributed generation and microgrids

• “Net” metering – selling local power into the grid

• Distributed storage

• Smart meters that provide near-Real Time (RT) usage data

• Time of use and dynamic pricing

• Ubiquitous smart appliances communicating with the grid

• Energy management systems in homes as well as commercial and industrial facilities linked to the grid

• Growing use of plug-in electric vehicles

• Networked sensors and automated controls throughout the grid

What Does the Smart Grid Look Like


• Increased penetration of renewable energy into the generation mix

• Increased technology within the utility

• Dynamic monetary and electrical exchange between the customer and the utility

• Distributed Energy Resources (DERs) are the normal state (generation, storage, controls, building automation)

• Standard approach for physical and cyber interconnections

• Highly economic, reliable, and resilient distribution

Grid 3.0


The Smart Grid Business Environment

SmartGrid

Variable Generation

AgingInfrastructure

RenewableResources

GreenhouseGasses

SupplyEconomics

CapacityLimitations

OperationalEfficiency

CustomerSatisfaction

Economics & Efficiency

Conservation &Demand Response


Traditional Operations

Demand

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0:00

4:40

9:20

14:0

0

18:4

0

23:2

0

4:00

8:40

13:2

0

18:0

0

22:4

0

3:20

8:00

12:4

0

17:2

0

22:0

0

2:40

7:20

12:0

0

16:4

0

21:2

0

2:00

6:40

11:2

016

:00

20:4

0

1:20

6:00

10:4

015

:20

20:0

0

0:40

5:20

10:0

014

:40

Load

Load Forecast, Demand Bid

Economic Supply

WholesaleSupply

Reliability

Economics


Demand Response

Demand Response Offer- Capacity, Energy- Ancillary Services

The New Smart Grid Paradigm

Reliability

Economics

Environmental

PHEV

Smart Appliances

Distributed Resources

Variable Gen.Variable Generation

WholesaleSupply

Demand


Scope of Smart Grid


Elements of “The” Grid

Smart

Generation

Smart

End Use

Smart

Grid

Centralized Distributed

Baseload

CHP

Peaking

Critical / Backup

Remote Power

Smart Storage

Transmission Distribution

Asset Management

Back Office Software

Load Management

Advanced Metering

Energy Mgmt

Systems

Power ElectronicsCommunications

& Control

Site Planning

& Design

Grid Monitoring

Grid Automation

Residential

Small Appliances

Commercial /

Industrial

Smart Meters

& Devices

Energy Consulting

& ESCOs

Building Automation

Smart Energy

Computers, Electronics, Advanced Materials


• Detect emerging problems and fix them before they seriously impact quality of service

• Incorporate extensive measurements, rapid communications, centralized advanced diagnostics, and feedback control that quickly returns the system to a stable state

• Has the ability to re-route power flows, change load patterns, improve voltage profiles, and take other corrective steps, within seconds of detecting a problem

• Enable loads and distributed resources to participate in operations

• Use modern tools to improve design and operation with reliability, security, efficiency, and safety as fundamental values

A Smart, Integrated Grid


Emphasis on The Distribution Grid

Source: NIST Smart Grid Interoperability Standards Roadmap Report – August 10, 2009


• Advanced Metering Infrastructure (AMI)

– Digital electric meters are also “SENSORS”

– Regional communication system

– Home area network

• Operational initiatives

– Outage management system

– Distribution management system

– DER

– Demand management

– Conservation & dispatched voltage response

• Feeder automation system technologies

– SCADA

– Autonomous, automated switching

Early, Sound Smart Grid Investments


SDG&E Smart Grid Projects

2009 2010 2011 2012 2013

DOE/CEC Microgrid

Solar Power Initiative

Sustainable Communities

Self Healing Grid Pilot

PHEV Integration

Grid Communications

Enhanced Outage and Distribution Management

Smart Substations

Geographic Information System

Asset Investment

Customer Enhancements

Mobile Field Force Deployment

Smart Metering - SDG&E

Smart Metering - Gas


SDG&E Smart Grid Investments

2016California Solar Initiative

3000 MW

Automated outage detection, restoration, and

customer notification

Expanded SCADA & line devices

Self Healing Grid technologies in place

Traditional utility relationship with customer is

changing due to more mature new services for

customers

Load control with DR

Bundled services

DER Aggregation (including PHEV)

Major regulatory issues are solved

Data ownership and access

Cross jurisdictional conflicts

T&D renewables strategy

Energy Policy Goals

Deploy base technologies

Smart meters installed

OMS/DMS system

Microgrid Pilot

New Customer programs offered by Utilities

Dynamic Pricing

EE, Demand Response

HAN, Energy Management

Many Smart Grid components are initially

deployed

Self-healing-grid technologies in

full deployment

Microgrid technology deployed and self

sustaining community concept

demonstrated

PHEV infrastructure pilots

Customer supply side & storage decisions become

the norm

Significant DER Penetration

Additional microgrids where cost

effective

“Customers as resources”

PHEV adoption rises- utility becomes "gas station

of the future“

PHEV adoption emerges as a critical

component of DER

Charging infrastructure in place

PHEV rates in place (charge & discharge)

Advanced grid technologies in place

CBM, Cable Diagnostics

Advance Energy Storage to support RPS

goals

Self-healing grid is a reality

20% Renewable

Energy penetration

33% Renewable

Energy penetration

30% Greenhouse Gas emission

reduction from projected levels

2009 - 2011

2020

2016 - 20202012 - 2015

2010


OMS/DMS - Benefits

• Reduction in forced outages/interruptions

• Reduction in restoration time

• Reduced Operation and Maintenance (O&M) due to predictive analytics and grid self healing

• Reduction in peak demand

• Increased integration of distributed generation resources and higher capacity utilization

• Increased security and tolerance to attacks/natural disasters

• Power quality, reliability, and system availability and capacity improvement due to improved power flow

• Increased capital investment efficiency due to tighter design limits and optimized use of grid assets

• Environmental benefits gained by increased asset utilization

• Assumes AMI and GIS are implemented prior to project completion


OMS/DMS Value Lever –Operator Productivity

Supporting EvidenceM

inute

s

Improved Safety

Reduced Apprentice Training Time

Reduced Data Entry

Checking/Review of Manually Written

Switching Orders

Automated Outage Reporting

20

30

10

40

50

60

- Other Benefits -

•Operators manually direct field workers via phone/radio

•Outage reporting produced/reviewed manually by operators

60 min / day on average increased operator productivity

•No integration from SORT-OMS to enable real-time visibility to

troubleshooter activities

•Operators field phone calls due to lack of visibility to outage and

network related data

•Apprentice training involves many disparate systems

•Support staff double checks outage reports – 2 hours per day

•Switching orders produced manually

•Afternoon shift re-checks orders created in the morning

- Other Intangible Benefits -

Reduced Support Staff (Outage Reporting)

•Switching plans are not suggested

•Safety can be improved through improved outage information

Reduced Telephone and Radio Time


Cash Flow – OMS/DMS

OMS-DMS Cash Flow

($30,000,000)

($20,000,000)

($10,000,000)

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Net Cash flow Cumulative Cash flow


Solar Power Potential


Solar PV Cost and Grid Parity

Source: Green Technical – March, 2015 Joshua S Hill

Annual US Solar PV Installations, 2000–2014

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$/k

Wh

Avg Cost of Energy ($/kWh) Solar LCOE ($/kWh)

Source: Deutsche Bank Market Research Feb.2015


• As part of Prime Minister, Narendra Modi’s vision of adding 100 GW of solar energy to the Indian Grid in the next 7 years. Ministry of New & Renewable Energy (MNRE) has allotted a year wise target for each state in the country for setting up Rooftop PV. The target for Rooftop PV, under this plan, is 40 GW by 2022 starting with 200 MW in 2015

Rooftop PV Revolution in India


Statewide PV Targets


• Issues

— Phase Imbalance Impacts

— Voltage/Voltage and Reactive (VAR) Impacts

— Utility bottom line Impacts

• Opportunities

— New opportunities for consumers/prosumers (TransactiveExchanges)

— New opportunities for utilities (new retail and wholesale services)

Retail/Distribution Operation Impacts


Situation In California

Source: CAISO


Flexible Resource Adequacy Requirements

SupplyDemand

Reserves, Balancing Energy

AGC and Frequency Response

CAISO Flexible Capacity Needs 2016-2018

©2016 OATI, Inc.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.greenbuildingenergysavings.com/photovoltaic-solar-energy.php&ei=WcEaVbfhG5CXyASn-oKoDw&bvm=bv.89381419,d.eXY&psig=AFQjCNGQ1vdCQu8aIVv23ihb-3DyVMQZ5A&ust=1427903191816305

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.greenbuildingenergysavings.com/photovoltaic-solar-energy.php&ei=WcEaVbfhG5CXyASn-oKoDw&bvm=bv.89381419,d.eXY&psig=AFQjCNGQ1vdCQu8aIVv23ihb-3DyVMQZ5A&ust=1427903191816305


• Per MW Demand Response (DR)/ DER Value for Distribution Operation

– Peak Shaving Capacity Value: $40K - $100K per MW DR per Year ($300K -

$800K NPV per MW DR)

– Load Shifting Value: $40K - $50K per MW DR per year ($300K - $400K NPV per

MW DR)

– Deferred Substation Upgrade Value: $300K – $2.2M NPV per MW DR

• Per MW DR/DER Value for Provision of Bulk Power Grid Services

– Regulation: $100K-$300K per MW DR per year

– Spinning Reserve: $20K - $40K per MW DR per year

– Non-spinning/Supplemental Reserve: $10K - $20K per MW DR per year

– Flexibility Reserves: $40K - $100K per MW DR per year

DR/DER Value for System Operations


DR/DER: “Dancing Partner” of VER

• Under Generation Demand Response

• Over Generation Storage/EV

• Time Variability Distributed Generation ©2016 OATI, Inc.


Mapping of DR-DER to Wholesale Products

Firm

Commit-

ment

Noti-

fication

Conventional Maybe Yes Yes Yes Yes Yes Yes Yes

Flexible Maybe Maybe Yes Yes Yes Yes Yes Yes

Day Ahead Maybe Maybe Maybe Yes Yes Yes Yes Yes

Real-time Maybe Yes Yes Yes Yes

30 Min Non-Spin Maybe Yes Yes Yes Yes

10 Min Non-Spin Maybe Maybe Yes Yes Yes

10 Min Spin Yes Yes Maybe

Regulation Maybe Yes Maybe

Ramping Maybe Yes Maybe

Flexibility Reserve Maybe Yes Maybe

Wh

ole

sale

Pro

du

cts

Demand-Side ProgramsNon-Dispatchable Dispatchable

VoluntaryDemand-limiting

Control

Direct Load Control

(DLC)Dispatchable

Voltage

RegulationNotification

Eco

no

mic

Re

liab

ilit

y

Capacity

Energy

Ancillary

Services

Balancing(New)

©2016 OATI, Inc.


Potential DR-DER for at a Typical Utility

Total DR Capacity = Asset Capacity x No. of Customers x % Ownership x Asset Diversity Factor

Total Available DR = Total DR Capacity x % participation in DR Program

DR Products = Total Available DR x % qualified

A Community with 150K Households and 10K Small/Large Commercial Customers

Residential Commercial Total

Frequency Response 10 12 22

Regulation 7 7 14

Spinning Reserves 7 9 17

Non-Spin Reserves 15 19 34

Balancing Energy 13 17 30

Total DR Capacity 19 24 42

Demand Response (MW)


• Modeling assets and aggregating them into dispatchable resources

Demand-Side Asset Modeling

5 Min 10 Min 30 Min 1 Hr DA1 Min

Aggre

gati

on

Dis

patc

hResources/Virtual

Power Plants (VPPs)

DR Programs Contracts

©2016 OATI, Inc.

∑


DR-DER Capability Forecasting

Asset Models Program ParametersContracts/Agreeme

nts

Performance

History

Weather Forecast

Capability Forecast

By Aggregated Resource,

By Product, By Location

©2016 OATI, Inc.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.constructionweekonline.com/article-5092-trane-launches-new-chiller-in-uae/&ei=3CIBVdfUC8u_ggTI84C4AQ&psig=AFQjCNHPBc73Eov81Ag_ubaX62eqqcjpxg&ust=1426224122228358

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.constructionweekonline.com/article-5092-trane-launches-new-chiller-in-uae/&ei=3CIBVdfUC8u_ggTI84C4AQ&psig=AFQjCNHPBc73Eov81Ag_ubaX62eqqcjpxg&ust=1426224122228358

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.trane.com/residential/en/products/heating-and-cooling/packaged-systems/xb13c-packaged-ac-system.html&ei=iyMBVe-qOYLDggSS8IPABg&psig=AFQjCNECikb-ZmqLuJZTZ5YKYlUspe9ouQ&ust=1426224346804888

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.trane.com/residential/en/products/heating-and-cooling/packaged-systems/xb13c-packaged-ac-system.html&ei=iyMBVe-qOYLDggSS8IPABg&psig=AFQjCNECikb-ZmqLuJZTZ5YKYlUspe9ouQ&ust=1426224346804888


• Two-Way Data Communications Across the Service Territory

• Hourly, Sub-Hourly, or On-Demand Reads

• Remote Connect and Disconnect

• Outage Reporting and Verification

• Gateway to Home Automation

• Distribution Equipment Status

Advanced Metering Infrastructure

Utility WAN

RF, Microwave,

Fiber

Mesh Network,

PLC Network or Fiber to Home

RF Network,

PLC/BPL Network or Fiber Network

AMI Head-End System

Enterprise Systems

Distribution

Substation


14 Smart Grid India Pilot Projects


14 Smart Grid India Pilot Projects (Continued)


• Method– Direct Load Control: On/Off, Cycling, Set-Point Offset, etc.

– Notification Based: Target Load Reduction

– Price Signal: Time of Use (TOU), Critical Peak Pricing (CPP), Dynamic Pricing

• Residential– A/C, Electric Water Heater, Electric Heaters, Pool Pumps, Appliances, EV Charging,

etc.

• Commercial– HVAC Temp Adjustments, Thermal Storage, Duct Pressure, Variable Speed Fan,

Chiller Set-point, Lighting System, Misc. Equipment, EV Charging, etc.

• Industrial– Distributed Generation, Process Adjustments, Refrigeration, etc.

• Agricultural– Irrigation, Fixed and Variable Speed Pumping, Dispatchable DGs, etc.

DR and Dispatchable DER


• Customer Baseline Computations

– Automated Daily Updates

– “Morning” Adjustments

• Various Performance Reports

• Billing Determinant Computations – Settlement Support

Tracking DR Performance

©2016 OATI, Inc.


• TOU

• CPP

– A large Increment

– Notification Based

• Peak Time Rebate (PTR)

• Real Time Price (RTP)

– Indexed to Market

– Large Commercial and Industrial (C&I)

• Direct Load Control

• Fixed Incentive Based

• Performance Based

DR Rate Structure

-

0.05

0.10

0.15

0.20

0.25

0.30

Cent

s / k

Wh

Time of Use TOU Fixed

-

0.10

0.20

0.30

0.40

0.50

0.60

0.70

Cent

s / k

Wh

Critical Peak Price CPP Fixed

-

0.05

0.10

0.15

0.20

0.25

0.30

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Cent

s / k

Wh

Real Time Price RTP Fixed


Improvement Through Use of Technology

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

TOU TOU w/ Tech

PTR PTR w/ Tech CPP CPP w/Tech RTP RTP w/Tech

% R

educ

tion

in P

eak

Load

Pricing Pilot Program

Improvement Through Use of Technology70 Different Pilot Tests in the US, Canada, EU and Australia

Source: TheBrattle Group

250%

69%

51%

91%9 Pilots

6 Pilots

9 Pilots

6 Pilots

16 Pilots

15 Pilots

2 PilotsMin

Max

Avg.

1 Pilot


Value of DR

• Energy

• Load Shifting

• Peak Shaving

• Load Reduction

• Deferred Generation Investment

• Deferred T&D Investment

• Reduced O&M Costs

• Distribution Reliability

• Lower SAIFI

• Lower SAIDI

• Power Quality

• System Reliability

• Capacity

• Ancillary Services

• Load Following

• Balancing Energy

Social

• Improved Green House Gas Reduction

• Higher Renewable Portfolio Standard Compliance

• Renewable Energy Credits

• Enhanced Energy Independence

• Enhanced Economic Development

• Improved Customer Satisfaction

• Improved Customer Choice

EnvironmentalEconomic

DR Benefits: Overview

Reliability


• Energy Cost Reduction from DR Deployment

– Load Shifting

• Peak Energy MW*Peak Duration*(Peak Energy Price – Off-peak Energy Price)

– Peak Shaving

• Peak Energy MW*Peak Duration*(Peak Energy Price + PBR Incentive Adder - Retail Rate)

– Load Reduction other than Peak Shaving

• Sum over Load Reduction Intervals [Interval MWh Energy Reduction* (Interval Energy Price + PBR Incentive Adder - Retail Rate)]

• Deferred Generation Investment (DGI)

– Base Year

• Non-market Environment: DR MW*Annual Capital Cost of a Peaker ($/MW-yr)

• Market Environment: DR MW*Capacity Market-Clearing Price

• Deferred Transmission and Distribution (T&D) Investment (DT&DI)

– Base Year: DR MW*(Historical T&D cost per MW of historical peak load growth)

DR Economic Benefits Perspective for a Utility Distribution Company (UDC) or Load Serving Entity (LSE)


Example: Excerpt from CPUC Filings (Net Present Value per MW of DR)

$-

$200

$400

$600

$800

$1,000

$1,200

PG&E

Low

PG&E

High

SDG&E SCE Avg

NP

V in

$K

Benefits / MW of DR

x 50 MWDR = $ 40 MNPV

Example:

Cost = $ 10 MNPV


• Assuming AMI is Already in Place, Incremental Cost of DR for a Utility Includes

– DR/DER Management System (hardware/software)

– DR program enrollment (DR program design, outreach, and customer registration)

– Operating costs (personnel, maintenance, etc.)

• Typical Cost (NPV) for 50 MW DR: $10M ($200K per MW DR)

• With Conservative Benefit Estimate of $800K NPV per MW DR, the Benefit to Cost Ratio is 4

Typical Incremental DR Costs


• Integrated Electric, Water, Building location

• Planned communities are more efficient

• Buildings participate with energy supply

• People take a proactive role in their community

• Improved economic output compared to unplanned communities

• Incorporates all consumer requirements

Sustainable Communities


Localized Operation and Optimization


• Integrated Electric, Water, Building location

• Planned communities are more efficient

• Buildings participate with energy supply

• People take a proactive role in their community

• Improved economic output compared to unplanned communities

• Incorporates all consumer requirements

Smart Districts


Interconnected Smart Districts

VREM

VREM

VREM

VREM

VREM

RegionalSolar Farm

RegionalWind Farm

Regional Distribution Network

Small CityMicrogrid

Biofuels Complex

©2016 OATI, Inc.


• Given the inherent benefits from each (Microgrids and District Energy), the sum of the parts is greater when combined than if separate

• Underground work excavated only once

• Optimized CHP placement minimizes real estate allocation costs

• Reduced losses (thermal and electrical)

• New storage approaches improves efficiency

• Newer technologies offer lower operating costs

• Increased telemetry increases asset life (condition-based maintenance vs. scheduled)

Microgrid/District Energy Synergies


• Phase 1 (individual service level): Information and Communication Technologies (ICT) to improve individual city operations, such as real-time bus schedule

• Phase 2 (vertical service level): integrates related processes and services by smart technology, such as citizens offered information on transportation system’s real-time activity and emergencies, road conditions, road repairs, and detours

• Phase 3 (horizontal service level): no distinction between different service areas, with all parts now seamlessly integrated within an efficient smart city ecosystem

Microgrids Applied to Smart Cities


• Growing Energy Demand in Mega-Cities

• Easier energy management in city due to its concentrated demand and higher electrification rate

• Keys for energy management in cities

—Electricity Storage

—Thermal Storage

—Regional Demand Control

—Electrification of Transportation

• Mega-Cities and isolated rural areas can cooperate in Energy Supply and Demand, and Green Energy Investment

Rationale


• The Government of India is determined to develop 100 smart cities on the four pillars of institutional, physical, social and economic infrastructure. These cities will have the citizen at the center of governance and will deploy extensive ICT to improve the overall efficiencies in the system. There is consensus now that cities have to develop their own customized versions of smartness and that there is no ‘one size fits all’ solution

• A very wide stakeholder consultation is being carried on in the Ministry and the suggestions and views of consultants/academicians/IT companies and the common man are being taken at par to arrive at a working definition of smart cities

• It is now apparent that there is no unique definition of smart cities and that it is a process deploying intelligent ICT to help citizens realize their full potential at work, home, and at leisure

• The main instruments for implementing this program will be integrated ICT, citizen engagement, inclusive environmental sustainability, and public private partnership

100 India Smart City Project


Rural Area

Abundant natural

resources

Green

Energy

Investment

• Mega-Cities and isolated Rural Areas can cooperate in Energy Supply and Demand, and Green Energy Investment

New Business Model Between Urban Area and Rural Area

Introduction of renewable

energy

Green power supply

Urban Area

Concentration of energy

demand

CO2 emissions increase

Rural Area

Economic Revitalization

CO2

Reduction ElectricPower


Examples – Smart Districts

Miami Art District


Lavasa, India’s First “Smart City”


Barcelona Smart City


Nice Grid Eco City


• Economic, sociologic, and environmental pressures require us to examine a new energy management model

• Most distribution investments offer good return on investment

• Networking infrastructure is key, invest in AMI and DR

• Integrate DER for reliability

• Smart Grid, Smart Districts, and Smart Cities meet individual requirements and offer larger grid support

• Microgrids and Smart Districts allow generation, storage, and loads to operate autonomously, balancing out voltage and frequency issues

Summary


Questions?

THANK YOU


Terry [email protected]

Smart Grid Tutorial - 21st Century Grid - ISGW · Smart Grid Tutorial - 21st Century Grid. Open...

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