The Transforming Global Energy Industry

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© 2018 Electric Power Research Institute, Inc. All rights reserved. Anda Ray SVP, External Relations and Technical Resources and Chair, EPRI International Inc. José Delgado Regional Manager EPRI October 8, 2018 The Transforming Global Energy Industry EPRI Integrated Energy Networks and Efficient Electrification Initiatives Club Español de la Energía

Transcript of The Transforming Global Energy Industry

Page 1: The Transforming Global Energy Industry

© 2018 Electric Power Research Institute, Inc. All rights reserved.

Anda RaySVP, External Relations and Technical Resources

and Chair, EPRI International Inc.

José DelgadoRegional Manager

EPRI

October 8, 2018

The Transforming Global

Energy Industry –

EPRI Integrated Energy Networks and

Efficient Electrification Initiatives

Club Español

de la Energía

Page 2: The Transforming Global Energy Industry

2© 2018 Electric Power Research Institute, Inc. All rights reserved.

Today’s Discussion

About EPRI

Integrated Energy Network

Electrification Technology Initiatives

Other Considerations – Cyber Security

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3© 2018 Electric Power Research Institute, Inc. All rights reserved.

EPRI - Independent – Objective – Technically Based

• $415M Annual Funding

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4© 2018 Electric Power Research Institute, Inc. All rights reserved.

International Areas of EPRI’s Engagement

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5© 2018 Electric Power Research Institute, Inc. All rights reserved.

EPRI Global Research Areas

Power Delivery

& UtilizationTransmission, Distribution,

and Substations

Power Delivery

& UtilizationDistributed Energy Resources

and the Customer

Nuclear

GenerationEnergy and

Environment

Technology

Innovation

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6© 2018 Electric Power Research Institute, Inc. All rights reserved.

The Transforming Energy Network

Integrated Grid

Integrated Energy

Network

Efficient Electrification

Shared Integrated

Grid

Data Analytics, AI,

Cyber- OT

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The Integrated Grid –Integrating Distributed Energy Resources into Grid Operations and Planning

Grid

Utility

Consumer

Enabling the full value of distributed resources and to serve all consumers at

established standards of quality and reliability

Two-way power flow

Integrated Grid

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8© 2018 Electric Power Research Institute, Inc. All rights reserved.

Integrated Energy Network

Integration of Interdependent Energy Resources:

Improves Reliability, Resiliency, Efficiency, Productivity,

Create New Opportunities, and Expand Customer Choice

Source: EPRI 3002009917

February 2017

Integrated Energy

Network

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5 C’s = Convenience, Comfort, Choice, Control and

Cost-effective

The Customer

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…Best Serves The CustomerDefines a pathway to the future which provides customers with the

flexibility to use, produce and manage energy the way they want - while

ensuring universal access to reliable, safe, affordable, cleaner energy.

Integrated Energy Network…

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Heating and Cooling New ApplicationsMobility

Energy Efficiency + Cleaner Electricity = Efficient ElectrificationEfficient

Electrification

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Efficient Electrification Assessments

U.S. National Electrification Assessment (USNEA)

• Economy-wide assessment:

• Residential, commercial, industrial and

transport

• Customers have broad technology choices and

control

• Customer decisions integrated with detailed

electricity supply model

Just the beginning … much more to come

For more information on EPRI’s Efficient Electrification Initiative:

https://www.epri.com/#/pages/sa/efficientelectrification

Efficient Electrification

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13© 2018 Electric Power Research Institute, Inc. All rights reserved.

End-Use (Final) Energy Use By Sector

* Excludes upstream and midstream energy use, e.g., power generation, oil and gas extraction, refining, and pipelines

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6

4

2

0

Electricity Coal Petroleum Natural Gas Bioenergy

Quad BTUs

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14© 2018 Electric Power Research Institute, Inc. All rights reserved.

CONSERVATIVESlower Technology Change

• AEO 2017 growth path

for GDP and service

demands, and primary

fuel prices

• EPRI assumptions for

cost and performance of

technologies and energy

efficiency over time

• Existing state-level

policies and targets

REFERENCE Reference Technology

PROGRESSIVEReference Technology + Moderate Carbon Price

TRANSFORMATIONReference Technology + Stringent Carbon Price

EPRI’s US National Electrification Assessment Scenarios

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2015 2020 2025 2030 2035 2040 2045 2050

TWh

Elec

tric

ity

Dem

and

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120

2015 2020 2025 2030 2035 2040 2045 2050

Qu

ad B

tus

Fin

al E

ner

gyEfficient Electrification: Reference Scenario

+32% Growth

2015 → 2050

Electrification

Buildings(before electrification)

Industry(before electrification)

Structural Change (AEO)

Efficiency Improvements

Electrification

21%Electricity

Other Non-Electric Energy

GDP Growth (AEO)

IndustryBuildingsVehicles

36%Electric Share

Increased Electricity

Natural Gas

Final Energy Electricity Generation

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16© 2018 Electric Power Research Institute, Inc. All rights reserved.

0

1000

2000

3000

4000

5000

6000

2015 2020 2025 2030 2035 2040 2045 2050

0

20

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2015 2020 2025 2030 2035 2040 2045 2050

Efficient Electrification: Transformation (tight carbon target)

+52% Growth

2015 → 2050 Electrification

Buildings (before electrification)

Industry (before electrification)

Structural Change (AEO)

Efficiency Improvements

Electrification

21%Electricity

GDP Growth (AEO)

Industry

Buildings

Vehicles

47%

Other Non-Electric Energy

Natural Gas

Increased Electricity

Electric Share

Qu

ad B

tus

Fin

al E

ner

gy

TWh

Elec

tric

ity

Dem

and

Final Energy Electricity Generation

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U.S. National Electrification Assessment (USNEA) – Results

2015-2050

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Improve Productivity, Reduce Emissions,

Reduce Cost and Is More Controllable

Efficient Electrification – “Sustainable” Opportunities

AIRPORT ELECTRIFICATION PORT ELECTRIFICATIONELECTRIC VEHICLES

ADVANCED MANUFACTURING RESIDENTIAL HEATINGINDOOR AGRICULTURE

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Cars and LightTrucks

Heavy-dutyTrucks

Bus / Transit /Rail

Space Heating Cool / Light /Appl. / Elec.

Buildings Other IndustryProcess

Constr. / Ag. /Min.

Industry Boilers Industry Other

Electricity Natural Gas Petroleum Coal Bioenergy

EPRI US Electrification Assessment – Use of Energy TodayQuad BTUs

Cars and Light

Trucks

Heavy-duty

Trucks

Bus / Transit /

Rail

Space

Heating

Cool / Light /

Appl. / Elec.

Buildings

Other

Industry

Process

Constr. / Ag. /

Min.

Industry

Boilers

Industry

Other

Total NG ~26 Tcf

Electricity ~3740 TWh

End-use Electricity generation/upstream

Total Final EnergyQuad BTU

Total CO2 EmissionsMillion Tons CO2

Per Household

Energy ExpendituresReal 2015 USD

60.8

5200

$4,530

* Final Energy, excludes upstream and midstream energy use, e.g., power generation, oil and gas extraction, refining, and pipelines

TRANSPORTATION BUILDINGS INDUSTRY

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Cars and LightTrucks

Heavy-dutyTrucks

Bus / Transit /Rail

Space Heating Cool / Light /Appl. / Elec.

Buildings Other IndustryProcess

Constr. / Ag. /Min.

Industry Boilers Industry Other

Electricity Natural Gas Petroleum Coal Bioenergy

US Electrification Assessment – Use of Energy 2015 - 2050

* Final Energy, excludes upstream and midstream energy use, e.g., power generation, oil and gas extraction, refining, and pipelines

Quad BTUs

TRANSPORTATION BUILDINGS INDUSTRY

Cars and Light

Trucks

Heavy-duty

Trucks

Bus / Transit /

Rail

Space

Heating

Cool / Light /

Appl. / Elec.

Buildings

Other

Industry

Process

Constr. / Ag. /

Min.

Industry

Boilers

Industry

Other

REFERENCE SCENARIO

Total Final EnergyQuad BTU

Total CO2 EmissionsMillion Tons CO2

Per Household

Energy ExpendituresReal 2015 USD

47.4

4260

$2,720

Total NG ~37 Tcf

Electricity ~4930 TWh

End-use Electricity generation/upstream

32%20%

20%

40%

42%

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Local and Regional Differences Matter

Focus:

• Local economics

• Local realities: building stock, access to charging, policies

• Implications of non-volumetric pricing

• Air quality

• Grid impacts

• Program implementation

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Shared Integrated Grid – New Value Streams Imagine a future when customers’ energy assets become shared energy

solutions that enhance grid reliability, resiliency, and value for all.

Customer Value Stream

Network Operator

IncentiveSeamless

Integration

Direct

BenefitsSelection

Bridging Customer

Resources

Network Operator

Platform

Grid Services

from Customer

Assets

New Type

of Grid

Investment

Shared Integrated

Grid

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Shared Integrated Grid – Examples

MICROGRIDS

(Example) Campus pays to install

the microgrid to increase resiliency

and the utility invests in the

interconnection to incorporate an

asset that can support the overall

distribution grid.

SOLAR ROOFTOPS

(Example) Smart Inverter provides

limited power to the home and can

also be resource to the grid –

improving voltage support and

hosting capacity.

IMAGING ANALYSIS

(Example) Using AI to compare before and after images

requiring a strong communications backbone. That same

communication backbone could also be used for Smart

Cities streetlights and other reliability benefits.

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Critical Trends – Data Analytics/Artificial Intelligence

Mainstreaming of

Analytics Platform

1 2 43

Data Analytics &

Artificial Intelligence

Faster Wireless

Communications

Big Data – Sensors

and Internet of ThingsProcessing Power

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TestingData

Validating Data

TrainingData

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Advanced Image Analytics

Stop LightDeteriorated Wooden Pole Top OR ?

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Big Data Analytics and Artificial Intelligence – Examples:

Operations and Planning

• Reactive Power

Forecasting at Substation

• Alarm Management

• System Measurements -

SCADA

Asset Management

• Storm Recovery

• Asset Condition

• Operations

• Transformer Oil Condition

Assessment

Customer Service

• Customer Side Fault Detections &

Equipment Status

• Customer Contact Experience

• Energy Management

Page 28: The Transforming Global Energy Industry

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Resiliency, Flexibility and Connectivity

The Three Attributes of the Power System in a “No Regrets” Strategy

Source: EPRI 3002007376 February 2016

Grid Resilience-Cyber- OT

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EPRI R&D in Electric System Resilience Addresses:

Natural

Hazards

Manmade

HazardsHardening/Prevention

Response/Recovery

EMP – High Altitude

Electromagnetic Pulse

IEMI – Intentional

Electromagnetic Interference

Cyber Terrorism

Coordinated

Physical Assault

Seismic Event – High

Magnitude Earthquake

GMD Geomagnetic Disturbance

(Severe Space Weather)

Hurricanes and Other

Severe Weather Events

Customer/Community

(Examples of EPRI Work)

Today

Page 30: The Transforming Global Energy Industry

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Cyber Security Challenges for the Integrated Grid

▪ Generation and storage assets may not be owned or

operated by the utility

▪ Energy generation/consumption can be controlled by an

aggregator

▪ Technology and business services are performed by third

parties

▪ Operating increasingly complex, interconnected systems

▪ Dynamic governance relationships

▪ Cyber security vulnerabilities of deployed DER is unknown

The Integrated Grid is a Multi-Party Grid

- Protect - Detect - Respond & Recover

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Cyber Security Challenges for the Integrated Energy Network -EPRI Focus: “Operations Technology (OT) Interfaces

Example: Smart Inverters:

• Secure Gateways

• Reactive Power Control

• Islanding Capability

• Aggregator Management

Smart

Inverters

Cybersecurity Threats to the

Oil & Gas Industry

SAFEGUARD “ATTACK”

SURFACES

Protecting Nuclear Plants from

Cyber AttacksThird Party Equipment and

Consumer Devices Vulnerabilities

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Engaging with Customers to Reliable, Resilient, Safe, Affordable and Clean Energy Systems

The Integrated Energy Network

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Together…Shaping the Future of Electricity

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Electrification of Airports (off-road) • Cost: $31 million

• Annual Savings: $2.8 million

in airline fuel costs

• Emissions reduction:

10,000 tons of greenhouse

gas emissions - the

equivalent of taking 1,900

cars off the road.

Source: https://www.electricvehiclesresearch.com/articles/6385/sea-tac-airport-unveils-electrification-project

Opportunity?

Page 35: The Transforming Global Energy Industry

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Electrification of Sea Ports

Georgia Port Authority’s electrification efforts at Port of Savannah, are helping to

reduce emissions, lower costs, and improve the efficiency of the port’s operations

(Note: there is also an equal effort to use LNG at ports to reduce diesel fuel)

Electric Rubber Gantry Cranes Replace Diesel Cranes

$10 million saved annually

85% reduction in crane operating costs

85%

6 million gallons of diesel saved annually

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Efficient Electrification, increases manufacturing productivity,

reduces emissions and can be more cost effective

Advanced Manufacturing

Infrared and Induction Heating

(Replace Steam)

Additive Manufacturing

(e.g. 3-D printing for industrial parts)

Heat Recovery Chillers

(Reduces water evaporation as a co-benefit)

Ultraviolet Curing

(Replaces Heat)

Page 37: The Transforming Global Energy Industry

37© 2018 Electric Power Research Institute, Inc. All rights reserved.

Indoor Agriculture: No Sun + No Soil = Healthy Food

ENERGY: The Biggest Cost of the Infrastructure is Energy:

Lighting, Lumins, Climate Control and Pumps

Reduces Water and Land Use by 90%

90%