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Experience you can trust.
UTC Webinar
Smart Grids: Building a Strategic Technology Roadmap
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Experience you can trust.
UTC Webinar
Smart Grids: Building a Strategic Technology Roadmap
Hans van [email protected] C. [email protected]
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Contents
• Definitions – What is Smart Grid
• Vision and Strategic Technology Roadmap for Smart Grid: 4-step process– Preparation– Create a Vision– Create a Strategic Technology Roadmap– Use the Strategic Technology Roadmap
• Factors impacting deployment
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What is a “Smart Grid”?• Self-healing
– A grid able to rapidly detect, analyze, respond and restore from perturbations.
• Empower and incorporate the consumer– The ability to incorporate consumer equipment and behavior in the design and
operation of the grid.
• Tolerant of attack– A grid that mitigates and stands resilient to physical and cyber security attacks.
• Provides power quality needed by 21st century users– A grid that provides a quality of power consistent with consumer and industry
needs.
• Accommodates a wide variety of generation options– A grid that accommodates a wide variety of local and regional generation
technologies (including green power).• Fully enables maturing electricity markets
– Allows competitive markets for those who want them.
• Optimizes assets– A grid that uses IT and monitoring to continually optimize its capital assets while
minimizing operations and maintenance costs.
Source: DOE U.S. National Energy Technology Laboratory (NETL)
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Tomorrow’s power systems will require the coexistence of bulk power and distributed energy resources
Customers are part of the electrical power supply system, as both a producer and consumer of electricity = “prosumer”
• Real-time information and pricing schemes• Automated and “plug and play” devices• HAN systems
• Integration of numerous small scale generators
• Demand and supply balance solutions
• Efficiently operated (and reliable) network
• Differentiated Power Quality at connection point
• Mature markets and regulation
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The SG will operate with a portfolio of applications, technologies and advanced communications
Source: International Energy Agency (Vigotti)
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The Smart Grid Concept Has No Single Universal Definition, Particularly As The Boundaries Vary Among Individual Users
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Energy Markets
SmartGeneration
SmartGeneration
CentralizedCentralized DistributedDistributed
IntermittentIntermittent
Critical / Backup
Critical / Backup
SmartGrid
SmartGrid
SmartEnd Use
SmartEnd Use
TransmissionTransmission DistributionDistribution
InformationSystems
InformationSystems
AssetManagement
AssetManagement
Grid Monitoring
Grid Monitoring
Grid Automation
Grid Automation
EnterpriseIntegrationEnterpriseIntegration
BaseloadBaseload
PeakingPeaking
GreenPowerGreenPower
Commercial/Industrial
Commercial/Industrial ResidentialResidential
Smart Motors& Devices
Smart Motors& Devices Smart
AppliancesSmart
Appliances
BuildingAutomation
BuildingAutomation
PhotovoltaicPhotovoltaic
Plug -in HybridsPlug -in Hybrids
Advanced Metering
Advanced Metering
Site EnergyMgmt Systems
Site EnergyMgmt Systems
DemandResponseDemand
Response
DistributionOperations
DistributionOperations
PowerElectronics
PowerElectronics
SmartStorageSmart
Storage
Communication& Control
Communication& Control
TransmissionOperations
TransmissionOperations
Smart Dist. Devices
Smart Dist. Devices
SmartGeneration
SmartGeneration
CentralizedCentralized DistributedDistributed
IntermittentIntermittent
Critical / Backup
Critical / Backup
SmartGrid
SmartGrid
SmartEnd Use
SmartEnd Use
TransmissionTransmission DistributionDistribution
InformationSystems
InformationSystems
AssetManagement
AssetManagement
Grid Monitoring
Grid Monitoring
Grid Automation
Grid Automation
EnterpriseIntegrationEnterpriseIntegration
BaseloadBaseload
PeakingPeaking
GreenPowerGreenPower
Commercial/Industrial
Commercial/Industrial ResidentialResidential
Smart Motors& Devices
Smart Motors& Devices Smart
AppliancesSmart
Appliances
BuildingAutomation
BuildingAutomation
PhotovoltaicPhotovoltaic
Plug -in HybridsPlug -in Hybrids
Advanced Metering
Advanced Metering
Site EnergyMgmt Systems
Site EnergyMgmt Systems
DemandResponseDemand
Response
DistributionOperations
DistributionOperations
PowerElectronics
PowerElectronics
SmartStorageSmart
Storage
Communication& Control
Communication& Control
TransmissionOperations
TransmissionOperations
Smart Dist. Devices
Smart Dist. Devices
Energy Markets
Source: Global Environment Fund and The Center for Smart Energy
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What is a Smart Grid?
The name Smart Grid does not do full justice to the The name Smart Grid does not do full justice to the complexity of the overall concept, as all aspect of complexity of the overall concept, as all aspect of electric power supply, from generation to endelectric power supply, from generation to end--user user load, are involvedload, are involved.
Most definitions do not address the fundamental reasons for a Smart Grid nor the applications that are related to these reasons.
Example from the past: reason=interconnected systems, application=AGC
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Smart Grid - Definition & Characteristics in Tabular Format
Objectives
Applications and Technologies
Avoid Blackouts
Use of intermittent Generation
Reduce electric energy
consumption and peak load
Storage devices providing regulation and spinning reserve
X
Controllable load for providing reserve capacity X X
Load curtailment when abnormal system conditions occur
X
Control technologies for reducing peak load and overall energy consumption
X
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What is a SmartGrid (my definition)?
A SmartGrid is a very large system that consists of the following interacting components:
• Generators (traditional, renewable, intermittent, distributed, storage)
• End-users’ load that can be controlled locally or remotely• Applications that control load and generation to maintain
the integrity of the system• Applications (transmission, distribution, or local) that
minimize overall cost and cost to end-users• Communication and other technology to support
applications
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Intermittent Generation
To compensate for intermittent and non-available generation other generators may have to supply:
• More regulation capacity• More spinning reserve capacity• More supplemental reserve capacity
Counter measures to balance load and generation:• Storage plants• Load control (load follows generation)
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Vision and Strategic Technology Roadmap
Five - step process:
1) Preparation2) Definition of internal and external drivers 3) Creation of a Vision 4) Creation of a Smart Grid Strategic Technology
Roadmap that supports the Vision5) Use the Roadmap
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Preparation phase
• Determine the stakeholders and determine their involvement in developing the roadmap
• Establish a working structure for developing the utility’s Smart Grid Vision and the Smart Grid Strategic Technology Roadmap – Committee responsible for developing the Vision – Working Group and Task Forces to create the
Roadmap• Familiarization with Smart Grid concepts, ongoing
activities, regulation, standard development, R&D,......
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Preparation phase: Stakeholders
• Internal stakeholders, e.g., departments for System Operations, Communications, Metering, Substation Maintenance and Construction, Protection, Public Relations, Customer Relations, Corporate Finance,.....
• External stakeholders, e.g., Regulators, End-users, ISO, Transmission company, Power plant owners, Demand aggregators,.......
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Preparation Phase: Composition of the Teams
• The makeup of the Teams is critical to the success• Tendency to compose the Committee of executives
and other upper management. Literature strongly recommends against such an approach
• Invite some innovative technical and public relations resources to participate with the Vision development
• Committee assigns members to WG and TFs• Makeup of the Task Forces can be flexible as long as
disciplines are represented to deal with all technical, financial, legal, regulatory, and public relations aspects
• For specific issues it may be beneficial to invite external stakeholders
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Preparation Phase: Roadmapping/Facilitator Help Certain set of knowledge and skills is required• Familiar with roadmapping• Familiar with group dynamics• Facilitator role:
– Prevent chair person to promote own agenda– Elicit input from the group as a whole and from
specific individuals– Listen, analyze, and integrate everyone's views– Make group function efficiently and reach its goals
• Subject Matter Help
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Preparation Phase: Roadmapping Tools
• Roadmapping tools that are available in the industry are dedicated to product line management, less suitable for the creation of a Smart Grid Strategic Technology Roadmap
• Where the creation of the Roadmap requires difficult decisions to be made, tools provided by companies such as Expert Choice, Inc have proven to be very useful
An external roadmapping expert will be able to help out
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Define Internal and External Drivers
• Regulatory framework – Mandatory use of renewable energy– Demand response at the retail level– Incentives such as subsidies for the utility and its
end-users– Reporting requirements of demand response
effectiveness• End-user attributes affecting Smart Grid applications• Geographical issues• ISO Vision or Roadmap
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Create a Vision
• When beginning the process of strategic planning, visioning comes first. When visioning, the most important question to ask is: "What is our preferred future?"
• When developing a Vision the “how" is not that important. Focusing on the “how” can very quickly result in being overwhelmed with too many details. It is better to take a leap of faith and trust that the “how”will be shown to you as you go along with the strategic roadmapping process"Reality is merely an illusion, albeit a very persistent one" Albert Einstein
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Visioning
A Vision should:• Be reflect internal and external drivers• Be based on the beliefs, mission, and environment of
the organization• Describe what you want to see in the future (rough
time line)• Be specific, without paying to much attention to
technical implementation issues and financial implications
• Be positive and inspiring• Not be biased by “current way of doing things”
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Time for a poll!
Has your organization developed for Smart Grid:
• A Vision?
• A Vision and a Roadmap?
• Just a Roadmap but no Vision?
• No Vision and no Roadmap?
• Smart Grid applications without a formal Vision or Roadmap?
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Utility’s Vision – Example
Hypothetical utility that delivers power to end-users, has access to wind energy, and is located in an area where photovoltaic generation is feasible
Utility Vision 2010• Have smart meters installed at 30% of the end-user• Have real-time prices and critical-peak prices for
energy sent to 30% of end-users• Have equipment installed at 30% of end-user locations
to support demand response requiring minimal end-user involvement
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Utility’s Vision – Example Vision 2010
• For residential end-users, as a minimum manage HVAC demand in response to real-time pricing signals;
• For non-residential end-users, optimize each end-user demand response
• Implement reporting of relevant demand response statistics to end-users, including participation, energy savings, peak load reduction, and cost savings;
• 5% of the demand is provided by wind generation;• Rulemaking is in place to support this level of Smart
Grid implementation
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RTP-Real-time marginal price chart (KCP&L)• In the evening you get paid to use energy!
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Pacific North West PilotHome Owners Dashboard
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Utility’s Vision – Example Vision 2015
Utility Vision 2015• Have smart meters installed at 100% of the end-users• Have real-time prices and critical peak prices sent to
100% of end-users • Have equipment installed at 100% of end-user
locations to support demand response• Residential equipment including HVAC, swimming
pools, and all other appliances that are controllable should participate in demand response
• Implement retrieval of all information by the utility necessary to meet regulatory reporting requirements
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Utility’s Vision – Example Vision 2015
• Upgrade existing Distribution Management System and Outage Management System to fully utilize information available from end-user connection points and at other locations in the distribution system
• Define additional measuring points in distribution network to maximize the effectiveness of distribution management and outage management applications
• Implement non-critical load reduction to maintain integrity of the transmission grid, considering, congestion management, voltage collapse prevention, and underfrequency load shedding
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Utility’s Vision – Example Vision 2015
• Install photovoltaic roofing systems on all new residential and commercial construction
• 10% of the demand is provided by wind generation• Of all noncommercial vehicles, 10% are plug-in hybrid
electrical vehicles charging batteries during hours with low real-time prices
• Regulatory rulemaking is in place to support this level of Smart Grid implementation
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Local Energy Management Node
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Utility’s Vision – Example Vision 2020Utility Vision 2020• Participation of end-users in a market • Photovoltaic roofing installed at 30% of end-users• 30% of the demand is provided by wind generation• Of all noncommercial vehicles, 30% are plug-in hybrid
electrical vehicles• Implementation of energy storage as well as control of
non-critical load to manage high penetration of intermittent resources. Consider non-critical load control to provide regulation, spinning reserves, and load balancing
• Regulatory rulemaking is in place to support this level of Smart Grid implementation.
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Interaction between Vision and Roadmap• Vision is specific, without implementation details, and
has a rough time line • Committee does not need to verify that the Vision can
be fully implemented as stated ("Reality is merely an illusion.....”)
• The Working Group is responsible for producing a Roadmap that is implementable while satisfying the Vision where this makes sense
• When providing the Roadmap to the Committee for review, areas where the Vision needs revision need to be explicit and defendable. This may then lead to an update of the Vision.
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Time for a Poll!When will non-critical load reduction to maintain integrity of the transmission grid (load as a critical source in balancing generation and load) be an accepted solution?
• Never?• 5 years from now?• 10 years from now?• 15 years from now?• Later?
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Creating a Smart Grid Strategic Technology Roadmap
The most important reasons for having a roadmap, according to providers of software and services for product life-cycle management
• Communication within the organization• Communication with stakeholders and policymakers • Communication with customers• Serving as a tool to justify investments• Providing visibility to different perspectives • Understanding complex concepts • Sharing needs with suppliers • Dealing with change
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Guidelines for Working Group and Task Forces-1 • Define applications that are recommended for
realizing each of the vision statements• Define the preferred supporting technology (including
communications and IT) for each application• Identify whether solutions are based on standards or a
emerging and widely accepted approach • Consider the use of or migration from existing
technology or infrastructures • Consider that a particular technology or infrastructure
may also be used for applications unrelated to Smart Grid
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Guidelines for Working Group and Task Forces-2• Provide an economical analysis • Provide a feasibility analysis • Identify the need for a specific pilot implementation• Identify critical success factors • Define end-user and utility responsibilities for
managing demand response and distributed generation
• Identify risks and where deemed needed, identify mitigation options
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Economical Analysis
• How much will this cost?• Is it economically justified to do this?• Who will pay for what and how?• Are there subsidies available?• How much is the annual cost?• How much will the annual revenue be?• What is the overall budget for realizing the vision?
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Feasibility Analysis
• Is the supporting technology available and mature or will developments be needed? Is it based on standards, or emerging standards?
• Are there needs for regulatory rule making to define who pays for what and how services provided by the utility and the end-user will be settled?
• Are there legal implications?
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Roadmap Products -1
A well executed Smart Grid Strategic Technology Roadmapping process will produce the following elements:
• A communications master plan• A demand response technology master plan• A financial master plan including costs, benefits, and
guidelines for the financing of specific Smart Grid concept
• An implementation master plan that can be used as a basis for detailed scheduling of an implementation project
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Roadmap Products-2
• A regulatory report that describes solutions for meeting regulatory requirements as well as identifies regulatory gaps that needs to be addressed before implementation of particular elements of the roadmap can fully take place
• Guidelines for a utility’s Customer Relations department on customer involvement
• High-level functional requirements that can be used in the solicitation of vendor inputs and proposals
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What is impacting the implementation of Smart Grid?• Currently only one of the three objectives drives the
implementation– No large penetration of intermittent resources– No more blackouts
• Lack of standards– No common information model and IEC standards – No standard end-user gateway– No residential standard
• Lack of regulation– Real-time pricing– Settlement rules
• Lack of capital
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