Smart Grid Overview
KEMA Perspectives
Prepared by
Rob Wilhite & Will McNamara
February 11, 2009
Recent and current clients include some of the largest and most
complex global AMI and Utility of the Future efforts
Representative Intelligent Networks Clients
AMI is the evolutionary step to previous-generation AMR
systems, offering much greater functionality and benefits
AMR vs. AMI Capability
AMI
(Full two-way)
Financial
Investment/
Potential
Return
Integrated remote reconnect/disconnect
Advanced (time-based) rates
Distributed Generation detection and control
Remote meter programming
Power Quality monitoring/ reporting
Home area network interface
Enhanced security compliance
AMR Plus
Daily or on-demand reads
Hourly interval data
Outage notification
Load profiling
Tradition
al
AMR
Automated monthly reads
Tamper reporting
Improved meter reading
accuracy
(One-way)
Operational Functionality/
Flexibility
The Smart Grid movement is well underway
Smart Grid Initiatives in North America
Dept. of Energy Modern Grid Initiative and Electricity Advisory Committee & Task
Force
GridWise Alliance
GridWise Architecture Council
Demonstration projects via key national labs (e.g., Pacific Northwest)
Numerous utility programs – one has filed for full deployment in two jurisdictions
Energy Independence & Security Act of 2007 – Signed Dec.19, 2007
Title XIII: Smart Grid Provisions - It is now U.S. policy to support the modernization
of the electric transmission and distribution system to maintain reliability and
infrastructure protection
Smart Grid Technology Research, Development & Demonstration – including
matching funds
State Consideration of Smart Grid – encourages regulatory reviews beyond just
AMI
Smart Grid System Report – due in January 2009
What is a Smart Grid?
A networked application of digital technology to the energy delivery and
consumption segments of the utility industry. More specically, it
incorporates advanced applications and use of distributed energy
resources, communications, information management, and automated
control technologies to modernize, optimize, and transform electric
power infrastructure.
The Smart Grid vision seeks to bring together these technologies to
make the grid self-healing, more reliable, safer, and more efficient, as
well as empower customers to use electricity more efficiently.
The Smart Grid architecture would include, but not be limited to, key
components such as:
- Distribution Automation/Management Systems
- Advanced Metering Infrastructure
- Data communications
- Intelligent devices and tools for monitoring, control, and optimization
Energy Markets
Smart
Smart
Generation
Generation
Centralized
Centralized
Smart
Smart
Grid
Grid
Smart
Smart
End
End Use
Use
Distributed
Distributed
Transmission
Transmission
Distribution
Distribution
Commercial/
Commercial/
Industrial
Industrial
Residential
Residential
Baseload
Baseload
Transmission
Transmission
Operations
Operations
Distribution
Distribution
Operations
Operations
Smart
Smart Motors
Motors
&& Devices
Devices
Smart
Smart
Appliances
Appliances
Peaking
Peaking
Information
Information
Systems
Systems
Intermittent
Intermittent
Demand
Demand
Response
Response
Critical
Critical //
Backup
Backup
Green
Green
Power
Power
Power
Power
Electronics
Electronics
Smart
Smart
Storage
Storage
Plug
Plug -in
-in
Hybrids
Hybrids
Asset
Asset
Management
Management
Advanced
Advanced
Metering
Metering
Building
Building
Automation
Automation
Grid
Grid
Monitoring
Monitoring
Site
Site Energy
Energy
Mgmt
Mgmt Systems
Systems
Photovoltaic
Photovoltaic
Grid
Grid
Automation
Automation
Communication
Communication
&& Control
Control
Enterprise
Enterprise
Integration
Integration
Smart
Smart
Dist.
Dist. Devices
Devices
Source: Global Environment Fund and
The Center for Smart Energy
Irrespective of the scope of these individual elements,
a robust view of UoF should include the influences of
both producers and consumers
AMI / Smart Grids Bring Utilities to a New Level of
Business Integration
Utility of the Future
Smart Meters
Manual meter reading
Monthly kWh
reads
Solid-state platform
Integrated
communications
Integrated
disconnect switch
Advanced Metering
> Remotely disconnect
Infrastructure (AMI)
> Remotely connect
On-demand reads
Power quality data
Programmable
> Voltage readings
load
> Current readings
intervals
> Power Factor
Automatic Meter Reading
Bi-directional and > Frequency
(AMR)
net
> Detailed power outage
One-way or two-way
metering
data
Monthly kWh reads
TOU, RTP, CPP
Remote
Interval data
pricing options
programmable
Basic theft detection
Demand response
Remotely
Outage/Restoration
upgradeable
Detection
Internal expansion
port
> Future functionality
Energy
Management
Services
> Residential,
Commercial
Home area
network gateway
> PLC (i.e. LONWORKS)
> RF (Bluetooth)
Web-based
applications
> Demand response
> Prepayment
> Load control
> Revenue protection
> Web move in/out
Distribution
> Load
profiling/engineering
> Phase balancing
> Transformer
optimization
> Energy forecasting
> Outage and GIS
> Work force
management
> Asset management
Smart Grid deployment will also require an end-to-end
operational view
Individual technologies and enablers are critical components - e.g., highbandwidth, secure, and two-way communications infrastructure
However, real benefits will be achieved by society when considering the end-toend impact and integration across the utility enterprise, as well as its interface to
the consumers
The UoF will operate as an Intelligent Network, with a
portfolio of technologies and advanced communications
Source: International Energy Agency (Vigotti)
Smart Grid initiatives also include work
“Beyond the Meter”
Infrastructure Functionality
Remote curtailment
(automated)
Alert customer (volunta
Customer override
In Premise Solutions
Account Detail
Message Center
Energy Efficiency
Why Now?
What is driving the AMI / Smart Grid sector?
Benefits to all stakeholders, including consumers, shareholders,
and regulators.
Enhanced system reliability / efficiency of power
Cost reductions to utilities (reduced need for building additional
capacity)
Enabling technologies
Desire for improved customer service
Regulatory mandates
Why Now?
What is driving the AMI / Smart Grid sector?
Elevate customer benefits and support social contributions
Enable customer participation in social-benefit efforts (view usage, select from menu of
energy-saving rates).
Accommodate distributed generation and storage options (net metering, “vehicle-to-grid”).
Improve efficiency of service (Remote on/off, faster change of service, real-time status
check, reduced outage time).
Improved reliability (improved power quality diagnostics, prevented outages, more accurate
meter reading).
Support existing services, enable new products, enhance revenue
Support growth of energy efficiency programs/products (TOU pricing, load control, energy
monitoring).
Prepare for “Smart Home” appliance control and response.
Protect/improve revenue and cash flow with broader range of controls (load limiting,
customer-selected cycles).
Enhance Operational Efficiency
Optimize asset performance of utility operations and improve safety.
Digitize demand measurements from all endpoints and distribution equipment; more robust,
efficient diagnostics.
Anticipate and respond to system disturbances in a more efficient or self-healing manner.
Regulatory Requirements
Comply with or anticipate mandates from regulators.
Regulatory Mandates
EPAct (Section 1252)
Utilities must offer time-based rates to all customers or
demonstrate why compliance cannot be achieved. States
regulators may determine if this requirement is “appropriate”.
Oregon State law requires a "market-based" rate for all residential
and small business customers. Two of Oregon’s utilities (Portland
General Electric and Idaho Power) intend to install two-way AMI
throughout their territories within the next 2 years.
Metering applications:
Metering must be time-based, capable of supporting TOU, CPP, RTP
(hourly), and credits for demand reduction, and have communications
Energy Independence and Security Act (EISA), 12/07: Directs the
DOE to establish a Smart Grid Task Force and create a program that
reimburses 20% of qualifying Smart Grid investments.
State Utility Commissions - Section 1252 Activities To Date
34 states (incl. the District of Columbia) currently have open dockets to investigate EPAct Section
1252 requirements; 9 states, while having metering and DR initiatives, do not have formal 1252
proceedings currently; 3 states (NV, TN, VA) have concluded 1252 review, determining that the
state market does not require additional RTP tariffs or metering.
-
States with pending 1252 proposals
State utility commissions with open
1252 proceedings
No formal EPAct Section 1252
study underway
State 1252 investigation complete;
Conclude no additional state action
for compliance
States not adopting EPAct 1252
Policymaking
Modern Grid
Initiative
Relative
Investmen
t
Level
2
PSERC1
R&D Standards Policies Regulations
Note 1: Power Systems Engineering Research Center
Note 2: New York State Energy Research and Development Authority
Electricity Advisory
Committee (DoE)
Ralph Masiello recently
appointed for initial term
Provide counsel for the
nation’s grid modernization
efforts
GridWise Alliance
Rob Wilhite serves as
Chairman of the
Implementation Work
Group
Seek to identify, solicit,
and support Smart Grid
demonstrations and
deployments
GridWise Architecture Council
Other key industry consortia are
tracked or followed by KEMA on
a routine basis
Implementation
Issues
Well-designed and accurate communications and
outreach are vital for public education and acceptance
Early smart grid and smart metering efforts are finding some
resistance with inadequately structured consumer messages
Case One: California
Case Two: Mid-Atlantic States
Situation : The California Energy
Commission proposes mandatory
installation of programmable thermostats
for all new homes
Situation : East coast utility quoted in article
stating that consumers will save an
average $8/month for meters that will cost
them $6/month to install
Response : Consumer backlash over
perception of loss of control and choice
Response : While article was generally
favorable, the potential value proposition
($2/month savings) was not compelling
Status: CEC conducting load
management hearings and considering
multiple forms of load reduction
Status: The utility is seeking cost recovery
for further study and pilot programs
Lesson : Clarify the benefits and potential
energy cost savings to consumers
Lesson : Emphasize consumer value
propositions in addition to average savings
Source: Public Utilities Fortnightly, April 2008; Washington Post article, Dec
2007; KEMA research and analysis
Given multiple industry interests, there are still numerous
key questions each utility will need to consider:
Which technologies are ready for investment now? Which ones
should be deferred?
What is the right regulatory recovery scheme (short and longterm)?
How will consumers accept and interact with these applications?
How will incremental CapEx requirements be integrated into
existing grid resource plans?
What rate and service offerings are needed to maximize consumer
participation?
How well will standards drive innovation, while maintaining
security and reliability?