Strategic Technology Research Backgrounder ElectriNetSM The Electric Power Research Institute, Inc. (EPRI) conducts research and development relating to the generation, delivery and use of electricity for the benefit of the public. With a staff of recognized industry experts, EPRI has established itself as a thought leader in the electric sector worldwide. The organization is recognized for developing and demonstrating innovative technologies, analyzing and enhancing current technologies, as well as seeking alternative methods to produce and deliver electricity. EPRI’s Technology Innovation (TI) organization has been integral in leading the development of key technologies that have benefitted the electricity industry in numerous ways. The organization focuses on stimulating innovation and developing enabling electricity technologies for adoption over a 5-20 year period, or longer. For instance, EPRI research has lead to recognition of the global impact of mercury, the development of a high-impact decontamination process and technologies to reduce carbon emissions from coal generation. The technology challenges that the electricity industry will face in achieving a low carbon future will require groundbreaking technology development in a number of strategic areas. EPRI has identified 10 strategic programs that will be the focus of its longer term research efforts from 2009 and beyond. One of the 10 is described here. ElectriNet SM Current Situation What is the current state of the art? Power system monitoring, analysis and control functions need to be performed within two intertwined systems: power system operation and power market operations. The former involves the actual minute-tominute, reliable operation of the power system from energy control centers across the country. The latter involves economic operation and optimization within an array of commercial transactions. Both the commercial and physical functions need to be performed in tandem. Current methods of monitoring, analysis, and control are sufficient for the current resource mix which is predominantly dispatchable or a centralized plant. However, current power system planning and operational methods will be inadequate for large penetrations of low-carbon technologies, which tend to be variable and distributed in location and ownership. For example, as the output of distributed or central station renewable resources (e.g., solar and wind) fluctuates, this variability will need to be monitored and analyzed, and appropriate control actions need to be initiated to ensure the full utilization of these renewable resources without degrading system reliability. Besides the variability of renewable resources, modern power systems must be able to accommodate many other uncertainties. There are a number of sources of uncertainty including market participant behavior (especially with increasing application of demand response as a resource), availability of distributed resources not owned by the system operator, and variability of renewable fuel supply. Risks that evolve from an environment of increased uncertainties also need to be managed through physical and financial operations. Advanced methods for decision support, analysis and control are therefore required. Why is EPRI investing in this area? As the demand for more electricity rises, producing low-carbon electricity in a secure, reliable, and environmentally friendly way is becoming more and more important. Accomplishing this will require a number of tactics, including the integration of large, low-carbon central station generation with local energy networks, the electrification of transportation, and evolving the grid into a smart grid. EPRI research is focused on advancing each of these complex concepts. However, the essential enabling architecture that will monitor, analyze, and control the synergy of these elements has not been addressed to date. The Opportunity What are the potential superior innovations? The North American electric grid has been called the most complex machine ever built. As it exists today, SM this massive machine can be compared to a 1957 Chevy. The objective of the ElectriNet program is to upgrade the grid to something comparable to a current day model of hybrid electric vehicle – a machine that uses state-of-the-art systems engineering, information technology, sensors, communications, microprocessors and visualization technologies to optimize performance and efficiency. The ElectriNet program provides a new perspective on how to manage supply and demand of electricity given the nature of the existing and emerging distributed, heterogeneous communications and control networks. The innovation of ElectriNet concept is to provide important elements of a foundation framework that can be building blocks for development of future advanced applications in order to optimize performance, integrate new resources, and improve reliability in a smart grid. The framework must take into account the core concepts of interoperability and support for multiple operational criteria. Another aspect of ElectriNet innovation will be the capability to provide a set of resources that can be used for understanding, applying, and building next-generation operational and planning systems supportive of power markets within modern electricity value chain contexts. How could this research change the industry? The ElectriNet concept is the architecture for managing the power grid of the future that will include widespread distributed resources (including demand response, storage and electric vehicles) and a high penetration of renewable generation. This technology infrastructure will maintain (and improve) the integrity, reliability, and security of the grid. The ElectriNet architecture can enable a highly interconnected, complex, and interactive network of power systems, telecommunications, the Internet, and electronic commerce applications. It could facilitate more competitive electricity markets by supporting myriad informational, financial, and physical transactions between traditional utilities, independent power producers, third-party providers of electric energy services, consumers, and new members of the electricity value chain. Most importantly, it integrates all of these market integration functions with the real time management of the grid itself to assure reliable and secure operation. The Program How are innovations being developed? Complementing the ongoing EPRI base program research, the ElectriNet program focuses on designing a system and market operation framework that can enable the integration of large low-carbon, central station generation with local energy networks, electric transportation, demand response, and a smart grid. Working with utilities, independent system operators, equipment manufacturers and other stakeholders, the research team will define and prototype the monitoring, modeling and simulation, and control 2 functions needed to realize the benefits of widespread implementation of low-carbon generation technologies. This will enable central station and distributed renewables and storage, PHEVs, and demand response technologies to interact in real time and deliver the most reliable, economic, and lowest carbon emitting electricity service possible. There are four primary areas of research in the project. The first area will seek to advance system and market operators’ monitoring capabilities by providing measurement, data management, and visualization technologies. The team will define new information needed by system operators and market operators, determine how to obtain this information from raw data, integrate this information into system and market operations, develop ways of optimally visualizing this information, and develop prototype displays/dashboards. In addition, the team will develop and demonstrate new visualization and analysis approaches that incorporate phasor measurement units and other advanced system monitoring approaches. This will be combined with an advanced communication network and real time simulation tools to identify and manage system performance issues associated with widespread distributed and intermittent resources and demand response. The second area will seek to advance system and market operator analysis capabilities by developing accurate models and simulation tools. The team will also develop, and enhance the aggregated load and generation models of low-carbon generation technologies for system operation, as well as new/modified product and participant models for market operation. The product team will also evaluate system and market simulation tools to identify tool enhancement needs. The third area will seek to advance system and market operator control capabilities by designing a control architecture that can utilize the central and distributed resources reliably and economically. The team will design a control architecture for system operation (including both automatic controls and operatorinitiated controls) that integrate widely distributed local controllers (local energy networks) with low-carbon generation technologies. The team will also develop advanced unit commitment and dispatch algorithms that accommodate new/modified product models and new market participant models (including an aggregator model) for effective market operation. The project team will test and enhance the new control schemes through simulation. The fourth area will devise an analytical framework to identify, measure, and monetize the benefits (including system reliability and security, economic benefits and market performance, and public benefits) attributable to investments in the build-out of the ElectriNet system. When will applications occur? Applications of key technologies developed from the ElectriNet program will start in 2014. The ElectriNet program has established a three-phase approach that will be carried out over a five year period. Framework and architecture design will start in 2009 and run to the end of 2010. Analytics will start in early 2010 and end in late 2011. Technology development and testing will begin in 2011 and end in late 2013. Value What are anticipated costs and benefits? With the ElectriNet architecture in place, energy performance can be optimized through a market structure where appropriate values are placed on all-important quantities (reliability, society costs of different sources of generation, importance of the energy to different devices and systems, storage systems availability, etc.). 3 Deployment of the ElectriNet architecture will create an environment to realize CO2 reduction from the increased use of renewable resources – both at the central generation and distributed level and from the optimization of the dispatch of all generation resources with end-use devices, building energy systems and appliances. This architecture may also allow the formation of “products” which can be offered in wholesale markets involving both energy and ancillary services. System reliability and security could be improved as a result of the use of widely distributed resources managed in conjunction with central resources. The ElectriNet architecture will facilitate the use of sensors and controllers that allow flexible and rapid response to disturbances and changing conditions. Overall, the ElectriNet architecture has the potential to benefit the environment, consumers, utilities and the nation as a whole in numerous ways. Benefits to consumers include expanded service offerings, improved reliability and power quality as well as increased efficiency and productivity. Utilities would be able to enhance customer service, reduce costs and facilitate integration of electric vehicles, storage and distributed resources. The nation as a whole would benefit form a reduced impact on the environment and enhanced energy security. About EPRI The Electric Power Research Institute, Inc. (EPRI, www.epri.com) conducts research and development relating to the generation, delivery and use of electricity for the benefit of the public. An independent, nonprofit organization, EPRI brings together experts from academia and industry as well as its own scientists and engineers to help address challenges in electricity generation, delivery and use, including health, safety and the environment. EPRI's members represent more than 90 percent of the electricity generated and delivered in the United States, and international participation extends to 40 countries. EPRI's principal offices and laboratories are located in Palo Alto, Calif.; Charlotte, N.C.; Knoxville, Tenn.; and Lenox, Mass. ### Contact: Don Kintner EPRI Manager, Communications dkintner@epri.com 704-595-2006 4