GE Energy
Session 3 of a 5 Part Series
on the Smart Grid
The Smart Grid … Lunch and Learn
Session 3: The Smart Grid – The Distribution View
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Smart Grid Learning Series
Session 1: The Smart Grid and its Benefits
Session 2: The Smart Grid… The Consumer View
Session 3: The Smart Grid… The Distribution View
Session 4: The Smart Grid… The Transmission View
Session 5: The Smart Grid… The View from Rural America
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Session 3: The Smart Grid and The Distribution View
Topics:
Smart Grid Overview
• Industry challenges
• Transformation of the grid
• Benefits Overview
More Focus on the Distribution System – a “Smarter” Grid
Impact of Green Generation on Distribution
Improvement Options for Smart Distribution
• Reliability
• Efficiency
• Advanced Distribution Management Systems
Impact of Policy Discussion
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Industry Challenges
9 Soaring energy demand
• World energy consumption will triple by 2050
9 Power outages financial impact
• Cost of power disturbances in US ~ $100B a year
9 Green energy takes center stage
• Generation of electricity in US accounts for ~ 40%
of CO2 emission
9 Electricity prices on the rise
• U.S. sees 6.5% spike in ’09 electric bills
9 Aging infrastructure / workforce
• The average US transformer age is just under 40
years old
• 50% of US utility workers are within 7 years of
retirement
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Transformation of
the Grid
Transformation of the Grid
Flexibility for Emerging Capabilities
Wide-Area
Protection &
Automation
Renewables
Forecasting
Wide-Area
Monitoring
& Control
Renewables
Smoothing
Delivery
Optimization
Demand
Optimization
Asset
Optimization
A Smarter Grid
The integration of electrical and information infrastructures, and the incorporation of
automation and information technologies with our existing electrical network.
Comprehensive solutions that:
9 Improve the utility’s power reliability, operational performance and overall
productivity
9 Deliver increases in energy efficiencies and decreases in carbon emissions
9 Empower consumers to manage their energy usage and save money without
compromising their lifestyle
9 Optimize renewable energy integration and enabling broader penetration
That deliver meaningful, measurable
and sustainable benefits to the utility,
the consumer, the economy and the
Environment
Electrical infrastructure
More Focus on the Distribution System
And Consumer Interface
Information infrastructure
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Smart Grid Benefits
Operational Efficiency
Energy Efficiency
• Integrate distributed
generation
• Reduce system and line losses
• Enable DSM offerings
• Optimize network design
• Improve load and VAR
management
• Enable remote monitoring and
diagnostics
• Improve asset and resource
utilization
Customer Satisfaction
• Comply with state energy
efficiency policies
Economy
Stimulus
“Green” Agenda
• Reduce outage frequency and
duration
• Reduce GHG emission via DSM
and “peak shaving”
• Improve power quality
• Integrate renewable generating
assets
• Enable customer self-service
• Reduce customer energy costs
• Comply with Carbon/GHG
legislation
• Enable wide adoption of PHEV
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Roadmap for a Smarter Grid
What it is
Demand
optimization
Manage peak via control
of power consumption
Why
Utility Value/MM Customers*
Defer upgrades, optimize
generation & renewables
Delivery
optimization
Reduce delivery losses in
distribution systems
Less energy waste and
higher profit margins
Asset
optimization
Prognostics for proactive
equipment maintenance
Reduced outages and
focused maintainers
Reliability
optimization
Wide Area Protection &
Control
Increased network
performance & reliability
Renewables
optimization
Use of Forecasting &
Smoothing
Compensation for
production variability
$16MM/yr, 51K tons of CO2 reduction+
Res. consumer savings up to 10%
Based on 1.6% peak load reduction using critical peak
pricing resulting in reduction in fuel costs and deferral of
generation capacity
$7MM/yr, 45K tons of CO2 reduction+
Based on 0.2% loss reduction and 0.5% CVR peak load
reduction resulting in reduction in fuel costs and deferral
of generation capacity
$11MM/yr, ~4.5 yr ROI
Based on system-wide deployment of advanced
transformer M&D resulting in transformer life
extension and reduction in inspection, maintenance
& repair costs
$7MM/yr
Based on the deferral of the capacity upgrade of two
220kV transmission lines for 3 yrs (each line 30 miles
long with a cost of upgrade of $1.5MM per mile)
Key step for meeting RPS targets,
especially in areas with weak grids
*Utility savings are approximate annual
savings per one million customers
+ $85/kW-yr peak generation capacity value
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Delivery
Optimization
Grid Inefficiencies
Source: AEP PUC Hearing
12
Understand the Fundamentals ….What are VARs?
9 Consider the work to pull a wagon.
9 Total Pull consists of Forward and Upward Pull
9 Only the Forward Pull does work to move the wagon
9 The Forward Pull ~ Watts
9 The Upward Pull ~ VARs
9 PowerFactor = Forward/Total = COS(Θ)
Total
Pull
Upward
Pull
9 Cos(51°) = 0.63
Θ=51°
Forward
Pull
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Understand the Fundamentals ….What are Volts & Amps?
9 Again consider pulling a wagon.
9 Volts are how hard you pull.
9 Amps are how fast the wagon goes against the rolling resistance
9 Pulling force ~ Volts
9 Speed ~ Amps
Pull Harder
to go faster
Speed
Resistance
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Understand the Fundamentals ….What is IVVC?
VAR Optimization - Power Factor Correction
Distribution feeder capacitor bank control to provide the benefit of energy loss
reduction by coordinating capacitor banks control.
Conservation Voltage Reduction (CVR)
Coordinating regulator and LTC control to reduce feeder voltage levels to provide
the benefit of load reduction on the feeders and substation.
Integrated Volt/VAR Control (IVVC)
Coordinated Control of substation transformer tap changers, feeder voltage
regulators and capacitor banks to ensure a VAR and voltage profile to optimize
these benefits.
Why Now?
Until recently, the benefits and costs have not been tied together between the
distribution, generation, consumer, etc.
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IVVC Benefits
18
15
12
MW
9
6
3
VAr Optimization ON
0
-3
MVAr
9 Reduced VAR deficiencies
9 Reduced distribution and system losses
9 Reduces or delays distribution rebuilds
9 No need to manually control/inspect banks
9 Automatic Fuse Detection
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Conservation Voltage Reduction Benefits
Voltage Control
Reduces Load at Peak
Demand
MW
Critical Peak (100 hrs per year)
Peak (1000 hrs per year)
Voltage Control
Reduces Load at base load
Base Load
(8760 hrs per year)
Average Daily Load Profile
9 Reduce voltage at peak for economics
9 Reduce voltage across base to reduce demand
9 Monitoring improves visibility of voltage along circuit
9 Significant positive PV calculated for Utility and Consumer
9 Reduced CO2 emissions
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IVVC Value Proposition
SG
Technology
Enabled Capability
Loss
Reduction
• Reduced base & peak
generation cost
• Avoided generation
& T&D capital
Reduced CO2
Emissions
Peak hour
(peak load
reduction)
IVVC
Conservation
Voltage
Reduction
Regular
hour
O&M
Savings
Benefits
• Reduced peak
generation cost
• Capital avoidance for
peak generation & T&D
equipment
• Reduced
generation cost
• Capital avoidance for
base load
• Cap bank blown fuse
detection
• Reduced capacitor bank,
LTC and voltage
regulator inspections
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Fault Detection Isolation & Service Restoration (FDIR)
Sub #1
Close
Tie
Open
Switch LAN
Breaker
D20 EME
D20 ME
Step 1: Fault occurs.
Fault
Detected
Feeder Trips to
Lockout
CB13
Step 2: FDIR routine communicates with feeder switches to
Fault
determine fault location and prefault load.
Step 3: FDIR routine determines if capacity exists on
alternate feeder.
Step 4: If capacity exists then FDIR routine sends a control to
No Fault
Customers Detected
Interrupted
Prefault Load
Feeder
Switch
i BOX
Feeder
#1
SEL 351
Power
Restored
isolate fault by opening feeder #1 switch.
g
D25
NO
If no capacity: “Unable to restore segment due to lack of
capacity on Feeder 2”.
Feeder
Tie Switch
Feeder
#2
Step 5: FDIR routine sends a control to close feeder tie switch.
Feeder
Switch
i BOX
Power restored to customers on non-faulted feeder
section
SEL 351
CB16
Sub #2
D20 EME
D20 ME
Capacity
Check
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FDIR Value Proposition
SG
Technology
Enabled Capability
Benefits
Faster outage
detection
Fault Detection
Reduced fault
investigation and
patrol time
Improved SAIDI
FDIR
Fault
Isolation &
Restoration
Automated
switching
Reduced need for
manual switching
Faster
restoration
of certain
customers
Improved SAIDI, SAIFI
and customer
satisfaction
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Delivery Optimization – Reliability Benefit Summary
Fault Detection Isolation Restoration
Incremental Costs in Dollars per Customer Minute Interrupted (over Base Case)
Base Case – Manual Operated Disconnects (MOD)
Case 1 – Manual Operated Reclosers
Case 2 – Reclosers with Remote Control
Case 3 – Automatic Fault Detect Isolate Restore (FDIR)
Case 4 – Closed Loop Automation
Case 5 – Distribution Management System
Case 6 – Smart Grid with Meters
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$Case 1
Case 2
Case 3
Case 4
Case 5
Station
F1
Source: OG&E Study, Distributech Conference 2009
Case 6
Typical System
Seg 1
S1
Seg 2
S2
Seg 3
T
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Example Outage Scenario – Today
9 Fault occurs
Customer
Trouble
calls
R
9 Customers call in to report outage
– process starts now
R1
9 Recloser predicted out by OMS
– limited data
T1
9 Crew dispatched & arrives
prediction may be adjusted
N.O.
–F1
R
T2 T3
9 Crew patrols circuit to identify fault location
9 Fault located and switching takes place until maximum customers restored
9 Crew repairs fault, closes recloser manually
9 Manual switching calculations may be be necessary to shift additional load
9 Outage completed in OMS by dispatchers – when they can
9 Some customers respond they are still out – process starts over again
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Outage Scenario with AMI/OMS/DMS Integration
9 Meters replace customer calls as
initial outage notification
R
Meter
Information
M
M
9 OMS predicts probable device
– more accurate
R1
9 As customers call, status available
immediately
T1
9 Advanced DMS used for FDIR using
real-time load & voltage data
9 Load flow analysis is used to determine
how best to pick up load from one or more
adjacent circuits
N.O.
M
M
F1
M
R
M M
T2 T3
M M
M
9 Meters are pinged immediately following each switching action to
ensure all customers in non-faulted section are restored
9 Crew investigates, repairs, restores
9 Meters that do not respond are re-processed by OMS prediction
9 Crew immediately notified to follow-up (nested outage)
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Asset
Optimization
Aging Assets & Workforce
The average US
transformer age is just
under 40 years old
Transformer Failure Rate
100%
80%
60%
50% of US utility workers
are within 7 years of
retirement
40%
20%
0%
Average
1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97
Age in Years
Utility Perspective
Operational efficiency
Reducing O&M expense, more efficient deployment of capital & human
resources, and increased productivity
Source: William Bartley P.E. Hartford Steam Boiler Inspection & Insurance
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Transformer On-Line Monitoring & Diagnostics?
9 Detecting signs of failure conditions
9 Reducing probability of catastrophic failure
9 Reducing unscheduled outages
9 Addressing specific unit or population issues
9 Loading T&D equipment for maximum efficiency
9 Deferring upgrade capital costs
9 Managing & extending the life of equipment
9 Reducing O&M costs
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Asset Optimization – On-Line Monitoring & Diagnostics
Station Transformer Risk Model
Without
Monitoring
Current
failure rate
1%
.01
Detected 30%
.003
Failures before M&D:
Undetected 70%
.0007
With
Monitoring
Current Failure rate of
1% is a conservative
average for a fleet.
1%
.01
30%
.003
70%
.0007
60% *
.00042
Faults detected by M&D Systems
40%
.0028
10%
Catastrophic .0007
Proportion of faults:
90%
Non-catastrophic .0063
10%
.00028
90%
.0025
Faults not detected
by M&D Systems
Risk of unexpected Failure
can be reduced by 2.5
fold!
(.00028 / .0007 = 2.5)
* 60% is an industry accepted effectiveness number for a quality monitoring
system. Failure reduction figure based on a CIGRE and on a KEMA study.
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Transformer Asset Optimization Value Proposition
SG
Technology
Enabled Capability
Condition
based
inspection
Condition based
maintenance
Benefits
Reduced inspection cost
Reduced maintenance
cost
Reduced corrective
maintenance cost
M&D
Early detection
of failures
Reduced blackout
probability
Loss revenue during
blackout
Improved asset
life
Less capital spending
Improved
system
throughput
Improved power sales
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We Will See Advances in Technology – “Smarter”
From reactive, non-integrated…
GIS,
OMS
Analytics &
Visualization
Demand
Optimization
Operational
Database
(alarms, trending,
load profiles, etc)
DG Control,
PHEV
Management
Asset
Optimization
Delivery
Optimization
Real-time
Database &
Network
Model
IVVC
CA
ONR LM DPF
FDIR
TP
SOM
LE
RPC SCA
Meter Data
Management
OCP/OVP DTS
Open Standards – CIM, SOAP, XML, ESB
Advanced Distribution Infrastructure
To interactive decision support
Field Devices
(switches,
reclosers, cap
banks, etc)
Meters, PQ,
Customer
Interface
DG, MicroGrids, PHEVs,
advanced
protection
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Smart Grid Policy Momentum




 












Tier 1
Tier 2
AMI/SG & RPS
AMI/SG only
Electric Decoupling


RPS only
FERC/NARUC
Collaborative
Pending Electric Decoupling
Sources: National Council on Electricity Policy, Pew Center on Global Climate Change, NRDC, Capgemini Survey of NARUC and CAMPUT (2009)
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Summary
•
Economic and environmental demands are forcing functions
•
Investment in technology can accelerate their adoption
•
The Smart Grid is dynamic and must be viewed as a system
•
Distribution systems will be more in the technology spotlight
•
Policy will drive incentive for delivery optimization
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Smart Grid Learning Series … next week
Session 1: The Smart Grid and its Benefits
Session 2: The Smart Grid… The Consumer View
Session 3: The Smart Grid… The Distribution View
Session 4: The Smart Grid… The Transmission View
Session 5: The Smart Grid… The View from Rural America
32