GE Energy
Session 5 of a 5 Part
Series on the Smart Grid
The Smart Grid … Lunch and Learn
Session 5: The Smart Grid –
The
e View
e From
o Rural
u a America
e ca
1
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
Grid… The View from Rural America
2
Session 5: The Smart Grid – The View From Rural
America
Topics:
Previous Session Review
• Market
M k D
Drivers
i
• Increasing Costs
• Smart Grid Solutions – A Recap
The Role of Advanced Metering Infrastructure (AMI)
WiMAX … Bringing Broadband and the Smart Grid to Rural America
“Green” Generation in Rural America
• Biomas Generation
• Small and Large Wind Generation
• A Role for PV?
The Impact “Green” Generation on the Distribution System
Impact of Policy Discussion
3
Smart Grid - Review
Industry challenges
9
9
9
9
9
Soaring energy demand
Power outages’ financial impact
Green energy takes center stage
Electricity prices on the rise
Aging infrastructure/workforce
5
Electricity prices on the rise
U.S. sees 6.5%
spike in ’09
electric
l t i bill
bills
6.5%
%
Source: EIA (Energy information Administration)
6
Electricity … Poised to change the world again
“We can’t solve
problems by using the
same kind of thinking we
used when we created
them.”
- Albert Einstein
7
The Smart Grid
Growing complexity in modern grids
9
Grid inefficiency
Source: AEP PUC Hearing
10
Aging assets
Transformer failure rate
100%
80%
60%
40%
20%
0%
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
11
Emerging Capabilities
Wide-Area
Protection &
Automation
Wide-Area
Monitoring
g
& Control
Renewables
Forecasting
Renewables
Smoothing
Delivery
Optimization
Demand
Optimization
Asset
Optimization
12
Smart Grid – The
View from Rural
America
Rural Electric Cooperatives – An Overview
864 distribution, 66 generation & transmission cooperatives serving:
40 million people in 47 states
17.5 million businesses, homes, other establishments in 2500 of 3141 (80%) counties in U.S.
12% of U.S. population
Electric cooperatives in the United States:
Own/maintain 2.5 million miles (42%) of nation’s distribution line, covering 75% of U.S.
landmass
Deliver 10% of total kilowatt hours sold in U.S. each year
G
t almost
l
t 5% off electricity
l t i it produced
d
d iin U
S each
h year
Generate
U.S.
Own assets worth $100 billion
Employ nearly 67,000 people
Pay over $1.2 billion state/local taxes
Source: National Rural Electric Cooperative Association
14
American Recovery & Reinvestment Act of
2009
10 8
10.8
7.2
12.7
Plus $
$30-60B in
additional customer
spend
4.5
BPA
WAPA
2.7
3.3
5.0
Smart
Grid
46 2
46.2
Energy
Efficiency
Fossil
Energy
Broad America
Bonds/
Energy
Band Competes Guarantees Segment
~$100 billion energy related spend
15
What is a Smart Grid?
The integration
g
of two infrastructures… securely
y
Electrical infrastructure
Electrical
Infrastructure
Information
Infrastructure
Sources: EPRI® Intelligrid
16
ARRA Broadband Provisions
ARRA allocates $7.2B for broadband funding
$4 7B to National Telecommunications & Information Administration (Commerce)
$4.7B
$2.5B to Rural Utilities Service (Agriculture)
National Telecommunications & Information Administration funding
(Grants)
Provide broadband to people residing in unserved/underserved areas, community
support organizations (schools, libraries, etc.), agencies that facilitate broadband use
by low-income,
o
co e, aged, ot
other
e vulnerable
u e ab e g
groups
oups
Stimulate demand for broadband, job growth, economic development
Rural Utilities Service funding (Grants/Loans)
At least 75% of area receiving funds must be in rural area without sufficient access to
high speed broadband service to facilitate rural economic development
Priority given to projects that will give customers choice of more than one provider and
those that will provide service to highest proportion of unserved residents
17
The Power of 4G for the Smart Grid
Leading, Low-Cost,
Open Standards-Based
Standards Based,
4G Wireless Broadband
Technology
Non-line-of-sight (NLOS) service
into customer premise
> Ideal for hard-to-reach locations
Highly flexible bandwidth
delivers cost-effective network
build-out
Multiple concurrent sessions,
with full security
Operable
p
in both unlicensed and
licensed spectrum
500+ Members
$ Millions Invested in
Proven Technology
Strong, thriving ecosystem
> Intel, Cisco, Microsoft,
Motorola,
Siemens, Comcast, Alcatel
> No vendor lock-in
Open standards
> WiMAX Forum, IEEE, IETF
Proven telecoms-grade
reliability
y and scalabilityy
18
WiMAX Deployments … Worldwide
19
GE WiMAX Smart Grid Solution
Partners
¾
4G wireless communications network for ALL utility requirements
ƒ Advanced Metering, Demand Response, SCADA, Distribution Automation, Voice, and Mobile
ƒ Real-time Outage and Fault Detection, and Real-time Service Restoration … improving reliability
¾
Utility & Wireless Carrier collaborative business models (Shared CAPEX / Outsourced OPEX)
ƒ Utility capital for WiMAX Network deployment … O&M provided by Carrier with guaranteed SLA’s
¾
WiMAX SmartMeter by GE innovative, truly open, standards-based, smart meter
ƒ GE SmartMeter becomes a valued asset … providing a broadband pipe at every home
ƒ GE SmartMeter is gateway to the home … providing advanced utility and customer energy services
ƒ WiMAX Smart Grid Network collaboration … changing the game for the utility & telecom industries
20
WiMAX SmartMeter by GE
truly open, standards-based Smart Meter / Broadband Router
• Advanced Metering
> Full featured ANSI C12.19 Smart Meter
> Automated and On-Request
q
Reads
> Meter Events, Alarms, and Reporting
> Secure Remote Disconnect / Reconnect
> Outage / Restoration Detection & Reporting
> Remote Configuration & Firmware Upgrade
> Demand Management / Load Limiting
> On-Board Secure / Dynamic SOAP Server
• Standards
Standards--based Strong
g Security
y
> EAP-TLS Authentication; WiMAX PKMv2
> Tamper-proof Crypto EEPROM Key Store
> x.509 Digital Certificate based Identity
> Meter Password Management
• Broadband Access Router
> IPv4 / IPv6 Router; 802.1Q VLAN Switch
> IP DiffServ and 802.1P QoS / CoS Services
> DHCP, NTP, Firewall, Encryption
> VPN Services – TLS, IPSec
21
Rural Connectivity - Summary
Enables advanced metering and broadband connectivity using one unit and
one network
Expedited implementation through shared use of existing assets (poles,
right of way)
Helps to accomplish multiple ARRA objectives
Investing in the future
Key benefits for utilities, consumers, smart grid
Utiliti are able
Utilities
bl to
t better
b tt manage their
th i assets
t and
d resources
Customers are able to better manage energy use
Less energy
gy used
Two connections …
Internet
Reduced emissions
Win-win!
Plug-in
vehicle
Electricity
Broadband
network
Smart meter/
Smart modem
Solar
S
Smart
t
appliance
s
… one smart system
22
Small Utility
Generation Options
23
DG with small renewables
Wind
• Small wind <100kW
unit
• Economical wind
installation, using
existing infrastructure
Solar
• Residential, commercial
and utility applications
Biogas
• Gas engine power
range:
0 25 MW-4
0.25
MW 4 MW
• Fuel flexibility: variety
of renewable or
alternative gases
AeroDerivative GT
• Peaking application: technology
to augment unpredictability in
renewable power generation
24
Electricity Cost by State, January 2009
WA
7.65
NH
16.29
MT
8.44
OR
8.41
ID
7.05
ND
6.55
WY
7.76
WI
12.35
SD
7.58
UT
8.00
CO
9.25
CA
14.95
AZ
9.51
IL
10.78
KS
8.16
OK
7.67
NM
9.54
MO
7.02
KY
8.10
AK
17.25
PA
10.83
WV
7.40 VA
10.01
AR
8.94
AL
10.31
MA 18.12
RI 17.20
CT 19.49
NJ 15.8
DE 13.25
MD 14.40
DC 12.83
NC
9.45
TN
9.44
MS
9.64
TX
12 79
12.79
OH
9.39
IN
8.62
ME
16.03
16
03
NY
17.46
MI
11.17
IA
8.88
NE
6.89
NV
12.23
VT
14.37
14
37
MN
9.59
GA
9.40
SC
9.80
Residential Average
Price (cents per KW)
6.00 – 7.99
8.00 – 9.99
LA
8.92
10.00 – 11.99
FL
12.43
12.00 – 15.99
16.00 – 26.00
HI
25.76
Source: Energy Information Administration
Table 5.6.A. Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, by State, January 2009 and 2008
(Cents per kilowatthour)
25
Biogas
26
Biomass-to-power
Landfill Gas
Waste Water
Animal / Industrial
Treatment Plants
Bio waste
Biomass
Gasification
Fuel /
Technology
Methane from
anaerobic
digestion
Methane from
anaerobic
digestion
Methane from
anaerobic
digestion
Syngas from
gasification
Total Est.
Market
•$1 4 B
•$1.4
$0 54B
$0.54B
$1 0B
$1.0B
$15 6B
$15.6B
27
Gas engine
Unit size:
up to
t 4 MW / engine
i
Key benefits
• Fuel flexibility: access to alternative fuel sources
• Access to renewable incentives (if biogas used)
• Fast deployment
• Flexibility in plant size: installation of multiple units
• Portable; skid mounted solution possible
• High
Hi h efficiency
ffi i
Source: Nexterra web site
28
Biogas applications
Biogas sources
Enabling
technologies
(available)
Renewable
power generation
with gas engine
• Forest industry (wood chips)
• Diary farm (animal waste)
• Industrial (industrial waste)
Digester
• Municipal WWTP
• Industrial WWTP
• Landfill gas
Biomass
gasifier
29
Biomass gasification pilot
Source: Nexterra web site
30
Solar
31
Solar
Key benefits
• Continuous reduction in PV module cost
• Fast deployment
• Modular installation; flexible size
• Low infrastructure requirement on installation
• Power generation timing, matching the
demand
32
Solar potential in USA
1kW solar system
(per 100ft2)
Z
Zone
Average monthly
A
thl
kWh production
range
1
80-90
2
90-100
3
105-115
4
115-125
5
125 135
125-135
6
135-145
Source: GE data
33
Solar: PV application examples
18kW, Santa Maria de Roncesvalles
Pomplona, Spain
129 kW, Shafer Vineyards
CA, USA
10MW, Cáceres Project
Spain
Commercial
C
i l
building
Residential
R
id ti l /
Rural
Industrial
34
Preparing for the Future … PV grid parity is
coming
… without incentives
10%
40% 60%
90%
Prob
NJ
Commercial
Residential
IL
Commercial
Residential
GA
Commercial
R id ti l
Residential
CA
Commercial
Residential
‘16
‘18
‘20
Prob Prob
‘22
‘24
‘26
Prob
‘28
‘30
10-25% IRR’s
IRR s today in AZ,
AZ CT,
CT HI,
HI MA,
MA NJ,
NJ & OR with
incentives
35
Big Boxes Adopting PV Solar
W lM tL
Wal-Mart
Launches
h Solar
S l Power
P
Initiative
I iti ti
". . . provide as much as 20 megawatts of electricity, for prices less than it
currently
yp
pays
y local utilities . . . solar p
power companies
p
p
pay
y the upfront
p
costs of
installations and retain ownership of the systems, and enter long-term contracts
Source: Fortune, May 07, 2007
to sell electricity to their customers."
• Long Beach, CA
• Electricity Rate: $.145/kWh
Contract
•0 125/kwh 2
•0.125/kwh..
2.5%
5% escalation
escalation… ….. 20 years
years…
•390 KW ……$ 4.145/watt module cost….
– $6.10 install cost
36
Residents will realize future savings
Breakeven Cash Flow Analysis
using Home Financing
$/W
(installed)
Breakeven Retail Rate
(cents/kWh)*
8
18.8⍧
7
16.6⍧
6
14.3⍧
5
12.1⍧
4
9.8⍧
* Resident achieves cash savings when retail
electricity rate exceeds $/kWh value for 4kW
system
Calculations
Net capital cost ($)
$/W * 1000 *4kWp – Federal & State tax ITC
Annual payment ($)
Monthly payment (assuming interest is
compounded monthly) * 12 + O&M
y
output
p ((kWh))
System
4kWp
p * 8760 hours * capacity
p
y factor
Breakeven (⍧ /kWh)
Annual payment / system output * 100
Assumptions
• Location: Atlanta
• System size: 4 kWp
• Capacity factor:
15%
• Debt terms: 25
years
• Cost of debt: 7%
•
•
•
•
O&M (annual): $40
# hours/year: 8760
Federal ITC: 30%
State ITC: 35%
Residential customers who finance PV in Mortgage
can get Positive Cash Flow
Source: GE internal analysis
37
Utility-Scale Solution… Thin Film
Complete Solar System Kit
Example
Racking System
Thin Film PV Modules
GE Inverter
Cabling
Monitoring & Security
“GE offers a 1.5MW solar power plant kit, designed for ease of installation,
optimized for performance, and delivered with excellent GE execution and
reputation”
t ti ”
System Specs 1.5MW
“Plug & Play” Advantages
• GE Reliability & Execution
Area
Effi i
Efficiency
No. of Modules
Steel Posts
Production
System Life
10-14 Acres
8.5->12+ %CE
23,000
1,500
2 100 MWh/yr
2,100
>20yrs
• G
Grid
d Friendly
e d y & GE
G Controls
Co t o s
• Simplified & Scalable
• Cost Competitive
• Commercial Discussions
4Q08
38
Small wind
39
Small wind
Unit size:
< 100kW /unit
Key statistics
Key benefits
2008 Global small wind
market
• Ease of scalability
38.7MW
19,000 units
$156MM (sales)
53% growth over 2007
Players
Total 219 companies
• Federal tax credit (30%)
• Further state incentives on renewables
• Utilization of existing infrastructure
(Tower & grid connection)
• Swift installation
> 74 (US)
> 145 (Others)
Projection
1 7GW in USA by 2013
1.7GW
Source: AWEA Small Wind Turbine Global Market Study
2008
Source: Southwest
Windpower
40
Small wind: Application examples
Residential
applications
li ti
Utility pole
i t
integration
ti
Retail car park
Source: Southwest Windpower
41
Small wind: State incentives
Source: AWEA Small Wind Turbine Global Market Study
2008
42
AeroDerivative
Gas Turbines
43
AeroDerivative Gas Turbines
Unit size:
20 – 100MW
Key benefits:
• Proven reliability and availability
• Fast load response
• Excellent starting reliability @ max load in <10mins
• Short installation time
• Small footprint; lightweight, compact design
• Dual fuel capability
• Outstanding low emissions
• High efficiency for simple & combined cycle, and cogeneration
applications
44
AeroDerivative GT + Wind
X Traditional manual dispatch when generation is needed
• Deregulation/dispatch drives generation investment
• Grid system manages wind volatility and takes all it can get
Y Managing real-time wind volatility through a smart
controller… Wind Intermittency Management System (IMS)
• Nodal market calls upon most efficient generation, high ancillary market
• Benefits/penalties for not meeting wind forecast
45
AeroDerivative GT + Wind
Wind needs
o Multiple
M lti l start/stop
t t/ t cycles
l
without maintenance
penalty
AeroDerivative GT
Capabilities
p
9Proven AeroDerivative
design
o 10 minutes or less to full
power… The higher the
ramp
p rate the better
9 Demonstrated … plus
o High simple cycle efficiency
9Best in industry is @ 44%
o High part power
po er efficienc
efficiency
and low emissions
9 Hot
H td
day performance
f
o Remote operation
9Demonstrated
50 MW/min ramp rate
without p
penalty
yp
possible
46
AeroDerivative GT + Wind
Example: 400 wind + LMS100
(One representative week of good wind operation)
500 0
500.0
400.0
300.0
Actual Wind
MW
200.0
LMS power
Forecast Wind
(unbiased)
100.0
0.0
-100.0
-200.0
1
13
25
37
49
61
73
85
97
109
121
133
145
157
Hour
NW Miller 2/7/2007 Energy Consulting
47
System integration
48
Distributed generation: System integration
Equipment
Small
Solar
Small Wind
CONVERSIO
N
LOAD
STORAGE
Batteries
Inverter
T&
D
49
Managing the Grid
•Planning
•Building
•Safety
•Reliability
50
Summary
Unique opportunity to bring 4G WiMax technology to rural
America
NRECA and NRTC collaboration … next generation networks
Small “Green” Generation … enabled
Smart Grid reliability
P ti l S
Partial
Solution
l ti tto F
Farm W
Waste
t Issues
I
51