National Electrical
Manufacturers Association
DOE’s Grid Modernization
Activities
Potential Roles for Equipment
Manufacturers
William Parks
Office of Electricity and Energy Assurance
March 17, 2005
We’ve Changed!
Office of Electricity and
Energy Assurance
Mission
“The mission of the Office of Electricity and
Energy Assurance is to lead national efforts
to modernize the electric grid, increase grid
capacity and reliability, and strengthen
energy infrastructure security.”
Organizational Structure
Office of the Director
Resource
Management Staff
Research &
Development
 Transmission Reliability
 Electric Distribution
Transformation
 Electricity Storage
 Superconductivity
 GridWorks
 GridWise
 Infrastructure security
technology
 Visualization and
Decision Analysis Tools
Permitting, Siting,
& Analysis
Infrastructure Security &
Emergency Response
 Modeling and Analysis
 Electric Markets
Technical Assistance
 Electricity Exports/
Presidential Permits
 Power Marketing
Administration Liaison
 Energy Infrastructure
Protection
 State/Local Gov’t
Partnerships
 Training and Exercises
 Visualization
 Critical/Vulnerability
Assessment
 Emergency response
support
Grid Modernization – A National
Energy Priority
“Transmission lines and pipe lines and generating facilities are deteriorating.
Different regions share electricity over unreliable transmission lines. These
strains on the system lead to higher prices and they lead to bottlenecks in
delivery. …we've got modern interstate grids for phone; we've got a modern
connection with our highways; America needs a modern electricity grid, too, in
order to make sure that we can compete in a global economy…”
March 9, 2005
“To keep our economy growing, we also need reliable supplies of affordable,
environmentally responsible energy. Nearly four years ago, I submitted a
comprehensive energy strategy that encourages conservation, alternative
sources, a modernized electricity grid and more production here at home,
including safe, clean nuclear energy.”
State-of-the-Union Address, February 2, 2005
“Consumers and businesses need reliable supplies of energy to make our economy
run -- so I urge you to pass legislation to modernize our electricity system,
promote conservation, and make America less dependent on foreign sources of
energy.”
State-of-the-Union Address, January 20, 2004
“…it's clear that the power grid needs an overhaul. It needs to be modernized. As we
go into an exciting new period of American history, we want the most modern
electricity grid for our people… we need more investment; we need research and
development…”
September 15, 2003
President George W. Bush
Outage Costs to the Nation
Selected 2004 Reliability Events
June 3, ‘04
Over 400,000
without power
in Texas
August 16, ‘04
800,000 lose
power in
Hurricane
Charley
May 27, ‘04
May 31, ‘04
Schools closed
Power outages
causes fire at by power outage
in Detroit,
hospital, school
Michigan
in Illinois
May 17, ‘04
Multiple power
outages affect
MichiganIndiana
May 12, ‘04
Tree limbs cut off
power to 31k in
Utah
Border
Outages are widespread,
frequent, and costly to
the economy*
October 29, ‘04
60,000 lose
November 2, ‘04
power in San
Over 280,000
Francisco,
lose power in
California Michigan
November 5, ‘04
35,000 in DC
area lose
power
January 19, ‘05
25,000 without
power in
California
April 29, ‘04
200k lose power in
Washington
State
January 31, ‘05
60,000 lose
power in
Jacksonville
*Recent LBNL study estimates annual costs from outages at
$80 Billion
Grid Modernization Issues
 Need greater regulatory certainty at the Federal,
regional, and state levels (e.g., restructuring, siting,
and permitting)
 Need to attract more investment and develop new
technologies for upgrading aging electric delivery
infrastructure and equipment
 Need mandatory and enforceable national electric
reliability standards
 Need to relieve constraints in power flows and
supplies
 Need to strengthen regional entities for streamlined
planning and more efficient market operations
Grid Modernization Benefits
 Improves electric reliability and lowers outage
costs to consumers
 Strengthens energy security and lowers financial
risks to utilities from terrorism
 Promotes investment in infrastructure, jobs
creation, and regional economic growth
 Enables greater development of alternative
energy sources (e.g., wind, nuclear)
 Increases energy efficiency and lessens
environmental impacts
Grid Modernization and Electric
Reliability Strategies
 Prevention – keep problems from occurring
 Detection – ready for immediate action
 Response – proper ”tool kits” for any contingency
 Modernization – “next generation” of grid technologies
and partnerships for market integration
Portfolio of Technologies
HTS tape to HTS cable
Advanced
Conductors
Novel storage
concept
Diamond Sensor
Smart Controller
2kWh Superconductor
Flywheel Demonstrator
Superconducting
Substation
Eastern
Interconnection
Phasor Project
Supervar System
ETO DC to AC
inverters
Interconnection
Device
Partnerships for Market Integration
(Recent Examples)

IEEE 1547 – Standards for interconnecting distributed energy
systems with the grid

New England Demand Response Initiative

Mid-Atlantic Demand Response Initiative

PJM Interconnection – Implementing IEEE 1547 in Mid-Atlantic
states

Pre-certification of Distributed Generation

NRECA

NARUC

USCHPA

FERC
Mechanisms for Participation

Planning – help determine future priorities
and advanced technology needs of the grid

Implementation – support research,
development, and demonstration of
advanced transmission and distribution
technologies and appropriate electricity
legislation

Evaluation – provide feedback on the
effectiveness of RD&D activities and new
technologies
Planning –
Help determine future priorities and advanced technology needs
of the grid


Participate in RD&D planning
workshops and webcasts
National Electricity
Roadmap
~120
Organizations
participated
Provide feedback on program
plans and office documents
Program Plans

Stay abreast of office
activities by visiting the
office website often

Be cognizant of pertinent
energy-related legislation
Implementation –
Support research, development, and demonstrations of advanced
transmission and distribution technologies and appropriate
electricity legislation

Participate in solicitations

Upcoming GridWise/ GridWorks
solicitation

Develop advanced
technologies

Partner with utilities to field
test the latest technologies

Electric reliability legislation
Utility
Organizations
+
Equipment
Manufacturers
Energy Legislation –
Electricity Title (e.g. HR6)
 Most urgent: Create legal foundation for mandatory and
enforceable national electric reliability standards
•
•
•
•
Establish FERC jurisdiction for reliability
Establish ERO to develop technically sound standards
Either ERO or FERC can enforce standards
Provide technical support to FERC and ERO
 Facilitate grid investment by reducing siting, permitting, and
cost recovery uncertainties
• Designate “National Interest Electric Transmission Corridors”
• Corridor designation required for FERC exercise of backstop authority
• Coordinate federal review of T&D projects, if applicant requests
• Support regional transmission plans, siting protocols, and cost allocation plans
 Other provisions
• Authorize OE and RD&D programs
• Increase use of demand response; report on real time transmission system monitoring
projects, study benefits of economic dispatch
Evaluation –
Provide feedback on the effectiveness of RD&D activities and
new technologies

Provide feedback about new technologies

Participate in peer review workshops

Work to identify vulnerable components of
the electric grid
Electric Distribution
Transformation FY04
Annual Program and
Peer Review Meeting
Energy Storage
Systems 2004 Annual
Peer Review
2004 Transmission
Reliability Program
Peer Review
Superconductivity for
Electric Systems 2004
Annual Peer Review
Public-Private Partnerships







Utilities
 Investor-Owned
 Public Power
 Cooperatives
 Federal
Equipment Manufacturers
State Agencies
Trade Associations
Professional Societies
Universities
National Labs
DOE can’t do it alone…
Making connections with
partners is crucial for success
For the latest updates on the office merger and other news, check
the following websites: www.electricity.doe.gov and www.ea.doe.gov