Smart Grid and Energy Efficiency in the U.S.

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1 Smart Grid and Energy Efficiency in the U.S. Presentation for the Israeli Smart Energy Association Tom Coleman U.S. Embassy Tel Aviv

2 The First U.S. Power Grid Thomas Edison Pearl Street (lower Manhattan) September 1882 Lighted 400 lamps 85 customers Direct Current (DC)

3 U.S. Grid Today Started construction in the 1890s and improved as technology advanced More than 9,200 electric generating units More than 1 million megawatts of generating capacity More than 300,000 miles of transmission lines Patchwork nature stretched to capacity Not much information available from distribution systems Not able to accommodate large penetration of renewables Vulnerable to cyber attacks Bottom Line: U.S. needs a new automated grid that can handle digital and computerized equipment and technology

4 U.S. Grid Today

5 August 2003

6 What Makes a Grid Smart? Digital technology allows for two-way communication between the utility and its customers. Consists of controls, computers, automation, and new technologies and equipment working together to respond digitally to quickly changing electricity demand.

7 What Does a Smart Grid Do? Makes energy more reliable, available, and efficient. Benefits include: More efficient electricity transmission Quicker restoration of electricity after power disruptions Reduced operations and management costs for utilities, and ultimately lower power costs for consumers Reduced peak demand, which will also help lower electricity rates Increased integration of large-scale renewable energy systems Better integration of renewable energy systems and customerowner power generation systems Improved security

8 DOE s Core Smart Grid Characteristics

9 The smart grid is about giving consumers information and tools needed to make choices about energy use.

10 Building and Testing the Smart Grid Smart Grid will require significant implementation time (decade or more) and will constantly evolve as technology improves. Once mature, the smart grid will bring the same kind of transformation that the Internet has.

11 Smart Grid Technology Areas

12 Smart Meters and Home Energy Management Systems

13 Smart Appliances

14 Home Power Generation The Smart Grid will help connect mini-power generating systems to the grid, to provide data about their operation to utilities and consumers, and to inform about how much surplus energy is feeding back into the grid.

15 Renewable Energy President Obama has called for the U.S. to produce 25% of electricity from renewable resources by Currently, renewable sources other than hydropower provide about 5% of the electricity supply for the U.S. grid.

16 Consumer Engagement The Smart Grid offers opportunities for consumers to save energy and for utilities to operate the grid in a more efficient, effective, and reliable way. But this will also involve sacrifice on the part of consumers, such as holding off on running your dishwasher until later in the evening. What s in it for the consumer? Money!

17 Time-of-Use Pricing Time-of-use rates encourage consumers to use energy when the demand is low by giving lower electricity prices during those times. Home energy management systems will allow consumers to see when prices are highest, which appliances use the most electricity, and be alerted when prices go up.

18 Net Metering For consumers that generate power at home - using a rooftop solar power system, for example - net metering involves the use of a meter that can record power flows back into the grid as a credit. The Smart Grid will enable enhancements to net metering programs.

19 Net Metering in 46 States and D.C.

20 Financial Incentives The Smart Grid will open up new ways for utilities to offer financial incentives for consumers to participate in programs that will help shift electrical demand to offpeak hours. Utility incentives could also encourage consumers to install a home generation system, such as a small wind turbine or solar power system.

21 Smart Grid Monitoring and Controlling Transmission and Distribution Smart Grid technologies offer a new solution to monitoring and controlling the grid's transmission system. Will allow grid operators to see big picture and make it easier for grid systems to interact and share data. With sensors that indicate when parts of the distribution system have lost power, a Smart Grid can also detect outages in electricity distribution and route power through a backup system, maintaining reliability.

22 Smart Grid Support for Plug-in Electric Vehicles The Smart Grid will have infrastructure to enable efficient use of PEVs. PEVs must have charging stations to be widely deployed in the marketplace. Through the Smart Grid, PEVs can identify themselves to the charging station, and the electricity used can be automatically billed to the owner's account, allowing PEV owners to charge without need cash or credit card.

23 DOE Smart Grid R&D Focus Areas Renewable & distributed systems integration Microgrids Integration of Plug-in Electric Vehicles (PEVs) Modeling & Analysis Advanced Communications & Controls Foundational Standards and Best Practices Demand Response and Consumer Acceptance

24 DOE Programs Smart Grid Investment Grant Program (SGIG) Smart Grid Demonstration Program (SGDP) Top priorities of SGIG and SGDP programs: interoperability and cybersecurity.

25 SGIG Public-private partnership launched in early 2010 Focuses on deploying existing smart grid technologies for immediate commercial use 99 three-year projects with total investment over $11 billion

26 SGDP Focus on demonstrating emerging technologies (including energy storage) and smart grid alternative architectures Also addresses regulatory and scalability issues 32 four-year projects with total grants of over $2.5 billion

27 SGIG and SGDP Program Breakdown 131 total projects in the SGIG and SGDP programs, with some projects installing multiple technologies: advanced metering infrastructure 76 distribution automation 65 phasor measurement unit 11 storage 27 equipment manufacturing 2

28 Top 10 States by Total Awarded Grants (SGIG and SGDP) State Amt ($M) North Carolina 434 California 419 Texas 293 New York 276 Florida 270 Pennsylvania 265 Maryland 233 District of Columbia 213 Alabama 166 Ohio 146

29 Recovery Act - Transmission $308M ($153M federal funds) dedicated to 10 interconnection transmission projects: American Transmission Company (PMU) (Wisconsin) American Transmission Company (SCADA) (Wisconsin Duke Energy Carolinas (North Carolina) Entergy Services (Louisiana) Midwest Energy (Kansas) Midcontinent Independent System Operator 9 transmission utility partners (HQ Indiana) Independent System Operator New England 7 transmission utility partners (HQ Massachusetts) New York Independent System Operator 8 transmission utility partners (HQ New York) PJM Interconnection 12 transmission utility partners (HQ Pennsylvania) Western Electricity Coordinating Council 18 transmission utility partners (HQ Utah)

30 Recovery Act - Energy Storage $586M ($185M federal funds) in Demonstration Projects: Large Battery Systems (3 projects, 53MW) Compressed Air (2 projects, 450MW) Frequency Regulation (20MW) Distributed Projects (5 projects, 9MW) Technology Development (5 projects)

31 Barriers to Smart Grid Development Businesses, state regulators, and consumer advocates unconvinced of value of smart grid due to lack of performance data on costs and benefits. Insufficient or inadequate technologies, components, and systems to leverage IT potential of smart grid. No established standards for interoperability of systems and components. Insufficient cybersecurity for a smart grid architecture. Lack of a skilled workforce to build, install, operate, and maintain systems and equipment. Insufficient consumer understanding of electrical infrastructure and opportunities enabled by smart grid.

32 Other USG and International Efforts USG Power Africa Program Binational Industrial Research and Development Foundation (BIRD) Energy program International Smart Grid Action Network (ISGAN)

33 Helpful Websites - American Recovery and Reinvestment Act smart grid project summaries and other USG program activities. Has Resource Center tab that provides documents related to modernization of the U.S. electric power infrastructure. s_learned for December 2014 study on grid impacts and lessons learned, including reports on technology applications and results of studies that have been conducted since database of state incentives for renewables and efficiency. - smart grid project summaries (with focus on non-american Recovery and Reinvestment Act projects) in the U.S. and internationally.

34 Energy Efficiency Low-cost, high-yield option for aiding a country s economic and political security. International Energy Agency (IEA) estimates global energy efficiency market to be between $ billion annually. In 2012, global energy efficiency investment was greater than investment in renewable energy and fossil fuel electricity generation. By 2040, realizing the full potential of energy efficiency could shave 15 percent off global energy demand and account for half of energy-related emissions reductions. End-use sectors (building, transportation, and industrial) are the primary driver of EE-related reductions in energy demand and carbon emissions.

35 Energy Efficiency in the U.S. The U.S. is promoting and implementing energy efficiency through programs like: EnergyStar (appliance labeling) - international standard for energy efficient consumer products created in 1992 by the U.S. EPA and DOE Federal Energy Management Program (FEMP) - promotes energy efficiency and the use of renewable energy resources at federal sites The U.S. also hosts the Clean Energy Solutions Center through the National Renewable Energy Labs.

36 USG Energy Efficiency Efforts U.S. Department of State and the Government of Singapore Energy Efficient Buildings Workshop DOE s Near-Zero Zone Project in Turkey Energy Efficiency Improvement Act of 2015, aimed at providing incentives to cut energy use in commercial buildings, industrial plants, and homes

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