Electric Power Industry Vision

Transcription

1 Electric Power Industry Vision Wanda Reder Vice President S&C Electric Company IEEE Power & Energy Society - President IEEE Division VII Director São Paulo Brazil San Francisco IEEE PES Chapter Fall Banquet October 7, 2014

2 S&C Electric Company Employee-owned Headquartered in Chicago, IL Additional operations in: Canada Mexico Brazil China Australia United Kingdom 2500 employees

3 Overview Grid Trends and Drivers Recent investments Making the case for reliability National energy goals New grid enables our future Magic of micro-grids, storage and its justification

4 Grid Trends and Drivers Growing Population, More Electronics Infrastructure is more prone to failure Increasing Environmental Requirements Escalating Security Concerns Resiliency For: Sustainability Carbon Management Electric Transportation Distributed Sources Efficiency Reliability Heightened Investor Demands

5 Are We Prepared for the Change? Customer demand and expectations increasing, yet Load factor is decreasing Vulnerabilities are increasing Build for 1% of the time Assets and employees are aging Grid development and modernization is inevitable for increased resiliency Climate Change: Weather related power outages have increased ten fold per year in the last five years in the US. Physical and Cyber-security: Increased attacks Visibility, Flexibility, Transparency: Increasing complication from infrastructure interdependency, intermittent sources, changes in supply mix, and distributed activity. Old and New: Delivery assets were largely constructed decades ago. Updates needed to transport, accommodate load growth and enable new technologies Also, many utility workers are likely to exit in a decade and need to be replaced. Source: US DOE (2013) Energy Sector Vulnerabilities to Climate Change

6 US Recovery Act: Grid Modernization US Spent $7.9B in ARRA Smart Grid Projects Includes $4.5B Federal stimulus and industry matching funds Five year grants starting in 2010 Results are being posted Several reports are posted One-time Appropriation $4.5B of Recovery Act Funds Smart Grid Interoperability Standards Workforce Training Resource Assessment & Transmission Planning Other Smart Grid Demos Developing a platform for significant grid modernization investment Investment Grants Source: US Department of Energy Office of Electricity and Energy Reliability: Results and Findings from the ARRA Smart Grid Projects, May 2013

7 EPB of Chattanooga: Value of Reliability EPB of Chattanooga estimated that outages cost of $100 million Saved with 1200 IntelliRupters with IntelliTeam SG 2011 Labor Day Storm (20% technology configured): 63,000 homes interrupted; however, 16,000 (25%) experienced no outage and 9,000 (7%) experienced a 2-second interruption Utility avoided 1,917,000 customer minutes of interruption July 2012 wind storm: EPB estimates they avoided 500 truck rolls and reduce total restoration time by 1.5 days with automated feeder switching Represents $1.4 million in operational savings Source: US DOE Office of Electricity and Energy Reliability: Results and Findings from the ARRA Smart Grid Projects, May 2013 EPB Chattanooga saved $100MM per year, avoided 58 million customer minutes in July 2013 storm 7

8 Making the Case for a Self-Healing Grid Business case video at:

9 Cost-Justifying Self-Healing Societal cost is often not factored into the reliability business case Connects infrastructure investment to the overall economic value Use the Interruption Cost Estimate Calculator Estimates interruption costs Calculates the value of reliability improvements Developed by US DOE and Lawrence Berkeley National Laboratory

10 Utility Communications Internet Efficient Building Systems Renewables Consumer Portal & Building EMS PV Dynamic Systems Control Distribution Operations Advanced Metering Plug-In Hybrids Control Interface Data Management Distributed Generation & Storage Smart End-Use Devices

11 National Energy Goals 11 Economic Competitiveness: Energy infrastructure should enable the nation to, under a level playing field and fair and transparent market conditions, produce goods and services which meet the test of international markets while simultaneously maintaining and expanding jobs and the real incomes of the American people over the longer term. Energy infrastructures should enable new architectures to stimulate energy efficiency, new economic transaction, and new consumer services. systems basis) of Environmental Responsibility: Energy infrastructure should take into consideration a full accounting (on a life-cycle environmental costs and benefits) in order to minimize their environmental footprint. Energy Security: Energy Infrastructure should be minimally vulnerable to the majority of disruptions in supply and mitigate impacts, including economic impacts, of disruptions by recovering quickly or with use of reserve stocks. Energy security should support overall national security. Source: US DOE Quadrennial Energy Review Public Deck, May 2014

12 12 Grid Enables the Future Make Energy: Reduce fossil fuel usage Increase use of renewables Facilitate change of mix Accommodate load growth Move Energy: More flexible, adaptable, intelligent and resilient Increase visibility, awareness, analytics, plug-and-play Use Energy: Increase efficiency Empower customers Technologies: Energy storage Advanced power electronics Self-healing, intelligence Adaptive protection Layered control architecture Requires collaboration, research, standards Source: IEEE GridVision 2050

13 Industry in Transition Past: Regulated business models Large generation stations Centralized dispatch Minimal constraints Outages tolerated Grid over designed Radial distribution Homogeneous technology Slow distribution operations Uni-directional power flow Future: Emerging customer choice Distributed & green resources Distributed intelligence Pressures for green power Less tolerance of outages Infrastructure exhausted Looped or meshed distribution Mixing old with new Near real-time micro-grids Multi-directional power flow

14 Facilitates System Optimization Performance expectations are increasing, and yet There are affordable limits View of System is changing to include the customer Need distributed intelligence Satisfies multiple objectives Service differentiation Reliability / Resiliency Demand response Renewable integration Perfect Grid Reliability Good Reliability vs. Customer Expectation Average Self Healing Future Grid Current Grid Micro-Grid Majority are satisfied most of the time Perfect Customer Expectation

15 Micro-grids Micro-grid: Interconnected loads and distributed energy resources with defined electrical boundaries A single controllable entity that can connect and disconnect from the grid Distribution Substation Full Substation Microgrid Full Feeder Microgrid Partial Feeder Micro-grid Gen Other Feeders Feeder Bulk supply connection (sub-transmission) Gen Gen Single Customer Microgrid What s new? Renewables Storage Gen Source: EPRI 15

16 Energy Storage: Various Sizes and Uses Use examples: Islanding Constant Output Peak Shaving Arbitrage Renewable Smoothing VAr Dispatch Reliability Asset deferral Frequency regulation Electric supply reserve Reduce cold-load pick-up Community Energy Storage 25 kw; 50 kwh Lithium-Ion Mid-Sized Energy Storage 250 kw; 250 kwh Lithium-Ion Large Energy Storage 1 MW, 6 MWh, Sodium Sulfur

17 Micro-grid: Santa Rita Jail, California 2MW, 4 MWh, lithium-ion batteries with S&C Storage Management System Time shifts solar and wind to cure mismatch between generation and consumption No critical outages since its dedication 3/22/2012

18 18 Benefits of Storage and Renewables Storage with Renewables can: Smooth intermittency Minimize reverse power flow, keeps voltage within limits Store output and release coincidental with local load Control ramp rate Power(kW) :55 PM 2:09 PM 2:24 PM 2:38 PM 2:52 PM 3:07 PM 3:21 PM 3:36 PM Net Load Source: Thomas Bialek SDG&E June 2014

19 Storage is Key for Operations, But Operational Challenges: Increased variability and uncertainty Bidirectional power flows More frequent outages Increased complexity Interoperability Enabling customer participation It is expensive. How is it justified? 19

20 Storage Economic Justification Capture all benefits with societal impacts Determine benefits tradeoffs A peak shaving unit may not be available for an outage Calculate NPV of the benefits versus costs Example: 250kW/250 kwh storage for a 250 kw commercial customer with annual usage of 1,095 MWh. Ten year life-cycle Benefits: Reliability $1300 per year Peak Shaving $24,000 per year Renewable Integration $51,000 per year Frequency regulation $61,000 per year Costs Installation $500,000 up-front Maintenance $10,000 per year Battery replacement $175,000 in year 10 Net Present Value with 6% discount rate: ~$350,000

21 More to Be Done! Asset jurisdiction a new class? Models needed to size capacity & duration Large footprint requirements Lack of standards Noise considerations from inverters Safety, environmental and permitting issues SCADA and communications for isolation, availability, reliability Network management integration Architecture for integrated solutions

22 22 IEEE Smart Grid IEEE is leveraging its foundation to develop standards, share best practices, publish developments and provide educational offerings to advance technology and facilitate successful Smart Grid deployments worldwide. IEEE Smart Grid portal Monthly e-newsletter ces/smart-grid-news Webinar Series Peer-reviewed publications Conferences Standards Linked-In

23 Conclusion for Grid Vision Recognize the trends and drivers Enable the future by looking forward... Make it Move it Use it Distributed intelligence and storage are key More to be done. Need collaboration. Research and standards Sharing best practice Wanda Reder VP Power Systems Solutions S&C Electric Company (773) /7/2014