Smart Grid R&D by the U.S. Department of Energy Presented at the U.S.-Taiwan Clean Energy Forum: Cleaner Technologies, Greener World

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1 Smart Grid R&D by the U.S. Department of Energy Presented at the U.S.-Taiwan Clean Energy Forum: Cleaner Technologies, Greener World Dan T. Ton Program Manager, Smart Grid Research and Development U.S. Department of Energy Cary N. Bloyd, Ph.D. Senior International Research Advisor Pacific Northwest National Laboratory October 25, U.S. Department of Energy National 1000 Academy Independence of Engineering Ave., - SW BMED Washington, DC /21/2011 1

2 Presentation Outline U.S. DOE Office of Electricity (OE) and Smart Grid Development ARRA Smart Grid Development Activities Smart Grid R&D Program Activities International Activities Challenges Ahead 2

3 Two Gigatonnes of CO 2 Per Year! Direct Reductions: Energy savings from peak load management, continuous commissioning of service sector loads, accelerated deployment of energy efficiency programs, reduced line losses, and direct feedback on energy usage Enabled Reductions: Greater integration of renewables and facilitation of EV and PHEV deployment 3

4 Smart Grid: What is it? DOE has defined seven core Smart Grid characteristics The Smart Grid Initiative seeks to develop and implement advanced information, communication, and control technologies, along with supportive policies, to achieve all seven characteristics. 4

5 Smart Grid Applications: Operational Strategies that Utilize Smart Grid Assets to Create Values 5

6 Assets + Applications Value Creation 21 st 21 st Century Smart Grid Grid Self- Optimization Highly Differentiated Reliability Automated Efficiency End-to-End Automation Clean Resource Optimization visibility Demand Management Local Power Parks Online Energy Efficiency & Management Distribution Automation Electric Vehicle Management control Load Curtailment Emergency Power EE Programs Advanced Metering Distributed Renewables Capacity Power Quality & Reliability Energy Efficiency Operational Efficiency Clean Technology Foundation / Infrastructure 6

7 Recovery Act Grid Modernization Programs created by statute Energy Infrastructure Security Act 2007: Smart Grid Investment Grants (Sec. 1306) Smart Grid Regional Demonstrations (Sec.1304) Recovery Act Directed Programs: Workforce Training - $100M Top 10 States by Total Awarded State Amt ($M) NC 434 CA 419 TX 293 NY 276 FL 270 PA 265 MD 233 DC 213 AL 166 OH 146 Interconnection-wide Transmission Planning and Resource Analysis - $80M Interoperability Standards - $12M Additional OE initiatives State & Local Energy Assurance State Regulatory Assistance $4.5 billion obligated by end of FY10 $1.6 billion paid out to date One-time Appropriation, $4.5B in ARRA funds $620M for demonstration projects $3.425B for deployment projects Smart Grid Interoperability Standards Workforce Training Investment Grants Resource Assessment & Transmission Planning Other Smart Grid Demos 7

8 Smart Grid Investment Grants (SGIG) Number of Projects Small Projects, 74 (74.7%) Large Projects, 25 (25.3%) SGIG Recipient Types Municipal Utilities, 29% Electric Co-ops, 17% ISO/TO, 9.0% IOU, 39% Tech/ Manufacturing Co., 4% Irrigation District, 1.0% Selected Projects Total Funding $7,863,897,259 Federal Share $3,425,938,323 Total Number of Projects 99 Deployment of current technological components for immediate commercial use Support of manufacturing, purchasing, and installation of smart grid technologies Large projects: $20M-$200M Small projects: $394K-$20M (Federal share) 3-year projects 8

9 Recovery Act: Smart Grid Investment Grants (99 projects: $3.4B Federal; $4.4B non-federal) Smart Grid Systems and Equipment Networked Phasor Measurement Units Numbers of Units (self-reported estimates) Improvements 877 Near-nationwide coverage 6X the 166 existing networked PMUs Smart Transformers 205,983 Enables preventative maintenance Automated Substations Load Control Devices 671 5% of 12,466 transmission and distribution substations in U.S. 210,814 Enables peak demand reductions Smart Thermostats 170,218 Enables peak demand reductions Smart Meters 18,179,912 13% of the 142 million customers in the U.S. In-Home Display Units PHEVs / Charging Stations 1,207,912 Enables customer empowerment 12 / 100 Accelerates market entry Impacts Enhanced situational awareness and electric system reliability and resiliency 1484 MWs of peak demand reduction per year (self-reported estimates) Transformational changes in consumer behavior and energy consumption Begins the path toward energy independence 9

10 Smart Grid Demonstration Program (SGDP) Number of Projects Small Projects, 20 (63%) Large Projects, 12 (37%) SGDP Recipient Types IOU, 41% Municipal Utilities, 13% Non-Profit, 9% Technology / Manufacturing Company, 34.0% Electric Coops, 3.0% Selected Projects Total Funding $1,647,637,256 Total Federal Funding $620,027,274 Total Number of Projects 32 Demonstrate emerging technologies (including energy storage) and alternative architectures Validate business models Address regulatory and scalability issues Large projects: $20M-$89M Small projects: $720K-$20M (Federal share) 4-year projects (average) 10

11 Recovery Act AMI Projects & Customer Engagement 76 projects have AMI and some type of customer program, most being pilot activities engaging a limited segment initially Number of Projects "Time-Based Rate" Pricing Programs Customer Devices Note: Project components are NOT mutually exclusive 36 Direct Load Control 11

12 Recovery Act Distribution Automation Distribution Automation Function Number of Projects

13 Electric Vehicles & Charging Stations 11 SGIG & 11 SGDP projects involve electric vehicles & charging stations over 500 EVs/PHEVs over 7,500 charging stations In total, Recovery Act funds are supporting demonstrations of nearly 13,000 EVs/PHEVs of over 22,000 charging stations in over 20 cities PHEVs BEVs / EREVs EVSE & Chargers 13

14 Recovery Act - Energy Storage $586 million in private investment from $185 million in federal funds Better than 3:1 Energy Storage Regional Demonstration Projects Include Large Battery Systems (3 projects, 53MW) Compressed Air (2 projects, 450MW) Frequency Regulation (20MW) Distributed Projects (5 projects, 9MW) Technology Development (5 projects) 20 Li-Ion community energy storage units on Detroit Edison grid 14

15 Recovery Act PMU Deployment The SGIG program is supporting the deployment of 804 phasor measurement units (PMUs) across the US, providing nearly complete coverage of the transmission system. ATC 48 PMUs NYISO 39 PMUs ISO-NE 30 PMUs WECC 250 PMUs MISO 150 PMUs PJM 81 PMUs SGIG Total 804 PMUs Midwest Energy 21 PMUs Duke Energy Carolinas 102 PMUs Source: Map from North American Synchrophasor Initiative, 2009 Entergy 38 PMUs FPL 45 PMUs 15

16 Impact on Smart Grid Standards Development Through close work with DOE, the NIST Smart Grid Interoperability Standards Program has: Released NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0 Released Guidelines for Smart Grid Cyber Security Launched Smart Grid Interoperability Panel (SGIP) to provide a forum for collaboration with the private sector now 1,750 members from 634 organizations 16

17 Recovery Act Goals Deployment of Smart Grid Technologies 15.5 million smart meters 800 Phasor Measurement Units 6,500 Distributed Circuits Economic Benefits Reductions in monthly bills for customers with smart meters/enabling technologies Reductions in peak demand translate to less generation capacity required Reductions in operating costs for distribution circuits with automated equipment Reliability Benefits Reduction in length of power outages Reduction in frequency and geographic scope of power outages Environmental Benefits Reductions in energy wasted (line losses) in distribution circuits Reduced emissions of CO 2, NO X, and SO X associated with electricity consumption of customers with smart meters and enabling technologies 17

18 Smart Grid R&D Program FY 2011 Dollars in Thousands FY 2012 Planning 23,000 20,000 Promotes the development of an efficient, fully integrated smart grid through the adaptation and integration of digital information and communication technologies into the Nation s electricity delivery system. * MYPP available at: R&D Areas Guided by MYPP* on: 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 18

19 International Smart Grid Activities are Complementary Asia Pacific Economic Cooperation (APEC) APEC Smart Grid Initiative (ASGI) APEC Energy Smart Communities Initiative (ESCI) Interoperability Survey and Road Map Smart Grid Test Bed Networks Clean Energy Ministerial (CEM) International Smart Grid Action Network (ISGAN) Global Smart Grid Inventory Smart Grid Case Studies Benefit/Cost Methodologies Synthesis of Insights for High-level Decision Makers U.S.-EU Energy Council Energy Policy Working Group Working Group on Technology, Research, Development, and Demonstration 19

20 GridLAB-D: Simulating the Smart Grid Market models GridLAB-D Power model system unifies models keys elements Load of a models Smart Grid Next generation tool Integrates models Smart Grid analysis Projects Technologies Cost/benefits Business cases Multi-scale models Seconds to decades Links to existing tools Open source Contributions from Government Industry Academic Vendors Drives need for high performance computers 20 Vendors can add/extract modules for their own uses

21 GridLAB-D Fundamental Characteristics 21 Simultaneous solution of loads and load flow quasi-steady state initially, ~1-sec to 1-hr time steps prototypical example: conservation voltage reduction Time-series simulation of distribution systems operations and expansion off-line, not operations technology planning & evaluation, not distribution engineering but open-source modules can be used in commercial products Detailed, simultaneous simulation of power flow, end use, and market functions and their interactions Time scales from sub-cycle to decades (time steps variable, userspecified) Architecture consists of a system core which loads and synchronizes plug-in modules modules are independently compiled core manages time steps, variable sharing, convergence

22 GridLAB-D: Simulating the Smart Grid Technologies and Benefits What is GridLAB-D? time-series, life-cycle simulation for smart grid operations & capacity expansion demand response, distributed generation/storage, automatic sectionalizing & restoration simultaneous solution of net loads & power flow prototypical feeders with U.S. weighting factors open source, modular environment for collaboration, module contributions can be used to develop commercial products commercial modules can be linked, but kept private Why simulate the smart grid? Evaluate the potential of new technologies & operational strategies to save capital costs, improve reliability, & provide benefits like ancillary services Craft and refine the characteristics of technologies and operational strategies to provide maximum benefit at the lowest cost Understand and quantify the synergies among smart grid technologies Avoid unintended consequences from utilizing distributed control strategies Predict, evaluate, & extrapolate deployment project results

23 Smart Grid Maturity Model (SGMM) A management tool to help utilities benchmark smart grid development and share best practices; SGMM user community as of April 2010 Exelon/PECO Manitoba Hydro BC Hydro Bonneville Pwr. Portland Gen. Salt River Proj. Sempra Austin Energy CoServ CenterPoint Entergy Glendale W & P Detroit Edison Burbank Water & Power Integrys PG&E Toronto Hydro Tucson Electric Power Xcel Energy EPCOR Hydro Ottawa Exelon/ComEd VELCO Allegheny Power Dominion Power First Energy AEP PHI Exelon Duke Energy SCANA Corp. East Miss EPA Ameren Illinois Ameren Missouri NB Power PGN Carolina PGN Florida Tokyo Electric Shanghai Municipal Electric Power Co. Alliander EDF (UK) DONG Energy ERDF (France) Union Fenosa NDPL (India) Zhejiang Energy CLP (Honk Kong) Energy Australia Country Energy CPFL (Brazil) EDP (Brazil) AusNet CELPE (Brazil) Enexis (Netherlands) Integral Energy 23

24 SGMM at a glance 8 Domains: Logical groupings of smart grid related capabilities and characteristics 6 Maturity Levels: Defined sets of characteristics and outcomes 175 Characteristics: Features you would expect to see at each stage of the smart grid journey 24

25 SGMM targets NOTE: There is no correct target profile implied in the model; the optimal profile will vary by utility. Utilities sets strategic aspirations by domain, for example: Strategy, Management & Regulatory Organization & Structure Grid Operations Work & Asset Management Technology Customer Value Chain Integration Societal & Environmental This is where we aspire to be in X years This is where we are today SGMM Stakeholder Panel Meeting 2010 Carnegie Mellon University 25

26 Information Resources Smart Grid Information Clearinghouse Smart grid project summaries (with focus on non-arra projects), use cases, and business cases for the U.S. and internationally >200 & >50 smart grid projects in the U.S. and oversees; >1,000 smart grid-related documents and multimedia (use cases, c/b analyses, business cases, legislation & regulation, standards, and technologies) Smartgrid.gov ARRA smart grid project summaries and other Federal program activities Reporting of ARRA SGIG & SGDP projects (progress, metrics and benefits, consumer behavior studies) and provision of analysis results to the public 26

27 Smart Grid Challenge for the Year Ahead Educate consumers about the benefits of a smart grid and understand consumer behavior Plan under way to develop a broad-based consumer communications program to increase awareness, communicate SG costs and benefits, and disseminate tools for energy savings 12 smart grid pilots under consumer behavior study plan meeting academic rigor in experimental design, statistical significance, consistency in analysis methodology, validity of extrapolation Innovate to lower costs Through investments in developing new and advanced technologies (ARPA-E, Smart Grid R&D) Integrate resiliency and security Enhanced system flexibility, T&D automation, and cybersecurity (establishment of the National Electric Sector Cybersecurity Organization) Stimulate and implement partnerships Work with international partners to share best practices and learn from others 27

28 Contact Information Dan T. Ton Program Manager, Smart Grid R&D Office of Electricity Delivery and Energy Reliability U.S. Department of Energy +1 (202) Cary N. Bloyd Pacific Northwest National Laboratory +1 (301) For more information: U.S. DOE-OE: Smart Grid: smartgrid.gov 28

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