The GridWise Alliance Transforming the Electric Grid for a Sustainable Energy Future. Becky Harrison, CEO June 3, 2013 GSGF Meeting 1 A Focused Mission The GridWise Alliance is a consortium of passionate stakeholders focused on modernizing our electric grid. The alliance collaborates to transform the nation s electric power grid to achieve a sustainable energy future. Thought Leadership LEAD THE CONVERSATION: Continue as the preeminent cross-industry collaborative to transform the electric grid and create value for all through policy development. Advocacy ADVOCATE FOR INVESTMENT AND INNOVATION: Advocate policies to promote investment in infrastructure, innovation, and modernization of the electric grid. Engagement ENGAGE KEY CONSTITUENCIES: Build the framework that supports the continued development of a sustainable energy future through active engagement with key stakeholders. 2 1
GridWise Alliance Members ABB Accenture Alstom Grid Arizona Public Service Company California ISO Center for the Commercialization of Electric Technologies CenterPoint Energy Inc. Cisco Systems Inc. Davies Consulting, Inc. DNV GL Duke Energy Ernst& Young Florida Power & Light GE Hewlett Packard IBM Ingersoll Rand ITC Holdings Itron Landis & Gyr Lockheed Martin Midwest ISO National Renewable Energy Laboratory (NREL) Navigant Consulting New West Technologies New York ISO Nexans Oncor Electric Delivery Pacific Gas and Electric Company (PG&E) Pepco Holdings, Inc. PJM Interconnection RockPort Capital Partners Sempra Energy: San Diego Gas & Electric Silver Springs Networks Tollgrade Communications, Inc. Van Denburgh Consulting Group Vermont Electric Power Company ZIV USA, Inc. 3 Tremendous Opportunity "Today, utilities are pressured to integrate renewables at a large scale, while distributed generation systems are stressing the traditional utility model. Consumers are demanding both greater information and more competitive supply options to lower long-term costs. The utility model will need to evolve to address these new demands and better engage consumers. Phillip Mezey Itron President and CEO 4 2
Tremendous Challenge Over the past 25 years, I ve seen a continued erosion of the utility companies monopoly. That model is not going to work in the 21st century. If I were coming into the industry again... My goal would be to take customers away from utilities as fast as I could, because I think they re vulnerable. Regulations will not be changed fast enough to protect them. The business model will not be changed fast enough. Jim Rodgers Former CEO Duke Energy 5 An Uncertain Vision David Crane s View: The problem for utilities is that although they have the only cost-effective solution (the grid) today to that intermittency (of renewables), tomorrow is not today. The grid is ripe for the plucking by disruptive innovation. There are batteries and other energy storage solutions, but our view is that the grid, as an electricity distribution system, is about to be disrupted by of all things the unheralded natural gas distribution system connected with a home appliance that will convert natural gas into electricity in your home. There are 34 million American homes served by both the electricity and natural gas distribution systems, and it makes no sense for the American homeowner to pay for two expensive energy delivery systems into their homes if one would do. 6 3
Building an Ecosystem Utilities Service Providers Other Stakeholders 7 Collaborating & Influencing Informing Grid Modernization Connecting Advocating 8 4
Leading the Industry 9 Improving Electric Grid Reliability and Resiliency Report published June 2013 Collaborative Effort January 2013 workshop 20 utilities representing 40% of customers in US 14 non-utility member companies Key findings and recommendations shared with stakeholders DOE DHS White House NARUC NASEO State policy makers Others Identified Action Steps 5 Key Areas for Action 1. Leverage grid modernization technologies to greater extent; 2. Improve emergency response planning processes; 3. Enhance ICT infrastructure; 4. Leverage systems, capabilities, and processes to improve communications and speed restoration of power; and, 10 5. Expand the use of distributed generation, such as microgrids and mobile generators. 5
2013 Grid Modernization Index 3 Evaluation Component Areas Policy: State policies and regulatory mechanisms that facilitate grid investment; Customer Engagement: Investments throughout the state in customer enabling technologies and capabilities; and, Grid Operations: Investments throughout the state in grid-enhancement technologies and capabilities. 11 2013 GMI Leading States 100 GMI Leading States 90 Total Overall Scores 80 70 60 50 40 12 6
Key Insights from 2013 GMI ARRA grants have made a difference Other energy policies have an impact RPS State level deregulation Generation Retail Regional Transmission Organizations/Independent System Operators Customer engagement still early stage Different priorities drive investments 13 The Future Of the Grid Evolving to Meet America s Needs Develop a comprehensive industry driven vision for the role of the distribution and transmission electrical grid and the role of the grid operators in 2030. Identify and address any regional differences Identify technical barriers Identify policy and regulatory barriers and actions to address Identify changing interactions between the T&D grids and grid 14 7
The Future Of the Grid Evolving to Meet America s Needs Four Regional Invitation-Only Workshops Western Central Southeast Northeast Participants Utilities Regulators Policy makers Suppliers/vendors Game Changers Executive Summit in Washington, DC 15 The Future Of the Grid Evolving to Meet America s Needs Two final reports 1 st report will identify R&D needs 2 nd report will identify barriers in the areas of policies, regulations, current financial models, and present workforce Next Steps: GWA Member Only Workshops Develop proposed solutions for key challenges identified Evolution of Grid Operations Evolution of Business Models Evolution of Regulatory Models Planning the Transition 16 8
Policy and Advocacy A focus on clean energy within the Administration, and a need for new leaders in the Beltway President Obama and his Administration are focused on a clean energy agenda Congress with few smart grid /grid modernization champions New Senate Energy Committee leadership this year New FERC leadership forthcoming A number of grid-related issues are on the radar of policymakers and the media Need to modernize the grid how to recover costs Need to rebuild and upgrade aging infrastructure (energy and otherwise) Resilience 17 Policy and Advocacy Actions at the State Level New York State Public Service Commission REV Proceeding Introducing the concept of a Distribution System Platform Provider (DSPP) Focused on integration of distributed energy resources (DERs) Establishment of a retail market for DERs Attention on resiliency States piloting or looking at policies around Microgrids New York State 18 Connecticut New Jersey Minnesota Massachusetts Energy Storage taking off California established energy storage procurement targets 9
Advocacy Strategies Educate and cultivate the next generation of grid modernization advocates Strengthen, grow and amplify the voices of pro-grid modernization advocates Inform the debate around grid modernization, clean energy, EVs, and so forth with new data, analyses, and more 19 Advocacy Approach Developing specific policy positions Submitting comments on state proceedings Working with Hill champions and growing Congressional support for grid modernization policies Serving as a key resource in this space Promoting messages in media and at key events Leveraging other stakeholder groups efforts 20 10
Questions??? Becky Harrison CEO bharrison@gridwise.org www.gridwise.org 1-202-530-9740 21 11