GETTING THE MOST OUT OF GRID MODERNIZATION SONIA AGGARWAL CO U N C I L OF S TAT E G OVERNMENTS D E C E M B E R 15, 2 0 1 7 1
WWW.AMERICASPOWERPLAN.COM 2
WHY CARE ABOUT GRID MODERNIZATION? Utilities hear Labor hears National security hears Consumer advocates hear Environmentalists hear Investment opportunity Jobs A way to shorten recovery time after a disaster Better electricity service for customers (but worry about costs) Cleaner air 3
WHAT IS GRID MOD, ANYWAY? New technologies & capabilities, NOT replacing old infrastructure Grid-facing technologies Customer-facing technologies 4
WHAT IS GRID MOD, ANYWAY? Minnesota public utilities commission, in a 2016 staff report: planning efforts will be an integral part of... grid modernization. 5
GRID MODERNIZATION HEADLINES 6
EXAMPLE: SMART METERS COSTS Are they worth $221/meter? 7
EXAMPLE: SMART METER VALUES Grid Benefits Reduced billing costs Greater billing accuracy Voltage control (efficiency and better service) Remote outage sensing & improved recovery Customer Benefits Lower bills (from more efficient pricing) Better service (enabled by customer data) Remote control Smart EV charging Access to new markets for distributed resources 8 8
THE KEY QUESTION There are clearly many potential benefits from grid modernization, but these programs aren t cheap. HOW CAN WE GET THE MOST OUT OF GRID MODERNIZATION? See: http://energyinnovation.org/wp-content/uploads/2017/01/gridmodernizatinmetricsoutcomes_ Jan2017.pdf 9
LEGISLATORS CAN HELP Make sure grid mod goals are clearly defined and agreed upon before plans move forward. How can we get the most out of grid modernization if we don t know what we want out of it? Go back to the why : Resilience / a way to shorten recovery time after a disaster Better electricity service for customers (but pay attention to costs) Clean energy, clean air Jobs 10
TURNING GOALS INTO ACTION 1. Make sure the goals of grid mod are clearly defined. 2. Ask the regulator to work with utility to assess the system capabilities and map the most valuable locations for new grid mod technologies 3. Ask the regulator to create metrics for performance against those overall goals, and to use those metrics to evaluate utility grid mod proposals. 4. Consider enabling incentives for utilities that accomplish these goals, and penalties for failure. 11
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WHAT IS GRID MOD, ANYWAY? The traditional power system based on central station generation is evolving into "the integrated grid, a coordinated, bi-directional grid, according to Ameren Missouri. The Massachusetts grid modernization investigation identified four objectives: 1. Reducing outage impacts, 2. optimizing demand and cutting costs, 3. integrating distributed energy resources, and 4. improving workforce and asset management. 13
THE POWER SECTOR HAS EVOLVED Old Goals: Meet growing demand Build new infrastructure Build to deliver universal service Affordability, Reliability, Safety Options: Centralized power plants Transmission lines Distribution system 14
THE POWER SECTOR HAS EVOLVED Old Goals: Meet growing demand Build new infrastructure Build to deliver universal service Affordability, Reliability, Safety Old Options: Centralized power plants Transmission lines Distribution system New Goals: Build Maintain Reliability Resilience Clean power Customer satisfaction Affordability, Safety New Options: Replacing old stuff, plus: Innovative distributed energy resources (EE, DR, PV, EVs, etc.) Advanced IT & rate designs 15