Infrastructure Needs for the Smart Grid Leon M. Tolbert The University of Tennessee January 2011
Overview Defining a Smart Grid Value of a Smart Grid Challenges and Opportunities U.S. Smart Grid Efforts NIST Standards Cyber Challenges Summary 2
Smart Grid Definition European Technology Platform SmartGrids: Electricity networks that can intelligently integrate the behavior and actions of all users connected to it - generators, consumers, and those that do both in order to efficiently deliver sustainable, economic and secure electricity supplies. www.smartgrids.eu 3
Defining a Smart Grid Smart Grid is defined as a broad range of solutions that optimize the energy value chain. It brings the power of networked, interactive technologies into an electricity system. Networking Interaction Penetration of information Robustness to withstand component failures Real time detection of intrusion attempts. 4
Defining Smart Grid Functions Electricity delivery network modernized using the latest digital/information technologies to provide the following functions: 1. Enable active participation by consumers 2. Accommodate all generation and storage options 3. Enable new products, services, and markets 4. Optimize assets and operate efficiently 5. Provide power quality required by a digital economy 6. Anticipate and respond to system disturbances and faults in a self-healing manner 7. Operate resiliently against physical and cyber attack 5
Smart Grid Attributes 6
Smart Grid Benefits 1. Better facilitate the connection and operation of generators of all sizes and technologies (renewables) 2. Optimize grid operation (reduce losses) and grid infrastructure use. 3. Provide consumers with greater information and options for choice of supply, and allow them to play a part in system optimization. 4. Significantly reduce the environmental impact of the whole electricity supply system. 5. Improve the existing high levels of system reliability, quality and security of supply. Increase availability from three nines (99.97%) to six nines (99.9999%). Annual downtime will be reduced from 2.5 hours to 30 seconds. 7
Smart Metering Smart Grids The smart grid is not smart metering the smart grid is a much broader set of technologies and solutions. While many utilities have put their focus on smart metering, smart metering does not provide a smart grid. We can have smarter electricity grids (i.e. distribution and transmission networks) without smart metering. There are several benefits to smart metering which can reinforce other policy actions. For example, when used with other parameters (such as time of day or real-time pricing and information) smart meters can encourage consumers to reduce their demand (load) when prices are high or when system reliability is at risk. Example of a smart meter in use in Europe that has the ability to reduce load, disconnect-reconnect remotely, and interface to gas & water meters. 8
Value of a Smart Grid The Economic Case Smart Grid technologies would reduce power disturbance costs to the U.S. economy by $49 billion per year and reduce the need for massive infrastructure investments by $46 billion. Widespread deployment of technologies that allows consumers to easily control their power consumption could add $5-7 billion per year back into the U.S. economy. Efficient technologies can reduce fuel consumption. Smart Grid will create new markets to develop energyefficient and intelligent appliances. Smart Grid: Enabler of the New Energy Economy, A Report by The Electricity Advisory Committee, December 2008. [Online]. Available at: http://www.oe.energy.gov/final-smart-grid-report.pdf 9
Value of a Smart Grid The Environmental Case Implementation of energy efficiency programs and use of renewable sources could have the opportunity to reduce by half the 2030 projected carbon emissions. Carbon emission can be reduced by: Leveraging demand response and load management (peak generation). Consumer education (usage information). Mitigation of renewable generation variability of output. 10
Value of a Smart Grid Benefits to Utilities Improved Reliability: The U.S. electric power system is designed and operated to meet a 3 nines reliability standard (99.97%). This translates to interruptions that cost American consumers an estimated $150 billion a year. It may become even worse as infrastructure continues to age and as system is operated closer to capacity limits. Smart Grid will allow utilities to confirm that meters are working properly (two-way communications). Grid management and automated response, the frequency of duration of power outages can be reduced. Remote monitoring can allow for a self-healing grid. 11
Value of a Smart Grid Benefits to Utilities By reducing peak demand, a Smart Grid can reduce the need for additional transmission line and power plants. Reduced Operations and Maintenance Costs: Using enhanced information about the grid assets from Smart Grid monitoring technologies, grid operator can reduce the risk of overloading problematic equipments (Ex.: transformers). Increased Efficiency of Power Delivery: Offers utilities increased monitoring of rapid power changes and helps them adapt control schemes and deploy capacitors and power electronics-based devices for reactive power compensation and power flow control. 12
Value of a Smart Grid Benefits to Utilities Integration of Renewable Energy and DRs: Integrated monitoring and control, as well as integration with substation automation, to control energy flow. Improved System Security: It will offer better integration of devices, increased use of sensors and added layers of control. However, it will also require comprehensive, built-in security during implementation. 13
Value of a Smart Grid Benefits to Consumers Consumption Management: Knowledge and ability to manage their own consumption habits through in-home or building automation. Two-way communication facilities to allow appliances and security systems to initiate conversation to notify of problems or safety alerts. Cost Savings from Peak Load Reduction: Defer peak energy usage to a later hour or otherwise reduce peak consumption to save the cost of generating expensive peak energy (combustion turbines at $1 per kwh). Smart Grid will be a key enabler in achieving demand response and load management (to avoid building expensive peak generation). 14
Value of a Smart Grid Benefits to Consumers Convenience of Advanced Meters: Two-way communication between the consumer s meter and the utility detect faults at home quick repair. Reduced Industrial Consumer Costs: Electric motors account for 65% of industrial electricity usage. Enabling variable speed drives to automatically adjust to pricing signals from the utility - slow down or turn off when price is too high. Enhanced Business Consumer Service: With two-way communications of a Smart Grid infrastructure in place, a utility could monitor the performance of a major consumer equipment. Utility would be able to advise the consumer on the condition of specific facility. 15
Smart Grid Role in Climate Change Smart grids are key to reducing carbon emissions and improving energy efficiency: 1. Reduce network losses 2. Facilitate higher penetration of renewable (wind and solar) and distributed generation (small windmill or micro- CHP plant) in compliance with operational security, power system reliability, and electricity market efficiency. 3. Help consumers better participate in the market not only by using their energy more efficiently (e.g. through smart metering) but also by allowing consumers to act also as producers selling back their excess electricity (e.g. CHP or plug-in electrical vehicles). 16
Sustainable Electric Energy System Smart Grid is necessary for a successful transition to a future sustainable energy system. All relevant stakeholders must become involved. Generators Transmission Companies Distribution companies Consumers Power Equipment Manufacturers Power Exchanges Smart Grid Information Technology Providers Traders Governments Regulators 17
Infrastructure Gaps for Sustainable Grid 1. Intermittency of Renewables 1. Storage virtual or physical 2. Grid control for large penetration 2. Reduction of Consumption and Greenhouse Gases 1. Real time pricing 2. Carbon caps / trading 3. Transition to EV 1. Peak load management 2. New power plants 3. Distribution upgrades 4. Communication and Cyber Security 18
Need for Power Flow Control Networked systems (as opposed to radial) can provide inherently higher levels of reliability Difficult to control where current flows in a networked system Loop flows, congestion, and poor system utilization can result First thermally limited line sets the power transfer capacity Other lines may still operate below their thermal capacity Requirements for (N-1) and (N-2) contingencies can worsen situation Insufficient transmission capacity can necessitate greater generation reserves Transmission constraints can limit access to low-cost generation 19
What Will Smart Grids Look Like? Smart grids are not new super grids. They will not look significantly different from today s conventional electricity grids transporting and distributing power over copper and aluminum. However, smart grids will lead to improved efficiency and utilization of assets. The smart grid will be an evolution or a process within which electricity grids are being continuously improved to meet the needs of current and future customers. www.smartgrids.eu 20
Expected Results from Smart Grid Implementation 1. Increased penetration of renewables: dynamic and bidirectional power flows 2. Controllable electric valves for flow control between control areas 3. Manage EV/PHEV charging without overloading distribution infrastructure 4. New market forces with RTP, green electrons, carbon limits. 5. Increased automation, enhanced reliability, and power quality 6. Reduced congestion and improved asset utilization 7. Reduce number of generating plants and power lines that need to be built 8. Avert cascading failures under contingency conditions 21
Cost Challenges and Opportunities Cost of implementation estimated at over $200 Billion A significant utility and consumer benefits may not occur for several years. It will provide publicly observable benefits only after considerable investments have been made. Need to find cost offsets if energy price increases are to be avoided Without EVs, the return on investment model for smart meter and real time pricing (RTP) is poor for consumers 22
Regulatory Challenges and Opportunities Balkanization of utilities and varying state regulations inhibit new markets Utilities are often slow to adopt new technologies that have not been extensively proven outside of a laboratory (minimizing risk of investments). Market incentives for unsustainable and non-scalable technologies can create long-term momentum and inhibit growth of more sustainable alternatives Externalization of carbon costs can provide a cost benefit to fossil burning technologies, and inhibit new sustainable technologies State public utility commissions (PUC) need to develop unique rate structures using Smart Grid technologies, such as: Special time-of-use rates. Critical peak pricing. 23
Smart Grid Concerns We will know everything about how energy is produced and consumed, but have the same old grid to manage the electric economy We will have stranded investment in renewable generation because the same old grid cannot effectively move it Reliability and security of the grid will decrease because of data overload, IT system frailties, conflicting autonomy and security vulnerabilities Social injustices will occur as grid egalitarianism diminishes with increasing costs (real time pricing) and need for essential tools and know how to exploit the smart grid. (Will poor or elderly be left out?) www.zenergypower.com 24
Cyber Security Risks with Smart Grid Additional risks to the grid include: Increasing the complexity of the grid could introduce vulnerabilities and increase exposure to potential attackers and unintentional errors; Interconnected networks can introduce common vulnerabilities; Increasing vulnerabilities to communication disruptions and introduction of malicious software could result in denial of service or compromise the integrity of software and systems; Increased number of entry points and paths for potential adversaries to exploit; and Potential for compromise of data confidentiality, including the breach of customer privacy. Reference: DRAFT NISTIR 7628 Smart Grid Cyber Security Strategy and Requirements, The Cyber Security Coordination Task Group, Advanced Security Acceleration Project Smart Grid, February 2010 [Online] Available at http:// csrc.nist.gov/publications/drafts/nistir-7628/draft-nistir-7628_2nd-public-draft.pdf 25
DOE Office of Electricity Preparing the Grid for the Future www.oe.energy.gov/documentsandmedia/rd_strategic_plan_final07.pdf 26
U.S. Smart Grid Projects October 2009, $3.4 billion awarded for 100 projects by U.S. government with $4.7 billion in matching funds by industry, utilities, and cities. 130 projects in 44 states by end of 2009 Market for Smart Grid technologies in 2009 ~$20 billion By 2014, market for Smart Grid technologies: $43 billion Global market in 2014: $171 billion Zpryme, Smart Grid: United States and Global Hardware and Software Companies Should Prepare to Capitalize on This Technology, Dec. 14, 2009. 27
NIST Priorities for Standardization Demand Response and Consumer Energy Efficiency Wide-Area Situational Awareness large area display of power system performance to anticipate, prevent, and respond to problems to prevent outages Energy Storage benefits utilities and consumers Electric Transportation plug-in EVs Advanced Metering Infrastructure (AMI) demand response, dynamic pricing Distribution Grid Management increase reliability, efficiency, renewable integration Cyber Security required for Smart Grid Network Communications access control, security, operational requirements Reference: NIST Special Publication 1108, NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0, Office of the National Coordinator for Smart Grid Interoperability, January 2010. [Online] Available at: http:// www.nist.gov/public_affairs/releases/upload/smartgrid_interoperability_final.pdf http://www.nist.gov/smartgrid/ 28
NIST Smart Grid Standards Interoperability Project Priority Action Plan (will complete by end of 2010) 1. Smart meter upgradeability standard 2. Common specification for price and product definition 3. Common scheduling mechanism for energy transactions 4. Common information model for distribution grid management 5. Standard demand response signals 6. Standards for energy use information 7. DNP3 Mapping to IEC 61850 Objects http://www.nist.gov/smartgrid/ 8. Harmonization of IEEE C37.118 with IEC 61850 and precision time synchronization 9. Transmission and distribution power systems models mapping 10. Guidelines for use of IP protocol suite in the Smart Grid 11. Guidelines for use of wireless communications in the Smart Grid 12. Energy storage interconnection guidelines 13. Interoperability standards to support plug-in electric vehicles 14. Standard meter data profiles 15. Harmonize power line carrier standards for appliance communications in the home 29
Smart Grid Cyber Security R&D Themes 1. Device Level a. Cost Effective Tamper Resistant Device Architectures b. Intrusion Detection with Embedded Processors 2. Novel Mechanisms a. Cryptographic Key Management large scale key management b. Detecting Anomalous Behavior Using Modeling 3. Systems Level (Security and Survivability Architectures) a. Architecting for bounded recovery and reaction quick recovery to physical events (load/generation changes) b. Architecting Real-time security c. Calibrating assurance and timeliness tradeoffs how to handle detect intentional delays d. Legacy system integration e. Resiliency Management and Decision Support How to respond to threats that get past first line of defense f. Efficient Composition of Mechanisms How well do systems work with each other g. Risk Assessment and Management 4. Networking Issues a. Safe use of COTS/Publicly Available Systems and Networks security/reliability of TCP/IP b. Advanced Networking use something other than TCP/IP 5. Other Security Issues in the Smart Grid Context a. Privacy and Access Control in Federated Systems sharing / protecting information b. Auditing and Accountability c. Infrastructure Interdependency Issues (water, oil and NG, electrical, telecom) d. Cross-Domain (Power/Electrical to Cyber/Digital) Security Event Detection, Analysis, and Response 30
EPRI Smart Grid Demonstrations Deploy virtual power plant. Demonstrate integration and interoperability. Leverage communication technologies. Integrate multiple types of Distributed Energy Resources: Distributed Generation, Renewable Generation, Storage, Demand Response http://www.smartgrid.epri.com/ 31
Summary Utility and consumer can benefit from more efficient use of energy. Opportunities for Nation s fuel resources to be wisely managed. Integration and usage of renewable and non-renewable generation sources. Enable consumer to better manage their consumption. 32