Smart Grid Activities by the US Department of Energy Asia Pacific Clean Energy Summit and Expo Dan Ton Program Manager, Smart Grid R&D August 31, 2010 www.oe.energy.gov U.S. Department of Energy National 1000 Academy Independence of Engineering Ave., -SW BMED Washington, DC 20585 9/15/2010 1
Presentation Outline Smart Grid Functionalities State of Smart Grid Development DOE Programs Addressing Smart Grid Challenges Smart Grid Future Smart Grid Resources 2
Smart Grid Functionalities Demand response & customer participation goals Dynamic optimization goals Development characterized by seven defining functionalities (or characteristics) of the smart grid Enables Informed Participation by Customers Accommodates All Generation and Storage Options Enables New Products, Services, and Markets Provides the Power Quality for the Range of Needs in the 21st Century Optimizes Asset Utilization and Operating Efficiently Addresses Disturbances Automated Prevention, Containment, and Restoration Operates Resiliently Against Physical and Cyber Attacks and Natural Disasters Denotes outcomes contributing to primary goals 3
Smart Grid System Report, July 2009 (a DOE report to Congress) State of smart grid deployments Applying 20 metrics to indicate deployment progress (by penetration levels or maturity levels) in achieving the 7 functionalities Metrics crosscutting smart grid scope areas and functionalities First Report available at http://www.oe.energy.gov/documentsandmedia/ SGSRMain_090707_lowres.pdf Next report with updates due to Congress this December (every two years for an updated report) 4
Smart-Grid Trends in United States Trend High Moderate Low Nascent Flat or slight decline Metric Areas Distributed generation, T&D automation, advanced meters, venture capital Dynamic pricing, real-time data sharing, distributed resource interconnection policy, policy/regulatory progress, advanced system measurement Load participation, microgrids, plug-in electric vehicles, grid-responsive load, gen-t&d efficiencies, dynamic line ratings Cyber security, open architecture/standards Capacity factors, power quality 5
Smart Grid Development Challenges Addressed by DOE Challenges Costs and their recovery Interoperability standards Technical barriers Changing technologies and policies DOE Smart Grid Development Recovery Act: Commercial applications and demonstrations of near-term technology Base Programs: R&D on longer-term technology International coordination 6
$4.5 Billion for Grid Modernization in Recovery Act Funding Smart Grid Interoperability Standards, 0.2%, $0.01 Resource Assessment & Transmission Planning, 1.8%, $0.08 Other, 7.1%,, $0.32 Workforce Training, 2.2%, $0.1 Smart Grid Demos, 13.7%, $0.615 Investment Grants, 75%, $3.375 Amounts are in billion US Dollars Independence and Security Act of 2007 $615M for demonstration projects (Section 1304) $3.375B for matching for deployment (Section 1306) SEE: http://www.energy.gov/recovery 7
ARRA: Smart Grid Investment Grants (100 projects: $3.4B Federal; $4.7B 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. 176,814 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 1,183, 265 Enables customer empowerment 12 / 100 Accelerates market entry Impacts Enhanced situational awareness and electric system reliability and resiliency 1444 MWs of peak demand reduction per year (self-reported estimates) Transformational changes in consumer behavior and energy consumption Begins the path toward energy independence 8
Advanced Meters 8.3 million smart meters installed as of May 2009 (~6% of total residential meters in the U.S.) ARRA investments adding additional 18 million smart meters by 2013 (or reaching 18% penetration) Up from 4.7% in 2008 and 1% in 2006 9
Dynamic Pricing Time-Based Rates Number of Entities (2006 Survey) Number of Entities (2008 Survey) Time-of-Use Rates 366 315 Significant % increases in dynamic pricing offerings Real-time Pricing 60 100 Critical Peak Pricing 36 88 TOTAL 462 503 Source: 2006 FERC Survey and 2008 FERC Survey Additional Dynamic Pricing Programs supported by ARRA Investments 19 SGIG projects with dynamic pricing and a randomized study plan Consumer behavior studies to be documented on some of these projects 10
ARRA: Smart Grid Demonstration Program (32 projects: $620M Federal; $1,028M non-federal) Smart Grid Demonstrations on a suite of technologies to validate performance and cost information for a proven use (business) case: Regional demonstrations Demonstration of technical/operational/business-model feasibility on a regional scale: - 8 NERC regions - 27 egrid subregions - co-ops or publicly owned utilities in the (sub)regions Grid-scale energy storage demonstrations Battery storage for utility load shifting or for wind farm operations Frequency regulation ancillary services Distributed energy storage for grid support Compressed air energy storage (CAES) Demonstration of promising energy storage technologies 11
ARRA: Smart Grid Standards Development NIST having primary responsibility to coordinate development of protocols and model standards for interoperability of Smart Grid devices and systems Phase 1: Identified an initial set of existing consensus standards, and to develop a roadmap to fill gaps Draft report, NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0, published in September for public comment Identified ~80 existing standards that can be used now for smart grid development Identified 14 high priority gaps plus cyber security in need for new or revised standards Phase 2: Established public/private Standards Panel in December 2009 to provide ongoing recommendations for new/revised standards Phase 3: Initiate implementation of the testing and certification framework in 2010 Slide 12 12
Longer-term Smart Grid R&D Multi-Year Program Plan (FY10-14) R&D Areas Standards & Best Practices Technology Development Modeling Analysis Focusing on Distribution Systems Customer Solutions Interfaces & Integration with Transmission and Generation Systems Evaluation & Demonstrations 13
Smart Grid R&D MYPP Development & Implementation MYPP to guide Smart Grid R&D investments with staged development process Meeting in October 2009 involving national labs Stakeholder Roundtable Meeting in December 2009 Public comment in March-April 2010 MYPP implementation Funding opportunity announcement for private sector-led projects (proposals due June 24; 11 awards in September 2010 with estimated $30M DOE funding over 5 years) Program review of national lab R&D in June Peer review of all R&D projects in November 14
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 15
Smart Grid Future: Achieving 7 Defining Functionalities Today s Grid Smart Grid Consumers have limited information and opportunity for participation with power system, unless under direct utility control Informed, involved, and active consumers demand response and distributed energy resources Dominated by central generation many obstacles exist for distributed energy resources interconnection and operation Limited wholesale markets, not well integrated limited opportunities for consumers Focus on outages and primarily manual restoration slow response to power quality issues, addressed case-by-case Limited integration of operational data with asset management business process silos limit sharing Responds to prevent further damage focus is on protecting assets following a fault Vulnerable to inadvertent mistakes, equipment failures, malicious acts of terror, and natural disasters Many distributed energy resources with plug-and-play convenience; responsive load to enhance grid reliability, enabling high penetration of renewables Mature, well-integrated wholesale markets; growth of new electricity markets for consumers; product interoperability Power quality is a priority with a variety of quality/price options rapid resolution of issues Greatly expanded data acquisition of grid parameters focus on prevention, minimizing impact to consumers Automatically detects and responds to problems focus on prevention, minimizing impact to consumers, and automated restoration Resilient to inadvertent and deliberate attacks and natural disasters with rapid coping and restoration capabilities 16
Smart Grid Resources Smart Grid System Report (2009) Smart Grid Metrics for Measuring Progress Smart Grid Introduction and Stakeholder books Smart Grid Maturity Model Smart Grid Information Clearinghouse SmartGrid.gov 17
Contact Information Dan T. Ton Program Manager, Smart Grid R&D Office of Electricity Delivery and Energy Reliability U.S. Department of Energy (202) 586-4618 Dan.ton@hq.doe.gov For more information: OE: www.oe.energy.gov Smart Grid: smartgrid.gov 18