0 The Smart Grid: Deconstructed and Demystified Christine Hertzog Managing Director Smart Grid Library January 2010 www.smartgridlibrary.com Smart Grid Library
1 Guilty or Not Guilty? Do you turn on your kitchen sink faucet, then leave for the day? Do you leave your car idling all night in your garage? Do you leave lights and computers on, and all charging devices plugged in all the time?
2 Why is electricity held in low esteem? Because it is always there Because it is cheap Because we treat it like a commodity Because we ignore it unless THE LIGHTS GO OUT!!
3 What is the Smart Grid? Plus 7 blind men Minus the tower
4 Smart Grid Definition The Smart Grid is a bi-directional electric and communication network that improves the reliability, security, and efficiency of the electric system for small to large-scale generation, transmission, distribution, and storage. It includes software and hardware applications for dynamic, integrated, and interoperable optimization of electric system operations, maintenance, and planning; distributed generation interconnection and integration; and feedback and controls at the consumer level. Smart Grid Library
Smart Grid Conceptual Model 5
6 Today s Electrical Grid Energy flow in one direction, from generation to consumer (residential or C&I) Generation Transmission Distribution Home/ Office Information flow in one direction from meter to utility manually read by a meter reader or transmitted information back to the utility
7 Tomorrow s Smart Grid Energy flows in many directions, from generation to grid or building, from car to/from building, from utility to customers, from customers to utility Generation Transmission Distribution Home/ Building Information networks create secure communications between devices and people Distributed Generation & Storage
8 Smart Grid Benefits The Smart Grid will: Reduce CO 2 emissions by up to 480 MMT by 2020 Save up to $35B in energy and fuel costs (Smart2020.org report on information and communications technologies) Lower rates? No Lower bills? Yes
It s not a National Grid 9
10 Highly Fragmented Environment 3200 IOUs, municipals, and rural co-ops that buy & distribute electricity 10 ISO/RTOs (Independent System Operators/Regional Transmission Organizations) Federally-regulated entities coordinating regional transmission and markets Wholesale power markets trade short and long-term power contracts Power marketers include all energy sources coal, gas, nuclear, solar, etc. Register tariffs with FERC to sell wholesale power Electricity derivative markets Futures and options Regulators: 50 state regulatory agencies and energy commissions, and Feds like DOE, FERC, FCC, and NERC
The Supply Chain Evolves Generation Transmission Distribution Consumption Consumption is the new link in the supply chain, driving new technologies and applications to Commercial, Industrial, and Residential consumers Traditional Grid Smart Grid Enhancements 11
The Smart Grid Relies on Storage Generation Transmission Distribution Consumption Storage Compressed air EC Capacitors Substation-scale Molten salt Flow cells Residential-scale Electric vehicle Home battery Energy Storage technologies underpin centralized and distributed renewables generation Smart Grid Library Traditional Grid Smart Grid Enhancements 12
Intermittent Generation Added to Grid Generation Transmission Distribution Consumption Storage Compressed air EC Capacitors Substation-scale Molten salt Flow cells Residential-scale Electric vehicle Home battery renewables Decoupling Feed in Tariffs Players New power producers Smart Grid Library Traditional Grid Smart Grid Enhancements 13
Transmission Impacts Big and Contentious Generation Transmission Distribution Consumption Compressed air renewables Decoupling Feed in Tariffs Players New power producers Smart Grid Library EC Capacitors Superconductivity Synchrophasors HVDC Interstate transmission agency to build lines? Players Transcos Traditional Grid Storage Substation-scale Molten salt Flow cells Smart Grid Enhancements Residential-scale Electric vehicle Home battery 14
Distribution Becomes Bi-directional Generation Transmission Distribution Consumption Compressed air renewables Decoupling Feed in Tariffs Players New power producers Smart Grid Library EC Capacitors Superconductivity Synchrophasors HVDC Interstate transmission agency to build lines? Players Transcos Traditional Grid Storage Substation-scale Molten salt Flow cells Smart meters Distribution automation Microgrids Zoning to allow storage Smart Grid Enhancements Residential-scale Electric vehicle Home battery 15
Major Changes in Store for Consumers Generation Transmission Distribution Consumption Compressed air renewables Decoupling Feed in Tariffs Players New power producers Smart Grid Library EC Capacitors Superconductivity Synchrophasors HVDC Interstate transmission agency to build lines? Players Transcos Traditional Grid Storage Substation-scale Molten salt Flow cells Smart meters Distribution automation Microgrids Zoning to allow storage Smart Grid Enhancements Residential-scale Electric vehicle Home battery HAN HEMS Smart appliances Net metering FiTs Players Energy-efficiency consultants 16
17 Thank You! For definitions of the terms and acronyms in this presentation, get the Smart Grid Dictionary, First Edition, at www.smartgridlibrary.com Questions, comments, or suggestions for new Dictionary entries? Please contact Christine Hertzog at chertzog@smartgridlibrary.com