Smart Grid in Illinois: Accelerating Innovation Korea Smart Grid Week November 10, 2010 Jeju Island, Korea
Achieving a Smarter Grid in Illinois Illinois 18 months ago: Pockets of Activity in Illinois Numerous narrowly scaled projects Limited Dialogue, Limited Collaboration Applications competing for same resources Few partnerships Limited public resource availability Nonetheless, a Foundation was Emerging Illinois Department of Commerce and Economic Opportunity, Illinois Commerce Commission, University of Illinois, Illinois Institute of Technology, Argonne National Laboratory, Galvin Electricity Initiative, private industry 2
Foundation Activities Illinois Commerce Commission Action The Illinois Statewide Smart Grid Collaborative Developing a strategic plan that will guide the deployment of smart grid in Illinois by focusing on the following areas: Cost-Benefit Analysis: Criteria for Deployment Decisions Default Rates: How to Charge for Electricity with AMI in Place Cost Recovery: How to Pay for Smart Grid and Who Bears Associated Risks? State Regulatory Consumer Policies Initiation of ComEd Pilot AMI roll out to 131,000 residential customers in 10 communities in the Chicago area. One year customer application program 3
Foundation Activities Asset Inventory and Common Narrative Over $500 million in investment has been secured in Illinois in the last 18 months for energy efficiency and green development, including nearly $120 million in smart grid R&D and demonstration projects in 2009 and 2010: $25 millionto the Chicago Metropolitan Agency for Planning and the City of Chicago for energy efficiency retrofit program design and execution. $24 million in American Recovery and Reinvestment Act (ARRA) funds to Beacon Power Corporation to construct a 20 MW flywheel energy storage plant in Chicago, Illinois. $18.8 million over 5 years to the Information Trust Institute to the University of Illinois Urbana- Champaign by the U.S. Department of Energy to extend their Trustworthy Cyber Infrastructure for the Power Grid initiative. $12.6 million including, $5 million in ARRA funds and $2.5 million in State funds, to the Illinois Institute of Technology to establish a Smart Grid Education and Workforce Training Center. The $5 million award was the largest university award of the ARRA project category. $8.8 million to Argonne National Laboratory for advanced battery and energy storage R&D. This research will set the stage for mass electric vehicle adoption. $5.1 million in ARRA funds to S & C Electric for a distributed generation project. $245 million captured for 17 ARRA broadband awards leveraging a total value of $350 million. 4
Engaging Partners, Developing Projects Efforts by the ISTC, CUB, DCEO, City of Chicago and other members of the Public-Private Partnership to build on the foundation activities. Recruit additional partners Disseminate market intelligence and best practices Identify potential funding sources Form strategic alliances Develop demonstration projects 5
6 Illinois Partners
Illinois Regional Smart Grid Cluster Development Methodology Research & Development Idea Pipeline Deployment/Market Capture Pilot Deployment and Testing Market Needs & Opportunities Collaborative Business Models/Market Development Regulatory and Policy Review Public Support / Engagement 7
Constant Improvement Incorporating Best Practices Learning from nationwide AMI deployments Pilot projects face: Policy and legal barriers Technology audits Cost overruns Customer frustration Lessons for Illinois deployments Consumer education Interoperable, mature technology must be installed. Clear cost-recovery models must be presented to and approved by the PUC and other stakeholders. 8
Leveraging Investment Capital Illinois Jobs Now! Capital Bill $80 millionfor R&D facilities and projects at universities and federal laboratories located in Illinois to be administered by the Illinois Department of Commerce and Economic Opportunity. $50 millionfor broadband deployment and related improvements, including Health IT and telemedicine to be administered by the Illinois Department of Commerce and Economic Opportunity. $37.5 millionfor American Recovery and Reinvestment Act (ARRA) matching funds to be administered by the Illinois Department of Commerce and Economic Opportunity. $15 millionfor grants and loans to emerging technologies to be administered by the Illinois Department of Commerce and Economic Opportunity. $10 million for electric car manufacturing and transportation electrification infrastructure projects to be administered by the Illinois Department of Commerce and Economic Opportunity. 9
Illinois Specific Resource Collaboration Regional Electric Vehicle Infrastructure Facilitated cluster partner resource alignment. Co-investment by the City of Chicago and the State of Illinois leveraged at approximately 4:1. First phase comprised of 70+ level II and III charging stations to be deployed over 3 years. Success of project will lead to further deployment in additional communities, public facilities and is expected to induce additional public co-investment. V2G V2G 10
International Collaboration and Market Development Smart Grid Green Technology Memorandum of Understanding between Illinois and Korea: Mission: To advance the adoption of innovative smart grid and green technologies that will generate economic opportunity, create jobs and produce environmental benefits for consumers, communities and shareholders in Illinois and elsewhere. Signed at World Smart Grid Forum in Seoul, January 2010. Objectives: Generate economic opportunity Partner with businesses Attract investment Deliver benefits Foster ongoing collaboration 11
Collaboration Results Illinois-Korea Phase I MOUs Project Based MOUs Smart Grid Cyber Security Collaborative Research & Development Partners: UIUC and The Attached Institute of ETRI Distributed Energy Resources Integration and Building Energy Management Systems Collaborative Research & Development Partners: IIT, KERI, KT, LSIS, KSGI Global Workforce Development Training Center Partners: IIT, ADICA, KESRI Illinois Smart Buildings Initiative Partners: BOMA/Chicago, CUB, ISTC, KT, LGE, KSGA Business Development MOUs International Business Collaboration Partners: ISTC and KSGI International R&D collaboration Partners: ISTC and KETEP Smart Utilities Strategic Partnership Partners: ComEd and KEPCO Business Development Letter of Intent Smart Communities Strategic Partnership Partners: Oak Park, CUB, ISTC, Galvin Electricity Initiative and Deloitte Korea. 12
13 Korean Partners
Early Success Recognized Additional Collaboration Tools, Innovation Support Secured Illinois Smart Grid Regional Innovation Cluster Awarded contract from the U.S. Small Business Administration in September 2010, to accelerate business growth in the emerging Illinois Smart Grid Regional Innovation Cluster Partners have begun to catalog resources and will soon launch an innovation marketplace that will provide technical and business support to speed new smart grid technologies on the path to commercialization. Entrepreneurs can submit their business plans and company information for evaluation and mentoring at www.smartgridcluster.com starting November 1, 2010. Illinois CleanTech Ecosystem The Clean Energy Trust secured a U.S. Department of Energy grant in September 2010, to help transfer research from Illinois world-class universities and science labs into clean energy technologies and viable businesses. The Clean Energy Challenge was recently announced. Will award $100,000 in cash prizes to the best young Illinois companies with the potential to bring new clean energy technology to the marketplace. At least one team member must be an Illinois resident. The application deadline is December 3, 2010. Finalists will be selected to present their business plans on March 3, 2011 Full information at: www.cleanenergytrust.org. 14
Accelerating Cluster Growth Policy and Advocacy Activities Smart Grid Cluster Management Establish an State government management office for smart grid Define consumer data access rights Expand international collaborations and joint ventures Smart Transportation Attract electric vehicle product Zoning and permit support for EV infrastructure Evaluate possible state level consumer incentives for electric vehicle purchase Monitor and Advocate for Market Supporting Policies National renewable portfolio standard Improve access to capital Rebate & tax incentives for renewable energy installation Smart Communities Expand consumer incentives for smart appliance purchase Implement public infrastructure requirements that incorporate smart grid products Evaluate use of special assessment districts to pilot deployment 15
Illinois / Korea Phase II Projects Illinois and Korean partners are working collaboratively to advance additional projects. Future projects will focus on the built environment. Smart community projects that integrate smart appliances, smart parking and electric vehicle charging throughout entire neighborhoods or communities. Advancing portfolio-based energy management practices in demand response and energy efficiency practices in commercial and residential buildings to mitigate climate change. 16
Home and network automation Demand Response Self-healing Infrastructure Consumer Appliances/White Goods Construction and Design Distributed Generation & Energy Storage PH/EV Projects Vehicle Charging Infrastructure Smart Parking/Quick Charge V2G (Vehicle to Grid) Transmission Electric Vehicle Fleet testing Localized Transit Leverage AMI Infrastructure Potential Phase II Projects Smart Communities Bridge year between conclusion of pilot and full deployment 17
Green Hospitals Potential Phase II Projects Smart Buildings Illinois is home to more than 140 hospitals, with more than 30,000 beds and patient revenues of more than $80 million (USD). Potential upgrades/systems that could be installed: Energy Efficiency: LED Lights, Energy Management System, Energy Storage Smart Parking and EV Charging Infrastructure Industrial Facilities Energy Optimization Large scale factories and plants are significant and disproportionate consumers of electricity. Potential products/upgrades that could be installed: Factory Energy Management Systems, Operation Center, Advance Meter Infrastructure, LED Lights, Energy Storage, EV Charging Stations Public Infrastructure Municipalities are often the single largest property owner in a community. Deploy demand response and energy efficiency management to public buildings in Illinois. Potential Partners: Chicago City Colleges, State Partners 18
Potential Phase II Projects Smart Transportation Mass Transit Regenerative braking and advanced battery storage. Smart Parking EV charging, Payment system, Intelligent Parking, Information System, Security Solution, Customer Service System Work Fleet Replacement Deploy electric vehicle charging infrastructure at public service agencies. Adopt electric vehicle work fleets to those public service agencies Parcel Delivery EV & Charging Stations Parking Patrol 19
Sustained Investment and Collaboration are the Keys to Ongoing Success The Illinois Institute of Technology is a recognized leader in Perfect Power and power grid architecture. The University of Illinois Urbana Champaign is a recognized leader in network and cyber security solutions. Communities throughout Illinois are engaged. Efforts to secure private and public investment are underway. Cluster partners are monitoring the ARRA smart grid awards for best practices. Illinois will not achieve success alone, but through collaboration with a global partner network. 20
Thank you 감사합니다 Illinois smart grid partners participating in Korea Smart Grid Week 21