Smart Grid Implementation Strategies Ray Gogel February 2010
Agenda Smart Grid What is it? Some Implementation Strategies SmartGridCity 2
Smart Grid? Edison vs. the 21 st Century One Directional Grid vs. Omnidirectional Analog vs. Digital Hype vs. Hope Flintstones vs. Jetsons 3
Many Definitions Analytics Sensing Communications Automated Control Optimization And the list goes on The definition of Smart Grid actually depends on the problem we are trying to solve 4
The World According to Edison and Tesla AGC (Automatic Generation Control) So Intelligent What IS Systems the Problem? Today SCADA EMS GIS OMS Asset Management WFM The electric grid was created at a time when : - pollution was without consequences - energy was cheap. These design points are no longer valid CIS 5
Smart Grid Implementation Scenarios End User Energy Management Renewables, Distributed Generation Operations and Reliability Enhancement Optimize Power Delivery E D G E E D G E Volatility Resides at the Edges 6
Combining Optimization with Energy Management Diagram courtesy of Xcel Energy Real time generation dispatch based on cost, emissions and other drivers Optimizing Power Delivery Dynamically control voltage 24X7 to optimize power needed and/or carbon produced Reduce energy lost in distribution ( line losses ) Result is savings of up to 3 5% of energy generated or purchased at any time, without impact on customers Dynamic adjustment can occur in minutes providing alternative to spinning reserves and solution to intermittent renewables Use of distribution as a shock absorber for volatility, rather than generation spooling Customer Energy Management and Distributed Generation Adjust and aggregate customer load through demand response, typically in peak periods (~ 80 hours a year), creating high value capacity and energy Manage emerging forms of distributed generation, renewables and PHEV s Enable new and innovative residential and business energy management products 7
Key Benefit Areas Description Valuation Grid Optimization Distribution Management Smart Metering Reduce technical losses and optimize power flow at select areas or throughout the entire distribution system. Can be used as virtual peaking capacity in times of economic or system security emergency Extend intelligent monitoring and connectivity of system assets and operations from the substation to the meter Voltage and current sensing, operational analytics and open standards based communication to provide actionable intelligence and control of utility devices Reduced labor costs associated with reading of meters through automation of data collection and system integration 1 2 R line loss mitigation Reduce unnecessary consumption Peak shaving capacity Labor related cost mitigation Capital cost mitigation Bypass theft mitigation Regulatory incentive yield improvement Labor related cost mitigation Revenue Assurance Improve utility revenue collection processing Reduce revenue losses from direct energy theft and unpaid consumer bills Meter tamper theft mitigation Mitigated bad debts Improved days payable Distributed Energy Resource Management Enabled real time, verifiable Demand Response programs to reduce load during peak periods Enable real time monitoring and management of Distributed energy resources such as distributed generation and PHEVs Labor related cost mitigation Peak shaving capacity Distributed generation capacity Carbon Reduction Monetization of reduced emissions through energy efficiency applications: DVO Continuous Voltage Regulation; Line Loss Mitigation Var Control; Line Loss Mitigation Phase Balancing; and Tamper and Theft Reduction Regulatory approved market value of mitigated emissions 8
SMART GRID CITY TM 9
SmartGridCity Implementation Strategy and Results Operations and Reliability Enhancement Xcel Energy moved from reactive to preventive maintenance program. Voltage problems have been reduced by over 90%; there have been no customer voltage complaints this year. Unpredicted transformer failures have been significantly reduced. 7 detected and addressed prior to failure through July 2009. Optimize Power Delivery Renewables and Distributed Generation System Optimization Solution successfully implemented. Preliminary Results are exceeding expectations. 4 to 7% efficiency impact versus an expectation of 1%. Monitoring impact of distributed renewables on grid assets and performance Detected unknown distributed renewables feeding onto grid. Just the beginning. End User Energy Management Last to start Enabled several in home energy management systems Integrated Meters with Xcel Billing System Roll out of broader program in 2010 10
Xcel SmartGridCity TM Preliminary Results All in the span of less than one year Voltage Complaints by Year in City of Boulder Number of Complaints Month Source: Xcel Energy, SmartGridCity Update: Project Status and Early Benefits 11
Grid Optimization Initial Results Reduce VARs Reduce Losses Reduce Load Reduce Emissions As power factor improved... load decreased. Actual substation load reduction achieved in this example was between 4% to 7% over the course of about an hour by optimizing the system Expected nationwide target is 3% to 5% of load On national basis, 3% would save over $10 billion annually Reduce carbon equivalent to taking 15% of all cars in the U.S. off of the road 12
Key Questions to Consider Do you know what you want? And why? How will you overcome silos? How will you sequence technological change and dynamic pricing? How will you convert reams of data into streamlined actions? And what happens when the grid flows both ways? 13