Smart Grid Implementation at the Sacramento Municipal Utility District Jim Parks Program Manager Energy Efficiency and Customer R&D March 17, 2010 Green Summit SMUD s Smart Grid Vision A comprehensive regional smart grid solution built upon the installation and operation of an end-to-end smart grid that extends from generation to the smart meters of all SMUD s customers. It will: Link smart meters and home area networks with upstream, automated distribution operations Optimize distribution system operations to improve system reliability and efficiency Enable our customers to fully participate in the electricity marketplace through dynamic pricing and demand response programs Land Use and Energy 1
What is Smart Grid? Smart grid is all about optimizing and managing the electricity it grid to maximize i operational efficiencies i i and reduce the need for additional infrastructure (transmission lines and power plants). Provide control down to the customer level Increase the capacity of the grid Levelize loads There are several elements of smart grid that will make it a reality. SMUD s Smart Grid Grant SMUD received a $127.5M Smart Grid Investment Grant from DOE to implement $308 M worth of projects: Advanced Metering Infrastructure/Smart Meters Consumer Behavior Study (Dynamic Pricing) Demand Response Distribution o Automation o PHEV/EV Infrastructure Customer Applications (Partner Projects) Cyber Security Land Use and Energy 2
Other Grants and Direction Received several other smart grid-related grants Accelerate renewables & waste biomass ($6.9 M) High Penetration PV ($3.0 M) PV and Energy Storage ($4.3 M) CHP for Food Processing ($1.5 M) Micro Grid ($1.6 M) Other as partner, not prime ($9.2 M) Hired Smart Grid manager to oversee SMUD s efforts Focus for next three years will be on Stimulus projects Strategic plan will be developed to define direction beyond 3 years SMUD s Smart Grid Partners CSUS SMUD SGIG DGS LRCC SMUD has partnered with three public agencies to implement the Smart Grid grant. Partners SMUD Sacramento Municipal Utility District LRCCD Los Rios Community College District DGS CA, Department of General Services CSUS California State University, Sacramento 6 Land Use and Energy 3
SMUD s FOA 58 Submittal Project Tasks Table 1. Costs of SmartSacramento Project by Task (in millions) 2009 (Pre-Award) 2010 (Year One) 2011 (Year Two) 2012 (Year Three) Total Project Costs Task 1: AMI/Smart Meters $15.6 $84.5 $26.2 $0.0 $126.3 Task 2: Dynamic Pricing $0.0 $8.0 $4.0 $4.0 $16.0 Task 3: Demand Response $0.0 $8.4 $16.3 $23.0 $47.7 Task 4: Customer Applications CA DGS $0.0 $8.3 $8.3 $8.3 $24.9 CSUS $0.0 $2.8 $2.8 $2.8 $8.4 LRCCD $0.0 $3.1 $3.1 $3.1 $9.3 Task 5: Distribution Automation $0.0 $20.5 $25.5 $23.0 $69.0 Cyber Security $0.0 $3.0 $1.5 $1.6 $6.1 Total Project Costs $15.6 $138.6 $87.7 $65.8 $307.7 Partner Projects At each partner campus energy management systems will be installed or updated to save energy and reduce peak loads The CSUS distribution system will be upgraded to increase grid reliability PHEV/EV charging stations will be installed at all three partner campuses Smart meters will be installed on all 57 buildings on the CSUS campus Land Use and Energy 4
Why Smart Grid? Load Duration Curve Critical peak: 500 MW for < 50 hrs/year SMUD Strategic Directive 9 Reduce Greenhouse Gas Emissions 90% below 1990 levels by 2050 <350,000 metric tonnes/year Assure reliable power supply Land Use and Energy 5
Why Smart Grid? SMUD Projected Resource Mix Through 2050 25,000 2020 EE/DSM @ 2.5X 2007 gy Demand and Resource Supply GWH Total Projected Energ 20,000 15,000 10,000000 5,000 Unknown Generation 33% RPS @ 2020 Requirements Hydro (UARP + WAPA) Natural Gas Resource SMUD Gas Fired Generation Total Retail Demand Energy Gap 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 Smart Grid Vision Land Use and Energy 6
Smart Grid Elements 1. Energy Efficiency 2. Renewables/Distributed Generation 3. Energy Storage 4. Demand Response 5. Advanced Metering Infrastructure 6. Dynamic Pricing 7. Distribution System Improvements 8. Generation Efficiency Deep Energy Efficiency Retrofits Land Use and Energy 7
Net Zero Energy Homes by 2020 Total Estimated Energy Bill Savings e Monthly Utility Cost Averag $150 $100 $50 $0 $139.86 T24 Base House 83% Reduction in Total Utility (Electric & Gas) Bill $23.51 RJ Walter ZEH House $116 monthly savings at $50k incremental cost Land Use and Energy 8
Net Zero Energy Commercial Buildings by 2030 Energy Storage Develop infrastructure standards for plug in hybrid vehicles that charge off-peak and generate during peak periods Test the effectiveness of battery storage and power management products Consider 400 MW pumped storage facility Land Use and Energy 9
Plug In Hybrids and Battery Electric Vehicles Install 250 Battery Electric Vehicle charging stations Automate the entire process customer sets parameters Charge the batteries during off-peak periods based on price signals Sell energy based on a high price or for grid reliability Never let the charge fall below a pre-specified level Future V2G electricity sales and home energy storage Automakers not supportive of using batteries for grid stabilization 10-year warranty on smog equipment Land Use and Energy 10
PEV Market forecast for Sacramento 350,000.0 Total 300,000.0 PHEV 250,000.0 200,000.0 150,000.0 100,000.0 50,000.0 BEV 2010 2015 2020 2025 2030 PHEV Average BEV (CARB) Total PHEV+BEV Load becomes significant around 2025 Local distribution impacts will be felt sooner UCLA cluster analysis Need to manage load and meter for LCFS value PHEV Average Projection - Adjusted EPRI Model - CARB Model (Oct. 2009) - Charles River Associates Load Calculation Assume 50% of PHEV s at 1.5 kw charge level 25% of PHEV s at 3.3 kw charge level 25% of PHEV s at 6.6 kw charge level 100% of BEV s at 6.6 kw charge level Energy Calculation Assume 365 days a year of charging (worst case) PHEV require 7.5 kwh of charging/day BEV s require 15 kwh of charging/day Year PHEV BEV % Sac Load Energy 2015 9,225 1,045 0.3 35MW 53 GWh 2020 47,940 2,357 1.4 164MW 144 GWh 2025 148,108 16,322 12.2 566MW 495 GWh 2030 282,524 33,481 30.3 1,097MW 956 GWh 21 Demand Response Automate DR SMUD will provide 50,000 residential and small commercial customers with enabling technologies (such as home energy management systems) that allow them to participate in direct load control and pricing programs SMUD will work with medium and large commercial customers to provide technical assistance and enabling technology that allows them to automatically respond to peak prices by reducing load Benefits Provides customers with tools to manage their bills Reduces system peak Enables dynamic pricing options Land Use and Energy 11
Advanced Metering Infrastructure/Rates Enables time differentiated rates and critical peak pricing opportunities Enables communication with appliances and equipment for demand response Enables loading information and automation all along the supply chain Selected Silver Spring Network and Landis + Gyr meters 50k pilot installation under way AMI Business Case AMI Financial Benefits Credit 14% Billing 7% Meter Reading 52% Theft 9% Distribution 8% Metering 10% Land Use and Energy 12
Rates Discussion Current rates range in how efficiently they signal underlying costs Declining Block Rate Flat Rate Inclining Block Rate Time-Of-Use Medium Commercial Small Commercial 20 kw < < 300 kw Residential 1st Tier Users Residential Commercial > 300 kw Optional for other rates Worst Bad Fair Good TOU Rates Compared to Peak Profile $0.800 TOU Rates Approximate Average Summer Costs, But Not Critical Peak Days $0.700 SMUD Marg ginal Cost ($/kwh) $0.600 $0.500 $0.400 $0.300 $0.200 Peak Day Average Summer Weekday $0.100 $0.000 1 2 3 4 5 6 Off-peak Rate 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 On-Peak Rate Super-peak Rate On-Peak Rate Off-peak Hour Land Use and Energy 13
P Pricing Potential Alternative rate structures are better at matching costs $0.4000 Real Time Pricing $0.3500 Critical Peak Pricing with underlying Time-Of-Use Price $0.3000 $0.2500 $0.2000 $0.1500 Peak Day Weekend $0.1000 $0.0500 $0.0000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour Better Best Pricing Potential $0.4000 $0.3500 $0.3000 $0.2500 Critical Peak Pricing Price $0.2000 $0.1500 $0.1000 $0.0500 $0.0000 Off-peak On- Peak Super-peak On- Peak Offpeak Hour Land Use and Energy 14
Consumer Behavior Study SMUD will conduct a large-scale dynamic pricing study to test: Customer response to Critical Peak Pricing Customer preferences for information and messaging Ability of customers to reduce peak demand and energy using enabling technologies (such as programmable communicating thermostats) Customer acceptance and response to new technologies and pricing options 29 Distribution Automation SMUD will implement a comprehensive package of distribution system automation controls and systems to: Expand SMUD s supervisory control and data acquisition iti (SCADA) system Install intelligent switching and monitoring equipment Implement an advanced Distribution Management System (DMS) Demonstrate the interoperability between the energy management system (EMS), outage management system (OMS), the DMS and AMI Benefits Improved system efficiency Reduced operations and maintenance costs Improved reliability Land Use and Energy 15
310 kw field demonstration of CEC/CERTS Microgrid for central utility plant to demonstrate: Real world performance To Utility Service Allow our central plant and Field Reporting Facility to operate independently of the grid Facility Maintenance Shop 3-100 kw natural gas-fired engines + 10 kw PV system Waste heat from engines will provide additional energy efficiency by reducing the need for boilers and providing chilled water for air conditioning (absorption chiller) Field Reporting Facility 10kW PV Fast Switch Boiler and Chiller Room Central Utility Plant TecoGen Units Cooling Towers Thermal Energy Storage Tank Autonomous local l control for fast events (No central controller) Economic value to customers and utility Microgrid Boundary AC Electrical Absorber b Chilled Water Hot Water DC Electrical Numerous technical challenges will be evaluated Construction in 2009, operational in 2010 Cyber Security SMUD s smart grid will enact security programs and procedures that meet or exceed government mandated standards This is a continuation of SMUD s current best practices with increased resources to support smart grid initiatives Land Use and Energy 16
Where We Are Today Moving forward with the Smart Meters project: Communication network 96% complete 40,000 meters installed 95% customers satisfied with installation Working with DOE to negotiate a final grant contract Meeting with equipment and software vendors to determine technology landscape Purchasing and testing equipment to determine what will be deployed Conclusions SMUD is committed to implementing Smart Grid and is working with EPRI on the statewide smart grid roadmap sponsored by PIER Smart Grid will improve the grid through: Better load management through demand response and energy storage Improved customer participation through Home Area Networks and utility programs Reduced loads due to innovative rate structures Automation of the distribution system Improved home and commercial building performance by moving towards net zero energy Improved reliability through implementation of distributed generation and micro grids There is no silver bullet. Smart Grid promotes the silver buckshot approach working on multiple strategies simultaneously energy efficiency, renewables and DG, distribution automation, energy storage, demand response, generation efficiency, AMI and rates to maximize benefits Land Use and Energy 17