Transcript Slide 1

What makes for a Smart Utility?
Presentation at Advanced Energy 2012
October 31st, 2012
Mani Vadari
Modern Grid Solutions
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Traditional Utility
Regulatory
Environmental
Organization
Utility
Transformation
Customer
Business
Technology
Operations &
Process
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Transformed Utility
Key Dimensions of Utility Transformation
Utility TransformationAn Evolutionary Process Analogous to a Feedback Loop
Smart Grid
Drivers
+/-
Disruptive
Technologies
+/-
+/-
Utility
Transformation
Process
Desired Utility
Transformation
Characteristics
+/-
Retail
Choice
Disruptive Business
Models/Processes
Key Points:
 The Smart Grid drivers impact various aspects/dimensions of a utility via the transformation process.
 Factors such as disruptive technologies and retail choice can have a positive or negative impact on the
transformation, depending on the specific utility and its processes.
 The utility transformation process when applied in a phased manner to all dimensions of the utility, will lead to the
achievement of some desired characteristics of a transformed utility.
 However, the utility will continually need to take into account disruptive business models/processes that can have
an amplified effect on the desired end-state, and adjust its transformation process accordingly.
 Transformation is an evolutionary process and its adoption will put the utility on the path to the Smart Grid.
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Transformed Utility-Integrated Utility System
Picture Source: GTM Research
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Smart Grid Implementation MethodologyA Process for Building the Utility Business Case that address all aspects of
the Utility’s Business and not just Technology
Utility Smart
Grid Vision
Desired
Future State
Assessment
Current State
Assessment
Gap
Analysis
Business Case
Set of
Solutions
Optimization
Finalization of
Business Case
& Roadmap
Implementation
Plan
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Source: Adapted from NETL
Smart Grid Technology Progression: 2012-2030
AMI
Intro
CS
R&D
DR
Intro
DMS/DA
Intro
2012
Growth
Intro
R&D
Source: Adapted from Zpryme
Growth
Intro
R&D
ICT
Growth
Intro
R&D
DER
Maturity
Intro
R&D
AO
Growth
Growth
R&D
TA
Maturity
Growth
Growth
Intro
2015
Growth
2020
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2025
2030
Smart Grid Roadmap:
We believe that the Smart Grid marketplace will evolve into full adoption based on
changing market drivers and availability of cost-justified @Scale technology
Market Drivers
Market redesign
Integrate Distributed Energy
Optimize the grid and Sweat assets
Incremental change w/known technologies - Happening and predictable
Smart Grid Experiments
Playing around – Happening and predictable
2010
2012
2015
2020
Smart Grid Experiments
2030?
Optimize the grid and sweat assets
• Patch work and fragmented subsidy, incentive or regulatory support - Big focus
ARRA funding
• Economically sound technologies (mostly on utility side of meter) deployed
without special regulatory or subsidy support (e.g. IVVC, DA, PMUs, IEDs)
• Patch work implementation, synergistic benefits not realized
• Efficiency drives deployment of technologies where the rising price of power
make the business case sound
• Integration and interoperability barriers prevent realization of full potential of
smart grid technologies. Standards for devices and device interoperability will
be established but fragmented without economy of scale
• Some technology, business and policy "winners" and some "losers"
• Regulatory support for proven smart grid technologies widespread
• Integration, interoperability and optimization of leading smart grid technologies
demonstrated and deployed through use of standards
• Consumer behavior and program participation and benefits will be better
quantified and understood
• PMUs in place in T, new for D.
• Aggregators (e.g. Comverge) arriving on scene
• AMI penetration increasing – customer focus/DR is increasing.
• Focus is on AMI implementation
• Aggregators gaining critical mass
• Key focus on reliability enhancement, grid optimization, demand response
• Operations focus on (DMS/OMS) and single source of model (GIS) is key.
• AMI Meter
• Private wireless
• PHEV/PEVs @scale
• Public wireless (Cellular?)
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Smart Grid Roadmap:
While waves 1 and 2 are more predictable from a technology direction perspective, waves 3 and 4 are
more unpredictable both from extent and timing perspective because of too many unknowns in policy,
regulatory directions, and availability of economically feasible @scale technology
Market Drivers
Market redesign
Depends on national energy policy
and regulatory directions
Integrate Distributed Energy
Depends on storage and renewables breaking
reliability and economic barriers
Optimize the grid and Sweat assets
Smart Grid Experiments
2010
2012
2015
2020
Integrate Distributed Generation, Storage, Active Demand Response etc.
2030?
Market Redesign
• Policy and regulatory drivers provide price signals that make customer sited DG • Electrical grid supports two way power/information flow and is produced and
cost competitive
consumed at several nodes and energy/capacity priced@real time
• Storage breaks $500/kWh barrier and is widely deployed by C&I customers for
load leveling and backup power
• Significant in-roads by storage and renewable energy. Distributed Generation
at 10% of total energy generation and dispatchable using digital control
technologies
• Renewables become widely deployed due to national RPS and low capital costs.
• C&I customers buy and sell energy/capacity both in advance and real time to
• PHEVs/PEVs reach 15% penetration and provide backup power and demand
optimize a variety of constraints
reduction with smart grid technologies
• Utility portfolio combines traditional gen, renewables, DR and storage
• Residential DR with dynamic energy products and pricing options commonplace
• Key grid focus is on self-healing grid and real-time analytics and optimization
• Core utility focusing on wires and reliability, aggregators servicing customers
• Full retail choice everywhere
• Customer fully engaged – DR is in
• High visibility/controllability in T and D – self-healing grid appears on horizon.
• Residential energy services integrated with other digital services like cellular,
entertainment, automotive, home automation, security and health services.
• Storage @scale
• V2G prevalent @scale/Adv storage
• Renewables @scale
• Adv materials – superconductors, advanced transformers, and cdv controls
(Distribution PMUs) prevalent
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