Experience in Smart Grid Development in the United States

Presented at the APEC Energy Working Group Washington, DC

Dan Ton 4/30/2020 www.oe.energy.gov

National Academy of Engineering - BMED

Outline



Smart Grid Landscape in the U.S.



Smart Grid Development by the U.S. DOE

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Recovery Act Smart Grid Programs

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Smart Grid R&D Program

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International Smart Grid Action Network (ISGAN)

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The North American Electric Grid U.S. Figures 22% of world consumption

3,200 electric utility companies 17,000 power plants 800 gigawatt peak demand 165,000 miles of high-voltage lines 6 million miles of distribution lines 144 million meters $1 trillion in assets $350 billion annual revenues December 2008

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Key Drivers Toward Future of Electric Grid

2009

• • • • • •

51% coal 19% nuclear 20% natural gas 3% oil 6% hydro 1% other renewable

• • •

3653 billion kWh Hybrids, No PEVs Electrically-sensitive equipment (limited consideration – PQ)

• • • •

140 control areas Energy management systems (<1%) 180,000 miles of wires ~10 million DG units

• • •

Blackouts Aging infrastructure Vulnerability of assets

• •

Changing Supply Mix

Expanding transmission Increasing system flexibility needs

• • •

Demand Transformation

Expanding digital economy Demand-side management Demand growth

• • •

Complexity of Grid

Expanding footprint Overlay of markets Operating “closer to the edge”

Vulnerability of Energy

• •

Infrastructure

Interdependencies of electric and energy systems Communications & controls 2035

• •

More natural gas More renewables

• • •

Same or less coal Same or less nuclear Same or less oil

• • • •

More than 5000 billion kWh Load curves – increased peaking PEVs (could increase demand 25%) More electrically sensitive equipment (2.5x)*

• • • •

Nodes within control area increase 5-10x Energy management systems (70%) Additional 30,000 miles needed ~ 22 million DG units (2.5x increase)

• • • •

Infrastructure protection Increased globalization Materials and resource limitations All-hazard risks will continue to increase December 2008

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Smart Grid Focus

Generation

Cleaner generation technologies

Smart Grid Domain Transmission

Accessing high quality sources of renewable energy and addressing line congestion

Integration of renewables: improved operation, planning, etc.

Distribution

Accommodating increased use of EV, PV, DG, and consumer participation Seamless connection: two-way power flows and increased data streams

End User

Improved efficiencies in buildings and industry Interface with end users: deployment of AMI, microgrids, etc.

System understanding and control: visualization, communications, computation System flexibility for stability: storage, demand response, accommodating increased variability System security: physical security, cyber security, mitigating increased vulnerabilities Institutional issues/solutions must be considered in conjunction with these technology needs

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DOE Smart Grid Implementation Plan

Vision A smart grid that uses digital technology to improve reliability, security, and efficiency (both economic and energy) of the electric system from large generation, through the delivery systems to electricity consumers and a growing number of distributed-generation and storage resources Enables Informed Participation by Customers Accommodates All Generation & Storage Options Smart Grid Characteristics Enables New Products, Services, & Markets Provides Power Quality for the Range of Needs Optimizes Asset Utilization & Operating Efficiency Operates Resiliently to Disturbances, Attacks, & Natural Disasters Advancing Functionality with New Technologies Building a Strong Business Case for Smart Grid Investment Smart Grid Demonstrations and Deployment Research and Development

Source: Office of Electricity Delivery and Energy Reliability

Smart Grid Challenges Developing Appropriate Standards for Interoperability Forecasting Consumer Participation in Energy Management Standards Key Activities Interconnection Planning and Analysis Workforce Training Enhancing Cybersecurity Stakeholder Engagement and Outreach Sustaining a Skilled Workforce Monitoring National Progress December 2008

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Smart Grid Investment Grant (SGIG)

Deploying technologies for immediate commercial use supporting manufacturing, purchasing, and installation of smart grid technologies Customer Systems Advance Metering Infrastructure Electric Distribution Systems Electric Transmission Systems Equipment Manufacturing Customer Systems Customer Systems Customer Systems Customer Systems Customer Systems

•

Displays

•

Portals

•

Energy management

•

Direct load controls

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Smart meters

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Data management

•

Back office integration

•

Switches

•

Feeder optimization

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Equipment monitoring

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Energy storage

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Wide area monitoring and visualization

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Synchrophasor technology

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Energy storage

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Energy devices

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Software

•

Appliances 99 projects, $3.4B Federal + $4.6B Private Investments December 2008

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Smart Grid Demonstration Program (SGDP)

Demonstrate emerging technologies and alternative architectures to validate business models and address regulatory/scalability issues Grid-Scale ES Applications Smart Grid Regional Demonstrations

• Large Battery Systems (3 projects, 53MW) • Compressed Air (2 projects, 450MW) • Frequency Regulation (20MW) • Distributed Projects (5 projects, 9MW) • Technology Development (5 projects) • 12 AMI • 10 PEV charging points • 10 HAN • 9 In-home displays • 9 SCADA improvements • 8 Energy storage • 8 Distribution automation

32 projects, $620M Federal + $980M Private Investments December 2008

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Smart Grid Interoperability Standards

NIST Smart Grid Interoperability Standards Program

Published Interoperability Framework and Roadmap, Release 2, in Feb 2012 • Added 22 standards, specifications, and guidelines to the 75 previously recommended as immediately applicable • Expanded cyber security and product testing guidance • Expanded discussion of Smart Grid architecture • New framework for testing conformity – the Interoperability Process Reference Manual Launched the Smart Grid Interoperability Panel (SGIP) • Public-private partnership created in Nov. 2009 to coordinate standards developed by Standards Development Organizations (SDOs) including IEC, ISO, ITU, IEEE, … • >700 member organizations (>1,800 individuals) • Open, public process with international participation

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DOE Analytical Approach

What are Smart Grid technologies?

What does the Smart Grid do?

How does it do that?

What “goodness” results?

What is the goodness worth?

Assets Functions Mechanisms Benefits Monetary Value

•

Capacitor controls

•

Distribution Management System Automatic Voltage and VAR Control Improves feeder voltage regulation Reduced feeder losses worth $60 per MWh $6000 December 2008

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DOE Smart Grid Computational Tool (SGCT)*:

Tracking Grid Modernization Goals and Calculating the Value of Specific Benefits

Deployment of Smart Grid Technologies

• 15.5 million smart meters • 800 Phasor Measurement Units • 6,500 Distributed Circuits

Economic Benefits

• Reductions in monthly bills for customers with smart meters and enabling

technologies

• Reductions in peak demand translate to less generation capacity required • Reductions in operating costs for distribution circuits with automated equipment

Reliability Benefits

• Reduction in length of power outages • Reduction in frequency and geographic scope of power outages

Environmental Benefits

• Reductions in energy wasted (line losses) in distribution circuits • Reduced emissions of CO

2 , NO X , and SO X associated with electricity consumption of customers with smart meters and enabling technologies

*Available for download at http://www.smartgrid.gov/recovery_act/program_impacts/computational_tool

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OE Research & Development Program Program Areas

Clean Energy Transmission and Reliability  Transmission Reliability and Renewables Integration  Advanced Modeling Grid Research Smart Grid  Smart Grid R&D  Power Electronics Energy Storage Cybersecurity for Energy Delivery Systems

Goals

Develop advanced monitoring, control, and computational applications to reliably operate the US transmission system.

Develop advanced digital technology for applications at the distribution level to achieve self-healing from grid disturbances and full customer participation and choice in load management.

Develop new and advanced energy storage technologies that will enhance the stability and reliability of the future electric grid.

Develop resilient energy delivery systems that can survive a cyber incident while sustaining critical functions.

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Smart Grid R&D Program

Dollars in Thousands

FY 2011 FY 2012 23,000 19,924

Promotes development of an efficient, fully integrated “smart” grid through the adaptation and integration of digital information and communication technologies into the Nation’s delivery system.

electricity * MYPP available at:

http://www.smartgrid.gov/sites/default/files/oe_mypp.pdf

Guided by MYPP* focusing R&D on:

› DER/DR/PEV integration › Distribution automation › Microgrids › Standards & best practices •

Plus crosscut efforts on:

Communications and Outreach (incl. support of the President’s Green Button Initiative)

December 2008

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Renewable and Distributed Systems Integration (RDSI)

    9 demonstration projects in 8 states to integrate use of DER to provide at least 15% peak demand reduction on distribution feeder or substation Projects are either microgrids or are developing technologies that will advance microgrids Systems must be capable of operating in both grid parallel and islanded modes $55 million of DOE funds over five years (total value of awards will exceed $100 million, including participant cost share) 100%

90%

80%

75%

60%

Lower Peak Demand Reduces Infrastructure Investments

40% 5% = ~400 hrs/yr 20% 0% 0% 5% 20% 40% 60%

Percentage of Year

80% 100%

25% of distribution & 10% of generation assets (transmission is similar), worth 100s of billions of US dollars, are needed less than 400 hrs/year!

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PEV Integration

FY 2011 Smart Grid-Capable EVSE FOA

 Reduce current costs of commercially available EVSE (residential and non-residential), with smart grid capabilities, by 50% in 3 years  Key features: Bi-directional communications; Human machine interface for applications to provide local user input/output; PEV load management & smart controls; Conformance to interoperability, cyber security, and safety standards Source: Transforming Global Markets for Clean Energy Products, IEA (2010) Four awards announced in December 2011 (Total value: $10.8M over 3 years, with $6.8M from DOE)

December 2008

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Distribution Automation – FY 2010 FOA Awards

Advanced Communications and Controls

On-Ramp Wireless: Develop a wide area wireless distribution grid sensor and faulted circuit indicator system capable of monitoring underground and other hard‐to‐reach distribution circuits ABB: Develop a real-time distribution feeder performance monitoring, advisory control, and health management system for enhanced asset utilization and grid reliability

Integrated Distribution Management System

Seamless integration of AMI & demand response, customer-owned DER, fault location, isolation, & restoration, volt/VAR control, & dynamic reconfiguration for distribution automation − Boeing Distribution Management System − Alstom’s e-terra integrated distribution management system

December 2008

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Green Button Data and Information Tools

Allow consumers to download standardized data file by clicking online “Green Button” to view their energy use information and send to 3 rd parties for value-added services

7 awards announced in May 2012 to demonstrate and adopt information tools to allow consumers to better manage energy use 20 utilities committed to provide Green Button data access to 31 million customers (as of May 2012)

Standard EUI File Format

7 Green Button Apps for Energy awards announced in May June 2012 to get the most out of Green Button data

Value-added Services December 2008

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Outyear Smart Grid R&D Funding Opportunity Area, Pending Funds Availability Microgrid Development

• RD&D to reach 2020 targets on costs, reliability, system energy efficiencies, and emissions, as defined at the August 2011 DOE Microgrid Workshop • Definitization of RD&D priority and technology performance specifications to be discussed at the July 30-31, 2012, DOE Microgrid Workshop

December 2008

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ISGAN: What and Why

A mechanism for bringing high-level government attention and action to accelerate the development and deployment of smarter electricity grids around the world.

• •

ISGAN…

Fulfills a key recommendation in the Smart Grids Technology Action Plan (released by Major Economies Forum Global Partnership, 2009) Was launched as one of 11 initiatives under the Clean Energy Ministerial (in 2010) • Is organized as an IEA Implementing Agreement (in 2011) • • • • 22 signatory member nations (as of August 2012) Six annexes established, with the U.S. leading on Annex 1 Builds on the momentum of and knowledge created by the substantial smart grid investments being made globally February 24, 2012 Will leverage cooperation with the Global Smart Grid Federation and others

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12 CEM Initiatives

International Smart Grid Action Network Super-Efficient Equipment and Appliance Deployment Initiative Electric Vehicles Initiative Bioenergy Working Group Carbon Capture Use and Storage Action Group Clean Energy Education and Empowerment Women’s Initiative Clean Energy Solutions Centers Global Superior Energy Performance Partnership Multilateral Solar and Wind Working Group Solar and LED Energy Access Program Sustainable Development of Hydropower Initiative 21 st Century Power Partnership (new in 2012) December 2008

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ISGAN Principal Focus Areas

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ISGAN Work Portfolio

Foundational Projects

Annex 1:

Global Smart Grid Inventory

Annex 2:

Smart Grid Case Studies

New Projects*

Annex 5:

Smart Grid International Research Facility Network (SIRFN)

Annex 3:

Benefit-Cost Analyses and Toolkits

Annex 4:

Synthesis of Insights for Decision Makers**

**Knowledge sharing by design Annex 6:

Power T&D Systems

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Linkage Among Annexes 1-3

Annex 1:

Global Smart Grid Inventory

Annex 2:

Smart Grid Case Studies

Annex 3:

Benefit-Cost Analyses and Toolkits

• • Identify national drivers and tech preferences Select projects with strong opportunities for int’l comparison • Qualitative assessment of selected projects (narrative) • Quantitative assessment of selected projects

Common projects for assessment/analysis Common contextual information, metrics, and KPIs

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SIRFN Interests

Renewable Energy/ Distributed Energy Integration Building Automation Electric Vehicle Integration Microgrids

6 Key Areas

Distribution Automation Cyber Security December 2008

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ISGAN Schedule

Week of 26 March 2012 Mexico City, Mexico

March 26-27 – Joint IEA/ISGAN Workshop: “Smart Grids in Distribution Networks: How2Guide drafting workshop” March 28-30 – ISGAN 3 rd Executive Committee meeting

25-26 April 2012 London, UK

Third Clean Energy Ministerial

21 May 2012 Bregenz, Austria

ISGAN Workshop on PV integration in distribution systems (with IEA PVPS; part of Austria Smart Grids Week 2012)

18-19 June 2012 Milan, Italy

ISGAN Annex 6 workshop on interactions between T&D systems

Week of 24 Sept 2012 Nice, France

ISGAN ExCo meeting, workshop(s), and technical visits

3 December 2012 Berlin, Germany

ISGAN Workshop on SIRFN (as part of 5 th Resources) Int’l Conference on Integration of Renewables and Distributed Energy

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ISGAN Management & Resources



ISGAN is managed by its Executive Committee

– – Consists of representatives of all Participants Meets semi-annually; Next meeting: France, September 2012 

ISGAN is supported by a Secretariat at the Korea Smart Grid Institute

– Email address: [email protected]

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ISGAN website: iea-isgan.org

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CEM website: cleanenergyministerial.org

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Smart Grid Information Resources

Smart Grid Information Clearinghouse

o o Smart grid project summaries (with focus on non-ARRA projects), use cases, and business cases for the U.S. and internationally >200 & >50 smart grid projects in the U.S. and overseas; >1,000 smart grid-related documents and multimedia (use cases, c/b analyses, business cases, legislation & regulation, standards, and technologies)

Smartgrid.gov

o o ARRA smart grid project summaries and other Federal program activities Reporting of ARRA SGIG & SGDP projects (progress, metrics and benefits, consumer behavior studies) and provision of analysis results to the public

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Contact Information

Dan T. Ton Program Manager, Smart Grid R&D Office of Electricity Delivery and Energy Reliability U.S. Department of Energy (202) 586-4618 [email protected]

For more information: OE: www.oe.energy.gov

Smart Grid: smartgrid.gov

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