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Power to the People Renewable Energy for Underserved Communities Image Credits: blueEnergy Conference Sponsor: Networking Reception Sponsor: CAREER CENTER 1 Kurt Yeager Executive Director April 22nd, 2010 Center for Science, Technology, and Society Power to the People Kurt Yeager www.galvinpower.org Santa Clara University April 22, 2010 The Power System That Evolved in Late 19th Century to Provide Power to the Newly Invented Light Bulbs ……… 1879 - Thomas Edison Developed a “Practical Light Bulb” 4 Copyright © The Galvin Project. All rights reserved. Line crew of Niagara Falls Power Co. in 1895 …….. has Remained Essentially the Same as it Powers the Essential Services and the Digital Revolution in the 21st Century Powers the critical pumps that takes water out from New Orleans and makes drinking water in a water treatment plant Powers the communication towers and central telephone stations that are essential for the communication infrastructure Powers the essential life saving services in a hospital Powers the continuous process industries that are the life blood of an industrial society August 29. 2005: Power poles are pushed over in a flooded street after Hurricane Katrina 5 Copyright © The Galvin Project. All rights reserved. Powers the computers, servers, routers and the billions of power supplies that powers the digital revolution Key Issue to be Resolved Will the bulk electricity system evolve to become the critical infrastructure supporting the clean digital society of the 21st century, or be left behind as an industrial relic of the 20th century? 6 Copyright © The Galvin Project. All rights reserved. Forward to Fundamentals Electricity is the engine of prosperity and quality of life Electricity is a consumer service- based enterprise Technology can relieve cost pressures through elevation of electricity service value Realizing these opportunities requires transformation of the electricity infrastructure 7 Copyright © The Galvin Project. All rights reserved. Transforming the Electricity Grid for the 21st Century Electronically monitor & control the power system Integrate electricity & communications Transform meter into a two-way consumer services gateway Incorporate Renewable & Distributed Resources Reintroduce Direct Current (DC) Circuits/Microgrids Enable smart, efficient end uses 8 Copyright © The Galvin Project. All rights reserved. “If I asked people what they wanted, they said faster horses” Henry Ford Today Heard of the Smart Grid – 33% 9 Copyright © The Galvin Project. All rights reserved. How can the Smart Grid Improve Competitiveness and Create Jobs? Enable municipalities and utilities to improve the environment Provide residents access to lower carbon generation sources Enable municipalities to improve competitive value, esthetics and increase the overall value of real estate Enable municipalities and utilities to increase service reliability Improve safety and reduced economic losses Eliminate hidden reliability costs and attract 21st Century jobs Enable residents to manage costs Avoid higher priced peak electricity Protect residents from rising fuel and new capacity 10 costs Leverage off-peak electricity through dynamic pricing Generate revenue by providing ancillary services to Copyright © The Galvin Project. All rights reserved. Key Progress Findings Consumer-convenient “killer applications” are emerging and new players are entering Both the commercial and residential markets will become web-enabled and consumer controlled Widespread real-time energy management will significantly improve efficiency and reliability The electricity industry is transitioning to a demand-driven, dynamic-priced business 11 Copyright © The Galvin Project. All rights reserved. Unlocking Smart Grid Benefits Requires Intelligent Technology Intelligent Policy Empowered Consumers INTELLIGENCE = the ability to understand and deal successfully with new situations 12 Copyright © The Galvin Project. All rights reserved. SMART GRID POLICY IMPLICATIONS A Smart Grid is a transactive network, seamlessly connecting producers and consumers Price-responsive end-use devices enable autonomous consumer control: empowerment A Smart Grid requires looking beyond the regulated monopoly business model Remove barriers to competitive retail services Remove barriers to non-utility technology investments The result significantly increases both consumer and producer benefits 13 Copyright © The Galvin Project. All rights reserved. Testing Market-Based Customer Incentives in a Transactive Network Source: Kellogg Graduate School of Management, Northwestern University Copyright © The Galvin Project. All rights reserved. 14 Business Model Change A Smart Grid changes the utility business model from selling bulk dumb energy to smart, efficient, reliable services. 15 Copyright © The Galvin Project. All rights reserved. New Technology Opportunities Abound Set it, and forget it homes Hyper-Efficient Technologies Residential Heat Pumps Ductless Cooling Appliances Commercial VFC Cooling 16 Copyright © The Galvin Project. All rights reserved. VFC Cooling Data Centers The Micro Grid & Its Role in Helping Meet These Challenges Efficient Utility Building Communications 10% Systems Internet Renewables Consumer Portal 17% PV and Building EMS Dynamic Systems Distribution Operations 65% Advanced Control Metering Interface Control Plug-In Hybrids 17 Distributed Data Smart Generation Management End-Use and Storage Devices Copyright © The Galvin Project. All rights reserved. The Role of the Microgrid Optimize distribution performance and service value Seamlessly integrate electricity supply and demand Convert buildings from Power Pigs to Power Plants Provide the most user-friendly consumer empowerment Open the door to entrepreneurial innovation Enable local green enterprise zones 18 Copyright © The Galvin Project. All rights reserved. MicroGrid Concept IIT Perfect Power Microgrid Backup, solar, UPS 19 Copyright © The Galvin Project. All rights reserved. 8 MW Turbines Principles of a New Electricity Constitution Provide all Consumers with Time-of-Use Electricity Rates & Incentives Require Fundamentally Higher Distribution Reliability Standards Compensate Utilities Based on their Reliability, Efficiency and Customer Service Quality Eliminate Regulated Monopoly Restrictions On Intelligent Microgrids and Distributed Generation Establish Truly Competitive Retail Electricity Service Markets 20 Copyright © The Galvin Project. All rights reserved. Community Microgrid Leadership Examples Austin, TX Sacramento, CA Cheyenne, WY Ft. Collins, CO Leesburg, FL Naperville, IL New Mexico Smart Green Grid 21 Copyright © The Galvin Project. All rights reserved. Meet Sad Socket 22 Copyright © The Galvin Project. All rights reserved. ”In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all - security, comfort and freedom. When the Athenians finally wanted not to give to society but for society to give to them, when the freedom they wished for most was freedom from responsibility, then Athens ceased to be free.” Edith Hamilton 23 Copyright © The Galvin Project. All rights reserved. 24 Copyright © The Galvin Project. All rights reserved. Power to the People Renewable Energy for Underserved Communities Image Credits: blueEnergy Conference Sponsor: Networking Reception Sponsor: CAREER CENTER 25