© 2008 Eventure Events. All rights reserved.© 2008 Eventure Events. All rights reserved.

The Paths to a Smart Grid The Scouts at SDG&E

Terry MohnSan Diego Gas & Electric

a Sempra Energy utility

Outline

SDG&E service territoryWhy look at smart grid

• Defining a smart grid• Three paths to a smart grid

SDG&E projects• Building a business case• Keep costs down, adds reliability• Consistent architecture• Systems view• Technology refresh• Introduction of SOA leads to new business system choices• How to avoid vendor lock-in and technology obsolescence• Communication network is a corporate strategic investment

How you too can build a regional smart grid

SDG&E Service Territory

Sempra Utilities

Combined Service Areas

• Largest energy utility customer base in US with over 7.6 million meters serving 29 million customers

• 13 counties

• 233 municipalities

• 22 million population

• 6.7 million residential households

• 325,000 small commercial &industrial customer accounts

• 1,600 large commercial &industrial accounts

Why Look at Smart Grid

Supports the Environment

• Enables renewable and clean energy

• Enables Vehicle to Grid interface– Electric Vehicles– Plug-in hybrid Electric Vehicles

• Reduces spinning reserves• Supports alternative energy supplies

(reduces dependence on foreign oil)• Supports customer• choice (photovoltaics)

Energy Prices

Forward electricity prices are a straightforward signal of anticipated price pressures this summer. The map illustrates recent key summer 2007 forward electricity and natural gas prices. In all, markets are signaling double-digit electricity price increases this summer over last, with natural gas as a clear driver. - FERC 2007 Market Oversight

Energy Demand Growth

• Total electricity sales are projected to increase from 3,660 billion KWhr in 2005 to 5,168 billion KWhr in 2030.

• The largest increase is in the commercial sector, as service industries continue to drive growth.

• Electricity sales are strongly affected by the rate of economic growth.

DOE Report, May 2007

Defining the Smart Grid

A Smart, Integrated Grid

• Detects and fixes emerging problems

• Incorporates measurement, diagnostics and feedback

• Re-routes power flows

• Enables loads and distributed resources

• Incorporate advances in IT and communication technologies

Characteristics

• Self-healing– A grid able to rapidly detect, analyze, respond and restore from perturbations.

• Empower and incorporate the consumer– The ability to incorporate consumer equipment and behavior in the design and

operation of the grid.• Tolerant of attack

– A grid that mitigates and stands resilient to physical and cyber security attacks.• Provides power quality needed by 21st century users

– A grid that provides a quality of power consistent with consumer and industry needs.

• Accommodates a wide variety of generation options– A grid that accommodates a wide variety of local and regional generation

technologies (including green power).• Fully enables maturing electricity markets

– Allows competitive markets for those who want them.• Optimizes assets

– A grid that uses IT and monitoring to continually optimize its capital assets while minimizing operations and maintenance costs.

Technologies

• Grid-wide integrated communications– Internet for the power grid

• Sensing, metering, measurement– Digital two-way communication devices– Enable generation connect and disconnect– Enhance operator information

• Advanced control capabilities– Computer based grid monitoring – Enables dispatch of distributed resource

• Advance grid components– Energy storage– Distributed generation

• Decision Support– Analytics to guide grid operators– Semi-autonomous agent software

Three Paths to a Smart Grid

Three Paths to Starting a Regional Smart Grid

• Organic – business as usual– Huge capital expenditures as assets retire– New technologies lead to declining costs

• Utility of the future– Spread costs across several projects

• Smart Meter– Communication infrastructure is key– Digital electric meters are also sensors

Smart Grid – It’s a Concept, Not a System

• Interactive with Consumers and Markets• Adaptive• Optimized to make best use of resources• Predictive rather than reactive to prevent

emergencies• Accommodates a variety of generation

options• Integrated

– merging monitoring– control– protection– maintenance

• Secure from attack

Smart Meter - It’s More Than Meters, It’s Foundational

• Digital Meters – Data storage– Calibrated– Upgradeable Software– Bi-directional, secure communication– “near” real-time rates and energy

measurement• Remote connect and disconnect• Home Area Network• Designed for distribution automation,

distributed generation, autonomous islanding

• Net metering for consumer generation choices

– Hydrogen– Solar– Electric vehicles

• New utility applications – OMS, DMS, GIS, ERP, SOA

• Fiber and wireless everywhere – transmission and distribution

• Blurring the lines between IT and Electric T&D

Smart Home - It’s Consumer Choice

• Alignment with Renewable Energy, Demand Response & Energy Efficiency Goals

• Infrastructure, tariffs, programs & services • Energy usage measurement protocol • Educate customers about

– Pricing & the time varying nature of the cost of energy – Actions that can be taken to impact usage & lower energy bills – The environmental benefits of reducing energy usage &

renewable energy• Requires an Interactive Customer Interface for

information & resources – A universal platform (open architecture) – Technology that utilizes smart meter / HAN

SDG&E Smart Grid Projects

• AMI, or Smart Meter with Smart Homes• Utility of the Future, or Operational Excellence• Planning for the future, or R&D

SmartGeneration

SmartEnd Use

SmartGrid

Centralized Distributed

Baseload

CHP

Peaking

Critical / Backup

Remote Power

Smart Storage

Transmission Distribution

Asset Management

Back Office Software

Load Management

Advanced Metering

Energy Mgmt Systems

Power ElectronicsCommunications

& Control

Site Planning& Design

Grid Monitoring

Grid Automation

Residential

Small Appliances

Commercial / Industrial

Smart Meters & Devices

Energy Consulting& ESCOs

Building Automation

Smart Energy

Computers, Electronics, Advanced Materials

Elements of Our Smart Grid

Smart Home

Smart Grid

Smart Meter

SDG&E Smart Grid

• Developing distributed energy resources (DER) integration, enabling renewable and clean energy development. Distributed generation (DG) system can provide benefits to utility operations and customers and to introduce alternative service solutions for providing safe and reliable energy.

• DG systems, a subset of DER, are a wide range of electricity generating technologies

– solar photovoltaics – small wind turbines– fuel cells– natural gas microturbines– internal combustion engines– Combined Heat and Power (CHP)

• Developing integration technologies to support Vehicle to Grid interfaces, grid frequency regulation (to match small differences in load and generation profile), and reduction in spinning reserves (standby resources that are required to come on line in case of an emergency).

• Deploying foundational advanced smart metering infrastructure

SDG&E Smart Meter

• Smart metering uses a new meter and communications system to remotely send energy use information.

• It also allows the utility to securely communicate with the meter and send customers information about energy usage and corresponding price information.

SDG&E Smart Home

• Designed for two-way information flow– New services could be added– Require WAN high-speed communications

• Home area network (HAN)– Open industry standards, non-proprietary, inter-operability– Working with the other CA IOU’s– Secure means of sending information between utility and end

points (tolerant of attacks)

• Communications infrastructure supports long-term vision to collect:– Power quality information– New sensor data for smart grid, building automation designs– Grid state (monitoring, automation)

Technology Refresh

Primary Program Areas

Field Force • Real-time scheduling and dispatch (e.g. re-route on the fly)• Automated work order administration to reduce paperwork• Mobile data/information available at job site

Asset Management • Enterprise Geographic Information System Platform• Outage and Distribution Management Systems (SDG&E only) with real-time monitoring• Asset Management System with predictive maintenance ability

Customer Care• Enhanced internet self-service options • Voice recognition IVR system and optimized call routing• Outbound dialing to notify customers of arrival time

IT Infrastructure• New and upgraded network hardware to support increased voice/data communications

requirements• Improved software integration platform to more efficiently interface business

applications• Improved security features, such as encryption and authentication, to support the

increase in networked devices (e.g., Mobile Data Terminals, sensors on Transmission & Distribution infrastructure, etc.)

SmartMeters

FAST

Smart Grid

GIS

OpEx 2020

OMS/DMS

CBM

Smart Grid and OpEx2020

Building a Business Case

SDG&E Business Case Procedure

• OMS/DMS• Distributed Generation• Grid Design• Conditioned-based Maintenance

OMS / DMS - Benefits

• Reduction in forced outages/interruptions• Reduction in restoration time• Reduced O&M due to predictive analytics and grid self healing• Reduction in peak demand• Increased integration of distributed generation resources and higher

capacity utilization• Increased security and tolerance to attacks / natural disasters• Power quality, reliability, and system availability and capacity

improvement due to improved power flow• Increased capital investment efficiency due to tighter design limits and

optimized use of grid assets• Environmental benefits gained by increased asset utilization

• Assumes AMI and GIS are implemented prior to project completion

Keep Costs Down, Adds Reliability

OMS/DMS Value Levers – Operator Productivity

Supporting Evidence

Min

ute

s

Improved Safety

Reduced Apprentice Training Time

Reduced Telephone and Radio Time

Reduced Data Entry

Checking/Review of Manually Written Switching Orders

Automated Outage Reporting

20

30

10

40

50

60

- Other Benefits -

• Operators manually direct field workers via phone/radio

• Outage reporting produced/reviewed manually by operators

60 min / day on average increased operator productivity

• No integration from SORT-OMS to enable real-time visibility to troubleshooter activities

• Operators field phone calls due to lack of visibility to outage and network related data

• Apprentice training involves many disparate systems

• Support staff double checks outage reports – 2 hours per day

• Switching orders produced manually• Afternoon shift re-checks orders created in the morning

- Other Intangible Benefits -

Reduced Support Staff (Outage Reporting)

• Switching plans are not suggested

• Safety can be improved through improved outage information

OMS-DMS Cash Flow

($30,000,000)

($20,000,000)

($10,000,000)

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Net Cash f low Cumulative Cash f low

Cash Flow – OMS / DMS

Consistent Architecture

Application Architecture

DG

Weather

Cal ISO

Supply Chain

Work Mgmt

Schedule & Dispatch

Mobile

TasksStatus

TasksWork & Inspection Data

MaterialAvailability

MaterialOrders

OMS

Data Historian(Pi)

CBM

EMS SCADA - T

DMS

CIS

SCADA - D

Financials

CommandsDataStatus & Outage Data

WorkRequirements

Meters Sensors

AssetProfile

Outage Info; Work Assignments

Smart Grid

Key

Asset / Field

Other Systems

Other

Systems View

Systems View

• The “Systems View” perspective takes a holistic and objective approach to a subject, including technical, economic, regulatory, political, and societal aspects.

• It includes the complete recognition of the power system as one integrated machine having many interdependent parts.

• It recognizes that solutions can come from a wide and diverse range of sources.

• A “Systems View” also takes account of the full range of costs and benefits to society associated with the provision of reliable power.

• Current State – Data IS NOT Easily Visible Across Operational Units

• Future State – Easily Visible Data Across Operational Units

Sharing Operational Data

A I S

O M S / D M S

G I S

C B M

• Like a puzzle, even when the information is visible – linking it together makes the difference

Asset Management Initiative

How to Avoid Vendor Lock-in and Technology Obsolescence

Enterprise Architecture

• A comprehensive set of principles, policies and standards used to align Information Technology (IT) assets with an organization's business processes to support the organization's overall strategy.

• An enterprise architecture describes and documents current and future (desired) relationships

• Answers basic questions like: What are the organization's business processes and how is IT enabling them?

Purpose & Process

• Align projects with Enterprise Architecture– Define structure and processes to improve consistency &

adherence to enterprise architecture and drive business value

• Establish a forum to evolve our Enterprise Architecture– Method to discuss and track architectural considerations early

in the process resulting in a united approach to solving enterprise requirements

– To increase awareness, understanding and agreement of activities and initiatives that have architectural implications

Introduction of SOA Leads to New Business System Choices

SOA is About Business Agility

• Adaptability & Speed– Abstracts underlying technology– Platform independence– Common language – consistent way of

communication, interoperability– Loosely coupled

• Each service fulfills a function independently• Services can combine to work together

– Common business meanings

• Requires higher level of efforts– Discipline and commitment

• Requires time to mature and to build critical mass– Availability of Business Services

Smart Meter Solution Architecture Context

MV90Meters

MV90 Head-End

Platforms

AMIHead-EndPlatforms

ExternalParties

Cu

sto

me

r We

b A

cc

es

sR

es

ide

nti

al

an

d C

&I

Cu

sto

me

rsC

&I

Cu

sto

me

rs Ins

talla

tion

Ve

nd

ors

RegulatorsInstallationApplications

Integration Platforms

EMF – (Web Services)

LegacyApplications

MDMSApplications

Data

SDG&E Enterprise

Operational Applications &

Monitoring

EDIX (SFTP/B2B)

ETL

SmartMeters

Marts

RegulatorsInstallationApplications

Operation Technology Vision with SAP Overlay

PlanningPlanning&&

AnalysisAnalysis(Limited)(Limited)

GraphicGraphicDesignDesign

WorkWorkSchedulingScheduling

WorkWorkManagementManagement

OutageOutageManagementManagement

MaintenanceMaintenance&&

InspectionInspection

MobileMobileWorkforceWorkforce

ManagementManagement

Customer Customer InformationInformation

SAP FinancialsSAP Financials

DataRepositories

DataRepositories

SAP MaterialsSAP Materials

MyINFO HRMyINFO HR

SCADASCADA AMIAMI

SynerGEESynerGEE

Doc MgmtDoc Mgmt

Crew Crew DispatchingDispatching

Data Data MaintenanceMaintenance

Data ViewingData Viewing(I.e. Web GIS)(I.e. Web GIS)

(Limited)(Limited)

TimekeepingTimekeeping

B.I. ToolsB.I. Tools

OSI PIOSI PI

SCADASCADA GISGIS

WMSWMSM&IM&I

Data WarehouseData Warehouse

SAP CapabilitySAP Capability

SAP PartnerSAP Partner

Non SAPNon SAP

LegendLegend

XIXI

Communication Network is a Corporate Strategic Investment

Utility Area NetworkNetwork / Telecommunications Infrastructure OverviewD

ata

Ce

nte

r / H

ea

de

nd

Su

bst

atio

n / A

gg

reg

ato

r

Tra

nsf

orm

er

/ Co

nce

ntr

ato

r

Ele

ctric

Me

ter / P

ort

al

Ho

me

De

vice

s / C

PE

Backhaulhigh capacity data link

WANw ide areanetw ork

LANlocal area netw ork

HANhome area netw ork

Microwave

Fiber Optics

WiMAX

Landline

BPL -- Medium Voltage

PLC -- Medium Voltage

Unlicensed Band

Licensed Band Bluetooth

Unlicensed Bands

PLC

BPL

WiMAX

PLC -- Low Voltage

BPL -- Low Voltage

LandlineLandline Landline

WiFi

Cellular

GatewayBPL Node

Poletop DeviceCollector

Electric MeterCable ModemDSL ModemBPL Modem

Gas MeterWater Meter

Smart ThermostatLoad ControllerHome Display

PCAppliances

PhoneTV

Satellite

ZigBee

CAT5 Cable

Wired:

Wireless:

Wired:Wired:

Wireless:

Wired:

Wireless

Medium Haulmedium capacity data link

Proprietary

CATV CATVCATV

Fiber Optics

Pager

WiFi

Commercial CarrierPrivate Tower

Network ManagementBack OfficeISP InterfaceApplication

# of Points IncreasingBandwidth Increasing

ZigBee

Unlicensed Bands

Cellular

Licensed Bands

Satellite

WiFi

Wireless:

Proprietary

Pager

WiMax

Fiber Optics Fiber Optics

Convergence

Summary: How You Too Can Build a Regional Smart Grid.

Smart Meter: Foundational

Smart Home

Smart Meter

DG; storage

Self-heal; Self-sense

Real-time Analytics

Intelligent Dispatch

Central Automated Operations

TODAY

FUTURE

Future Vision: optimize use of technology to

improve service to customers and

operational efficiency

Smart Grid

High Level Recommendations

Identify financial benefits and costs• To the business

– Rate Structure– Carbon Footprint– Reduced Congestion– Introduce Distributed Generation

• To society – not that easy for a utility– Reliability– Power Quality– Environment

• Capital projects• Research & development projects

Possible Next Steps

• Advanced metering infrastructure– Digital electric meters are also “SENSORS”– Regional communication system– Home area network

• Operational initiatives– Outage management system/distribution

management system– Condition based maintenance

• Feeder automation system technologies– Pilots of autonomous, automated switching

Questions?

© 2008 Eventure Events. All rights reserved.

Terry MohnTechnology Strategist, SDG&E

Vice Chairman, GridWise Alliance

tmohn@semprautilities.com