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ENGR 100wF 2010Based on lecture byElizabeth VanDenburgh

Smart Grid – The Basics

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IEEE Video A Smart Grid for Intelligent Energy

Usehttp://www.youtube.com/watch?v=YrcqA_cqRD8

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Smart Grid – Is Happening Now!

“The nation that leads the world in creating a new clean energy economy will be the nation that leads the 21st century global economy.”

-- President Obama

“We'll fund a better, smarter electricity grid and train workers to build it -- a grid that will help us ship wind and solar power from one end of this country to another.” “Think about it. The grid that powers the tools of modern life -- computers, appliances, even BlackBerrys – looks largely the same as it did half a century ago.”

-- President Obama

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Smart Grid – Definition

“A Smart Grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost, and increase reliability and transparency.”

Smart grid. (2010, November 16). In Wikipedia, The Free Encyclopedia. Retrieved 06:00, November 17, 2010, from http://en.wikipedia.org/w/index.php?title=Smart_grid&oldid=397073903

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About Smart Grid

▫Smart Grid started in Europe ▫Now promoted by many governments to

address energy independence, global warming, and emergency resilience issues

▫Better supports distributed generation (enables a two-way energy grid vs. the historical one way grid)

▫Supports smart meters, smart appliances, and dynamic pricing

▫Will be needed to support PHEV (Plug-in Hybrid Electric Vehicles) and EVs

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Smart Grid – Examples

• In principle, the smart grid is (or will be) capable of routing power in more optimal ways to respond to a very wide range of conditions ▫ A transmission or distribution line is monitored remotely and a

“hot spot” is identified and a helicopter sent to a mountainous area to resolve issue

▫ A residential customer receives a pricing signal via her smart

meter → her home energy management system turns off all non-essential appliances and lighting and cycles essential appliances e.g., refrigerator

▫ An electric vehicle (EV) owner has a chip in his car. He is able to plug in anywhere and be charged to his home account

▫ EVs can act as a supply source and provide electricity to the grid during demand peaks i.e., at charging station they are asked to discharge electricity

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Customer Domain Detail

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Smart Grid Customers: Industrial, Commercial, Residential

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What is a Smart Meter?• A smart meter is an advanced meter that identifies consumption

in more detail than a conventional meter and communicates that information via a network back to the utility for monitoring and billing purposes▫ Could provide remote disconnect/connect, reduce load (via a price

signal), power outage notification and power quality monitoring▫ Smart meters are part of the Advanced Metering Infrastructure (AMI)

which would include the Meter Data Management System (MDMS)▫ Smart Meters or AMI may be part of a Smart Grid, but alone do not

constitute a Smart Grid

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Global Map of Automated Meter Infrastructure (AMI) Projects

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Smart Meter/Advanced Metering Infrastructure (AMI) Projects Across the World

• http://maps.google.com/maps/ms?ie=UTF8&hl=en&msa=0&msid=115519311058367534348.0000011362ac6d7d21187&ll=53.956086,14.677734&spn=23.864566,77.519531&z=4&om=1

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Why Do We Need the Smart Grid?Increasing electrical demand

▫ In contrast, California per capita usage ~level over the last 30 years (decoupling, utility programs e.g., rebate on your refrigerator), Flex Your Power program, awareness (pool pumps, air conditioning), distributed renewables, EnergyStar appliances, improved HVAC and more)

Worsening reliability of the electric grid ▫ 2003 saw a large blackout on the east coast▫ Significant business losses attributed to unreliable power

Inability to determine outages▫ Utilities do not know when outages occur until informed by customer

Aging infrastructure▫ Expected life of electric transformers → 40 years ▫ Average electric transformer has been operating 42 years

Reduction of greenhouse gases▫ 40% of U.S. carbon dioxide emissions are from electric grid with an additional 20%

coming from transportation

Improved Customer Information▫ Customers can obtain interval (hour, 15 min.) energy usage▫ Enables dynamic pricing▫ Provides the infrastructure and time of use (TOU) pricing to enable PHEV (Plugin

Hybrid Electric Vehicles) and EVs (Electric Vehicles) at homes

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Why Do We Need the Smart Grid?Environmentally Responsible

▫ Desire to reduce dependency on oil, need to have two-way supply capability for renewables such as solar, wind, and tidal

Need for Improved Storage, and Delivery▫ Better able to integrate, coordinate, and optimize storage▫ Improve and optimize transmission and distribution operations▫ Current operation has 3-5% loss of electricity every 100 miles; can

work to reduce that to 1% every 100 milesReduce and Address Congestion Issues

▫ Lessen transmission congestion in parts of the U.S.Improved Service and On-going Maintenance

▫ Electronically enables certain activities formerly done via service call e.g., connect and disconnect customers

▫ Lack of significant investment for the last 25 years at utilitiesBetter Security

▫ Today’s centralized grid is open to attack▫ Able to implement physical and cyber security

Creates jobs▫ Aging workforce: retiring with the knowledge and nuances of the

mechanical work place▫ Important opportunity to train people in future careers

Theft and fraud detection▫ Ability to monitor, identify and mitigate fraud and theft of electricity

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Governance of Smart Grid – Federal and State

FEDERAL• Federal government - Congress

▫ Can pass laws, usually working with the Department of Energy

• Federal Energy Regulatory Commission (FERC)▫ U.S. federal agency with jurisdiction over interstate electricity

sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates i.e., national perspective

STATE• State governments can pass laws via state legislature• Executive orders by governors

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Governance of Smart Grid – Regional• Independent System Operator (ISO)/ Regional Transmission

Operator (RTO)▫ Organization formed at the direction of the FERC. ▫ An ISO coordinates, controls and monitors the operation of the electrical

power system, usually within a state, but sometimes encompassing multiple states.

▫ A Regional Transmission Operator (RTO), similar to an ISO, coordinates, controls and monitors an area that crosses state borders.

• Currently eight ISO's operating in North America:▫ Alberta Electric System Operator (AESO) ▫ California ISO (CAISO) ▫ Electric Reliability Council of Texas (ERCOT), also a Regional Reliability

Council ▫ Independent Electricity System Operator (IESO), operates Hydro One

transmission grid for Ontario, Canada ▫ ISO New England (ISO-NE) ▫ New York ISO (NYISO)

• Currently four RTO's operating in North America:▫ Midwest Independent Transmission System Operator (MISO), an RTO

despite ISO in its name ▫ ISO New England Inc. (ISO-NE), an RTO despite the ISO in its name ▫ PJM Interconnection LLC (PJM) ▫ Southwest Power Pool (SPP), also a Regional Reliability Council

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Governance of Smart Grid – State and Local Governments/Cooperatives

• State Public Utility Commissions (PUCs)▫ PUCs are state governing bodies that regulates the rates and

services of utilities within that state.

• California Public Utility Commission (CPUC)▫ For electric and natural gas utilities, only governs

Private/Investor Owned Utilities (IOU) traded on a public stock exchange: PG&E, So. Cal Edison, SDG&E and So. Cal Gas.

▫ CPUC also regulates water and telecommunication services▫ Publicly owned utilities include cooperatives (owned by

customers) and municipal utilities run either by their customers (coops) or the municipal govt. (e.g., SMUD, LADWP, Burbank Power and Light )

• California Energy Commission (CEC)▫ California’s primary energy policy and planning agency. ▫ Created in 1974 and headquartered in Sacramento▫ Responsible for forecasting future energy needs, promoting

energy efficiency through appliance and building standards, and supporting renewable energy technologies.

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Historical Events - Policy• 2002 (accelerated in 2006): California State Legislature passes

Renewables Portfolio Standard (RPS) program ▫ Electric corporations (IOUs) must increase procurement of

renewable energy (wind, solar) to 20% by 2010 (accelerated from 2017)

▫ To be implemented by CPUC and CEC

• 2003 – CPUC adopted policy that all electric customers will have an advanced meter (aka Smart Meter)▫ Advanced meters in place at all IOUs by end of 2008 for all

customers with greater than 200 kilowatt (kW) maximum demand▫ Overview of remaining implementation efforts and associated

metricsMeasure Pacific Gas &

ElectricSan Diego Gas &

ElectricSouthern California

Edison

# of Electric Meters 5.1 M 1.4 M 5.3 M

# of Gas Meters 4.2 M 0.9M Gas utility (So Cal Gas) may connect to AMI

Costs Approved $1.7 B in July 2006 $0.6B in April 2007 $1.7B

Costs Pending Approval $0.6B to upgrade - -

Deployment Schedule 2006 to 2012 2008 to 2011 2009 to 2012

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Current Events – Economic and Policy

• Feb. 2009 U.S. Congress enacts the American Recovery and Reinvestment Act of 2009, (ARRA) (Pub.L. 111-5), an economic stimulus package ▫ ARRA based largely on proposals by President Barack Obama and

was intended to provide a stimulus to the U.S. economy in the wake of the economic downturn. Measures are nominally worth $787 billion.

▫ Department of Energy was designated to receive $61.3 billion to be issued to appropriate energy stakeholders e.g., utilities, policy organizations, research and development

▫ $4.5 billion was designated for the electric Smart Grid

• Sept. 2009 Gov. Arnold Schwarzeneger issued an executive order requiring all electric utilities (IOU and Public) to generate 33% of their power from renewable resources by 2020▫ He vetoed two bills that outlined the same guidelines but limited

how much could be imported from outside the state

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Implementation of Smart Grid

Greatest technological transformation since electricity grid was first created

▫ Equal to what Internet did for communications▫ Current electricity grid - same technology age as the

rotary phone▫ Rollout takes several years for a utility▫ Multi-layered investments by government, utilities and

end-users▫ Requires integration of new technologies; described as

integrating information technology with utility operations

▫ Industry must adopt technical standards for Smart Grid interoperability and security

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Summary -- Benefits of the Smart Grid• Puts decision making in the hands of customers

▫ Improved information, programs and pricing options will allow customers to make informed energy choices

▫ Provides better information about usage, conservation options, costs and prices

▫ Integrates smart thermostats, appliances, in-home displays, energy mgmt. systems and other consumer devices

• Automatically accommodates changing conditions▫ Fault isolation, quick and automatic restoration▫ Reroute power flows, change load patterns, improve voltage profiles▫ Promotes green energy initiatives by providing better integration of solar

and other distributed resources▫ Lessens workforce intervention for diagnostics, maintenance, repairs and

service calls (electricity connects and disconnects)

• Utility can operate the system with greater efficiency▫ Better asset management through optimized grid design▫ Greater reliability and security

• Improves grid adaptability▫ Electricity grid must be capable of integrating advanced electricity storage

and emerging technologies, including plug-in electric and hybrid electric vehicles