capturing the value of smarter grids_iesa

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Customized Energy Solutions Ltd.

1528 Walnut Street, 22nd Floor

Philadelphia, PA 19102 USA

Phone: +1-215-875-9440

Fax: +1-215-875-9490

info@ces-ltd.com

Customized Energy Solutions India Pvt. Ltd.

A 501, GO Square

Aundh - Hinjewadi Link Rd, Wakad

Pune, Maharashtra 411057 India

Phone: 91-989-205-4504

info@ces-ltd.com

Capturing the value of Smarter Grids

Dr. Rahul WalawalkarVice President,

Emerging Tech & Markets,

Customized Energy Solutions

Presented at

© 2012 Customized Energy Solutions Ltd. 1

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Electricity Generation and Population Growth

2Source: Gapminder.org

© 2011 Customized Energy Solutions Ltd.

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Drivers for Smart Grid projects

�Operational

�Improving Grid Reliability

�Improve transfer capacity

�Deployment of AMI & associated IT infra.

�Renewable integration

�Expansion of Demand Response

� Social

�Lower energy prices

�Jobs growth

�Cleaner environment

3

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Overview of a smarter electric grid

Adapted from Walawalkar , Tongia et. al 2007

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55

Smart Grid: Best Defined by Functionality

� Objectives of the smart grid are

� Enabling informed participation by customers

� Accommodating all generation and storage options

� Enabling new products, services, and markets

� Providing the power quality for the 21st century economy

� Optimizing asset utilization and operating efficiently

� Addressing disturbances through automated prevention, containment,

and restoration

� Operating resiliently against all hazards

Source: US Department of Energy

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Emerging Business Models

� Electric Supply� Improved Asset Utilization & Reduced Price Risk

� Integration of Renewables, Distributed Generation & Storage

� Transmission & Distribution Utilities� Smart Distribution Grids

� Transmission Investment that Can Adapt to Alternative Futures

� Operations = System Integration + Markets

� Consumer Applications� Vendor / Utility Partnerships & Competition

� Energy Management, Productivity, & Consumer Experience Apps

� Intelligent, Low-Energy Buildings Integrated Design

� Transportation� PHEVs, EREVs, & EVs with Smart Charging

� Reuse of Batteries on the Grid

6

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Challenges for Smart Grid Deployment

�Defining and understanding business case

� System planning & selection of right projects

� Regulatory & policy

� Consumer acceptance

� Culture and education

� Technical & Engineering Design

�Workforce training and education

7

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Capturing the value from smarter grids

�Case 1:

�Renewable Integration

�Case 2:

�Demand Response

© 2012 Customized Energy Solutions Ltd. 8

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India – Wind and Solar Resource Availability

9

Solar Map

13-17 GW of wind anticipated by 2013 Goal of 20 GW of solar by 2022

© 2011 Customized Energy Solutions Ltd.

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Renewable Energy Cost Trends

10

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Challenges in integration of renewablesChallenges in integration of renewablesChallenges in integration of renewablesChallenges in integration of renewables

11Source: Dr. Michael Milligan NREL / AWEA : Dr. Jay Apt, CMU© 2011 Customized Energy Solutions Ltd.

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India Grid Frequency

12© 2011 Customized Energy Solutions Ltd.

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Regional wind power generation forecast for Germany and real Regional wind power generation forecast for Germany and real Regional wind power generation forecast for Germany and real Regional wind power generation forecast for Germany and real

observation dataobservation dataobservation dataobservation data

13http://www.meteologica.com/meteologica/content/regional-forecast© 2011 Customized Energy Solutions Ltd.

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Integrating advanced wind forecasting & scheduling

14

Wind Facility 1Wind Facility 1

Wind

Forecast

Provider

CES-SecureRT

Data Acquisition System

-- Secure internet SCADA

-- Database/interface

Internet

based

FTP site

Internet

or Private

Network

Wind Facility nWind Facility nInternet

w/ VPN

EncryptionInternet

Wind

Output

Forecasts

(15 minute)

Facility

Output /

Availability /

Wind Data

Facility Real Time Data (output,

wind, availability, etc)

State Load Dispatch

Center (SLDC)

© 2011 Customized Energy Solutions Ltd.

Customized’s Market Operations Center currently actively

manages over 2650 MW of generation, energy storage and

demand response resources to maximize profits for our clients.

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India – Grid Frequency Analysis

15© 2011 Customized Energy Solutions Ltd.

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Role of Energy Storage in Renewable IntegrationRole of Energy Storage in Renewable IntegrationRole of Energy Storage in Renewable IntegrationRole of Energy Storage in Renewable Integration

16Adapted from EPRI & AEP presentation© 2011 Customized Energy Solutions Ltd.

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Role of Electricity Markets in understanding the valueRole of Electricity Markets in understanding the valueRole of Electricity Markets in understanding the valueRole of Electricity Markets in understanding the value

�Provides price transparency to quantity value proposition of

various EES technologies

�Market Design

�Access to various markets for

� energy,

� ancillary services

� capacity

�Generation Supply mix & Demand Curve

�Market size

�Locational factors

�Electric transmission network & interconnection

17

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Smart Grid (EES) Demonstration ProjectsSmart Grid (EES) Demonstration ProjectsSmart Grid (EES) Demonstration ProjectsSmart Grid (EES) Demonstration Projects

Major projects include: CAES demonstration (NY and CA), Renewable Integration (CA, TX, NM), Peak

Shaving, Community Energy Storage and demonstration of new technologies.

Visit www.energy.gov for additional details.

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19

Case Study 2: Why Demand Response (DR)?

�DR can reduce marginal costs of peak production

� Especially the case where generators are paid market clearing prices

under uniform auctions

�DR of 5% can mitigate market power, and reduce

uneconomical investment in peaker units (as per studies)

� India has virtually no peaker units – we resort to load-shedding!

�DR might also manage variability in supply from renewables

such as wind and solar PV

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Load Profiles1

-Jan

13-J

an

25

-Ja

n

6-F

eb

18

-Fe

b

1-M

ar

13

-Ma

r

25

-Ma

r

6-A

pr

18

-Ap

r

30-A

pr

12

-Ma

y

24

-Ma

y

5-J

un

17-J

un

29

-Ju

n

11

-Jul

23-J

ul

4-A

ug

16

-Au

g

28

-Au

g

9-S

ep

21

-Se

p

3-O

ct

15-O

ct

27

-Oct

8-N

ov

20-N

ov

2-D

ec

14-D

ec

26

-De

c

S1S5

S9S13

S17S21

0

5000

10000

15000

20000

25000

30000

35000

MW

Days in Year

Hrs in

Day

Summer Months

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Short Run Marginal Cost Curve & Price Duration Curve

* This price duration curve shows only the wholesale energy prices corresponding to the generation component of customer’s electricity bill. T&D costs are added onto these wholesale energy costs.

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Demand Response can help balance supply & demand

Energy Efficiency

© 2011 Customized Energy Solutions Ltd. 22

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23

Potential benefits of demand response

� Increased competition

� Operational savings

� Lower market prices

� Reduced price volatility

� Improved grid reliability

� Improved customer options

� Providing ancillary services

� Positive environmental benefits

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Summary

� There is tremendous growth potential for renewable integration as well as demand response in India

�Current grid and supply mix is not geared to tackle the potential challenges that could impact power quality and reliability

�Smarter grids utilizing emerging technologies such as energy storage and smarter regulation can help

�Need to learn from international experiences as well as challenges faced by wind energy in recent years

24© 2011 Customized Energy Solutions Ltd.

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Contact US

Customized Energy Solutions India Pvt. Ltd.A 501, GO Square

Aundh - Hinjewadi Link Rd, Wakad

Pune, Maharashtra 411057 India

Phone: 91-20-32407682

info@ces-ltd.com

Customized Energy Solutions Ltd.1528 Walnut Street, 22nd Floor

Philadelphia, PA 19102 USA

Phone: +1-215-875-9440

Fax: +1-215-875-9490

info@ces-ltd.com

Dr. Rahul Walawalkar

Vice President,

Emerging Tech & Markets

rahl@ces-ltd.com

Phone: 91-20-32407682

Mobile: 91-989-205-4504

Folsom, CAFolsom, CA

Richardson, TXRichardson, TX

Carmel, INCarmel, IN

Midlothian, VAMidlothian, VA

Philadelphia, PAPhiladelphia, PA

New York, NYNew York, NY

Pune, IndiaPune, India

Mumbai, IndiaMumbai, India

© 2011 Customized Energy Solutions Ltd. 25