ge digital energy the future of energy: smart grid and beyond...a “smarter” grid enabled utility...
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GE Digital Energy
John D. McDonald, P.E.DirectorTechnical Strategy & Policy Development
IEEE FellowIEEE PES President (2006-2007)IEEE Division VII Director (2008-2009)IEEE-SA Board of Governors (2010-2011)IEEE Smart Grid Steering CommitteeCIGRE USNC VP, Technical Activities
IEEE PES Tallahassee ChapterOctober 20, 2015
The Future of Energy:Smart Grid and Beyond
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Agenda
• Key Industry/Societal Trends
• Integration of Renewables
• Holistic Solutions
• Big Data, Analytics and Enterprise Data Management
• Industry Standards Vision
• Incentive-Based Regulation
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Key Industry/Societal Trends
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Key Industry/Societal Trends
� Transitioning from Devices/Systems to Holistic Solutions
� Success = Technology, Standards, Policy
� Grid Flexibility + Self Healing + Reconfigurable
� Electrical Power Distribution Infrastructures Resiliency
� Big Data, the Cloud and Use of Social Media
� Convergence of IT and OT to Support Enterprise Data Management
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Integration of Renewables
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Distributed GenerationIndustry Challenge
Distribution controls and protection traditionally take advantage of and are designed only for uni-directional power flow
PowerGeneration
Generation Switchyard
Transmission Substation
Distribution Substation
End UserPowerGeneration
Generation Switchyard
Transmission Substation
Distribution Substation
End User
A wide array of DG is creating unique challenges in the grid: two-way power flow, voltage regulation concerns.
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Distributed GenerationIndustry Challenge
V(pu)
1.00
24 hours
1.05
Open circuit over-voltage due to unintentional islanding
Protection ratings not matched to fault currents
Varying Fault Currents due to DG
Stress on Voltage Regulation equipment
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Distributed Generation IntegrationTechnology Solution Optimal dispatch of complex energy resources
Smart control system to optimize and manage generators, energy storage and loads featuring:• Optimal Dispatch• Supervisory Controls• Islanding/Tie-Line Controls
U90 Microgrid Controller
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Optimize conventional generation dispatch
• Leverage production forecasting in optimal dispatch
• Intelligent unit commitment and use of reserves
Compensate for variability when needed
• Use of fast-start thermal generation• Bridging storage (if needed)• Demand response
Leverage full capabilities of the renewables
• Fault ride-through• Volt/VAr regulation• Ramp-rate controls• Curtailment• Inertial response
Wind power production (MW)
10
-min
Win
d P
ow
er
Ch
an
ge
(M
W)
Ramp Rate
Po
we
r
Time0
20
40
60
80
100
47 48 49 50 51 52
Freq. Droop
Po
we
r
Frequency
Reserve req
FlexEfficiency 60 GEMx Battery
Technology Solutions
Distributed Generation Integration
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Grid Edge Controllers and Microgrids
Edge of grid transforming into Microgrids
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Impact of High Penetration of Rooftop Solar PV on the Distribution System
New Applications of Power Electronics (my Power Electronics magazine article – August 22, 2013 issue)
• Substation Transformer On-line Tap Changer• Low Voltage Network Dynamic Grid Edge Controllers• Increased capability from Inverters
The Death Spiral (Intelligent Utility magazine article – November /December 2013 issue)• Impact of High Penetration of Rooftop Solar PV in the State of
Queensland, Australia
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Holistic Solutions
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Heavy Metal“ Generate & Deliver Power”
Control“How Power Flows”
Management“ Applications”
TransmissionAutomation
Gen & TransMgt.
Dist.Mgt.
Sensors Dist.Automation
AssetOptimization
Smart Grid Adds
Old Grid
Old Grid
• You call when the power goes out.
• Utility pays whatever it takes to meet peak demand.
• Difficult to manage high Wind and Solar penetration
• Cannot manage distributed generation safely.
• ~10% power loss in T&D
‘New Applications enabled by Additional Infrastructure’
Adv.Metering System
Enabled Consumers
Economic Dispatch
Smart Grid
• Utility knows power is out and usually restores it automatically.
• Utility suppresses demand at peak. Lowers cost. Reduces CAPEX.
• No problem with higher wind and solar penetration.
• Can manage distributed generation safely.
• Power Loss reduced by 2+%… lowers emissions & customer bills.
DemandOptimization
DeliveryOptimization
EnergyOptimization
Thermal Generation Lines
Sub Stations
DistEquipment
Renewable Generation
VoltageControl
A “Smarter” Grid Enabled Utility Managers
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Demand Optimization
Distribution Optimization
Asset Optimization
Transmission Optimization
Workforce & Engineering
Design Optimization
Smart Grid Holistic Solutions
Smart Meter
&
Comms
Shared Services & applications
Interoperability Framework
Transitioning from products/systems to holistic solutions
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Data
Residential,Commercial& Industrial
Substations
Consumers
HA
N
Real-Time Communications
BackhaulComms
Backhaul Comms
Smart Grid Base
BackhaulComms
NMS
SmartRouter
Internet
SmartMeter
Internet
Gateway
MDMS
Fir
ew
all
EMS OMSDMS GIS
Office
Devices
SmartRouter
UtilityOwned
Generation& Storage
Gen &Store
Distributed Energy Resource Manager
HA
N
StationController
OtherIEDs & I/O
Volt Reg, LTC, Caps
Apps
LocalHMI
Protection Relays
SmartRouter
Volt/VARDevices
Volt Reg & Caps
SmartRouter
Switches & Breakers
Reclosers & SwitchesPMU
Transformer M&D
Mobile
Router
OFR DPA DRIVVCFDIR WAMS Hist
MobileFFA
Model
MgrAsset Services
SecurityApps
BizToolsDesign
EnterpriseOperations Bus – Software Services Infrastructure
Workforce & Engr Design
Software Services Infra
Distribution
Optimized Solutions
Transmission
Smart Meter Systems
Demand
Asset
Wired/Wireless Substation Communications
Smart Grid Technology RoadmapSmart Grid Technology Roadmap
CommunicationsInfrastructure
MicrogridController
Generation& Storage
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Smart Meters/AMI Integration with GIS, OMS and DMSSmart Meters/AMI• Meter Readings• Voltage => DMS• Last Gasp Communication => OMS
GIS• Network Model Information => OMS, DMS
DMS• Status Changes => OMS
Customers• Phone Calls => OMS• Social Media => OMS
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Big Data, Analytics and Enterprise Data Management
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Drive the next productivity revolution by connectingintelligent machines with people at work
IntelligentMachines1. Big Data
& Analytics2.People at Work3.
Leverage technology & communication to cost-
effectively connect machines
Combine the power of big data, big analytics, and industry physics
Connecting people any place, any way, and any
time for intelligent operations
The “II” Connects…
Global Energy Capex $1.9T/year
The first 1% annual savings equals $300B over 15 years
A world that works better, faster, safer, cleaner and cheaper
++
=
EnergyValue:
Internet of Things (IoT)
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Analytics
Meter Insight(in development)
Outage Insight(in development)
Reliability Insight(in development)
Renewables Insight(in design)
Consumer Insight(in design)
• Automated KPI data validation
• Dynamic KPI dashboards
• Outage Event Recorder
• Planned outage optimization
• Predictive Outage Analytics
• Accurate ETR
• Automated KPI data validation
• Dynamic KPI dashboards
• Outage Event Recorder
• Planned outage optimization
• Predictive Outage Analytics
• Accurate ETR
• Predictive vegetation management
• Asset health analysis
• System health analysis
• Lifecycle analysis and portfolio optimization
• Predictive vegetation management
• Asset health analysis
• System health analysis
• Lifecycle analysis and portfolio optimization
• PV load (dis)aggregation/ hotspot analysis
• Wind load (dis)aggregation and hotspot analysis
• EV penetration/ impact analysis
• DER load orchestration
• PV load (dis)aggregation/ hotspot analysis
• Wind load (dis)aggregation and hotspot analysis
• EV penetration/ impact analysis
• DER load orchestration
• Social media integration
• Customer Segmentation
• Customer Engagement
• Sentiment Analysis
• Social media integration
• Customer Segmentation
• Customer Engagement
• Sentiment Analysis
• Revenue Protection
• Power Quality and Reliability
• Load Forecasting and Research
• Revenue Protection
• Power Quality and Reliability
• Load Forecasting and Research
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Enterprise Data ManagementCollecting data for Data Analytics
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Industry Standards Vision
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Example: Standards Framework
National Institute of Standards and Technology (NIST)
… Smart Grid Conceptual Reference Model… Smart Grid Interoperability Panel (SGIP) Organizational Structure
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Smart Grid Foundational Standards
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Identify user requirements and gaps in standards
Accelerate standards development and harmonization for interoperability of Smart Grid devices & systems
Identify necessary testing and certification requirements
Oversee the performance of these activities & continue momentum
Inform and educate Smart Grid industry stakeholders on interoperability
Conduct outreach to establish global interoperability alignment
What Does SGIP Do?
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SGIP Activity AreasStandards – More needed than ever
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Communication ProtocolsControl Center to Control Center• IEC 60870-6/TASE.2 – Inter-control Center Communications
Protocol (ICCP)
Control Center to Field Equipment• IEEE 1815 (DNP3) – North American Suppliers• IEC 60870-5 – European Suppliers
• 101 – serial communications• 103 – protection devices• 104 – TCP/IP (network communications)
Field Equipment• IEC 61850 – substation automation and protection• IEEE 1815 (DNP3) – substation and feeder device automation
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SGIPAccelerating Grid Modernization
www.sgip.org
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Incentive-Based Regulation
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Industry Trends Force Regulatory Rethink
Greater sensitivity to grid
disturbances
Eroding rate base due to slow/flat
sales growth
Aging infrastructure requires massive
investment
Increasing complexity of
distribution networks
Regulated Utility
Challenges associated with traditional COS regulation
• “Least cost” approach to ratemaking often fails to provide utilities with consistent/adequate incentives to improve system performance
• Threat of disallowance discourages investment in new/innovative technologies
• Narrow focus on cost/benefit fails to provide utilities with adequate investment guidelines
Velocity of Change
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Incentive Regulation… an Alt. ApproachKey attributes
� Ties utility profits to performance
• Reliability• Efficiency• Power Factor• Consumer satisfaction• Safety• Other output-based metrics…
� Balances shareholder risk with performance rewards
� Combines certainty with accountability to protect ratepayers
Recent examples
IllinoisEnergy Infrastructure Modernization Act
• Authorizes $3.2 B in grid modernization investment
• Establishes mandatory performance targets
• Contains spending/rate cap to protect consumers
MarylandGrid Resiliency Task Force recommendations
• PSC implementation of performance-based ratemaking structure to align customer, utility incentives
• Establishment of reliability-based metrics with associated rewards/penalties
• Targeted cost recovery tracker to promote investment
United KingdomRevenue = Incentives + Innovation + Outputs (RIIO)
• Extends review cycle to 8 years to increase certainty
• Establishes incentives for performance against reliability and environmental metrics
• Rewards utilities for executing projects under budget
Velocity of Change
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IEEE Potentials Article
November/December 2011
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Go West Young Man – My First Job
Don’t let a disappointing work situation affect your attitude and work, because it will change
No one is indispensable and continue to do more than expected and provide value to the company
Practice “precision without accuracy” in all engineering work
Get an MBA and know how to build the business case for a technical project
Get a PE license as soon as you have the required work experience (assuming you have passed the FE exam)
Serve as a mentor for young engineers
Get involved in outside activities (IEEE PES) giving talks, teaching courses and developing industry standards
John at work at Bechtel in 1975
Lessons Learned
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Thank You!
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