building support for the next wave of smart grid projects 05 05 2011

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ENERGY Building Support for the Next Wave of Smart Grid Projects INFOCAST Webinar ©2011 Navigant Consulting, Inc. DISPUTES & INVESTIGATIONS ECONOMICS FINANCIAL ADVISORY MANAGEMENT CONSULTING May 5, 2011 Navigant Reference: 830282

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A discussion of how the next wave of smart grid projects will be different from what we have seen so far.

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Page 1: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

ENERGY

Bu

ild

ing

Su

pp

ort

fo

r th

eN

ext

Wav

e o

f S

mar

t G

rid

Pro

ject

s

INF

OC

AS

T W

ebin

ar

©2011 Navigant Consulting, Inc.

DISPUTES & INVESTIGATIONS • ECONOMICS • FINANCIAL ADVISORY • MANAGEMENT CONSULTING

May

5, 2

011

Na

vig

an

t R

efer

ence

: 83

02

82

Page 2: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

•D

avid

Wal

ls, M

anag

ing

Dir

ecto

r

•F

orr

est

Sm

all,

Dir

ecto

r

•R

alp

h Z

aru

mb

a, D

irec

tor

•E

rik

Gil

ber

t, A

sso

ciat

e D

irec

tor

Ou

r sp

eak

ers

tod

ay w

ill

dis

cuss

str

ateg

ic i

ssu

es a

sso

ciat

ed w

ith

sm

art

gri

d d

eplo

ym

ent

and

su

gg

este

d a

pp

roac

hes

fo

r fu

ture

pro

ject

s.

Bu

ild

ing

Su

pp

ort

fo

r th

e N

ext

Wav

e o

f S

mar

t G

rid

» I

ntr

od

uct

ion

1

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Page 3: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

2T

he

Nex

t W

aves

1T

he

Fir

st W

ave

Bu

ild

ing

Su

pp

ort

fo

r th

e N

ext

Wav

e o

f S

mar

t G

rid

Ag

end

a

2

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

3R

egu

lato

ry I

ssu

es

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

4

Page 4: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

2T

he

Nex

t W

aves

Bu

ild

ing

Su

pp

ort

fo

r th

e N

ext

Wav

e o

f S

mar

t G

rid

Ag

end

a

1T

he

Fir

st W

ave 3

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

3R

egu

lato

ry I

ssu

es

4S

mar

t G

rid

Co

st-B

enef

it T

oo

ls

Page 5: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

We

are

ente

rin

g t

he

“Sec

on

d W

ave”

of

smar

t g

rid

dep

loy

men

ts w

her

e d

eep

er u

nd

erst

and

ing

of

the

bu

sin

ess

case

wil

l b

eco

me

crit

ical

.

Th

e F

irst

Wav

e »

Tim

e F

ram

e &

Ch

arac

teri

stic

s

Fir

st W

ave

“L

ay

ing

th

e F

ou

nd

ati

on

Sca

lin

g u

p d

eplo

ym

ent

Sec

on

d W

ave

“U

nd

ers

tan

din

g t

he

B

usi

ne

ss C

ase

Cumulative Rate of Investment

Fu

ture

Wav

es“A

dd

ress

ing

Str

ate

gic

Ne

ed

s”

•T

arg

eted

d

eplo

ym

ent

•G

rad

ual

bu

ild

-ou

t

4

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

2015

2020

2005

“L

ay

ing

th

e F

ou

nd

ati

on

a

nd

Le

arn

ing

•S

cali

ng

up

dep

loy

men

t•

Mo

re r

igo

rou

s b

usi

nes

s ca

ses

•C

ost

rec

ov

ery

•D

emo

nst

rati

ng

val

ue

Cumulative Rate of Investment

•P

ilo

t p

rog

ram

s an

d d

emo

s

•G

ov

ern

men

t in

cen

tiv

es a

nd

su

bsi

die

s

•R

egu

lato

ry m

and

ates

•G

rad

ual

bu

ild

-ou

t

•C

on

tin

uo

us

imp

rov

emen

t

Page 6: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Th

e fi

rst

wav

e o

f sm

art

gri

d, e

stim

ated

to

co

nti

nu

e th

rou

gh

201

5, h

as

beg

un

to

bri

ng

in

tell

igen

ce t

o t

he

gri

d a

cro

ss a

ll s

egm

ents

.

Th

e F

irst

Wav

e »

Are

as o

f S

mar

t G

rid

Dep

loy

men

t

Cu

sto

me

r C

ust

om

er

Cu

sto

me

r C

ust

om

er

Cu

sto

me

r Are

as

of

Sm

art

Gri

d T

ech

no

log

y D

ep

loy

me

nt

in t

he

Fir

st W

av

e

Cu

sto

me

r S

yst

em

s

Ad

va

nce

M

ete

rin

g

Infr

ast

ruct

ure

Dis

trib

ute

d

En

erg

y

Re

sou

rce

s

Dis

trib

uti

on

A

uto

ma

tio

nT

ran

smis

sio

n

Ma

na

ge

me

nt

5

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Cu

sto

me

r S

yst

em

sC

ust

om

er

Sy

ste

ms

Cu

sto

me

r S

yst

em

sC

ust

om

er

Sy

ste

ms

Cu

sto

me

r S

yst

em

s

•D

isp

lay

s

•P

ort

als

•E

ne

rgy

m

an

ag

em

en

t

•A

pp

lia

nce

s

•S

ma

rt m

ete

rs

•D

ata

m

an

ag

em

en

t

•B

ack

off

ice

in

teg

rati

on

•D

istr

ibu

ted

g

en

era

tio

n

•E

ne

rgy

sto

rag

e

•P

EV

s

•S

wit

che

s

•E

qu

ipm

en

t m

on

ito

rin

g

•V

olt

ag

e a

nd

V

AR

co

ntr

ol

•S

yn

chro

Ph

aso

rm

ea

sure

me

nt

•W

ide

are

a

mo

nit

ori

ng

an

d

vis

ua

liz

atio

n

Page 7: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Th

e F

irst

Wav

e »

DO

E A

RR

A S

mar

t G

rid

Pro

gra

ms

DO

E’s

AR

RA

Sm

art

Gri

d I

nv

estm

ent

Gra

nt

and

Dem

on

stra

tio

n

pro

gra

ms

hav

e b

een

a c

riti

cal

cata

lyst

fo

r th

e fi

rst

wav

e o

f p

roje

cts.

Sm

art

Gri

d I

nv

est

me

nt

Gra

nt

Pro

gra

m

•$3

.4 b

illi

on

in

fed

eral

fu

nd

ing

•$8

.2 b

illi

on

of

tota

l p

roje

ct v

alu

e

•99

pro

ject

s se

lect

ed

•P

roje

ct c

ateg

ori

es:

•C

ust

om

er S

yst

ems

Sm

art

Gri

d D

em

on

stra

tio

n P

rog

ram

•R

egio

nal

Sm

art

Gri

d D

emo

nst

rati

on

s

•16

pro

ject

s se

lect

ed

•$4

35 m

illi

on

in

fed

eral

fu

nd

ing

•$8

77 m

illi

on

of

tota

l p

roje

ct v

alu

e

•E

ner

gy

Sto

rag

e D

emo

nst

rati

on

s

Am

eri

can

Re

cov

ery

an

d R

ein

ve

stm

en

t A

ct S

ma

rt G

rid

Pro

gra

ms

6

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

•C

ust

om

er S

yst

ems

•A

dv

ance

d M

eter

ing

In

fras

tru

ctu

re

•D

istr

ibu

tio

n S

yst

ems

•T

ran

smis

sio

n S

yst

ems

•E

qu

ipm

ent

Man

ufa

ctu

rin

g

•In

teg

rate

d a

nd

Cro

sscu

ttin

g

•E

ner

gy

Sto

rag

e D

emo

nst

rati

on

s

•16

pro

ject

s se

lect

ed

•$1

85 m

illi

on

in

fed

eral

fu

nd

ing

•$7

70 m

illi

on

of

tota

l p

roje

ct v

alu

e

Th

ere

are

also

ten

Ren

ewab

le a

nd

Dis

trib

ute

d S

yst

ems

Inte

gra

tio

n (

RD

SI)

an

dH

igh

Tem

per

atu

re S

up

erco

nd

uct

or

pro

ject

s.

Page 8: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Ap

pro

xim

atel

y 7

5% o

f th

e sm

art

met

er d

eplo

ym

ents

th

rou

gh

201

3 w

ill

occ

ur

in C

alif

orn

ia, T

exas

, an

d t

hro

ug

h D

OE

pro

gra

ms.

Th

e F

irst

Wav

e »

AM

I P

roje

cts

Do

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ate

Sm

art

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d I

nv

estm

ents

16

8

AM

I S

mar

t M

eter

s1(M

)

$5

00

$6

00

$7

00

AM

I B

usi

nes

s C

ase2

(M)

•A

uto

mat

ed m

eter

rea

din

g a

nd

op

erat

ion

al f

un

ctio

nal

ity

fore

cast

ed t

o r

edu

ce l

abo

r co

sts

•D

eman

d r

esp

on

se p

rog

ram

s in

ten

ded

to

red

uce

ele

ctri

city

cost

s an

d d

efer

Cap

ex u

pg

rad

es

Cap

acit

y

So

ciet

al

En

erg

y

7

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

16

12

3.2

DO

E P

rog

ram

sC

alif

orn

ia

Tex

as (

no

n S

GIG

)O

ther

s

$-

$1

00

$2

00

$3

00

$4

00

$5

00

Co

st

Ben

efit

Op

erat

ion

s

Cap

ex D

efer

ral

1.N

av

iga

nt

esti

ma

te o

f e

lect

ric

sma

rt m

eter

s in

sta

lled

an

d f

un

ded

th

rou

gh

20

15

2Il

lust

rati

ve

exa

mp

le o

f ty

pic

al

AM

I B

usi

nes

s C

ase

fo

r a

n I

nv

esto

r O

wn

ed U

tili

ty o

per

ati

ng

in

an

org

an

ized

ma

rket

Page 9: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Th

e fi

rst

wav

e o

f D

istr

ibu

tio

n A

uto

mat

ion

(D

A)

init

iati

ves

hav

e b

een

p

erfo

rmed

as

incr

emen

tal

inv

estm

ents

an

d p

ilo

t p

roje

cts.

Th

e F

irst

Wav

e »

Uti

liti

es C

on

tin

ue

to R

eali

ze D

A B

enef

its

•D

istr

ibu

tio

n r

elia

bil

ity

im

pro

vem

ents

hav

e b

een

dem

on

stra

ted

on

wo

rst

per

form

ing

ci

rcu

its

•L

ine

loss

red

uct

ion

s h

ave

bee

n d

emo

nst

rate

d i

n v

olt

age

op

tim

izat

ion

pil

ots

, bu

t re

sult

s ar

e st

ill

esti

mat

ed o

r ca

lcu

late

d

•D

A f

un

ctio

nal

ity

ad

van

cem

ents

an

d c

om

mu

nic

atio

n t

ech

no

log

y c

ost

red

uct

ion

s h

ave

imp

rov

ed t

he

bu

sin

ess

case

Cir

cuit

s w

ith

Au

to S

wit

che

sO

uta

ge

Min

ute

s o

n C

ircu

its

8

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

0204060

Yr

1Y

r 2

Yr

3Y

r 4

Yr

5

Cir

cuit

s w

ith

Au

to S

wit

che

s

050

100

150

200

Yr

1Y

r 2

Yr

3Y

r 4

Yr

5

Ou

tag

e M

inu

tes

on

Cir

cuit

s

Illu

stra

tiv

e

Page 10: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

•T

yp

ical

dep

loy

men

ts o

f le

ss t

han

10,

000

met

ers

•D

yn

amic

pri

cin

g p

ilo

ts h

ave

cap

ture

d 5

-20%

of

the

cust

om

ers

•D

irec

t lo

ad c

on

tro

l an

d d

eman

d r

esp

on

se h

as f

ocu

sed

on

co

mm

erci

al a

nd

in

du

stri

al

•S

imp

le b

usi

nes

s ca

ses

–F

ocu

s o

n o

per

atio

nal

sav

ing

s

–D

emo

nst

rati

on

of

load

red

uct

ion

po

ten

tial

Ear

ly A

MI

pil

ot

pro

ject

s ac

ross

th

e U

S h

ave

larg

ely

fo

cuse

d o

n d

yn

amic

p

rici

ng

an

d d

irec

t lo

ad c

on

tro

l.

Th

e F

irst

Wav

e »

Pil

ot

Pro

ject

s

9

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

–D

emo

nst

rati

on

of

load

red

uct

ion

po

ten

tial

–S

tru

ctu

re o

f th

e u

tili

ty m

atte

rs

•R

esu

lts

sho

uld

be

use

d c

aref

ull

y, a

s th

ey h

ave

no

t b

een

bas

ed o

n r

igo

rou

s sa

mp

lin

g o

r ap

pro

ach

es

Page 11: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Th

e re

sult

s o

f ea

rly

pro

ject

s w

ill

be

mix

ed a

s th

e b

usi

nes

s ca

ses

and

cu

sto

mer

in

vo

lvem

ent

are

un

cert

ain

.

Th

e F

irst

Wav

e »

Key

Ou

tco

mes

•M

ark

et a

do

pti

on

of

pri

cin

g p

rog

ram

s is

lo

w

•C

ust

om

er b

enef

its

are

dif

ficu

lt t

o c

aptu

re

•B

usi

nes

s ca

se i

s d

iffi

cult

to

mak

e w

ith

ou

t a

man

dat

e o

r su

bsi

dy

10

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

•B

usi

nes

s ca

se i

s d

iffi

cult

to

mak

e w

ith

ou

t a

man

dat

e o

r su

bsi

dy

Th

e n

ext

wav

e o

f p

roje

cts

wil

l fo

cus

mo

re o

n u

tili

ty s

ide

ben

efit

s an

d b

usi

nes

s ca

ses,

an

d w

ill

clar

ify

th

e re

lati

on

ship

bet

wee

n t

he

uti

lity

, th

e cu

sto

mer

an

d t

he

smar

t g

rid

.

Page 12: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Bu

ild

ing

Su

pp

ort

fo

r th

e N

ext

Wav

e o

f S

mar

t G

rid

Ag

end

a

1T

he

Fir

st W

ave

2T

he

Nex

t W

aves 11

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

3R

egu

lato

ry I

ssu

es

4S

mar

t G

rid

Co

st-B

enef

it T

oo

ls

Page 13: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Co

mp

aris

on

Fac

tor

Fir

st W

ave

Nex

t W

ave

Sm

art

gri

d s

yst

ems

AM

I an

d m

eter

ing

Dis

trib

uti

on

sy

stem

s

Ben

efit

sO

ne-

dim

ensi

on

al, s

tati

cC

om

ple

x, e

ver

gre

en

Fu

nct

ion

alit

yL

ow

er –

sen

sin

g/m

on

ito

rin

gH

igh

er–

con

tro

l

Dis

trib

ute

den

erg

y

reso

urc

esP

assi

ve

awar

enes

sA

ctiv

e in

teg

rati

on

Sev

eral

fac

tors

wil

l b

e d

iffe

ren

t b

etw

een

th

e fi

rst

wav

e o

f sm

art

gri

d

and

th

e n

ext.

Th

e N

ext

Wav

es »

Co

mp

aris

on

Fac

tors

fo

r S

mar

t G

rid

Wav

es

12

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

reso

urc

esP

assi

ve

awar

enes

sA

ctiv

e in

teg

rati

on

Bu

sin

ess

case

too

lsR

ud

imen

tary

, NP

V, b

lack

b

ox

Co

mp

lex

, EV

, tra

nsp

aren

t

Per

form

ance

m

easu

rem

ent

Lim

ited

an

d c

rud

eR

elev

ant

per

form

ance

m

etri

cs

Page 14: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Sm

art

dis

trib

uti

on

sy

stem

s ca

n m

ake

a g

reat

er c

on

trib

uti

on

to

mo

vin

g

us

tow

ard

th

e m

od

ern

gri

d t

han

AM

I an

d s

mar

t m

eter

ing

.

Th

e N

ext

Wav

es »

Fo

cus

on

Dis

trib

uti

on

Sy

stem

s

•Self-heals

•Motivates and Includes the

consumer

•Resists attack

•Provides power quality for 21st

•Self-heals

•Motivates and Includes the

consumer

•Resists attack

•Provides power quality for 21st

Modernizing the grid will lead us

toward seven key outcomes

Modernizing the grid will lead us

toward seven key outcomes

Smart Grid Functionality1

AMI and Smart

Metering

Distribution

Systems

Support MGI

Characteristics

Real-time load measurement and

management

� ���� ���

� ���

Customer electricity use

optimization

� ���� ���

� ���

Automated voltage and VAR

control

� ���� ���

� ���

Adaptive protection

� ���� ���

� ���

13

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

•Provides power quality for 21st

century needs

•Accommodates all generation and

storage options

•Enables markets

•Optimizes assets and operates

efficiently

•Provides power quality for 21st

century needs

•Accommodates all generation and

storage options

•Enables markets

•Optimizes assets and operates

efficiently

So

urc

e: A

Sy

stem

s V

iew

of

the

Mo

der

n G

rid

, M

od

ern

Gri

d I

nit

iati

ve

(MG

I),

Nat

ion

al E

ner

gy

T

ech

no

log

y L

abo

rato

ry,

Jan

uar

y 2

00

7.

1F

un

ctio

nal

ity

as

spec

ifie

d i

n t

he

DO

E’s

Sm

art

Gri

d B

enef

its

Fra

mew

ork

Automated feeder and line

switching

� ���� ���

� ���

Automated islanding and

reconnection

� ���� ���

� ���

Real-time load transfer

� ���� ���

� ���

Diagnosis & Notification of

Equipment Condition

� ���� ���

� ���

Enhanced fault protection

� ���� ���

� ���

Dynamic capability rating

� ���� ���

� ���

� ���Yes

� ���No

Page 15: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Th

e N

ext

Wav

es »

Cap

ture

Co

mp

lex

Sm

art

Gri

d B

enef

its

Sm

art

gri

d b

enef

its

wil

l co

me

fro

m a

reas

th

at h

ave

bee

n d

iffi

cult

to

d

emo

nst

rate

an

d m

on

etiz

e in

th

e p

ast.

Smart Grid Benefits

Smart Grid Benefits

Smart Grid Benefits

Smart Grid Benefits

Financial

FinancialType

Type

Description

Description

Examples

Examples

Benefits related to utility or consumer costs that

can be expressed directly in financial terms.

Benefits related to utility or consumer costs that

can be expressed directly in financial terms.

•Reduced T&D operations costs

•Lower electricity bills for customers

•Reduced T&D operations costs

•Lower electricity bills for customers

Easier to

monetize

14

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Environmental

Environmental

Reliability

Reliability

Security

Security

Benefits related to power interruptions or power

quality, but that may not be easily expressed in

financial terms.

Benefits related to power interruptions or power

quality, but that may not be easily expressed in

financial terms.

•Shorter power outages

•Less severe voltage sags

•Shorter power outages

•Less severe voltage sags

Benefits related to air polluting emissions.

Benefits related to air polluting emissions.

•Reduced CO2emissions

•Reduced SOxand NOx

•Reduced CO2emissions

•Reduced SOxand NOx

Benefits related to maintaining a secure energy

supply and infrastructure.

Benefits related to maintaining a secure energy

supply and infrastructure.

•Reduced oil consumption

•Fewer, or smaller blackouts

•Reduced oil consumption

•Fewer, or smaller blackouts

Harder to

monetize

Page 16: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

•L

ever

age

the

sen

sors

an

d

com

mu

nic

atio

ns

net

wo

rks

inst

alle

d d

uri

ng

th

e fi

rst

wav

e

•U

se t

he

tech

no

log

ies

to

Bu

ild

on

th

e se

nsi

ng

an

d r

epo

rtin

g t

ech

no

log

y o

f th

e fi

rst

wav

e, a

nd

in

crea

se f

un

ctio

nal

ity

fo

r co

ntr

ol

and

au

tom

atio

n.

Th

e N

ext

Wav

es »

In

crea

se S

mar

t G

rid

Fu

nct

ion

alit

y

Sensing and

Reporting

Remote

Control

Automation

15

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

•U

se t

he

tech

no

log

ies

to

dev

elo

p “

app

s” t

hat

en

able

o

per

atio

nal

eff

icie

ncy

, re

sili

ence

, an

d o

pti

miz

atio

n•Increasespeed to impact

•Standardizeprocesses

•Reduce cost

Page 17: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Fac

ilit

ate

clo

se c

om

mu

nic

atio

ns

wit

h c

on

sum

ers

and

th

eir

app

lian

ces,

an

d b

eco

me

a p

latf

orm

fo

r n

ew e

ner

gy

pro

du

cts

and

ser

vic

es.

Th

e N

ext

Wav

es »

Pla

tfo

rm f

or

Co

nsu

mer

s an

d N

ew E

ner

gy

Pro

du

cts

•S

mar

t ap

pli

ance

s an

d e

qu

ipm

ent

•In

form

atio

n o

n d

eman

d

•C

ust

om

er c

on

tro

l an

d e

ng

agem

ent

•C

oll

abo

rati

ve

and

per

son

aliz

ed i

nte

ract

ion

ch

ann

els

Support Direct Consumer Engagement

Integrate Consumer Energy Technologies

16

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

•E

ner

gy

ser

vic

e b

un

dle

s

•C

ust

om

ized

ele

ctri

c se

rvic

e le

vel

s

•R

etai

l en

erg

y e

xch

ang

es

•S

mar

t ap

pli

ance

s an

d e

qu

ipm

ent

•E

ner

gy

man

agem

ent

syst

ems

•D

istr

ibu

ted

en

erg

y r

eso

urc

es

Enable New Energy Products and Services

So

urc

e: “

A D

ay i

n t

he

Lif

e o

f th

e F

utu

re C

ust

om

er”,

Cu

sto

mer

Car

e R

esea

rch

Co

nso

rtiu

m, N

avig

ant

anal

ysi

s.

Page 18: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Sim

pli

fy i

nte

gra

tio

n o

f d

istr

ibu

ted

en

erg

y r

eso

urc

es, a

nd

use

th

em t

o

crea

te s

mar

t g

rid

res

ou

rces

.

Th

e N

ext

Wav

es »

In

teg

rate

Dis

trib

ute

d E

ner

gy

Res

ou

rces

Inv

erte

r

Po

wer

Co

ntr

ol

Op

erat

or

Inte

rfac

e

Ele

ctri

cal

Ser

vic

e P

anel

Uti

lity

In

form

atio

n

Sy

stem

sA

MI

Sm

art

Met

er

AM

I fa

cili

tate

s co

mm

un

icat

ion

s b

etw

een

uti

lity

in

form

atio

n

syst

ems

and

PV

in

ver

ters

Po

wer

Flo

w

Info

rmat

ion

Flo

w

17

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Op

erat

or

Inte

rfac

e

Lo

ad

Cir

cuit

s

Uti

lity

D

istr

ibu

tio

n

Sy

stem

DA

En

erg

y S

tora

ge

(ES

)

Dem

and

R

esp

on

se

(DR

)

DR

cu

rtai

ls s

mal

l am

ou

nts

o

f cu

sto

mer

lo

ad f

or

sho

rt

per

iod

s o

f ti

me

(<2

hrs

)

ES

pro

vid

es i

np

ut

to

inv

erte

r to

co

mp

ensa

te f

or

PV

var

iab

ilit

y (

<8 h

rs)

Po

wer

Flo

w

PV

sy

stem

Sm

art

gri

d t

ech

no

log

ies

Fu

nct

ion

alit

yE

lect

rica

l sy

stem

co

mp

on

ents

DA

hel

ps

man

age

circ

uit

vo

ltag

e an

d

acco

mm

od

ate

chan

gin

g

po

wer

flo

w

Page 19: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Ap

ply

met

rics

th

at t

rack

th

e im

pac

ts o

f sm

art

gri

d o

n g

rid

op

erat

ion

s an

d p

erfo

rman

ce, a

nd

use

th

e re

sult

s to

gu

ide

on

go

ing

dep

loy

men

t.

Th

e N

ext

Wav

es »

Mea

sure

Per

form

ance

Smart Grid

Strategy

Systems

Lessons

•Operational efficiency

•Reliability improvement

•Customer satisfaction

•Customer demand profiles

•Operational efficiency

•Reliability improvement

•Customer satisfaction

•Customer demand profiles

Performance metrics can be used

to demonstrate smart grid impact

Performance metrics can be used

to demonstrate smart grid impact

18

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Systems

Deployment

Performance

Measurement

Lessons

Learned

•Customer demand profiles

•Capital investment deferral

•Asset utilization

•Electricity cost savings

•Fuel savings

•Generation mix

•CO2reductions

•Customer demand profiles

•Capital investment deferral

•Asset utilization

•Electricity cost savings

•Fuel savings

•Generation mix

•CO2reductions

Page 20: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

2T

he

Nex

t W

aves

Bu

ild

ing

Su

pp

ort

fo

r th

e N

ext

Wav

e o

f S

mar

t G

rid

Ag

end

a

1T

he

Fir

st W

ave 19

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

4S

mar

t G

rid

Co

st-B

enef

it T

oo

ls

3R

egu

lato

ry I

ssu

es

Page 21: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Reg

ula

tory

Iss

ues

» I

nn

ov

atio

ns

Cre

ate

Reg

ula

tory

Ch

alle

ng

es

Ev

ery

dec

ade,

th

e el

ectr

ic p

ow

er i

nd

ust

ry h

as i

ntr

od

uce

d n

ew

inn

ov

atio

ns

that

hav

e cr

eate

d n

ew r

egu

lato

ry c

hal

len

ges

.

20

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

1960

s

Lar

ge

Cen

tral

ized

F

oss

il

Sta

tio

ns

1970

s

Nu

clea

r P

ow

er

Sta

tio

ns

1980

s

En

erg

y

Eff

icie

ncy

1990

s

Co

mp

etit

ion

in

Wh

ole

sale

an

d R

etai

l M

ark

ets

2000

s

Th

e S

mar

t G

rid

Page 22: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Reg

ula

tory

Iss

ues

» R

egu

lato

ry S

trat

egy

Th

ere

are

fou

r el

emen

ts o

f re

gu

lato

ry s

trat

egy

to

be

con

sid

ered

fo

r sm

art

gri

d p

rog

ram

s.

Pru

den

cyP

rud

ency

Co

st R

eco

ver

yC

ost

Rec

ov

ery

Reg

ula

tory

21

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Co

st A

llo

cati

on

Co

st A

llo

cati

on

Pri

cin

g &

Pro

gra

m

Des

ign

Pri

cin

g &

Pro

gra

m

Des

ign

Reg

ula

tory

S

trat

egy

Page 23: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Reg

ula

tory

Iss

ues

» C

orp

ora

te S

tru

ctu

re a

nd

th

e R

egu

lato

ry S

trat

egy

Th

e re

gu

lato

ry s

trat

egie

s o

f d

istr

ibu

tio

n c

om

pan

ies

wil

l d

iffe

r fr

om

th

ose

of

ver

tica

lly

in

teg

rate

d u

tili

ties

.

Dis

trib

uti

on

Co

mp

any

•A

Dis

trib

uti

on

Uti

lity

off

erin

g

“wir

es s

erv

ices

” fa

ces

dif

fere

nt

chal

len

ges

wh

en i

mp

lem

enti

ng

th

e sm

art

gri

d t

han

a V

erti

call

y

Inte

gra

ted

Uti

lity

.

•T

hei

r ch

arte

r o

ften

lim

its

them

to

Ver

tica

lly

In

teg

rate

d U

tili

ty

•W

hat

are

th

e d

iffe

ren

t ap

pro

ach

es t

o

qu

anti

fyin

g t

he

ben

efit

s o

f sm

art

gri

d f

or

a v

erti

call

y i

nte

gra

ted

uti

lity

v

ersu

s a

wir

es c

om

pan

y

•S

ho

uld

a d

iffe

ren

ce e

xis

t fo

r th

e q

uan

tifi

cati

on

of

the

Co

st /

Ben

efit

22

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

•T

hei

r ch

arte

r o

ften

lim

its

them

to

“W

ires

Iss

ues

•W

hat

cri

teri

a sh

ou

ld a

Dis

trib

uti

on

U

tili

ty u

se i

n p

erfo

rmin

g t

he

Co

st /

B

enef

it A

nal

ysi

s –

sho

uld

it

incl

ud

e th

e g

ener

atio

n b

enef

its?

qu

anti

fica

tio

n o

f th

e C

ost

/ B

enef

it

An

aly

sis?

•Is

it

val

id t

o a

cco

un

t fo

r p

ote

nti

al

ben

efit

s as

soci

ated

wit

h c

ust

om

ers

wh

o a

re p

rocu

rin

g f

rom

co

mp

etit

ive

sup

pli

ers?

•W

hat

if

a cu

sto

mer

pro

curi

ng

co

mp

etit

ive

po

wer

do

es n

ot

wan

t to

par

tici

pat

e in

a s

mar

t g

rid

in

form

atio

n p

rog

ram

?

Page 24: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Reg

ula

tory

Iss

ues

» P

rud

ency

Inv

estm

ent

pru

den

cy w

ill

rem

ain

a c

riti

cal

rev

iew

ite

m f

or

reg

ula

tors

.

Initial Decision

Making Process

•Is

th

e p

rop

ose

d p

rog

ram

des

ign

rea

son

able

an

d w

ill

it w

ith

stan

d

scru

tin

y i

n a

po

st-i

mp

lem

enta

tio

n r

evie

w?

•T

he

imp

lem

enta

tio

n o

f sm

art

gri

d t

yp

ical

ly t

rig

ger

s ea

rly

re

tire

men

t o

f in

fras

tru

ctu

re –

wil

l th

e u

tili

ty f

ace

dis

allo

wan

ce r

isk

?

23

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Treatment of

Existing

Infrastructure

reti

rem

ent

of

infr

astr

uct

ure

–w

ill

the

uti

lity

fac

e d

isal

low

ance

ris

k?

Customer

Implementation

Issues

•Is

th

e u

tili

ty r

ead

y t

o i

mp

lem

ent

the

“so

ft-s

ide”

of

the

smar

t g

rid

in

clu

din

g p

rici

ng

des

ign

an

d c

ust

om

er e

du

cati

on

?

Page 25: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Reg

ula

tory

Iss

ues

» C

ost

All

oca

tio

n

All

oca

tin

g c

ost

s m

ust

pro

per

ly r

efle

ct t

he

accr

ual

of

ben

efit

s to

d

iffe

ren

t cl

asse

s o

f cu

sto

mer

s, a

nd

th

e sy

stem

as

a w

ho

le.

Who Benefits from

the Smart Grid?

•T

he

val

ue

of

ben

efit

s is

per

ceiv

ed t

o g

ener

ally

fo

llo

w t

he

cust

om

er

gro

up

s w

ho

par

tici

pat

e d

irec

tly

insm

art

gri

d p

rog

ram

s

•A

lth

ou

gh

Sy

stem

Ben

efit

s p

rov

ides

sig

nif

ican

t v

alu

e to

all

, cu

sto

mer

s ar

gu

men

ts a

re m

ade

to r

e-al

loca

te o

r d

isal

low

th

e co

sts

24

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

System-Wide

Benefits

cust

om

ers

arg

um

ents

are

mad

e to

re-

allo

cate

or

dis

allo

w t

he

cost

s

Existing Cost

Allocation

Approaches

•M

ost

ap

pro

ach

es t

o c

ost

all

oca

tio

n a

re b

ased

up

on

tra

dit

ion

al

app

roac

hes

(e.

g.,

All

oca

ted

Co

st o

f S

erv

ice)

an

d i

gn

ore

ho

w

con

sum

ers

ben

efit

fro

m t

he

smar

t g

rid

Page 26: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Reg

ula

tory

Iss

ues

» C

ost

Rec

ov

ery

Co

st r

eco

ver

y s

trat

egy

is

inte

gra

l to

th

e u

tili

ty’s

ov

eral

l sm

art

gri

d

stra

teg

y.

Will a Rate Case

Triggered?

•A

lar

ge

smar

t g

rid

im

ple

men

tati

on

may

tri

gg

er a

rat

e ca

se

op

enin

g u

p e

ver

y i

ssu

e in

th

e u

tili

ty r

even

ue

req

uir

emen

t

•M

any

uti

liti

es h

ave

cho

sen

to

iso

late

sm

art

gri

d c

ost

rec

ov

ery

25

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Isolated Smart Grid

Cost Recovery

•M

any

uti

liti

es h

ave

cho

sen

to

iso

late

sm

art

gri

d c

ost

rec

ov

ery

Timing Issues

•T

he

tim

ing

of

the

cost

rec

ov

ery

–cu

rren

t o

r d

efer

red

Page 27: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Reg

ula

tory

Iss

ues

» P

rici

ng

Des

ign

Pri

cin

g d

esig

n m

ust

car

efu

lly

bal

ance

th

e en

han

ced

fu

nct

ion

alit

y o

f th

e sm

art

gri

d, w

ith

th

e co

re i

nte

rest

s o

f cu

sto

mer

s.

Existing

Tariffs

•H

ow

wer

e th

e ex

isti

ng

tar

iffs

des

ign

ed a

nd

are

th

ey a

pp

rop

riat

e fo

r th

e sm

art

gri

d?

•H

ow

wil

l y

ou

est

abli

sh D

yn

amic

Pri

cin

g a

nd

wid

e-sp

read

TO

U?

•Is

it

feas

ible

fo

r y

ou

r cu

sto

mer

bas

e?

26

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Dynamic Pricing /

TOU

•Is

it

feas

ible

fo

r y

ou

r cu

sto

mer

bas

e?

Adverse Customer

Reactions

•A

ny

new

pri

cin

g d

esig

n o

r p

rod

uct

off

erin

g n

eed

s to

be

imp

lem

ente

d i

n a

man

ner

th

at t

arg

ets

rece

pti

ve

cust

om

ers

Page 28: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Reg

ula

tory

Iss

ues

» S

trat

egy

Su

cces

s F

acto

rs

Win

nin

g r

egu

lato

ry s

trat

egie

s fo

r sm

art

gri

d w

ill

rely

on

tra

dit

ion

al

succ

ess

fact

ors

.

Do

n’t

Ov

er-P

rom

ise

•T

he

dea

th k

nel

l o

f m

any

go

od

id

eas

occ

urs

wh

en r

eali

ty a

nd

ex

pec

tati

on

s co

llid

e

Pro

vid

e C

ust

om

ers

Wh

at T

hey

Wan

t –

No

t W

hat

Yo

u T

hin

k T

hey

Sh

ou

ld H

ave

•M

ost

cu

sto

mer

s d

on

’t w

ant

to t

hin

k a

bo

ut

elec

tric

ity

–th

ey ju

st w

ant

it t

her

e w

hen

th

ey n

eed

it

!

Mai

nta

in P

rice

Sta

bil

ity

27

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

•P

eop

le l

ike

uti

liti

es t

hat

are

bo

rin

g -

-si

gn

ific

ant

pri

ce i

ncr

ease

s ar

e ta

nta

mo

un

t to

pai

nti

ng

a

targ

et o

n y

ou

r b

ack

Lis

ten

to

Mar

ket

s an

d B

ehav

e A

pp

rop

riat

ely

•W

ho

lesa

le e

ner

gy

an

d a

nci

llar

y s

erv

ice

pri

ces

are

vo

lati

le

•S

mar

t g

rid

str

ateg

y s

ho

uld

acc

ou

nt

for

ener

gy

pri

ce

•M

ark

et d

esig

ns

chan

ge

Des

ign

pro

gra

ms

so t

hat

no

cu

sto

mer

gro

up

s fe

el l

ike

they

are

bei

ng

tre

ated

un

fair

ly

•C

ost

all

oca

tio

n r

eall

y d

oes

mat

ter

Page 29: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

2T

he

Nex

t W

aves

Bu

ild

ing

Su

pp

ort

fo

r th

e N

ext

Wav

e o

f S

mar

t G

rid

Ag

end

a

1T

he

Fir

st W

ave 28

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

3R

egu

lato

ry I

ssu

es

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

4

Page 30: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

•F

lex

ible

To

ols

Wil

l B

e R

equ

ired

⁻R

egu

lato

ry s

tru

ctu

res,

man

dat

es a

nd

req

uir

emen

ts v

ary

wid

ely

⁻E

ver

y u

tili

ty h

as d

iffe

ren

t ch

arac

teri

stic

s, a

pp

roac

hes

, p

ote

nti

al a

vo

ided

co

sts,

etc

.

⁻E

ver

y p

roje

ct h

as u

niq

ue

asp

ects

⁻S

om

e co

sts

and

ben

efit

s ar

e d

iffi

cult

to

qu

anti

fy i

n d

oll

ars

(e.g

., re

liab

ilit

y, G

HG

em

issi

on

s)

•K

ey I

ssu

es M

ust

Be

Ad

dre

ssed

⁻D

efin

ing

th

e “s

mar

t g

rid

Bu

sin

ess

case

s fo

r th

e n

ext

wav

e o

f p

roje

cts

wil

l b

e m

ore

rig

oro

us,

an

d

req

uir

e m

ore

cap

able

to

ols

.

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

» O

ver

vie

w

29

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

⁻D

efin

ing

th

e “s

mar

t g

rid

⁻E

stab

lish

ing

a d

eplo

ym

ent

tim

elin

e an

d t

ech

no

log

y/f

un

ctio

n e

vo

luti

on

pat

h

⁻E

stab

lish

ing

a b

asel

ine

app

roac

h

⁻D

evel

op

ing

an

ap

pro

ach

to

sta

keh

old

er b

enef

its

and

co

sts

accr

ual

⁻A

pp

lyin

g a

pp

rop

riat

e ti

me

val

ue

to b

enef

its

and

co

sts

•P

rop

er M

eth

od

olo

gy

an

d T

oo

ls C

an C

lari

fy a

nd

Sim

pli

fy t

he

Bu

sin

ess

Cas

e

⁻H

elp

org

aniz

e th

ink

ing

ab

ou

t d

iffi

cult

-to

-qu

anti

fy b

enef

its

⁻H

elp

pla

n a

nd

pre

par

e fo

r m

easu

rem

ent

& v

erif

icat

ion

(M

&V

)

Page 31: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

1.S

mar

t G

rid

Co

mp

uta

tio

nal

To

ol

(SG

CT

)

–F

ocu

ses

on

uti

lity

pro

ject

in

ves

tmen

t an

aly

ses

–C

an m

od

el a

wid

e ra

ng

e o

f sm

art

gri

d p

roje

ct t

yp

es

2.R

esid

enti

al T

ech

no

log

y B

enef

it/C

ost

Tes

t T

oo

l

–F

ocu

ses

on

res

iden

tial

tec

hn

olo

gy

(e.

g.,

HA

N)

beh

ind

th

e m

eter

–S

pec

iali

zed

fo

r R

OI

anal

ysi

s

–P

rov

ides

sta

nd

ard

ized

co

st t

ests

(e.

g.,

TR

C t

est,

Uti

lity

Tes

t, e

tc.)

Th

e th

ree

too

ls d

iscu

ssed

her

e ar

e b

ased

on

a f

ram

ewo

rk d

evel

op

ed b

y

DO

E, E

PR

I an

d N

avig

ant.

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

» F

ram

ewo

rk a

nd

To

ols

Ex

amp

les

30

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

–P

rov

ides

sta

nd

ard

ized

co

st t

ests

(e.

g.,

TR

C t

est,

Uti

lity

Tes

t, e

tc.)

3.R

egio

nal

Co

st-B

enef

it A

sses

smen

t M

od

el

–E

xte

nd

s th

e D

OE

/EP

RI

Sm

art

Gri

d M

eth

od

olo

gy

–E

xam

ines

Reg

ion

al I

nv

estm

ent

Sce

nar

ios

Page 32: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

» F

ram

ewo

rk

DO

E’s

Sm

art

Gri

d B

enef

its

Fra

mew

ork

is

bas

ed o

n t

he

idea

th

at s

mar

t g

rid

ass

ets

and

fu

nct

ion

alit

y l

ead

to

ben

efit

s.

Fu

nct

ion

sM

ech

an

ism

sB

en

efi

ts

Wh

at d

oes

the

smar

t g

rid

do?

How

doe

s it

do

that

?W

hat

“g

ood

nes

s”

resu

lts?

Mo

ne

tary

V

alu

e

Wh

at i

s th

e g

ood

nes

s w

orth

?

Ass

ets

Wh

at a

re s

mar

t g

rid

te

chn

olog

ies?

31

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Ben

efit

s ar

e as

sess

ed i

n t

he

foll

ow

ing

ca

teg

ori

es:

•Eco

no

mic

•Rel

iab

ilit

y•E

nv

iro

nm

enta

l, a

nd

•S

ecu

rity

Page 33: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

» 1

–S

GC

T I

np

uts

an

d O

utp

uts

Th

e S

GC

T i

s an

Exc

el b

ased

to

ol

that

use

s a

var

iety

of

dat

a in

pu

ts a

nd

as

sum

pti

on

s, a

nd

pro

vid

es s

tan

dar

d o

utp

uts

.

Inp

uts

Ou

tpu

ts

Dat

a th

at

corr

esp

on

ds

to

Imp

act

Met

rics

Dat

a th

at

corr

esp

on

ds

to

Imp

act

Met

rics

Ex

amp

les

AM

I/S

mar

t M

eter

s,

Au

tom

ated

Fee

der

and

Lin

e S

wit

chin

g

AM

I/S

mar

t M

eter

s,

Au

tom

ated

Fee

der

and

Lin

e S

wit

chin

g

An

nu

al G

ener

atio

n

Co

sts,

Nu

mb

er o

f

Tam

per

Det

ecti

on

s

An

nu

al G

ener

atio

n

Co

sts,

Nu

mb

er o

f

Tam

per

Det

ecti

on

s

Mo

net

ary

Val

ue

of

up

to

22

Ben

efit

s

Mo

net

ary

Val

ue

of

up

to

22

Ben

efit

s

All

Ou

tpu

t A

ll O

utp

ut

Sm

art

gri

d p

roje

ct

Ass

ets,

Fu

nct

ion

s,

and

Mec

han

ism

s

Sm

art

gri

d p

roje

ct

Ass

ets,

Fu

nct

ion

s,

and

Mec

han

ism

s

32

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

SG

CT

Imp

act

Met

rics

Imp

act

Met

rics

Dat

a d

eriv

ed f

rom

esti

mat

es a

nd

assu

mp

tio

ns

Dat

a d

eriv

ed f

rom

esti

mat

es a

nd

assu

mp

tio

ns

Tam

per

Det

ecti

on

sT

amp

er D

etec

tio

ns

Co

st P

aram

eter

s

and

Esc

alat

ion

Fac

tors

Co

st P

aram

eter

s

and

Esc

alat

ion

Fac

tors

Dis

cou

nt

Rat

e,

Infl

atio

n R

ate,

Po

pu

lati

on

Gro

wth

Dis

cou

nt

Rat

e,

Infl

atio

n R

ate,

Po

pu

lati

on

Gro

wth

Val

ue

of

Ser

vic

e,

Pri

ce o

f C

apac

ity

at

Pea

k, V

alu

e o

f C

O2

Val

ue

of

Ser

vic

e,

Pri

ce o

f C

apac

ity

at

Pea

k, V

alu

e o

f C

O2

Sen

siti

vit

y F

acto

rsS

ensi

tiv

ity

Fac

tors

Hig

h a

nd

Lo

w c

ase

Val

ue

of

CO

2

Hig

h a

nd

Lo

w c

ase

Val

ue

of

CO

2

NP

V A

nal

ysi

s

of

Pro

ject

NP

V A

nal

ysi

s

of

Pro

ject

Sen

siti

vit

y

An

aly

sis

of

Pro

ject

Sen

siti

vit

y

An

aly

sis

of

Pro

ject

All

Ou

tpu

t

is c

alcu

late

d

ov

er

mu

ltip

le

yea

rs

All

Ou

tpu

t

is c

alcu

late

d

ov

er

mu

ltip

le

yea

rs

Page 34: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

» 2

–R

esid

enti

al T

ech

no

log

y B

enef

it/C

ost

Tes

t T

oo

l

Cal

cula

tes

the

ben

efit

s, c

ost

s an

d t

he

fiv

e st

and

ard

ben

efit

/co

st r

atio

s fo

r d

eman

d-s

ide

smar

t-g

rid

tec

hn

olo

gie

s.

Input, output &

model structure

are easily

accessed via

graphical user

33

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

graphical user

interface

Page 35: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

» 2

–R

esid

enti

al T

ech

no

log

y B

enef

it/C

ost

Tes

t T

oo

l

Ou

tpu

ts i

ncl

ud

e to

tal

ben

efit

s an

d c

ost

s b

y c

ateg

ory

as

wel

l as

fiv

e st

and

ard

ben

efit

/co

st t

est

rati

os.

34

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Page 36: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

» 3

–R

egio

nal

Co

st-B

enef

it A

sses

smen

t M

od

el

Six

ref

ined

ben

efit

s ca

tego

ries

—fr

om

gen

erat

ion

to

co

nsu

mp

tio

n—

each

co

mp

rise

s a

gro

up

of

fun

ctio

ns.

6 B

enef

it C

ateg

ori

es�

30 F

un

ctio

ns

Au

tom

ate

d

Vo

ltag

e &

V

AR

Co

ntr

ol

Dyn

amic

C

apac

ity

Rat

ing

Imp

rove

d

Co

nd

uct

or

Lin

e

Effi

cie

ncy

Po

we

r Fl

ow

C

on

tro

l

Wid

e A

rea

Mo

nit

ori

ng

& V

isu

al-

izat

ion

35

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Infr

a-st

ruct

ure

Li

fe

Exte

nsi

on

Ph

ase

B

alan

cin

g

Smar

t G

rid

T&

D

Op

tim

izat

ion

Gri

d

Re

lia

bil

ity

Uti

lity

O

pe

rati

on

al

Effi

cie

ncy

Page 37: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Sm

art

Gri

d C

ost

-Ben

efit

To

ols

» 3

–R

egio

nal

Co

st-B

enef

it A

sses

smen

t M

od

el

Ass

ets

are

map

ped

to

fu

nct

ion

s b

ased

on

pro

ject

sp

ecif

ics,

th

en d

ata

that

mu

st b

e co

llec

ted

fo

r th

e b

enef

it/c

ost

ass

essm

ent

is i

den

tifi

ed.

Reclosers / Auto-Sectionalizing Switches

Advanced Meter Infrastructure (AMI) - Smart Meters

Distribution Management System

Load Monitoring Device

Meter Data Management System (MDMS)

Advanced Transformers (e.g., Load Tap Controls, MTUs, etc.)

Dispatchable/Automated Capacitor Banks

Fault Indication Technology

Outage Management System

Vehicle to Grid Infrastructure - 2 Way Flow

Automated Voltage Regulator

Microgrid Controllers & Technologies

Phase Angle Regulating Transformer

Controllable/Regulating Inverter

Equipment Health Sensor (Distribution)

Advanced Visualization & Analysis Software (Distribution)

36

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

Congestion Metrics (MW)

Tra

nsm

issi

on

an

d D

istr

ibu

tio

n O

pti

miz

atio

n

X

X

X

XX

X

XX

X

X

XX

X

XX

XX

XX

XX

X

XX

XX

XX

XX

XX

X

X

XX

XX

X

X

XX

XX

XX

XX

X

X

X

X

Au

tom

ate

d V

olt

age

an

d V

AR

Co

ntr

ol

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

X

Dyn

am

ic C

ap

aci

ty R

ati

ng

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

X

Imp

rov

ed

Co

nd

uct

or

Lin

e E

ffic

ien

cyX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Infr

ast

ruct

ure

Lif

e E

xte

nsi

on

fro

m E

qu

ipm

en

t C

on

dit

ion

Dia

gn

osi

s &

Pre

ve

nti

ve

Ma

inte

na

nce

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Ph

ase

Ba

lan

cin

gX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

X

Po

we

r F

low

Co

ntr

ol

& R

ea

l Tim

e L

oa

d T

ran

sfe

rX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Wid

e A

rea

Mo

nit

ori

ng

& V

isu

ali

zati

on

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

X

En

d U

se E

ne

rgy

Eff

icie

ncy

XX

XX

XX

XX

X

XX

X

X

X

X

X

XX

X

X

X

X

X

XX

X

XX

X

X

XX

XX

XX

XX

XX

XX

XX

XX

En

d U

se C

on

serv

ati

on

fro

m A

uto

mat

ed

Co

nsu

mp

tio

n O

pti

miz

ati

on

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

X

En

d U

se C

on

serv

ati

on

fro

m B

eh

av

ior

Ch

an

geX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

X

En

ha

nce

d E

E P

rog

ram

Ma

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XX

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X

Emissions (e.g., Generation, Vehicle, etc.) (CO2, CO2e, SOx, NOx, Particulate) (tons)

Electricity Theft (annual kWh)

Generation Capacity Factor (0.00 - 1.00)

Very Low Impedance (VLI) or High Temp Superconductivity (HTS) cables

Deferred Capacity Expansion (Generation, Transmission and Distribution) (MW)

Transmission & Distribution Line Losses (%, annual kWh)

Equipment Health Sensor (Transmission)

Advanced Visualization & Analysis Software (Transmission)

DATA

Operations & Maintenance Requirements (description)

T&D Equipment Failures (qty)

Transactive Control System

Integrated Utility IT System (IT hardware, software)

Central Storage (e.g., Batteries, Flywheels, etc.)

Variable Pricing/Variable Rate Structure

Other

Transmission & Distribution Overload Events (e.g., Substations, Feeders, etc.)(qty, location)

Transmission & Distribution Line Loads (e.g., Substations, Feeders, etc.) (MW peak, MW load

Reliability Indices & Metrics (e.g., SAIDI, CAIDI, SAIFI, etc.) (indices, minutes, qty)

Controllable/Regulating Inverter

Equipment Health Sensor (Distribution)

Advanced Visualization & Analysis Software (Distribution)

Flexible AC Transmission System (FACTS) Devices

Transmission Sensors (Phasor Measurement, Synchrophasor, Temperature, Load)

Fault Indication Technology

Outage Management System

Vehicle to Grid Infrastructure - 2 Way Flow

Automated Voltage Regulator

Microgrid Controllers & Technologies

Phase Angle Regulating Transformer

Oth

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Cu

sto

me

rD

GD

istr

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an

smis

sio

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pa

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ata

Value of Reduced Emissions ($/ton)

Imp

act

Va

lua

tio

n D

ata

Equipment Units (qty)

Installation & Integration Costs ($/unit)

Value of Increased Energy Efficiency ($/kWh)

Value of Increased Demand Response ($/kW)

Value of Avoided Outages & Reduced Outage Duration ($/momentary outage, $/hour)

Co

st D

ata

Value of Avoided O&M ($)

Value of Avoided Capacity Expansion ($/MW)

Value of Avoided Ancillary Services ($/kWh, $/kW)

Electricity Prices (Wholesale & Retail) ($/kWh, $/peak kW)

Power Quality Indices & Metrics (qty)

Electricity Consumption (e.g., Substation, Feeder, Customer, etc.) (kWh per year, kWh per hr)

Electricity Generation (e.g., Generator, DG, Renew, Ancillary, etc.) (MW, MWh/yr, MWh/hr)

Distribution Management System

Fault Current Limiter

Load Monitoring Device

Meter Data Management System (MDMS)

Advanced Transformers (e.g., Load Tap Controls, MTUs, etc.)

Dispatchable/Automated Capacitor Banks

Smart Appliances and Equipment

Smart Thermostat

End Use Equipment Sensors (e.g., Equipment Health, Consumption, etc.)

Electric Vehicle (EV) / Plug in Hybrid (PHEV)

Renewable Distributed Generation (e.g., Small Wind, Solar, Hydro, etc.)

Distributed Storage (e.g., Batteries, Flywheels, etc.)

De

plo

ym

en

t F

act

ors

Utility Acceptance/Perception (description)

End-User Acceptance/Perception (description)

Regulatory Acceptance/Perception (description)

BEN

EFI

T C

AT

EG

OR

Y /

FU

NC

TIO

N

Energy Management System (EMS) - Commercial & Industrial

Reclosers / Auto-Sectionalizing Switches

Value of Reduced Congestion ($/MW)

Two-way Communications Infrastructure (High Bandwidth)

ASSET

Customer Consumption Display/Portal

End Use Remotely Controlled Interrupter/Switch

Energy Management System (EMS) - Residential

Home Area Network

Other Distributed Generation (NG, LNG, Fuel Cell, Propane, Diesel)

Advanced Meter Infrastructure (AMI) - Smart Meters

Penetration Rate/Uptake (%)

Persistence (%)

Future Deployment Plans (description)

Software & Systems Cost ($/unit)

Unit Equipment Costs ($/unit)

Operations Costs ($/unit, $/year)

Maintenance Costs ($/unit, $/year)

Incentive Costs ($/year)

Administrative Costs ($/year)

Marketing, Outreach, and Education Costs ($/year)

Training Costs ($/year)

ASSETS

DATA

BENEFIT

CATEGORIES/

FUNCTIONS

XX

XX

X

X

XX

X

XX

X

X

XX

XX

XX

XX

XX

Reclosers / Auto-Sectionalizing Switches

Advanced Meter Infrastructure (AMI) - Smart Meters

Distribution Management System

Fault Current Limiter

Load Monitoring Device

Meter Data Management System (MDMS)

Advanced Transformers (e.g., Load Tap Controls, MTUs, etc.)

Dispatchable/Automated Capacitor Banks

Fault Indication Technology

Outage Management System

Vehicle to Grid Infrastructure - 2 Way Flow

Automated Voltage Regulator

Microgrid Controllers & Technologies

Phase Angle Regulating Transformer

Controllable/Regulating Inverter

Equipment Health Sensor (Distribution)

Advanced Visualization & Analysis Software (Distribution)

Page 38: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Sm

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37

Building Support for the Next Wave of Smart Grid Projects, May 5, 2011

©2011 Navigant Consulting, Inc.

ENERGY

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Page 39: Building Support For The Next Wave Of Smart Grid Projects   05 05 2011

Key

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©2011 Navigant Consulting, Inc.

Confidential and proprietary. Do not distribute or copy.

©2011 Navigant Consulting, Inc.

Confidential and proprietary. Do not distribute or copy.

©2011 Navigant Consulting, Inc.

Confidential and proprietary. Do not distribute or copy.

©2011 Navigant Consulting, Inc.

Confidential and proprietary. Do not distribute or copy.

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