building support for the next wave of smart grid projects 05 05 2011
DESCRIPTION
A discussion of how the next wave of smart grid projects will be different from what we have seen so far.TRANSCRIPT
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
•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
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
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
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
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
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.
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
min
ate
Sm
art
Gri
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
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
•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
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
.
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
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
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
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
•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
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.
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
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
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
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
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
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
?
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
?
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
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
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
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
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
•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
)
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
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
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
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
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
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
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
rke
tin
g &
Imp
lem
en
tati
on
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
En
ha
nce
d E
E P
rog
ram
Me
asu
rem
en
t &
Ev
alu
ati
on
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
Imp
rov
ed
Eq
uip
me
nt
Effi
cie
ncy
fro
m C
on
dit
ion
Dia
gn
osi
s &
Ma
inte
na
nce
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
Sta
tic
Co
nse
rva
tio
n V
olt
ag
e R
ed
uct
ion
(C
VR
)X
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
Gri
d R
eli
abil
ity
X
X
XX
XX
X
XX
XX
XX
XX
XX
XX
XX
X
XX
XX
XX
X
XX
XX
X
X
X
X
X
X
X
XX
XX
XX
XX
XX
XX
XX
XX
Au
tom
ate
d I
sla
nd
ing
an
d R
eco
nn
ect
ion
(M
icro
-Gri
d C
ap
ab
ilit
y)
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
En
ha
nce
d A
nci
lla
ry S
erv
ice
sX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
En
ha
nce
d F
au
lt L
oca
tio
n,
Iso
lati
on
& S
erv
ice
Re
sto
rati
on
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
En
ha
nce
d F
au
lt P
rev
en
tio
nX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
Re
du
ced
Ou
tag
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fro
m E
qu
ipm
en
t C
on
dit
ion
Dia
gn
osi
s &
Pre
ve
nti
ve
Mai
nte
na
nce
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
Dyn
am
ic &
Re
spo
nsi
ve
De
ma
nd
XX
XX
XX
XX
XX
XX
XX
X
X
X
XX
X
X
XX
XX
X
X
X
XX
XX
XX
X
XX
XX
XX
X
XX
XX
XX
XX
XX
XX
XX
XX
De
man
d R
esp
on
se f
rom
Uti
lity
Co
ntr
oll
ed
Re
du
ctio
n E
ven
ts (
Dir
ect
Lo
ad
Co
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ol)
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
De
man
d R
esp
on
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rom
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r C
on
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lle
d R
ed
uct
ion
Ev
en
tsX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
Dis
pa
tch
ab
le C
on
serv
atio
n V
olt
ag
e R
ed
uct
ion
(C
VR
)X
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
En
ha
nce
d D
R P
rog
ram
Ma
rke
tin
g &
Im
ple
me
nta
tio
nX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
En
ha
nce
d D
R P
rog
ram
Me
asu
rem
en
t &
Ev
alu
ati
on
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
Loa
d S
hif
tin
g f
rom
Sto
rag
e,
Dis
trib
ute
d E
ne
rgy
Re
sou
rce
s, E
lect
ric
Ve
hic
les,
Etc
.X
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
Re
ne
wa
ble
& D
istr
ibu
ted
Sy
ste
ms
Inte
gra
tio
n
XX
XX
X
X
X
X
X
XX
X
XX
XX
XX
XX
XX
XX
X
XX
XX
X
X
XX
XX
XX
XX
XX
XX
XX
X
X
Ce
ntr
aliz
ed
Ge
ne
rati
on
- R
en
ew
ab
leX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
Dis
trib
ute
d G
en
era
tio
n -
No
n-R
en
ew
ab
leX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
Dis
trib
ute
d G
en
era
tio
n -
Re
ne
wa
ble
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
Uti
lity
Op
era
tio
nal
Eff
icie
ncy
X
XX
XX
X
X
X
XX
X
X
X
XX
X
XX
XX
XX
X
XX
XX
XX
X
Au
tom
ate
d M
ete
r O
pe
rati
ng
Sav
ings
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
X
Imp
rov
ed
Uti
lity
Pla
nn
ing
an
d F
ore
cast
ing
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
Uti
lity
Pro
cess
Im
pro
ve
me
nt
XX
XX
XX
XX
XX
XX
XX
XX
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
er
Cu
sto
me
rD
GD
istr
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nTr
an
smis
sio
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pa
ct D
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)
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37
Building Support for the Next Wave of Smart Grid Projects, May 5, 2011
©2011 Navigant Consulting, Inc.
ENERGY
2. $
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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.
38
ENERGY
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ph
Zar
um
ba
Dir
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hic
ago
, IL
(312
) 58
3-41
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mb
a@n
avig
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com
Eri
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Ass
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Dir
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ou
lder
, CO
(303
) 72
8-25
36E
rik
.Gil
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t@n
avig
ant.
com