davis smartgrid conference rev2

8/8/2019 Davis SmartGrid Conference Rev2

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A quick look back

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AbundantAffordableReliableSecureCritical to our economic

growth and successEssential to our qualityof life

For more than 100 years,the nations electricityinfrastructure has served uswell, providing electricitythat is:


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The challenge ahead is complex

Deliver these new benefits

with a system not designed or operated to deliver them,.while continuing to provide the abundant, affordable, reliable and secure energy that is essential to our economy and quality of life.

Electrify transportation sector to reduce dependenceon imported oil

Develop and deploy effective energy storage technologies

Accelerate integration of renewable energy sources

Maximize opportunities for end-use efficiency


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The current situation

The electric infrastructure was created:

service territory by service territorywith a market monopoly and a regulated return oninvestment in exchange for the obligation to serve

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Service territories, though now connected, define thegeographical, regulatory and balance sheet footprint forplanning and operations.

Are these footprints large enough to enable decisions needed to realizenew objectives for the grid without impacting original objectives it delivers today?


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The need for new knowledge

Were trying to improve the system without a consensusof what improvements are best and where to focus effortsSpeed and affordability of computing and communicationare constantly improvingleverage these infrastructuresApproach the future from a knowledge point of view,

rather than a regulatory or control point of viewNew business models enabled by a real-timeunderstanding of where the electrons are needed, wherethey are available and how best to move them from point

A to point B will bring maximum value to all participants


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Policy, technology and capitalEssential pieces of the puzzle

Capital

PolicyTechnology

MarketsPublic/PrivatePartnerships


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Policy needs

Focus on national interests, not special interestsThink beyond service territory boundaries andbalance sheetsProvide data to arm all participants with sufficientunderstanding beyond their service territory (footprint) to:

maximize asset utilitymove from static and conservative management of assetsspeed and broaden progress toward new grid objectives

Enable regulatory structure that welcomes and rewardsnew technology


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Technology needs

Models to accurately represent the built infrastructure at theinterconnection levelGPS information to understand real-time dynamic operation

of infrastructureUse new knowledge to:

create transparencyenable decisions

realize benefits more quickly and broadly

Establish computational and visualization capabilityto look beyond current service territory footprints


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New visualization tools


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Who gets the benefits and what does it cost?How are costs allocated and who pays?Who takes the risk?Who owns the assets?

What policies will maximize benefits to all parties?What regulations should be removed, changed or added?How do we realize the new expectations without losing sight of thebenefits we have today?

Capital needs

Define and manage smart grid investments andbusiness models


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Leadership needs

Leaders help move from data knowledge actionGreater understanding of system can move participantstoward consensus on the best next steps

Real-time knowledge of system at interconnection scaleis necessary to optimize electricity system operations, butcan be equally important in approaches to carbon capand trade

Learn from othersChinas national grid is deploying technology and businessmodels that look at real-time dynamic system operations

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Leadership needed to build constituency andconsensus necessary for change and progress


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New business models arising

Tools to aggregate the demandside of the equation to the pointof controlIf you can control demand, itcan be dispatchedfasterthan any new resources on thesupply sidePNNLs Olympic PeninsulaGridWise demonstrationproject illustrated this concept

Smart devices dispatched demandautomatically over the Internet

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The role of government

Provide and assuretransparency

Build upon existingcommunication, computationand visualization technologiesLeverage other existinginfrastructureswireless,broadband, InternetAccelerate phasor build out

Shape and guide access tonew data sources

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The Northwest can lead the way

National leadership in energy efficiency based in theNorthwestStrong regional partnershipsEngaged consumers interested in environmental andenergy issues

Large concentration of innovative utilities and vendorsmay speed initial implementation to demonstrate results


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In closing

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Technology : Bettertools are needed tounderstand benefits

and make decisionsPolicy : DOE, FERCand NARUC canwork with industry toguide the grid of the

21st

centuryCapital : Newbusiness modelscould arise as realgame changers

Leadership : TheNorthwest can helplead the way

davis smartgrid conference rev2

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