Download - Solution: Smart Grid
Detaching AC from MC Rate Decoupling
Lowers consumption, therefore results in lower emission
Facilitating two-way communication
Increase Reliability More accurate pricing structures,
hence lower prices for consumers
August 2003 Lasted 3 days Affected 50 million 10 million Canada 40 million in U.S Eastern US and Canada Detroit to New York City and Toronto $10 billion (USD) in economic loses 3,000 fire calls in NYC alone 11 deaths
Interconnects – regions of AC connectivity – strictly regulate frequency (60 Hz)
Frequency is dependent on load (demand) and supply.
When there is an overload frequency drops
Transformers and Generators both break down when the AC Frequency changes
Generators speed up when frequency drop, overheat
Current increases and causes Transformers to overheat and explode…
Distributed Energy Systems generate emergency power onsite when supply drops, causing a dip in frequency
But there still is a lack of communication about the real demand
SubstationPrivately Owned Power Plant (generation)
Meter
Independent Generators
Independent System Operator Managed
Investor Owned Utility Managed
Generation
Transmission Distribution
Market Structure
SCADA
AMI
Smart Grid
FERC/PUCs
PUCs
• Smart Grids• AMI (Advanced
Metering Infrastructure)
• PEM (Personal Energy Management)
Prices reflect average, not marginal costs Consumers have little incentive to
constrain electricity use when conservation is required
Quantity demanded exceeds quantity available
Create incentives for decreased electricity consumption during peak periods
Real-time market information on prices and quantities demanded and supplied
Provide incentives to reduce consumption during peak use periods
Regulates supply on each transmission line through prices
Encourages increased use in rarely used lines and decreased use in overcrowded lines
Encourages increased use during non-peak periods
Imagine a toll road where "permits" are auctioned off. • The price each person is willing to pay will
depend on the number of people on the road• Drivers will pay less for a crowded than a less
congested road• End result is traffic from otherwise crowded roads
shifts to less crowded roads and congestion is reduced for everybody.
Similarly, spot pricing on a Smart Grid encourages consumers to use less crowded transmission lines.• Electricity flow shifts from overused to underused
lines• Events leading to the 2003 blackout don't occur.
EU looking to implement single-grid by 2020• Italian Government owned Utility furthest
ahead with 30 million “smart-meters”• New Zealand and Australian private
market conducting smart-meters in most provinces
World’s 1st Smart Grid – Boulder, Colorado
Tennessee Delaware Utah Vermont Idaho Connecticut
Iowa Virginia West Virginia Kentucky Montana
Modify EPACT 1252-11 Directed States to either adopt or decline time based
rate schedules to enable: Real-Time/Dynamic Pricing via Customer Interface Demand Response
Address the concerns of the States Deciding not to Adopt EPACT 1252 11
Cap & Trade Strong implications toward energy
degregulation Price Premium on Coal Provides incentives for RTP Alternative Energy Energy Efficiency
With Real Time Pricing – preliminary steps must be taken Guaranteed Rate of Return for installing
infrastructure Decoupling (Volume based to Congestion
based) Protection for Public Purpose Programs
Low-Income Seniors