4/18/18

1

E G R 3 2 5 A P R I L 2 0 1 8

ENERGY POLICY, MICROGRIDS & SMART GRID

REDDY KILOWATT

• Reddy Kilowatt, for those who had forgotten as well as those who never knew in the first place, was the spokesman –spokesthing, spokesvolt? – for the electric utility industry.

• He had a torso and limbs made of lightning bolts, a light bulb for a nose and wall outlets for ears.

• The character was dreamed up by an executive at Alabama Power Co. in the 1920s but quickly spread to other utilities as a way to promote both consumption and safety.

• https://www.youtube.com/watch?v=5_kW2KZ04wk• https://www.youtube.com/watch?v=UhGDRNe1tUI• From 1967

2

4/18/18

2

3

OVERVIEW

• Energy Policy• Why and How does the government intervene in industry

• A Bit of History• Future power systems• Distributed generation and “The Distributed

Utility”• Micro-Grids• The Super Grid• The Smart Grid• A role for energy conservation and demand response?

4/18/18

3

HISTORY: SYSTEM EVOLUTION

6

1930s – 1960s 1970s 1990s 2000s – now

Technology

Economics

Demand

Societal Awareness

Industry Structure

Regulatory

WHAT JUSTIFIES AN ENERGY POLICY?

1. Externalities in production and in use2. Issues of intertemporal/intergenerational equity –

Sustainability• Resource depletion• Environment degradation (extraction, emissions)

3. The industry is a natural monopoly4. Economic and Political issues

• Economic growth – energy is an input into everything else• Trade and import dependency• National security, military deployment

4/18/18

4

GOVERNMENT REGULATION

• What does “government regulation” mean?• What is being regulated?• What does a government do when regulating an industry?

• Government role• Determine allowed prices• tax credits for RET, incentives for oil drilling

• Environmental regulation• emissions from production, heating rivers, coal extraction…

• Guidelines for system expansion• Rights-of-way and eminent domain

• System reliability

CREATING A “FREE” MARKET

10

• What are the products?• Who determines:• The market rules?• The price and quantity?• Where buyers and sellers will meet

• What if the free market fails to maximize society’s benefits?• Environment, equity (intergenerational), national

security, trade balances...

4/18/18

5

11

RENEWABLE ENERGY

• Dispatchable renewable energy• Hydroelectric• Hydrogen (depending on how generated)

• Non-dispatchable renewable energy• Wind; solar• System integration issues

• Policy measures• Renewables portfolio standards• Environmental regulations (EPA)

12

ENERGY CONSERVATION?

• The future role for the demand side –the active/interactive customer• Competitive markets currently are one-sided,

supply-side only• How can we get demand-side participation in

energy markets?• What is the impact of our non-involvement?

4/18/18

6

13

ENERGY CONSERVATION

• Six factors for the reduction in load: (1) Role of the media and the Internet in increasing public

awareness of the crisis; (2) Fossil fuel prices; (3) Utility energy efficiency programs; (4) Rebate programs (appliance purchases); (5) Independent System Operator (ISO) load

management/demand response programs; and (6) Other state programs

• Such as energy use reduction by Federal, state, and local government facilities and partnerships with the private sector.

GRAND CHALLENGE FOR THE FUTURE GRID

• Design an electric power system that takes full advantage of the convergence of energy, communications, sensing, and computing technologies in a cyber-physical system that enables society to reach its diverse energy objectives, such as 50% renewables or 80% carbon reduction by 2050.• Part of the challenge is to make the transition to high

levels of renewable resources transparent to users of electric energy • Relating to both reliability of the electric supply as well as cost and necessary

changes to consumer behavior.PSERC.org

4/18/18

7

15

17

MIC

ROG

RID

4/18/18

8

MICROGRID

• A group of interconnected controllable loads and distributed energy resources (DER) • …with clearly defined electrical boundaries • …that acts as a single controllable entity with

respect to the grid • …[and can] connect and disconnect from the

grid to enable it to operate in both grid-connected or island mode.

19

20

• Cogeneration• Focus on providing energy close to the load to allow for

co-generation of heat & electricity• For northern regions

• Photovoltaic systems (& solar hot water…)• Warm, sunny climates

• Islanding of the micropower system à improved reliability• Total energy efficiency objective

MICROGRID

4/18/18

9

MICROGRID TOPOLOGY

22

DISTRIBUTION SYSTEM ARCHITECTURE

23

4/18/18

10

24

DISTRIBUTED UTILITY à MICROGRID à ______?

Regulatory Process and Policy

System & Market Operations(high voltage grid)

SMART GRID

• Definition?• Elements/Components?• Stakeholders – who is affected by smart grid

developments• Utility industry• Customers – R, I, C• Appliance and electronics manufacturers and suppliers• Renewable energy producers• State and local legislators• Federal gov’t – NIST, NERC, FERC, Congress, Executive (ARPA-E) 25

4/18/18

11

THE SMART GRID (SMARTGRID.GOV)

• Includes the digital technology that allows for two-way communication between the utility and its customers, and the sensing along the transmission lines is what makes the grid smart. (smartgrid.gov)

• https://www.smartgrid.gov/the_smart_grid/smart_grid.html

THE SMART GRID (ENERGY.GOV)• Our electric infrastructure is aging and it is being pushed to

do more than it was originally designed to do.• Consumers can better manage their own energy

consumption and costs with easier access to their own data.

• Utilities will benefit from a modernized grid, with improved security, reduced peak loads, increased integration of renewables, and lower operational costs.

• “Smart grid” technologies are made possible by two-way communication technologies, control systems, and computer processing.

4/18/18

12

THE SMART GRID – NIST

• A nationwide network that uses information technologies to [help] deliver electricity efficiently, reliably and securely• Bi-directional power flow, with 2-way

communication and control…• …that leads to new functionalities and

applications

THE SMART GRID – EPRI

• The concept architecture proposed that • “Smartness” for the power grid could reside at end

nodes, • Where information exchanged between a resource

controller and individual devices or systems would modify energy consumption.

4/18/18

13

NREL SMART GRID EDUCATION SERIES

• Using Automated Network Detection & Response to Visualize Malicious IT Events Within Power Systems

• Annual Cybersecurity & Resilience Workshop• Real-Time Optimization of Distribution Grids for Increased

Flexibility and Resilience• Using MultiSpeak Data Model Standard & Essence Anomaly

Detection for ICS Security (industrial control systems)• Danger of Prolific Cybercrime and Network DDOS from

Unprotected IoT Devices (distributed denial of service)• The Industrial Immune System: Using Machine Learning for Next

Generation ICS Securityhttps://www.nrel.gov/esif/sges-webinars.html

NREL SMART GRID EDUCATION SERIES

• Software Patching Lessons Learned: An Interesting Perspective• Using Streaming Analytics for Effective Real Time Network

Visibility• Solution for Data Security Challenges Faced by Smart Grid

Evolution• Deception Based Intrusion Detection & Prevention for SCADA

Environments (supervisory control and data acquisition)

• Introducing AgilePQ DCM (Digital Conversion Module)• An Introduction to FIDO and Why It Matters• FIDO: alliance for standards based, interoperable authentication

4/18/18

14

NREL SMART GRID EDUCATION SERIES

• Smart Grid Support• Hitachi Consulting Vision for Environmental Sustainability• Video Surveillance System Security & NERC CIP Compliance

(critical infrastructure protection)• Cybersecurity Technology & Architecture Dialogue• Blackridge & Soha Cybersecurity Technologies• Industry Outreach for OE CEDS Roadmap

Initiative/Cybersecurity in Connected Homes & Buildings • DOE Office of Electricity Cybersecurity for Energy Delivery Systems

• Hardware Security for Smart Grid End Point Devices

NREL SMART GRID EDUCATION SERIES

• Role of Software Defined Networking and WAN Virtualization in Securing SCADA Systems

• IoT/PowerMatcher Transactive Energy for Smart Cities• Internet of Things – everything has Internet enable sensor

• Nonlinear Oscillators and Self-Organizing Power Electronics Systems

• Secure and Reliable Grid Integration of Distributed Energy Resources/CAISO Communication via Remote Intelligent Gateway (California Independent System Operator)

• Insecure Field Devices on the Smart Grid: Cyber Risks, Damage Potential, and Practical Solutions

4/18/18

15

35

THE SUPERGRID CONCEPT

• A network of underground, DC superconductors to augment the existing electric grid to transfer large amounts of energy from remote, sustainable resources• energy flow of electricity and hydrogen• hydrogen could replace gas for transportation• the ability to store H2 would allow much greater use of

resources such as wind and solar• one promising material is magnesium diboride (MgB2), which is

superconducting at 39K

36

THE ENERGY PIPELINE –LESS THAN ONE METER IN DIAMETER

MgB2

MgB2

ElectricalInsulation

ThermalInsulation

VacuumLiquid H2@ 21 K

± 50,000 Vdc100,000 A

10 GW

4/18/18

16

38

BURIED UNDERGROUND NUCLEAR PARKS

4/18/18

17

40

SUMMARY

• History of system evolution• Different views on power system evolution• Methods to promote a favorite technology

• DU – system level evolution• Microgrid – localized improvement in energy

efficiency• Supergrid – a way to promote nuclear power?• The Smart Grid – adds communications

technologies and demand response