MAKING SMART GRID A REALITY

Date: 27/01/2011

SMART GRID

THE PACIFIC NORTHWEST SMART GRID DEMONSTRATION PROJECT

Smart Grid projects in the U.S.: the impact of the Stimulus Smart grid technology is designed to improve the power grids reliability and performance by optimizing the push and pull from supply and demand. Electricity generators, suppliers and consumers are all part of the equation and need to understand the value they receive from these investments. A smart grid enhances power delivery and use through intelligent, two-way communication between suppliers and consumers. The U.S. Department of Energy, or DOE, awarded a total of $620 million of American Recovery and Reinvestment Act money to the regional smart grid demonstration projects.

Total = $11B Smart Grid Demonstration Grants (SGDG) Other

$0. $0.62 5

WAPA
$3.25B

Smart Grid Investment Grants (SGIG)

$3.37B

$3.25B

BPA

The Pacific Northwest Smart Grid Demonstration Project (PNW-SGDP) Unique in size and scope, spanning five states and affecting more than 60,000 consumers, the Pacific Northwest Smart Grid Demonstration Project aims at demonstrating and validating new smart grid technologies, as well as informing business cases. The project is lead by Battelles Pacific Northwest Division in Richland, Washington. Battelle is a $6.2 billion non-for-profit organization with a goal of answering technology-based challenges. Project team members include the Bonneville Power Administration, and 11 utilities based in the Pacific Northwest (listed below, with test sites), including investor-owned and municipal utilities, rural electric cooperatives and public utility districts across 5 states (Washington, Oregon, Idaho, Montana and Wyoming).

Pacific Northwest Smart Grid Demonstration Project Test Site Locations and Corresponding Utilities Idaho: Idaho Falls (Idaho Falls Power) / Montana: Northwest Montana (Flathead Electric Cooperative, Inc.), Southwest Montana (NorthWestern Energy) / Oregon: Milton-Freewater (City of Milton-Freewater), Portland (Bonneville Power Administration), Salem (Portland General Electric) / Washington: Ellensburg (City of Ellensburg), Fox Island (Peninsula Light Co.), Kennewick (Benton PUD), Pullman (Avista Utilities), University of Washington (Seattle City Light) / Wyoming: Western Wyoming (Lower Valley Energy).

The demonstration also involves technology infrastructure providers, including Alstom Grid, 3TIER Inc., IBM, Netezza Corp. and QualityLogic, Inc.. Washington State University is also directly involved, in addition to outreach to other academic centers. Funding of the project The project is one of 16 regional smart grid demonstration awards announced by DOE in the fall of 2009. Project participants represent a mix of public and private entities, and will fund 50% of the approximately $178million cost. The rest of the funding is provided by the US Department of Energy (DOE), and managed by NETL (National Energy Technology Laboratory), through the American Recovery and Reinvestment Act stimulus package to support regional smart grid around the nation. DOE wants to show how smart grid technology can enhance the safety, reliability and efficiency of energy delivery on a regional and national level. Objectives: The project expands upon the regions experience in the 2006 DOE-funded Pacific Northwest GridWise Demonstration Project, which successfully tested demand-response concepts and technologies. This project, initiated in February 2010, runs on a timeline of 5 years and is scheduled to end by January 2015. It is a collaborative test of new technologies and capabilities that will make the regional power grid

smarter. It will determine the cost/benefit ratio of several Smart Grid technologies, as well as set up an innovative control system (the Transactive Control System). It will also demonstrate the potential for a safe, scalable and interoperable smart grid for regulated and non-regulated utility environments. At its peak, it could create about 1,500 jobs in manufacturing, installation and operation of smart grid equipment, telecommunications networks, software and controls.

Implementation and benefits of the Pacific Northwest Smart Grid Demonstration Project The PNW-SGDP team is planned to install equipment and technology from 2010 through mid-2012. Then, for about the next two years, project leaders will gather data on smart grid performance from 13 test sites representing the regions diverse terrain, weather and demographics. The project will interact with more than 112 megawatts of electrical resource -- load and generation -- which is equivalent to the electricity needed to serve 86,000 households. The project will operate across five Pacific Northwest States (Idaho, Montana, Oregon, Washington and Wyoming), involve more than 60,000 metered customers, and contain many key functions of the future smart grid. Ultimately, its objective is to move the region and nation closer to establishing a more efficient electricity infrastructure to help contain cost, reduce CO2 emissions, incorporate more wind power and other types of renewable energy, and increase power reliability and stability. This project aims at expanding upon existing infrastructure and testing new combinations of smart grid solutions designed to enhance the power grids reliability and performance. The transactive control system will be the heart of this Smart Grid demonstration: this technology will allow intelligent devices to negotiate with one another, their users and the energy supplier to increase efficiency and reduce overall costs. The project will: validate new smart grid technologies and business models, provide two way communication between distributed generation, storage, and demand assets and the existing grid infrastructure, quantify smart grid costs and benefits, advance standards for interoperability (smooth integration of all elements of the electric system) and cyber security approaches. By ensuring that these outcomes can be readily adapted and replicated, the Smart Grid demonstration will be a reference for the future of the nations electric power grid. How it will be accomplished: 1. The PNW-SGDP team will implement a unique distributed communication, control and incentive Smart Grid system, combining electric transmission and information management. 2. The project will expand the existing electric infrastructure and test new combinations of Smart Grid Solutions (hardware devices, software and advanced analytical tools) in homes and on the grid in 11 Pacific Northwest communities. These solutions will give homeowners more information about their energy use and cost. 3. This data will be collected to provide insights into energy consumers behavior while testing new technologies. Information from consumers involved in the study will flow back for analysis to the Electricity Infrastructure Operations Center, located at Battelles Richland campus. Researchers from the PNW-SGDP will then quantify the costs and benefits of smart grid technologies at both the local and regional level. 4. This transmission, distribution and consumption data generated from the project is expected to enable

the grid to reach a level of performance and real-time capability not currently attainable. Public and private sectors will then be able to reduce the operating costs for utilities, which are usually passed on to consumers. Alstom Grid and the PNW-SGDP Previously the provider of the existing Battelle Emergency Management System, or EMS, Alstom Grid intervenes in the PNWSGDP project by providing its on-line stability solution to the projects transactive control system. This Control Room system provides visualization of renewable resources and as well real-time pricing information. More specifically, Alstom Grid will supply the following benefits: - Real-time Dynamic Incentive signal (based on LMP) - Visualization of Transmission system/pricing - Expertise in analyzing experiment impacts on the bulk power system

Visualization of the network with Alstoms e-terravision platform

The Alstom Grid scope of participation in the project includes the following solutions: - An EMS software platform, to monitor the transmission flows in the footprint of the project, based on network models and data feeds from Bonneville Power Administration. - A Market Management System, or MMS, platform, to calculate the Incentive Signal (LMP) on the test grid to experiments - Simulation capabilities to assist with the projects data analysis (e-terrasimulator) - Visualization (e-terravision/MOI) - Support & maintenance services for these systems during the project - Network Consulting and technical expertise in the design of the experiments and the analysis of the operational and final results The platforms deployed will combine the following Alstom Grid solutions: e-terraplatform 2.5, eterratransmission, e-terrascada, e-terracomm, e-terraarchive, e-terrabrowser