Smart Grid Communication Strategy

Shekhar Gupta Manager Network Planning Ops Century Link December 8th, 2009

What is the Grid?

The grid is the integrated network incorporating the generation, transmission and distribution of electricity

Generation
10,000 Power Plants

Transmission Distribution
157,000 miles of high voltage transmission lines Substations step down voltages and distribute to hundreds of thousands of miles of lower voltage lines.

Customer
Customers electric systems

3 Major Interconnections, 8 Regions, 135 Balancing Authorities

Todays Grid
Over 3100 Electric Utilities
Generation of power is mostly centralized and large scale. Electricity travels the path of least resistance hence it is not easy to control its path through the network. Customers do not choose their source of electricity as service provision is territorially based Energy prices are mandated with little consumer choice

Public Utilities

Electric Cooperatives

Stock-holder Owned Utilities

Large stock-holder owned utilities handle majority of customers

Elec. Coops Public Utilities Stock-holder Owned Utilities

Todays Grid is Under Stress

Todays power grid is wasteful, costly, inefficient and dumb 1
The US energy grid is antiquated

Much of the power delivery infrastructure was designed before 1960 The Near-term retirement of many aging plants is projected Power interruptions and disturbances cost the U.S. electricity consumer at least $79 billion per year1 A recent rolling blackout caused an estimated $75 million in losses in Silicon Valley alone. 2 When the Chicago Board of Trade lost power for an hour during the summer of 2000, trades worth $20 trillion could not be executed. Congestion in distribution and bottlenecks affect many parts of the grid.

Inefficiency and failures are costly

Todays grid is increasingly operating at its limits

facing shortcomings in capacity, reliability, security and power quality 30% increase in demand expected by 2030

America faces a significant need for new electric power generation

1. Luxs Research, Alternative Power and Energy Storage State of the Market Q4 2008: Weaving the $65 Billion Power Web,

What Utilities Need

Some major utility needs are: Revenue Impacting

Near real time usage status delivered in regular intervals; on-demand response Service integration with billing systems New products and services such as time-based rates, pre-payment, etc Eliminate mechanical meter billing loss Improve response to power outage / restoration

Expense Impacting

Integrate utility network management systems Manage peak load; reduce peak rate better control localized generation Reduce meter reader costs Reduce service disconnects / reconnect costs Reduce outage support calls Improve technician dispatch accuracy

Large utilities may own & operate all domains

Smart Grid Drivers

Electric Utilities: Current Situation / Challenges Todays power grid is aging, inefficient and under stress Power demand expected to increase by 30%-50% over next 10-20 years;

prices are expected to increase to help manage demand Grid cannot easily integrate alternative power generation and storage

Environment Economic: prolonged recession, business & consumer managing spend Social: green movement, carbon footprint, hybrid/electric vehicles,

recycling, etc. Market: dynamic, emerging marketplace, new players in energy sector (eg, wireless, Google, Cisco, start-ups) Political/Regulatory: energy is top priority for current administration; mandates for electric utilities; job creation

Building a smart grid is a priority with many stakeholders Rural America may have different Smart Grid challenges

Tomorrows Smart Grid changes the paradigm

Todays power grid is wasteful, costly, inefficient and dumb. However, the advent of distributed generation, distributed storage, and distributed intelligence will change power infrastructure into an intelligent and more nimble power web1

Smart Grid enhances todays grid via.

A communications overlay Distributed Intelligence throughout the grids ecosystem Automated & remote control of grid components New energy sources (solar, wind, etc.)

New energy storage means

Many on-premise monitoring and control devices
1. Luxs Research, Alternative Power and Energy Storage State of the Market Q4 2008: Weaving the $65 Billion Power Web,

Smart Grid Delivers Solutions

Smart Grid is about beefing-up the electrical grid and enabling it via a communications network Smart Grid implements a data network overlay to the electric grid to measure, manage, and control the grid Beefing-up the grid enables new electrical solutions such as alternative energy sources and electric automobiles
Smart Grid Overlay Data Networ k

Domain
Generation

Generation
Step-Up Sub-station

Transmission
Step-Down Sub-station

Transformer

Distribution

Customer

Customer

The SMART GRID is a network architecture, protocol & a framework for development
Re-engineering Power distribution and control It integrates communication technologies with the electric grid, allowing for real-time, twoway communication between the utility, the consumer, and throughout the distribution grid Its an organizing framework for broad and disperse development activities aimed at modernizing the grid It energizes a competitive marketplace for electricity Its a fully automated power network Smart Grid will revolutionize the transmission, generation and storage of energy

Its the widely accepted Framework for Modernizing Todays Power Grid

Smart Grids Design Characteristics

Enhanced availability of power
Quality, Distribution, Magnitude, minimal congestion & constraint Not only large, but also smaller power plants with various energy sources (wind,
solar, etc.)

Distributed energy generation and storage

Democratic and Participatory

Consumers actively participate and bring value Increases choice in energy / Redefines demand response Encourages new entrants and new devices Energy prices will be fluid, responding to load, time of day, source, etc. Customers will be able to choose the source(s) of their energy Sensing and measurement grid improve load balancing characteristics Minimal transmission congestion Minimizes user impact from problems

Open Access - Enabling the marketplace

Efficient

Self-healing

Resistant to attacks Isolates faults

Its a big vision with plenty of onramps

SmartGrid Ecosystem has many Stakeholders

System Integrators Utilities
IBM, CapGemini, Accenture, SAIC, SAP

Data Collection Technologies

Meters
Itron, Landis+Gyr, Elster, GE, Sensus, Echelon Itron, Sensus, Cellnet, Elster, DCSI, Cooper / Cannon, Trilliant, Tantalus, powerOne data, Hunt

Backhaul Technology Providers

Embarq, AT&T Cingular, Verizon, Rogers Wireless, Tropos, Corinex, Current, Arcadian Networks, Earthlink, et.al.

Data Collection Hardware

IBM, HP, Dell AMI vendors, IBM Tivoli, HP OpenView, Microsoft

Regulatory
PUC, Federal

Distribution Automation
S&C Electric, Cooper, Cleveland Price

Demand Response
Comverge, EnerNOC, Cannon, Carrier, Honeywell, Golden Power, Corporate Engineering Systems

HAN, Gateway
Aztech, Blue Line, Riga, Centimeter

Alliances and Organizations

ZigBee Alliance, OpenHAN, Intelligrid, GirdWise, OpenAMI, EPRI, ANSI C12 / NEMA, DRAM, DRCC

Consultants
KEMA, Enspiria, Michael Weibe, Enernex

Meter Data Management

Itron, Oracle, eMeter, Nexus, EnergyICT, EnerNOC
Source: M2M United 2009

Smart Grid ecosystem has many potential partners

Stakeholders of the Vision

National Government (s) including DOD, DOE, Agriculture, Energy Regulatory, Homeland Security

National Energy Technology Laboratory

Regional, state, Municipalities and local government agencies Electrical and gas utilities Industry Players: Electrical equipment and IT manufacturers & System developers Consumers Research laboratories & universities International agencies and trading partners (particularly Canada & Mexico) Public interest organizations, environmental groups, and labor unions Investors

And Communications Companies (Not included in Governmental Reports)

Yet the Vision is still formative

SmartGrid Standards Overview

(Example listings - not complete)
Example Members Retailers Aggregators Regulators Customers Providers MDMS CIS/Billing OMS WMS EMS/DMS Routers Towers Ground Stations Repeaters Rings Example Technologies Internet Protocols World-Wide Web ebXML IEC 60870-6 ICCP

External
Portal

Enterprise
Metering System

IEC 61970 IEC 61968 Web Services Multispeak Message Buses SONET, WDM, ATM MPLS Frame Relay Satellite Microwave IEC 61850 DNP3 WiMAX BPL / PLC Wireless Mesh ADSL Cellular Cable (DOCSIS) ZigBee WiFi LonWorks BACnet HomePlug OpenHAN

WAN
Collector

Field LAN
Meter / Gateway
Normal NOR Critical PEND MAL Emergency Program ACTI RID ING Emergency Peak Event OV Stage 1 VE Stage 2 ER E

Relays Modems Bridges Access Points Insertion Points Thermostats In-Home Displays Smart Appliances Field Tools PCs Building Automation

Current Temp 03/03/2007

8:48am

HAN
Source: Enerex 2009

Stat us

Progr AW am: AY

Generic Architecture Components

Customer Utility

Data
Smart meter

Smart Grid and Local Energy Networks

Efficient Building Systems Internet Renewables PV

Utility Communications

Advanced Meter Infrastructure (AMI) is the main Utility application Local energy management enables end-user participation in smart grid

Consumer Portal & Building EMS

Dynamic Systems Control

Advanced Distribution Metering Operations

Control Interface

Plug-In Hybrids Smart End-Use Devices

Smart Grid enables energy management at end-user devices

Integrates new energy solutions at end-user locations

Data Management

Distributed Generation & Storage

Local energy management is an emerging market

What we must know AMI is the Utilitys Cornerstone

Utilities view Advanced Meter Infrastructure (AMI) as the foundation for the future
Incremental Value Capture Capital Build-Up
Extended Utility Roles

Q: How do utilities make smart grid projects a winner?

A: Build upon previous investments

Incremental investments

Communications bandwidth Business development capital

Expected Value

Incremental utility-side capital

Demand Response Distribution Operations & Automation
Programmatic, customer-facing and physical device management systems

Incremental field capital and knowledge-based applications

Sensors & device controllers Information management

Benefits from AMI/Smart Meters cover 60% - 70% of capital costs

Initial capital outlay

AMI
Meter functionality Communications infrastructure Head-end and legacy systems modifications

Incremental Capital Commitment

Source: AEP 2009

Utilities may seek to provide some of the same communications services

Smart Meter
Smart Meter Features & Benefits Automated Meter Reading Saves labor Real-Time Consumption Modifies user behavior Demand Response Manage peak demand Smart Meters usually involve a different technology mix, such as real-time or near real-time sensors, power outage notification, and power quality monitoring. The system provides a wide range of advanced features, including the ability to remotely turn power on or off to a customer, read usage information from a meter, detect a service outage, detect the unauthorized use of electricity, change the maximum amount of electricity that a customer can demand at any time; and remotely change the meters billing plan from credit to prepay as well as from flat-rate to multi-tariff. These meters are fully electronic and smart, with integrated bi-directional communications, advanced power measurement and management capabilities, an integrated, software-controllable disconnect switch, and an all solid-state design.

Utility Communications Architecture ANSI C12.22 Network Topology

C12.22 network:
Abstracts utility data
requirements to higher protocol layers Utilizes secure, encrypted communications at lower layers Designed with flexibility to use proprietary or standard communication networks at lower layers Provides for interoperability at end devices Allows system integration with 3rd party devices through common standards-based interface Supports 1-way and/or 2-way network communication paths Enables enhanced security, reliability and speed for transferring end-device data

Communication Network

Telecom empowers the smart grid via networks, devices and services
Smart Grid Comm. Network
flexible communications architecture, fiber, copper, wireless technologies, Transport, BPL Devices integrated with broadband

Smart Devices

Web-based solutions, Portal

Smart Grid Services

Sensors, Smart Controls, Home energy hub, routers, switching, interfaces, appliances, etc.

Managed Network services, energy monitoring services, (secure, SLA)

Whos Getting Involved?

Google AT&T, Verizon Hopes to become the underlying platform for home energy management. Introduced Power meter, online app that tracks home energy use. 3rd parties have adapted Ts or Vs wireless high speed cellular data network. To give utilities 2-way communications with meters. Ambient
Launches X-3000 Node Certified for Use on the Verizon Wireless Network; Itron & SmartSynch on AT&Ts.

Black & Veatch ZigBee Alliance, HomePlug alliance

In Oct 2008 expanded its integrated network services to provide telecommunications infrastructure services for electric utilities. Zigbee (wireless platform for home sensing & monitoring) joined HomePlug (connectivity over residential electric wiring) to create open platform and protocols for Smart Grid

IBM
Xcel Energy (XEL) Many Startups

Signed $9.6M contract to bring Broadband over powerline (BPL) for rural electric cooperatives and their customers.
building a $100 million Smart Grid City in Boulder, Colo.
Comvere COM) EnerNoc (ENOC) Echelon (ELON) : Making devices and systems that let consumer monitor and adjust their electricity use in real time Tendril - Smart meter with open platform for other devices in-home display shows electricity usage GridPoint Inc., intelligent hub connects location to a renewable energy source, utility grid, and online energy management tools.

Obama Administration

Congress is betting a $4.5 - $11 billion slice of its economic stimulus package on the development of the smart grid. President Obama is calling for another 40 million smart meters installed using funds from the stimulus program

Time Horizon: DOE Roadmap for Modernizing Americas Electric Delivery System

Time Horizon
Large scale smart grid integrated solutions will be partially underway in places such as Texas within five years. It will be obvious to everyone within a decade. It will be mainstream within two decades. The winners will be those who start planning today for that brave new world. Those who understand that to prosper in that world, you will need new, smarter business models.* Why Now? The Stimulus bill and other factors are bringing key conversations to a head.

Telecom Industry shouldnt want standards laid down by others before adding its voice; Telecoms should seek to be courted as partners and avoid being locked out of value; Pivotal choices will be made for the Smart Grid in 2009 and Telecoms need to claim a place at the table.

* Berst, Jesse, smartgridnews.com Smart Grid Millionaires

http://www.smartgridnews.com/artman/publish/industry/Smart_Grid_Millionaires_199_printer.html

Roadmap Partners *

* Department of Energy

Smart Grid Communications Portal

Off-Premise On-Premise The communications portal serves as the onpremise clearinghouse and data processor for all energy related appliances and devices. It relies on a customers communications line.

Solar Energy Source

Energy Provider A

User Interface

Controls

Energy Source B Smart Meter

Smart Grid Comm. Portal

thermostat Heater Air conditioner Appliances

Internet Lights & Loads

A Specific Example for Service provider to consider - Smart Grids Communication Portal
A Communications portal could sit between consumers home network and the wide area network. The portal could enable two-way, secure, and managed communications between consumers equipment and energy providers equipment. Performing the work closely related to routers and gateways, the portal could add management features (e.g., expanded choice, real-time pricing, detailed billing, consumption information, and distributed computing) to enable fully networked applications. A user interface available both at home & remotely places control and management of home energy devices as well as distributed energy resources at the end users disposal.

Connected Home Architecture

Home Plug Power Line Alliance

High Speed Home Area Network (HAN)

Limitations: noise interference, distance

Home Plug Command & Control Specification

Low power, low bandwidth, high reliable, power line Complementary to Home Plug For home appliances, security, home automation Demand response & demand management (smart grid) Low cost addition into any device or appliance Plug and play Secured network

Any device on network can be triggered and any device can take action based on a trigger & can also send status. Applications
Automatic Meter Reading and Energy Management - Smart Meter, Thermostat, Circuit Breaker, HVAC, Water heater, power measurement, data collecting, load controller, smart switches, etc. Demand Response and Demand Management Home Appliances Automation, remote command and control. Actuators Ceiling fan, shade and drape control, audio source control, audio volume control, gate controller, door position monitor and controller, & solenoid controllers, etc. Monitoring Security and Safety including remote access and control via the internet. Street light control; Industrial Automation; Sensors and Life Safety Devices Smoke detector, motion detector, water, heat, health monitoring, etc; Various indoors controllers Lighting control, switches, and dimmers, door and windows lock, etc.

ZigBee
San Ramon, Calif. - August 25, 2008 Today utilities led by American Electric Power, Consumers Energy, Pacific Gas and Electric Company, Reliant Energy, Sempra, and Southern California Edison are working with the ZigBee Alliance and the HomePlug Powerline Alliance to develop a common application layer integrated solution for advanced metering infrastructure (AMI) and home area networks (HAN). Using the robust capabilities of the ZigBee Smart Energy public application profile as a baseline, the three groups will expand the application layer and enable it to run on HomePlug technology, providing utilities with both wireless and wired HAN industry standards to select from when implementing new AMI programs.

Home Energy Management

Advanced Enhanced

Basic

Fully automated intelligent energy management system

More comprehensive inhome displays (usage, cost, time)

Simple indicator Programmable Communicating Thermostat (PCT)

Other automated/ programmable appliances Electric vehicle charging / storage Distributed generation and storage

Source: Pacific Gas & Electric

Googles Smart Grid Play

High Level Market Sizing by 2015

Electric smart meters
Est. 262 million smart meters
shipped 2007 to 2015
(Frost & Sullivan)

~5% in EQ territory
= ~13.1 million meters Assume $1-2 / month / meter = ~$157 - $314 million / year

Home energy management

~6.6 million HH in EQ territory
(Market Profile)

5% HH penetration

85% online, 25% have HAN, 25% take solution

Assume $10/month/HH
= ~$42 million / year

Additional revenue not captured here

Transport, Network management
services, On-premise energy management for business Smart meters for water and gas double market size
(IMS Meter Report, 2007)

ARRA Smart Grid Stimulus

Stimulus Goals
Smart Grid
Total: $16.6 Billion
Accelerate the development, demonstration and deployment of smart grid technologies, services and practices nationwide. Support the upgrading of the countrys power grid. Support renewable energy and transmission technologies Address the specific energy priorities adopted by the states Facilitate early use of new technologies in energy-related projects

Opportunity Funding Sources

Smart Grid funds 50%, 2-yr projects $4.3Bil
Energy efficiency Block Grants EISA via DOE $3.2 B State Energy Program via States - $3.1 Bil Loan Guarantee Program via DOE - $6 Bil

Can be used for:

New Smart Grid technologies, smart metering Modernization of transmission infrastructure Communication upgrades of energy grid Demonstration projects in rural areas Open protocols & standards Electric Utility OR OTHER PARTY

Smart Grid Systems View

Source: SAIC San Diego Smart Grid Study Final Report