Introduction to Smart Grid

Concepts
Presented by
Auriga Corporation
February 10, 2011
 Smart Grid

Agenda
– Definition of Smart Grid
– Potential Benefits of Smart Grid
– Smart Grid – Architecture Overview
– State of the Art Technology
– Current Deployment of Smart Grid in the
US Utilities
– Future Trends
 DOE’s Vision of Smart Grid

“By 2030, the power grid will evolve into an

intelligent energy delivery system that
supports plug-and-play integration of
dispatchable and intermittent low-carbon
energy sources, and provides a platform for
consumer engagement in load management,
national energy independence, innovation,
entrepreneurship, and economic security.”
 DOE’s Vision of Smart Grid

“This smart grid will support the best and

most secure electric services available in
the world and will connect everyone to
abundant, affordable, high quality,
environmentally conscious, efficient, and
reliable electric power.”
 Today’s Power Grid

Source: PG&E
 Future Smart Grid

Source: PG&E
 Smart Grid – Architecture Overview

Advanced Transmission Operations (ATO)

Advanced Metering Infrastructure
– Substation Automation
(AMI)
– Smart Meters – Geographical Information System for Transmission
– Two-way Communications – Wide Area Measurement System (WAMS)
– Consumer Portal
– Home Area Network – Hi-speed information processing
– Meter Data Management
– Advanced protection and control
– Demand Response
– Modeling, simulation and visualization tools
Advanced Distribution Operations
(ADO) Advanced Asset Management (AAM)
– Distribution Management System with – Advanced sensors
advanced sensors – Integration of real time information with other
processes
– Advanced Outage Management (“real-time”)
– DER Operations

– Distribution Automation Source: NETL Modern Grid Strategy

 New Paradigm

How will new technologies change the power

grid paradigm?

• Enables informed participation by customers

• Accommodates all generation and storage
options
• Enables new products, services, and markets
• Provides power quality for the range of needs
in the 21st century
• Optimizes assets and operates efficiently
 New Paradigm

• Addresses disturbances – automated

prevention, containment, and restoration
• Operates resiliently against physical and
cyber attacks and natural disaster
 Today’s Grid vs. Smart Grid

Enables informed and greater participation by

customers
• Today’s Grid
– Consumers have limited information
and opportunity for participation
• Smart Grid
– Informed, involved, and active
consumers – demand response and
distributed energy resources
 Today’s Grid vs. Smart Grid

Accommodates all generation and storage

options
• Today’s Grid
– Dominated by central generation
• Smart Grid
– Many distributed energy resources with
plug-and-play convenience; capabilities
to support high penetration on
distribution system; responsive load to
enhance grid reliability
 Today’s Grid vs. Smart Grid

Enables new products, services, and markets

• Today’s Grid
– Limited wholesale markets, not well
integrated
• Smart Grid
– Mature, well-integrated wholesale
markets, growth of new electricity
markets for consumers; interoperability
of products
 Today’s Grid vs. Smart Grid

Provides power quality for the range of

needs in the 21st century
• Today’s Grid
– Focus on outages and primarily
manual restoration-slow response to
power quality issues, addressed case-
by-case
• Smart Grid
– Power quality is a priority with a variety
of quality/price options – rapid
resolution of issues
 Today’s Grid vs. Smart Grid

Addresses disturbances – automated

prevention, containment, and restoration
• Today’s Grid
– Responds to prevent further damage –
focus is on protecting assets following
a fault
• Smart Grid
– Automatically detects and responds to
problems – focus on prevention,
minimizing impact to consumers, and
automated restoration
 Today’s Grid vs. Smart Grid

Operates resiliently against physical and

cyber attacks and natural disasters
• Today’s Grid
– Vulnerable to inadvertent mistakes,
equipment failures, malicious acts of
terror and natural disasters
• Smart Grid
– Resilient to inadvertent and deliberate
attacks and natural disasters with rapid
coping and restoration capabilities
 New Technologies

OE Smart Grid R&D: 2010-2014 MYPP

 Smart Grid Drivers

• Reliability needs to be maintained or improved

• Aggressive greenhouse gas reduction goals
– State law requires that green house gas emissions
be reduced to 1990 levels by 2020. Further goal to
reduce emissions to 80% below 1990 levels by
2050
• Growing renewable energy mandates
– 20% of electricity must be from renewable sources
by 2010. Governor has directed 33% renewables
by 2020.
• Distributed generation growing rapidly
– 3,000 MW of solar photovoltaics by 2017
• Push for more energy efficiency and demand
response
 Grid Reliability

• Average Cost for 1 hour of Power Interruption

INDUSTRY AMOUNT
Cellular communications $41,000

Telephone ticket sales $72,000

Airline reservation system $90,000

Semiconductor $2,000,000
manufacturer
Credit card operation $2,580,000
Brokerage operation $6,480,000
Source: Resource Dynamics Corporation
 Power Grid Reliability

• “Insufficient” Investment in Grid and Load

Growth
• Diversification of Energy and Storage
Resources
• More, larger and longer transfers
– Volatility
– Smaller margins
 Greenhouse Gas Reduction Goals

• Increases in energy-related carbon dioxide

emissions slow

Annual Energy Outlook 2010

 Renewables Gain Electricity Share

Annual Energy Outlook 2010

 Managing the Load Profile

• Demand Response
– Non-emergency DR can reduce the need for additional
resources
– Automatic or manual response by consumer
 Ideally Successful Load Management

• Close coordination of all resources such as:

– Demand response
– Storage
– Electric vehicles
• Objective:
– Nearly flattened load profile
– Initial improvement in reliability due to lower peak
 Current Power Portfolio

World United States

• 15 TW in 2004 • 3.35 TW in 2004

• 85% from fossil fuels • 84.2% from fossil fuels
– 37% petroleum – 37.1% petroleum
– 23% natural gas – 23.8% natural gas
– 25% coal – 22.5% coal
• 6% nuclear • 8.5% nuclear
• 9% renewables • 7.3% renewables
– 4% biomass – 1.3% biomass
– 3%hydro – 7% hydro
– 0.5% solar – 0.1% solar
 Future Power Trends

World United States

• Current Trends • Current Trends

– 16.9 TW by 2030 – 3.8 TW by 2030
– 28 TW by 2050
• Renewables only • Renewables only
– 11.5 TW by 2030 – 1.8 TW by 2030
Solar Cell Efficiency Chart
 Current Developments - PV

• The current market leader in solar panel efficiency

(measured by energy conversion ratio) is SunPower,
a San Jose based company. Sunpower's cells have a
conversion ratio of 24.2%, well above the market
average of 12–18%.
• Advances past this efficiency mark are being pursued
in academia and R&D labs with efficiencies of 42%
achieved at the University of Delaware in conjunction
with DuPont by means of concentration of light.
• The highest efficiencies achieved without
concentration include Sharp Corporation at 35.8%
using a proprietary triple-junction manufacturing
technology in 2009
 Wind Power

• Wind power is the conversion of wind energy into a

useful form of energy, such as using wind turbines to
make electricity.
• At the end of 2009, worldwide nameplate capacity of
wind-powered generators was 159.2 gigawatts (GW).
• Energy production was 340 TWh, which is about 2%
of worldwide electricity usage and has doubled in the
past three years.
• Wind power is non-dispatchable, meaning that for
economic operation, all of the available output must
be taken when it is available.
 Wind Power

• Worldwide installed capacity 1996-2008

Source: Wikipedia
 Intermittency

• Electricity generated from wind and solar power can

be highly variable.
• Wind and solar power forecasting methods are used,
but predictability of wind or solar plant output remains
low for short-term operation.
•  Intermittency and the non-dispatchable nature of
wind and solar energy production can raise costs for
regulation, incremental operating reserve, and could
require an increase in the already existing energy
demand management, load shedding, or storage
solutions.
 Intermittency

• Instantaneous electrical generation and

consumption must remain in balance to maintain
grid stability, this variability can present substantial
challenges to incorporating large amounts of wind
power into a grid system.
 Solving Intermittency Problem

• Interconnect geographically-dispersed naturally-

variable energy sources (e.g., wind, solar, wave,
tidal), which smoothes out electricity supply (and
demand) significantly.
• Use complementary and non-variable energy sources
(such as hydroelectric power) to fill temporary gaps
between demand and wind or solar generation.
• Use “smart” demand-response management to shift
flexible loads to a time when more renewable energy
is available.
• Store electric power, at the site of generation, (in
batteries, hydrogen gas, compressed air, pumped
hydroelectirc power, and flywheels), for later use.
 Solving Intermittency

• Over-size renewable peak generation capacity to

minimize the times when available renewable power
is less than demand and to provide spare power to
produce hydrogen for flexible transportation and heat
uses.
• Store electric power in electric-vehicle batteries,
known as "vehicle to grid" (V2G).
• Forecast the weather (winds, sunlight, waves, tides
and precipitation) to better plan for energy supply
needs.
 DESERTEC project

• DESERTEC is a concept proposed by the

DESERTEC Foundation for making use of solar
energy and wind energy in the deserts worldwide.
• This concept will be implemented in North Africa and
Middle East.
• Under the DESERTEC proposal, concentrating solar
power systems, PV systems and wind parks would
be located on 6,500 square miles (17,000 km2) in the
Sahara Desert
• Produced electricity would be transmitted to
European and African countries by a super grid of
high-voltage direct current cables.
 DESERTEC Project

Euro-Supergrid with a EU-MENA-Connection proposed by TREC

Grid Energy Storage
 Electricity Storage by Technology

 Power Applications
 Rated for one
hour or less
 Energy Applications
 Rated for longer
Periods
 Energy Storage

 Technologies
 Pumped Hydro
 Compressed Air Energy Storage
 Electromechanical /Super Capacitors
 Flywheels
 Thermal Storage
 ICE Storage
 Solar Hot Water
 Energy Storage

The main problem with most of these

storage technologies is high cost. With
the exception of pumped storage
hydroelectric technology and perhaps
CAES, the other storage technologies
cost over 20c/kWh of cycled energy.
 Energy Storage

Batteries
• Lead-Acid ( Valve-regulated lead acid,
Gel-type)
• Flow ( total energy is provided by a
reservoir of rechargeable electrolyte
that can be as large as needed)
– Zinc-Bromine
– Vanadium-Redox
– Sodium-Bromide
 Energy Storage

• Advanced
– Li-ion
– Lithium polymer
– Nickel metal hydride
– Sodium Sulfur
Storage Technology
 Top Smart Grid Federal Stimulus

Investments by Country in 2010 (in U.S.

Millions)
– China: $7,323
– US: $7,092 (loan guarantees, demo
grants, and renewable tax credits)
– Japan: $849
– South Korea: $824
– Spain: $807
(Germany: $397, Australia: $360, UK: $290,
France: $265, Brazil: $204)
 Pacific Gas & Electric (PG&E)

• Largest planned implementation of Smart

Meters technology in the U.S. to date –
10.3 million meters

• The program will pay for itself over its 20

year useful life through operational
savings, demand response, and energy
efficiency
 Southern California Edison (SCE)

• SCE will install 5 million of the Smart Meters

between 2009 and 2012.
• Advanced metering program could reduce
peak power consumption by as much as
1,000 megawatts
 San Diego Gas & Electric (SDG&E)

• In March San Diego Gas & Electric

(SDG&E) started rolling out 2.3 million
electric and gas meters at its customers
homes.
• The overall savings to customers will
outweigh upfront costs (over the 32-year
life of the smart meter system) by $60
million to $65 million.
 Smart Grid Benefits

• The SmartMeter technology mix will evolve

to take advantage of rapidly evolving
technologies
• Technologies deployed through the
SmartMeter program establish a platform for
future innovations that will benefit our
customers, our operations, and the State of
California
 Smart Grid Benefits

• Reduced labor costs due to remote meter

reads
• Reduced infrastructure replacement costs
as some peak usage is shifted to off-peak
• Reducing stress on the power delivery
system
• Reduced need to purchase expensive
wholesale power to address rapidly rising
peak demand.
 Smart Grid Challenges

What are the challenges to Smart

Grid deployment?

• Development and harmonization of national and

international standards
– Cyber Security
– Regulatory and safety
• Unclear definition of Smart Grid architecture and
business models
• Integration with legacy systems
• Interoperability
 Smart Grid Challenges

• Wide scope of technologies and domain

• Develop hardware and software, sensors and
algorithms and data acquisition and data
management tools for accomplishing real-
time communications and controls for
transmission, distribution, and customer
operations
Thank you!