Office of International Climate and Clean Energy. U.S. Perspectives on Future
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1 8 March 2016 U.S. Perspectives on Future Trends for Advanced Grids Russell Conklin Toward the Integration of Smartgrids and Renewables Yokohama, Japan Office of International Climate and Clean Energy
2 Electricity in the United States Source: nerc.com Source: isorto.org 3 separate grids (East, West, ERCOT [Texas]) 3,300 electric utility companies 19,250 generators (1 MW+) at 7,000 locations 775 gigawatt peak demand 200,000 miles of high-voltage lines (144 kv+) 6 million miles of distribution lines 148 million customers $1 trillion in assets $375 billion annual revenues Strong interconnections with Canada; limited with Mexico 2
3 Grid Modernization Vision The future grid provides a critical platform for U.S. prosperity, competitiveness, and innovation in a global clean energy economy. It must deliver reliable, affordable, and clean electricity to consumers where they want it, when they want it, how they want it. Enhance the Security of the Nation Extreme weather Cyber threats Physical attacks Natural disasters Fuel and supply diversity Aging infrastructure Sustain Economic Growth and Innovation New energy products and services Efficient markets Reduce barriers for new technologies Clean energy jobs Achieve Public Policy Objectives 80% clean electricity by 2035 State RPS and EEPS mandates Access to reliable, affordable electricity Climate adaptation and resilience 3
4 Key Future Grid Attributes Reliable - Improves power quality and fewer power outages Secure - Increases protection to our critical infrastructure Resilient - Quick recovery from any situation or power outage Sustainable - Facilitates broader deployment of clean generation and efficient end use technologies Affordable - Maintains reasonable costs to consumers. Flexible - Responds to the variability and uncertainty of conditions 4
5 Practicalities of Smart Grid Tomorrow Integration of renewable and distributed resources (electric cars, smart buildings, PV, energy storage, microgrids, community energy) Shared ownership and responsibility of the electric grid planning and operations Multi-directional flow of energy, information and money Evolved model for the utility business and how it is regulated to ensure reliability, efficiency, affordability, security and innovation Value creation through integrated networks and convergence (smart cities) 5
6 Components for Grid Transformation Technology Availability Electric Vehicles Solar and Wind Energy Storage Residential/Commercial Energy Management Systems Microgrids Emerging Markets: Residential and buildings systems Utility analytics Smart cities New Market Entrants Generation and Management of Electricity by Customers and 3 rd Parties Federal, State and Local Policies Renewable and Efficiency Portfolio Standards Carbon Dioxide Reduction Reliability and Resilience Integration of Distributed Energy Resources 6
7 States Moving on Distribution System Evolution Focus of Regulation and Advocacy Distribution as an enabling platform Expanding customer services Reforming regulation E21 Initiative Utility 2.0 REV Proceeding DPU A Microgrid Initiative AB 327 Implementation Utility 2.0 Initiative IOU Solar PV Ownership Order No Regulatory Proceeding/s Governor Initiative Potential Regulatory Action
8 High Levels of DERs Balancing Authority/ Transmission System Operator FERC NY State Energy Plan By 2030 achieve 40% reduction in greenhouse gases and 50% electricity from renewable sources State Regulator: Applies policies for efficiency, reliability, affordability Rate design (volumetric vs fixed) Utility business model Performance incentives (innovation) Microgrid Adapted from L. Kristov and P. De Martini DSO End-use Customers & behind-the-meter DER Merchant DER Distribution System Operator: Probabilistic forecasting of DER penetration Value determination of DERs (asset deferral and grid services) Distribution resources plan Pricing mechanisms for DERs (contracts, tariffs, spot markets) Transparency in planning to DER providers Integrated planning with TSO and DERs Manage markets and operations
9 Long-Term Investment Strategy Planning tools and supporting information (e.g., cost-benefit data) are not available given the complexities introduced by new technologies and relationships Technology Policy Objectives: Reliability Customers Owners Operators Regulators Decision-Making Framework Markets Resilience Efficiency Sustainability Affordability Requires a holistic examination of: market and business structures, coordination and control schemes, pricing strategies, and regulatory models that incent innovation but maintain reliability and fair cost allocation 9
10 Quadrennial Energy Review Addressed Energy TS&D Infrastructure: Grid Recommendations 1. Provide grid modernization R&D, analysis and institutional support. 2. Establish a framework and strategy for storage and grid flexibility (region and state level) 3. Provide state financial assistance to promote and integrate TS&D infrastructure investment plans 4. Coordinate goals across jurisdictions (market coordination) 5. Value new services and technologies. DOE should play a role in developing framework to value grid services and approaches to incorporate value into grid operations and planning. 6. Improve grid communications through standards and interoperability 7. QER 1.2 is about all things Grid 10
11 Grid Modernization Initiative An aggressive five-year grid modernization strategy that includes Alignment of the existing base activities among DOE Offices An integrated Multi-Year Program Plan (MYPP) New activities to fill major gaps in existing base Other Gov t EPSA FE OE EERE S1 NE CFO SC ARPA-E Development of a laboratory consortium with core scientific abilities and regional outreach Institutional Stakeholders Technology Stakeholders 11
12 Key GMI R&D Activities Security and Resilience Sensing and Measurement 12
13 Sharing Results Outputs (SGIG, SGDP, GMI, etc.) Communication Mechanisms To Advance SGIG Progress Reports Metrics and Benefits Reports Case Studies Presentations/Briefings & Articles Best Practices/Lessons- Learned Consumer Behavior Reports Technology Performance Reports Conferences User/focus groups Partner/stakeholder outreach The business case for smartgrid technology Knowhow in systems integration and communications Cybersecurity practices Architecture and interoperability standards Grid integration with renewable and distributed energy resources Effective customer interactions 13
14 Thank you! Russ Conklin Senior Policy Analyst Office of International Affairs
15 Backup 15
16 Devices and Integrated Systems Characterization and testing of energy technologies for providing grid services to improve system affordability, reliability and sustainability Expected Outcomes Develop new grid interface devices to increase ability to provide grid services and utilization Coordinate and support the development of interconnection and interoperability test procedures for provision of grid services Validate secure and reliability grid operation with high levels of variable generation at multiple scales Federal Role Common approach across labs and industry testbeds for effective validation of emerging technologies Develop common interoperability and interconnection standards and test procedures for industry / vendor community March 14,
17 Sensing and Measurement Sensor development and deployment strategies to provide complete grid system visibility for resilience and prediction Expected Outcomes Advance and integrate novel, low-cost sensors to provide system visibility Incorporate new data streams (e.g. weather Develop real-time data management and data exchange frameworks that enable analytics to improve prediction and reduce uncertainty Develop next-generation sensors that are accurate through disturbances to enable closed-loop controls and improved system resilience Federal Role Common approach across labs and industry testbeds for effective validation of emerging technologies Develop common interoperability and interconnection standards and test procedures for industry / vendor community March 14,
18 System Operations and Control Advanced real-time control technologies to enhance the reliability and asset utilization of transmission and distribution systems Expected Outcomes Deliver an architecture, algorithms, and control frameworks for a clean, resilient and secure grid Advanced operations software platform for predictive operations & real-time adaptive control New power flow control device hardware and concepts Advance fundamental knowledge for new control paradigms Conventional controls Federal Role Convening authority to shape vision of advanced grid architecture Advance fundamental knowledge for new control paradigms for emerging grid to support industry transformation Deliver computational science, materials science & mathematics from National Laboratories to develop integrated faster-than-real-time software platforms and power electronics control schemes Distributed controls March 14,
19 Planning and Design Tools Drive next generation of tools to accurately perform cost-benefit trade-offs and improve reliability of design for deployment new smart grid and renewables Expected Outcomes Incorporate uncertainty and system dynamics into planning tools to accurately capture effects of renewable generation Computational tools, methods and libraries that enable 1000x improvements in performance for analysis and design Couple grid transmission, distribution, and communications models to understand cross-domain effects Federal Role Apply National Lab advanced computing expertise and capabilities to develop new tools for stakeholder utilization Interconnect Feeder March 14,
20 Security and Resilience Expected Outcomes Holistic grid security and resilience, from devices to micro-grids to systems Inherent security designed into components and systems, not security as an afterthought Security and resilience addressed throughout system lifecycle and covering the spectrum of legacy and emerging technologies Federal Role Providing a pathway to comprehensive multi-scale security and resilience for the nation s power grid Lead and establish security and resilience research programs to develop technology solutions and best practice guidance Improve adoption of security and resiliency practices, and provide technology-neutral guidance Inform stakeholders of emerging threats and help address threats appropriate for government response March 14,
21 Institutional Support Expected Outcomes Accelerated state & federal policy innovation due to enhanced State and Regional technical assistance States adopt changes to their regulatory model that better align utility interests with grid modernization and/or clean energy policy goals Methods for valuation of DER technologies and services are defined and clearly understood by stakeholders to enable informed decisions on grid investments and operations Federal Role Enable regulators and utility/grid operators to make more informed decisions and reduce risks on key issues that influence the future of the electric grid/power sector Provide independent, unbiased technical assistance (e.g., information and analysis tools) that address key grid-related policy, regulatory, and market issues Create an over-arching stream of grid-related institutional analysis, workshops, and dialogues to raise awareness of the need for grid modernization March 14,
22 Regional Demonstrations The core technologies, tools, and analyses that will be developed in the six technical areas will feed into Integrated Regional Demonstrations designed to accelerate research outputs to widespread deployment. Three specific types are envisioned: Lean Reserve Bulk Power Systems Goals: Reliable operations with <=10% reserve margin; >33% variable wind, solar New capability for grid operators to leverage and manage distribution-level grid services Data-driven tools for precise, predictive real time grid operations Target Partners: Transmission Utilities System Operators Clean Distribution Systems Goals: Demonstrate reliable and affordable feeder operations with >50% DER penetration Coordinated microgrid(s) control for resilience (20% fewer outages, 50% shorter recovery time) Distributed, hierarchical control for clean energy and new customer-level services Target Partners: Distribution utilities Cities and municipalities with ambitious clean energy goals Grid Planning and Analytics Goals: Use coupled T&D grid planning models with 1000x speed-up to address specific grid-related issues Work with States to evaluate new business models, impacts of policy decisions Target Partners: States and local regulators Distribution utilities New market participants March 14,
23 Proposed Regional Partnerships March 14,
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