GLOBAL SMART GRID FEDERATION. Eric Lightner June 3, 2014

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1 GLOBAL SMART GRID FEDERATION Eric Lightner June 3, 2014

2 OE s Activities and Programs CONVENER: OE brings together technical and policy expertise, along with a national, system wide perspective, to facilitate a coordinated strategy to meet emerging energy challenges, and to support a secure and resilient energy system. State and Regional Technical Assistance North American SynchroPhasor Initiative (NASPI) Emergency Response (ESF 12) Technical Workshops / Case Studies Future of the Grid Initiative Federal Smart Grid Task Force State and Local Energy Assurance Electricity Advisory Committee RESEARCH SUPPORT: OE invests in cross cutting research at national laboratories, universities, and private industry (including small business), and sponsors the transition of results to a broad set of vendors and utilities, moving innovations into useful applications. CyberSecurity Energy Storage Operations & Planning Tools Advanced Modeling Microgrids Smart Grid Demonstrations Smart Grid Investment Grants Distribution Optimization Outage Management Systems CATALYST: OE encourages new ideas and business models through competition in prizes and challenges, open source software and data downloads, and voluntary participation in standards development activities. Green Button Initiative Apps for Energy Challenge Smart Grid Interoperability Panel/ NIST GridWise Architecture Council Open Source Software & Toolkits 2

3 OE Funding Detail Program/Activity FY 2013 Current FY 2014 Enacted (Dollars in Thousands) FY 2015 Request FY 2015 vs. FY 2014 Clean Energy Transmission and Reliability 23,394 32,383 36,000 +3, % Transmission Reliability 13,648 18,190 18, % Advanced Modeling Grid Research 9,746 10,195 11, % Energy Systems Predictive Capability 3,998 7,000 +3, % Smart Grid 19,968 14,592 24,400 +9, % Cybersecurity for Energy Delivery Systems 29,136 43,476 42,000 1,476 3% Energy Storage 18,355 15,192 19,000 +3, % National Electricity Delivery a 6,626 5,997 7,000 +1, % Infrastructure Security and Energy Restoration 6,149 7,996 22, , % Infrastructure Security and Energy Restoration 6,149 5,997 8,000 Operational Energy and Resilience 1,999 14,600 +2, , % +630% Program Direction 25,569 27,606 29,000 +1,394 +5% TOTAL, Electricity Delivery and Energy Reliability a Formerly called Permitting, Siting, and Analysis b Funding is shown after SBIR/STTR transfers: $2,858 in FY 2013 c Funding is shown after foreign travel savings: $64,400 in FY 2014 FY 2013 Current b FY 2014 Enacted c FY 2015 Request $129M $147M $180M 129, , , , % 3

4 Recovery Act Grid Modernization Programs Recovery Act Grid Modernization Programs Smart Grid Investment Grants (SGIG)* $3.4 billion Smart Grid Regional Demonstrations (SGDP)* $620 million Workforce Training $100 million Interconnection wide Transmission Planning and Resource Analysis $80 million Interoperability Standards (with NIST) $12 million Other Technical Assistance to States on Electricity Policy ($44 million) Local Energy Assurance Planning ($10 million) One time Appropriation $4.5B of Recovery Act Funds Smart Grid Workforce Interoperability Training Standards Workforce Training Investment Grants Smart Grid Interoperability Standards Resource Assessment & Transmission Planning Other Resource Assessment & Transmission Planning Other Smart Grid Demos Smart Grid Demos *Originally authorized by the Energy Infrastructure Security Act 2007, EISA 1306 and EISA

5 DOE ARRA Goals & Objectives and Beyond Leverage deployment of Recovery Act smart grid investments to catalyze and accelerate grid modernization across the U.S. 1. Deploy smart grid technologies and systems as prescribed under EISA and ARRA. 2. Evaluate the performance of these technologies and systems to determine effectiveness and communicate the results and costs/benefits to catalyze greater adoption. 3. Actively engage key stakeholders to better understand and address deployment challenges (technical, organizational, and regulatory) to foster peer to peer learning. 4. Advance the state of the art in cybersecurity to ensure smart grid systems are properly protected. 5. Advance smart grid interoperability and standards to improve efficiency and enable greater adoption. 6. Launch new efforts in R&D based on lesson learned and identified remaining challenges 5 5

6 ARRA Investment into Smart Grid: Projected Impacts Improving current infrastructure and performance of the grid Significant Deployment of Smart Grid Assets leading to: Additional 10% of the population being served by smart meters Additional 5% of distribution circuits being upgraded with advanced automation technology Nearly 100% of the bulk transmission system being monitored by networked synchrophasor technology Grid Performance Improvements: Reduction in peak demand Operations and maintenance (O&M) cost reductions Reliability improvements in transmission and distribution (T&D) systems System efficiency improvements (both T&D) Possible greenhouse gas reductions Establishing the business case to modernize grid Generation of data that will: Lead to an enhanced understanding of consumer behavior with respect to dynamic prices and enabling AMI technologies Demonstrate the technical and cost performance of smart grid and energy storage technologies Establish a common analytical framework with input from key stakeholders (industry, regulators and other decision makers, and consumers) to help them measure impact and benefits of investments into Smart Grid across three major categories Economic Consumer Environmental 6

7 SGIG 99 Projects Funded at $7.9B (includes public and private investments) Planned Total Funds Planned By 2015 Expected Benefit Transmission JS8 $620 million Distribution AMI $1.96 billion $4.05 billion Customer Systems $1.28 billion > 800 phasor measurement units >7,500 automated switches ~18,500 automated capacitors >15.5 million smart meters ~365,000 direct control devices ~240,000 PCTs ~8,000 in home displays Real time voltage and frequency fluctuations visible across the system Outage management, improved reliability, and VAR control Operational savings: fewer truck rolls, automated readings, reduced outage time Increased customer control; reduced peak demand 7

8 Slide 7 JS8 This slide and all of the numbers on it are the original 2009 planned funding amounts and asset counts. Some of these numbers have changed signicantly as of the 12/31/2014 data in terms of estimates at completion and deployed assets to date. Please see slide notes below for exact numbers, also on slide 20 in this deck. Recommend keeping but presenters want to point out that these are planned, not actual numbers. Jessica Schiavone, 5/23/2014

9 SGIG Progress Overview as of SGIG Program Schedule 90 of 99 projects are 70% complete or more as of

10 Total Combined SGIG Spending Nearly 88% Complete as of Projects; 228 Utilities and other Organizations Planned versus Actual SGIG Expenditures Device Device Deployment Status Planned Progress (12/30/13) Smart meters 15.5 M 15.3 M (99%) Automated feeder switches Automated capacitors Networked PMUs 7,500 8,649 (100+%) 18,500 12,575 (68%) 800 1,001 (100+%) 9

11 57 SGIG Electric Distribution Reliability Projects Planned versus Actual Automated Feeder Switch Installations Observed Changes in Reliability Indices from Automated Feeder Switching Automated Switches Number of Projects 46 Number of Automated Switches Expected at Completion Number of Automated Switches Installed (as of December 2013) Investment to Date at least 7,500 8,649 $430 million Reliability Indices SAIFI MAIFI SAIDI CAIDI Description System Average Interruption Frequency Index (outages) Momentary Average Interruption Frequency Index (interruptions) System Average Interruption Duration Index (minutes) Customer Average Interruption Duration Index (minutes) Range of Percent Changes 11% to 49% 13% to 35% +4% to 56% +29% to 15% 10 10

12 CNP s Intelligent Grid 2010 to 2014 (Initial Deployment Area) Implement Advanced Distribution Management System Intelligent Grid Switching Device Installed 600 automated switching devices on 200 circuits (13 percent of grid) Install distribution line monitors with RTUs Leverage our AMS investment in communications and outage data Distribution Control Center Integration of new DSCADA system with legacy remote control switches While initial construction covers about13% of CNP s service area serving 280k customers, automation improvements benefit consumers in the entire system. 11

13 Customer Benefits: Intelligent Grid Initial benefits More precise identification of outage locations Faster restoration of electric service Faster performance of circuit switching to isolate fault Long term benefits Improved reliability and faster restoration, especially in major storms Enhanced, improved customer communications All automation Mar Outage Events Customer Outage Minutes Avoided by Automation Average Reliability Improvement 7.1 million 32.8 million 27.1 million 44% 26% 22% 12

14 Example - Distribution: EPB of Chattanooga Improving Operational Resiliency in Tennessee Deployed ~1,200 automated feeder switches Expects 40% reduction in customer outage minutes; worth at least $35 M/year July 2012 Storm response: Avoided costs to customers Eliminated 500 truck rolls Restoration complete 1 ½ days earlier $1.4 M cost reduction to utility Operating Resiliently to Attacks and Natural Disasters 13

15 26 SGIG Volt/VAR Projects Planned versus Actual Automated Capacitor Installations as of Automated Capacitors Number of Projects 43 Number of Automated Capacitors Expected at Completion at least 18,500 Observed Changes in Line Loss Reductions and CVR For the 31 feeders that reported hourly load data, one half observed line loss reductions from 0% 5%, and 5 feeders experienced loss reductions greater than 5%. Number of Automated Capacitors Installed (as of December 2013) Investment to Date 12,575 $120 million Two projects reported conservation voltage reduction results from 1% 2.5% 14 14

16 Impact: Conservation Voltage Reduction (CVR) Objective: Reduce energy consumption and peak load via operating at the low end of the ANSI C84.1 Range A Band (114V 126V) Load Tap Changer Voltage Regulators DMS Capacitors Line Sensors Near real time feedback loop enables optimized operation of these components. However, deployment strategies differ with respect to objectives and levels of sophistication. Results Averaged across 11 Circuits Customer Energy Reduction Peak Demand Reduction Initial Results Potential Customer Savings (estimated for a 7 MW peak circuit with 53% load factor) 2.9% 943 MWh/year $75,440 (at $.08/kWh) 3% 210 kw Defer construction of peaking plants 15 15

17 Planned versus Actual Smart Meter Installations as of Smart Meters Number of Projects 65 Number of Smart Meters Expected at Completion 15.5 million Number of Smart Meters Installed (as of Dec 2013) 15.3 million Investment to Date $2,730 million DOE AMI Expenditure Breakdown* 65 SGIG AMI Projects Observed AMI Operational Efficiency Improvements Meter O&M Savings Metrics Change in meter operations cost Change in vehicle miles driven, fuel consumption, and CO 2 emissions Range of Percentage Improvements 13% to 77% 12% to 59% *Additional DOE investment includes $350 million in customer system devices, $50 million in web portals, and $190 million in data management systems, as of 12/31/

18 Key Research Objectives of SGIG- Funded Consumer Behavior Studies Quantify the types of customer response: Reduce peak demand Shift consumption to other times Reduce overall consumption Capture the marginal effects on customer response associated with (in combination and separately): Pricing (type and enrollment) Enabling control technology Information (feedback) technology Customer education Understand key customer characteristics that help to explain differential response and influence customer acceptance & retention Understand differences in acceptance, retention and response when rates offered under opt in (voluntary) vs. opt out (default) conditions 17

19 Impact: Peak Demand Reduction from AMI, Pricing, and Customer Systems Selected examples from SGIG projects reporting initial results Project Elements OG&E 770,000 customers MMLD 11,000 customers SVE 18,000 customers Customers Tested 6,000 residential 500 residential 600 mostly residential Time Based Rate (s) TOU and VPP, w/cpp CPP CPP Customer Systems Peak Demand Reduction Outcome Customer Acceptance IHDs, PCTs, and Web Portals Up to 30% 1.3 kw/customer (1.8kW/customer w/cpp) Deferral of 170 MW of peak capacity by 2016 with 20% participation Positive experience, many reduced electricity bills Web Portals 37% 0.74 kw/customer Lowers total purchase of peak electricity Positive experience, but did not use the web portals often Web Portals Up to 25% 0.85 kw/customer Lowers total purchase of peak electricity Interested in continued participation, many reduced electricity bills 18

20 Publishing reports on the impact of SGIG investments 1. Synchrophasor Technologies and Their Deployment in the Recovery Act Smart Grid Programs (August 2013) 2. Reliability Improvements from the Application of Distribution Automation Technologies Initial Results (December 2012) 3. Application of Automated Controls for Voltage and Reactive Power Management Initial Results (December 2012) 4. Operations and Maintenance Savings from Advanced Metering Infrastructure Initial Results (December 2012) 5. Demand Reductions from the Application of Advanced Metering Infrastructure (AMI), Pricing Programs, and Customer Based Systems Initial Results (December 2012) 6. Analysis of Customer Enrollment Patterns in Time Based Rate Programs Initial Results from the SGIG Consumer Behavior Studies (July 2013) Recent SGIG Analysis Reports 7. Economic Impact of Smart Grid Investments (Apr. 2013) Reports are available for download from 19

21 Focusing on the Customer A Key Element for Success Green Button Provides electricity customers a method of securely downloading easy to understand energy usage information from their utility or electricity supplier Apps for Energy Challanges Encourage the development of applications that help customers make the most of their Green Button Data Consumer Behavior Studies in SGIG Projects Provide an opportunity to advance the electricity industry s understanding of consumer behavior through the application of statistically rigorous experimental methods. Regional Peer to Peer Workshops Convene stakeholders to share best practices and lessons learned Smart Grid Customer Engagement Guide Develop a common framework by which utilities, regulators, and decision makers can design and evaluate successful customer and stakeholder outreach programs Voluntary Code of Conduct (VCC) for Smart Grid Data Privacy Establish a common set of practices around data privacy that will foster consumer trust and provide a resource for decision makers evaluating privacy practices and policies Power Over Energy Campaign Launch a multimedia campaign to help inform consumers about how electricity works, their electricity use, and steps they can take to manage and conserve energy. 20

22 A multistakeholder process to develop a Voluntary Code of Conduct (VCC) for utilities and third parties providing consumer energy use services. The code will establish common practices that protect the access, use, and sharing of customers electricity usage and related data. Participants: Utilities, consumer advocates, vendors, third parties, state and federal governments Key Elements Convened first meeting in Washington, D.C. in February 2013 All meetings are open to the public and are webcast to ensure the widest participation possible. Voluntary Code of Conduct (VCC) For Smart Grid Data Privacy Work Groups Mission Statement Notice/Awareness Choice/Consent Access/Participation Integrity/Security Management/Redress Implementation Integration Intended to be applicable to, and voluntarily adopted by, both utilities and third parties VCC will be adopted in its entirety, but limited exceptions allowed (due to laws, regulatory guidance, governing documents) if clearly noted. Work Groups have drafted principles. Final draft document and implementation proposal are under development Expected completion in fall

23 Voices of Experience Smart Grid Customer Engagement Compilation of industry insights and lessons learned regarding smart grid customer engagement, which is a resource for utilities rolling out smart grid programs. Key Elements Nine month process that involved a wide variety of stakeholders, including utilities, vendors, regulators, consumer advocates, and others from across the electricity industry. Released in July 2013 Recognizes that one size does not fit all Offers practical advice in the form of Industry Insights from utilities that have implemented smart grid projects to educate and engage their customers. It includes direct quotes from a full range of utilities (IOUs, municipalities, and cooperatives) Links to supporting resources and tools Leans towards advanced metering infrastructure; however, the principles apply broadly to customer engagement efforts Download at: 22

24 Voices of Experience II Advanced DMS Facilitate industry discussions to capture recommendations and insights regarding advanced distribution management system (ADMS) deployments so the knowledge and experience gained through these projects can enhance future grid modernization efforts. Approach and Expected Outcomes Project scope and outcome directed by leadership team of industry experts in ADMS technology Kick off meeting on May 1 st hosted by CenterPoint Energy 44 attendees Participants: Individuals who work for utilities that have either implemented or are working towards implementing ADMS Work group members will participate in topic focused discussion groups Development of a Voices of Experience report that captures the advice and insights from current deployments in the utility s own words Benefits Understanding Current Capabilities & Limitations Leverage experience from leading utilities to help facilitate grid modernization across the U.S. Provide better understand current technology, it s benefits, limitations, and future needs Capture specifics on current deployments 23

25 An energy literacy campaign created by a coalition of energy and environmental groups, which the Department of Energy joined in April Launched to educate, motivate and empower consumers to make smart decisions about how they use electricity. Approach Facebook and ad campaign are the central hub of the campaign Website is important credibility channel Engagement channels are Facebook, Twitter, Pinterest & YouTube Engagement Rate: 5.83% (Facebook Avg 0.35%) Power Over Energy Initiative Reached 63 million consumers through all channels; 12,00 website visitors Over 154,000 Facebook Likes in 45 countries 92% from US, Brazil & Malaysia 5% from UK & Australia 3% from 40 other countries split between males/females 75% between years Click through rate of.67% (avg=0.045%) YouTube: Gained 215,000 video views 1090 Twitter followers & 800 tweets, 1850 following 24

26 The Future of the Grid Evolving to Meet America s Needs Partnered with GridWise Alliance to hold a series of multi stakeholder regional workshops to determine the changing operational, business and policy requirements needed in the electricity industry over the next 20 years to sustain the Nation s economic prosperity and facilitate the industry s transformation. Overview and Approach Understanding Industry Challenges Four one day regional workshops plus National Summit Multistakeholder: Utilities (ISOs, Munis, Co ops, PUDs, PPA), Regulators, State Energy Offices, Consumer Advocates, Business Leaders, Technology providers, Academics and Researchers Pre read materials outline major issues and encourage thoughtful conversations Summary Reports developed for each workshop National Summit will take place June 26 in Washington, DC. Initial Findings Grid complexity is increasing (internally sophisticated, outwardly simple interface) Transmission and distribution will become further integrated requiring cross functional visibility and communications from central generation down to end device High bandwidth, low latency, cost effective communication system will overlay the grid Seamless integration of wholesale and retail markets will take place Coordination of regulated and unregulated players is needed 25

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