Grid Modernization. Joe Paladino Technical Advisor U.S. Department of Energy
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1 Grid Modernization Joe Paladino Technical Advisor U.S. Department of Energy March 30, 2017 University of Pittsburgh
2 Confluence of Factors Driving Grid Transformation Evolving Federal and State Policies Renewable Portfolio Standards Asset Utilization Reliability and Resilience Integration of Distributed Energy Resources Emerging Technology Information and Communication Technology (ICT) & DERs: o o o o o Solar and Wind Energy Storage Electric Vehicles Microgrids Building Systems New Market Entrants Generation and Management of Electricity by Customers and 3 rd Parties DER Service Providers 2
3 PV Adoption With reduced costs, adoption has increased Convergence of attractive prices, commercial offerings and favorable state policies greatly enhances adoption (HI) Energy storage undergoing similar trend; implications for DERs Source: U.S. Department of Energy 2x in 3 years to 17% of All Customers Source: HECO cited in Hawaii PUC Order No
4 System Requires More Flexibility California Duck Curve DERs (and bulk-system factors) present considerable variability and uncertainty in both generation and load profiles challenging both planning and operations 4
5 DERs Provide Value From Evolving Distribution Operational Markets by Paul De Martini, Resnick Institute, Caltech, and Brenda Chew, Dale Murdock and Steve Fine at ICF 5
6 Attributes of a Future Grid Integration of renewable and distributed resources (electric cars, smart buildings, PV, wind, energy storage, microgrids, community energy) Shared ownership and responsibility of the electric grid planning and operations (T, D & C) Multi-directional flow of energy, information and money Evolved model for the utility business (platform provider) and regulation to ensure reliability, efficiency, affordability, security and innovation Value creation through integrated networks and convergence (smart cities) 6
7 Technological Complexity Co-Existing Futures High end automation, high DER penetration, etc. Large IOUs, some PPAs and verticals Today Localization Increasing local energy determinism: DG, multi-user microgrids, CCA, etc.) Less automation, some DER penetration Smart Cities Coops, rural utilities Some PPAs and verticals 7
8 Considerations for Advancing Understanding Policy/Institutional Considerations: Integrated Planning Determining Value Industry/Business Models and Market Design Rate Design Regulatory Models Policy Objectives Highly Coupled Technological Considerations: Sensing Communications Control Data/Info Management Security (physical/cyber) Network Convergence 8
9 Emerging Grid Complexity The potential of high penetrations of mixed DERs presents an entirely new problem in control, coordination and value-determination within distribution systems Grid Decisions Building Decisions INFO ENERGY $ EV Decisions Storage Decisions Considerations: Extensibility: accommodating system growth and DERs Scalability: aggregation of coordination signals Optimization: local & system, centralized & distributed control Convergence: grid/ict/buildings/transportation Markets/Innovation: open access networks, platforms 9
10 Laminar Decomposition Frameworks To enable scalability and selfish optimization with system optimization From JD Taft, Architectural Basis for Highly Distributed Power Grids: Frameworks, Networks, and Grid Codes, PNNL-25480, June
11 Coordination Domain Coordination domain may encompass, e.g., an entire distribution operator service territory, substation service territory, distribution feeder, microgrid Domain coordinator node is responsible for solving the local coordination problem and enabling self-optimization (to meet local objectives) From JD Taft, Architectural Basis for Highly Distributed Power Grids: Frameworks, Networks, and Grid Codes, PNNL-25480, June
12 Convergence From Value Creation Through Integrated Networks and Convergence, De Martini and Taft, February
13 References doe-dspx.org gridarchitecture.pnnl.gov Also: Future Electric Utility Regulation Series at Lawrence Berkeley National Laboratory: website exists Results of Smart Grid Projects Funded Under the Recovery Act: 13
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