Grid Modernization: National Context and Current State Efforts [ for people in a hurry ]
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1 Grid Modernization: National Context and Current State Efforts [ for people in a hurry ] Steven G. Hauser, CEO, The GridWise Alliance Wisconsin Public Utility Institute (WPUI) Grid Modernization Event March 1, 2018 Madison, WI 1800 M Street, NW, Suite #400S, Washington, DC Phone: (202) Fax: info@gridwise.org
2 The Electricity Industry is Changing Technology Innovation is Driving the Change Consumer s Use of Electricity is also Changing These Changes Require Adjustments to the Policies and Regulations that Govern the Industry
3 About GridWise Alliance Since 2003, the Alliance has been at the forefront of educating legislators and regulators about the critical need to modernize our nation s electricity system. Who We Are: Broad and diverse stakeholders that design, build and operate the electric grid. Electric utilities Information and communications technology equipment and service providers National Laboratories Academic institutions Regional Transmission Operators (RTOs), Independent System Operators (ISOs), and more. What We Do: Connecting the best and brightest influencers committed to modernizing the grid. Influence federal policies and R&D priorities by informing key stakeholders Influence state initiatives and emerging policies by informing key stakeholders Influence development and investment decisions by informing key stakeholders Provide continued thought leadership and guidance on industry best practices
4 GridWise Alliance Members
5 Important Business Laws The Law of Bureaucracy For every useful action there is an equal and opposite government program
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7 7
8 8
9 9 Future of the Grid: Evolving to Meet America s Needs Developed through a public/private partnership with the Department of Energy s (DOE) Office of Electricity Delivery and Energy Reliability (OE) Workshops in Seattle, Dallas, Durham, and New York City National Summit in Washington, DC Input from over 400 industry stakeholders including policymakers, utility representatives, vendors, and game changers Final report published in December 2014 Available at: and
10 Important Business Laws The Law of Bureaucracy For every useful action there is an equal and opposite government program The Law of Big Organizations When you starve with a tiger, the tiger starves last
11 Vision(s) of Grid Modernization Factors Driving Action Various Perspectives Provide Incremental Benefits to Customers Capital Efficiency (more Kwh per KW) Increase Security Increase Reliability and Resilience (highly customized) Increase Flexibility (extensibility/optionality) Operational Efficiency (more with less) Promote Energy Independence Energy Efficiency (Less Kwh/higher productively Reduced Carbon (across infrastructures) Reduce Peak Demand Reduce, Avoid or Defer Capital Investments Promote Economic Growth and Productivity 11
12 SCE view Provide Customer Benefits Reduce Peak Demand Increase Energy Conservation and Efficiency Reduce Operating Expenses Reduce, Avoid or Defer Capital Investments Increase Utility Worker Safety Improve Grid Resiliency and Reliability Reduce Greenhouse Gas Emissions Promote Energy Independence Promote Economic Growth and Productivity SCE Smart Grid Strategy and Technology Roadmap,
13 PNNL View---System Qualities Security Safety Minimum Environmental Footprint Robustness (reliability/resilience) Flexibility(extensibility/optionality) Financeability Affordability Taft, Becker-Dippmann; Grid Architecture Final, January 2015, PNNL Report
14 PNNL View---System Properties Observability Controllability and dynamic stability Smoothly adjustable N-way power flow Tolerance of generation/load stochasticity Convergence Scalability Distributed reliability management Whole grid coordination Attack resistance/selfhealing Data/device interoperation Local optimization Control federation/ disaggregation Taft, Becker-Dippmann; Grid Architecture Final, January 2015, PNNL Report 14
15 GridWise Alliance View GRID 3.0 Capital Efficiency (More Kwh per KW) Reliability (highly customized) Operational Efficiency (more with less) Energy Efficiency (less Kwh/higher productivity) Reduced Carbon (across infrastructures) Hauser, GRID 3.0, A Full-Featured Smart Grid, 2010, Electricity Policy.com
16 Important Business Laws The Law of Bureaucracy For every useful action there is an equal and opposite government program The Law of Big Organizations When you starve with a tiger, the tiger starves last The Power Law Whatever hits the fan will not be evenly distributed
17 17
18 GMI Scoring Top Ten States
19 Overall Results
20 GMI 4 vs. GMI 3
21 Improving Scores
22 Key Takeaways
23 State Support
24 State Support: Themes and Trends The highest-ranked states in this category are taking a more comprehensive approach to policies and regulatory proceedings that encourage grid modernization. Areas of primary focus include EVs, integration of DERs, energy storage, resiliency and reliability, cyber and physical security, and changes in regulatory models, including rate design structures. Incentives and mandates to encourage the deployment of energy storage technologies are becoming a popular policy option for supporting utility operations. Utilities are tailoring their modeling and planning efforts to meet increasingly aggressive EV infrastructure and RPS goals (50-100% renewables for some states). Regulatory approval is a long process, requiring utilities to engage early and often with regulators and other stakeholders, and to articulate clear business cases for reform. However, general awareness of the need for grid modernization has increased among state energy offices, legislators, and commissions, resulting in an acceleration of activities. Significant education, outreach and technical assistance regarding these complex issues must continue for legislators, regulators, and staff.
25 Customer Engagement
26 Customer Engagement: Themes and Trends Leading utilities are offering customized energy programs and enhanced service levels that leverage foundational investments in AMI and apply data analytic frameworks to deliver new value streams to customers. Examples of such benefits include automatic system connection and disconnection, new approaches to outage status updates, and fault detection. Utilities are tailoring innovative communication strategies and programs to meet the requirements of increasingly diverse, engaged, and informed customer classes. At the same time, all customers are expecting faster recovery and new communications strategies from utilities to address wide-scale outages. Extreme weather events are causing many customers, including hospitals and military facilities, to demand greater reliability and resilience (such as backup generators and microgrids) to protect critical infrastructure. Successful programs are increasingly based on broader community input and outreach, leveraging external stakeholder groups and focusing on customers needs.
27 Grid Operations
28 Grid Operations: Themes and Trends AMI remains a critical, foundational component of a modernized grid, with leading utilities implementing AMI programs that support diverse operational improvements and capture a wide range of customer benefits. More data from AMI, sensors, and new IT systems provide rich data streams for advanced analytical tools that enable enhanced decision-making capabilities. Visibility from these technologies enables utilities to improve performance across various utility functions, including customer service, metering, distribution, outage management, asset management, and market operations. New technologies and systems are being deployed incrementally, with utilities waiting until they can demonstrate the value of such technologies and systems, and proficiency using them, before adopting them on a more widespread basis. The increased penetration of DERs has made grid operations more complex. New software platforms and control systems are being deployed by a diverse group of utilities to automate grid operations and increase system efficiency and situational awareness.
29 Spotlights Rhode Island (23 rd ) Massachusetts (12 th ) Oregon (5 th ) Nevada (9 th ) Colorado (18 th )
30 Important Business Laws The Law of Bureaucracy For every useful action there is an equal and opposite government program The Law of Big Organizations When you starve with a tiger, the tiger starves last The Power Law Whatever hits the fan will not be evenly distributed The Law of Leadership Nothing is impossible for the person who doesn't have to do it himself
31 Best Practice Initiative GridWise Alliance Members Work Together to Build Successful Partnership Stories GridEXPO 2017, produced in conjunction with EEI and NEMA, convened more than a dozen GridWise Alliance member organizations to educate Capitol Hill staffs on current grid modernization initiatives. Oncor and CenterPoint Energy, joined with energy providers, consumer advocates and state legislators in Texas to develop a plan with all stakeholders in mind to build out AMI infrastructure Florida Power and Light and S&C Electric Company are improving visibility on critical grid systems through improved switches to harden their grid against major storms American Electric Power is working with multiple partners in developing Columbus Smart City New York Power Authority is improving energy management systems at their New York Energy Manager through work with Itron and GE VELCO with Utopus Energy are focusing on weather forecasting at the Vermont Weather Analytics Center How are successful partnerships improving grid operations and customer s experience in Wisconsin?
32 Best Practices Initiative GWA Website; Newsletter pieces; social media exposure Purpose of the 2018 Best Practice Initiative Improve awareness of GWA member activities at commission and policymaker levels gridconnext Topics 2018 Best Practices Initiative Best Practice Workshop Influence policy activities through improved understanding of GWA member s strategic goals GMI Anecdotal Stories Summer GridExpo for Policymakers Improve channels of communications with industry stakeholders.
33 Recap of 2017 Policy Activities Educational/Outreach Activities on Grid Modernization and Infrastructure Included Hill Meetings, Briefings, Grid Innovation EXPO, and Staff Tour. White Paper on Storage; State Grid Modernization Proceedings Legislation Received a record number of requests for input, and supported more bills. Resilience Focused on Hurricane recovery efforts.
34 gridconnext 2017 December 4-6, Washington, DC Theme for 2018: Convergence of Technology and Infrastructure Save the Date: Dec 4-6, 2018, Washington DC
35 For More Information please contact: Steven G. Hauser, CEO Bryan Nicholson, Executive Director Ladeene Freimuth, Policy Director Richie O Neill, Operations Director roneill@gridwise.org THANK YOU! 35
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