The Next Generation Grid: Electric Power T & D

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1 The Next Generation Grid: Electric Power T & D Kurt Yeager April 20, 2009

2 Forward to Fundamentals Electricity is the engine of prosperity and quality of life Electricity is a consumer service- based enterprise Technology can relieve cost pressures through elevation of electricity service value Realizing these opportunities requires transformation of the electricity infrastructure 2 Copyright The Galvin Project. All rights reserved.

3 A Perfect Storm of Challenges Costs fuel and capital costs have doubled Demand Growth power quality and quantity Energy Security vulnerability and dependence Climate Change greater demands for efficiency and renewables 3 Copyright The Galvin Project. All rights reserved.

4 Electricity Sector Life-Cycle A Fork in the Road Formation Consolidation/ Growth Maturity/ Stability Transformation Energy Crisis Financial Crisis Decay PUHCA Copyright The Galvin Project. All rights reserved.

5 Value Lost to the U.S. Economy ($ billion per year) Unreliability 150 Inefficiency 100 Productivity Penalty 1,000+ Annual Cost to Correct 25 5 Copyright The Galvin Project. All rights reserved.

6 Breaking the Limits on Electricity Value Performance Networked digital economy Transformation Electric Light Refrigeration Investment 6 Copyright The Galvin Project. All rights reserved.

7 Meet Sad Socket 7 Copyright The Galvin Project. All rights reserved.

8 Conceptual Framework for Alternatives SMART Technology Solutions Centralized Grid Architecture Intelligent controls and power management added to present power system Hardened power systems based on present centralized models Cellular configurations - distributed generation & microgrids, smart interconnections between cells Integration of distributed generation & microgrids with redundancy Distributed Grid Architecture 8 Copyright The Galvin Project. All rights reserved. HARD Infrastructure Solutions

9 Transforming the Electricity Grid for the 21 st Century Electronically monitor & control the power system Integrate electricity & communications Transform meter into a two-way consumer services gateway Enable smart buildings & end uses Incorporate Renewable & Distributed Resources Reintroduce Direct Current (DC) Circuits for Efficiency & Reliability 9 Copyright The Galvin Project. All rights reserved.

10 A SmartGrid accommodates economies for the grid investment- distributed generation Bulk Generation Transmission Central Plant Distributed Generation Step-Up Transformer Subtransmission Distribution Substation Gas Turbine Receiving Station Distribution Substation Recip Engine Microturbine Distribution Substation Photo voltaics Batteries PHEV Recip Engine Distribution Fuel cell Commercial Flywheel Fuel Cells Residential 10 Copyright The Galvin Project. All rights reserved. Gas Turbine Industrial Commercial

11 New technology opportunities abound Set it, and forget it homes Hyper-Efficient Technologies Residential Heat Pumps Ductless Cooling Appliances Commercial VFC Cooling VFC Cooling Data Centers 11 Copyright The Galvin Project. All rights reserved.

12 Unlocking Smart Grid Benefits Requires Smart Technology Smart Policy Empowered Consumers 12 Copyright The Galvin Project. All rights reserved.

13 The Micro Grid & Its Role in Helping Meet These Challenges Utility Communications Internet Consumer Portal and Building EMS Efficient Building 10% Systems 17% Renewables 65% PV Dynamic Systems Control Distribution Operations Advanced Metering Control Interface Data Management Plug-In Hybrids Distributed Generation and Storage Smart End-Use Devices 13 Copyright The Galvin Project. All rights reserved.

14 Key Characteristics of Smart Microgrids Self-healing. Grid Rapidly Detects, Analyzes, Responds and Restores. Empowers and Incorporates the Consumer. Ability to Incorporate Consumer Equipment and Behavior in Grid Design and Operation. Provides Power Quality Needed by 21 st Century Users. Grid Provides Quality Power Consistent with Consumer and Industry Needs. Tolerant of Attack. Grid Mitigates and Resilient to Physical and Cyber Attacks. Accommodates Wide Variety of Supply and Demand. Grid Accommodates Variety of Resources (Including DR, CHP, Wind, PV). Fully Enables Maturing Electricity Markets. Allows for and is Supported by Competitive Markets. 14 Copyright The Galvin Project. All rights reserved.

15 Constraints to Transformation Lack of Change Leadership and Consumer Knowledge Obsolete Cost/Benefit Accounting rules Dysfunctional Building Design & Construction Processes Utility and Regulatory Resistance to Change New Entrant Barriers Discriminatory Rules & Tariffs 15 Copyright The Galvin Project. All rights reserved.

16 Principles of a New Electricity Constitution Compensate Utilities Based on their Reliability, Efficiency and Customer Service Quality Require Fundamentally Higher Distribution Reliability Standards Provide all Consumers with Dynamic Electricity Rates & Incentives Enable Municipalities to Access & Invest in the Electricity Distribution Infrastructure Eliminate Utility Monopoly Restrictions on Smart Microgrids and Distributed Generation Establish Truly Competitive Retail Electricity Service Markets 16 Copyright The Galvin Project. All rights reserved.

17 GOAL The perfect power system will ensure absolute and universal availability of energy in the quantity and quality necessary to meet every consumer s needs. It is a system that never fails. Bob Galvin 17 Copyright The Galvin Project. All rights reserved.

18 18 Copyright The Galvin Project. All rights reserved.

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