The Smart Grid – An Overview - US Chamber of Commerce

The Smart Grid – An Overview - US Chamber of Commerce

The Smart Grid An OverviewDan DelureyDemand Response andSmart Grid CoalitionChamber of CommerceMay 13, 2009

DRSGDEMAND RESPONSE and Smart Grid CoalitionDRSG Members1615 M Street NWSuite 900Washington, DC20036www.drsgcoalition.org202.441.1420

Smart Grid Why We Get It• Present state of outage management• Rolling the trucks• Waiting for the calls• When the wind stopped blowing in Texas• Cranking up the AC during peak periodregardless of wholesale costs• Supply resources in one place anddemand in another• Technological Developments

Smart Grid Why They Will Get It• Using info to make informed purchases• Choices in purchasing• Home networks even if they don’t t haveone• Sensors and controls• Open communications (see: Internet)• Connected to information networks (see:cable, ATM, mobile phone)• Information feedback (see: Prius effect)• Optimize energy usage between differentoptions (see: Hybrid Autos)

Smart Grid Groping the Elephant• Smart Grid, i.e. as in THE Smart GridSmart Grid, i.e. as in A Smart Grid• Regional• State• Service Territory• Local• Micro• Smart Grid, i.e. as in the concept• Smart Grid, i.e. as in the design principle• Smart Grid, i.e. as in the operating mode• Smart Grid, i.e. as in the type of technology• Smart Grid, i.e. as in the religion

Energy Independence ActTitle XIII Smart Grid• Section 1301 Statement of Policy• Section 1302 System Report• Section 1303 Advisory Committee and TaskForce• Section 1304 Technology RD&D• Section 1305 Interoperability Framework• Section 1306 Federal Matching Fund• Section 1307 State Consideration• Section 1308 Study of Effect of Private WiresLaws on CHP• Section 1309 Study of Security Attributes

EISA 2007Title 13 Section 1301 Statement of Policy• It is the policy….to support….which togethercharacterize a smart grid:• Digital information and controls• Dynamic optimization with cyber-security• Distributed Resources and DG, including renewableenergy• Demand Response and Energy Efficiency• Smart technologies for metering, grid communicationsand distribution automation• Smart appliances and consumer devices• Advanced storage and peak-shaving technologies,including PHEVs and thermal-storage A/C• Information and control options to consumers• Standards for communication and interoperability• Identification and lowering of barriers

Smart Grid According to Wikipedia• Smart Grid is a transformed electricity transmission anddistribution network or "grid" that uses robust two-waywaycommunications, advanced sensors, and distributedcomputers to improve the efficiency, reliability and safetyof power delivery and use….. The term Smart power gridmay best be defined as using communications and moderncomputing to upgrade the current electric power grid sothat it can operate more efficiently, reliably and safely.Such an upgrade is equivalent to bringing the power of theInternet to the transmission, distribution and use ofelectricity - it will save consumers money and reduce CO2emissions….. The development of modern micro-electronics, , and especially the entry of the microprocessor,opened new ways to significantly improve power gridcontrol. The evolutionary integration of intelligent,distributed, and highly-adaptive control systems madeavailable with microelectronics is being referred as thesmart grid in Title XIII of the U.S. Energy Independenceand Security Act of 2007.[1]

Smart Grid a.k.a the Electranet?Societies of the future will rely on small, diversified andrenewable sources of energy, ranging from windmills andsolar photovoltaics to second-generation ethanol-andandbiodiesel-production facilities. Widely dispersed throughoutthe countryside, these streamlined facilities will make theindustrialized world more secure and less dependent onunstable and threatening oil-producing nations. Off-gridapplications of renewable power sources can provideenergy for the 3 billion people now stuck in poverty.In the industrialized world, these systems will require anewly designed distribution grid. An "electranet"electranet," or smartgrid, will be flexible and allow homeowners and businessesto sell or buy electricity on to and off of the grid. It willallow individuals and families to monitor their consumptionmuch as they monitor budgets and bank accounts today.Former Vice President Al Gore, Newsweek “My Turn”December 18, 2006

Smart Grid The Definition Chase• The Holy Grail………..But few exist in other areas• Demand Response• Distributed Generation• Renewable Energy• Energy Efficiency….and yet we seem to know what weare talking about

Smart Grid - ResourcesEnergy EfficiencyConventional GenerationDemand ResponseDistribution OptimizationRenewable EnergyTransmission OptimizationDistributed GenerationDynamic StoragePHEV

Smart Grid The Desirable AttributesDynamicallyControllableEmissionsLimitingCommunicatingSelf-HealingSecureInformation-basedResilientSmart GridInteroperableReliableCost-EffectivePrivateFuture-ProofFlexibleOpen

Smart Grid DisassembledMDMS/CISHANSmart MeterIn-HomeDeviceLANPHEVSmart GridWANG/DGSCADATransmission SubstationDistribution

Smart Grid - Myths• The Smart Meter is being superseded bythe Smart GridThe Smart Grid is all about building newtransmission to bring remote renewableenergy to where power is needed.• The Smart Grid will happen in one bigbang• The Smart Grid is a brand or certification

Challenges for Policy Makers• Connecting Resources to Demand (Interconnection)• Ensuring Reliability• Ensuring Least Cost Planning and Operations• Introducing Time-Based Prices• Approving Infrastructure Investments• Ensuring Privacy• Ensuring Openness and Flexibility• Ensuring Marketplace Innovation• Getting into the Transportation Business• Providing Incentives for Action• Keeping Prices Low• Mitigating market Power• Giving Customers Options for Bill Control• Implementing Integrated Resource Planning• Implementing RPS• Using Demand Response and Smart Grid to address Climate Change

• StimulusIssues up to bat• Smart Grid Grants for Demonstrations or Deployments• Interoperability• Federal effort via NIST• Normal standards setting bodies and processes• Competitive Jockeying• Cybersecurity• Jurisdiction• Hacking the system through a smart meter• Peak Reduction• OH, PA, MD, VA• House Bill• Energy Star• Integration or create something similar• FERC National Action Plan on Demand Response• Green Transmission vs Smart Grid

Smart Grid Positive Prospects• Inevitable that technology be integrated into gridoperations• Utilities are very much on board; they want tomodernize their companies and provide new andbetter services to customers• Policymakers at Federal and State levels aresupportive of concept• More understanding of how renewable energyneeds smart grid and DR• More understanding of how smart grid will lead toa new era of sustainable energy efficiency• The term has entered the public vernacular Super Bowl Ad

Smart Grid Negative Prospects• Everyone supports but few understand• A lot of money will be required• Stimulus has frozen business activity• Transmission and Renewable Energygetting the attention• State policymakers reluctant to introducetime-based pricing• Higher requirements and expectations forSmart Grid than other industries

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