electric utilities: an industry in transition · electric utilities: an industry in transition...
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Electric Utilities:An Industry in Transition
Wanda RederChief Strategy Officer, S&C Electric Company
2016 IEEE President‐Elect Candidate
IEEE Distinguished LectureVancouver, Canada
May 12, 2016
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Overview
• Trends and Drivers
• Lessons when technology changes the game
• Modern grid disruption
• My bet for the future grid with examples
• Many opportunities remain
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S&C Delivers Integration Solutions
Grid EdgeStorage
10’s of kWSubstation Batteries
10’s of MW
Distributed Intelligence and Control
Micro‐grids
Solar Integration
Dynamic VARs
Single Phase Cutout MountedRecloser
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GridModernization
Drivers
New Investor Models and MarketsNew Investor Models and Markets
Rapid Tech Change, Security ConcernsRapid Tech Change, Security Concerns
Increasing Environmental Needs Increasing Environmental Needs
Infrastructure is more prone to failureInfrastructure is more prone to failure
Trends and Drivers
Growing Population, More Electronics Growing Population, More Electronics
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Now
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In 25 Years
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Recognizing the Need for Power
Sources: “The Ampere Strikes Back: How Consumer Electronics Are Taking Over The World,” Energy Saving Trust, June 2007; “The Rise of The Machines: A Review of Energy Using Products In The Home From The 1970s to Today” Energy Saving Trust, June 2006; “Electric Power – The Next Generation: The Intelligent Grid,” CenterPoint Energy, April 2007
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Infrastructure is Prone to Failure
‘Frankenstorm’ Sandy hits USOctober 29, 2012
Grid modernization is a MUST for increased resiliency!
Source: Advanced Microgrids: Building the Business Case, Navigant, Feb 2015
(Source: National Oceanic and Atmospheric Administration)
U.S. Power Outages Affecting 50,000Customers Caused by Extreme Weather
Source: Advanced Microgrids: Building the Business Case, Navigant, Feb 2015
(Source: National Oceanic and Atmospheric Administration)
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Canada: Increasing Environmental Needs
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Canada Greenhouse Gas (GHG) Emissions Trajectory by Sector: 2010 - 2015
Source: Power Climate Prosperity: Canada’s Renewable Electricity Advantage
• World embarked on a
shift to cleaner energy
• Canada target set to
reduce GHG 30% below
2005 by 2030
• How? Decarbonize
– Waste less
– Maximize Renewables
– Electricity preferredSource: Clean Technica “Canada needs to double its renewable capacity” November, 2015
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Energy mix: 2011 - 2035 Natural gas: 21% to 40% Coal: 49% to 25% Renewables: 4% to 11%
Implications: Accommodate distributed
renewables More flexibility New business models
Source: Black & Veatch Analysis - Energy Market Perspective
US: Increasing Environmental Needs
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Technology Changes Things!
Source: “Utility Marketplace with a Texas Twist” Tim Hein, Oncor, April 2015
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Rate of Solar installations per minute in the US is declining
2014: One installation every 2.5 minutes
Google Map Snapshot of IkeaFrisco, Texas
Change: Technology, Price, Behavior
Storage costs are following solarMore Electric Vehicles are Coming
Incremental capacity is coming from customers
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New Investor Models and Markets
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7MW/3MWH Energy Storage4.2 MW PV Plant
Half Moon Ventures owns‐operates solar and storage for the Minster, Ohio community
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Minster Project Roles14
Merchant Market
Suppliers
Customers
Owner-Developer
Community
Community advocacy presents a promising business opportunity
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Technologies:• Energy storage• Power electronics • Distributed intelligence• Adaptive protection• Layered architecture• Self‐diagnostic, healing• Data, cyber, analytics
Changes How We… Make Energy: • More distributed supply• Accommodate growth
Move Energy:• Flexible, intelligent, resilient• Increase visibility
Use Energy: • Integrate end‐use activity• Empower customers
Source: IEEE GridVision 2050
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Old Grid
Modern Grid
© S&C Electric Company 2016, all rights reserved
Bi‐directional power flows is driving circuit design changes, new grid components and control systems
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• Often inverter based (harmonics)
• Intermittent, uncertain output
• Often grid interconnection codes
• Capable of being observed, dispatched
• Able to provide reliability services
– Voltage support
– Frequency response
– Ramping
– Inertia for bulk power operations
• Safeguard against cyber attacks
DER Considerations
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Distributed Energy Resources (DER)
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Using Storage to Manage Chaos
Source: SDG&E, June 2014 - Thomas Bialek
Batteries smooth intermittent solar generation
-4
-3.5
-3
-2.5
-2
-1.5
-1
-0.5
0
0.5
1:55 PM 2:24 PM 2:52 PM 3:21 PM
Pow
er(k
W)
PV Output
PV Smoothed by Storage
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Control Ramp Rate
Benefits of Storage and Renewables
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• Smooth intermittency
• Minimize reverse power flow, keeps voltage within limits
• Store output and release coincidental with local load
• Control ramp rate
Net Load
Energy Storage ‐ Solar Hybrid Project
Energy Storage – Wind Hybrid Project
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EfficientBuildingSystems
UtilityCommunications
DynamicSystemsControl
DataManagement
DistributionOperations
DistributedGeneration& Storage
Plug-In Hybrids
SmartEnd-UseDevices
ControlInterface
AdvancedMetering
Consumer Portal& Building EMS
Internet Renewables
PV
My bet: • Grid automation +
energy storage
• Integration across applications
• Optimized oversight with local intelligence
• Business models to unleash value
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EPB Chattanooga’s Smarter Smart Grid
EPB Chattanooga500,000 customer municipal
Smart GridStarted with fiber everywhere
Smart Switches1200 units on all 12kV
Interruptions Avoided: 2011 - 2014
5:31:09 PM
11,258 customers without power
5:31:37 PM
10,000 customers restored
5:31:52 PM
800 more customers restored
5:37:47 PM
All customers restored
Storm Jan, 2013
Source: David Wade, EPB Chattanooga, presented for DOE, Dec. 2014 “EPB’s Smarter Smart Grid”
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Distributed IntegrationS&C System VI for
20 MW Solar installation• More substation interconnections• Products
– Smaller footprint – Integrated meters and relays – Compact, sealed design – Easily operated – Enhanced safety
• Services– Reduced lead time– Skid delivery– 24x7 monitoring
• What’s important to you?
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Modern Grid Accommodates Microgrids
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Microgrid: • Interconnected loads and
distributed energy resources with defined electrical boundaries
• A single controllable entity that can connect and disconnect from the grid
What’s new?• Renewables• Storage
Gen
Bulk supply connection(sub-transmission)
Partial Feeder Micro-grid
Gen
Single Customer Microgrid
Feeder
Other FeedersFull Feeder
Microgrid
Full Substation Microgrid
Distribution Substation
GenGen
Gen
Bulk supply connection(sub-transmission)
Partial Feeder Micro-grid
Gen
Single Customer Microgrid
Feeder
Other FeedersFull Feeder
Microgrid
Full Substation Microgrid
Distribution Substation
GenGen
Source: EPRI
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US Microgrid Forecasted Growth
Source: North American Microgrids 2015: Advancing Beyond Local Energy Optimization, Omar Saadeh, Green Tech Media
Microgrids… “expected to grow the market opportunity by over 3.5 times between 2015 and 2020, to over $829 million annually.”
Total Microgrid Generation Capacity by End-User and Region(Includes existing and planned capacity)
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Storage Report for ONCORBrattle report for ONCOR, Nov. 2014 ‐“The Value of Distributed Electricity Storage in Texas”• 5,000 MW of distributed storage is cost‐effective at
$350/kWh in ERCOT
• Payback requires regulated investment deferral and merchant market
• Deploy storage on distribution system and "auction" rights to 3rd parties to participate in wholesale market
Telling the story with ONCOR Microgrid
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Oncor Market Development
Source: David Treichler, “ONCOR Energy Storage and Microgrid” for DOE in June, 2015
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ONCOR Microgrid
• Utilizes distributed generation – two solar photovoltaic arrays– a microturbine– two energy storage units – four generators
• Energy storage is the backbone
A showcase to promote utilities to rate base energy storage batteries for distribution system support and wholesale market services
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Distributed Intelligence with OversightDifficult to Manage Centrally
• Emerging conditions – Multi-directional power flow– More uncertainty– Less time to react– Pressure to reduce outages – More inter-connections– More dynamic operations
• Distributes intelligence is key
S&C IntelliRupter® PulseCloserDistributed intelligence
Two-way sensing, adaptive protection
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Distributed Intelligence is Key
• Interrupt fault current• Segments load• Two‐way sensing• Adaptive protection• Detects power quality events
IntelliRupter® PulseCloser
TripSaver® II Cutout Mounted Recloser
• Single phase• Avoid truck rolls
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A Modern Grid is Integrated
AnIntegrated
Grid
Graphic Source: Mark McGranaghan, EPRI “International Game Changers” Denver CO July 2015
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US Utility Age Distribution TrendUS Utility Workforce Age Distribution for Total Company
Preliminary CEWD 2014 survey versus 2006 Results
2006
2014
Excludes nuclear suppliersExcludes nuclear suppliers
Source: Center for Energy Workforce Development. Includes actual data from about 2/3 of the gas and electric utlity employee population in the US. The information was supplemented with data from Economic Modeling Specialists International (EMSI).
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Changing Workforce Needs
5/26/2016
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Smart GridEngineering
Automatic Controls
Information Technology
Power Electronics
Computer Engineering
Marketing, Economics
Systems Theory
Energy Conversion
Public Policy
Signal Processing
Adopted from Source: Professional Resources to Implement the “Smart Grid”; Gerald T. Heydt and others. 2009 IEEE Power & Energy Society General Meeting
Security
Big DataAnalytics
Smart Grid Engineering
Standards
Transmission &Dist. Engineering
Engineering Physics
Consumer Behavior
Communications
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Smart Grid Computing Disciplines
• Computational intelligence• Cyber security and resilience• Data analytics and databases• Virtual computing• Visualization• Modeling and simulation• Self‐integrating systems• High‐performance computing• Messaging‐oriented middleware• Software verification and validation• Distributed multiple‐agent architecture
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Source: IEEE Smart Grid Vision for Computing: 2030 and Beyond
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34 20 November 2015
Future Direction Committee 2015 – 2016
Maturity Level
Smart Materials
ieee.org/futuredirections
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IEEE Resource
• Visit at smartgrid.ieee.org
• Collaboration across IEEE with 14 partner societies
• 90,000+ followers
• Get involved: – Newsletter
– Webinar Series
– Global conferences
– Technical Activities, Standards
– Research & Development
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Opportunities Remain• Regulatory, ownership, price issues
• Re‐defining the roles
• Standards to advance interoperability of everything
• Develop workforce competencies
• Capability for dynamic operations
• Utilize lots of data with varying time domains
• Overcome cyber‐security obscurities
Bulk Power System
DistributionOperations
Customer
Energy Provider
EnergyRelatedServices
Energy DeviceFirms
Energy Financial Services
Processes and coordination needed across multiple entities
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In Closing…
Wanda RederChief Strategy Officer S&C Electric Company
[email protected](773) 381-2318
Candidate for 2017 IEEE President-Electwww.wandareder.com
• Recognize the trends and drivers • Enable the future by looking forward...
– Make it– Move it– Use it
• Distributed intelligence, renewables, storage are key
• Future workforce opportunities • IEEE Smart Grid and other Future
Direction Initiatives are a resource• Get involved!