Juan Manuel Gers, PhD

San José, Costa Rica

June 29th, 2017

Table of Contents

• Introduction

• Fundamentals on Smart Grids

• Integration of Renewables

• Smart Grids around the World

• Smart Grids in LATAM

• Recommendations

WHAT IS THE SMART GRID?

Defining the Smart Grid is in itself tricky business.

Select six stakeholders and you will likely get at least six

definitions.

Definitions of Smart Grid

"is an electrical grid that uses computers and other technology togather and act on information, such as information about thebehaviors of suppliers and consumers, in an automated fashionto improve the efficiency, reliability, economics, and sustainabilityof the production and distribution of electricity.”.

Smart grid, as defined

by theDepartmentof Energy

SmartGrid

Smart Meters

Smart Generation Smart Feeders

Smart SubstationSmart Transmission

Some advantages:

• Enhance Reliability

• Improve System Efficiency

• Allow the integration of Distributed Energy Resources

• Possibility of two-way communication with customers

• Optimize Asset Utilization and Efficient Operation

• Encourage Energy Demand Management

Smart Grid Fundamentals

Some barriers:

• Costs

• Regulatory Barriers

• Lack of Open Standards

Modernization of the electrical grid

Communication

Architecture

Power System

Architecture

Asset

management

Application

AMI

Application

FLISR

Application

IT

Architecture

… N

Application

Articulation here is required!

Smart Grid Methodology

Integration tool:

Utility components

Distribution Operation

Transm. Operation

Generation Operation

Market Operation

Project 1

Project 2

Project 3

… Project N

Time

Smart Grid Fundamentals

Smart Grids/Distribution

Automation Benefits

AMI & Improvereliability

Fault Location, Isolation and System

Restoration

- Metering management

- Reduce outage duration.

- Reduce number of outages.

- Improve quality indices

Improve system efficiency

Volt/Var Control

- Reduce line losses

- Fulfill voltage profile regulation

Effective DG integration

Inverters, numerical protection, SCADA,

and others technology options

- Improve impact from ER

- Improve Power Quality

- Improve Reliability

Advanced asset management

Sensors to determine maintenance program

according to condition-based status

- Reduce maintenance expenses

- Reduce associated failure expenses

- Deferral of replacement

Electrical Components of Smart Grids

• System Average Interruption Frequency Index:

• System Average Interruption Duration Index:

• Customer Average Interruption Duration Index:

• Average Service Availability Index:

yrServedCustomerofNumberTotal

onsInterruptiCustomerofNumberTotalSAIFI /

yrhrServedCustomerofNumberTotal

DurationsonInterruptiCustomerSAIDI /

hronsInterruptiCustomerofNumberTotal

DurationsonInterruptiCustomerCAIDI

puDemandServiceHoursCustomer

tyAvailabiliServiceHoursCustomerASAI

Quality Indices

Excerpts from the CFE 2015 Annual Report

Excerpts from the CFE 2015 Annual Report

Quality Indexes in Some Countries

SAIFI SAIDI CAIDI ASAI Density

(/yr) (min/yr) (min) (pu) (people/mi2)

Urban Systems

Finland 0.8 33 41 0.99994

Sweden 0.5 30 60 0.99994

Denmark 0.3 7 20 0.99999

Italy 2.5 120 48 0.99977

Netherlands 0.3 15 58 0.99997

Rural Systems

Finland 5.0 390 78 0.99926 38.3

Sweden 1.5 180 120 0.99966 51.2

Denmark 1.2 54 45 0.99990 313.7

Italy 5.0 300 60 0.99943 496.9

Netherlands 0.4 34 79 0.99994 975.3

Overall

Norway 2.0 300 150 0.99943 34.6

United States 1.3 120 90 0.99940 73.2

United Kingdom 0.7 67 92 0.99987 653.4

Netherlands 0.4 27 73 0.99995 975.3

Network Management EMS / DMS

Comprehensive

set of

applications

dedicated to MV

network

operations

Generation &

Transmission

Distribution

EMS

DMS

Comprehensive

set of

applications

dedicated to HV

network

operations

Source: Capgemini

EMS/DMS/OMS

Benefits of DMS

Source: ABB

Optimal Topology of Distribution Networks

The optimal topology normally

represents the lowest losses of the system.

To determine the Optimal Topology,

specialized software packages are used,

which assume that all the poles, in particular the double deadends,

are potential open points.

This allows the software to

determine the best boundaries among feeders to reduce the overall losses.

Once the optimal topology is found,

switches, breakers or even re-closers can be installed in some of the open points and some

along the feeders, to allow system

reconfiguration.

EMCALI is an utility that has around 110 feeders at 13.2 kV that register a total loss figure above 15% which requires the

application of several methods among them the

feeder reconfiguration

Case Study

14

13

11

9

7

3

20 21

18

17

16

15

12

4

1

2

6

58

19

10

Case Study

14

13

11

9'

7

3

20 21

18

17

16'

12

4

1'

2

6

58

19

10

1

1615

18'

20'

13' 19'12'

8'

10'

14'

4'

Case Study

If the prototype represents 5% of the overall system, the total savings amount is $ 2,803,200

0.10 $/kWh

kWh Cost

160 kW

Losses saving

Data

160 kW

8760 h0.10

$/kWh $ 140,160

Annual Saving

Cost Savings Illustration

Feeder Reconfiguration

• Feeder reconfiguration consists in themodification of the topology of anetwork through the closing of a tieswitch that links two feeders and theopening of a closed switch so as tomaintain the radial condition of thefeeders.

• Feeder reconfiguration is highly used torestore service automatically to healthsections of feeders when faults happen.This is known as Fault Location,Isolation and Feeder Restoration-FLISR

• The reconfiguration can also be carriedout in order to have a better operationcondition of the network and specificallyto reduce the losses due to the Jouleeffect.

Illustration of FLISR

1F4

12

I II III

2

3

4

9

6 7 10 11

13

14

F5

F1 F3

F2

DD1

DD2

DD6

8

Tie 1 Tie 2

Tie 3

5

DD4

FAULT OPEN CLOSE

F1 2 and 3 T3

F2 13 ---

F3 9 ---

F4 6 and 8 T1 or T2

F5 7 ---

The best sequence operation

sequence of the tie and close

switches is shown in the following

table:

After the system reconfiguration takes

place, the Time Current Characteristic

(TCC) settings have to be modified

It is essential to have the availability

of multiple setting groups.

OMS

Source: MILSOFT UTILITY SOLUTIONS

Envisioned DA and OMS Configuration Model for

Smart Grid

Source: TRC White Paper

Source: Capgemini

Advanced DMS Applications

Smart Grid Maturity Model

Smart Grid Maturity Model – Domains

Strategy, Mgmt & Regulatory

SM

R Vision, planning, governance,

stakeholder collaboration

Organization and Structure

OS

Culture, structure, training,

communications, knowledge mgmt

Grid Operations

GO

Reliability, efficiency, security, safety,

observability, control

Work & Asset Management

WA

M Asset monitoring, tracking &

maintenance, mobile workforce

Technology

TE

CH IT architecture, standards,

infrastructure, integration, tools

Customer

CU

ST

Pricing, customer participation &

experience, advanced services

Value Chain Integration

VC

I Demand & supply management,

leveraging market opportunities

Societal & Environmental

SE

Responsibility, sustainability, critical

infrastructure, efficiency

PIONEERING

Breaking new ground; industry-leading innovation

Optimizing smart grid to benefit entire organization; may

reach beyond organization; increased automation

Investing based on clear strategy, implementing first

projects to enable smart grid (may be compartmentalized)

Taking the first steps, exploring options, conducting

experiments, developing smart grid vision

Default level (status quo)

Integrating smart grid deployments across the

organization, realizing measurably improved performance

Smart Grid Maturity Model – Levels

SGMM at a Glance

5

4

3

2

1

0 SMRStrategy,

Management, &

Regulatory

OSOrganization &

Structure

GOGrid Operations

WAMWork & Asset

Management

TECHTechnology

CUSTCustomer

VCIValue Chain

Integration

SESocietal &

Environmental

8 Domains: Logical groupings of smart grid related characteristics

6 Maturity Levels: Defined sets of characteristics and outcomes

175 Characteristics: Features you would expect to see at each stage of the smart grid journey

1 1

2 2

3

0

2

0

NSEP today

Compass results: maturity profile

Methodology to define the Road map

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6 Step 7 Step 8

Step 9

Utility’s current

status

Vision-Goals

Strategic Roadmap

State-of-

the-Art

Smart Grid

Topics

Utility’s

future

status

Maturity Model

Maturity Model

Evaluation of

current status

Evaluation of

future status

Gap

Analysis

List of

requirements

Selection of

solutions Cost/Benefit

Analysis

Revision of requirements

and solutions

Identified

solutions

List of

Business

Needs

Business

Cases

Use Cases

Detailed user’s

requirements

Technical

specifications

Final Report

Description of user’s

requirements

Development of

user’s requirements

Evaluation of

standards,

technologies and

best practices

Development of technical

specifications

IntelliGrid

Methodology

Integration Challenges

Technical

Physical

•Distributed Generation Integration

•Microgrids Integration

•Short Circuit Current and Protection

•Energy Storage Integration

•Energy Vehicle Integration

System Challenges

•Security of Energy Supply

•Frequency Control

•Voltage Control

Market and Regulatory

Challenges

Challenges – Physical integration

Distributed Generation:

▪ They increase the reliability of the

system since they are generation units

spread around the whole system.

▪ Possibility of having generation at the

user level.

▪ Short circuit levels increase along the

feeders with the DG.

▪ Increase the withstand capabilities of

breakers, sectionalizers, reclosers,

capacitors, etc.

System integration – IEEE Std 1547

IEEE Std 1547™-2003 - IEEE Standard for Interconnecting Distributed Resources with Electric Power Systems

• IEEE Std 1547a™-2014 (Amendment to IEEE Std 1547™-2003)

IEEE Std 1547.1™-2005 - IEEE Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems

• IEEE Std 1547.1a™-2015 (Amendment to IEEE Std 1547.1™-2005)

IEEE Std 1547.2™-2008 - IEEE Application Guide for IEEE Std 1547™, IEEE Standard for Interconnecting Distributed Resources with Electric Power Systems

IEEE Std 1547.3™-2007 - IEEE Guide for Monitoring, Information Exchange, and Control of Distributed Resources Interconnected with Electric Power Systems

IEEE Std 1547.4™-2011 - IEEE Guide for Design, Operation, and Integration of Distributed Resource Island Systems with Electric Power Systems

IEEE Std 1547.6™-2011 - IEEE Recommended Practice for Interconnecting Distributed Resources with Electric Power Systems Distribution Secondary Networks

IEEE Std 1547.7™-2013 - IEEE Guide for Conducting Distribution Impact Studies for Distributed Resource Interconnection

P1547.8/D8, Jul 2014 - IEEE Draft Recommended Practice for Establishing Methods and Procedures that Provide Supplemental Support for Implementation Strategies for Expanded Use of IEEE Standard 1547

System integration – IEEE Std 1547

Smart Grids around the WorldCountry Description

Canada • There is a high potential for growth in this market as Canada needs to invest in its

aging electricity infrastructure.

• Energy policy drivers and regulatory frameworks are in place to help sustain growth

and incentivize utility investment in new applications, including consumer energy

efficiency and demand response programs.

China • A Wide Area Monitoring System (WAMS) and implemented Phasor Measurement

Units Sensors (PMUS) was built in all the 300 MW and above generators and all 500

kV substations.

• Shanghai Municipal Electric Power Company launched the research in 2008 of

intelligent distribution network focused on aspects as such as energy storage and

application and integration of large-scale renewable energy power and DERs

technology, smart metering, real-time data management and visualization technology.

• The Chinese government has developed a large, long-term stimulus plan to invest in

water systems, rural infrastructures and power grids, including a substantial

investment in smart grids.

France • The Integration and Optimization of Distributed Generation, Demand Side

Management and Renewable Energy Resources (PREMIO) was launched in 2008.

• The principal objective of demonstrating an innovate, storage and Demand Response

(DR), open and replicable architecture of a Virtual Power Plant (VPP) to optimize the

integration of Distributed Generation (DG), and energy efficiency strategies.

• The electricity distribution operator ERDF is deploying 300 000 smart meters in a pilot

project.

Smart Grids around the World

Country Description

South Korea • The government has launched a USD 65 million pilot plan on Jeju Island in

partnership with the industry, which included the aims of integrating a Smart Grid for

four distribution lines, 6000 households, wind farms.

• In 2006, Korea Electric Power Corporation (KEPCO) had determined a center

based large scale direct operation system and an advanced distribution operation

environment.

• Korea has announced plans to implement smart grids nationwide by 2030.

Spain • The government mandated distribution companies to replace existing meters with

new smart meters with no additional cost to the customer.

• The utility Endesa aims to deploy automated meter management to more than 13

million customers on the low voltage network from 2010 to 2015.

United

Kingdom

• There are big opportunities for innovators in the smart grid.

• The regulatory framework in the U.K. is well developed to fund smart grid

deployments.

• The government has the challenge of facilitating investment in the electricity sector

and achieving carbon reduction goals, at the same time that the rising consumer

electricity prices are contained.

• The assessment of future challenges to the electricity market cites the near-term

need for “balancing technologies”, including demand-side response (DSR) platforms

and programs, electricity storage systems, distribution automation technologies,

consumer engagement and energy efficiency programs to support the development

of DSR and achieve customer-oriented objectives of the Energy Bill.

Smart Grids around the World

Country Description

United

States

• The US government gave from 2008 to 2012 funding of over US$100 million for

Smart Grid research projects, because the emergence of the Energy Independence

and Security Act of 2007.

• The law also establishes a matching program to states, utilities and consumers, in

order to build Smart Grid infrastructure and create a Grid Modernization

Commission to assess progress and funded projects and to recommend needed

standards.

• Through the American Recovery and Reinvestment Act, the U.S. Department of

Energy (DOE) and other funding agencies have initiated 99 Smart Grid Investment

Grants and 41 Smart Grid demonstration Projects.

Renewable Energy Policy Status in Latin America

COUNTRY

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ew

ab

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rge

ts

REGULATORY POLICIESFISCAL INCENTIVES

AND PUBLIC FINANCING

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Pu

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in

ve

stm

en

t, lo

an

s,

or

gra

nts

Argentina O O O R O O

Barbados O O N O N O O

Belize O O O

Brazil O O R ON O O O O O

Chile O O O N O O O O O

Colombia O N O O

Costa Rica O R N O N O O O

Dominican Republic O O O N R N

Ecuador O O O O O

El Salvador O O O O O

Guatemala O O O O O O

Guyana O O O O

Haiti O O O O

Honduras O O N O O O O

Jamaica O O O O O O

Mexico O O O O O O

Nicaragua O O O O O

Panama O O O O O

Paraguay O O O O

Peru O O O O O

Trinidad y Tobago O O

Uruguay O O O O O OO - Existing national (could also include state/provincial)

ON - Existing state/provincial (but no national)

R - Revised

N - New

Source: REN21. Annual Reporting on Renewables (2017).

Country Description

Argentina • Energía Argentina S.A. (ENARSA) are implementing for several years actions to

obtain an active monitoring of equipment associated with the transmission system.

• The largest distribution of electricity called EDENOR has implemented a number of

technologies to achieve an intelligent management of the power grid.

Brazil • Smart Grid has become in one of the most important concepts in the Brazilian

energy sector.

• In 2010, many Brazilian utilities started a deep study in Smart Grids, in order to

prepare and manage their investment in new infrastructures, research and

development and the grid modernization.

• Several companies have been focused on Smart Metering.

Chile • Chilean Energy system was one of the first in Latin America that regulated the

participation of Smart Grids and the integration of Renewable Energy Technologies.

• The Chilean government has defined an energy strategy stated in the “Estrategia

Nacional de Energía 2012-2030” published by the Ministerio de Energía on

February 2012, which indicates the development of distributed generation, smart

metering technologies (focusing on Net Metering) and smart grids as a target.

• The company Chilectra has started in 2011 the first project of smart metering in

Santiago.

• Santiago is actually one of the first cities in Latin America supporting the diffusion of

smart grid technologies, which are key to the development of more sustainable

energy systems.

• The Smart City Santiago project consists in providing state of the art technologies.

Opportunities in Latin America

Opportunities in Latin AmericaCountry Description

Colombia • The definition of Smart Grids Vision 2030 Colombia was structured by the Mining-

Energy Planning Unit (UPME) that includes the challenges, the tasks and

requirements that must be carried out.

• There are AMI projects developed by EPSA, Emcali and Electricaribe using the PLC

technology.

• Law 1715 was implemented in 2014, which establishes the legal framework and

instruments for the use of non-conventional energy sources (especially those from

renewable sources).

Costa Rica • The eight biggest distribution local companies applied the Maturity Model of the

Software Engineering Institute.

• The application of the methodology helps to evaluate and diagnose the current

situation of electricity companies, as well as the aspiration for the future and the

development of a roadmap for the implementation of intelligent solutions in electrical

service.

• This was done with the support of the CECACIER and CRUSA.

Mexico • The Smart Grids development in the Mexico incorporates digital technology in each

part of the energy system chain.

• They have facilitated the incorporation of renewable energy to the Mexican energy

matrix.

• The biggest energy company in the country called Federal Electricity Commission

(CFE) is carrying out a project to improve the exchange of data in order to monitor

and control electrical parameters of the power grid by using wireless technology.

• The CFE in conjunction with ELSTER Group have invested in an AMI solution to

install it into their grid.

Costa Rica Case

Costa Rica Case

Costa Rica Case

Mexican Case

Fuente: PRODESEN 2015-2029.

NUEVO MODELO DE LA INDUSTRIA ELÉCTRICA

Mexican Case

Fuente: Elaborado por CENACE con información de ADEME.

ESCENARIO DE LA EVOLUCIÓN DEL SISTEMA ELÉCTRICO NACIONAL CON LA INCORPORACIÓN DEREDES ELÉCTRICAS INTELIGENTES.

Mexican Case

Challenges and recommendation for Latin American

• Smart Grid vision is already started to be considered in many regulatory and

technological aspects in the different countries of Latin America and around

the world.

• After the definition of the Smart Grid Road Map, a suitable policy and

legislative framework can be developed at the different responsibilities level.

• Smart Grids will allow an easy participation of the new technologies, including

all the components associated with distributed generation. Latin American

countries have an interesting opportunity to use non-conventional energy

resources because the good availability in comparisons with other countries.

• Specific cost-benefits scenarios must be analyzed in the various Latin

American situations by the different stakeholders and implemented

considering the potential of policy and regulation adaptation.

• The development of smart grids technologies relies on technology

interoperability, which is achieved through an adequate standardization.

jmgers@gersusa.com