SMART GRID EXPORT OPPORTUNITIES

SEL © 2017

Schweitzer Engineering Laboratories

(SEL)

Denver, May 1, 2018André du Plessis

Travel funding was provided by the U.S. Agency for International Development. This presentation does not necessarily reflect the views of USAID.

• Protection and control

• Automation

• Computing

• Software

• Precise time

• Security for critical infrastructure

• Metering

• Communications

• Engineering services

• Training

We Provide End-to-End Solutions

Distribution

TransmissionGeneration

Control Center

Load

SEL Smart Grid Project Relevance … to National Renewable Energy Laboratory (NREL) and US Agency for International Development (USAID)• NREL microgrid controller

• USAID Distribution Automation Pilot, Bosnia-Herzegovina

• USAID Emergency Control Project, Republic of Georgia

NRELMicrogrid Control System• Competitive procurement to find best microgrid control technology

• Installation in NREL’s Energy Systems Integration Facility

• Five competing manufacturers

• 21-week microgrid control and cybersecurity evaluation

• A microgrid controller is the heart of a microgrid operation. It integrates different power generation sources e.g. wind, solar, thermal, battery and balances the combined generation and load at any given time. It can range in size from a local rural village with a few solar panels to the size of Denver.

US Energy Association (USEA) Bosnia Distribution Automation Pilot Project

• In collaboration with USEA and the US Agency for International Development (USAID)

• Cost-shared between USEA/USAID, SEL and the Brcko Municipal Distribution Company, Bosnia-Herzegovina

• Pilot provided automation equipment and software for two rural distribution feeders

• Pilot to serve as demonstration project for the technology in Bosnia and the surrounding region.

US Energy Association (USEA) Bosnia Distribution Automation Pilot Project … continued

• Outcomes (Year on Year, 2015-2016): • 51% reduction in number of outages• 58% reduction (8 hours) in duration of outages• Successful fault location reduces repair time• Maintenance cost reduction due to automatic system

reconfiguration in the event of a temporary fault

• SEL Received USEA Project of the Year Award (2016)

• “After years of problems, frequent power cuts and long-lasting interruptions, residents in this local community have a regular supply of electricity”: Radivoye Djuric, President of the Potocaricommunity in Brcko.

USAID Republic of Georgia Emergency Control System Project

• Country wide, automated emergency load shedding system for the transmission supply operator - GSE

• Purpose: prevent unplanned power blackouts

• Introduced advanced technologies in the region not yet in operation in Europe

USAID Republic of Georgia Emergency Control System Project … continued

• Outcomes: successful system operation prevented 20 power blackouts during a 28 month period (2014-2016)*

• Georgia’s GDP during this time was about $1.95 million per hour. Assuming an average duration of 1 hour per blackout this solution has saved Georgia $39 million. The solution cost $2 million.*

• Follow-on success:• First phase: Funded by USAID and competitively

procured through Tetratech• Second phase: Privately contracted by GSE based on first

phase’s success• Success begets success: 10 substation rehabilitation

project with the same customer, GSE. Funded by USAID and competitively procured.

*GSE presentation to the Asia Development Bank, Manila, June 2016

SEL International Smart Grid Market Breakdown Latin America, Asia and Africa

• Customers: utilities, industrials

• Power Utilities: generation, transmission and distribution

• Public and private

• “Secondary equipment” market• Power protection, control and automation

• Software

• Services (engineering & training)

Market Growth Areas for US Equipment and Services Suppliers

•RE grid integration

•Microgrids

•Automation

•Cyber security

• Substations: new & rehabilitated

Successful Smart Grid Products

•Technical• Secure communications• Speed of operation•Quality• Simplicity• Inter-operability

•Price

•Support and Training

Smart Grid: Market Challenges

• Primary vs secondary equipment conundrum

• Most procurements combine primary and secondary equipment• Limited secondary-only equipment procurement

unless as solution

• Large, turn-key projects for Engineering-Procurement-Construction prime bidders

• Re-peat consultants may use old designs

• Foreign financed projects

• International competition

Export Opportunities• Development Finance Institutions

Procurement• Focus on quality• Value for Money procurement

• Customer Relationship• Propose project after needs assessment• Team with complimentary suppliers• Utilize US agencies

• Prime Bidder (Engineering-Procurement-Construction firms)• Build relationships - ahead of procurement

• US Industry Export Collaboration• Smart teaming

Lessons LearntDevelopment Finance Institutions (DFI)

• Relationship with customer (DFI borrower) is supreme

• Two types of opportunities:• Bidding on published projects• Assist customer to develop project concepts

• Develop project concept: • Long term effort and trust building• Has to comply with procurement rules• Can not present conflict of interest• Not guaranteed to win

• Utilize DFI marketing opportunities such as offering “brown bag” or “lunch and learn” events

SEL DFI Renewable Energy (RE) and Smart Grid Participation• Provided pro bono technical experts for subject

matter presentations at workshops:• USEA: distribution automation, cyber security• World Bank: interoperability, power system stability

• Project Participation• World Bank; Wind energy grid integration; Mexico,

Comisión Federal de Electricidad, La Venta II wind farm, 850 kW

• World Bank; Hydro energy grid integration; Ghana, Volta River Authority, Akasombo Dam, 1020 MW

• World Bank; Solar rural microgrid; Mexico, ComisiónFederal de Electricidad, Programa Bandera Blanca, 13.8kV

• US Export Import Bank; Ghana, GridCo, Kintampotransmission substation automation

Photo: GhanaLive News

INTERNATIONAL OFFICES

157 COUNTRIESProducts in

Making Electric Power Safer,

More Reliable, and More

Economical for Over 30 Years

USEA Brcko video