Smart GridSmart GridImplementation StrategiesImplementation Strategies

Ray GogelFebruary 2010

SmartGridCity™

Agenda

Some Implementation Strategies

Smart Grid – What is it?

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Smart Grid?

Edison vs. the 21st Century

One Directional Grid vs. Omnidirectional

Analog vs. Digital

Hype vs. Hope

Flintstones vs. Jetsons

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Many Definitions

• Analytics

• Sensing

• Communications

• Automated Control

• Optimization

• And the list goes on ……

The definition of Smart Grid actuallydepends on the problem we are trying to solve

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Intelligent Systems TodayAGC (Automatic  Generation Control)

SCADAEMS

GISOMS

Asset ManagementWFM

CIS

The World According to Edison and Tesla

So What IS the Problem?

The electric grid was created at a time when :- pollution was without consequences- energy was cheap.

These design points are no longer valid5

Smart Grid Implementation Scenarios

Operations and Reliability Enhancement

EDGE

EDGE

Volatility Resides at the Edges

Optimize Power Delivery

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Renewables, Distributed Generation

End User Energy Management

Combining Optimization with Energy Management

Optimizing Power DeliveryOptimizing Power Delivery

•Dynamically control voltage 24X7 to optimize power needed and/or carbon produced

•Reduce energy lost in distribution (“line losses”)

• Result is savings of up to 3‐5% of energy generated or purchased at any time, without impact on customers

•Dynamic adjustment can occur in minutes providing alternative to spinning reserves and solution to intermittent renewables

•Use of distribution as a ‘shock absorber’ for volatility, rather than generation spooling…

Customer Energy Management Customer Energy Management and Distributed Generationand Distributed Generation

•Adjust and aggregate customer load through demand response, typically in peak periods (~ 80 hours a year), creating high value capacity and energy

•Manage emerging forms of distributed generation, renewables and PHEV’s

• Enable new and innovative residential and business energy management products

Real‐time generation dispatch based on cost, emissions and other driversDiagram courtesy of Xcel Energy

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Key Benefit Areas

DescriptionDescription ValuationValuation

GridOptimization

• Reduce technical losses and optimize power flow at select areas or throughout the entire distribution system.

• Can be used as virtual peaking capacity in times of economic or system security emergency

• 12R line loss mitigation• Reduce unnecessary consumption• Peak shaving capacity

Carbon Reduction

• Monetization of reduced emissions through energy efficiency applications: DVO – Continuous Voltage Regulation; Line Loss Mitigation‐Var Control; Line Loss Mitigation‐Phase Balancing; and Tamper and Theft Reduction

• Regulatory approved market value of mitigated emissions

Revenue Assurance

• Improve utility revenue collection processing• Reduce revenue losses from direct energy theft and unpaid consumer bills

• Meter tamper theft mitigation• Mitigated bad debts• Improved days payable

Distributed  EnergyResource 

Management

• Enabled real‐time, verifiable Demand Response programs to reduce load during peak periods

• Enable real‐time monitoring and management of Distributed energy resources such as distributed generation and PHEVs

• Labor related cost mitigation• Peak shaving capacity• Distributed generation capacity

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• Extend intelligent monitoring and connectivity of system assets and operations from the substation to the meter

• Voltage and current sensing, operational analytics and open standards‐based communication to provide actionable intelligence and control of utility devices

• Labor related cost mitigation• Capital cost mitigation• Bypass theft mitigation• Regulatory incentive yield improvement

Distribution Management

• Reduced labor costs associated with reading of meters through automation of data collection and system integration

• Labor related cost mitigationSmart Metering

SMART GRID CITYTM

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SmartGridCity™ Implementation Strategy and Results

• System Optimization Solution successfully implemented.

• Preliminary  Results  are  exceeding  expectations.  4  to  7%  efficiency impact versus an expectation of 1%.

Optimize Power Optimize Power DeliveryDelivery

• Last to start

• Enabled several in‐home energy management systems

• Integrated Meters with Xcel Billing System

• Roll‐out of broader program in 2010

• Monitoring impact of distributed renewables on grid assets and performance

• Detected unknown distributed renewables feeding onto grid.

• Just the beginning….

Renewables Renewables and and 

Distributed Distributed GenerationGeneration

• Xcel Energy moved from reactive to preventivemaintenance program.

• Voltage problems have been reduced by over 90%; there have been no customer voltage complaints this year.

• Unpredicted  transformer  failures  have  been  significantly  reduced.    7 detected and addressed prior to failure through July 2009.

Operations and Operations and Reliability Reliability 

EnhancementEnhancement

End User Energy End User Energy ManagementManagement

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Num

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f Com

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Month

Xcel SmartGridCityTM Preliminary Results –All in the span of less than one year

Source: Xcel Energy, “SmartGridCity™ Update: Project Status and Early Benefits”

Voltage Complaints by Year in City of Boulder

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Reduce VARs → Reduce Losses → Reduce Load → Reduce Emissions

• Actual substation load reduction achieved in this example was between 4% to 7% over the course of about an hour by optimizing the system

• Expected nationwide target is 3% to 5% of load– On national basis, 3% would save over $10 billion annually

– Reduce carbon equivalent to taking 15% of all cars in the U.S. off of the road 

As power factor improved...

… load decreased.

Grid Optimization – Initial Results

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Key Questions to Consider

• Do you know what you want?  And why?

• How will you overcome silos?

• How will you sequence technological change and dynamic pricing?

• How will you convert reams of data into streamlined actions?

• And…what happens when the grid flows both ways?

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