the true value of grid reliability

THE TRUE VALUE OF GRID RELIABILITY WEBCAST

AgendaAgenda

True Value of Grid ReliabilityTrue Value of Grid Reliability Paul Alverez, Principal and Practice Leader MetaVu

Role of Communications in a Reliable GridRole of Communications in a Reliable Grid Jeff Norman, Senior Consultant, Emerging

Technologies, SAIC Reliable Energy Control Networking Platform Sebastien Schikora, Director Product Management,

E h lEchelon Q&A

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l f li biliTrue Value of Reliability The Role of AMI and Benefits to Customers

Paul Alverez, Principal and Practice Leaderp

M t V IMetaVu, Inc.2240 Blake StreetDenver, CO USA 80205+1.303.679.8340www.metavu.com

About MetaVuCelebrating 10 years of sustainable business excellence

Environmental & Social Responsibility Advisory• Corporate sustainability strategy & planning

S i bl i i

Build the Business Case &

• Sustainable operations execution• Environmental/Social/Governance

performance and benefits evaluation

Roadmap

Optimize Implementation

Smart Grid Experience

Utility Practice Focus Areas• Renewable generation & energy strategy• DSM program design and optimization• Smart grid planning execution and

Measure Performance,

Value

“Smart Innovator Award – Top Sustainability Consultant”

• Smart grid planning, execution, and performance measurement

Representative MetaVu Clients….

Echelon Webinar: True Value of Reliability │ 4© 2002 ‐ 2011 MetaVu, Inc.

Smart Grid Performance and Value MeasurementComprehensive, Independent Deployment Assessments

Duke Energy Ohio

• 800,000 premises

Xcel Energy SmartGridCity™

• 46,000 premises, half with AMI

• Full AMI and DA

• Scope of Assessment

• Full DA on selected feeders

• Scope of Assessment (by Capability)

Estimated economic benefits: Fuel, Capital, Expenses, Revenue Capture

Estimated reliability benefits

Actual economic benefits: Fuel, Capital, Expenses, Revenue Capture

Actual non‐economic benefits: reliability, Estimated reliability benefits

Meter accuracy and RF emissions

Cyber security guideline conformity

Actual non economic benefits: reliability, environmental, safety

Relative value of capabilities from customers’ perspective (market research)

Systems/operations integration level

• Public version of report released June 30 on PUCO website

customers perspective (market research)

Organizational and operational change management in event of roll‐out


June 30 on PUCO website Projected roll‐out costs based on actual

Two‐way Data Flows in AMI systems

Backhaul

Utility

Today’s Topics(AMI) Reliability Opportunities(AMI) Reliability Opportunities• Meter Polling• Voltage Exception Reporting• Interval Data Aggregation

S ti li ti


Smart Meters

Customer Premises

Data Collectors

• Sectionalization‘Big Picture’ findings on Reliabili

Meter Polling

Goal:• Identify Outage Locations Faster

I E t t P di tiBackhaul

Utility• Improve Extent Prediction

Reliability Benefits:• Faster Time to Restoration

Economic Benefits:• Increased Revenue Capture


Smart Meters

Customer Premises

Data Collectors

• Reduced Restoration Costs

Voltage Exception Reporting

Goal:• Proactively identify

lit iBackhaul

Utilitypower quality issues

Reliability Benefits:• Dramatically reduce

power quality complaintsEconomic Benefits:• Reduces investigation costs


Smart Meters

Customer Premises

Data Collectors

• Reduces investigation costs

Interval Data Aggregation

Goal:• Improve distribution

it l iBackhaul

Utilitycapacity planning

Reliability Benefits:• Identifies capacity

issues before outageissues before outage occurs

Economic Benefits:


Smart Meters

Customer Premises

Data Collectors

• Prioritizes and right‐sizes capacity upgrades

Open

Sectionalization

Goal:• Reduce number of

Sectionalization

Flow

customers impacted by an outage

Reliability Benefits:Pow

er F

Reliability Benefits:• Reduces Customer

Minutes OutEconomic Benefits:

P

Economic Benefits:• Increased Revenue

Closed


Smart Meters

Customer Premises

SectionalizersSubstations

Switches

Open

Sectionalization


Sectionalization

customers impacted by an outageReliability Benefits:

• Reduces Customer Minutes OutEconomic Benefits:

• Increased Revenue

Closed


Smart Meters

Customer Premises


Switches

Closed

Sectionalization

Pow


Sectionalization

wer Flow

customers impacted by an outage

Reliability Benefits:

w

y• Reduces Customer

Minutes OutEconomic Benefits:conomic enefits:• Increased RevenueOpen


Smart Meters

Customer Premises


Switches

The Big PictureAdditional Perspective on Smart Grid‐Related Reliability Issues

• Reliability improvements significant in percentage terms, but not likely enough for customers to perceive

99.95% reliability = 4.4 hours out per customer per year

A 20% improvement translates into 3.5 hours

• Beauty (reliability value) is in the eye of the beholder

• The law of diminishing returns applies (big time!)g pp ( g )

• Smart grid’s greatest reliability value may lie in the future

Distributed Generation (PV Solar) and Storage Distributed Generation (PV Solar) and Storage

Electric Vehicles

• What’s the value of an insurance policy on future reliability?


• What s the value of an insurance policy on future reliability?

Thank YouThank You

Paul AlvarezPrincipal and Practice LeaderPrincipal and Practice Leader

MetaVu, Inc.

[email protected]

303‐679‐8340303 679 8340

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Energy Consulting and EngineeringSeptember 21, 2011

AgendaAgenda

Introduction to SAICIntroduction to SAIC Energy Consulting and Engineering Emerging Technologiesg g g

Benefits of developing a communications approach to enhance grid reliability

16

SAICEnergy Consulting and Engineering

We are a group of technically based engineers and businessWe are a group of technically based engineers and business consultants serving public and private industries and financiers worldwide. We develop sustainable solutions specific to engineering, economic, financial, planning, operational, and organizational , , p g, p , gchallenges.

We are part of SAIC, an $11 billion science, engineering, and technology company serving the energy, health, environment, and defense industries.

17

SAICIndustry RankingsEngineering News Record, 2011

#8 Top 50 in Program Management

#9 T i i & Di t ib ti#9 Transmission & Distribution

#14 Top Construction Management for Fee

#19 Top 200 Environmental Firms

#20 Top 20 Firms in Combined Design and CM/PM Professional Services

#21 P#21 Power

#42 Top 500 in Design

#61 Top 100 in Design-Build

FORTUNE M h 2011FORTUNE, March 2011

#5 World's Most Admired Companies: Information Technology Services

Newsweek, October 2010

#192 500 G t Bi C i i A i#192 500 Greenest Big Companies in America

Verdantix, 2010

#4 Green Quadrant Sustainable Engineering Firms

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CM/PM = Construction Management/Program Management

SAICUtility Life-Cycle Support Services

• Smart grid roadmap • Project valuation • Requirements • Renewable energy • Application

ConsultingConsultingIndependent and Independent and

Owner’s Owner’s EngineeringEngineering

Systems Systems Engineering and Engineering and

IntegrationIntegrationInformationInformationTechnologyTechnology

Utility Life Cycle Support Services DesignDesign--BuildBuild

• Smart grid roadmap• Stakeholder

facilitation• Strategic messaging• Capital investment

planning and

• Project valuation• Specification

development• Developer selection• Independent

engineering for

• Requirements definition, design, systems engineering and integration

• Program and project management

• Renewable energy plants

• LEED® building projects

• Energy efficiency projects

• Application management

• Infrastructure management –telecommunications/networks/NOC,

planning and management

• Transmission planning and market rules

• Rates

engineering for lenders, developers, owner’s engineers

• Due diligence support

• Procurement

• Micro grid design and implementation

• Grid operations, decision support systems, integrated di t ib t d

projects• Community energy

efficiency design• Critical infrastructure

projects• Build own operate

desktop, help desk• ERP/enterprise

systems support • CIS, MDMS, asset

management, GIS i l t ti dRates

• Power markets, fuels market

• Revenue bond finance

• Business process

Procurement management

• AMI, EMS, GIS, SCADA, T&D SA selection and implementation

i ht

distributed energy resources, load management, demand response

• Cyber security and information

Build, own, operate, maintain business models

implementation and integration

• Business process re-engineering

• Project management and integrationBusiness process

modelingoversight assurance

and integration• Outsourcing

Research & Development: Wave, Wind, Solar, Algae, Data Mining/Decision Support, Data AnalyticsAMI = advanced metering infrastructure; CIS = customer information system; EMS = energy management system; ERP = enterprise resource planning; GIS = geographic information system; MDMS = meter data management system; NOC = network operations center; SCADA = supervisory control and data acquisition; T&D SA = transmission and distribution security architecture;LEED i i t d t d k f th U S G B ildi C il i th U S d/ th t i

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LEED is a registered trademark of the U.S. Green Building Council in the U.S. and/or other countries.

Emerging Technologies Smart Grid Infrastructure

Services offered: Technologies evaluated: Technology screening and prioritization Technology due diligence Technical and business case analysis Vendor partnership development

Smart Grid communications infrastructure Home area networks (HANs) Home energy management systems

(HEMS)Vendor partnership development Pilot and technology demonstrations Bench and field testing

Distribution line sensors Transformer monitors Plug-in electric vehicles (PEVs) Smart metersSmart meters

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Emerging Technologies Key Strategies Drive Smart Grid Efficiency

Use a standards-based approach Apply standards in developing smart grid infrastructure to

economic and longevity reasons.

Use IP-based communications systemsUse IP based communications systems Apply Internet-based protocols (where available) as the standard

for transport layer.

Buy versus build Buy versus build Utilize existing publicly available communications infrastructure

where it makes sense.

Used distributed processing/intelligence systems Distribute processing/intelligence to help alleviate latency and

cost-of-transport issues associated with heavy volumes of data.

21

p y

Source: Duke Energy

Emerging TechnologiesSmart Grid ArchitectureSmart Grid Architecture

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Source: Duke Energy, “Developing the Communications Platform to Enable a More Intelligent Grid” WEBINAR

Communications Approach Benefits of Using Public Carrier NetworksBenefits of Using Public Carrier Networks

Real timecommunications A l f illi d (1)Real‐time communications ‐ Average latency of milliseconds (1)

Large coverage ‐ 98% US population is covered (2)

$

Standard‐based ‐ Backed by 3GPP & 3GPP2 bodies

Affordable cost ‐ Connectivity cost decreasing continuously (3)

High scalability ‐ 5B+ connections worldwide (4)

R li bilit & itReliability & security ‐ Used in government & finance sectors

(1) CDMA Development Group; “Mobile Broadband Comparison”; March 2008(2) Federal Communications Commission; “Connecting America: The National Broadband Plan”; March 2010(3) SmartSynch webinar; June 9, 2010 (http://energycentral.fileburst.com/Product_webcasts/20100609_Cellular_Smart_Grid_SSI.swf)(4) Wireless Intelligence estimate

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( ) g

Source: Qualcomm M2M = machine to machine

Communications Approach Wi Fi T h l B i U i l d SWi-Fi Technology Brings Unrivaled Success 10 percent of the world’s population uses

Wi-Fi Approximately 2 billion cumulative

shipments of Wi-Fi to date Annual double-digit growth Ubiquitous in home, enterprise, industry,

education, and government environments Consumers love Wi-Fi:Consumers love Wi Fi:

7 out of 10 users would give up chocolate before Wi-Fi (Kelton Research, 2008)( e o esea c , 008)

73 percent of university students say Wi-Fi helps them get better grades (Wakefield Research, 2008)

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( , )Source:Wi‐Fi Alliance

Wi-Fi = wireless fidelity

Communications Approach Wi-Fi IC Shipments to Double by 2015

25 Source:Wi‐Fi Alliance

Wi-Fi = wireless fidelity IC = interchange carrier

Communications Approach Communications Node Enables Distributed Management

Communications nexus for anintegrated networkintegrated network WAN communications LAN communications modularity (Wi‐Fi, PLC, ERT)y ( )

Distributed grid management enabled by local processing and memory

Energy sensing applications current, voltage, power quality power factorquality, power factor

Source: Duke Energy, “Developing the Communications Platform to Enable a More Intelligent Grid”http://www.duke‐energy.com/pdfs/OP‐David‐Masters‐SmartGrid‐Comm‐Platform‐02‐01‐11.pdfWAN = wide area network; LAN = local area network; Wi-Fi = wireless fidelity; PLC = power line communication;

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WAN wide area network; LAN local area network; Wi Fi wireless fidelity; PLC power line communication; ERT = encoder, receiver, transmitter; RF = radio frequency; PEV = plug-in electric vehicle

Communications Approach Communications Node Supports Multiple FunctionalitiesCommunications Node Supports Multiple Functionalities Serves as a data aggregator for end points Performs remote analytics and appropriate control Provides short-term storage for end-point and local analytics data Provides integrated input/output options Provides embedded intelligence into the grid itself at key locations Serves as a router that forwards data between end devices, nodes, and servers Serves as a gateway and performs protocol conversion, as needed

27 Source: Duke Energy

Communications Approach Communications Node and Potential Software Applications

Application Description

Voltage Monitoring Utilizes voltage sensing at the transformer and meter to generate exception reports which indicate voltage regulation problems

Transformer Overload Monitoring Monitors loading on transformers and provides real-time alerts whentransformer is overloaded

Th h li d i th t t ( ) d id tif thRemote Fault Detection Three-phase line devices that measure current (amps) and identify the fault current and location of a fault

Outage and Restoration Notification Remote and automated notification of power outages

Ability to remotely configure and control capacitor banks and regulatorsIntegrated Volt/Var Management Ability to remotely configure and control capacitor banks and regulators to achieve specific power factor and voltage objectives on the grid

Demand Response Event Management Remote control of customer equipment to manage peak capacity and grid operation issues

Street Light Monitoring Monitoring of streetlights to ensure they are operating appropriatelyStreet Light Monitoring Monitoring of streetlights to ensure they are operating appropriately

PEV Monitoring Remotely identify in real time where PEV vehicles may be located and charging

Source: Duke Energy PEV = plug-in electric vehicle

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SEBASTIEN SCHIKORA, DIRECTOR PRODUCT MANAGEMENT, ECHELON

Introducing Echelon

Echelon Energy Control Network: open, intelligent, distributed control

Market FieldGlobal Passionate

open, intelligent, distributed control

MarketMaker

FieldProven

GlobalInnovator

PassionateCustomers

20years

100patents

100Msmart devices

>1,000 customers

First Energy Control Network

HQ SiliconValley

“Plant-to-Plug” solutions

Commercial, Utilities

30

y

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A Fundamental Shift Is UnderwayYESTERDAY:• Single source, local• Steady-stateC ti• Captive consumer

• Ubiquitous, cheap• Single business model

TODAY:TODAY: • Distributed energy sources, global• Erratic demand• Consumer choice and participationK GDP t i

31

• Key GDP component, price pressure • New business models

31

Taking the Smart Grid beyond meteringStarting now we make the “other end of the wire” smart

32

Why does the communications network d t b li bl ?need to be reliable?

33

Field Proven ReliabilityField Proven ReliabilityCustomer Reliability Load Profile

DataReadings # of Meters

Tested

99 –100% Extended Hourly 600,000*

99.7 – 100% Extended Hourly 200,000


99 7 100% E t d d H l 50 00034


*tests conducted on a pilot sample of the total number of meters

Echelon Solution ComponentsEchelon Solution Components

ANSI MetersANSI Meters System Software Data Concentrators Data Concentrators Edge Control Node

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The Edge Control Node (ECN) 7000 SeriesP b ilt f th S t G idPurpose-built for the Smart Grid

Multiple communication pathsp p EV-DO, Wi-Fi, GPS, 900Mhz RF, …

Variety of integrated sensor and input options Open for expansion No limits, no licenses, no restrictions

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Join Leading Utilities On the Journeyg y

CoCo

600,000 smart meters installed; high

customer satisfaction with

$8M saved annually due to remote meter

readings and $2M saved ann all in net ork and

Achieved a return on investment in 4

years: invested 2.2B E d 500M Eremote controlannually in network and

communication costsEuro and earn 500M Euro

per year

From plant to plug:Smart street lighting Customer satisfaction

10% increase in customer sat in 1yr.

Smart street lighting, residential demand response

and smart meteringincreased 26% and complaints reduced with

370,000 smart meters

3737

Discoverthe power of controlthe power of control

Q&A

Thank You For AttendingThank You For Attending

You will receive two whitepapers:You will receive two whitepapers:

Duke Energy whitepaper referenced today:Duke Energy whitepaper referenced today:

“Duke Energy: Developing the communications platform to enable a more intelligent grid”

E h l li bilit t d Echelon reliability case study:

“NES Load Performance Test in Kaiserlautern Germany”39

NES Load Performance Test in Kaiserlautern Germany