1. TiE Oregon's Clean Energy SIG
Focus on the Smart Grid
• Session 1 – May 2009
– An Introduction to the Smart Grid Market
• Smart Grid Overview
• Some local examples
• Highlights of some opportunities to pursue
• Session 2 – Early Fall 2009?
– Global smart grid activities
– Taking advantage of new legislation
– Some local examples
• Session 3 – Late Fall 2009?
– TBD
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
2. Meeting Agenda
Roger Hicks
Business Consultant
“What is the smart grid and why should we care?”
An introduction to the smart grid concept along with a summary of problems it will address and some business opportunity
examples in the emerging clean energy marketplace.
John Thornton
VP Manufacturing & Supply Chain, Porteon Electric Vehicles Inc.
“Moving towards the intelligent convergence of vehicles,
buildings and electric utilities.”
An overview of perspectives on the future of transportation and sustainability: electric vehicles (EVs) and the Smart Grid as
enabling technologies.
Bill Sproull
Sr. VP of Business Development & Customer Experience at ClearEdge Power
“Smart and Clean Distributed Generation”
How clean, high efficiency - smart - distributed generation can play a role in the Smart Grid of the future and, specifically as
an example, what ClearEdge Power is doing to bring compact fuel cell combined heat and power systems to
residential and commercial.
Wrap-up
“Discussion of Opportunities to Pursue”
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
3. What Is the Smart Grid and
Why Should We Care?
Roger Hicks
TiE Clean Energy SIG Meeting
5-5-09
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
4. Why All This Interest In Energy?
• Electricity is one of the largest and most capital-intensive sectors of the economy.
– Total asset value is estimated to exceed $800 billion, with approximately 60% invested in power
plants, 30% in distribution facilities, and 10% in transmission facilities.
• Annual electric revenues – the Nation’s “electric bill” – are about $247 billion
– Paid by America’s 131 million electricity customers, which includes nearly every business and
household.
– There are more than 3,100 electric utilities and additionally, there are nearly 2,100 non-utility power
producers, including both independent power companies and customer-owned distributed energy
facilities.
• There are a lot of risks we face by staying on the current path.
– Uncertain access to fuel resources – cost may go out of control
– Increasing harm to the atmosphere – global warming may change the planet
– Unpredictable power outages – cascading grid failures disrupt commerce
– Poor utilization of economic capital – unnecessary cost increases for energy users
• “The grid of the future will require $165 billion over the next 20 years” - EPRI
– The benefits to society will be $638 to 802 billion. The cost-benefit is 4 to 1.
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
5. The 100 yr old Electric Power Grid Will
Soon Go Through a Rapid Evolution
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
6. It’s Time to Think Different
• While the Smart Grid will utilize the latest
technology to achieve its goals, it is not just
about technology.
• Implementation of the Smart Grid will require
a complete rethinking of the public policy,
utility business models, business processes
and consumer behavior.
• This is a real paradigm shift!
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
7. So Just What is the Smart Grid?
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Nobody really knows yet but we sure are talking
about it a lot.
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
8. What is the Smart Grid?
• According to US Department of Energy (DOE):
– Smart Grid is the term used for an electricity
delivery system that is integrated with modern
digital and information technology to provide
improved reliability, security, efficiency and
ultimately lower cost to the user.
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
9. The Vision of the Smart Grid
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
10. Source: NETL – A Systems View of the Modern Grid – Spring 2009
Visit our website at www.netl.doe.gov/moderngrid/ toSmart Grid Presentation by
Oregon TiE - find out how you can
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become more involved in this national effort to modernize theHicks
Roger grid.
11. Benefits of the Smart Grid
• Summary of Energy-Savings & Carbon-Reduction
Mechanisms Enabled by a Smart Grid
EPRI – The Green Grid
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
12. Goals and Characteristics, Which Together
Characterize a Smart Grid
From: FERC – Smart Grid Policy, March 2009
• Increased use of digital information and controls technology to improve
reliability, security, and efficiency of the electric grid.
• Dynamic optimization of grid operations and resources, with full cyber-
security.
• Deployment and integration of distributed resources and generation,
including renewable resources.
• Development and incorporation of demand response, demand-side
resources, and energy efficiency resources.
• Deployment of “smart” technologies (real-time, automated, interactive
technologies that optimize the physical operation of appliances and
consumer devices) for metering, communications concerning grid
operations and status, and distribution automation.
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
13. Goals and Characteristics, Which Together
Characterize a Smart Grid
From: FERC – Smart Grid Policy, March 2009
• Integration of “smart” appliances and consumer devices.
• Deployment and integration of advanced electricity storage and peak-
shaving technologies, including plug-in electric and hybrid electric
vehicles, and thermal storage air conditioning.
• Provision to consumers of timely information and control options.
• Development of standards for communication and interoperability of
appliances and equipment connected to the electric grid, including the
infrastructure serving the grid.
• Identification and lowering of unreasonable or unnecessary barriers to
adoption of smart grid technologies, practices, and services.
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
14. Smart Grid Knowledge Domains
Energy Advanced Renewable
Management Metering portfolio
EMS RPS
Systems Infrastructure standard
AMI
Demand
Transmission
Response
and
T&D DR
Distribution
Smart Cap and
REP C&T Trade
Grid
Renewable
Energy
HAN DG
Payments
Home Area Distributed
Networks Generation
EV
FERC
TOU Federal
Electric
Energy
Time of Use Vehicles
Regulatory
Rates
Commission
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
15. How Utilities Respond to Peak Demand
Will Change
Oregon TiE - Smart Grid Presentation by
EPRI – The Green Grid 15
Roger Hicks
26. Challenges Facing the Utility Industry
Grid Efficiency Reliability
• Regulatory & • Aging grid infrastructure
environmental constraints • Faults are increasing due to
prohibiting supply growing loads with age
• Central supply costs are • Challenging asset
increasing management economics
• Distributed energy
resources are expensive
Load Management Grid Communications
• Demand is increasing beyond • Systems not prepared for
supply capacity emerging applications
• Metering infrastructure is • Limited network
inadequate for data needs management capability
• Growth is where supply is • Inadequate communications
not
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
27. BPL Global’s Solutions
Residential and
Distribution Distribution
Distributed Renewable
Substation
C&I Demand
Grid Grid
Generation & Storage
Premise
Substation Solutions
Distributed Energy Resource Integration and Management Meet peak demand for
Extend asset life and
Integrate and optimize renewable sources of supply and storage ~1/3 the cost of new
improve reliability
generation
Fault Location and Asset Protection
Identify and isolate faults to improve reliability
SG® - Integration and collaboration
•Power
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
28. Oregon TiE - Smart Grid Presentation by
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Roger Hicks
29. PV Powered’s SEGIS Award
• PV Powered was awarded one of 12 contracts after a competitive
solicitation process that attracted 27 applications
• Total US DOE funding to PV Powered is worth up to $5M
• The PV Powered project addresses five technology areas:
– Customized suite of PV material-specific MPPT algorithms
– Integration with commercial/industrial energy management (EMS)
systems
– Integration with utility Advanced Metering Infrastructure (AMI)
devices to enable a two-way interactive grid relationship
– Mitigation of issued associated with weather induced transients
– Smart string combiner tightly integrated with inverter
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
30. Where is the Smart Grid
on The Hype Cycle?
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
31. Is It Time for the Smart Grid?
Reasons to be excited Reasons to be cautious
– We are at an inflection point – It’s a stimulus driven market
– Innovation is needed to – Old industries change slowly
unlock value – The value proposition is
– It’s a long term movement unproven
– There is a large ecosystem – The benefits to consumers
are indirect
– Gov’t is favorable and
– Payback cycles are long
throwing money at it
– Alternatives are unattractive – It’s a complex combination of
technology, policy, businesses
– Lot’s of hype right now
and relationships
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
32. It’s Time to Deliver the Smart Grid
Source: PNNL
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
33. Thank You
Contact Me If You Want to Know More
about Smart Grid Opportunities
roger.hicks@comcast.net
503.807.7627
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
35. What is the Smart Grid?
• According the Federal Energy Regulation Commission (FERC)
– “The Smart Grid means a lot of things, but for us, the Smart Grid
means a more efficient transmission system that can reduce emissions
and increase reliability,” FERC Commissioner Philip Moeller said. “For
example, by minimizing line losses, Smart Grid technologies will allow
generators to produce less energy and less pollution, while delivering
the same amount of electricity to customers.”
• According to Electric Power Research Institute (EPRI)
– The term Smart Grid may be best understood as the overlaying
of a unified communications and control system on the existing
power delivery infrastructure to provide the right information to
the right entity (e.g. end-use devices, T&D system controls,
customers, etc.) at the right time to take the right action.
– It is a system that optimizes power supply and delivery,
minimizes losses, is self-healing, and enables next-generation
energy efficiency and demand response applications.
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
36. What Is the Smart Grid?
• According to PJM - a Regional Transmission Operator:
– Transitioning the grid from a radial system to a true network to
ensure connectivity from generation sources to end-use
customers.
– Converting from an electro-mechanical to a fully digital system to
support information and automation-enabled assets
– Enabling two-way communication within the grid community so
that customers can, if they choose, move from passive to active
participation in the marketplace.
• According to Oracle
– An electricity delivery infrastructure that leverages advancements in IT,
communications technology, and energy technology to improve
delivery utilization/resilience and empower consumers to address
environmental concerns
Oregon TiE - Smart Grid Presentation by
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Roger Hicks
37. What is the Smart Grid?
• According to Capgemini consulting:
Nobody can tell you today exactly what technologies the future Smart
Grid will incorporate but we have been able to compile a list of key
characteristics.
We expect each utility to have its own version of the Smart Grid but it is
clear it will have the following characteristics:
– Autonomous restoration
– Resist attacks – both physical and cyber
– Supports distributed resources – (generation, storage, demand reduction)
– Supports renewable energy sources
– Provides for power quality
– Provides for security of supply
– Supports lower operations costs
– Minimizes technical losses
– Minimizes manual maintenance and intervention.
Capgemini Report - Smart Grid: Leveraging Technology to by
Oregon TiE - Smart Grid Presentation Transform T&D Operating Models
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Roger Hicks