A look at the next wave of smart grid and how AMI, distribution automation and synchrophasor technology will support functionality and benefits

1. ENERGY
Delivering Benefits
Delivering Benefits
with a Smarter Grid
Navigant Reference: 850179
©2011 Navigant Consulting, Inc.
N i tC lti I
D I S P U T E S & I N V E S T I G AT I O N S • E C O N O M I C S • F I N A N C I A L A D V I S O RY • M A N A G E M E N T C O N S U LT I N G

2. Navigant Smart Grid Service Offerings
Navigant works with clients to develop Smart Grid strategies and
implement Smart Grid programs
implement Smart Grid programs.
Service Offerings
Service Offerings Competencies
SMART GRID STRATEGY Visioning Process and Strategic Objective
Development
Total Value Assessment and Dynamic Rates
Analysis
A aly i
Vision & Business
Strategy Case Strategic Option and Planning Development
Business Analysis and Business Case
Development
e e op e t
SMART GRID IMPLEMENTATION ARRA Reporting and Compliance
PMO/ Construction Management / EVM
Implementation Smart Grid Monitoring & Customer Interface and Change Management
Planning Implementation Evaluation
Smart Grid and Distribution Technology
IT / Systems Integration / Cyber Security
IT / Systems Integration / Cyber Security
©2011 Navigant Consulting, Inc. 1
ENERGY

3. Smart Grid Deployment Waves
We are entering the “Second Wave” of smart grid deployments where
deeper understanding of the business case will become critical.
d d t di f th b i ill b iti l
Future Waves
“Addressing Strategic Needs”
Second Wave
Se o d Wa e
“Understanding the
stment
Business Case”
• Targeted
Targeted
Rate of Inves
deployment
First Wave
“Laying the Foundation • Scaling up deployment • Gradual build‐out
and Learning” • More rigorous business • Continuous
Cumulative R
cases improvement
• Cost recovery
• Demonstrating value
C
• Pilot programs and demos
Pilot programs and demos
• Government incentives and
subsidies
• Regulatory mandates
2005 2015 2020
©2011 Navigant Consulting, Inc. 2
ENERGY

4. Smart Metering and Advanced Metering Infrastructure
Smart metering and Advanced Metering Infrastructure will allow
utilities and their customers to manage electricity consumption.
utilities and their customers to manage electricity consumption
Functionality
• Real‐time load measurement
and management by utilities
• Optimization of electricity
p y
usage by customers
Benefits
• Peak demand reduction
• Lower meter reading and
Sources: Elster, Navigant
operations cost
operations cost
• Faster restoration of power after
outages
©2011 Navigant Consulting, Inc. 3
ENERGY

5. Distribution Automation
Distribution automation technologies are being implemented improve
reliability, increase operational efficiency, and save energy.
reliability increase operational efficiency and save energy
Functionality
• Feeder switching and
reconfiguration
• Voltage control
g
• Equipment health monitoring
Benefits
• Lower distribution operations
and maintenance costs
• Higher reliability and power
Higher reliability and power
Sources: S&C Electric, Cooper Power Systems
quality
• Energy savings from customer
equipment and distribution
equipment and distribution
©2011 Navigant Consulting, Inc. 4
ENERGY

6. SynchroPhasor Technology
SynchroPhasor technology will monitor electrical conditions across
regional grids and deliver that information to operators.
regional grids and deliver that information to operators
Functionality
• Wide area monitoring
• System visualization
• Advanced control applications
Advanced control applications
Benefits
• Higher grid reliability
• Reduced transmission
congestion
Sources: Southern California Edison, • Better management of variable
Schweitzer Engineering Laboratories
renewable energy resources
©2011 Navigant Consulting, Inc. 5
ENERGY

7. DOE ARRA Smart Grid Programs
DOE’s ARRA Smart Grid Investment Grant and Demonstration
programs have been a critical catalyst for US smart grid deployment.
programs have been a critical catalyst for US smart grid deployment
American Recovery and Reinvestment Act Smart Grid Programs
Smart Grid Investment Grant Program Smart Grid Demonstration Program
• $3.4 billion in federal funding • Regional Smart Grid Demonstrations
• $8.2 billion of total project value • 16 projects selected
• 99 projects selected • $435 million in federal funding
• Project categories: • $877 million of total project value
• Customer Systems • Energy Storage Demonstrations
• Advanced Metering • 16 projects selected
Infrastructure
I f t t • $185 million in federal funding
• Distribution Systems • $770 million of total project value
• Transmission Systems
• Equipment Manufacturing
Equipment Manufacturing
• Integrated and Crosscutting
There are also ten Renewable and Distributed Systems Integration (RDSI) and
High Temperature Superconductor projects.
©2011 Navigant Consulting, Inc. 6
ENERGY

8. Increasing Smart Grid Functionality
In the coming years, smart grid technologies will support higher
functionality and grid automation.
functionality and grid automation
• Leverage the sensors and Automation
communications networks Remote
installed during the first Control
wave Sensing and
Reporting
• Use the technologies to
develop “apps” that enable
operational efficiency, • Increase speed to impact
resilience, and optimization
• Standardize processes
• Reduce cost
©2011 Navigant Consulting, Inc. 7
ENERGY

9. Smart Grid Benefits
The resultant benefits will come from areas that have been difficult to
demonstrate and monetize in the past.
demonstrate and monetize in the past
Smart Grid Benefits
Type Description Examples
Benefits related to utility or consumer costs that • Reduced T&D operations costs Easier to
Financial can be expressed directly in financial terms
terms. • Lower electricity bills for customers monetize
Benefits related to power interruptions or power
• Shorter power outages
Reliability quality, but that may not be easily expressed in
• Less severe voltage sags
financial terms.
• Reduced CO2 emissions
Environmental Benefits related to air polluting emissions.
• Reduced SOx and NOx
Benefits related to maintaining a secure energy • Reduced oil consumption Harder to
Security supply and infrastructure. • Fewer, or smaller blackouts monetize
Source: Navigant
©2011 Navigant Consulting, Inc. 8
ENERGY

10. A Tool to Monetize Smart Grid Benefits
Navigant’s Smart Grid Computational Tool is based on a rigorous
analytical framework being utilized for over 140 U.S. projects.
analytical framework being utilized for over 140 U S projects
Inputs Outputs
Smart grid project
S a t id oje t AMI/Smart Meters,
A I/
Assets, Functions, Automated Feeder
and Line Switching
Monetary Value
and Mechanisms
of up to 22
Data that Annual Generation Benefits
corresponds to Costs, Number of
Impact Metrics Tamper Detections
All Output
Data derived from Value of Service, is calculated NPV Analysis
estimates and over
assumptions
Price of Capacity at
Peak, Value of CO2
SGCT multiple
of Project
of Project
Discount Rate, years
Cost Parameters
Inflation Rate,
and Escalation
Population
Factors Sensitivity
Sensitivity
Growth
G h
Analysis of
High and Low case Project
Sensitivity Factors
Value of CO2
Source: Navigant
©2011 Navigant Consulting, Inc. 9
ENERGY

11. Metrics to Demonstrate Impact
Achieving smart grid benefits will require metrics that demonstrate
impact.
impact
Performance metrics can be used
to demonstrate smart grid impact
Smart Grid
Strategy
• Operational efficiency
• Reliability improvement
• Customer satisfaction
Lessons Systems • Customer demand profiles
Learned Deployment
• Capital investment deferral
• Asset utilization
• Electricity cost savings
Performance • Fuel savings
Measurement
• Generation mix
• CO2 reductions
©2011 Navigant Consulting, Inc. 10
ENERGY

12. Key
C O N T A C T S
CONTAC TS
Forrest Small
Director
Burlington, Massachusetts, USA
+1 (781) 270‐8303
Forrest.Small@navigant.com
F S ll i
©2011 Navigant Consulting, Inc. 11
Confidential and proprietary. Do not distribute or copy. ENERGY