Dr. Walawalkar\'s presentation @ Grid Week Asia

1. Analyze.
Simplify.
Implement.
Capturing the value of
Smarter Grids
Dr. Rahul Walawalkar
Vice President,
Emerging Tech & Markets,
Customized Energy Solutions
Customized Energy Solutions Ltd. Customized Energy Solutions India Pvt. Ltd.
A 501, GO Square
1528 Walnut Street, 22nd Floor
Philadelphia, PA 19102 USA
Presented at Aundh - Hinjewadi Link Rd, Wakad
Pune, Maharashtra 411057 India
Phone: +1-215-875-9440
Phone: 91-989-205-4504
Fax: +1-215-875-9490
info@ces-ltd.com
info@ces-ltd.com
© 2012 Customized Energy Solutions Ltd. 1

2. Analyze.
Simplify.
Implement.
Electricity Generation and Population Growth
© 2011 Customized 2
Energy Solutions Ltd.
Source: Gapminder.org

3. Analyze.
Simplify.
Implement.
Drivers for Smart Grid projects
Operational
Improving Grid Reliability
Improve transfer capacity
Deployment of AMI & associated IT infra.
Renewable integration
Expansion of Demand Response
Social
Lower energy prices
Jobs growth
Cleaner environment
3

4. Analyze.
Simplify.
Implement.
Overview of a smarter electric grid
Adapted from Walawalkar , Tongia et. al 2007

5. Analyze.
Smart Grid:
Simplify.
Implement.
Best Defined by Functionality
Objectives of the smart grid are
Enabling informed participation by customers
Accommodating all generation and storage options
Enabling new products, services, and markets
Providing the power quality for the 21st century economy
Optimizing asset utilization and operating efficiently
Addressing disturbances through automated prevention, containment,
and restoration
Operating resiliently against all hazards
Source: US Department of Energy
5
5

6. Analyze.
Simplify.
Implement.
Emerging Business Models
Electric Supply
Improved Asset Utilization & Reduced Price Risk
Integration of Renewables, Distributed Generation & Storage
Transmission & Distribution Utilities
Smart Distribution Grids
Transmission Investment that Can Adapt to Alternative Futures
Operations = System Integration + Markets
Consumer Applications
Vendor / Utility Partnerships & Competition
Energy Management, Productivity, & Consumer Experience Apps
Intelligent, Low-Energy Buildings Integrated Design
Transportation
PHEVs, EREVs, & EVs with Smart Charging
Reuse of Batteries on the Grid
6

7. Analyze.
Simplify.
Implement.
Challenges for Smart Grid Deployment
Defining and understanding business case
System planning & selection of right projects
Regulatory & policy
Consumer acceptance
Culture and education
Technical & Engineering Design
Workforce training and education
7

8. Analyze.
Simplify.
Implement.
Capturing the value from smarter grids
Case 1:
Renewable Integration
Case 2:
Demand Response
© 2012 Customized Energy Solutions Ltd. 8

9. Analyze.
Simplify.
Implement.
India – Wind and Solar Resource Availability
13-17 GW of wind anticipated by 2013 Goal of 20 GW of solar by 2022
Solar Map
© 2011 Customized Energy Solutions Ltd. 9

10. Analyze.
Simplify.
Implement.
Renewable Energy Cost Trends
10

11. Analyze.
Simplify.
Implement.
Challenges in integration of renewables
Source: Dr. Michael Milligan NREL /Customized Energy SolutionsApt, CMU
© 2011
AWEA : Dr. Jay Ltd. 11

12. Analyze.
Simplify.
Implement.
India Grid Frequency
© 2011 Customized Energy Solutions Ltd. 12

13. Analyze.
Simplify.
Implement.
Regional wind power generation forecast for Germany and real
observation data
© 2011 Customized Energy Solutions Ltd.
http://www.meteologica.com/meteologica/content/regional-forecast 13

14. Analyze.
Simplify.
Implement.
Integrating advanced wind forecasting & scheduling
Internet
CES-SecureRT or Private
Network Wind Facility 1
Data Acquisition System
-- Secure internet SCADA
Facility Real Time Data (output,
-- Database/interface wind, availability, etc)
Internet Wind Facility n
Internet w/ VPN
based Internet Encryption
FTP site
Facility
Wind
Output /
Output State Load Dispatch
Availability /
Forecasts Center (SLDC)
Wind Data
(15 minute)
Wind
Customized’s Market Operations Center currently actively
Forecast
Provider manages over 2650 MW of generation, energy storage and
demand response resources to maximize profits for our clients.
© 2011 Customized Energy Solutions Ltd. 14

15. Analyze.
Simplify.
Implement.
India – Grid Frequency Analysis
© 2011 Customized Energy Solutions Ltd. 15

16. Analyze.
Simplify.
Implement.
Role of Energy Storage in Renewable Integration
Adapted from EPRI & AEP presentation Energy Solutions Ltd.
© 2011 Customized 16

17. Analyze.
Simplify.
Implement.
Role of Electricity Markets in understanding the value
Provides price transparency to quantity value proposition of
various EES technologies
Market Design
Access to various markets for
energy,
ancillary services
capacity
Generation Supply mix & Demand Curve
Market size
Locational factors
Electric transmission network & interconnection
17

18. Analyze.
Simplify.
Implement.
Smart Grid (EES) Demonstration Projects
Major projects include: CAES demonstration (NY and CA), Renewable Integration (CA, TX, NM), Peak
Shaving, Community Energy Storage and demonstration of new technologies.
Visit www.energy.gov for additional details.

19. Analyze.
Simplify.
Implement.
Case Study 2: Why Demand Response (DR)?
DR can reduce marginal costs of peak production
Especially the case where generators are paid market clearing prices
under uniform auctions
DR of 5% can mitigate market power, and reduce
uneconomical investment in peaker units (as per studies)
India has virtually no peaker units – we resort to load-shedding!
DR might also manage variability in supply from renewables
such as wind and solar PV
19

20. MW
35000
30000
25000
20000
15000
10000
5000
0
1-Jan
13-Jan
25-Jan
6-Feb
18-Feb
1-Mar
13-Mar
25-Mar
6-Apr
18-Apr
30-Apr
12-May
24-May
Days in Year
5-Jun
17-Jun
29-Jun
11-Jul
23-Jul
4-Aug
16-Aug
28-Aug
Load Profiles
9-Sep
21-Sep
3-Oct
Summer Months
15-Oct
27-Oct
8-Nov
20-Nov
2-Dec
14-Dec
26-Dec
S1
S5
S9
S13
Analyze.
S17
Simplify.
S21
Implement.
Day
Hrs in

21. Analyze.
Simplify.
Implement.
Short Run Marginal Cost Curve & Price Duration Curve
* This price duration curve shows only the wholesale energy prices corresponding to the generation component of customer’s
electricity bill. T&D costs are added onto these wholesale energy costs.

22. Analyze.
Simplify.
Implement.
Demand Response can help balance supply & demand
Energy Efficiency
© 2011 Customized Energy Solutions Ltd. 22

23. Analyze.
Simplify.
Implement.
Potential benefits of demand response
Increased competition
Operational savings
Lower market prices
Reduced price volatility
Improved grid reliability
Improved customer options
Providing ancillary services
Positive environmental benefits
23

24. Analyze.
Simplify.
Implement.
Summary
There is tremendous growth potential for renewable
integration as well as demand response in India
Current grid and supply mix is not geared to tackle the
potential challenges that could impact power quality and
reliability
Smarter grids utilizing emerging technologies such as
energy storage and smarter regulation can help
Need to learn from international experiences as well as
challenges faced by wind energy in recent years
© 2011 Customized Energy Solutions Ltd. 24

25. Analyze.
Simplify.
Implement.
Contact US
New York, NY
Folsom, CA
Philadelphia, PA
Midlothian, VA
Mumbai, India
Richardson, TX
Carmel, IN Pune, India
Customized Energy Solutions Ltd. Dr. Rahul Walawalkar Customized Energy Solutions India Pvt. Ltd.
1528 Walnut Street, 22nd Floor Vice President, A 501, GO Square
Philadelphia, PA 19102 USA Emerging Tech & Markets Aundh - Hinjewadi Link Rd, Wakad
rahl@ces-ltd.com Pune, Maharashtra 411057 India
Phone: +1-215-875-9440
Phone: 91-20-32407682 Phone: 91-20-32407682
Fax: +1-215-875-9490
Mobile: 91-989-205-4504 info@ces-ltd.com
info@ces-ltd.com
© 2011 Customized Energy Solutions Ltd. 25