Electric Utilities:An Industry in Transition

Wanda RederChief Strategy Officer, S&C Electric Company 

2016 IEEE President‐Elect Candidate

IEEE Distinguished LectureVancouver, Canada

May 12, 2016

1

Overview

• Trends and Drivers

• Lessons when technology changes the game

• Modern grid disruption

• My bet for the future grid with examples

• Many opportunities remain

2

S&C Delivers Integration Solutions

Grid EdgeStorage

10’s of kWSubstation Batteries

10’s of MW

Distributed Intelligence and Control

Micro‐grids

Solar Integration

Dynamic VARs

Single Phase Cutout MountedRecloser

GridModernization

Drivers

New Investor Models and MarketsNew Investor Models and Markets

Rapid Tech Change, Security ConcernsRapid Tech Change, Security Concerns

Increasing Environmental Needs Increasing Environmental Needs

Infrastructure is more prone to failureInfrastructure is more prone to failure

Trends and Drivers 

Growing Population, More Electronics Growing Population, More Electronics

5

Now

6

In 25 Years

Recognizing the Need for Power

Sources: “The Ampere Strikes Back: How Consumer Electronics Are Taking Over The World,” Energy Saving Trust, June 2007; “The Rise of The Machines: A Review of Energy Using Products In The Home From The 1970s to Today” Energy Saving Trust, June 2006; “Electric Power – The Next Generation: The Intelligent Grid,” CenterPoint Energy, April 2007

Infrastructure is Prone to Failure 

‘Frankenstorm’ Sandy hits USOctober 29, 2012

Grid modernization is a MUST for increased resiliency!

Source: Advanced Microgrids: Building the Business Case, Navigant, Feb 2015

(Source: National Oceanic and Atmospheric Administration)

U.S. Power Outages Affecting 50,000Customers Caused by Extreme Weather

Source: Advanced Microgrids: Building the Business Case, Navigant, Feb 2015

(Source: National Oceanic and Atmospheric Administration)

Canada: Increasing Environmental Needs

9

Canada Greenhouse Gas (GHG) Emissions Trajectory by Sector: 2010 - 2015

Source: Power Climate Prosperity: Canada’s Renewable Electricity Advantage

• World embarked on a 

shift to cleaner energy

• Canada target set to 

reduce GHG 30% below 

2005 by 2030

• How? Decarbonize

– Waste less

– Maximize Renewables 

– Electricity preferredSource: Clean Technica “Canada needs to double its renewable capacity” November, 2015

Energy mix: 2011 - 2035 Natural gas: 21% to 40% Coal: 49% to 25% Renewables: 4% to 11%

Implications: Accommodate distributed

renewables More flexibility New business models

Source: Black & Veatch Analysis - Energy Market Perspective

US: Increasing Environmental Needs

Technology Changes Things!

Source: “Utility Marketplace with a Texas Twist” Tim Hein, Oncor, April 2015

Rate of Solar installations per minute in the US is declining

2014: One installation every 2.5 minutes

Google Map Snapshot of IkeaFrisco, Texas

Change: Technology, Price, Behavior

Storage costs are following solarMore Electric Vehicles are Coming

Incremental capacity is coming from customers

New Investor Models and Markets

13

7MW/3MWH Energy Storage4.2 MW PV Plant 

Half Moon Ventures owns‐operates solar and storage for the Minster, Ohio community 

Minster Project Roles14

Merchant Market

Suppliers

Customers

Owner-Developer

Community

Community advocacy presents a promising business opportunity

Technologies:• Energy storage• Power electronics • Distributed intelligence• Adaptive protection• Layered architecture• Self‐diagnostic, healing• Data, cyber, analytics

Changes How We… Make Energy: • More distributed supply• Accommodate growth

Move Energy:• Flexible, intelligent, resilient• Increase visibility 

Use Energy: • Integrate end‐use activity• Empower customers

Source:  IEEE GridVision 2050

Old Grid

Modern Grid

© S&C Electric Company 2016, all rights reserved

Bi‐directional power flows is driving circuit design changes, new grid components and control systems

• Often inverter based (harmonics)

• Intermittent, uncertain output

• Often grid interconnection codes

• Capable of being observed, dispatched 

• Able to provide reliability services 

– Voltage support

– Frequency response

– Ramping 

– Inertia for bulk power operations

• Safeguard against cyber attacks

DER Considerations

17

Distributed Energy Resources (DER)

Using Storage to Manage Chaos

Source: SDG&E, June 2014 - Thomas Bialek

Batteries smooth intermittent solar generation

-4

-3.5

-3

-2.5

-2

-1.5

-1

-0.5

0

0.5

1:55 PM 2:24 PM 2:52 PM 3:21 PM

Pow

er(k

W)

PV Output

PV Smoothed by Storage

Control Ramp Rate

Benefits of Storage and Renewables

19

• Smooth intermittency 

• Minimize reverse power flow, keeps voltage within limits

• Store output and release coincidental with local load

• Control ramp rate

Net Load

Energy Storage ‐ Solar Hybrid Project

Energy Storage – Wind Hybrid Project

EfficientBuildingSystems

UtilityCommunications

DynamicSystemsControl

DataManagement

DistributionOperations

DistributedGeneration& Storage

Plug-In Hybrids

SmartEnd-UseDevices

ControlInterface

AdvancedMetering

Consumer Portal& Building EMS

Internet Renewables

PV

My bet: • Grid automation + 

energy storage

• Integration across applications 

• Optimized oversight with local intelligence

• Business models to unleash value

EPB Chattanooga’s Smarter Smart Grid

EPB Chattanooga500,000 customer municipal

Smart GridStarted with fiber everywhere

Smart Switches1200 units on all 12kV

Interruptions Avoided: 2011 - 2014

5:31:09 PM

11,258 customers without power

5:31:37 PM

10,000 customers restored

5:31:52 PM

800 more customers restored

5:37:47 PM

All customers restored

Storm Jan, 2013

Source: David Wade, EPB Chattanooga, presented for DOE, Dec. 2014 “EPB’s Smarter Smart Grid”

Distributed IntegrationS&C System VI for

20 MW Solar installation• More substation interconnections• Products

– Smaller footprint – Integrated meters and relays – Compact, sealed design – Easily operated – Enhanced safety

• Services– Reduced lead time– Skid delivery– 24x7 monitoring

• What’s important to you?

Modern Grid Accommodates Microgrids

23

Microgrid: • Interconnected loads and

distributed energy resources with defined electrical boundaries

• A single controllable entity that can connect and disconnect from the grid

What’s new?• Renewables• Storage

Gen

Bulk supply connection(sub-transmission)

Partial Feeder Micro-grid

Gen

Single Customer Microgrid

Feeder

Other FeedersFull Feeder

Microgrid

Full Substation Microgrid

Distribution Substation

GenGen

Gen

Bulk supply connection(sub-transmission)

Partial Feeder Micro-grid

Gen

Single Customer Microgrid

Feeder

Other FeedersFull Feeder

Microgrid

Full Substation Microgrid

Distribution Substation

GenGen

Source: EPRI

US Microgrid Forecasted Growth

Source: North American Microgrids 2015: Advancing Beyond Local Energy Optimization, Omar Saadeh, Green Tech Media

Microgrids… “expected to grow the market opportunity by over 3.5 times between 2015 and 2020, to over $829 million annually.”

Total Microgrid Generation Capacity by End-User and Region(Includes existing and planned capacity)

Storage Report for ONCORBrattle report for ONCOR, Nov. 2014 ‐“The Value of Distributed Electricity Storage in Texas”• 5,000 MW of distributed storage is cost‐effective at 

$350/kWh in ERCOT 

• Payback requires regulated investment deferral and merchant market 

• Deploy storage on distribution system and "auction" rights to 3rd parties to participate in wholesale market 

Telling the story with ONCOR Microgrid

Oncor Market Development  

Source: David Treichler, “ONCOR Energy Storage and Microgrid” for DOE in June, 2015

ONCOR Microgrid

• Utilizes distributed generation – two solar photovoltaic arrays– a microturbine– two energy storage units – four generators

• Energy storage is the backbone

A showcase to promote utilities to rate base energy storage batteries for distribution system support and wholesale market services

Distributed Intelligence with OversightDifficult to Manage Centrally

• Emerging conditions – Multi-directional power flow– More uncertainty– Less time to react– Pressure to reduce outages – More inter-connections– More dynamic operations

• Distributes intelligence is key

S&C IntelliRupter® PulseCloserDistributed intelligence

Two-way sensing, adaptive protection

Distributed Intelligence is Key

• Interrupt fault current• Segments load• Two‐way sensing• Adaptive protection• Detects power quality events

IntelliRupter® PulseCloser

TripSaver® II Cutout Mounted Recloser

• Single phase• Avoid truck rolls

A Modern Grid is Integrated

AnIntegrated

Grid

Graphic Source: Mark McGranaghan, EPRI “International Game Changers” Denver CO July 2015

US Utility Age Distribution TrendUS Utility Workforce Age Distribution for Total Company

Preliminary CEWD 2014 survey versus 2006 Results

2006

2014

Excludes nuclear suppliersExcludes nuclear suppliers

Source: Center for Energy Workforce Development. Includes actual data from about 2/3 of the gas and electric utlity employee population in the US. The information was supplemented with data from Economic Modeling Specialists International (EMSI).

Changing Workforce Needs

5/26/2016

32

Smart GridEngineering

Automatic Controls

Information Technology

Power Electronics

Computer Engineering

Marketing, Economics

Systems Theory

Energy Conversion

Public Policy

Signal Processing

Adopted from Source: Professional Resources to Implement the “Smart Grid”; Gerald T. Heydt and others. 2009 IEEE Power & Energy Society General Meeting

Security

Big DataAnalytics

Smart Grid Engineering

Standards

Transmission &Dist. Engineering

Engineering Physics

Consumer Behavior

Communications

Smart Grid Computing Disciplines

• Computational intelligence• Cyber security and resilience• Data analytics and databases• Virtual computing• Visualization• Modeling and simulation• Self‐integrating systems• High‐performance computing• Messaging‐oriented middleware• Software verification and validation• Distributed multiple‐agent architecture

33

Source: IEEE Smart Grid Vision for Computing: 2030 and Beyond

34 20 November 2015

Future Direction Committee 2015 – 2016

Maturity Level

Smart Materials

ieee.org/futuredirections

IEEE Resource

• Visit at smartgrid.ieee.org

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35

Opportunities Remain• Regulatory, ownership, price issues

• Re‐defining the roles 

• Standards to advance interoperability of everything

• Develop workforce competencies

• Capability for dynamic operations

• Utilize lots of data with varying time domains

• Overcome cyber‐security obscurities  

Bulk Power System

DistributionOperations

Customer

Energy Provider

EnergyRelatedServices

Energy DeviceFirms

Energy Financial Services

Processes and coordination needed across multiple entities

In Closing…

Wanda RederChief Strategy Officer S&C Electric Company

Wanda.reder@sandc.com(773) 381-2318

Candidate for 2017 IEEE President-Electwww.wandareder.com

• Recognize the trends and drivers • Enable the future by looking forward...

– Make it– Move it– Use it

• Distributed intelligence, renewables, storage are key 

• Future workforce opportunities • IEEE Smart Grid and other Future 

Direction Initiatives are a resource• Get involved!