Smart Grid Projects and Renewable Energy

Pilot Projects and Lessons Learned

Sandra McCardell, MBA, LEED AP BD&CPresident

11th Annual PQSynergy International Conference – Septmber 2011 - Chiang Mai, Thailand

Presentation Outline

• Smart Grid Elements• Push towards

Renewables in Smart Grids

• Pilot Projects – General Comments

• Renewable Energy in Smart Grids

• 4 Pilot Projects– Summary– Lessons learned

The Smart Grid

Source: The Grid of The Future, T-Systems Customer Magazine BEST PRACTICE, 0212010

Source: Elster; Accelerating Smart Grid Benefits with Hosted Solutions for Utilities, Aklia Ganapathy, webinar 7/2011

Why Smart Grid?

Source: Kazuyuki Kakada, “Smart Grid Related Activities in NEDO, Smart Grid Advisory Meeting, 10/2009

Characteristics of Renewable Energy in Smart Grids

• Generation Types:– Traditional Generation– Wind– Solar (various technologies)– Hydro– Biomass– Geothermal– Electric vehicle

• Transmission and Distribution 2-way power flow

• Active and Fluctuating Operations

• 2-way (or more) communications

• High Variability and localized solutions

For Utilities – Opportunities with Renewables in Smart Grid

• Regional planning & coordination• Build off existing infrastructure• Increased reliability and security• Help “Self healing”• With “real time” decision making,

provide local alternative generation• Integrate different generators &

generator types

For Utilities - Challengeswith Renewables in Smart Grid

• Lack of customer understanding• Utilities need to change thinking to react

more quickly• Variability & differential generation

patterns• Lack of standards and interoperability• Financial models for cost recovery must

change• Security of grid• No “one size fits all” solutions

Countries with renewable energy targets

Countries without targets

Countries with targets

From 45 in 2005 to 85 in 2010

Source: The Race for New Energy, Wilson Rickerson, Global New Energy Summit 2011

Pilot Projects are Testing…

represents Advanced Metering

Infrastructure (AMI)

represents Integrated Systems

(IS)

represents Customer Systems

(CS)

represents Transmission

Systems (TS)

represents Distribution

Systems (DS)

represents Regional

Demonstration (RD)

represents Equipment

Manufacturing (EM)

represents Storage

Demonstration (SD)

International Projects

Source: http://www.sgiclearinghouse.org/

International Pilots• Elektromed • Elektromed • Turkey • Grinpal Energy Management • Grinpal Energy Management • India • Intelligent Energy System (IES) Pilot Proj

ect

• Energy Market Authority (EMA) • Singapore • Jeju Smart Grid Test-bed • Korea Smart Grid Institute (KSGI) • South Korea • KESC - Karachi Electricity Supply Compan

y AMI

• KESC - Karachi Electricity Supply

Company • Pakistan • LESCO - Pakistan Electricity Company • Pakistan Electricity Company • Pakistan • Smart Grid Demonstration Project in Sha

nghai World Expo

• Shanghai Municipal Electric Power Company

• China • Smart Grid Demonstration Project in Sin

o-Singapore Tianjin Eco-city

• Tianjin Electric Power Company • China

US Projects

Source: http://www.sgiclearinghouse.org/

Pilot Projects Presented

• Powerstream in Ontario, Canada

• CenterPoint in Texas, USA

• Friedrichshafen (“T-City”), Germany

• Kuzumaki Prefacture, Japan

PowerStream – Ontario, Canada

• Renewables Picture: – Currently primarily hydro– Potential small RE projects

• Several integrated “pilot projects:– Communications interface

with GIS

– “Self Healing” Grid– Digital Fault Indicators– Smart Meters for

Distribution Transformers– Vehicle Battery “smart

charging”– Home Area Networks

“Go Green with Powerstream”Source: “A Brave New World”, Edward Chatten, SVP Smart Grid & Strategic Support, Smart Grid Technology Conference, San Jose CA June 2011

Guiding Principles

• Customer Empowerment• Improve Reliability• Focus on Value – Shareholders,

Customers• Increase Safety• Integrate with energy

conservation & DSM programs• Explore regional opportunities

• Leverage – equipment, information, programs, enterprise systems

• Recover all costs• Support local green energy &

economic development goals• Maximize security of grid and

customer information

Source: “A Brave New World”, Edward Chatten, SVP Smart Grid & Strategic Support, Smart Grid Technology Conference, San Jose CA June 2011

Lessons Learned

• Price of failure to adapt very high• Everything changing very quickly• Difficulty of technology integration (including Renewables)• Technology obsolescence is a problem (including Renewables)• Customers very different, with varied expectations• SmartGrid design and function will vary by utility and region• Cost / Benefit ratio should be positive• Siting challenges• Barriers to scale

Source: “A Brave New World”, Edward Chatten, SVP Smart Grid & Strategic Support, Smart Grid Technology Conference, San Jose CA June 2011

CenterPoint Energy, Houston,Texas USA (& 5 other states)

•Renewables Picture:• Currently Coal & Natural Gas• Transmission Constraints• Important wind resources• Good solar resources•Pilot Elements:• Advanced Metering Systems• Intelligent Grid

•Vision: “CNP seeks to enable the Texas electricity market to extract the full functionality of the Smart Grid by supporting individual management of electricity consumption, fostering adoption of market-driven programs and achieving maximum operational readiness and efficiency.”

Source: Robert Frazier, SmartGrid conference, 6/2011 – “SmartGrid Projects – Current Projects to Future Functionality”

Intelligent Grid

Source: Robert Frazier, SmartGrid conference, 6/2011 – “SmartGrid Projects – Current Projects to Future Functionality”

Intelligent Grid - 2

Source: Robert Frazier, SmartGrid conference, 6/2011 – “SmartGrid Projects – Current Projects to Future Functionality”

Managing Outages

Source: Robert Frazier, SmartGrid conference, 6/2011 – “SmartGrid Projects – Current Projects to Future Functionality”

Grid Sensing

Source: Robert Frazier, SmartGrid conference, 6/2011 – “SmartGrid Projects – Current Projects to Future Functionality”

Systems

Source: Robert Frazier, SmartGrid conference, 6/2011 – “SmartGrid Projects – Current Projects to Future Functionality”

Communication

Source: Robert Frazier, SmartGrid conference, 6/2011 – “SmartGrid Projects – Current Projects to Future Functionality”

Friedrichshafen, Germany

• T-Systems:– Provides IT and communication services, dynamic services, energy

services, cloud-based services – largest German telecom company– Energy efforts started with small metering solution for German

market, focus on privacy and security

• Renewables Picture:– Germany well-known for focus on variety of distributed renewable energy

generation– PV, electric cars, wind, solar thermal, biomass all in place

Friedrichshafen Summary

• Cooperative effort• “Laboratory” with focus on

implementation• Smart metering, smart grid, and general

smart technology services• Multi-utility, sub-metering, multiple

standards in smart metering platform• Small smart grid applications

– Demand response, power plant requirements, economics research, market value research

Friedrichshafen Findings• Communication is key with different types of

buildings & users, and generators• Architecture which brings together different

meters is most useful• Transformative technologies and methods• Data privacy and data security critical• Many common solutions would not meet

security requirements of telecom industry• In Germany, change from yearly billing

required• Rapid, complete roll-out most cost effective

Community scale smart grid in Japan

• Grid severely supply limited • Acceleration of Smart Grid adoption

may be good alternative for future• Potential Smart Grid elements:

– Accelerate adoption of technologies and grid

– Smart meter options needed– Mechanism needed for market signals –

price and command signals

Impacts from the Disaster

• After the earthquake and tsunami, surviving fossil fuel power plants not able to handle load left by Fukushima closure– Substation breakers were only tools available to keep grid in balance,

so had system of rolling blackouts

• Current actions:– Recommissioning old plants– Importing gas turbines– Running all at full capacity

Kuzumaki Prefecture

• Local Smart Grid – Kuzumaki– 8,000 people, 50 miles from

coast– Power out for 1 day (connected

to grid)– Started program 10 years ago

• Wind farm• Biogas generator• Biodiesel refinery• PV on school roofs• Elder-care facilities heated by

pellet mill

Source: http://www.industcards.com/biomass-elsewhere.htm

Lessons from Kuzumaki

• Intermittent renewables work in system

• Price and control signals– Wind power at

night increases– Cloud over sun

during day

• Small regions of grid disconnect temporarily and keep operating

Source: http://www.solartoday-digital.org/solartoday/201106/#pg12Source: http://aoatools.aua.gr/pilotec/files/bibliography/RES_japan-2204205825/RES_japan.pdf

Smart Grid Changes

Source: Robert Frazier, SmartGrid conference, San Jose CA, 6/2011 – “SmartGrid Projects – Current Projects to Future Functionality”

References / Resources - 1• SmartGridSherpa.com, a free knowledge base and blog @smartgridsherpa.• the Total Grid Community — an open source community dedicated to

modernizing national power systems and microgrids while driving the development of the Smart Grid. www.TotalGrid.org

• The GridWise Alliance, founded in 2003, has developed into an organization that represents a broad range of the energy supply chain from utilities to large tech companies to academia to venture capitalists to emerging tech companies. www.gridwise.org

• Smart Grid Research Consortium, www.smartgridresearchconsortium.org. Formed at Texas A&M University in 2010 and established as an independent research organization in January, 2011. Membership open to electric cooperatives, municipal and other public utilities interested in independent, objective financial evaluation of smart grid applications

References / Resources - 2• www.globalsmartgridfederation.org The Global Smart Grid

Federation was established in April 2010 to bring together Smart Grid initiatives from around the world.

• The International Smart Grid Action Network (ISGAN) creates a mechanism for multilateral collaboration to advance the development and deployment of smarter electric grids around the world www.cleanergyministerial.org/ISGAN

• www.smartgrid.gov SmartGrid.gov is the gateway to information on federal initiatives that support the development of the technologies, policies and projects transforming the electric power industry.

• www.sgiclearinghouse.org . Smart grid information clearinghouse

Thank you!!

Sandy McCardell – sandym@currentc.com – (505) 795-2702