smartGrid_BuildingOnTheGrid_4web.pdf

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Smart GridBuilding on The Grid

volume

Security

Renewables

ElectricVeh

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Table o Contents

Smart History o the Electric Grid ......................................................................................2

Instrumentation & InteroperabilityMonitoring Energy Usage ....................................3

The Signifcance o StandardsGuideposts o Smart Grid ............................................. 4

The Government Role in Smart GridDriving the Smart Grid Eort .............................6

Smart MetersThe Consumer Connection to Smart Grid ...............................................9

A Cleaner Brand o EnergyRenewables, Energy Storage, and the Smart Grid ......... 11

Implementing Renewable EnergyTransmission Corridors .......................................... 15

A Win-Win RelationshipHigh Perormance Buildings or a Smarter Grid .................17

MicrogridsAchieving Local Goals ................................................................................. 19

CybersecuritySecuring the Grid ................................................................................... 20

Workorce EducationVids 4 Grids ................................................................................ 22

Looking AheadThe Smart Future is Here .................................................................... 23

Published byNEMA Communications

The National Electrical Manufacturers Association1300 North 17th Street, Suite 1752, Rosslyn, VA 22209703.841.3200 www.nema.org/smartgrid

Copyright 2011 by NEMA, the association of electrical and medical imaging equipment manufacturers All rights reserved including translation into other languages, reserved under the Universal Copyright Convention,the Berne Convention for the Protection of Literary and Artistic Works, and the International and Pan AmericanCopyright Conventions.


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2 Smart GridBuilding on The Grid

Smart History of the Electric GridIn order to see the future, a backward glance is helpful.

Throughout history, a number o distinct events have changed the course o our existence: in1439, Johannes Gutenberg developed the printing press; in 1712, the rst commercially successulsteam engine was introduced; in 1886, Karl Benz patented the gas-powered automobile; and inthe twentieth century, the Internet emerged and orever changed the way we communicate andexchange inormation.

An especially illuminating event occurred in 1879 when Thomas Edison invented what isconsidered to be the precursor o the modern light bulb. Three years later, in 1882, he fippedthe switch on the rst electric grid in lower Manhattan. In less than 100 years, electricity becamewidely available. It is now delivered by means o expansive electrical grids on every continenton Earth, and is integral to the various satellites that orbit her.

In the decades ollowing this tremendous achievement, however, much othe electrical grid has grown old and outdated. Sadly, Edison would

recognize much o todays installations. Too oten, we nd ourselveslooking ahead toward the next technological evolution while ourinrastructure is more than a century old.

NEMA believes we need to address the past as a means omoving orward.

The overtaxed and inecient electrical grid has letthe U.S. susceptible to security threats; inhibitedalternative energy / conservation goals; andcontributed to reliability problems, such aspower quality disturbances and blackouts.

Smart Grid is the solution we desperatelyneed to solve many global energyproblems. Like the printing press,automobile, and light bulb beore it,Smart Grid will change the course ohuman history. It is changing the waywe think about and interact with ourelectrical system.



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Smart GridBuilding on The Grid 3

Instrumentation & InteroperabilityMonitoring Energy UsageWhere is the Check Engine Light for the Grid?

In one sense, you can compare the Smart Grid

to the dashboard in your car.

In the early 1900s, when Henry Ford rststarted to use assembly-line methods to massproduce automobiles, there was very little inthe way o instrumentation. Little by little,as the automobile evolved, ever-increasingamounts o operational inormation weremade available to the driver.

Now, as you sit in the drivers seat, you get up-to-date inormationon a split-second basis

about speed, uel level, coolant temperature,engine eciency, battery charge capacity,and so on. In addition to the inormationthat is displayed ull-time on the dashboard,there are a number o sensors working in thebackground that monitor a variety o criticalunctions and will illuminate an indicator whensomething goes wrong.

Until recently, however, there has been no suchevolution on the electrical grid.

Many eatures o the Smart Grid will providethis kind o monitoring and will report theinormation to both the utility company andthe consumer. The improved communicationeatures will allow you to understandmore about your energy usage so you can,metaphorically speaking, slow down, changegears, strive or better mileage, and save a ewdollars on your electric bill.

Meanwhile, background

monitoring programs canserve as the check enginelight to notiy the utilitycompany i some criticalcomponent begins to ail orrequires maintenance.

Since 2007, when NEMAwas named in the EnergyIndependence and Security

Act(EISA) to work with theNational Institute o Standardsand Technology (NIST) on the interoperabilityramework or Smart Grid, we have been atthe oreront o Smart Grid development. Asstandards are identied, we work to see thatthey are implemented through the regulatoryand legislative processes in order to drivesuccess or the public and our members.

When it comes to empowering the ully-inormed electric utility / electricity consumerpair, NEMAs role is to ensure that the

appropriate standards exist or are developedto support Smart Grid.


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The Signifcance o StandardsGuideposts of Smart Grid

Why do

standards

matter in todays

evolving SmartGrid?

Theinteroperable orsmart electricitygrid consists omany dierentproducts, woven

into a complex system o systems that mustseamlessly provide adequate and cost-eective

electrical energy to power our homes, oces,schools, and businesses.

The scale and complexity o the electricalgrid necessitate that those involved indeveloping and managing it share a commonunderstanding o its operational details. Thiscommon understanding is ensured throughstandardization.

Interoperability is undamental to theperormance o the Smart Grid, whichis managed and coordinated by exoticcommunications and control sotware.Together, these schemes are designed to beintegrated into eective cooperation andtwo-way communication among the manyinterconnected elements o the power grid.Reliable and eective interoperability requiresa oundation o standards.

For example, appliances integrated with smartmeters can tell consumers how much powerthey are using and the cost, thus allowing

them to have more control over energybills. For the utilities, standards are the keyto building, maintaining, and managing allo the pieces o the grid that must unctionin lockstep to ensure a sae, eective, andreliable supply o electrical energy, regardlesso demand.

Integrating renewable power sources withutility scale transmission and distributionsystems is another example where standards

are undamental.

Meter Upgradeability Standard

To support the development and deploymento Smart Grid, many electric utilities aremaking advanced metering inrastructure(AMI) and smart meter investments nowto enable uture Smart Grid, energymanagement, and consumer participationinitiatives.

One o the critical issues acing electric utilitiesand regulators is the need to guarantee thattechnologies or solutions that are selected andinstalled by utility companies today will beinteroperable and in compliance with uturenational standards. In order to preserve theirinvestments, utilities want to ascertain that thesystems they select will allow or evolution andgrowth as Smart Grid standards evolve.


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To manage change in a dynamically growingSmart Grid, it is essential to be able to upgradermware, such as meters, in the eld without

replacing the equipment or rolling a truck tomanually perorm the upgrade.

Remote image download capability, a commonpractice today in many embedded computingdevices, permits certain characteristics o themeter to be substantially altered on an as-needed basis. This is much like an iPod. Aterchanging a playlist or purchasing a new song,the device automatically synchronizes andupdates itsel to include the new song. AMI

incorporates this technology.

For investment in and deployment o smartmetering to continue at an aggressive pace,the electroindustry has required standards toaccommodate upgradeability requirements.These standards are needed to allow utilities tomitigate risks associated with predicting theuture and to install systems that are fexibleand upgradeable to comply with emergingrequirements or the Smart Grid.

NIST identied the need or a meterupgradeability standard as a highpriority requiring immediateattention. The objective was to denerequirements or smart meter rmwareupgradeability in the context o an AMIsystem or industry stakeholders, suchas regulators, utilities, and vendors.

SG-AMI 1-2009 Requirements orSmart Meter Upgradeabilityisavailable for download at no chargefrom NEMAs websitewww.nema.org/stds/sg-ami1.cfm.

NEMA accepted the challenge to lead theeort to develop such a standard on anexceptionally rapid schedule. In just under

90 days, with the help o a team o metermanuacturers and electric utilities, NEMApublished the rst standard written rom theground up or Smart Grid, SG-AMI 1-2009Requirements or Smart Meter Upgradeability.

This standard is used by smart meter suppliers,utility customers, and key constituents, suchas regulators, to guide both development anddecision making as related to smart meterupgradeability. It is available or download at

no charge rom NEMAs website (www.nema.org/stds/sg-ami1.cm).

NEMA has been in the standards businessor more than 80 years. Accredited by theAmerican National Standards Institute (ANSI)as a standards developing organization, NEMAmaintains hundreds o standards on everythingrom the smallest connector in the commonwall outlet to massive generators, and worksto best position those standards on behal o

its members.


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The Government Role in Smart GridDriving the Smart Grid Effort

Where do

we begin to

coordinate all of

stakeholders ofthe Smart Grid?

The concepto a smart orintelligentgrid has beenaround or manyyears. Many

organizations, including the Electric PowerResearch Institute, Gridwise Architecture

Council, and others have been promoting theconcept prior to the twenty-rst century.

The big push or using the term Smart Grid,however, and or providing a cohesive U.S.direction, resulted rom the enactment o theEnergy Independence and Security Act o 2007(PL 110-140, more commonly known as EISA).

With the breadth o energy, security, andcommunications policy involved in theimplementation o the Smart Grid, a numbero cabinet-level U.S. government agenciesare involved in the eort. They include theDepartments o Energy (DOE), Commerce(DOC), and Homeland Security (DHS); theFederal Energy Regulatory Commission (FERC)and Federal Communications Commission; theNational Institute o Standards and Technology(NIST); and others.

With responsibilities rmly encoded in publiclaw, and having each o the 50 states asstakeholders in the outcome, propagating the

Smart Grid concept is truly an onerous task.

However, it is the Assistant Secretary o theOce o Electricity Delivery and EnergyReliability (OEDER) in DOE who is requiredto report to Congress concerning the statuso smart grid deployments nationwide andany regulatory or government barriers tocontinued deployment. The law goes on tostate that:

The report shall provide the current statusand prospects o smart grid development,

including inormation on technology

penetration, communications network

capabilities, costs, and obstacles. It may

include recommendations or State and

Federal policies or actions helpul to

acilitate the transition to a smart grid.

To the extent appropriate, it should take

a regional perspective. In preparing this

report, the Secretary shall solicit advice and

contributions rom the Smart Grid AdvisoryCommittee created in section 1303; rom

other involved Federal agencies including

but not limited to the Federal Energy

Regulatory Commission (Commission),

the National Institute o Standards

and Technology (Institute), and the

Department o Homeland Security; and

rom other stakeholder groups not already

represented on the Smart Grid Advisory

Committee.1

1 PL 110-140 The Energy Independence and Security Act o 2007, 1302


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With respect to the Smart Grid standards, section 1305 o EISA species:

In weighing its responsibilities under EISA, DOE

convened an industry panel to comment on itsresponsibilities. As a result, DOE in June 2008published its Metrics or Measuring ProgressToward the Implementation o the Smart

Grid, which states that standards or the smartelectrical grid must incorporate seven majorcharacteristics:

enable active participation byconsumers

accommodate all generation and

storage options

enable new products, services, andmarkets

provide power quality or the range oneeds in a digital economy

optimize asset utilization and operatingeciency

anticipate and respond to systemdisturbances in a sel-healing manner

operate resiliently against physical andcyber attack and natural disasters

The Director o the National Institute

o Standards and Technology shall haveprimary responsibility to coordinate

the development o a ramework that

includes protocols and model standards

or inormation management to achieve

interoperability o smart grid devices and

systems. Such protocols and standards

shall urther align policy, business, and

technology approaches in a manner

that would enable all electric resources,

including demand-side resources, to

contribute to an efcient, reliableelectricity network. In developing such

protocols and standards

(1) the Director shall seek input and

cooperation rom the Commission, OEDER

and its Smart Grid Task Force, the Smart

Grid Advisory Committee, other relevant

Federal and State agencies; and

(2) the Director shall also solicit input and

cooperation rom private entities interested

in such protocols and standards, including

but not limited to the Gridwise Architecture

Council, the International Electrical and

Electronics Engineers, the National Electric

Reliability Organization recognized by the

Federal Energy Regulatory Commission,

and National Electrical Manuacturers

Association.2

2 IEEE is the Institute o Electrical and Electronics EngineersNERC is the North American Electric Reliability Corporation


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In a similar show o public-private partnership,and ater spending time evaluating the SmartGrid environment and inventorying available

Smart Gridrelated standards, NIST establishedthe Smart Grid Interoperability Panel (SGIP) inNovember 2009. According to its charter, themission o the SGIP is to provide coordinationo all stakeholders o the Smart Grid toaccelerate standards harmonization anddevelopment.

To support this mission, SGIP includes:

22 stakeholder categories representingthe breadth o the electrical industry

600+ member companies

1,800+ individual participants

a governing board structure electedrom the stakeholders plus three at-large members

a charter and bylaws to cover operatingpolicy

membership opportunities or domestic

and international interests

Because o its responsibilities to work withNIST on the interoperability ramework ascited in Section 1305 o EISA, NEMA is a

undamental supporter o the SGIP and is veryactively involved in its operation. Five membercompany representatives and one sta personwere elected as members o the inaugural SGIPgoverning board.

NEMA has also been represented in both thechair and vice chair o the governing board,as well as plenary secretary. The associationsobjective or the uture o Smart Grid is tocontinue to provide quality leadership and

make sure that the human capital required torun the SGIP is well supported by both NEMAsta and member companies.


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Smart MetersThe Consumer Connection to Smart Grid

As we enteredthe twenty-rst century,

a number oelectric utilitieswent througha deregulationprocesswith theirstate utilitycommissions

that included the introduction o new billingstructures, such as market-driven pricing. Ina market-driven scenario, instead o having

a fat-rate pricing scheme or electricity 24hours a day, 7 days a week, variable pricingmechanisms can exist where the cost perkilowatt-hour may change based on the day,time o day, or may be even more dynamicbased on weather conditions and expectedload requirements.

Because the grid must remain in balanceat all times, this movement toward morefexible pricing schemes let utility companies

and government regulators with a challengeto nd a means to more accurately measureelectricity consumption so that it could beproperly matched with generation capacity.

The technology in traditional electricalmeters (known as electro-mechanicalmeters) can only measure total electricityconsumption and as such, provides noinormation or when the energy wasconsumed. This gap has eventually been

lled through the advent o the new smartelectrical meters.

Smart meters provide an economical way oaccurately measuring when energy was used,allowing price-setting agencies to introduce

dierent prices or consumption based ontime o day and season. Concurrently, smartmeters can be used to provide consumer accessto any available energy usage data, as wellas measure the output o alternative energymeans, like wind turbines or solar energypanels. In some states, this allows consumers tosell excess energy that they generate back tothe utility.

Combining this orm o consumer

empowerment with the ability to curb usageexpense (based on knowledge o demandpricing and load conditions) is a majormotivation or replacing the installed base otraditional meters with the new smart meters.

The result is that the key consumer connectionto the Smart Grid is the smart meter.

Standards development eorts are thecornerstone to transitioning to smart metertechnology and ensuring interoperabilityacross product and communications lines.What you really need to know about smartmeter standards, such as the ANSI C12 seriesdeveloped and administered by NEMA, isthat they orm the language the meter usesto provide two-way communication with theutility company.


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In the Smart Grid environment, 100 percento the energy use charges that appear on anelectric bill will be tracked and communicated

through the use o smart meter standards.This is the basis o advanced meteringinrastructure (AMI).

As a collaborative suite o standards, ANSI C12aims to:

provide the basic perormance criteriaor electric meters (ANSI C12.1)

dene the physical aspects ormaintaining the saety o electric

meters (ANSI C12.10)

create a specication or the ports andconnectors on the meter (ANSI C12.18)

dene the data tables that will hold theusage inormation (ANSI C12.19)

create a standard or the accuracy othe measurements (ANSI C12.20)

speciy a way to connect to the metervia telephone modem (ANSI C12.21)

speciy a way to connect to the meterusing a data network (ANSI C12.22)

NEMA and the ANSI C12 committee are alsoworking on ways to dene testing criteriaor electric meters, the results o which

could become the ANSI C12.23 standard, andare nding a way to incorporate SG-AMI 1Requirements or Smart Meter Upgradeability.

With so much critical customer usage andpower quality data depending on the accuratemeasurements made by the smart meter, itbecomes absolutely imperative that standardssuch as ANSI C12 are continually reviewed andrigorously maintained.

The key consumer connectionto the Smart Grid is the smartmeter.


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A Cleaner Brand o EnergyRenewables, Energy Storage, and the Smart GridAn enervore is an energy eater, as dened byNEMA member Lawrence E. Jones. Under thisdenition, every organism on our planet can

be considered an enervore, yet our speciessits alone at the top o the ood chain. Ourever-growing population is experiencingdiminishing resources and signicant climatechanges demanding new ecient ways tosatisy our energy appetites.

Renewable energy, once consideredimpractical because o inconsistent sources andgeographical limitations, is being transormedinto a viable solution, thanks to Smart Grid

and the NEMA companies working to integraterenewable technology. Its use can reduce ourdependence on non-renewable ossil uels, ourproduction o atmospheric carbon dioxide, andour need to import energy sources.

Policy incentives and technology developmentsinfuence the unctions o generation andtransmission. On the policy ront, government

incentives encourage low-carbon generation.But renewable sources that create electricitywithout CO

2emissions have limited useulness

or load balancing. On the technology ront,a variety o energy storage technologies havebeen demonstrated to be practical. Energystorage devices adeptly balance load andgeneration, but do not produce energy ontheir own.

While sources o renewable energy are diverse

(e.g., biomass, geothermal, hydro, trashcombustion), solar, wind, and marine areprominent on the Smart Grid horizon.

Solar

Every day, a clean and abundant power source rises in the eastern sky.

This renewable power, by denition, is the conversion o solar energyinto electrical energy. The two primary methods are photovoltaic cells,where solar power is directly converted to electricity, or concentrated solarpower, where the suns energy is ocused to boil water, which indirectlyprovides power.

Solar power represents the most versatile orm o renewable energy.It powers homes and actories, energizes transportation and roadwaymessaging, and even provides electricity and hot water to soldiers in theeld.

Until recently, the need or improved electrical grid technology and expansion prevented the

widespread application o solar energy. NEMA and its member companies, however, are at theoreront o emerging renewable technology by successully marrying the suns power to theSmart Grid, making the production and transmission o solar energy ar more ecient.

Within a Smart Grid system, solar power could be generated in the Southwestern U.S, wheresunshine is consistent, and distributed throughout the Northeast, where the energy is sorelyneeded. Individual consumers could even install personal solar panels and sell any excesselectricity back to their local utility company. The resultdramatically reduced energy use.


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Wind

I solutions have been blowing in the wind or millennia, why

cant we get that power into our homes?

While windmills were rst developed to automate grain-grindingand water-pumping, todays sleek turbines represent one o themost widely utilized sources o renewable energy.

Until somewhat recently, the production capacity o windturbines was limited by their overwhelming size and weight,primarily because o copper wiring used in construction.Advances in wiring technologies now allow the construction osmaller wind turbines capable o producing more energy at adramatically reduced initial cost. This translates into nancial and environmental savings.

Generally speaking, an acre o trees will eat about our tons o carbon per year. For the mostrecent data through the end o 2008, 125 million residential customers in the U.S. use an averageo 920 kilowatt-hours (kWh) per household. Across all carbon generating entities, the average CO

2

generated per kWh in the U.S. is 1.35 pounds.

Based on estimates by the U.S. Energy Inormation Administration, the statistical and analyticalagency within the U.S. Department o Energy, as well as the Environmental Protection Agencyand Upson EMC, or every 10,000 homes powered by wind energy per year, 6,210 tons o CO

2and

920 kWh are saved.3 This is the equivalent o removing 776 SUVs rom the road4 or planting 1,692acres o trees.5

Throughout the world, countries are taking aggressive steps to ensure this orm o energyproduction becomes an integral part o the Smart Grid.

Marine

Some say the wave o the uture is marine energy.

Although marine energy has not received the same level o attention as solar or wind, it isgrowing as a viable source o clean, renewable energy. Also reerred to as ocean energy or oceanpower, marine energy reers to the energy carried by ocean waves, tides, salinity, and oceantemperature dierences.

Marine currents are more predictable than wind and solar power, and oceans are close to many,i not most, densely populated areas. And while marine energy is only available along coastlinesand large bodies o water, it represents one o the most consistent orms o renewable power.

3www.eia.gov/cnea/electricity/esr/table5.html4www.epa.gov/oms/consumer/00013.htm 5www.upsonemc-carbonoset.com/C02treestore.aspx


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Marine energy is categorized as:

current powerocean currents

osmotic powersalinity gradients

ocean thermal energytemperature dierences at varying depths

tidal powermoving masses o water

wave powersurace waves

The introduction o Smart Grid has spurred the growth o marinetechnologies as increases in eciency and improved methods otransmission are developed.

Nuclear Energy

Nuclear energy is a component o the bulk generation domain in the Smart Grid. Withmounting concerns regarding dependence on oreign oil and ossil uels, the subjecto nuclear energy is receiving renewed and well-deserved attention. According tocarbonund.org, on average, electricity generation produces 1 pounds o carbon-basedwaste or every kilowatt hour. However, in Vermont, where much o the electricity comesrom nuclear power, its closer to hal an ounce.

Unlike some other energy alternatives to ossil uels, nuclear energy does not experience

periods o unavailability, nor does it require a related energy storage capability. Moderndevelopments in smaller, more easily established micro- and ull-scale nuclear plants makethis energy source more easible and achievable. Considering the steadily increasing percapita usage o electricity, nuclear energy is an important component to ensure adequatepower availability.

Nuclear energy can also react more rapidly than other ossil uel alternatives in terms odemand response, and the strong security and protection associated with nuclear powerplants dovetails with inrastructure security concerns. Likewise, the high levels o plantsophistication and controls lend nuclear power to coupling with Smart Grid systems.Micro-plants could also be leveraged to establish a distributed grid system, whereby power

is generated closer to the end user, reducing power losses rom long line transmission andreducing the eects o natural disasters on power availability. NEMA has researched andcontinues to monitor developments and opportunities in the eld o nuclear power to seewhere our strong expertise can be best brought to bear.


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Energy Storage

Energy storage (ES), quite simply, is the ability o a substance to

accumulate energy and store it or use at a later time.

ES devices adeptly balance load and generation, but do notproduce energy on their own.

The most basic application o an ES system is to accumulateelectrical energy rom a source on or o the grid and storethat energy or delivery, when requested, to a load. O-gridresources in isolated areas, like solar and wind arms, needto store energy when the sun is shining and the winds areblowing.

With advances in electrical energy storage, it is now possible to do just that.

Consider the plug-in hybrid electric vehicle (PHEV). Not only can it reduce air pollution anddependence on oreign oil, it is also a viable solution or increasing the reliability and eciencyo the national electric grid.

PHEVs can only ully recharge through a physical connection to the grid. Bidirectionaltransmission, or V2G (vehicle to grid), allows a win-win situation.

For example, a utility may determine that demand is peaking on a particularly hot day. The utilitywould be able to locate and compensate participating PHEVs that are ully charged and do notneed that stored energy at the time, and they could upload power to the grid. Alternatively,when the PHEV is energy-depleted, the owner pays to draw energy and charge its battery romthe grid.

PHEVs and other energy storage (ES) technologies are vital to Smart Grid. Just as a wind-up clockstores potential energy, ES amasses its power and promises a dynamic wakeup call. Simply put,without ES technologies, there can be no Smart Grid.

ES technologies can:

balance the grids load with generated power

achieve a more reliable power supply or end-use customers

stabilize intermittent sources o renewable energy

electriy transportation (cars, trains, trac signals, etc.)

provide uninterruptible power supplies or data centers and national deense

The national eort to develop a modern, smart electrical grid will require storage devices tosupply customers with energy when the need is greatest.


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Implementing Renewable EnergyTransmission CorridorsEveryone wants to harness the energy romwind, sun, earth, and tides, but moving it canbe tricky. Renewable sources are typically not

proximate to energy-consuming sites; they arealso intermittent and lack fexibility.

Connecting energy generation to whereenergy is neededby homes, schools,businesses, actories, military installationsisthe critical role that transmission lines play indeployment o the Smart Grid.

Transmission lines move electricity romgenerating sources to end users. Transmission

corridors, the tracts o land over which wiresand other connections traverse, quite simplyare the lieblood o the electrical grid.

As a result, transmission planning and sitingis paramount to successul implementationo renewable energy technologies. Obtaininga permit to construct a transmission corridor,however, is an arduous, multi-year processinvolving state and ederal authorities.

A proposed corridor must consider saety;

environmental impact; scenic and historicsights; existing land use; soil, plant, andwildlie habitats; and landscape.

According to the FederalEnergy RegulatoryCommission (FERC) website,6

the ollowing guidelinesmust be determined and anenvironmental impact studymust be conducted or eachapplication:

Is the projecteligible or anelectric transmissionconstruction permit?

Is the project in the

public interest?

Will the projectreduce transmission congestion andprotect and benet consumers?

Is the project consistent with soundnational energy policy and will itenhance energy independence?

Will the project maximize the use oexisting acilities?

And FERC is just one ederal agency withjurisdiction over transmission corridors.

To illustrate the challenges and opportunitieso transmission siting, NEMA created SitingTransmission Corridors, a transmission roadmapbased on the game Chutes and Ladders7(www.nema.org/transmissioncorridorsgameboard).

6 FERC, Transmission Line Siting, www.erc.gov/industries/electric/indus-act/siting.asp 7Chutes and Ladders is a trademark o Hasbro, Inc. or its board game


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NEMA supports a clear national policy thatprovides ederal authority over transmissionplanning, siting, and cost allocation. Without

a streamlined, advanced transmission systemthat moves renewable energies rom sourceto end use, the U.S. will ace diculty inharnessing the promise o renewable energyand in meeting energy independence goals.

NEMA and its member companies are inthe energy solutions businessthat is whywe have taken on the challenge to addressthe laborious manner that is used to sitetransmission lines.

While renewable sources, like wind and solar,are popular concepts, they are typically locatedar rom where energy is needed. We needan ecient process to deliver that energy.The current system o transmission planning,cost allocation, and siting can take rom 7 to14 years. Government approvals (red tape)take up to three years while green tape, thetactics used by environmental activists, alsoprolongs and prevents new corridors.

It is expected that $100 billion will be spentimplementing Smart Grid worldwide. Butwithout new transmission lines, which areintegral to the creation o a sustainableenergy portolio, job growth, and economicopportunity, we cannot accelerate the use orenewable energy generation.


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A Win-Win RelationshipHigh Performance Buildings for a Smarter Grid

When is a

building not

just a building?

When its highperforming.

And smart.

New constructionand retrotprojects aectvirtually

every product in the electroindustry. Highperormance buildings (HPBs) are integral tothe widespread implementation o Smart Grid.

One example o NEMAs work in highperormance buildings that directly impactsSmart Grid is the development o aninteroperability standard or communicationbetween the HPB and the grid. SPC-201PFacility Smart Grid Inormation Model

(Proposed) is being developed under theleadership o the National Institute oStandards and Technology (NIST). NEMAand ASHRAE (American Society o Heating,

Rerigerating and Air-Conditioning Engineers)are co-sponsoring it.

Working in cooperation with approximately60 major stakeholders, ranging rom majorcompanies to industry associations, SPC-201P will dene an abstract, object-orientedinormation model to enable appliancesand control systems in homes, commercialbuildings, and industrial acilities to manageelectrical loads and generation sources inresponse to communication with a smartelectrical grid and to communicate inormationabout those electrical loads to a utilityprovider.

This model provides the basis or commoninormation exchange between controlsystems and end-use devices ound in single-

and multi-amily homes, commercial andinstitutional buildings, and industrial acilitiesthat is independent o the communicationprotocol in use. It provides a common basisor electrical energy consumers to describe,manage, and communicate about electricalenergy consumption and orecasts.

SPC-201P denes a comprehensive set odata objects and actions that support a widerange o energy management applications

and electrical service provider interactionsincluding, but not limited to, on-sitegeneration, demand response, electricalstorage, peak demand management, orwardpower usage estimation, load-sheddingcapability estimation, end load monitoring(sub metering), power quality o servicemonitoring, utilization o historical energyconsumption data, and direct load control.

Modeling the energy characteristics o

equipment and systems that consume,produce, and store energy ound in residential,commercial, and industrial acilities provides agreat tool or the acility owner. By modelingthe energy characteristics o this equipment,the characteristics o a acilitys energy needscan be determined.

Object-oriented inormation enablesappliances and control systems in homes,buildings, and industrial acilities to manageelectrical loads and generation sources inresponse to communication with a smartelectrical grid and communicates inormationabout those electrical loads to utilities andother electrical service providers.


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Win-Win Protocol

When this inormation is included in

equipment and communicated with a protocol,everyone wins:

a acility owner can understand whatactors infuence the acilitys energyconsumption

energy consultants can determine howto eectively reduce the energy proleo a acility

architects and engineers can designacilities with optimum energy proles

controls manuacturers can createproducts that monitor and manage theacility energy prole

energy providers can more accuratelyorecast energy demand as well as thereactions to energy supply constraints

SPC-201P will pave the way or urtherdevelopments in the collaborationbetween HPBs and the Smart Grid.

In response to government and industrytrends toward energy eciency,increased occupant productivity,saety, and cost-eectiveness, NEMAestablished a High PerormanceBuildings Council (HPBC). The councilsocus is to expand the market orexisting electroindustry technologies inthe built environment or approximately450 NEMA member companies.

The member companies involved withHPBC represent a cross section oproduct groups. The council is the oneplace in the electroindustry that bringstogether a program in governmentrelations, codes and standards, andindustrymarketingspecicallyocused onHPBs.

High

Perormance

Buildings

booklet

Available at www.nema.org/HPBbooklet


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MicrogridsAchieving Local Goals

A big area inelectric gridarchitectures

soundsundersizedthemicrogrid.

Microgrids arepockets whereelectrical loadsand sources

are interconnected and managed on a localbasis. A microgrid can be smallas in a net-zero building, a data center, a collection o

buildings in an oce park, even a collegecampus.

On the other hand, a microgrid can behugeas in an entire military base. A orwardoperating base or a military eld hospital areexcellent examples o microgrids. In the tacticalenvironment, they use generators and solarpower together to power the acility.

Microgrids represent a unique rontier interms o electric grid development: anyonecan set one up. They are operated by non-regulated entities (although a utility companycould establish a microgrid service area), andgenerally exist or the purpose o supporting aservice that the utility company doesnt oer.

The integration o a distributed generationsource could be a set o rootop solar panels,better power quality in remote area, or as ahedge against the possibility o utility companyoutage. Considering the data center and eld

hospital examples above, microgrid quality andstability take on increased magnitude.

A concept that is somewhat related tomicrogrids is islanding. It represents atechnique that has been in use by grid andcommercial building operators or decadeswhen there is an unplanned grid outage.

An island must have the ability to operate inan isolated mode, that is, to operate in anautonomous way, similar to the power systems

o physical islands.

Since islanded microgrids are isolated romany power grids, the decrease in generationor load-shedding can be used to maintain therequency when a power imbalance betweensupply and demand occurs.

Enabling Smart Grid Functionality

NEMA is an enthusiastic supporter omicrogrids as an enabler or Smart Gridunctionality. As more variability is introducedat the consumer level with the introductiono residential wind and solar power, electricvehicles, and the growing interest in highperormance commercial buildings, thebalancing areas or electricity services willcontinue to get smaller. Microgrids alsorepresent the ultimate in consumer control asthey can optimize their electricity sources onan individual basis.

While much o the uture o microgrids hasyet to be written, the one thing that is certainis the ever-changing nature o electricitydemand. It is moving the industry toward amodel that requires much more local controlwhich is a core characteristic o a microgrid.

There are many benets o smart microgrids:8

accelerate improvement

increase reliability

help consumers save money

generate revenue

encourage economic growth

make the grid utureproo

reduce carbon ootprint

8GalvinPower.org


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CybersecuritySecuring the Grid

Cybersecurityis an area ogrowing concern

in the SmartGrid. A breach inthe grid wouldhave a coupleo immediateeects: rst,utility serviceinterruptions

(including their potential disruptions tobusiness, commerce, and other activities); andsecond, the unavoidable scramble between

utility companies and manuacturers to patchthe breach.

This could involve countless hours o researchand development sta time, contractors,and consultants, etc., which would be aconsiderable nancial burden on the utilitiesand manuacturers alike. The implementationo those patches would involve potentialchanges to the manuacturing process,deployment o the patches to the installed

base, product recalls, rebates, and manyother expensive options, not to mention thepotential or lawsuits, both valid and rivolous,based on the outages caused by the breach.

For this reason, NEMA members are interestedin standardizing common approaches tocybersecurity across utility areas o control as

well as state boundaries. It is critical to investthe time and resources upront to select theoptimal architecture, minimize risks, andattain a reasonable balance between costs andsecurity.

Additionally, states must work togetherto provide utilities with a uniorm securityimplementation approach. I public utilitycommissions do not lead with a commonapproach, then it will be very dicult or

utility companies, manuacturers, the NationalInstitute o Standards and Technology (NIST),and standards development organizations(SDOs) to coordinate their security standardsdevelopment eorts. A disjointed approach tosecurity will only increase the level o dicultyor manuacturers to provide interoperablesolutions.

In supporting the NEMA mission as it relatesto cybersecurity, our objective is to promote

the competitiveness o the U.S. electricalproduct industry through the development ostandards and advocacy o policy in ederaland state legislatures, as well as in executiveand regulatory agencies.


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NEMA eorts in cybersecurity ocus on three areas:

Technical Standards . Whether in

hardware/devices or sotware systems,the standards supporting cybersecurityneed to be compatible with existing,widely-accepted grid managementsystems and practices. Identiyingthese standards early in the Smart Gridliecycle permits manuacturers to buildcybersecurity into their product lines.

Legislative Support. The ast path towidespread adoption o cybersecuritymeasures will naturally includeincentives. Any legislation dealing withSmart Grid, cybersecurity, and energypolicy needs to include incentives orutilities and manuacturers in suchareas as adoption o best practices andimplementation o security measures.Given its importance to the process,research and development shouldbe specically targeted or incentiveprograms.

Regulatory Governance. Regulators

need to consider concepts like layeringand segmentation when applyingstandards or cybersecurity, and mustcareully weigh issues associatedwith voluntary versus mandatoryimplementation o a security measure.Rulemaking should be geared to helputilities move aster to replace legacysystems that do not meet emergingSmart Grid standards.

For the application o any standard inthe cybersecurity arena, the concept ohow that standard will be supported aterdeployment needs to be considered. It mustbe operationally sustainable. In a distributedoperating environment with literally millionso nodes (i.e., the grid), manual maintenance isnot a viable option.

The application o a security standard asa component o a larger grid architectureneeds to permit remote administration andmaintenance. I a truck has to roll every timea breach occurs and personnel must manuallyre-key a security solution, security remainsexposed.

An aordable Smart Grid requires advanceplanning and remote maintenance.


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Workorce EducationVids 4 Grids

When PresidentObamaadvocated the

advancement othe century-oldelectrical gridwith $11 billionin nancialsupport orvarious initiativesin theAmerican

Recovery and Reinvestment Act o 2009 (theStimulus Bill), the industry knew Smart Gridwas coming and ast.

But with an aging workorce that has createda brain drain in the power systems engineeringeld, the question is not whether we need aSmart Grid, but whether our human capitalwill be able to support it.

Over the next 20 years, the Smart Gridshould be a prime creator o jobs in theelectrical industry, but what exactly does thatmean? A major implication is that i higher

education does not teach its students aboutthis development, our ability to implement,support, and advance Smart Grid technologiesacross the electrical grid will come to agrinding halt.

To address the dire need or workorcetraining in the electric power sector, theelectrical industry and education sector needto work closely to ensure that tomorrowsworkers obtain crucial education on todaysSmart Grid technologies.

NEMA has taken signicant steps to educatethe emerging workorce with a grant romthe Department o Energy (DOE). NEMAs

Vids or Grids: New Media or the NewEnergy Workorce (V4G) is one o 54 SmartGrid workorce training programs unded bythe Stimulus through DOE and the only oneawarded to a non-prot association.

In collaboration with George Mason University,Northern Virginia Community College, andmember manuacturers, V4G introduces SmartGrid concepts to tomorrows engineers byintegrating new media into engineering core

curricula.

The 10-minute videos are available onNEMAs Vids4Gridss YouTube Channel(www.

youtube.com/vids4grids). Each is shot onsiteat a member acility to show how Smart Gridequipment is manuactured, explain electricalengineering concepts, and portray careers inelectrical manuacturing. They educate highschool seniors and college reshmen aboutcapacitors, conductors, connectors, dynamic

line ratings, energy storage, fywheels,industrial automation, lighting managementsystems, meters, surge arresters, andswitchgear.

To learn more about Smart Grid technology,visit www.youtube.com/vids4grids .


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Looking AheadThe Smart Future is HereSmart Grid seems to promise a lot:

greater control o the grid by utilities

cost-saving options or consumers

ewer outages

sel healing capabilities

across-the-board operationaleciencies

access to renewable energy sources

enhanced security and reliability

With these ideals in mind, its only natural toask, When will we see these changes?

Some are already here.

With millions o smart meters alreadyinstalled, the seeds or the Smart Grid havealready been sown. The next step is to use thecommunications capabilities that the metercan provide to drive the applications that willchange the way we interact with our electricityproviders and our energy usage.

The rst step in this process is education.In a 2010 EcoAlign survey,9 70 percent othe respondents were not amiliar with thephrase Smart Grid. It is one thing to tell theconsumer about the eatures and unctionso Smart Grid, which are largely based ontechnical changes to the inrastructure, butcommunicating the value those changes willbring is a completely dierent issue.

Some people are simply looking or anopportunity to save money on their electricbill, while others see the ultimate goal interms o the environmental benetsassociated with the reduction o coal-redpower and the widespread integration orenewables. Smart Grid enables both othese opportunities.

NEMAs role in this uture has several elements.In short, we seek to:

develop standards that advance the

growth and commercialization o SmartGrid technologies and systems

promote education on the advantageso Smart Grid technologies or U.S.and state government legislators andregulators, and consumers

encourage private and public sectorsupport or Smart Grid demonstrationprojects

perorm public advocacy on issuesrelating to the development andadoption o Smart Grid technologiesand standards

As the principal guiding document or the U.S.Smart Grid eort, the Energy Independenceand Security Act o 2007states, It is thepolicy o the United States to support themodernization o the Nations electricitytransmission and distribution system to

maintain a reliable and secure electricityinrastructure that can meet uture demandgrowth.

It is with these goals in mind that NEMAcommits itsel to the vision o a Smart Grid.

9www.ecoalign.com/node/362, May 25, 2010



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National Electrical Manufacturers Association1300 North 17th Street, Suite 1752, Rosslyn, VA 22209

703.841.3200www.nema.org/smartgrid

NEMA is leading the way in Smart Gridtechnologies by encouraging investment inthe national electricity grid and developing

new product standards. NEMA was named inthe Energy Independence and Security Act o2007 as a participant in eorts to enhance theproductivity, eciency, and sustainability othe electricity grid. The basic concept o SmartGrid is to add monitoring, analysis, control,and communication capabilities to the nationalelectricity delivery system in order to maximizethroughput o the system while reducingenergy consumption. Smart Grid will alsoallow homeowners and businesses to utilize

electricity as eciently and economically aspossible.

Smart Grid technologies rom NEMA memberscan improve the reliability, security, andeciency o the electrical grid. Intelligent

devices can automatically adjust to changingconditions to prevent blackouts and increasecapacity. The next steps in the evolution oSmart Grid are to develop standards andprovide necessary unding. Uniorm standardswill simpliy new equipment selection andinstallation. Several nancial mechanismsunder consideration, such as Departmento Energy matching unds, rate recoveryincentives, and accelerated depreciation, willhelp manuacturers and utilities nance new

investments.


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The Association of Electrical and Medical Imaging Equipment Manufacturers

1300 North 17th Street, Suite 1752, Rosslyn, VA 22209

HighPerfor

ma

Buildings

Meters

Consumers

Transmission

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