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Smart Grid In The News

Smart Grid has been making news for quite a few months now.  What is a Smart Grid and why is everyone talking about it?  A few months ago AEG Project Manager Mark Parr delivered a Smart Grid presentation to the AEG Senior Staff and Project Managers.  Please read on..

SMARTGRID, SO WHAT IS ALL THE BUZZ ABOUT? 

Delivered by Mark Parr, Project Manager, Atlantic Engineering Group© 

 

In the political arena, the municipal and electric utility worlds there is much conversation about deploying SmartGrid across America and how it will change how we manage energy use.  The rationale for this lies in the ability of our power generation to keep up with our use.  The electric load is just about maxed out for the United States and other methods of efficiencies and new sources of power generation, storage and delivery must be vigorously pursued.  That single issue is what the buzz is about.  How do we level the Electric Peak loads, condition the grid and deploy new power sources all at the same time?   Making the electric grid smarter is a very good start.   A smart power grid may best be defined as a method that employs fast communications and modern computing to upgrade the current electric power grid so that it might operate more efficiently and reliably and support additional services to consumers.  Those additional services will include the ability of all consumers to receive specific data about their usage and to allow individuals to modify their time of use.  If people know what it costs to run their washer and dryer at 6:00 PM at a high kilowatt cost versus running those appliances at 9:00 PM at a much reduced cost per kilowatt hour they have the power to control their costs.  This should result in a load leveling effect for the power generation and a reduction in energy costs to the home or business owner.

 Atlantic Engineering Group (AEG) is well positioned to provide our clients with best in class design and construction for Smart Grid applications.  So what do you need to know?

 What are some of the characteristics of a Smart Grid

• Allows self-healing from power disturbance events—anything that causes power outages
• Enables active participation by consumers in demand response—people can assist in their own homes and businesses
• Operates resiliently against physical and cyber attack—energy security
• Provides power quality for 21st century needs—conditioning
• Accommodates all generation and storage options—no new restrictions
• Enables new products, services, and markets
• Optimizes assets and operates efficiently

 What is Smart Grid?

• Integrates multiple technologies:
  • AMI (Advanced Metering Infrastructure)
    • Establishes communication with the consumer—via the meter and digital Smart system inside the home or business
    • Provides time stamped system information—to the utility and the consumer
    • ADO (Advanced Distribution Operations)
      • Uses AMI information to collect distribution information
      • Uses AMI information to improve operations
    • ATO (Advanced Transmission Operations)
      • Uses ADO information to improve utility operations and manage transmission congestion and voltage
      • Uses AMI to give consumers access
    • AAM (Advanced Asset Management)
      • Uses AMI, ADO, and ATO information and controls to:

−       Improve utility operating efficiency

−       Improve utility asset utilization

 AMI— what does it look like?

 

 SCADA/EMS/DMS/DAS might be like this.

 

 

   SMART GRID deployed would be similar to this.

 

  So why should we bother—the true benefits of AMI?

• “Self-healing” – The utility use real-time information from embedded sensors and automated controls to anticipate, detect, and respond to system problems.
• Empowers Consumers – A smart grid incorporates consumer equipment and behavior in grid design, operation, and communication. This enables consumers to better control “smart appliances” and “intelligent equipment” in homes and businesses, interconnecting energy management systems in “smart buildings” and enabling consumers to better manage energy use and reduce their energy costs. Advanced communications capabilities equip customers to exploit real-time electricity pricing, incentive-based load reduction signals, or emergency load reduction signals.
• More Reliable– These technologies better identify and respond to manmade or natural disruptions. Real-time information enables grid operators to isolate affected areas and redirect power flows around damaged facilities. Power outages are some of the most costly line items in the power space. 
• Accommodates Generation Options– As smart grids continue to support traditional power loads they also seamlessly interconnect fuel cells, renewables, microturbines, and other distributed generation technologies at local and regional levels. Integration of small-scale, localized, or on-site power generation allows residential, commercial, and industrial customers to self-generate and sell excess power to the grid with minimal technical or regulatory barriers. This also improves reliability and power quality, reduces electricity costs, and offers more customer choice.
• Optimizes Assets– A smart grid can optimize capital assets while minimizing operations and maintenance costs. Optimized power flows reduce waste and maximize use of lowest-cost generation resources. Harmonizing local distribution with interregional energy flows and transmission traffic improves use of existing grid assets and reduces grid congestion and bottlenecks.

 It is going to cost a bundle….Why make the investment?

Because it might cost more not to, because….

• Power interruptions and  disturbances cost the U.S. electricity consumer at least $79 billion per year
• A recent rolling blackout caused an estimated $75 million in losses in Silicon Valley alone.
• When the Chicago Board of Trade lost power for an hour during the summer of 2000, trades worth $20 trillion could not be executed

                              US Department of Energy website

 Legislation does exist

• The Energy Policy Act of 2005 (EPACT 2005) Subtitle E contains three sections (secs. 1251, 1252, and 1254) that add additional “States-must-consider” standards to the  Public Utility Regulatory Policies Act of 1978 (PURPA)
  • (11) NET METERING (see EPACT 2005 Sec. 1251 for details)
  • (12) FUEL SOURCES (see EPACT 2005 Sec. 1251 for details)
  • (13) FOSSIL FUEL GENERATION EFFICIENCY (see EPACT 2005 Sec. 1251 for details) 
  • (14) TIME-BASED METERING AND COMMUNICATIONS (see EPACT 2005 Sec. 1252 for details), and
  • (15) INTERCONNECTION (see EPACT 2005 Sec. 1254 for details)
• The Energy Independence and Security Act of 2007 (EISA 2007) contains two sections (secs. 532 and 1307), that also add additional “States-must-consider” standards to the Public Utility Regulatory Policies Act of 1978 (PURPA).
  • (16) INTEGRATED RESOURCE PLANNING (see EISA 2007 Sec. 532(a) for details)
  • (17) RATE DESIGN MODIFICATIONS TO PROMOTE ENERGY EFFICIENCY INVESTMENTS (see EISA 2007 Sec. 532(a) for details)
  • (16) (sic) CONSIDERATION OF SMART GRID INVESTMENTS (see EISA 2007 Sec. 1307(a) for details), and, 
  • (17) (sic) SMART GRID INFORMATION (see EISA 2007 Sec. 1307(a) for details

 Legislation…..Who is effected?

• SEC. 102(a)
  VOLUME OF TOTAL RETAIL SALES.— This title applies to each utility in any calendar year, and to each proceeding relating to each electric utility in such a year, if the total sales of electric energy by such utility for purposes other than resale exceeded 500 million kilowatt-hours during any calendar year beginning after December 31, 1975, and before the immediately preceding calendar year.
• SEC. 102(b)
  EXCLUSION OF WHOLESALE SALES.—The requirements of this title do not apply to the operations of an electric utility, or to proceedings respecting such operations, to the extent that such operations or proceedings relate to sales of electric energy for purposes of resale.
• SEC. 102(c)
  LIST OF COVERED UTILITIES.—Before the beginning of calendar year, the Secretary shall publish a list identifying each electric utility to which this title applies during such calendar year. Promptly after publication of such list each State regulatory authority shall notify the Secretary of each electric utility on the list for which State regulatory authority has ratemaking authority.” (Source: 16 U.S.C. 2612)

 AMI – So what is it likely to cost?

“Although cost estimates vary, even the most expensive options put grid modernization at about one medium pizza per household per month, spread over 10 to 15 years. If done right, a transformed grid will be less expensive in the long run, while providing benefits that dwarf the costs.”

               US Department of Energy website.

 AMI – What savings are likely to result?

“Grid upgrades will ease congestion and increase capacity, sending 50 to 300 percent more electricity through existing corridors.”

                              US Department of Energy website

 Vision of a Smart Grid

 Where does AEG fit in all of this?  (Probably not with the bits and pieces of the systems described below)

• End Devices (Smart Meters)
  • Siemens, Schlumberger, Itron, Badger, etc…
• End Devices (Smart Controllers)
  • Cooper, Siemens, Schlumberger, etc…
• End Devices (RTU’s)
  • ACS, Honeywell, Landis&Gyr, Siemens, etc…
• Front End Computers (SCADA, EMS, DMS, OMS, MDMS, Simulators, etc…)
• Gateways
• Database
• Software
• Displays
  • (Siemens, OSI, ACS, Comverge, Itron, Honeywell, etc…)

 Designing and Building them (This is what we do better than anyone!)

• Networking
• Backbone
• Outside Plant Engineering
• Construction

 What are the Communication Infrastructure Options?

• Power Line Carrier (PLC)
• Broadband over Power Line (BPL)
• Copper or Optical Fiber
• Wireless
• Internet
• Combination of the above

 Some Current North American Smart Grid Projects[1]

• Network Infrastructure:
  • Overwhelming majority is Wireless/Wireless Mesh/Hybrid
  • BPL/PLC used as only conduit in only 3 systems.  Used as “last mile” solution in 6 more.
  • 3 projects working to phase out “Drive By” wireless.
  • Wi-Fi is used in 2 systems, and one is a hybrid system.
• Fiber Usage:
  • Fiber is used in 3 projects:
    • Clarksville TN (AMR/AMI)
    • Chattanooga TN (AMI/Smart Grid)
    • Tacoma WA (AMR)

Conclusions:

• There is a need for Fiber in Smart Grid initiatives whether paired with wireless or stand alone.
• As systems evolve from AMR to AMI to Smart Grid, the bandwidth required to transmit the data increases dramatically.
• Currently, the overwhelming majority of projects are based on AMI as a foundation for future Smart Grid implementations.
• The strong players will invest in Smart Grid infrastructure.

 Federal Smart Grid Task Force is comprised of… 

• OE:  Office of Electricity Delivery and Energy Reliability
• EERE:  Office of Energy Efficiency and Renewable Energy
• NETL:  National Energy Technologies Laboratory
• FERC:  Federal Energy Regulatory Commission
• NIST:  National Institute of Standards and Technology
• EPA:  Environmental Protection Agency
• DHS:  Department of Homeland Security
• USDA:  Department of Agriculture

 Smart Grid Associations

• NETL
• Gridwise Alliance
• Global Smart Energy
• Smart Grid News
• Peak Load Management Alliance

 

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[1] These numbers change constantly. This is a single snapshot of a specific time.

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