Smart Grid New Industry Challenge. August 7, 2009 Eugene Litvinov Senior Director, ISO New England IEEE Region 1 Meeting, Springfield, MA

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1 Smart Grid New Industry Challenge August 7, 2009 Eugene Litvinov Senior Director, ISO New England IEEE Region 1 Meeting, Springfield, MA 1

2 Smart Grid Defined Smart Grid is the tight combination of different infrastructures: Power System Communications Information Technology implementing a new paradigm of power system design and control 2

3 Smart Grid Objectives For Reliability More capacity from transmission and distribution resources Intelligent devices that automate monitoring and respond to emergency situations Efficient production, movement and consumption of electricity Tools and training to support control room For the Environment Reduction in Greenhouse Gases Greater penetration of renewables, energy storage and demand resources For Consumer Control Transparency into electricity usage and prices Opportunities for consumers to supply energy, capacity and ancillary services 3

4 Smart Grid There are many visions EISA 2007 and DOE Describe several important characteristics FERC Identified 4 key areas and 2 cross cutting areas EPRI Created 23 MB of Use Case Documents Vendors and Industry Analysts too many variations to mention GridWise Describes an abstract interoperability framework Standards Organizations and User Consortia Describe slices from the Smart Grid pie NIST Establishing a Roadmap for standards development 4

5 Some Consistent Messages Support all types of generation Consumer participation Transparency of Cost and Quality of Electricity Competitive Marketplace Self-correcting: Automatic response to disturbances and threatening situations Security (physical and cyber) designed in upfront Observable and Manageable Flexible 5

6 Tight Integration with Other Infrastructures 2008 Electric Power Research Institute ISO New England Inc. Smart Grid Overview 6

7 Legend: Standards based Interoperability Framework Standards are also needed among Controlling Entities Demand Response Energy, Capacity, Ancillary Services Energy Management System CHP GeoThermal Units Solar PHEV Industrial Solar Distributed Generators Energy Management System Solar Home Area Network Residential Commercial Demand Response Energy, Capacity, Ancillary Services Smart Appliances DistCo s System Operators Markets Communications Networks Transmission and Distribution Networks Smart Meters, Intelligent Control and Monitoring Devices DR Aggregators MicroGrids, Energy Storage Systems and Distributed Generation Traditional Generators Solar Farms Wind Farms 7

8 Legislative Barriers ISO New England Inc. Smart Grid Overview 8

9 The lines between Transmission and Distribution are blurring Increasing number of generating resources located on the distribution network (e.g. wind turbines, solar arrays, microgrids, CHP) Demand resources playing larger role in traditional transmission level functions (e.g. energy, reserves and emergency response) Regional Power System Control entities need more granular locational and capacity information for both demand and supply resources located on the distribution network Operable Capacity analysis requires situational awareness of supply resources located within a region, regardless of which network they are connected to 9

10 More Choices and Uncertainty - Less time to react Region wide System Operations and Planning become much more complicated under the Smart Grid Choice between using DR Negawatts, traditional generators, distributed generators, variable renewables, imports, Electric Energy Storage to meet the next Megawatt of Load Load forecasting is further complicated with additional uncertainty (e.g. impact of EV s, impact of consumer level generation capabilities such as solar panels) Automatic sense/respond devices to consider Number, size and location of independently managed Microgrids Other factors: Renewable Portfolio Standards (RPS) Regional Greenhouse Gas Initiatives (RGGI) NIMBY Requires more frequent interaction among system control entities and new optimization approaches 10

11 New Grid Control and Planning Centralized vs. de-centralized Micro-grids vs. large grids Market coordination vs. super-large markets Energy Supply Resources connected anywhere Distributed State Estimation SPS/RAS Frequent data exchange between system control entities Situational awareness Visualization and Decision Support Reliability standards: reliability vs cost-based approach to planning Deterministic vs. Probabilistic approach Transition from Preventive to Corrective system design philosophy 11

12 New Technologies Synchronized Phasor Measurement Units (PMU) Intelligent Electronic Devices (IED) AMI Renewable Resources Storage New regulation devices: flywheels, PHEV, etc. Microgrids and Smart Grid Wide Area Monitoring Systems (WAMS) Wide Area Protection Systems (WAPS) Multi-Agent technology Distributed computer systems 12

13 New Technologies Affecting Control Microgrids Microgrid is a comparatively small network with distributed generation and storage capable of both supplying its own loads and buying electricity from the grid It is an alternative to transmission and requires new approaches in control and market integration Source: 13

14 Smart Home Copyright 2008, Southern California Edison ISO New England Inc. Smart Grid Overview 14

15 Example: Smart Appliances Consumers appliance receives peak price notification from Utility/ISO and displays on their appliance console. Appliance automatically reacts by reducing energy consumption. Price Signal ISO New England Inc. Smart Grid Overview 15

16 Example: PHEV Gas Electric Greenhouse Gas 6.3 tons 1.1 tons emissions Annual Fuel Cost $1,538 $270 Equivalent Cost $ per gallon Present unprecedented challenges to the Distribution System Infrastructure ISO New England Inc. Smart Grid Overview 16

17 Distributed Resources 2009 ISO New England Inc. Smart 2008 ISO Grid New Overview England Inc. 17

18 A Paradigm Shift in Power System Control is REQUIRED for the Smart Grid to succeed Power System Control functions will be significantly impacted by the Smart Grid More granular control of supply and demand is needed Supply Management (wherever it is located) Demand Management Network Management (both transmission and distribution levels) Markets Management wholesale and retail integration Integrated Power System Control across the supply chain will require more frequent interaction among controlling entities Need for coordination among controlling entities under time critical situations will require greater automation between entities Thus far there has been insufficient attention to standards and protocols for Control functions among controlling entities 18

19 EPRI Conceptual Diagram EPRI ISO New England Inc. Smart Grid Overview 19

20 Generation EPRI

21 Customer EPRI

22 Service Provider EPRI

23 High Level Smart Grid Architecture Overview Markets Supply Resources System Control Demand Entities Delivery Network 23

24 Example:NIST I2G Interactions Bid into Capacity Market Bulk Generation Station ISO Direct Generator Control Indirect Generator Control OnSite CoGeneration Station Utility Aggregator ControlCenter2ControlCenter Dynamic Wholesale Pricing Dynamic Retail Pricing Industrial Reliability Notification Distributed Generation Station Industrial Site Industrial Metering Data Energy Management System Current Standards workgroups view control as a single cloud with multiple entities Source: NIST I2G Draft Roadmap V 0.5 dated 4/9/2009 Electrical Metering 24

25 Need for More Granular Control More Supply Resources locating on Distribution Network Pinpoint Locational Control of Demand Response Resources Mobility of PHEV s enable them to shift load and supply around system dynamically PHEV s will receive energy payments for whichever dispatch zone they supply energy within (locational pricing) 25

26 Shift to more granular control is underway in NE 26

27 ISO-NE and FERC SG Policy Alignment FERC Priority Areas ISO-NE Projects Cyber Security Inter-System Communications Wide-area situational awareness Wide Area Monitoring Systems with Phasor Measurement Situational Awareness/Visualization Real Time Stability Analysis and Control X X X X Demand Response Demand Response (DR) Reserves Pilot Demand Response Programs Integration of DR Resources in ISO/RTO Operations for 2010 X X X X X X Electric Storage Alternative Technology Regulation Pilot Advanced Grid Simulator X X Electric Transportation Alternative Technology Regulation Pilot Advanced Grid Simulator X X 27

28 Manage Network 28

29 Wide Area Monitoring Requires sub-second insight by Operators: NASPI Phasor Data Concentrator at ISO-NE More PMU installations Requires more granular spatial data on Supply and Demand This will require more frequent interaction between Controlling Parties than exists today 29

30 Wide Area Monitoring cont Load Concentrations Generation Resources 30

31 Wide Area Monitoring cont 31

32 Inter-Control Area Monitoring 32

33 View Reserves 33

34 When a Resource Moves or Trips Quebec HVDC Tie No Initial Response NB Ties - Limited Response Over 95% Initial Response from/to NY and PJM CT Generator Trips and the ENTIRE Grid Responds! 34

35 Situational Awareness/Visualization Requires enhanced decision support capabilities and timely, accurate insight and advice to operators Intelligent Alarm Processing Employing Complex Event Processing tools Provide System Operator with Visual display of conditions Enhance decision support ability of operators EMS/DSM integration Requires more granular spatial data on Supply and Demand Requires greater interaction between System Control Entities than exists today 35

36 Situational Awareness/Visualization cont New level of on-line situational awareness by incorporating high rate PMU and SCADA data into calculation of stability margin and visualization PMU SCADA State Estimator Sampling rate: per sec 4 10 sec 3 min Physical and Operational Margins (POM) software Outcome: On-line Region Of Stability Existence (ROSE) Operating point trajectory within ROSE 36

37 Situational Awareness/Visualization cont PMU and SCADA data will be used for on-line calculation and visualization of Operating Point proximity to Stability boundary Power flow or Angle Update Stability Boundary with SCADA data rate Update Trajectory of Operating Point with PMU data rate Power flow or Angle 37

38 Situational Awareness cont Visual Samples ISO/RTO Visualization Project

39 New Technology Visualization: ISO New England Inc. Smart Grid Overview 39

40 New Technology Virtual Utilities and Virtual Siemens AG ISO New England Inc. Smart Grid Overview 40

41 RT Stability Analysis and Control Includes transient, voltage and thermal analysis Objective: Make the existing grid infrastructure more efficient Perform dynamic line ratings Operate system closer to real limits; increases overall capacity without any capital investment 41

42 Manage Supply 42

43 Tiverton MicroGrid 160-acre historic town center New Hope Village; Carbon Neutral Community 400 Townhouses 75 Affordable Housing Units 80 single family houses Historic electric trolley service connecting community 12 land based commercial wind turbines will be of the current technology having a rated nameplate capacity between 2.5 & 5 MW Seventy-Eight Thousand (78K) Annual MWh Wind Turbine Energy Generation Twenty-Four Thousand (24K) Annual MWh Solar Energy Generation Community-Wide Geothermal HVAC Support Infrastructure Green Biodiesel Processing Plant will be operated entirely under roof of a 175 X 275 building Will prevent 2,859,795 tons of CO2 from entering the atmosphere over the next 25 Years 43

44 Areas Requiring Immediate Attention Power System Control Among Power System Control entities Network Model Updates Control Coordination (e.g. voltage control coordination) Status and Monitoring (Situational Awareness) Planning Functions/Activities Manage Demand PHEV charging control Dynamic Price Communication Load Forecasting Manage Supply MicroGrid and DER management/monitoring/control Electronic Dispatch Standards Measurement/Verification Standards for DR DR Control standards Supply Forecasting Manage Network EMS/DMS Integration 44

45 Conclusions New Challenges and Technology require new look at the future of System Operations, Planning and Markets Many changes must take place without negative impact to customers and overall grid performance Both Operations and Planning will have to change to accommodate new Grid and Decentralized Control among multiple control entities Interoperability at all levels from regulatory to computer and communication systems is a key to success of new grid Public pressure spawned by the Stimulus package is requiring ISO s to implement what s available now can t wait for standards to emerge 45