WADE Thai Smart Grid Launching Seminar Bangkok, Thailand March 1, 2011

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1 WADE Thai Smart Grid Launching Seminar Bangkok, Thailand March 1, 2011 David Sweet Executive Director World Alliance for Decentralized Energy (WADE) 1

2 An Example of a Very Smart Grid 2

3 An Example of a Not Very Smart Grid 3

4 What is a Smart Grid? A smart grid is a form of electricity network utilizing digital technology. A smart grid delivers electricity from suppliers to consumers using two way digital communications to control appliances at consumers' homes. The "Smart Grid" is envisioned to overlay the ordinary electrical grid with an information and net metering system, that includes smart meters. Smart grids are being promoted by many governments as a way of addressing energy independence, global warming and emergency resilience issues. The growth of an extensive digital communication network for the internet has made it practical to consider a more sophisticated type of smart grid. The increased data transmission capacity has made it conceptually possible to apply sensing, measurement and control devices with two way communications to electricity production, transmission, distribution and consumption parts of the power grid at a more granular level than previously. These devices could communicate information about grid condition to system users, operators and automated devices, making it possible for the average consumer to dynamically respond to changes in grid condition, instead of only utilities and very large customers. 4

5 The Path to a Smart Grid Future Overview of the smart grid maturity model The smart grid maturity model defines characteristics that you would expect to see at each stage along your transformation. It uses observable indicators of progress measurable outcomes that should come with maturity. The five smart grid maturity levels are: Level 1 Exploring: The utility is beginning to explore the journey toward a smart grid, and may have a vision but not a clear strategy. At this point, experimentation and evaluation of technologies and building of business cases are key. Level 2 Investing: The utility is investing in and implementing at least one of the essential functional areas of smart grid. For some, the priority is advanced metering infrastructure (AMI). Others may start with demand side management (DSM) or deployment of a distributed intelligent sensor network for enhanced grid reliability and outage recovery. Level 3 Integrating: The components of smart grid begin to be integrated with one another, providing operational linkages between two or more functional areas. Level 4 Optimizing: Transformation and optimization of systems enterprise wide occurs, taking advantage of integrated control across and between utility functions. Level 5 Innovating: The enterprise is positioned so when new business, operational, environmental and societal opportunities present themselves, the capability exists to take full advantage of them. 5

6 The Move to Decentralized Technology vs. vs. 6

7 Disruptive Technologies will Drive Smart Grid Volvo: ReCharge Concept Plugin Hybrid Vehicle Whispertech: Whispergen Stirling Engine micro CHP unit 7

8 World Population Growth and Energy Demand SU.S. Energy Information Administration (EIA), International Energy Outlook United Nations Population Division 8

9 Commodity Prices will Continue to Rise Gold Trends Oil Trends 9

10 Benefits of Smart Grids A smart grid has incredible potential to increase the operational efficiency of the network, thereby reducing losses and the emission of pollutants, including CO2. It can also increase the reliability and flexibility of the network helping it meet daily and emergency conditions. Better facilitate the integration of intermittent renewable resources. Provide consumers with greater information and options for choice of supply, and allow them to play a part in optimizing the operation of the system. Foster market integration towards an integrated electricity market. 10

11 Smart Grids Can Reduce Carbon Emissions and Improve Energy Efficiency Reduced network losses Facilitating higher penetration of renewable (e.g. wind) and distributed generation (e.g. small windmill or micro CHP plant) in compliance with operational security, power system and electricity market efficiency Helping consumers better participate in the market not only by using their energy more efficiently (e.g. through smart metering) but also by allowing consumers to act also as producers selling back their excess electricity (e.g. CHP or plug in electrical vehicles). 11

12 The Grid as it Stands: What are the Risks? Even as demand has skyrocketed, there has been chronic underinvestment in getting energy where it needs to go through transmission and distribution, further limiting grid efficiency and reliability. While hundreds of thousands of high voltage transmission lines course throughout the United States, only 668 additional miles of interstate transmission have been built since As a result, system constraints worsen at a time when outages and power quality issues are estimated to cost American business more than $100 billion on average each year. NATIONAL ECONOMY: The numbers are staggering and speak for themselves: In 2000, the one hour outage that hit the Chicago Board of Trade resulted in $20 trillion in trades delayed. Sun Microsystems estimates that a blackout costs the company $1 million every minute. The Northeast blackout of 2003 resulted in a $6 billion economic loss to the region. 13

13 Five Fundamental Technologies that will Drive the Smart Grid Integrated communications, connecting components to open architecture for real time information and control, allowing every part of the grid to both talk and listen Sensing and measurement technologies, to support faster and more accurate response such as remote monitoring, time of use pricing and demand side management Advanced components, to apply the latest research in superconductivity, storage, power electronics and diagnostics Advanced control methods, to monitor essential components, enabling rapid diagnosis and precise solutions appropriate to any event Improved interfaces and decision support, to amplify human decision making, transforming grid operators and managers quite literally into visionaries when it come to seeing into their systems 14

14 Growth in global installed wind Capacity Source: EIA, Global Wind Energy Council 15

15 Examples of Wind Variability ERCOT April 18, 2009 Increase of ~4,000 MW in 2hrs 17

16 Examples of Wind Variability ERCOT June 10, 2009 Decline of ~3,000 MW in < 1h 18

17 So we have; The Need for Flexibility Market Drivers variability from load variability of supply from non-dispatchable generation constrained transmission networks load pockets Cycling impacts on thermal base load generation with increased wear, costs and emissions Future power systems will need to include more flexibility in addition to just efficiency and competitive costs!!! 19

18 Cycling Problems w/o flexible gas generation Night wind forces coal plants into cycling operation Operational challenges Thermal stress, wear and failure Increased emissions 2008 ERCOT Average load, net load and wind output 20

19 Natural Gas in a Smart Energy Future A Smart Energy Future with Natural Gas Integrated Improved safety, security, and environmental performance; More efficient infrastructure, able to provide demand response (DR), accommodate emerging technologies, new sources of supply; Improved DR for electric distribution through switching heating and cooling loads to NG and NG fueled distributed generation (DG); Greater consumer choice resulting in maximum energy value; and Optimized energy value from renewable wind and solar through the use of fast ramping dispatchable generation. 21

20 Natural Gas in a Smart Energy Future DELIVERY SECTOR cont d NG Fueled Microgrids: one or more interconnected DG/CHP units anticipated to be part of the smart energy future and supported by the NG delivery infrastructure. Microgrids well suited to applications where there are concentrations of energy consumers needing both electricity and heat. Requires active and local management of energy production/consumption. Microgrids will: better utilize energy delivery infrastructure; defer electric generation and delivery upgrades; reduce electric transmission losses; improve energy service reliability; and reduce overall energy costs for consumers. 22

21 Conclusions Smart grid technology has tremendous potential to improve the environment and the economy; Decentralized generation can make the grid smarter and smart grid technology will enable the development of additional distributed resources; Many of the barriers to deployment of smart grid technology will be policy and regulatory issues; Extensive education and outreach about smart grid technologies with all stakeholders is required; Organizations like WADE can help breakdown policy barriers through advocacy and education. 23

22 Electricity Demand Plugging In Peg plugged in her lectric toothbrush, Mitch plugged in his steel guitar, Rick plugged in his CD player, Liz plugged in her VCR. Mom plugged in her lectric blanket, Pop plugged in the TV fights, I plugged in my blower dryer Hey! Who turned out all the lights? Shel Silverstein, Falling Up 24