GE Energy. Session 5 of a 5 Part Series on the Smart Grid. Session 5: The Smart Grid The View From Rural America

Transcription

1 GE Energy Session 5 of a 5 Part Series on the Smart Grid The Smart Grid Lunch and Learn Session 5: The Smart Grid The View From Rural America 1

2 Smart Grid Learning Series Session 1: The Smart Grid and its Benefits Session 2: The Smart Grid The Consumer View Session 3: The Smart Grid The Distribution View Session 4: The Smart Grid The Transmission View Session 5: The Smart Grid The View from Rural America 2

3 Session 5: The Smart Grid The View From Rural America Topics: Previous Session Review Market Drivers Increasing Costs Smart Grid Solutions A Recap The Role of Advanced Metering Infrastructure (AMI) WiMAX Bringing Broadband and the Smart Grid to Rural America Green Generation in Rural America Biomas Generation Small and Large Wind Generation A Role for PV? The Impact Green Generation on the Distribution System Impact of Policy Discussion 3

4 Smart Grid - Review

5 Industry challenges Soaring energy demand Power outages financial impact Green energy takes center stage Electricity prices on the rise Aging infrastructure/workforce 5

6 Electricity prices on the rise U.S. sees 6.5% spike in 09 electric bills 6.5% Source: EIA (Energy information Administration) 6

7 Electricity Poised to change the world again We can t solve problems by using the same kind of thinking we used when we created them. - Albert Einstein 7

8 The Smart Grid

9 Growing complexity in modern grids 9

10 Grid inefficiency Source: AEP PUC Hearing 10

11 Aging assets Transformer failure rate 100% 80% 60% 40% 20% 0% Age in Years 11

12 Emerging Capabilities Wide-Area Monitoring & Control Wide-Area Protection & Automation Renewables Forecasting Renewables Smoothing Delivery Optimization Demand Optimization Asset Optimization 12

13 Smart Grid The View from Rural America

14 Rural Electric Cooperatives An Overview 864 distribution, 66 generation & transmission cooperatives serving: 40 million people in 47 states 17.5 million businesses, homes, other establishments in 2500 of 3141 (80%) counties in U.S. 12% of U.S. population Electric cooperatives in the United States: landmass Own/maintain 2.5 million miles (42%) of nation s distribution line, covering 75% of U.S. Deliver 10% of total kilowatt hours sold in U.S. each year Generate almost 5% of electricity it produced d in U.S. each year Own assets worth $100 billion Employ nearly 67,000 people Pay over $1.2 billion state/local taxes Source: National Rural Electric Cooperative Association 14

15 American Recovery & Reinvestment Act of Plus $30-60B in additional customer spend Smart Grid BPA WAPA Energy Efficiency Fossil Energy Broad Band America Competes Bonds/ Guarantees Energy Segment ~$100 billion energy related spend 15

16 What is a Smart Grid? The integration of two infrastructures securely Electrical infrastructure Electrical Infrastructure Information Infrastructure Sources: EPRI Intelligrid 16

17 ARRA Broadband Provisions ARRA allocates $7.2B for broadband funding $4.7B to National Telecommunications & Information Administration (Commerce) $2.5B to Rural Utilities Service (Agriculture) National Telecommunications & Information Administration funding (Grants) Provide broadband to people residing in unserved/underserved areas, community support organizations (schools, libraries, etc.), agencies that facilitate broadband use by low-income, aged, other vulnerable e groups Stimulate demand for broadband, job growth, economic development Rural Utilities Service funding (Grants/Loans) At least 75% of area receiving funds must be in rural area without sufficient access to high speed broadband service to facilitate rural economic development Priority given to projects that will give customers choice of more than one provider and those that will provide service to highest proportion of unserved residents 17

18 The Power of 4G for the Smart Grid Leading, Low-Cost, Open Standards-Based Based, 4G Wireless Broadband Technology Non-line-of-sight (NLOS) service into customer premise > Ideal for hard-to-reach locations Highly flexible bandwidth delivers cost-effective network build-out Multiple concurrent sessions, with full security Operable in both unlicensed and licensed spectrum 500+ Members $ Millions Invested in Proven Technology Strong, thriving ecosystem > Intel, Cisco, Microsoft, Motorola, Siemens, Comcast, Alcatel > No vendor lock-in Open standards > WiMAX Forum, IEEE, IETF Proven telecoms-grade reliability and scalability 18

19 WiMAX Deployments Worldwide 19

20 GE WiMAX Smart Grid Solution Partners 4G wireless communications network for ALL utility requirements Advanced Metering, Demand Response, SCADA, Distribution Automation, Voice, and Mobile Real-time Outage and Fault Detection, and Real-time Service Restoration improving reliability Utility & Wireless Carrier collaborative business models (Shared CAPEX / Outsourced OPEX) Utility capital for WiMAX Network deployment O&M provided by Carrier with guaranteed SLA s WiMAX SmartMeter by GE innovative, truly open, standards-based, smart meter GE SmartMeter becomes a valued asset providing a broadband pipe at every home GE SmartMeter is gateway to the home providing advanced utility and customer energy services WiMAX Smart Grid Network collaboration changing the game for the utility & telecom industries 20

21 WiMAX SmartMeter by GE truly open, standards-based Smart Meter / Broadband Router Advanced Metering > Full featured ANSI C12.19 Smart Meter > Automated and On-Request Reads > Meter Events, Alarms, and Reporting > Secure Remote Disconnect / Reconnect > Outage / Restoration Detection & Reporting > Remote Configuration & Firmware Upgrade > Demand Management / Load Limiting > On-Board Secure / Dynamic SOAP Server Standards-based Strong Security > EAP-TLS Authentication; WiMAX PKMv2 > Tamper-proof Crypto EEPROM Key Store > x.509 Digital Certificate based Identity > Meter Password Management Broadband Access Router > IPv4 / IPv6 Router; 802.1Q VLAN Switch > IP DiffServ and 802.1P QoS / CoS Services > DHCP, NTP, Firewall, Encryption > VPN Services TLS, IPSec 21

22 Rural Connectivity - Summary Enables advanced metering and broadband connectivity using one unit and one network Expedited implementation through shared use of existing assets (poles, right of way) Helps to accomplish multiple ARRA objectives Investing in the future Key benefits for utilities, consumers, smart grid Utilities are able to better manage their assets and resources Customers are able to better manage energy use Less energy used Two connections Reduced emissions Win-win! Electricity Smart meter/ Smart modem Broadband network Internet Plug-in vehicle Solar Smart appliance s one smart system 22

23 Small Utility Generation Options 23

24 DG with small renewables Wind Small wind <100kW unit Economical wind installation, using existing infrastructure Solar Residential, commercial and utility applications Biogas Gas engine power range: 025MW MW Fuel flexibility: variety of renewable or alternative gases AeroDerivative GT Peaking application: technology to augment unpredictability in renewable power generation 24

25 Electricity Cost by State, January 2009 OR 8.41 CA AK WA 7.65 NV ID 7.05 MT ND MN WY 7.76 UT 8.00 CO AZ 9.51 HI SD 7.58 NE 6.89 IA 8.88 WI MI OH 9.39 IL IN KS MO 8.16 KY NM 9.54 OK 7.67 TX LA 8.92 Source: Energy Information Administration AR 8.94 MS 9.64 TN 9.44 AL GA 9.40 PA WV 7.40 VA NC 9.45 SC 9.80 FL NH VT ME NY NJ 15.8 DE MD DC Table 5.6.A. Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, by State, January 2009 and 2008 (Cents per kilowatthour) MA RI CT Residential Average Price (cents per KW)

26 Biogas 26

27 Biomass-to-power Landfill Gas Waste Water Animal / Industrial Biomass Treatment Plants Bio waste Gasification Fuel / Technology Methane from Methane from Methane from anaerobic digestion anaerobic digestion anaerobic digestion Syngas from gasification Total Est. $1.4 B $0.54B $1.0B $15.6B Market 27

28 Gas engine Unit size: up to 4 MW / engine Key benefits Fuel flexibility: access to alternative fuel sources Access to renewable incentives (if biogas used) Fast deployment Flexibility in plant size: installation of multiple units Portable; skid mounted solution possible High efficiency i Source: Nexterra web site 28

29 Biogas applications Biogas sources Forest industry (wood chips) Diary farm (animal waste) Industrial (industrial waste) Municipal WWTP Industrial WWTP Landfill gas Enabling technologies (available) Digester Biomass gasifier Renewable power generation with gas engine 29

30 Biomass gasification pilot Source: Nexterra web site 30

31 Solar 31

32 Solar Key benefits Continuous reduction in PV module cost Fast deployment Modular installation; flexible size Low infrastructure requirement on installation Power generation timing, matching the demand 32

33 Solar potential in USA 1kW solar system (per 100ft 2 ) Zone Average monthly kwh production range Source: GE data 33

34 Solar: PV application examples 18kW, Santa Maria de Roncesvalles Pomplona, Spain 129 kw, Shafer Vineyards CA, USA 10MW, Cáceres Project Spain Commercial Residential / building Rural Industrial 34

35 Preparing for the Future PV grid parity is coming without incentives 10% NJ Commercial Residential Prob 40% Prob 60% Prob 90% Prob IL GA CA Commercial Residential Commercial Residential Commercial Residential % IRR s today in AZ, CT, HI, MA, NJ, & OR with incentives 35

36 Big Boxes Adopting PV Solar Wal-Mart Launches Solar Power Initiative "... provide as much as 20 megawatts of electricity, for prices less than it currently ypays local utilities... solar power companies pay the upfront costs of installations and retain ownership of the systems, and enter long-term contracts to sell electricity to their customers." Source: Fortune, May 07, 2007 Long Beach, CA Electricity Rate: $.145/kWh Contract 0.125/kwh.. 2.5% escalation.. 20 years 390 KW $ 4.145/watt module cost. $6.10 install cost 36

37 Residents will realize future savings Breakeven Cash Flow Analysis using Home Financing $/W (installed) Breakeven Retail Rate (cents/kwh)* * Resident achieves cash savings when retail electricity rate exceeds $/kwh value for 4kW system Calculations Net capital cost ($) Annual payment ($) $/W * 1000 *4kWp Federal & State tax ITC Monthly payment (assuming interest is compounded monthly) * 12 + O&M System output (kwh) 4kWp * 8760 hours * capacity factor Breakeven ( /kwh) Annual payment / system output * 100 Assumptions Location: Atlanta O&M (annual): $40 System size: 4 kwp # hours/year: 8760 Capacity factor: Federal ITC: 30% 15% State ITC: 35% Debt terms: 25 years Cost of debt: 7% Source: GE internal analysis Residential customers who finance PV in Mortgage can get Positive Cash Flow 37

38 Utility-Scale Solution Thin Film Complete Solar System Kit Example Racking System Thin Film PV Modules GE Inverter Cabling Monitoring & Security GE offers a 1.5MW solar power plant kit, designed for ease of installation, optimized for performance, and delivered with excellent GE execution and reputation ti System Specs 1.5MW Area Acres Efficiencyi 8.5->12+ %CE No. of Modules 23,000 Steel Posts 1,500 Production 2,100 MWh/yr System Life >20yrs Plug & Play Advantages GE Reliability & Execution Grid Friendly dy & GE Controls os Simplified & Scalable Cost Competitive Commercial Discussions 4Q08 38

39 Small wind 39

40 Small wind Unit size: < 100kW /unit Key statistics 2008 Global small wind market Players 38.7MW 19,000 units $156MM (sales) 53% growth over 2007 Total 219 companies >74(US) > 145 (Others) Projection 1.7GW in USA by 2013 Source: AWEA Small Wind Turbine Global Market Study 2008 Key benefits Ease of scalability Federal tax credit (30%) Further state incentives on renewables Utilization of existing infrastructure (Tower & grid connection) Swift installation Source: Southwest Windpower 40

41 Small wind: Application examples Residential applications Utility pole integration ti Retail car park Source: Southwest Windpower 41

42 Small wind: State incentives Source: AWEA Small Wind Turbine Global Market Study

43 AeroDerivative Gas Turbines 43

44 AeroDerivative Gas Turbines Unit size: MW Key benefits: Proven reliability and availability Fast load response Excellent starting max load in <10mins Short installation time Small footprint; lightweight, compact design Dual fuel capability Outstanding low emissions High efficiency for simple & combined cycle, and cogeneration applications 44

45 AeroDerivative GT + Wind Traditional manual dispatch when generation is needed Deregulation/dispatch drives generation investment Grid system manages wind volatility and takes all it can get Managing real-time wind volatility through a smart controller Wind Intermittency Management System (IMS) Nodal market calls upon most efficient generation, high ancillary market Benefits/penalties for not meeting wind forecast 45

46 AeroDerivative GT + Wind Wind needs o Multiple l start/stop t/ t cycles without maintenance penalty o 10 minutes or less to full power The higher the ramp rate the better o High simple cycle efficiency o High part power efficiency and low emissions o Remote operation AeroDerivative GT Capabilities Proven AeroDerivative design Demonstrated plus 50 MW/min ramp rate without penalty possible Best in industry 44% Hot day performance Demonstrated 46

47 AeroDerivative GT + Wind Example: 400 wind + LMS100 (One representative week of good wind operation) Actual Wind MW LMS power Forecast Wind (unbiased) Hour NW Miller 2/7/2007 Energy Consulting 47

48 System integration 48

49 Distributed generation: System integration Equipment Small Solar Small Wind CONVERSIO N STORAGE LOAD Batteries Inverter T& D 49

50 Managing the Grid Planning Building Safety Reliability 50

51 Summary Unique opportunity to bring 4G WiMax technology to rural America NRECA and NRTC collaboration next generation networks Small Green Generation enabled Smart Grid reliability Partial Solution to Farm Waste Issues 51