The Smart Grid Lunch and Learn

Transcription

1 GE Energy Session 2 of a 5 Part Series on the Smart Grid The Smart Grid Lunch and Learn Session 2: The Smart Grid The Consumer View 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 2: The Smart Grid The Consumer View Topics: Smart Grid Overview Benefits Overview Overview of Good Things Enabled by the Smart Grid Overview of the Calculated Benefits of the Smart Grid Consumer Options The Power of Information Energy Management Demand Side Management Smart Appliances Plug In Vehicles PV and Small Wind Generation New Consumer Possibilities Customer, Generator, Partner Impact of Policy 3

4 Introduction

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 What is a Smart Grid? The integration of two infrastructures securely Electrical infrastructure Electrical Infrastructure Information Infrastructure Sources: EPRI Intelligrid 10

11 Flexibility for emerging capabilities Wide-Area Monitoring & Control Wide-Area Protection & Automation Renewables Forecasting Renewables Smoothing Delivery Optimization Demand Optimization Asset Optimization 11

12 Roadmap for a Smarter Grid What it is Why Utility Value/MM Customers* Demand optimization Delivery optimization Manage peak via control of power consumption Reduce delivery losses in distribution systems Defer upgrades, optimize generation & renewables Less energy waste and higher profit margins $16MM/yr, 51K tons of CO2 reduction+ Res. consumer savings up to 10% Based on 1.6% peak load reduction using critical peak pricing resulting in reduction in fuel costs and deferral of generation capacity $7MM/yr,, 45K tons of CO2 reduction+ Based on 0.2% loss reduction and 0.5% CVR peak load reduction resulting in reduction in fuel costs and deferral of generation capacity Asset optimization Prognostics for proactive equipment maintenance Reduced outages and focused maintainers $11MM/yr, ~4.5 yr ROI Based on system-wide deployment of advanced transformer M&D resulting in transformer life extension and reduction in inspection, maintenance & repair costs Reliability optimization Wide Area Protection & Control Increased network performance & reliability $7MM/yr Based on the deferral of the capacity upgrade of two 220kV transmission lines for 3 yrs (each line 30 miles long with a cost of upgrade of $1.5MM per mile) Renewables optimization Use of Forecasting & Smoothing Compensation for production variability Key step for meeting RPS targets, especially in areas with weak grids *Utility savings are approximate annual savings per one million customers + $85/kW-yr peak generation capacity value 12

13 Demand Optimization Value to Consumer Smart Thermostat Consumer Interface Smart lighting Demand Smart Meter Efficient appliances Pacific Northwest National Laboratory announces the results of two studies demonstrating consumers and information technology can play an active role in managing the grid On average, consumers who participated in the project saved approximately 10 percent on their electricity bills 13

14 Energy Management

15 Demand Optimization the green alternative and GE estimates 15

16 Energy consumption profile 16

17 Peak power use electrical appliances only Electric appliances only 17

18 Price variations. driving behavior Electricity Cost by State, January 2009 OR 8.41 CA AK WA 7.65 NV ID 7.05 MT 8.44 WY 7.76 UT 8.00 CO 9.25 AZ 9.51 HI NM 9.54 ND 6.55 SD 7.58 NE 6.89 KS 8.16 TX OK 7.67 MN 9.59 IA 8.88 MO 7.02 AR 8.94 LA 8.92 WI IL MS 9.64 MI IN 8.62 TN 9.44 AL OH 9.39 KY 8.10 GA 9.40 PA WV 7.40 VA NC 9.45 SC 9.80 FL NH VT NY ME MA RI CT NJ 15.8 DE MD DC Residential Average Price (cents per KW) Source: Energy Information Administration 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) 18

19 Homeowner segmentation (US). Savers First-Costers Control Freaks Lazyboys Warm-Bloods Creatures of Comfort Profile Description While initial Installation Cost is important for this segment, this customer is also highly influenced by Net Monthly Savings. Three types: Basic, Comfort, and Convenience Savers. Home Age: >20 yrs Gas Bill: >$50/mo Elec Bill: >$75/mo Initial Installation Cost is the clear driver for this segment. This segment is averse to Changes in Appliance Use, and the Method of Control is a secondary concern. Age: >36 yrs old Home Size: <2000 ft 2 Home Age: >20 yrs This customer is primarily concerned about the Method of Control to generate savings, yet this customer also prioritizes Net Monthly Savings or Appliance to Control Age: >36 yrs old Home Size: 1K-3K ft 2 Home Age: <5 >26yrs Just like the Warm- Bloods except this customer is just as concerned about the Method of Control to generate savings. Home Size: >1000 ft 2 Besides Installation Cost, this customer is averse to Home Temp Changes of 5 F or more, yet is rather insensitive to Method of Control. Net Monthly Savings much less important. Income: $75-$200K/yr Hardly found in CA Support Conservation Regardless of Installation Cost, this customer is most highly averse to Home Temp Changes of 5 F or more to generate savings. Often concerned with Method of Control. Value Prop VOC Size I would run a washer and dryer at off-peak times. If you could save more by running things at a different time, why not? A partnership with your utility to slash monthly bills and help save you money, with a low up-front installation cost. 36% Appliances, heat and air conditioners consume the most unless you buy [energy saving] appliances It s expensive to change out all this stuff. Our energy management system will enable you to reduce your monthly energy bill by as much as 20% without any up-front cost. 20% If the utility had a breakout of what I used when and where my major usage is that would help but I don t want them manipulating my energy. A premium energy management system that you control to manage your bills, and helps you predict your bill payments. 12% Empowerment has an ugly twin. The utility company can also manipulate my usage. An energy management system you program to fit your lifestyle and match your usage needs. 19% I try to watch [energy usage] but me and my wife have a different idea of what s comfortable. Our basic home system will find the best times of day and appliances to control, helping you trim energy costs. 9% It s hard it s running your heater or air conditioner if you want to be comfortable leaving the lights on so you don t come home to a dark house. Our premium energy management system helps you command and control your home environment. 4% Source: GE Study 19

20 Consumer Enablement

21 Smart Grid to Smart Home Smart Home Fiber, Sonet Smart Home Two way communication Smart Meter Price schedule Demand response signal Utility specific commands Utility Operating Center 21

22 What is a Smart Home? Responsible Energy Use Energy-efficient lighting & appliances Solar PV and water heating Smart thermostats Energy Optimizer Responsible Power Use Participation in utility DSM programs Home energy management Smart lighting & appliances 22

23 The challenge.. Demand suppression to shift/shave peak Energy rebound of ~ 80% of suppressed demand* *Source: California Study 23

24 Shift use to off-peak hours with minimal impact Refrigerator Delay defrost Modification of run time during peak Reduced features during peak Energy saver mode Washer/Dryer Delayed wash and dry Reduced cycle time Manage water usage- cold wash Energy saver mode Range and Microwave Reduced energy cooking Use of small cavity Cooking efficiency Electronic cook top Home Energy Manager (HEM) Complete Energy usage tracking Water usage tracking Configurable settings Smart Thermostat Fully programmable $KWh Usage Instantaneous KWh Instantaneous $Pricing Dish Washer Delayed wash Reduced cycle time Manage water usage Energy saver mode 24

25 Controlling energy and power use Energy Key Concepts Don t heat and cool unnecessarily Thermostat Power Key Concepts Leverage future knowledge (TOU structures, weather forecasts ) Electricity Rate Pre-cool Plan Leverage solar energy Leverage grid-friendly loads California load profile, and impact of 30% PV penetration 25

26 The Future Ahead

27 Leveraging emerging technologies Smart PV Smart Home enabled Coincide with peak Small Wind Smart Home enabled Residential/Small commercial Smart HEV Smart Grid/Home enabled Schedule charging 27

28 Many states driving solar & renewables requirements Policy Recent legislation 30% ITC with utility eligibility Option to take Treasury grant Renewable Portfolio Standards (RPS) States with RPS Solar Carveouts (11 + DC) States with RPS DG Carveouts (4) Mandatory RPS (28 + DC) Voluntary RPS (5) Considering RPS (2) Proposed legislation Florida RPS 20% by 2025 Federal RES 25% by 2021 Fed & State Government advocating Green Energy 28

29 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 ($) System output (kwh) $/W * 1000 *4kWp Federal & State tax ITC Monthly payment (assuming interest is compounded monthly) * 12 + O&M 4kWp * 8760 hours * capacity factor Breakeven ( /kwh) Annual payment / system output * 100 Assumptions Location: Atlanta System size: 4 kwp Capacity factor: 15% Debt terms: 25 years Cost of debt: 7% O&M (annual): $40 # hours/year: 8760 Federal ITC: 30% State ITC: 35% Residential customers who finance PV in mortgage can get positive cash flow 29

30 Summary Economic and environmental demands are forcing functions Investment in technology can accelerate their adoption The Smart Grid is dynamic and must be viewed as a system Demand response is the 5 th fuel let s compensate for it Renewables play an important role in the grid of the future Policy will drive behavior 30

31 Smart Grid Learning Series next week 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 31