1 Electric Utilities: An Industry in Transition Wanda Reder Chief Strategy Officer, S&C Electric Company IEEE Power & Energy Society Distinguished Lecture Australia August, 2017
2 Overview Trends and Drivers Industry Transition is Changing How Its Made Moved Used Key Elements for Success Featured Case Studies Development Opportunity with IEEE PES
S&C Electric Company Global Expertise Local Support Local support Able to provide full EPC solutions and post commission operational support. Reliability Products Reduce momentary outages for network customers Strong History Founded in 1911 and with over 60 years of presence in Australia, S&C Electric Company is 100% employee owned. Bespoke projects Catering to government bodies, utilities, public/private companies, we understand every project is unique. Energy Storage Fully integrated Power Quality Energy Storage Systems deployed locally. 3,000+ Over 3,000 employees worldwide.
4 Grid Trends and Drivers Growing Dependency on Reliable Supply Infrastructure is more prone to failure Increasing Environmental Requirements Driving Technology and Policy Escalating Security Concerns Frequent Climatic Vulnerability
Factors Shaping The Clean Energy Transformation Natural gas prices
Now 6
In 25 Years 7
8 Australia Projects Energy Shortfall SUPPLY OF Without gas development electric prices are likely to increase threatening the viability of vulnerable electric loads. Could be a gas / electric shortfall between 2019-2024 Source: Australian Energy Market Operator s 2017 Gas Statement of Opportunities.
9 Hot Issue: Bushfires and Powerlines The role of powerlines in bushfires is raising some pressing issues of climate change adaptation. The Conversation, September, 2012
Compelling Evidence of Rapid Climate Change Rising Sea Levels Global sea level rose about 8 inches in the last century. More Extreme Events Ocean Acidification Surface ocean acidity has increased ~30% from added CO 2 in the atmosphere: the upper layer absorbs ~2 billion more tons per year. Less Ice, Glaciers, Snow Rising Global Temp Warming Oceans Average surface temp has risen about 2 F (1.1 C) since the late 19th century, driven largely by increased CO 2 and other humanmade emissions. High temperature events in US has been increasing; low temperature events decreasing, since 1950. The extent and thickness of Arctic sea ice has declined rapidly. Glaciers are retreating and the amount of snow in the Northern Hemisphere has decreased. The top 700 meters (about 2,300 feet) of ocean showing warming of 0.302 F since 1969. Source: NASA Global Climate Change: https://climate.nasa.gov/evidence
Changes How We Make Energy: More distributed supply Accommodate growth Move Energy: Flexible, reliable, resilient Increase visibility, controls Use Energy: Integrate end use activity Empower customers Technologies: Energy storage Power electronics Distributed intelligence Adaptive protection Layered architecture Self diagnostic, healing Data, cyber, analytics Source: IEEE GridVision 2050
Technology Changing how we Make It As solar industry scales, prices fall Australia solar farm 11/2016 Storage costs are following solar More Electric Vehicles are Coming Incremental capacity is coming from edge of grid
13 Make It : Solar is at Parity and Dropping Deutsche Bank: March 10, 2015 Bloomberg June 15, 2017 As renewables reach parity, what changes?
14 Minster Makes It with a New Model Merchant Market Owner- Developer Community Suppliers Customers 4.2 MW solar plant with 7 MW energy storage: Minster, Ohio USA
Move It : Old Grid Move It : Modern Grid Bi directional power flows is driving circuit design changes, new grid components and control systems S&C Electric Company 2016, all rights reserved
Challenges to Move It With Central Control Too much to manage centrally: Multi-directional power flow DER inter-connections Dynamic operations System balancing Microgrids Wild voltage swings
Distributed Intelligence is Key IntelliRupter PulseCloser TripSaver II Cutout Mounted Recloser Single phase Avoid truck rolls Minimizes momentaries Interrupt fault current Segments load Two way sensing Adaptive protection Detects power quality events
EPB Chattanooga s Smarter Smart Grid EPB Chattanooga 500,000 customer municipal Smart Grid Started with fiber everywhere Smart Switches 1200 units on all 12kV 5:31:37 5:31:52 5:31:09 5:37:47 PM 800 10,000 11,258 All more customers without restored power Storm Jan, 2013 Source: David Wade, EPB Chattanooga, presented for DOE, Dec. 2014 EPB s Smarter Smart Grid
Use It : Emerging Microgrids Fault Local Community Primary Source Alternate Source(s) Alternate Source(s) A group of interconnected loads and distributed energy resources with clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid and can connect and disconnect from the grid to enable it to operate in both grid-connected or island mode.
Microgrid Advantages 20 1. Greater reliability and resiliency 2. Greener power 3. Modernized infrastructure 4. Increased security 5. Cost savings 6. Bushfire Mitigation The traditional utility model is changing to include standalone power systems
Distributed Energy Resource (DER) Considerations Inverter based (harmonics) Intermittent, uncertain output Grid interconnection codes Capable of being observed, dispatched Provide reliability services Voltage support Frequency response Ramping Inertia for bulk power operations Safeguard against cyber attacks Distributed Energy Resources (DER) 21
Storage is Important Synchronize sources Smooth transition to/from utility source Manage intermittency Energy Storage Solar Hybrid Project Minimize reverse power flow, maintain voltage Store output and release coincidental with local load Energy Storage Wind Hybrid Project 22
Santa Rita Jail Microgrid 2 MW, 4 MWh batteries Time shifts solar and wind to match consumption Saves money More reliable
ONCOR Microgrid Utilized distributed generation Two solar photovoltaic arrays One micro turbine Two energy storage units Four generators Four interconnected micro grids Energy storage is the backbone 24
25 Tests renewables + automation + battery storage Ameren Microgrid 1,475 kw connected to grid Wind: 100 kw Solar: 125 kw Natural Gas: 1,000 kw Storage: 250 kw Military grade cybersecure controller Ameren Microgid Champaign, Illinois
GridMaster and Energy Storage are Essential
Opportunities Remain Regulatory, ownership, price issues Re defining the roles Advancing interoperability of everything Capability for dynamic operations Utilize lots of data with varying time domains Develop workforce competencies Energy Financial Services Bulk Power System Energy Provider Customer Distribution Operations Energy Related Services Energy Device Firms Processes and coordination needed across multiple entities
Changing Workforce Needs 28 Smart Grid Engineering Automatic Controls Information Technology Standards Power Electronics Computer Engineering Communications Marketing, Economics Big Data Analytics Smart Grid Engineering Security Systems Theory Energy Conversion Public Policy Consumer Behavior Signal Processing Transmission & Dist. Engineering Engineering Physics Adopted from Source: Professional Resources to Implement the Smart Grid ; Gerald T. Heydt and others. 2009 IEEE Power & Energy Society General Meeting 8/31/2017
29 Managing Cyber Security and Resiliency Create a cyber framework with accountability Create procedural path that parallels IT It s a mindset: a series of layered precautions is better than an super firewall
IEEE Resource 30 Visit at smartgrid.ieee.org Collaboration across IEEE with 14 partner societies 137,000+ followers Get involved: Newsletter Webinar Series Global conferences Technical Activities, Standards Research & Development
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In Closing for an Industry in Transition Recognize the trends and drivers Enable the future by looking forward... Make it Move it Use it Key enablers: distributed intelligence, renewables, and energy storage Future workforce opportunities Wanda Reder Chief Strategy Officer S&C Electric Company Wanda.reder@sandc.com (773) 381-2318 Stay current with the IEEE Power & Energy Society