carleton university 20160324

SafeStartslide

Highlighttheimportanceofsafetyandnotonlytechnologyinthecontextofasmartgrid.Usemyearliestmemory(screwdriverinelectricalwallsocket)andsaidscrewdriverasexample.

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Inthe1880s,NikolaTesla inventedthe3-phase60HztechnologystillusedintheNorthAmericanelectricalgrid,whichwasthencommercializedbyGeorgeWestinghouse,whowascompetingwiththedirectcurrentsystemofThomasEdison.

Onehundredandthirty yearslater,thegridisstillessentiallythesame, butit isbeginningtotransform.

Earlyon,thegridwassimple…

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…butovertimenewgenerationandtransmissionwereadded.

Buttheelectricity industryisnowfacingnewchallenges…

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Theneedforatransitiontoasustainablesocietyisbecomingevermoreurgent– sustainablefromtheenvironmental,socialandeconomicperspectives.Theproductivecapacityoftheplanetisalreadystressedinmeetingcurrentdemandforenergy,goodsandservices,whilebillionsofpeopleremainmiredinpoverty,lackingevenbasichygiene.

ItookthisphotoinMiurWoods,inCalifornia,justNorthofSanFrancisco.Theseredwoodsmaybeathousandyearsoldandahundredmeterstall.Thisisstillyoungforredwoodsastheycanliveupto2200years.Beinglong-livedandlarge,theyplayasignificantroleinthecarbon,nutrient,andwatercyclesoftheforest,helpingtosupportanabundanceofplantandanimallife.Thisisasustainableecosystem,althoughunderincreasingpressurenow,withextremeheatwaves,droughts,morewildlandfires,coastalfloodinganderosion,andotherformsofhabitatdestructionamongpossiblescenariosinthecomingdecades.

PhotoCredit: BenoitMarcoux,personalcollection, LookingupMiurWoods,California,2007.

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Resiliency is definedas"thecapacitytosurvive,adapt,andflourishinthefaceofturbulentchange" (JosephFiksel,OhioStateUniversity,CenterforResilience) – i.e.adaptivecapacity.

ItookthisphotoonabeachinAruba.ThefamousDivi Divi treesareAruba'snaturalcompass,alwayspointinginasouthwesterlydirectionduetothetradewindsthatblowacrossthe island.Whilethiswasanicesunnyday,onecanimaginethatthistreehasseenitsshareofstormsandhurricanes,yetitisresilientanditmanagedtosurvive.

For cities,strengtheningresiliencetodayisaprerequisiteforachievinglong-termsustainabilityinthefuture.

PhotoCredit: BenoitMarcoux,personalcollection, Treeonabeach,Aruba,2005.

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Example:Assessmentofcitypracticesregardingwater:

• Bottom-left:Landreclamation:TheWorldArchipelago,Dubai,neitherresilientnorsustainable,especiallywithrisingsea.

PhotoCredit:NASA• Bottom-right:Desalination:resilient, aswewillhavealotofseawater,butnotsustainablegiven

thecostofenergy.PhotoCredit:Starsend (Photograph)[GFDL(http://www.gnu.org/copyleft/fdl.html)orCCBY-SA3.0(http://creativecommons.org/licenses/by-sa/3.0)],viaWikimediaCommons

• Top-left:Rainwaterharvesting:sustainableasituses littleresources,butnotresilientassusceptibletodroughtandclimatechange.

PhotoCredit:SuSanA Secretariat(RainwaterharvestingUploadedbyElitre)[CCBY2.0(http://creativecommons.org/licenses/by/2.0)],viaWikimediaCommons

• Top-right:Coastalwetlands(mangroveforest):Bothresilientastheyprotectthecoastfromerosionandsustainableastheynaturallygrowandregenerate.

PhotoCredit:BenoitMarcoux,personalcollection,MangroveForest,Martinique,2014.

Theresiliency-sustainabilitydiagramisbasedontheworkofJosephFiksel,attheCenterforResilience,OhioStateUniversity([email protected],614-226-5678).Itwaspresentedtomebyafriend,Jean-FrançoisBarsoum,SeniorManagingConsultant,SmarterCities,WaterandTransportationatIBM.SinceIfocusmoreonsmartelectricity, ourareasoffocusarequitecomplementaryandweexchangequiteabitonhowtechnologycanushelpmakeamoresustainableworld.

Itisinterestingthatcitymayorsareacknowledgedtobeatthefrontlinetotakeustoward amoreresilientandsustainablefuture.

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Let’s getbacktotheResiliency-Sustainability diagram.

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Inthe1880s,NikolaTesla inventedthe3-phase,60Hz(or50Hz)technologythatwascommercializedbyGeorgeWestinghouse,whowasthencompetingwithThomasEdison.Thesametechnologyisstillusedtoday.Wenowwanttotakeittowardamoreresilientandsustainablefuture.Assuch,wehavebeenimplementingintotheelectrical gridtechnologiesthatrenderitincreasinglyresilientandsustainable.

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(Theslidebuildsupquadrantbyquadrant)Lessresilient– lesssustainablequadrant• Traditionalgridisprimarily poweredbycentralfossilfuelplants,thatareneitherresilientnorsustainable.• Surprisingly,evensomemodernapproachesalsoareinthisquadrant:

• ResidentialPVaretypicallytrippedduringanoutage(notresilientwithoutstorage)andtheirhighcost(whennotsubsidized)arenotsustainable.

• Cellularnetworksarealsosusceptibletooutages.Dependingon applications,theymaycontributetosustainability.Moreresilient– lesssustainablequadrant• Dieselgeneratorsarethetraditionalwaytohavebackuppower duringoutages,but notsustainablebecausetheyareexpensiveto

runandusefossilfuel.• Undergroundingdistribution feedersalsoimproveresiliency(Vistaswitchgearshown).• MoreinterestingarecogenerationandCombinedHeatandPower(CHP)plantsthatmakebetteruseofresidualheatofindustrial

processes,sometimesfromarenewablesourcesuchaswood.• Meshedfieldareanetworks,initiallydesignedformilitaryapplicationsandnowbeingdeployedbyleadingutilities,aremoreresilient

thancellularnetworksand,becausetheirapplicationsmayhelpintegraterenewables,canimprovesustainability(SpeedNetshown).Lessresilient– moresustainablequadrant• Thegridisalsopoweredbylargehydro plantsandwindfarms thataremoresustainablebutsusceptibletotransmissionproblems.• Smartmetersalsohelppromoteamoreenvironmentallysustainablefuturebyenablingbettercontrolofloadsandhelpingenergy

conservation.Althoughsmartmetersimproveobservabilityofthegrid,theydonotdirectlymakethegridmoreresilient,andmanygroupsofthesocietyopposedthem(withoutscientificreasons).

• Homeautomationproducts,liketheNestthermostat,helpconsumerscontrolandreducetheirenergyconsumption.Moreresilient– moresustainablequadrant• Manysmartgridtechnologiescontributetomakingthegridbothmoreresilientandmoresustainable.• Remotecontrolofswitchingdevicesspeeduprestorationtimeandreduceoperatingcosts.• Advancedprotectionsystems(IntelliRupterandTripSaverIIshown)makethegridself-healing,reduceoperatingcostsandhelp

integratedistributedgeneration.• Energystoragesystemsenableislandingduringoutagesandhelpsmoothoutfluctuationsinrenewablegeneration.

Credits:• Co-generation: ByD. Sikes (Flickr: 2008-12-27-6533a.jpg)[CCBY-SA2.0(http://creativecommons.org/licenses/by -sa/2.0)], viaWikimedia Commons• Nest thermostat: Bygrantsewell [CCBY-SA 2.0(http://creativecommons.org/licenses/b y-sa/2.0)], viaWikimedia Commons• Diesel generator: ByLissia Martinez (Ownwork) [CCBY-SA 4.0(http://creativecommons.org/licenses/by -sa/4.0)], viaWikimedia Commons• Manic 5:Bymichelphoto53(Manicouagan) [CCBY2.0(http://creativecommons.org/licens es/by/2.0)], via Wikimedia Commons• Solar panel: BySteven Lek (Own work) [CCBY-SA 4.0(http://creativecommons.org/lic enses/by-s a/4.0)], via Wikimedia Commons• Celltower: ByTony Webster (Ownwork) [CCBY-SA 4.0(http://creativecommons.org/licenses/by -sa/4.0)], viaWikimedia Commons• Tracy plant,M-Series operator, SpeedNet repeater: byBenoitMarcoux, ownwork.• Others: Purchased arts, S&C.

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Thegridistransformingandgettingmorecomplicated.• Wearedecommissioningfossilplantsto reduceGHGemissionandnuclearplantsbecauseofsafety

concerns.• Thereisonlysomanyrivers,sothesolutionofbuildingnewhydroplantsisnotsufficient.• Wearethenreplacingfossilandnuclearbaseloadplantswithrenewablesthatareintermittent.• Tocompoundtheproblemofbalancingthegrid,loadsarealsobecomingpeakier,withreducedloadfactor.

Interestingly,manyenergyconservationinitiativesactuallyincreasepowerpeaks.• Toconnectthenewrenewablegeneration,wethenneedtobuildmoretransmission.Thetransmission

networkalsoallowsnetworkoperatorstospreadgenerationandloadovermorecustomers– geographicspreadhelpssmoothoutgenerationandload.

• Buildingnewtransmissionlinesfacelocaloppositionandtakesadecade.Theonlyotheralternativestobalancethegridarestorage…andDemandManagement.

• Anotherissueisthatwearefarmoredependentonthegridthatweusedtobe.Withelectricalcars,anoutageduringthenightmaymeanthatyoucan’tgotoworkinthemorning.So,weseemoreandmoreattentiontoresiliency,withfasterdistributionrestorationusingnetworkeddistributionfeedersaswellasmicrogridsforcriticalloadsduringsustainedoutages.

• Renewablegenerationandstoragecanmoreeffectivelybedistributedtothedistributionnetwork,althoughsmallscalegenerationandstoragearemuchmoreexpansivethancommunitygenerationandstorage.

• Withdistributedgeneration,distributedstorageandanetworkeddistributiongrid,energyflowonthedistributiongridbecomestwo-way.Thisrequiresadditionalinvestmentsintothedistributiongridandanewattentiontoelectricalprotection(rememberthescrewdriver).

Allofthiscostsmoneyandforcestheutilitiestoadoptnewtechnologiesatapacethathasnotbeenseeninahundredyears.Thenewtechnologyisexpensive,andrenewablegeneration,combinedwiththecostofstorage,increasesenergycosts.Thereisincreasingattentiontoreductionofoperatingcostsandoptimizationofassets.

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• Traditionallarge-scalegeneratorownandmaintaincoal,naturalgas,nuclear,hydro,windandsolarplantsconnectedtotransmissionlines. Thosearelargeplants- typicallyhundredsofmegawatts.

• Transmittersownandmaintaintransmissionlines- thelargesteeltowersseengoingfromlargegeneratorstocities.Thosetypicallyrunat120,000voltsandmore,uptoover1,000,000voltsinsomecases.

• Distributorsownandmaintainthelocalinfrastructureofpolesandconduitsgoingtocustomersites.Thosetypicallyrunat1,200to70,000volts,usuallysteppeddownto600volts.480volts,240voltsor120voltsforconnectiontocustomers.

• Mostcustomersareconnectedtodistributors,althoughsomelargeindustrialfacilities(suchasaluminumsmelters)aredirectlyconnectedtotransmissionlines.

• Whilecustomersareconnectedtodistributors,theypurchaseelectricity fromanindependentretailerorfromtheretailarmofadistributor.

• Withcustomerinstallingdistributedgenerationontheirpremises,theysellbackpowertothemarket,oftenthroughaggregators.

• Retailersbuyelectricityfromgeneratorsinanenergymarket- likeastockexchange,butforelectricity.

• Bydefinition,theenergyproducedatanyinstantmustbeequaltotheenergytaken bycustomers,accountingforasmallpercentageoflossesintransmissionanddistribution.(Wearestartingtoseelarge-scalestorageoperators,whichmayactasbothconsumerandgenerator,dependingtheyarechargingorreleasingelectricity inthenetwork.)Thiscriticalbalanceismaintainedbythesystemoperatorthatdirect generatorstoproducemoreorelesstomatchload;insomecase,thesystemoperatorwillalsodirectdistributorstoshedload(customers)ifgenerationortransmissionisinsufficienttomeet thedemand.

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• Distributorsoperateinadefinedterritory,oftencorrespondingtoacity,astateoraprovince,wheretheyarethesoleprovider– thankfully,astherewouldotherwisebemultiplelinesofpolesalongroads.Retailisoftenacompetitiveindustry,asthereisnostructuralbarriertohavingmultipleplayers.

• Itispossibletohavemultipletransmissioncompaniesoperatinginthesameterritory,eachowingoneorafewtransmissionlines.Systemoperatorsaremonopoliesoveraterritory,andtheyhavetomaintainindependence.Theyare,ineffect,monopolies,althoughsystemoperatorsareoftengovernment- orindustry-owned.Theircostsarerechargedtothecustomerbase,directlyorindirectly.

• Largegeneratorsareinacompetitivebusiness,competinginanopenmarket,althoughdistributedgenerators,whicharemuchsmaller,usuallybenefitsfromratessetbyaregulatororagovernment.

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Whereutilitiesareallowedtospendmoneyisfirstandforemostapolicyissue– notaregulatoryone,notanoperationone.Argumentsbasedonthecostofoutagesmayresonatewithpolicymakers,includingSmartCitystakeholders,becauseofpublicpressureorimpactontheeconomyatlarge.However,theseargumentsdonotresonatewithregulatoryagents(whofollowpolicies)norwithutilities(whodonothavecustomeroutagecostsintheirfinancialstatements. Individualusersmayormaynotknowtheirspecificcostsrelatedtooutages,butbroadoutagecostassessmentswillnotaffectthem.

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Regulated companieslookattheirbusinessupside-downincomparisontocompaniesoperatinginacompetitive,freemarket.

Regulatedcompaniestakealltheircosts(operatingexpenses,depreciationonassets,taxes,evenallowedreturnontheirinvestments)andthisisdeemedequaltotherevenuesthattheyareallowedtorecoverfromtheirsubscribers(clients).Thisiscalledrevenuerequirementorrequiredrevenues.Requiredrevenuesarethendividedbytheenergytobeprovided(inkWh)tocomeupwithaprice(in¢/kWh).Inpractice,differentclassesofsubscribersgetdifferentrates,butthetotalhastobeequaltorevenuesrequirements.

Ifthereisasignificantvariancebetweentheprojectedrevenuesandtheactualrevenues,adjustmentsaremadeinsubsequentyears.

Consequences:• LoweringOpExmeansthatrequiredrevenueswillbeloweredtocompensate,butgrossincome

remainsunaffected.• Newinvestmentsmeanalargerassetbase,onwhichtheshareholdersareallowedtoclaima

return,meaningthatgrossincomewillbehigher.

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