Customer-centric Modern Grid

Paul De MartiniApril 18, 2017

Customers’ choices at home and work are shaping the need for and pace of grid

modernization

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Customer Expectations

• 80% of businesses view reducing electricity costs as essential to staying competitive.

• 74% of businesses say their customers are demanding that they offer more environmentally considerate solutions

• Nearly 75% of surveyed residential customers have “concerns about the impact electricity costs have on their monthly budgets, and 63% are interested in managing energy used in their homes”

• 68% of residential customers are confident smart homes will be as commonplace as smartphones within 10 years

Lower, stable costs + Improved reliability + Environmental

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Customer Expectation Trends

Customers want to help themselves

Customer is always on, always connected

Data-driven online world shaping personalization

Internet changing definition of what’s “Fast”

Greening of the Customer

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Customer Engagement Evolution

Customer engagement enabling greater customer control through information and choices, providing operational/market context for customers, collaboratively interacting with customers, and seeking opportunities to co-create value

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What is needed to enable Customers?

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Evolution of Customer & Distribution Grid3 Stages of Evolution as Customer Engagement & DER Adoption Expand

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Stage 2:

Stage 1:

Value

TimeSource: P. De Martini

Walk

Jog

Run

Walk, Jog, Run is the step-wise increase in functionality/methods/technology needed to move from Stage 1 to Stage 2. Or in the future from Stage 2 to Stage 3. No US state is at Stage 3 or going to Stage 3 right now. So, W/J/R should be considered as a sequential transition between Stage 1 (starting point) and Stage 2.

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Grid Evolution: One-way Road to Grid of Things

Source: IEEE

Distribution grid becoming a multi-directional network integrating millions of intelligent devices, DER and back-up generation

Operating such a system requires greater situational visibility and collaboration with customers and their services providers

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Grid Economics Are Evolving

Network EconomicsEconomies of Scale

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Grid as a Platform

• Grid as Back-up to customer self-sufficiency erodes grid value

• Business as usual enhances value through aging infrastructure replacement and operational efficiencies

• Grid as Platform expands value through enabling DER integration at scale and utilization as a system and grid resource

• Convergence model extends value through synergies between electric service and other essential networks such as water and transportation, often pursued in smart city initiatives

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Modern Grid Evolution

Objectives

Reliability, Safety & Operational

Efficiency

DER Integration DER Utilization

Cap

abili

tie

s

Market Operations

Grid Operations

Planning

Customer Needs & Policy drive grid capabilities and corresponding enabling business functionality and technology

Identify the core functions and related technologies as well as the applications

linked to specific policies/customer needs/value realization

New

Existing

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Modern Grid Components

Source: DOE Volume III Modern Distribution Grid Decision Guide (doe-dspx.org)

Architecture and interoperability applied to a complex system like the distribution grid enables proportional evolution

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Grid Mod Shaped By Customer Needs & Policy

• Grid Modernization should yield net benefits for all customers

• Investments should have line of sight to achieve desired outcomes

• Enhancements to complex system should evolve in a step-wise manner to manage risks (Walk/Jog/Run)

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