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    Modern Grid Initiative (MGI)www.themoderngrid.org

    Steven W. Pullins, Team LeaderRDS / SAIC

    25 May 2006

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    Problems and Needs

    Robust trends Reliability failures

    Generation mix movement Market movement GDP losses 44% premium on electricity paid

    by consumers

    Cannot get over the deployment hump Renewables growth 12M DG poised for grid influence

    Grid divorce

    a response, not control, scenario

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    Electric Infrastructure Growing Crisis?

    Transmission problems rocketed when generation additions outdistanced transmission additions.

    3

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    Generating Nodes on the Grid

    Change in Generation Mix Connected to the Grid

    0

    5000

    10000

    15000

    20000

    25000

    30000

    35000

    40000

    1992

    1994

    1996

    1998

    2000

    2002

    2004

    2006

    2008

    2010

    2012

    2014

    2016

    2018

    2020

    2022

    2024

    2026

    2028

    2030

    Year

    Numbe

    rofUnits

    Small DG / Renew ables (0.1-19MW)

    Midsize Hydro / Gas / Duel

    Fuel (20-99MW)

    Large Fossil / Nuclear

    (>100MW)

    Exponential increase

    4

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    Electricity Market Paradigm Shift

    5

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    Annual Business Losses from Grid Problems

    $0.2B - $2B

    $2B - $4B

    $4B - $7B

    $7B - $12B

    $18.5B

    Primen Study: $150B annually for power outages and quality issues

    6

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    Do we have Pilot-itis?

    US Substation / Distribution Automation Projects in Utilities

    0

    100

    200

    300

    400

    500

    600

    1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

    Numbe

    rofProjects

    Pilot Projects

    Deployment Projects

    Develops

    technology

    Develops

    real value

    Example:

    Pilot = 25% deployment into the field.

    7

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    Power Industry Loss of Skills and Experience

    Utility downsizing has reduced senior staff

    Experienced staff in the power industry is aging

    Enrollment in power engineering at universities issmall

    Complexity of modern grid requires skills in

    advanced power system and IT Perceived value of technical skills has been

    reduced over the past 15 years

    Fundamental understanding of the power systemshas been replaced by advancements intechnology

    8

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    Technical Challenges of Current Practices

    Very little industry experience in thesystems integration of advanced

    technologies into the grid; certainly notsuites of advanced technologies workingtogether

    Virtually no experience with widedeployment issues for new technologies

    No industry experience with hightechnology transformations

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    Project objectives Advance a national effort a partnership

    among utilities, consumers, academia,

    manufacturers, National Labs, regulators,and policy makers to improve the nationalgrid in a way to support the 21st century US

    economy.

    Enable the vision and process to give the

    nation sufficient experience with advancedtechnology integration to generate a self-sustaining transformation.

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    Tomorrows Modern Grid

    11

    Systems Approach

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    Tomorrows Modern Grid

    Reliability Security

    Economics Quality Efficiency Environmentalquality

    Safety

    Key SuccessFactors Emergency

    Restoration Routine operations

    Optimization Systems planning

    Emergency Restoration Routine operations

    Optimization Systems planning

    Self-healing (detects, analyzes,

    responds & restores) Empowers and incorporates theconsumer

    Tolerant of a security attack Provides power quality needed by

    21st century users Accommodates a variety of

    generation options Fully enables electricity markets Optimizes asset use and

    minimizes O&M costs

    Self-healing (detects, analyzes,responds & restores)

    Empowers and incorporates theconsumer

    Tolerant of a security attack Provides power quality needed by

    21st century users Accommodates a variety of

    generation options Fully enables electricity markets Optimizes asset use and

    minimizes O&M costs

    Integrated communications across the grid Advanced control methodologies

    Sensing, metering, and measurement Advanced grid components Decision support & human interfaces

    Integrated communications across the grid Advanced control methodologies

    Sensing, metering, and measurement Advanced grid components Decision support & human interfaces

    Congestion costs Massive blackout probability SAIFI

    Restoration time CAIDI Peak to average load ratio Capacity use

    Congestion costs Massive blackout probability SAIFI

    Restoration time CAIDI Peak to average load ratio Capacity use

    12

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    Integrating Key Technologies

    Perform gapanalysis to identifytechnology needs

    Create a regionalintegrated advanced

    key technologiesprogram

    Develop broadstake-holder support

    for deploying keytechnologies

    Creatingthe

    moderngrid

    13

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    Life-cycle Project Budget by FY

    $12,000M/yr(deployment)

    $3M/yr(FY13-14 only)

    13-30

    $30M/yr$20M/yr08-12

    $4.5M$5.3M07

    ~$2.1M$4.1M06

    $0.2M$0.4M05

    Private Cost ShareDOE NETL BudgetFY

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    Life-cycle Project Budget by Major Milestones

    ~$30.0M$0.2M$18.0M

    $0.6M

    $1.2M

    Concept DevDFT

    Stakeholder Dev

    Program Ops

    08+

    ~$4.5M$0.2M$4.4M

    $0.3M

    $0.4M

    Concept DevDFT

    Stakeholder Dev

    Program Dev

    07

    ~$2.1M$0.9M$1.9M

    $1.1M

    $0.2M

    Concept DevDFT

    Stakeholder Dev

    Program Dev

    06

    $0.2M$0.4MConcept Dev05

    Private Cost ShareDOE NETL BudgetMajor MilestoneFY

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    Prior-year Development

    Completed the systems analysis of thegrid and the required future state of the

    grid to support a 21st century economy. Completed initial industry vetting of the

    results (Initial Regional Summit hostedby GridWise Alliance and PJM, Sep05,25 attendees)

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    FY 2006 Performance & Results

    Released the Modern Grid v1.0 summary document (Nov05),Modern Grid Initiative v1.0 (Mar06), and Modern GridDescription v1.0 (Apr06)

    Held Modern Grid Regional Summits in the Southwest (Phoenix,

    Nov05, 60 attendees) and Northwest (Portland, Apr06, 80attendees)

    Launched The Modern Grid website (www.themoderngrid.org)(Apr06)

    Agreement in principal with AEP for a developmental field test(DFT) of an integrated suite of advanced grid technologies inWest Virginia delivering some of the principal characteristics ofthe Modern Grid (Apr06)

    Agreement in principal with Allegheny Power for a DFT of an

    integrated suite of advanced grid technologies in West Virginiadelivering some of the principal characteristics of the ModernGrid (May06)

    Alignment plan for other modern grid-related earmark projects(May06)

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    FY 2007 Plan

    Refine the Modern Grid v2.0 in preparation for functionalspecifications, the regional technology integrationprojects, and national adoption strategy ($200K)

    On-going stakeholder development and support throughTheModernGrid.org, the Characteristics and KeyTechnologies Working Groups, and stakeholder summits($300K)

    Completion of at least two public-private DFTs ($4,400K) Construct the Regional Advanced Technology Integration

    Project Program ($200K)

    Alignment of several earmark R&D projects with the

    Modern Grid Initiative ($200K)

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    Interactions & Collaborations

    (including cost-share info) Utility collaborations

    BPA ($0.1M FY06 cost-share), TVA, APS, SDG&E, ConEd, SCE, PGE, PSE,PJM, AEP (AIP ~$4M cost-share over 3 yrs), Allegheny Power (AIP ~$2.6Mcost-share over 3 yrs)

    Policy / Industry group collaborations GridWise Alliance, GridWise Architecture Council, EPRI Intelligrid, GridApps

    Consortium, PSERC, CEC, DRAM, Northeast Midwest Institute, NCSL,CERTS, Northwest Energy Coalition, WA PUD Association, WA CTED,Northwest Power and Conservation Council, Climate Solutions, NEETRAC,

    Galvin Initiative Academia and Labs WVU, Virginia Tech, CMU, Univ of Wisconsin, Arizona State Univ., Wastington

    State Univ., Portland State Univ., University of Texas, NETL, PNNL

    Industry firms collaboration

    RDS/SAIC ($0.2M FY05 cost-share), AREVA, Renz Consulting, JAMEnterprises, Enernex, Center for Smart Energy, Augusta Systems, Weller &Associates, ICF Consulting, S&C Electric, CTC, NGK, VRB Power Systems,PGNC Power, SEL, Celerity, ETAP Northwest, Capgemini, Intel

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    Technical and/or Economic Benefits Effective coordination of broad technology developments

    Wide-spread communication of definitive results

    Objective quantification of benefits

    Most efficient and cost-effective approach; enhancedlikelihood of deployment of the RIGHT technology suite

    Enhanced DOE leverage of non-DOE technology throughcollaboration

    Stimulation of new technology and process developmentsand deployments

    Credible basis for policies, standards, and incentives

    needed for modernizing the grid National program that includes clear regional benefits

    among multiple regions

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    Implementation Barriers & Strategies for Mitigation

    The fear of the unknown is worse than the horror ofthe present. former utility manager, heard May06

    Projects designed to directly address deploymentbarriers for host utilities, consumers, andregulators

    Clearly show physical, economic, technical, andcommercial viability (reduces uncertainty,increases predictability)

    Provide data, information, and analysis toinfluence policies (federal and state standards,economic incentive basis, and regulator support)

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    Contact InformationSteve Bossart

    Director,

    IntergovernmentalPrograms

    NETL

    Phone: 304-285-4643Email: [email protected]

    Steve Pullins

    MGI Team Leader

    RDS / SAICPhone: 865-300-7395

    Email: [email protected]