sgo smart grid introduction

8/2/2019 SGO Smart Grid Introduction

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An Introduction

to the Smart Grid


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Envision a Smarter Electric GridNew strategies, communication and

information flows, technologies,transaction structures, and control of

the electricity system in order to:

Lower costs and give more

choices for consumers Improve system reliability and

efficiency

Modernize the energy

infrastructure Change the way humans

manage their energy footprint

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How Does the Electric Grid

Work Now?Traditional Power System: A One-Way Process

Source: EPRI 2011


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What is the Smart Grid? According to US Department of Energy (DOE):

Smart Grid is the term used for an electricity deliverysystem that is integrated with modern digital andinformation technology to provide improved reliability,security, efficiency and ultimately lower cost to the user.

According to Electric Power Research Institute (EPRI): The Smart Grid is envisioned to provide the enhancements

to ensure high levels of security, quality, reliability, andavailability (SQRA) of electric power; to improve economic

productivity and quality of life; and to minimizeenvironmental impact while maximizing safety andsustainability.


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Why All This Interest In Energy? Electricity is one of the largest and most capital-intensive sectors of the economy.

Total asset value is estimated to exceed $800 billion, with approximately 60% invested in power plants,30% in distribution facilities, and 10% in transmission facilities.

Annual electric revenuesthe Nations electric bill are about $247 billion

Paid by Americas 131 million electricity customers, which includes nearly every business and household.

There are more than 3,100 electric utilities and, there are nearly 2,100 non-utility power producers,

including both independent power companies and customer-owned distributed energy facilities.

There are a lot of risks we face by staying on the current path. Uncertain access to fuel resources cost may go out of control

Increasing harm to the atmosphere global warming may change the planet

Unpredictable power outages cascading grid failures disrupt commerce

Poor utilization of economic capital unnecessary cost increases for energy users

The concept of the base requirements for the smart grid is significantly more

expansive today than it was seven years ago - EPRI, 2011 technical report an investment level of between $17 and $24 billion per year will be required over the next 20 years.


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Challenges For Utilities The present electric power

delivery infrastructure was notdesigned to meet the needs of

a restructured electricity

marketplace.

the increasing demands of a highly

connected digital society

increased use of renewable powerproduction

High concentrations of significant

load and generation potential in

the commercial and residential

environment

vulnerability to various security

threats

In addition, investments inexpansion and maintenance are

constantly being challenged

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Why is Smart Grid Important?

Fundamental shift in how electricity isgenerated, distributed, and consumed.

Done right, and early, Smart Grid will be a

major new economic driver .

A major enabler of energy independence,

green house gas reduction and the shift away

from fossil fuels.

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Smart Grid Benefits Allows Direct Participation by Consumers.

The smart grid consumer is informed, modifying the way they use and purchase electricity.

Accommodates all Generation and Storage Options. The Smart Grid accommodates all generation and storage options.

Enables New Products, Services, and Markets. The Smart Grid enables a market system that provides cost-benefit tradeoffs to consumers.

Provides Power Quality for the Digital Economy. The Smart Grid provides reliable power that is relatively interruption-free.

Optimizes Asset Utilization and Operational Efficiently. The Smart Grid optimizes assets and operates efficiently.

Anticipates and Responds to System Disturbances (Self-heal).

Independently identifies and reacts to disturbances and performs mitigation efforts.

Operates Resiliently against Attack and Natural Disaster. The Smart Grid resists attacks on both the physical and cyber infrastructure.

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Source: EPRI 2011 Technical report


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Who Will Benefit? Utility customers

Local investors

Distributors of electricity and

their suppliers

Distributed generation suppliers

Labor unions Utilities

Industry

Entrepreneurs

EV manufacturers anddistributors

Universities

And Much MORE

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Smart Grid Attributes

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In addition to the obvious

benefits achieved by thisenhanced functionality it isnow obvious that othersubstantive benefits willaccrue once the Smart Grid isimplemented.

Chief among these is:1. reduction of peak demand,2. adoption of electric

vehicles,3. use of storage, and the

increased use ofrenewable powerproduction.


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Examples of Smart Grid

Economic Benefits Accelerated wind integration

More exportable energy/RECs

Exportable technology and business processes

Accelerated EVs as storage and ancillary services Reduced costs of EV operation and ownership

Exportable technology and business processes

Advanced commercial building DR, monitoring and

EE integration Reduced building operating costs

Exportable technology , business process and financing models

Attraction of researchers

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Elements of a Smarter Grid

Source: US DOE, Smart Grid System Report, 2009

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Critical Smart Grid Elements Networking capabilities to provide real-time

understanding of grid status Enables prompt correction of system disturbances, and to ensure

interoperability among grid elements

Meters, sensors, controls and monitoring technologies to allow for smart energy management, remote reading, fault detection,

and tailored pricing options

Electric vehicles, water heaters, appliances and

building energy management systems used to smooth system peaks, integrate wind and hydropower, and to

avoid cascading faults

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Smart Grid Things to Work On


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Its Time to Think Different

While the Smart Grid will utilize the latesttechnology to achieve its goals, it is not just

about technology.

Implementation of the Smart Grid will require acomplete rethinking of the public policy,

technology application, utility business models,

business processes and consumer behavior.

This is a real paradigm shift!

sgo smart grid introduction

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