Presentation Identifier (Title or Location), Month 00, 2008

West Virginia Smart Grid Implementation Plan Preliminary Results

Steve BossartDirector, Integrated Electric Power SystemsOffice of Systems Analysis and Planning

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The West Virginia Smart Grid Implementation Plan is the first state-wide Smart Grid strategy in the nation!

It is only the second publicly available Smart Grid strategy document.

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Smart Grid & West Virginia Connection

• This plan used the NETL Modern Grid Strategy (MGS) vision for the Smart Grid

• In June 2008, this NETL MGS vision became the Smart Grid vision for the nation

• Senator Byrd influenced Congress to fund the original research and vision development (2005-07)

• The MGS team in West Virginia has been at the center of the Smart Grid debate for the last 4 years

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Smart Grid Vision

Principal Characteristics of a Smart Grid:• Enable active participation by consumers• Accommodate all generation and storage options• Enable new products, services, and markets• Optimize asset utilization and operate efficiently• Provide power quality for the digital economy• Operate resiliently against attack and natural

disaster• Anticipate & respond to system disturbances (self-

heal)

Powering the 21st Century Economy

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Smart Grid Vision

Key Success Factors

Performance

Principal Characteristics

Key Technology Areas

Metrics

Enable active participation by consumers

Accommodate all generation and storage options Enable new products, services, and markets Provide power quality for the digital economy Optimize asset utilization and operate efficiently Anticipate & respond to system disturbances (self-heal) Operate resiliently against attack and natural disaster

Integrated communications Sensors and measurements Advanced control methods Advanced components Improved interface and decision

support

Reliable Secure Economic Efficient Environmentally

friendly Safe

Perform in relation to the KSFs

Metrics in relation to the KSFs

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West Virginia Smart Grid Implementation Plan

Powering the 21st Century Economy

• $540K project jointly funded through Attachment H process by NETL, RDS, Allegheny Power, AEP, State of West Virginia, WVU, and DOE OE

• Results will describe approach and value proposition of implementing Smart Grid in West Virginia

• Cost & benefit analysis comparing the state of current electricity grid and future Smart Grid in West Virginia

• Address the role of coal in Smart Grid• Support economic development in State of West Virginia• Only state-wide Smart Grid implementation plan • Establishes West Virginia and NETL as leader in Smart Grid• Only second Smart Grid study to be published

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Implementation Plan Process

Gap Analysis• Current State• Future State

Solutions Business Case

Implementation Plan

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WV Future State

Characteristic Smart Grid DescriptionEnable active participation by consumers

•AMI deployment completed in specific regions •DR in place with smart meters •consumers active in deploying smart appliances, PHEV, DG, and home area networks •activity with RTO underway to link to consumer •dynamic real time rate structures in place

Accommodate all generation and storage options

•New tariffs incent DER deployment •integrated operation of multiple DER devices and microgrids on a single feeder •central DER coordination at substation or higher system level

Enable new products, services, and markets

•Access to RTO markets available in specific regions •value of consumer involvement well understood, transactions occur among consumers, utilities, and RTO's in real time •AMI communications infrastructure can support multiple HAN applications •DR, DER and energy efficiency programs in place •transmission congestion eliminated

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WV Future State (cont.)

Characteristic Smart Grid DescriptionOptimize asset utilization and operate efficiently

•Regionally deployed health and condition sensors integrated with AMI and GIS to enable at least one of the following processes - system planning, condition based maintenance, outage management, system loss reduction, work management, customer service, engineering, •Modeling, simulation and visualization tools enable operators to perform "what if" analyses •Enterprise-wide level visualization system deployed and integrated with AMI, GIS, OMS, DA, DR, DER, work management, etc.

Provide power quality for the digital economy

•Minimally acceptable PQ levels for all customers established •PQ metrics established and performance trends tracked •Advanced technology deployments include: remote PQ Sensing, static VAr compensation, power electronic PQ devices, spike and harmonic filters, and PQ parks.

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WV Future State (cont.)Characteristic Smart Grid Description

Operate resiliently against attack and natural disaster

•AMI penetration growing, providing tool for more rapid service restoration •Service restoration faster where AMI deployed •regional advanced detection, diagnosis, and autonomous corrective action in place •cyber security standards are well defined and incorporated in new designs •more than half of consumers have back-up power •local micro-grids emerge

Anticipate & respond to system disturbances (self-heal)

•System Integrity Protective Systems (SIPS) ensure regional reliability, adaptive relaying deployed •system-wide controls installed to process extensive system real time data, including WAMS inputs, and take instantaneous actions when manual operator action would be too slow •DER and DR integrated with DA and feeder backup is underway •islanding services available to customers • all critical system assets are monitored in real time (SCADA fully deployed)

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Smart Grid Solutions for WVSolution Description

Advanced Metering Infrastructure (AMI)

All Residential, Commercial and Industrial Customers represented by 998,317 meters

IT Integration A CIS Upgrade to accommodate AMI and DR functionality & Outage Management

Demand Response (DR) The aggregated sum of 104 MW of DR from Residential, Commercial and Industrial Customers

Distribution Management System (DMS)

The automated fault clearing & restoration of service, circuit monitoring and control of the Distribution System to include 707 circuits of 1107 total circuits

Distributed Energy Resources (DER)

100MW of Base Generation, 800 MW of Peak Generation, 250 MW of Advanced Storage and 100 MW of Wind Resources all capable of being dispatched on demand

Transmission Systems Not used in this plan since there are transmission upgrades well underway

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Preliminary Business Case Results

• Still working on refining the business case, but in general terms……

• NPV Cost: $1.4B - $1.7B• NPV Benefits: yielding a 2:1 to 3.5:1 value• The team has taken many conservative approaches

to the calculation of benefits, and expect the actual results that WV will see several years from now, will be even greater.

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Benefits• Utilities

– Operational Metering & billing, outage & work force management, reduced energy losses, optimize asset utilization

– Asset Management System planning, maintenance

• Consumer– Reduced business loss, information access, energy

management, participate in DR programs, connection of DG and storage, participate in electricity markets, reduce transportation costs

• Societal – Downward pressure of electricity prices, reduced emissions,

economic development, improved reliability, improved grid security, revolutionize transportation sector, reduced dependence on foreign oil

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(may extend for AEP)

Implementation Plan Summary

2010 2011 20132012 2014 2015 2016 2017 2018 2019 2020

AMI

IT Integration

Demand Response

Distribution Mgmt System

Distributed Energy Resources

RD&D

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Development and Demonstration

• AMI Pilot – It exercises a small number of AMI meters from the chosen vendor using the Meter Data Management System (MDMS) in a minimally-integrated role. The pilot allows the utility to test the communication infrastructure, messaging, and data collection against requirements.

• Demand Response Pilot – A small number of load management Demand Resources are deployed and tested. The pilot allows the utility to test DR program rules, business rules for load management, economic and reliability message requests and their load management results, expected vs. actual load management results, in home device results, and participant behavioral patterns.

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Development and Demonstration (cont.)

• Distributed Energy Resource Pilot – The DER pilot allows the utility to test generation management (rather than load management) and occurs during a similar timeline in the overall DR and DER implementation solution schedule.

• Distribution Management System Pilot – With the DMS system, it is likely that several different devices and strategies will be used over time. The pilot is not anticipated to test everything, but rather provide a simple, baseline system that allows the DMS enterprise systems an opportunity for testing and experimentation.

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Conclusions

• There are gaps in technology, regulation, and consumer preparedness that are necessary to address to realize the benefits of the Smart Grid in WV.

• The five Smart Grid solutions presented working together will generate benefits to WV that far exceed the cost of implementation and operations of these solutions.

• The implementation of a Smart Grid in WV will take about 8 years.

• It is prudent to begin immediately with pilot projects for AMI, DR, DER, and DMS to reduce the risks of the larger state-wide deployment.

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How This Project Will Be Used

• Basis for discussion within the state– Division of Energy– Public Service Commission– Economic Development– Utilities– Consumer and environmental groups– Legislators

• Reference for policy change• Reference for business case development in rate-

making and creation of incentives for change

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Contact Information

For additional information, contactModern Grid Strategy Team

http://www.netl.doe.gov/moderngrid/304-599-4273 x101

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