Micro Generation and Customer Side Smart Grid Infrastructures Thomas M. Korman1, Ph.D., P.E., 1Professor, Construction Management Department, California Polytechnic State University, San Luis Obispo, CA 93407-0284 (805-270-5072, [email protected]) ABSTRACT: The implementation of the Smart Grid is gradually changing the nature of the electrical distribution system in the United States. With the Smart Grid, electrical power generation and distribution is becoming a two-way process between customers and generators. Being a bi-way process, there are two sides of the smart grid; the first being the utility side and second being the customer side. As the utility side smart grid is implemented, customers will have the opportunity to tailor their electrical power usage and reduce energy consumption costs through the customer side components of the smart grid. This includes energy management systems, micro-generation, and energy storage systems. This presents many new opportunities for electrical contractors to enhance existing systems in residential, commercial, and industrial facilities. This paper focuses on the wide range of energy management applications and electrical service provider interactions, including: On-site generation, Demand response, Electrical storage, Peak demand management, Forward power usage estimation, Load shedding capability estimation, End load monitoring (sub metering), Power quality of service monitoring, Utilization of historical energy consumption data, and Responsive energy control. INTRODUCTION Many consider traditional building systems to be ineffective at automatically adjusting to user needs because they require complex programming that is not flexible or adaptable with changing environments and different end users. Smart grid technologies, however, are designed to be adaptive and self-programing to the needs of the user. They have the potential to save energy consumers up to 15 to 30 percent in energy costs (Thompson 2012). Additional long term savings can be achieved through reduction in maintenance costs. Although the cost of these systems is currently greater than that of traditional systems, long term benefits for energy consumers can be substantial. With the help of electrical contractors, these sophisticated systems can help propel facilities into the future and set new standards of efficiency and usability. Owners and electrical contractors have the potential to see a greater return on investment of installed systems in terms of energy consumption. However, these systems are currently in their infancy and require the services of electrical contractors for successful implementation. Small scale smart grid operations have been installed by the United States military and serve as a proof-of-concept model for customer side smart grid installations in the civilian consumer market. These installations were first installed on experimental military bases using digital control systems that sought to balance electrical production, storage, and demand dynamics (Cacas 2013). The goal was to match correct production of power-to-load based on the demand at any point in time. IMPLEMENTATION OF THE SMART GRID: The implementation of the smart grid is essentially the digitization of electric power, where there is an increased ability to communicate and control power flow to improve the operating efficiency and reliability of the U.S. electric infrastructure. Essentially, it is an integration of the entire electrical energy supply chain, where there is no storage of electricity and supply and demand is constantly being balanced. The Department of Energy describes the smart grid as have the following five elements: • Integrated communications for real-time control • Monitoring to provide real-time system conditions • Control and monitoring capability to permit timely reaction to system changes and problems • Improved interfaces throughout the system and decision-support tools • Development and deployment of advanced transmission and distribution equipment and materials While this reference refers to the national grid, which includes a proposed new 765 kV backbone to work with the existing 765 kV system, the National Institute of Standards and Technology (NIST) defines the term “Smart Grid” as: “a modernization of the electricity delivery system so it monitors, protects and automatically optimizes the operation of its interconnected elements – from the central and distributed generator through the high-voltage transmission network and the distribution system, to industrial users and building automation systems, to energy storage installations and to end-use consumers and their thermostats, electric vehicles, appliances and other household devices.” This definition includes consumers and their role in the customer side of the smart grid. In this context, “thermostats, electric vehicles, appliances and other household devices” may be considered “utilization equipment”. The NIST Smart Grid Collaboration Site (http://www.nist.gov/smartgrid/twiki.cfm) lists a wide range of energy management applications and electrical service provider interactions, including: 1. On-site generation 2. Demand response 3. Electrical storage 4. Peak demand management 5. Forward power usage estimation 6. Load shedding capability estimation 7. End load monitoring (sub metering) 8. Power quality of service monitoring 9. Utilization of historical energy consumption data 10. Responsive energy control The implementation of the Smart Grid is gradually changing the nature of the electrical distribution system in the United States. With the Smart Grid, electrical power generation and distribution is becoming a two-way process between customers and generators. Being a bi-way process, there are two sides of the smart grid; the first being the utility side and second being the customer side. As the utility side smart grid is implemented, customers will have the opportunity to tailor their electrical power usage and reduce energy consumption costs through the customer side components of the smart grid. This includes energy management systems, micro- generation, and energy storage systems. This presents many new opportunities for electrical contractors to enhance existing systems in residential, commercial, and industrial facilities. Energy Generation Most utilities will not pay the same price for the electricity being distributed back into the grid as they charge for the electricity that they produce. The reason being that their cost for the electricity includes generation, transmission, maintenance, billing, etc. Therefore, it is more economical for a customer to consume the electricity they produce on-site and reduce the amount of electricity they purchase from a utility. A customer may not be able to consume all of the electricity that they produce at the time of generation, therefore, they have the option of storing the electricity for future consumption. If customers switch to a time of use pricing system, they can benefit by shifting non time-specific loads to operate during cheaper times, optimizing micro-generation systems for maximum output at high price times, and using on-site storage to supply the grid or the home at high price times. This includes all power distribution and control systems throughout a facility. There are several methods to generate electricity on site. This includes Photovoltaics, Built-In PV’s, Small Scale Wind Turbines, Micro-Hydro, Fuel Cells, and Combined Heat and Power Units. Regardless of the method utilized to generate electricity on the customer side there are four primary configurations: 1). battery-based off-grid systems, 2.) batteryless off-grid systems, 3.) battery-based on-grid systems, and 4.) batteryless on- grid systems. The selection depends on the site, budget, and energy needs. Battery-based off-grid systems are appropriate for smaller systems far from utility lines, where the peak load exceeds the peak generation on a regular basis. Batteryless off-grid systems are appropriate when the generating capacity is 2 kW or more. Because the system cannot store energy, considerable amounts of power are typically diverted Battery-based on-grid systems are very similar to their off-grid counterparts. The first of two primary differences is that excess energy can be sold to the grid for payment or credit. Batteryless on-grid systems use the grid as the “dump load,” sending excess energy back to the utility’s grid for their customers to use. These systems still may require a controller and dump load that only comes into play in the event of a utility outage. Batteryless grid-tied systems are considered to be the simplest and most reliable systems because they incorporate no batteries but have the grid available. Their drawback is the lack of backup for any utility outages. Photovoltaics (PV) and Built-In PV’s Photovoltaics (PV) is a method of generating electrical power by converting solar radiation into direct current (DC) electricity using semiconductors that exhibit a photovoltaic effect. Photovoltaic power generation employs solar panels comprising a number of cells containing a photovoltaic material. Photovoltaic arrays are often associated with buildings; either integrated into them, mounted on them, or mounted nearby on the ground. Arrays are most often retrofitted into existing buildings, usually mounted on top of the existing roof structure or on existing walls. Alternatively, an array can be located separate from a building but connected via cabling to supply power to the building. Building-integrated