GE Energy Connections and Beyond John D. McDonald, P.E. Smart Grid Business Development Leader – North America Global Smart Grid Strategy Group

IEEE Fellow IEEE PES Substations Committee Chair 2001-2002 IEEE PES President 2006-2007 IEEE Division VII Director 2008-2009 IEEE-SA Board of Governors 2010-2011 IEEE PES Distinguished Lecturer CIGRE USNC VP, Technical Activities

EMMOS User Conference September 12, 2016

1 Key Industry/Societal Trends

2 Key Industry/Societal Trends

 Transitioning from Devices/Systems to Holistic Solutions  Success = Technology, Standards, Policy  Grid Flexibility + Self Healing + Reconfigurable  Electrical Power Distribution Infrastructures Resiliency  Big Data, the Cloud and Use of Social Media  Convergence of IT and OT to Support Enterprise Data Management

3 Smart Grid Concepts

4 Enabled A “Smarter” Grid Utility Managers ‘New Applications enabled by Additional Infrastructure’

Management “ Applications” Economic Energy Asset Demand Delivery Dispatch Optimization Optimization Optimization Optimization Enabled Consumers Control “How Power Flows” Gen & Trans Transmission Sensors Dist. Dist. Adv.Metering Mgt. Automation Mgt. Automation System

Heavy Metal Old Grid “ Generate & Deliver Power” Smart Grid Adds Thermal Sub Dist Voltage Renewable Generation Lines Stations Equipment Control Generation

Old Grid Smart Grid • You call when the power goes out. • Utility knows power is out and usually restores it automatically. • Utility pays whatever it takes to meet peak demand. • Utility suppresses demand at peak. Lowers cost. Reduces CAPEX. • Difficult to manage high Wind and Solar penetration • No problem with higher wind and solar penetration. • Cannot manage distributed generation safely. • Can manage distributed generation safely. • ~10% power loss in T&D • Power Loss reduced by 2+%… lowers emissions & customer bills.

5 Communications - Foundational

Enterprise Applications S m a r t G r i d Solutions Asset Distribution Demand

Optimization Optimization Optimization

Electrical & Geospatial Network Model Communications Infrastructure Field Sensors, Controllers and Meters

Distributed Renewable Generation & Storage Enabling technologiesEnabling Electrical Infrastructure

6 Reliable, Empowered, Clean, Efficient, Productive

Complex Event Processing, Analytics, and Visualization

Energy Smart Volt/VAR FDIR/FLSIR Monitor & Asset Meters Diagnostics Management Efficiency Control Energy Demand DERM Smart Microgrid Storage EV Charging Substation Response Automation Modular Design Smart Renewable Modular Workforce Design Applications Tools Appliances Generation Substations Management

Multiple Applications Platforms

Adapters

Electrical Business Process Domain Federated System Security Data Services Network Management Services Data Model Services

Data Data Model Services

Head End Systems

Enterprise Adapters

Backhaul

Plant System Substation Field Customer Area Security and Privacy and Security

Comms LAN WAN LAN LAN Networks

Customer Substations Distribution Generation Transmission Premise

Distributed Generation and Storage Physical Economical, Societal and Environmental Sustainability 7 Smart Grid Solutions

8 Smart Grid Holistic Solutions Shared Services & applications

Smart Meter Workforce & Demand Distribution Transmission Engineering Asset & Optimization Optimization Optimization Optimization Design Comms Optimization

Interoperability Framework

Transitioning from products/systems to holistic solutions

9 Optimized Solutions Smart Grid Technology Roadmap Systems Demand Office Internet Distributed Energy Resource Manager Distribution

Security Biz Design Mobile Transmission Asset Apps Tools FDIR IVVC OFR DPA DR WAMS Mgr Hist Services Asset

Workforce & Engr Design

Operations Bus – Software Services Infrastructure Enterprise Software Services Infra

Firewall EMS DMS OMS GIS FFA NMS Data MDMS Mobile Model Consumers Communications Internet Real-Time Communications Router Infrastructure Backhaul Smart Gateway Backhaul Comms Grid Base Comms

Devices

Smart

Meter Gen & HAN HAN Store

Backhaul Substations Residential, Comms Commercial & Industrial Smart Router Station Apps Controller Switches & Volt/VAR Utility

Local Protection Transformer Volt Reg, Breakers Devices Owned HMI Relays M&D LTC, Caps Smart Smart Smart Router Router Router Wired/Wireless Substation Communications

Microgrid Generation Other Reclosers & Volt Reg Generation PMU Controller & Storage IEDs & I/O Switches & Caps & Storage

10 Integration of Renewables

11 Distributed Generation Industry Challenge

Open circuit over- voltage due to unintentional islanding

Protection ratings not matched to fault 1.05 1.05 currents 1.04 V 1.03 Varying Fault Currents (pu)

due to DG 1.02 Feeder Voltage Feeder (pu)Voltage 1.01 1.00 Stress on Voltage 1.00 24 hours 7:00 AM 11:00 AM 3:00 PM 7:00 PM Regulation equipment Hour

12 Distributed Generation Integration Technology Solution Optimal dispatch of complex energy resources

U90 Microgrid Controller

Smart control system to optimize and manage generators, energy storage and loads featuring: • Optimal Dispatch • Supervisory Controls • Islanding/Tie-Line Controls 13 Impact of High Penetration of Rooftop Solar PV on the Distribution System

New Applications of Power Electronics (my Power Electronics magazine article – August 22, 2013 issue) • Substation Transformer On-line Tap Changer • Low Voltage Network Dynamic Grid Edge Controllers • Increased capability from Inverters

The Death Spiral (Intelligent Utility magazine article – November /December 2013 issue) • Impact of High Penetration of Rooftop Solar PV in the State of Queensland, Australia

14 Big Data, Analytics and Enterprise Data Management

15 Internet of Things (IoT)

Drive the next productivity revolution by connecting intelligent machines with people at work

The “II” Connects… Intelligent People Big Data + 1. Machines + 2. & Analytics 3. at Work Leverage technology & Combine the power of Connecting people any communication to cost- big data, big analytics, place, any way, and any effectively connect and industry physics time for intelligent machines operations

= A world that works better, faster, safer, cleaner and cheaper

Energy Global Energy The first 1% annual savings Value: Capex $1.9T/year equals $300B over 15 years

16 Analytics

Meter Insight Outage Insight Reliability Insight Renewables Insight Consumer Insight (in development) (in development) (in development) (in design) (in design)

• Revenue • Automated KPI • Predictive • PV load • Social media Protection data validation vegetation (dis)aggregatio integration • Power Quality • Dynamic KPI management n/ hotspot • Customer and Reliability dashboards • Asset health analysis Segmentation • Load • Outage Event analysis • Wind load • Customer Forecasting and Recorder • System health (dis)aggregatio Engagement Research • Planned outage analysis n and hotspot • Sentiment optimization • Lifecycle analysis Analysis • Predictive analysis and • EV penetration/ Outage portfolio impact analysis Analytics optimization • DER load • Accurate ETR orchestration

17 Enterprise Data Management Collecting data for Data Analytics

18 Smart Grid Standards Development and Interoperability

19 Example: Standards Framework National Institute of Standards and Technology (NIST)

… Smart Grid Conceptual Reference Model … Smart Grid Interoperability Panel Organizational Structure

20 NIST- Recognized Standard Application

Standards Release 1.0 AMI-SEC System Security Advanced metering infrastructure (AMI) and Smart Grid end-to-end Requirements security Following the April 28-29 Smart Grid Interoperability ANSI C12.19/MC1219 Revenue metering information model workshop, NIST deemed BACnet ANSI ASHRAE 135-2008/ISO Building automation that sufficient consensus 16484-5 has been achieved on 16 DNP3 Substation and feeder device automation initial standards IEC 60870-6 / TASE.2 Inter-control center communications On May 8, NIST announced IEC 61850 Substation automation and protection intention to recognize these standards following IEC 61968/61970 Application level energy management system interfaces 30 day comment period IEC 62351 Parts 1-8 Information security for power system control operations

IEEE C37.118 Phasor measurement unit (PMU) communications NIST’s announcement IEEE 1547 Physical and electrical interconnections between utility and recognized that some of distributed generation (DG) these standards will require further IEEE 1686-2007 Security for intelligent electronic devices (IEDs) development and many NERC CIP 002-009 Cyber security standards for the bulk power system additional standards will be needed. NIST Special Publication (SP) 800- Cyber security standards and guidelines for federal information 53, NIST SP 800-82 systems, including those for the bulk power system

Open Automated Demand Price responsive and direct load control NIST will recognize Response (Open ADR) additional standards as OpenHAN Home Area Network device communication, measurement, and consensus is achieved control ZigBee/HomePlug Smart Energy Home Area Network (HAN) Device Communications and Information Profile Model 21

Smart Grid Deployments Lessons Learned

22 Smart Grid Lessons Learned Technology: • Challenge: “Hype” versus “Reality” • Utility expectations were that basic SG solutions were “shovel–ready” • Reality - Component technology was not as mature as advertised when combined to create a Smart Grid Solution • In many cases components were field re-engineered or upgraded to meet objectives and expectations • Challenge: Integration / Interoperability • Integrating multiple supplier products to create a SG solution • Lesson Learned: adopt and insist on standards and open architecture methodology – drive for plug and play solutions • Test, Test, Test • Lesson Learned: Extensive lab testing for “SG Solutions” is mandatory prior to implementation – understand the capabilities • Re-do’s are expensive and time consuming!

23 Smart Grid Lessons Learned Implementation & Deployment: • Challenge: Coordinating multiple suppliers • Managing equipment, shipments & delivery – pieces and parts along with assembly required for implementation (e.g., radio, controller, AMI network, substation equipment with software) • Coordinating software functionality with multi-supplier hardware and AMI • Lesson Learned: Minimize niche suppliers – prefer alliance suppliers with strong engineering and solution teams • Challenge: Coordinating multiple internal departments • Managing Substation and Distribution Engineering, Protection and Control, Communications and Construction • Lesson Learned: Engage 1 Project Manager for each Smart Grid solution with multi-discipline authority • Prefer packaged solutions from fewer suppliers – minimize the finger-pointing

24 Smart Grid Lessons Learned Project Management: • Establish Program Management Office • Multiple Project Managers reporting to the Program Manager • Adhere to PM guidelines such as Communication, Status Reporting, Risk Management, etc. • Build an “A” team with project and technical members – there will be challenges to collectively solve • Establish Corporate Steering Committee • Key status meetings with Utility Executives and Alliance Suppliers • Escalation and Risk Mitigation in timely manner is critical • Build Strategic Alliances with Key Suppliers • Define, Engineer and Build the Smart Grid solutions collectively • Alliance Supplier provides “On-site” management and technical support

25 Smart Grid Lessons Learned Change Management: • Smart Grid solutions involve multiple stakeholders (actors) • Residential / Commercial customers are now a “Major Stakeholder” • For example: PCT’s, In-home devices, utility incentivized customer programs, 2-way communication with the Utility • Define and develop “Use-Cases” for each component of Smart Grid • Use-Cases provide – a scenario description, defines the benefits, actors, functional requirements, and business rules and assumptions • Lesson Learned: Use-cases form the basis for the benefits achieved, functional requirements, development, and training • Smart Grid actors require “Significant Training” on the operation and maintenance of the deployed system (i.e., Operations Center, Communications, Customer Call Center, Engineering, Field Crews, etc.)

26 Thank You!

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