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Smart Grid Deployment in Colorado: Challenges and Opportunities

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Smart Grid Deployment in Colorado: Challenges and Opportunities Smart Grid deployment in Colorado: Challenges and OppOrtunities University of Colorado at Boulder • June 2010 Kevin Doran, Frank Barnes, Puneet Pasrich, eds. Smart Grid Deployment in Colorado: Challenges and Opportunities University of Colorado at Boulder June 2010 Kevin Doran, Frank Barnes, Puneet Pasrich, eds. AcknOwledgements We would like to express our appreciation to Angela Cifor and Sophia Lenz for their invaluable editorial assistance in preparing this report. TABle OF COntents intrOduCtiOn i COnsOLIDATED reCOMMENDATIOns 1 1. OVerView OF STATE aCtiVities and seleCt INTERNATIOnal 15 smart grid aCtiVities: Angela Cifor, Sophia Lenz 2. SMART grid arChiteCture and an OVerView OF energY stORAGE, 33 grid STABilitY, and interOperaBilitY: Akash Shyam Agrawal, Frank Barnes, Ewald Fuchs, Purva Basvraj Adke, Puneet Pasrich 3. COnsumer priVaCY: Kevin Doran, Elias Quinn 42 4. COst reCOVerY: Adam Reed, Stephen Chesterton 53 5. COmmuniCATIOns arChiteCture: Amit Kumar Barik 59 6. ELECtriC transpORTATIOn: Puneet Pasrich, Dragan Masksimovic 62 7. GRID and CYBer seCuritY: Jose Ramon Santos, Arun Gerra 69 8. IMPACts OF smart grid On CO2 emissiOns: Rebecca Johnson 80 9. RETAIL priCing struCtures: Stephen Lawrence 86 10. WOrkFOrCe deVelOpment: Stephen Lawrence 90 11. COnsumer BehaViOr: Barbara Farhar, Robert J. Kemp 94 12. SAFetY issues in distriButed and RENEWABle 100 energY INSTALLATIOns: Aditya Kaushik 13. COlOradO emergenCY serViCes and energY assuranCe PLANNING: 102 Puneet Pasrich, Arun Gerra reFerenCes 107 intrOduCtiOn The U.S. electric grid—a staggeringly complex network of interconnected electric systems—is poised to undergo a major physical, operational and conceptual transformation with far reaching implications. By incorporating literally millions of new intelligent components into the electric grid that deploy advanced two-way communication networks with interoperable and open protocols, the “smart grid” heralds a fundamental change in the electricity paradigm that has prevailed for more than a century. The modernization of our nation’s electrical grid has the potential to make a significant impact on the way Americans use and conserve energy. Simply put, the smart grid is an upgrade of our century-old power grid to a new system which incorporates innovative technologies to enable the grid to deliver power in more optimal ways.1 Unlike the current grid, a fully-functioning smart grid will deliver electricity from suppliers to consumers using two-way digital technology and utilize an intelligent monitoring system to keep track of all electricity flowing in the system.2 The purposes of grid modernization are to ensure grid reliability, maintain affordability by giving consumers more control, resist both physical and cyber attacks, reinforce global competitiveness, accommodate renewable energy sources, reduce the nation’s carbon footprint, and introduce ground-breaking advancements into the electric industry.3 The smart grid will incorporate a variety of technologies and tools, allowing the grid to work far more efficiently. The U.S. Department of Energy has listed five fundamental technologies that will drive the smart grid; these technologies include: • Integrated communications, connecting components to open architecture for real-time information and control, allowing every part of the grid to both ‘talk’ and ‘listen.’ • Sensing and measurement technologies, to support faster and more accurate response, such as remote monitoring, time-of-use pricing and demand-side management. • Advanced components, to apply the latest research in superconductivity, storage, power electronics and diagnostics • Advanced control methods, to monitor essential components, enabling rapid diagnosis and precise solutions appropriate to any event. • Improved interfaces and decision support, to amplify human decision-making, transforming grid operators and managers into visionaries when it comes to seeing into their systems.4 Although grid modernization is simple in theory, smart grid deployment is a complex process. Thus, the success of the smart grid will require a comprehensive, multi-disciplinary understanding of the various industries and players whose actions must be coordinated to ensure its successful, efficient, and safe operation. The purpose of this White Paper is to provide the Colorado Smart Grid Task Force with a comprehensive survey of important smart grid topics, as well as probable and potential issues related to the deployment of the smart grid. The Paper consists of 13 chapters; each chapter endeavors to provide essential background information, key issues, and recommendations. 1 U.S. Department of Energy, “The Smart Grid: An Introduction,” available at http://www.oe.energy.gov/DocumentsandMedia/DOE_SG_Book_Sin- gle_Pages(1).pdf. 2 Id. 3 Id. 4 Id. Smart GriD Deployment in ColoraDo: Challenges and OppOrtunities i Three different reference styles exist throughout this White Paper. The contributing authors used their authorial discretion to select the reference style that best suited the nature of their chapter. The three styles include: footnotes, parenthetical citations, and superscript numbers which correlate to the numbered references that appear at the end of this Paper. COnsOLIDATED reCOMMENDATIOns1 Chapter 2. SMART GRID ARCHITECTURE AND AN OVERVIEW OF ENERGY STORAGE, GRID STABILITY, AND INTEROPERABILITY architecture Distributed Generation (DG) is an approach that employs small-scale technologies to produce electricity close to the end users of power. Today’s DG technologies often consist of renewable generators (i.e. solar PV, wind turbines, microturbines), and offer a number of potential benefits. In many cases, distributed generators can provide lower-cost electricity and higher power reliability and security with fewer environmental consequences than traditional bulk power generators. DG may provide the consumer with greater reliability, adequate power quality, and the possibility to participate in competitive electric power markets. DG also has the potential to mitigate overloaded transmission lines, control price fluctuations, strengthen energy security, and provide greater stability to the electricity grid. The primary applications for DG are: • Combined heat and power (cogeneration) plants increase the efficiency of on-site electricity generation by using the “waste heat” for existing thermal loads. These plants use a gas turbine or Stirling engine exhaust for a heating process. Many manufacturing facilities utilize cogeneration plants to supply electricity and heat to their electrical and thermal loads, respectively. Energy efficiency improvements of 20% are possible by capturing and harnessing this otherwise lost thermal energy. • Premium power production reduces frequency variations, voltage transients, surges, dips, or other disruptions. • Back-up power is used in the event of an outage, as a back-up to the electric grid. • Peak shaving is the use of DG during times when electric use and demand charges are high. • Low-cost energy is the use of distributed energy sources as primary power that is less expensive to produce locally than it is to purchase from electric utilities. DC Microgrids are another potential solution to reduce electric losses and to support distributed generation. The conventional electrical system in place today powers our electrical devices by AC mains. But as renewable technologies such as solar PV become more prevalent at a household level, DC microgrids could be a cheaper and more efficient alternative. PV cells and many small scale renewables generate low voltage DC power. Often these generators require power invertors with transformer efficiencies of about 92% to supply power to AC circuits, though the power may ultimately be delivered to a DC device. • A possible solution is to install a DC circuit network linking DC devices to DC power supplies. • Such networks have not yet proliferated because of the higher costs to install a parallel set of circuits in buildings which are served by DC power. Also, at the transmissions level, higher electrical losses are associated with transmitting a fixed amount of power as low voltage DC rather than high voltage AC. • The proliferation of low power electronic devices and the potential for LEDs to reduce electrical loads by up to a factor of 10 for indoor and outdoor lighting makes the use of localized DC microgrids practical. 1 Chapter 1 provides an overview and does not contain recommendations. Smart GriD Deployment in ColoraDo: Challenges and OppOrtunities 1 Renewable Energy Integration is the path towards sustainability but the present electric grid is not suitably equipped to handle the increased use of renewable-based electrical generation. A few solutions are recommended to tackle those issues include: • Dynamic scheduling of dispatchable generation. • Consolidation of balancing areas. • New operational practices and economic curtailments. • Better use of flexible energy storage, including dispatchable hydro and pumped storage. • Plug-in hybrid electric vehicles (PHEV) with smart-charge controllers that can manage power demand and supply to the grid. • Price-responsive load balancing, including Demand-Side Management (DSM) and Demand Response (DR). • Integration of wind forecasting into the control room. storage • Storage should be considered as an alternative to gas-fired generators as a means of coping with the variability of wind and solar energy. It may be both the low-cost solution as well as the most flexible tool to accelerate a large
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