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Smart Grid: Issues for Regulators

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Smart Grid: Issues for Regulators Overview of Smart Grid: Issues for Regulators Chuck Goldman, Staff Scientist Electricity Markets and Policy Group Lawrence Berkeley National Laboratory Thailand Energy Regulatory Commission Workshop Lawrence Berkeley National Laboratory 1 Overview of Presentation • Defining a “Smart Grid” • Identify potential benefits of Smart Grid • Establish a vision of smart grid • Discuss several key Regulatory Issues 1) Metering choices and roll-out 2) Empowering the Customer a) Demand Response b) Rates and Pricing Policy 3) Smart Grid Implementation Strategy: Pilot programs or Transition Plan 3/5/2012 2 Smart Grid: Overview Smart Grid is System Integration The Smart Grid is a system of information and communication applications integrated with electric generation, transmission, distribution, and end use technologies which will : Promote [1] enable consumers to manage their usage and chose Customer Choice the most economically efficient offerings Improve [2] use automation and alternative resources to maintain Reliability delivery system reliability and stability, and Integrate [3] utilize the most environmentally gentle renewable, Renewables storage, and generation alternatives. 3/5/2012 3 Defining Smart Grid The Existing Utility Grid Centralized generation Power flows from the utility to the customer Periodic billing Bulk Power Bulk Power Power Customer Generation Transmission Distribution Devices Service Provider Energy Bill Cumulative Usage 3/5/2012 4 Defining Smart Grid Smart Grid – Adding Generation and Sensors Generation alternatives added throughout the system Power flows both directions between the utility and customer T&D system instrumented with sensors and switches Customers enabled with smart appliances Generation Generation Generation Alternatives Alternatives Alternatives Sensors Sensors Sensors Bulk Power Bulk Power Power Customer Generation Transmission Distribution Devices Service Provider Energy Bill Cumulative Usage 3/5/2012 5 Defining Smart Grid Smart Grid – Adding Communications and Information Information flows link all system elements Expert systems monitor/react to power flows, balance supply and demand Demand-side response requires automated transactions and coordination. Customer Authorized Usage and Billing Information Generation Generation Generation Alternatives Alternatives Alternatives Sensors Sensors Sensors Bulk Power Bulk Power Power Customer Generation Transmission Distribution Devices Service Provider Energy Bill Interval readings, voltage, outage and other information Price, Reliability, Event Signals, Historical Usage, Alerts, Other Information 3/5/2012 6 Defining Smart Grid Current Utility Utility in future Feature System with Smart Grid • Utility obligation to • Utility Obligation to connect all customers Obligation to Serve serve and serve some loads • Centralized • Distributed Generation Resources • Thermal dominates • Renewable emphasis Transmission / Two Way Power Flows One Way Power Flow Distribution Micro Grids Metering- Accumulated Usage Interval Measurement Measurement Rates (Pricing) Rates not Pricing Actionable Prices Customer Role Passive Active 3/5/2012 7 There are many visions * Regulator Utility Customer Cost Effectiveness, Cost Recovery Value, Privacy Economic Harmony, Equity ..expand the infrastructure for moving electricity from where it is generated to where it is needed ..accommodate distributed energy from local areas and, Make the grid ‘smart’ so that it can monitor and balance the load, ..capitalize on a massive national fleet of clean plug-in cars. * Al Gore's 'Unified Smart Grid' vision for repowering the USA - will it happen?, November 8, 2008, http://blogs.zdnet.com/collaboration/?p=160 3/5/2012 8 Smart Grid Vision: High Level Questions? 1. What problem(s) are you trying to solve: manage future costs, improve reliability, or integrate renewables ? 2. Which customer(s) are you trying to serve: society, end-user (rate payer), or the utility ? 3. How is the “Smart Grid” different from what you’ve already been doing ? 4. What are the smart grid costs and benefits of implementing Smart Grid? 5. Where do you start and what information do you need to proceed: [1] Pilot programs or [2] a Transition Plan ? 3/5/2012 9 Societal Benefits ? Claimed Societal Benefits Attribute Realistic ? 1 Dramatic reduction in tailpipe emissions 1-6 ? 2 Reduction in petroleum imports of >50% 1-5 ? 3 Reduction in peak loads – lowering prices for consumers 2, 3, 5 ? 4 Improved grid reliability 4-6 ? 5 Increased grid security 4-6 ? 6 Positive environmental impact 1-7 ? 7 Enable new products, services and competitive retail markets 3? 8 Anticipate and respond to system disturbances (self-heal) 4-6 ? 9 Perform continuous self-assessment, respond faster by 4-6 ? supplementing human operators. 10 Operate resiliently against attack and be less vulnerable to 4-6 ? natural disaster 1. PHEV’s 2. Advanced Metering 3. Dynamic Rates 4. Sensing 5. Automation 6. Expert Systems 7. New Technology Sources: Industry presentations and publications, see Slide #9. * Smart Grid Technical Advisory Project, Lawrence Berkeley National Laboratory 10 Consumer Benefits? Claimed Consumer Benefits Attribute Realistic ? 1 Equivalent of $1.00 per gallon for gasoline 1? Provide prices and opportunity to buy when KWh prices are low 2 2-7 ? and sell when high 3 Home back-up power and mobile resource 1, 2-7 ? Protecting against power losses and avoiding costly interruptions 4 2-7 ? and spoilage 5 Reducing the cost of electricity during peak power periods, 2-3 ? 6 Customer choice from products to services 2, 3 ? 7 Enhanced system reliability 2, 3 ? 8 Enable active participation by consumers 2, 3, 5, 7 ? 9 Power quality at different prices 2, 3, 5 ? Consumers access to information, control and options that allow 10 2, 3, 5, 7 ? them to better manage energy and environmental costs 1. PHEV’s 2. Advanced Metering 3. Dynamic Rates 4. Sensing 5. Automation 6. Expert Systems 7. New Technology Sources: Industry presentations and publications, see Slide #9. * Smart Grid Technical Advisory Project, Lawrence Berkeley National Laboratory 11 Utility Benefits? Claimed Utility System Benefits Attribute Realistic ? 1 Minimizing energy transmission losses 7? 2 Improving the efficiency of the electricity grid. 2-7 ? 3 Increased efficiency of power delivery 2-7 ? 4 Extended asset life ?? 5 Seamlessly integrate generation and storage options [2,3,5] [4-7] ? 6 Operate efficiently to improve load factors, lower system [2,3,5] [4-7] ? losses, and improve maintenance. Grid operators have new resource options to provide energy, 7 [2,3,5] [4-7] ? capacity and ancillary services 1. PHEV’s 2. Advanced Metering 3. Dynamic Rates 4. Sensing 5. Automation 6. Expert Systems 7. New Technology Sources 1. The Smart Grid – Benefits and Challenges, EEI Annual Convention, J.Miller – Modern Grid Strategy Team, June 16, 2008 2. What will the Smart Grid Look Like ?, A Vision for the Smart Grid., DOE Office of Electricity Delivery and Energy Reliability, June 2008. 3. Miscellaneous public reports, press releases, presentations, and private sources. * Smart Grid Technical Advisory Project, Lawrence Berkeley National Laboratory 12 Key Smart Grid Regulatory Issues ? 1) Metering choices and roll-out 2) Empowering the Customer a) Demand Response b) Rates and Pricing Policy c) Interoperability 3) Smart Grid Implementation Strategy: Pilot programs or Transition Plans 4) Improving Electric Power System Reliability? 5) Standards – Security and Privacy * Smart Grid Technical Advisory Project, Lawrence Berkeley National Laboratory 13 Why is metering important to Smart Grid ? 1. Electric meters provide an information link between the utility system (supply) and customer (demand) 2. Meters with integrated communication capabilities are expected to provide essential smart grid functions, including: More timely usage and status information to the utility to support customer service inquiries, expedite outage detection and restoration, and supplement distribution system volt/VAR management More timely usage information to the customer Support more informative rates, pricing, and demand response 3/5/2012 14 Smart Grid metering choices? Advanced Metering Traditional Meters Infrastructure 1 2 Standard kWh Remote Metering Advanced Meters Smart Meters Electromechanical [AMR] kWh Cumulative kWh Cumulative kW Interval kW Interval or TOU Enhanced Communication Communication Network Network HAN Gateway Remote Service Switch Remote Service Switch [connect / disconnect] [connect / disconnect] Meter Data Enhanced Meter Data Management Management 3/5/2012 15 Metering What is so smart about a “smart meter”? IEC Meters ANSI Meters 3/5/2012 16 Metering E. Service D. HAN Gateway Switch Transceiver (s) C. Utility Network A. Metrology Transceiver (measurement) B. Computing & Memory 3/5/2012 17 Differences Between Advanced and Smart Metering Advanced Meters: a utility-owned or leased communication system that links interval meters at each customer site with back-office meter data management, billing, and other utility application software. Smart Meters: Advanced meters with an integrated service switch, HAN gateway, enhanced two-way communications network, and enhanced back office Meter Data Management, Demand Response and Price signaling software. HAN [ home area network ] - communication system(s) within the customer facility that link consumer-owned communicating devices including thermostats, pool pumps, appliances, distributed generation sources, gateways, routers, entertainment devices,
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