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MODERN GRID S T R A T E G Y 2030 Distributed Electricity Environment - independent, sustainable, and sassy International Student Energy Summit Presented by Steve Pullins, Modern Grid Team June 2009 Funded by the U.S. Department of Energy, Office of Electricity Delivery and Energy Reliability Conducted by the National Energy Technology Laboratory

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MODERN GRIDS T R A T E G Y

2030 Distributed Electricity Environment - independent, sustainable, and sassy

International Student Energy SummitPresented by Steve Pullins, Modern Grid TeamJune 2009

Funded by the U.S. Department of Energy, Office of Electricity Delivery and Energy Reliability

Conducted by the National Energy Technology Laboratory

Office of Electricity Delivery and Energy

Reliability

MODERN GRIDS T R A T E G Y

2Powering the 21st Century Economy

This material is based upon work supported by the Department of Energy under Award Number DE-AC26-04NT41817

This presentation was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.

Office of Electricity Delivery and Energy

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MODERN GRIDS T R A T E G Y

3Powering the 21st Century Economy

“A little revolution now and then is a good thing.”

- Thomas Jefferson, 1787

Smart Grid video

Office of Electricity Delivery and Energy

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4Powering the 21st Century Economy

Stressing the System - Change

DistributionNetwork

Transmission NetworkBaseload

PowerPeaking Power

Need for Demand Response (DR)

Variable Power from Wind / Solar Farms

50%

30% Continued geo- growth in urban / suburban areas

Small WindSolar

DGPHEV / EV

Continued increase in energy intensity (kwh/capita)

Changeover to more and more digital loads

Prices increasing, in some regions faster than gasoline at the pump

Consumer choices

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5Powering the 21st Century Economy

Result – Sea Change in the Network

Consumer engagement with resources to solve power issues locallyTwo-way power flow in DistributionAs prices increase, local renewables will increase in residential, commercial, and industrialImperative to transform from passive to active control in DistributionNew ways for Distribution to become a Transmission resource

Office of Electricity Delivery and Energy

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MODERN GRIDS T R A T E G Y

6Powering the 21st Century Economy

Investment Winners

Technologies that enable two-way power flow controlTechnologies that ease the consumer integration to grid operationsTechnologies that accommodate, offset, or manage the exponential operational complexity comingTechnologies and strategies that enable safely, operating closer to design limitsTechnologies that enable better, cheaper sensing of all the aboveBroadband, secure, robust, wireless communications infrastructure for all the above

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MODERN GRIDS T R A T E G Y

7Powering the 21st Century Economy 7

Smart Grid Characteristics

The Smart Grid is “transactive” and will:

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

Office of Electricity Delivery and Energy

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MODERN GRIDS T R A T E G Y

8Powering the 21st Century Economy

Under the “Business As Usual” approach over the next 20 years, the U.S. electric industry will spend more than $5 trillion on fuel, capital construction, and consumer business losses.

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MODERN GRIDS T R A T E G Y

9Powering the 21st Century Economy

2009 Electric Grid ….. and then?

500 wind parks50 solar parks 5,000 distributed wind

5,000 utility solar

2 M architectural wind5 M building solar

25 M residential solar

1 M PHEV/PEV10 M PHEV/PEV

100 M PHEV/PEV

100,000 Buildings as PP

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10Powering the 21st Century Economy

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2009 Generation Fleet

Average Capacity Factor by Type

47% fleet avg

Source: EIA Electric Power Annual, Jan 2009

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11Powering the 21st Century Economy

2030 Electric Grid – One Scenario

A much more efficient system with a lower carbon footprint than 2009.

Office of Electricity Delivery and Energy

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12Powering the 21st Century Economy

2030 Generation Fleet

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Average Capacity Factor by Type

60% fleet avg

A much more efficient system with a lower carbon footprint than 2009.

Office of Electricity Delivery and Energy

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MODERN GRIDS T R A T E G Y

13Powering the 21st Century Economy

TRANSFORMING THE GRID

McAdam’s 2nd Theorem: Nothing is impossible which is currently taking place.

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14Powering the 21st Century Economy

Denmark Changed in Two Decades

Source: Danish Energy Center

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15Powering the 21st Century Economy

Denmark DG Penetration and Cell Structure

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16Powering the 21st Century Economy

Denmark Energy Contribution

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17Powering the 21st Century Economy

WHERE DOES THIS LEAD?

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18Powering the 21st Century Economy

Challenge Ahead

Revamping the operating paradigm and cultureImperative for different policy and regulationChange from physically-centric technology to information-centric technologyEducation of everyoneDifferent decision paradigm on capital resources with limited capitalA different knowledge worker in the future marginalizing today’s corporate knowledge

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19Powering the 21st Century Economy

Who Will Serve?

Industry Staff TodayElectro-Mechanical controlsLarge power plantsHigh voltage transmissionConstruction Fossil and nuclear technologiesHome grown applicationsRegulated rate making

Industry Staff TomorrowDigital controls and web servicesIntegration and interoperability of multiple systemsPeer-to-peer and agent communitiesWind and solar technologiesExplosion of applicationsFlexible and complex rate structures

Opportunity for entry and creativity.

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Conclusion

A distributed electricity environment will: Support energy independenceLower the carbon footprintSupport a better sustainable business climateCreate flexibility and new businesses

The change will be radical, revolutionary, and necessary for economic survivalInformation, innovation, and integration will rule the industryThe next 20 years will be fun!

Office of Electricity Delivery and Energy

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MODERN GRIDS T R A T E G Y

21Powering the 21st Century Economy 21

For More Information

For additional Information, contact

Modern Grid Strategy Team

http://www.netl.doe.gov/moderngrid

304‐599‐4273 x101

Links:The Modern Grid StrategySmart Grid NewsletterEPRI IntelligridGalvin Electricity InitiativeGridWise AllianceGridWise Architecture CouncilEuropean SmartGridTechnology Platform

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