Dr. Damir NovoselIEEE PES President Elect

President, Quanta Technology LLC

SMART GRID: What is it?Opportunities, and Challenges

May 15, 2015

U.S. Electric Grid

10,000 power plants 150,000 miles of high-voltage transmission lines and 375,000 towers Millions of miles of lower-voltage distribution lines and 30M poles More than 12,000 substations 40 to 60 years old grid requires transformation to a modern grid

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Uniquely critical infrastructure providing an "enabling function" National Academy of Engineers: Top engineering achievement affecting the quality of life

Old GridOld Grid

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How to develop more redundant, less vulnerable, and safe grid to meet the energy needs of society?

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Modern Grid

Electrical vehicles

Smart Grid uses advanced technologies to improve the

grid performance to meet the energy needs of society:• Engaging Consumers• Enhancing Efficiency• Ensuring Reliability• Enabling Renewables• Enabling Electric

Transportation

Grid Resilience: Challenges and Opportunities

Asset Management:Aging Infrastructure,Reliability, Grid Hardening – Weather and Security (Physical & Cyber)

Distributed Resources,Microgrids, ElectricVehicles

Demand Side Innovations Environmental Needs Plant Retirements and

Natural Gas Usage and Electrical Interdependency

Competitive Transmission

Complex grid

structures require

"Smart Grid" solutions

U.S. Outage Cost = $125 Billion/Year (DOE)

Equipment with gunshot damage

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Grid Transformation

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Smart Grid Investments• Transmission made smarter

with enhanced monitoring, protection & control

• Distribution transformed with automation & feeder optimization

• Demand response w/smart meters• Utility grade battery storage

Enabling microgrids adoption, "behind the meter“ distributed energy resources, and Electrical Vehicle requires a robust, hybrid T&D grid – Grid connection required for reliability and market reach

Smart Cities - How will electrical system help improve the livability, workability and sustainability

Geothermal

Biomass

MSW/LFG

Wind

Solar

Conventionalhydropower

2000 2010 2020 2030 2040

2012History Projections600

500

400

300

200

100

0

Non-Hydro Renewable Sources Grow 3.2% AnnuallyGame Changer – Solar Grows 7.5% Annually

Energy’s Critical Role in Smart Cities

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Clearly defined interconnection standards make it easy for residents to plug solar and wind into the grid.

Automation equipmentcan execute protection schemes in microseconds, minimizing outages.

Automated outage management detects disturbances and isolates areas before they create a cascading blackout.

The communications network that connects smart meters can often be used for other city purposes.

Visualization and analytics provide full situational awareness of what is going on with the electric power and gas systems.

Smart meters on everyhome and building giveresidents and the utilityinvaluable informationabout energy use, leadingto greater efficiency,improved reliability andcost savings.

Alternative energyreduces the need forfossil-fuel generation.

Electrical Vehicles (EVs) reduce fossil fuel consumption and increase energy independence. They can fortify the grid and increase the integration of renewable energy

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Source: ComEd

Building a Stronger, Smarter Grid

What is Required? Reinforcing the transmission system to provide access to renewable

resources

Transformation into a modern grid with coordinated planning and operations and use of automation and communications

Integrating new types of generation and new loads into the system• Distributed and variable generation resources, storage, microgrids• Demand response• Electrical vehicles

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Smart GridHighly Instrumented Advanced Sensors & Computing

Example:1,700 networked GPS-synchronized measurements, funded by DOE Smart Grid Investment Grants and private sector funds

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Source: North American Synchro- Phasor Initiative (NASPI)

What Value Can Smart Grid Offer? More resilient and more efficient grid: REDUCED OUTAGE

COST U.S. Outage Cost = $125B/Year (DOE)

Enhanced ability to ACCOMMODATE RENEWABLES, CUSTOMER GENERATION, MICROGRIDS

Ability to handle ELECTRIC TRANSPORTATION

NEW/BETTER SERVICES for consumers

Seamless DEMAND RESPONSE OPTIONS and SYSTEM EFFICIENCY

Opportunity to include CYBERSECURITY and DATA PRIVACY into architecture/ protocols

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How Congress Can Help

Support regulatory policies for coordinated & consistent approach in simultaneously managing assets: Aging infrastructure, Grid hardening, and System reliability

Development of regional planning and operational tools to more accurately forecast renewable resource, energy load, market price, and the availability of natural gas supply for generators

Developing sensors and tools to monitor, protect and control the grid and prevent wide-spread blackouts

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System Reliability & Capability

Sustainability & Business Goals

Capital/O&MBudgets

AgingInfrastructure

Grid Hardening

Holistic Asset Management

How Congress Can Help

Promote incentives for the development of new transmission

Continue supporting power electronics and control applications for renewable generation, electrical vehicles, and other equipment

Develop low-cost distributed energy storage technologies, microgrids, and demand response for integration of distributed generation

Develop and support new types of generation and new uses of electricity for fuel and usage diversity

Regulatory policy for connecting microgrids should support value creation and enable both incumbent utilities and energy service companies to develop it

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How Congress Can Help

Improve grid communication and interoperability through timely development of Smart Grid standards and roadmaps • Put selected standard development on a “fast-track”• Address cyber security issues• Develop an institutional infrastructure for testing and certification of products to

be compliant with Smart Grid standards Resolve technical and jurisdictional issues associated with equipment

and devices that operate across institutional, regulatory, and information architectural boundaries (e.g. grid spare parts)

Support energy sector workforce training programs, apprenticeships and best practices, including military veterans transition

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