New York Power AuthorityResearch and Technology Development

Israel Electric Company – ישראל החשמל חברת

אביב July 9, 2014 ,תל

Alan Ettlinger, Manager R&TD(011)+1-914-287-3068; Alan.Ettlinger@nypa.gov

•New York Power Authority (NYPA)•New York Independent System Operator (NYISO)

•New York State Research & Development Authority (NYSRDA)

•NYPAs Strategic Initiative•Smart Generation & Transmission

•AGILe

•NYPAs Research & Technology Development•Opportunities for cooperation with Israeli developers

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New York Power AuthorityToday’s Discussion

•Established by the NY State Legislature in 1931.

•Largest state public electric utility in the United States.

•Wholesale power supplier throughout New York State and neighboring states as required by law.

•Provides, with generation and power purchases, about 25% of New York State’s electricity.

•2013 Generation: 27.9 million MWh; 70% hydro; 30% gas/oil

•Transmission lines: 1,400+ circuit miles; 115kV, 230kV, 345kV & 765kV

•No Distribution System

•Non-profit energy corporation, does not use tax revenues or state credits, finances projects through bond sales and cash from operations

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New York Power AuthorityHistory and Charter

North American Electric Reliability Corporation (NERC)

– Independent, not-for-profit organization with mission to improve the reliability and security of the bulk power system in the U.S., Canada and part of Mexico

– Established in response to the 1965 blackout

– Compliance with NERC Reliability Standards became mandatory and enforceable in the U.S. in 2007

Northeast Power Coordinating Council (NPCC) Includes New York, New England, Ontario, Québec, and the Maritimes

Formed as voluntary, not-for-profit, regional reliability organization in 1966

NYISO

North American Electric Reliability CorporationNERC

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New York Independent System Operator (NYISO) Not-for-profit corporation responsible for operating the state’s bulk electricity grid

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765 kV Transmission ~155 circuit miles

345 kV Transmission

~928 circuit miles

230 kV Transmission

~338 circuit miles

115 kV Transmission

~35 circuit miles

Total Transmission

~1,456 circuit miles

Bulk Transmission Substations

21 substations

Portion of Bulk NYS Grid

~13% (>115kV)

~34% (>230kV)

New York Power AuthorityNYPAs Transmission System

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Niagara Power Project ~2,675 MW

St. Lawrence Power Project

~800 MW

Blenheim-Gilboa

~1,160 MW

Flynn Power Plant

~167 MW

Astoria CC Plant

~500 MW

Small Hydro Plants

~83 MW

Small Clean Power Plants

~461 MW

New York Power AuthorityNYPAs Generation

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New York Power AuthorityNYPAs Generation

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• The Energy Control Center (ECC) at Marcy coordinates NYPA transmission and generation with the NYISO and other TO’s (Transmission Operators)

• The transmission line maintenance and training facility is at the Clark Energy Center (CEC) in Utica, NY in Upstate NY

New York Power AuthorityClark Energy Center

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•The New York State Energy Research and Development Authority (NYSERDA) is a public benefit corporation established in 1975 to offerobjective information and analysis, innovative programs, technical expertise and funding to help New Yorkers increase energyefficiency, save money, use renewable energy, and reduce reliance on fossil fuels. http://www.nyserda.ny.gov/

•NYSERDA is focused on:•Energy Efficiency and Renewable Programs•Energy Innovation and Business Development•Energy Education and Workforce Development•Energy and the Environment•Energy Data, Planning and Policy

New York State Research & Development Authority

NYSERDA

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New York State Research & Development AuthorityProject Example – Settingless Protection System

Funding Category: Product Development

NYSERDA Funding: $1,838,183

NYPA Funding: $ 392,195

Project Status: Ongoing

Project Summary: The objective of this task is to demonstrate settingless protection, which is a

protection scheme that does not require settings or the settings are simple and the need to coordinate

with other protective devices has been removed. The proposed settingless protection scheme is based

on continuously monitoring terminal voltages and currents of the component and monitoring other

possible quantities such as tap setting, temperature, etc. as appropriate for the component under

protection. The monitored data are utilized in a dynamic state estimation that continuously provides the

dynamic state of the component by fitting the data to the basic model equations of the device under

protection. The dynamic state is then used to determine the health of the component. Tripping or no

tripping is decided on the basis of the health of the component. The goal is to reduce the cost of

protection and increase protection reliability.

Project Roles: A prototype setting-less protective relay has been developed and tested at the Georgia

Tech laboratory. It requires the model of the protection zone (under protection) and the number and

type of measurements available. Georgia Tech proposes to implement and field evaluate the setting-

less protective relay on two protection zones of the NYPA system. Most likely the protection zones will

be: (a) the 765kV/345kV Autobank at Marcy substations and (b) the 765 kV transmission line between

Marcy and Massena substations. NYSERDA is funding the project

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Conditions in New York State are expected to mirror the changes in global energy markets,

resulting in a shift toward customer empowerment, decentralized energy generation and

greater use of data in the operation and maintenance of the transmission network. The key

uncertainty for energy companies everywhere is the precise form and timing these changes will take.

NYPAs Strategic InitiativeStrategic Vision 2014 - 2019

“Our vision is a Power Authority that enables a

thriving New York state through the provision of

sustainable, affordable energy, stewardship of

the state’s natural resources, and leadership in

innovative technologies and energy efficiency

services.”

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• Customer Solutions - Expand NYPA’s customer solution offerings through the provision of a seamless bundle of services aligned to customer needs.

• Asset Management - Make the generation and transmission system more flexible, resilient, and agile utilizing existing and emerging technologies.

• Smart Generation and Transmission - Develop an asset management capability and process to improve the efficiency and effectiveness of our O&M and capital investments.

• Workforce Planning - Develop and implement a strategic workforce plan that ensures that NYPA attracts, retains, and develops employees with the skills competencies to achieve our goals.

• Knowledge Management - Establish an enterprise wide system to capture, organize, distribute, and adopt NYPA intellectual assets.

• Process Excellence - Create a business process improvement function to increase productivity; reduce cost, and minimize environmental impact.

NYPAs Strategic InitiativeStrategic Themes

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Objective: To develop and implement the next-generation transmission grid through the deployment of advanced technologies on the bulk transmission system. In pursuing this aim, we will explore options to modernize the grid, including acquisition of real-time, accurate data from sources in the field, implementation of enhanced system monitoring and data analysis tools, and development of advanced control software to enable automated responses.

…grid operations must embed much more intelligence in the system to provide real-time insight on rapidly changing conditions in order to secure ongoing grid stability and reliability…

NYPAs Strategic InitiativeStrategic Theme – Smart Generation & Transmission

Initial Steps:• Establish the Advanced Grid Innovation Lab for Energy (R&D Lab) project.• Install sensors and software for NYPA’s generation and transmission via R&D

projects for NYPA Operations. • Maintain the on-going collaboration with the Electric Power Research Institute

(EPRI) related to emerging techniques and technologies.

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NYPAs Strategic InitiativeSmart Generation & Transmission - AGILe

Building on the past…

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Preparing for the future….

NYPAs Strategic InitiativeSmart Generation & Transmission - AGILe

Advanced Grid Innovation Labfor Energy (AGILe)

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NYPAs Strategic InitiativeSmart Generation & Transmission - AGILe

AGILe

▪ Lab for world class power systems engineering research

▪ Collaborative industry R&D and commercialization

▪ College of Nanoscale Science & Engineering (CNSE) is

AGILe’s inspiration

Resource

Need and

Timing

▪ NYPA to invest $35 million

▪ Phase I – New York transmission smart grid

▪ Phase II – Distribution system and integrated smart grid

▪ Product commercialization partnerships with industry

Benefits

▪ Reliability

▪ Economic Development

▪ Environmental

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NYPAs Strategic InitiativeSmart Generation & Transmission - AGILe

Why

AGILe?

▪ Challenge: Grid must be modernized to allow for future “Integrated

Grid” with distributed and variable energy resources

▪ Opportunity: Establish New York as the epicenter of grid

modernization

▪ Future: Capture economic benefits of leadership in the global smart

grid market estimated at $36B in 2013 and $60B by 2020

Utilities and

ISO / RTOs

Corporations,

Startups

Universities

Government /

Regulatory

Five Key

Focus

Areas

Confidential – Proprietary and Predecisional

AGILe

Vision

Collaborative research and development lab

Multi-partnership model

Integrated grid concept

Powerful simulation and analysis capabilities

Leverage expertise, skills, and talent across the partners

Unique capability to model today’s grid to prepare simulations to

enable tomorrow’s Integrated, Resilient, and Connected Grid

NYPAs Strategic InitiativeSmart Generation & Transmission - AGILe

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Market Geography

Global

National

Northeast

NY

NYPA

Electric System Element

Transmission

Distribution

Beyond the Meter

Real-Time Cyber- Automation Sensors Power

Simulation Security Electronics

Scope of Services

Solid

Growth

Potential

Phase I: NY transmission system and real-time data simulation

Three growth vectors – geography, scope, system component

Phase II: Distribution system and working with private industry

Phase I

Phase II

NYPAs Strategic InitiativeAGILe – Growth – Geography, Scope & System Element

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▪ Integrate large-scale renewables and demand response

Reliability

Confidential – Proprietary and Predecisional

▪ Lower chance of blackouts

▪ 2003 blackout cost between $6 and $10 billion

Lower

Congestion

▪ Congestion in three transmission corridors in New York cost

$500 million in 2013 according to the NYISO CARIS Report

Reserve

Margin

▪ 15% reserve margin costs ≈$500 million annually

▪ Enhanced analytical and control capabilities could provide

savings

Economic

Development

▪ World class research facilities help create “cluster” of capability

that attracts other companies and researchers to locate nearby

Innovation▪ Leading edge research support for transmission and distribution

system operation improvements

Environment

Source: NYPA estimate

Source: ICF Consulting

NYPAs Strategic InitiativeAGILe – Expected Long Term Benefits

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Confidential – Proprietary and Predecisional

Phase I -

R&D

Transmission

Capability

NYPA funds, owns and operates

Developed with EPRI

Research Advisory Board

Staffing – 10

20,000 square feet

Phase II –

Distribution

Commercial

Product

Development

Research agenda driven by Advisory Board

Professional management team

Choice of different ownership structures

Strong emphasis on commercialization

Contract work with private companies

Opportunity to flourish like CNSE

NYPAs Strategic InitiativeAGILe – Development Phases I and II

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Confidential – Proprietary and Predecisional

NYPA Funds

Initial Cost

NYPA to provide $35 million to develop lab

$19 million – modeling hardware, software, licensing

NYPA to seek grants to offset initial investment

Industry Funds

Future

Operating

Expenses

Annual operations and maintenance expenses (O&M)

projected to be $3-10 million

Grants from DOE, NYSERDA

Research service contracts

Potential for rate recovery

Intellectual property revenue

Probable New York State ownership of lab infrastructure

NYPAs Strategic InitiativeAGILe – Investment

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Confidential – Proprietary and Predecisional

AGILe

Summary

NYPA bears initial risks

Energy grid and markets evolving rapidly

Unique opportunity to drive grid development in Phase I,

product development in Phase II

Flexible lab with advantages over its competitors

Emulate success of CNSE

Strong opportunity for economic development

Timing after NYPA Board Approval – 15 to 26 months

NYPAs Strategic InitiativeAGILe – Summary

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Note: NYPA has had exploratory discussions about the AGILe concept with most

of the institutions shown. More will approached over time. Not every institution

or company will participate in each phase or endeavor undertaken by AGILe

Collaboration across energy providers,

customers, research & product developers

within the state for simulation of scale

= differentiation

℠

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NYPAs Strategic InitiativeAGILe – Summary

• RT&D Charter• Develop new, highly technical and innovative ideas, tools, and techniques

that have the potential to reduce NYPA’s operation and maintenance costs, increase NYPA power systems’ efficiency, reliability, and safety. In addition, maintain the implementation process of new technologies in support of NYPA's generation and transmission equipment and components in the both hydro and fossil plants including activities pertaining to the advanced monitoring and diagnostics area, power quality, substation electrical systems and power apparatus, monitoring and diagnostic technologies, transmission vibration, corrosion detection and condition assessment and right-of-way maintenance management.

• R&TD Staff • Includes a Manager and 6 Engineers

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NYPA Research & Technology DevelopmentR&TD Organization

• PMU/DFR (Phasor Measurement Units/Digital Fault Recorder) Installations• Syncrophasor applications• On-line transformer bushing monitoring• Dynamic line ratings• Video sagometer• Settingless protection• Convertible Static Compensator (CSC) system upgrade• Condition monitoring• Fish friendly turbines• Computational fluid dynamics (CFD) simulations of hydro plants• Infrared cameras• Insulator integrity• Vegetation management• Situational awareness enhancements for operators

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NYPA Research & Technology DevelopmentR&TD – Sample of On Going Projects

• Organizations• Electric Power Research Institute (EPRI)• Center for Energy Advancement through Technology Innovation (CEATI)• New York State Energy Research and Development Authority (NYSERDA)• Power Systems Engineering Research Center (PSERC)

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NYPA Research & Technology DevelopmentR&TD – Current Partners

• Universities• Rensselaer Polytechnic Institute• State University of New York• Cornell University• North Carolina State University• Georgia Institute of Technology• University of Tennessee (CURENT center)• Power Systems Engineering Research Center (PSERC)

• Businesses• IBM• Siemens• Quanta Technologies• V&R Energy• NEXANS

•Opportunities

•AGILe Lab

• Partnering with businesses and organizations where shared R&D is implemented in the NYPA System

•Opportunities that meet NYPAs Strategic Vision

•Opportunities that support NYPA Operations

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NYPA Research & Technology DevelopmentR&TD – Partnering Opportunities

ותשובות שאלות

Alan Ettlinger, NYPA Manager R&TD

(011)+1-914-287-3068; Alan.Ettlinger@nypa.gov 29/29