Smart Grid: A National Perspective

Albany Law School

Patricia HoffmanAssistant Secretary

Office of Electricity Delivery and Energy Reliability

U.S. Department of Energywww.OE.energy.gov

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Growing AssetStress

▶ Operating Closer to Edge

▶ Lower System Inertia

▶ Aging Infrastructure

▶ Fewer Power Engineers

▶ More DynamicBehavior

▶ More Stochastic

▶ Multi-levelCoordination

IncreasedVariable

Generation

▶ Broader Markets & More Services

▶ GreaterComplexity

▶ Market Clearing at Shorter Intervals

More DynamicMarkets

▶ DemandResponse

▶ Energy Storage / Electric Vehicles

▶ DynamicT&D Assets

NewControlla

bleAssets

▶ PMU & Over the HorizonMonitoring

▶ New control paradigms

Massive Data

▶ FasterComputation

▶ Cloud Computing

▶ Probabilistic Methods

▶ Pervasive Intelligence

Computational

AdvancesNeeded

Source: PNNL

Unprecedented Challenges Make Grid Modernization Urgent

Modernized Grid

Affordable

Safe

Accessible

Reliable

Clean

Secure

Resilient

Adaptable, flexible

Grid Modernization

How do we keep rates reasonable while making major new

investments?How do we make the

transformed grid safe for workers and consumers?

How do we make the grid accessible to new actors and new technologies?

How do we keep the grid reliable while transforming it?

How do we make our electricity supply system dramatically cleaner?

How do we protect against

cyber and physical threats?

How do we harden the grid against severe

events?

How do we design the grid to accommodate

ceaseless change?

Modernization Must Support 8 Key Grid Attributes

Illustrative Early Highlights

Draft / Pre-Decisional / Not for Distribution 4

Near and Long-term Infrastructure Vulnerabilities Are Growing

Climate Change: weather related power outages have increased from 5-20 each year in the mid-1990s to 50-100 per year in the last five years.

Cyber-security: 53% of all cyber-attacks from October 2012 to May 2013 were on energy installations.

Physical Threats: There were three highly visible attacks on grid infrastructure in 2013. Supply chains for key components of grid infrastructure are not robust.

Interdependencies: The interdependencies of the electric and fuel infrastructures seen in Superstorm Sandy greatly complicated the response and recovery.Supply/demand Shifts: The lack of pipeline infrastructures for associated gas in the Bakken has resulted in large-scale flaring of this gas, in amount sufficient to be seen from space.

Early Results Show Tangible Benefits

Transmission

Western Electricity Coordinating Council (WECC)

18 transmission owners installing and connecting 393 PMUs and 57 PDCs to

modernize transmission in the Western Interconnection

Distribution

Electric Power Board of Chattanooga

Advanced automated circuit smart switches and sensor equipment will enable 40%

reduction in customer outage minutes – worth $35 million/year to customers

AMI

Talquin Electric Cooperative (TEC)

Smart meter installations are saving hundreds of thousands of dollars in

misreporting (from manual reading) and saving an expected $200,000/year from

5,500 avoided truck rolls

Customer Systems

Oklahoma Gas and Electric (OGE)

Time-of-use and variable peak / critical peak pricing with in-home customer device use

enabled up to 30% peak demand reduction (which could offset a new peaking plant) and lowered customer bills by up to $150

Cyber Security FrameworkComprised of Capability and Risk Management

• Risk Management • Asset Configuration Management • Identity and Access Management • Threat and Vulnerability Management• Situational Awareness • Information Sharing and Communications• Event and Incident Response • Supply Chain and External Dependencies Management• Workforce Management

G T&D L- -Today’s EMS

Next-Generation EMS

EMS

DMS/OMS

BMS

Fostering tighter integration and coordination between transmission, distribution, and load.

Next-Generation Energy Management System

Many more Control Options

10s of million of control points.

100s of thousand of control points.

Transactive Energy

Source: GridWise Architecture Council and Office of Electricity Delivery and Energy Reliability

Customers: A Path Forward