Smart Grid is - Homepage | ESI-Africa.com Metering (FINAL...The Evolution to the Smart Grid ... Exchange Satellite BPL Customer PLC/BPL PSTN Mesh RF Star RF ... Programming AMR Capability+

Copyright Global Smart Energy 2008

Smart Grid isSmart Grid is

Real-time Simulation and Contingency AnalysisReal-time Simulation and Contingency Analysis

Distributed Generation and Alternate Energy SourcesDistributed Generation and Alternate Energy Sources

Self-Healing Wide-Area Protection and IslandingSelf-Healing Wide-Area Protection and Islanding

Asset Management and On-Line Equipment MonitoringAsset Management and On-Line Equipment Monitoring

Demand Response and Real-time PricingDemand Response and Real-time Pricing

Participation in Energy MarketsParticipation in Energy Markets

Shared Information – Continuously Optimizing – Intelligent Responses!Compilation of GSE & EnerNex Concepts

The Evolution to the Smart GridSmart Metering

Philip Bane -Managing EditorSmart Grid News


GlobalSmartEnergyGlobalSmartEnergy

Research consultancy• “Where’s the money?”

Clients• Agencies, labs, states, provinces• Investors, Fortune 50, startups

Products• Smart Grid Newsletter

• www.smartgridnews.com• Research• Consulting• Future:

• Smart Grid International• Smart Grid Globe• Smart Carbon News


Agenda – Evolution to the Smart GridAgenda – Evolution to the Smart Grid

The Problem The Goal Forces at Work Getting There

• Smart Metering

Opportunity Caveat –

• North American orientation• Not an engineer

Current Topic


SA

Congestion Management

Transmission S&M, Comm

ATO

ISO

EMS

Transmission SCADA

Transmission GIS

Distribution AAM

Maintenance

Planning

Design/ Build

Asset Utilization

Transmission AAM

AMI

Consumer HAN

MDMS

DR

Time-based Rates

AMR

Distribution SCADA

Distribution S&M, Comm

ADO

DER Operation

DA

OMS

Distribution GIS

Records

The “Big Picture”The “Big Picture”


AMI ManagementSystems

WirelessData

Collection

PagingData

Collection

CIS

OMS

WMS

GIS/DPS

Wide AreaNetworks

Meter-SpecificNetworks

Data Collection Systems

Existing UtilitySytems

WebPresentation Regulators and

AgenciesInternet

Public Wireless(Paging,

GPRS, 1XRTT)

TelephoneData

Collection

Smart Meters & Other Devices

Power LineData

Collection

Usage DataRepository

PrivateWireless(WiMAX)

Asset Mgmt

MDM System

Energy Service Provider

CSR

Third Parties

Retailer

Data Exchange

Satellite

BPL

Customer

PSTNPLC/BPL

Mesh RF

Star RF

AMI System ArchitectureAn Enabler of the Smart GridAMI System ArchitectureAn Enabler of the Smart Grid


AMRCustomer OutageDetection

AutomatedMeter Reads

Theft IDRemote TFTN

Remote Meter Programming

AMR Capability+

Load Control

Price Signals sent to Customer

New Rate Design

AMI

Smart GridAMI Capability+

Remote detection – other sensors

Central and distributed analysis

Correction of disturbances on the grid

Optimizes grid assets

Distribution Automation

Leverage non-operational data

“Self healing”

Hourly RemoteMeter Reads

Customer Voltage Measurement

Future Vision….


AMI’s Initial Capital Outlay isa Foundation for the FutureAMI’s Initial Capital Outlay isa Foundation for the Future

Incremental investments• Communications bandwidth• Business development capital

Incremental utility-side capital• Programmatic, customer-facing

and physical device management systems

Incremental field capital and knowledge-based applications• Sensors & device controllers• Distribution operations and

automation• Information management

Initial capital outlay• Meter functionality• Communications infrastructure• Head-end and legacy systems

modifications

Capital Build-Up

Expe

cted

Val

ue

Incremental Capital Commitment

Distribution Grid

Management

Demand Response

Extended Utility Roles

Incremental Value Capture

AMI


AMI ProjectsAMI Projects

2,900,0006. Texas Utilities

3,000,0005. Consumers (CMS) Energy

4,100,0003. IESO (Ontario)

5,300,0002. Southern California Edison

1,900,0007. BC Hydro

3,300,0004. CenterPoint Energy

9,000,0001. Pacific Gas & Electric

TargetAMI Meters North America’s Largest Programs


AMI Project Development PhasesAMI Project Development Phases


SCE AMI Phase II & III TimelineSCE AMI Phase II & III Timeline2007 2009

Total Meters Installed

2011

1.25M

5M

4.25M

2.75M

Release 2 Implement new customer

oriented programs and services

Integration with SAP or Billing and Customer Svc.

Implement load control, time of use/critical peak pricing rates, and demand response programs

Implement remote connect/disconnect, tamper detection and revenue protection functionality

Provide customer access to usage information via web portal

AMI Field Test Select MDMS, Meters,

Telecomm, and Deployment Vendor(s)

Prepare for full system integration testing of Release 1 functionality

Release 1 Implement Release 1 Business

Processes Implement automated meter

reading, integrate head-end, MDMS, and core back office systems, and bill with existing rates

Test Deployment vendor processes and IT systems

Field Test

Plan4/1

Execute

Release 2Plan

6/30

ExecuteRelease 1

4/1

ExecuteRelease 3

Plan

Release 3 Provide data to support

PPBU Energy Forecasting

Implement Outage Management functionality

Enable Contract Meter Reading functionality

Additional customer programs and services (e.g. prepaid svcs)

2008 2010 2012

1/08 7/08 1/09 4/09 4/10 1/11 1/12 6/30/20125K15K45K

Phase II Phase III1/07

Full Scale Deployment Begins


CMS AMI Phase II & III Release TimelineCMS AMI Phase II & III Release Timeline

Total Meters Installed

3.5M

3.1M

2.4M

Release 2 Implement new customer

oriented programs and services

Integration with SAP or Billing and Customer Svc.

Implement load control Pilot time of use/critical peak

pricing rates, and demand response programs (collaborative)

Implement remote connect/disconnect, tamper detection and revenue protection functionality

Provide customer access to usage information via web portal

AMI Field Test Select MDMS, Meters,

Telecomm, and Deployment Vendor(s)

Prepare for full system integration testing of Release 1 functionality

Release 1 Implement Release 1 Business

Processes Implement automated meter

reading, integrate head-end, MDMS, and core back office systems, and bill with existing rates

Test Deployment vendor processes and IT systems

Field Test

Plan7/09

Execute

Release 1

7/10

ExecuteRelease 2

Plan

Release 3 Implement Outage

Management functionality Enable Contract Meter

Reading functionality Additional customer

programs and services (e.g. prepaid svcs)

Offer DR tariffs and rates

2009 2012

1/09 7/09 1/10 7/10 1/11 1/12 1/13 1/142K50K

360K

Phase II Phase III1/08

Full Scale Deployment Begins

* Current plan subject to change

7/11

ExecuteRelease 3

Plan

20142011 20132010

1.4M

240K


AMI CostsAMI Costs


AEP Ohio AMI SummaryAEP Ohio AMI Summary Estimated Initial Costs Based on RF Deployment

• Meters – 1,505,414• Capital - $472 million• O&M - $4 million

Estimated Deployment Costs• Year 1 - Columbus - $61M Capital, $500K O&M• Year 2 – Columbus - $61M Capital, $500K O&M• Year 3 – Columbus - $61M Capital, $500K O&M• Year 4 – Canton - $60M Capital, $500K O&M • Year 5 – Newark & Chillicothe - $85M Capital, $750K O&M• Year 6 – Athens & Ohio Valley - $84M Capital, $750K O&M• Year 7 – Western Ohio - $60M Capital, $500K O&M

District capital investment per meter cost ranges from $299 - $348Note: Costs are indicative based on vendor estimates


McKinsey ModelMcKinsey Model

Recent popularity• Availability• Relative simplicity• Tailored for AMI

Intended for “preliminary value assessment” of AMI

User supplies cost and benefit values

Adaptable to a variety of deployments

Includes electric and gas Notes it is not:

• Financial analysis• Risk analysis• Investment portfolio

analysis

AMI CAPITAL COST FOR ELECTRIC SYSTEM - SUMMARY OF CAPITAL EXPENDITURESYear 1 Year 2 Year 3

For EOY 2006 $ '000 unless otherwise shown 2007 2008 2009

Automated Reads (Base) 1,006,317 3,642,866 6,350,338

Electric System EquipmentElectric Meters - New 9,900.0$ 10,098.0$ 10,298.9$ Installation - New Electric 1,650.0 1,683.0 1,716.5 Electric Meters - Retrofits 5,610.0 5,722.2 5,836.0 Installation - Retrofit Electric 1,386.0 1,413.7 1,441.8 Disconnect / Load Control Installation 0.0 0.0 0.0Disconnect / Load Control Devices 0.0 0.0 0.0Network Allocation 338.3 338.3 338.3

Total Electric System Equipment 18,884.3$ 19,255.3$ 19,631.6$ Average Cost per Meter 85.8$ 85.8$ 85.8$

Operational DriversMeter Deployment Schedule 20% 20% 20%Operating Months in Year 12 12 12Automated Reads (% of total population) 8% 27% 47%

Deployment StatisticsMeters Installed 220,000 224,400 228,865 Weekly Meters Installed 4,400 4,488 4,577 Daily Meters Installed 880 898 915


AMI Cost Example – 2 Million MetersAMI Cost Example – 2 Million Meters


Benefit IdentificationBenefit Identification

Every utility is different There are examples from other utilities of

numerous benefit opportunities A well designed process should be used to

identify benefits Even with al the analysis completed, there is

still a belief among utilities that AMI benefits are not ‘known’ or understood• Recent survey of WA State Utilities revealed -


AMI Value Streams – System OperationsAMI Value Streams – System Operations



Lessons LearnedLessons Learned

Use Case process works well and generates good requirements Pilots effective for validating business case model and

assumptions, identifying field issues such as installation problems and RF coverage

Vendors lie – need a very good assessment methodology No vendor addresses security and data management properly Multiple field communications networks may be required Don’t trust the vendor to optimize collector placement – methods

may be simplistic and could result in more backhauls than required



Smart Grid Data ExplosionSmart Grid Data Explosion

New devices in the homeenabled by the smart meter

You are here.

AMI Deployment

PCTs Come On-line

Distribution Management Rollout

Mobile Data Goes Live

RTU Upgrade

GIS System Deployment

OMS Upgrade

Advanced Distribution Automation

Substation Automation System

Workforce Management Project

Time

Ann

ual R

ate

of D

ata

Inta

ke

200 TB

400 TB

600 TB

800 TB


AMI Task ListAMI Task List

1. Identify a Team 2. Build AMI Application Inventory3. Capture, Distill, and Analyze Requirements4. Compare with Market Information5. Perform High Level Benefit/Cost Analysis 6. Develop a General Technology Assessment 7. Revise Requirements List and Business Case8. Document a Comprehensive AMI Project Plan9. Implement10.Scale and operate


Three TracksThree Tracks

Business & FunctionalRequirements

Reference Architecture

Trade-off Analysis

Preliminary Business Case & Regulatory Application

Vendor Engagement

Technology Evaluation

Vendor Product Bench Testing

RegulatoryStakeholder Engagement

Technology Advisory Board

Industry Standards

Utility Collaboration

Cost/Benefit Analysis

External Engagement System Design Technology Development


The AMI Architecture ProcessThe AMI Architecture Process


AMI Project OrganizationAMI Project Organization

Executive Sponsor

AMI Program Director

Steering Committee

AMI Project Manager

AMI Vision &Architecture

AMI Systems Integration

BU Operations Support

Business Transformation

Requirements & Business Case

Telecomm

IT

Tech Assessment

CIS GIS

AMI / MDMS OMS / DMS SCADA

Work & AssetManagement

Advanced GridSystems

Sensors & Measurement

Demand Response

External Systems Decision & PlanSystems

DG Systems Other Systems

Legal Finance

Vendor Mgmt &Procurement Regulatory

Engineering &Construction ERP/BPI Interface

System Planning Market & ISOIntegration

Nuclear Generation

Transmission Distribution

InternalStakeholder Mgmt

Communications

ExternalStakeholder Mgmt

Training

Executive Sponsors & Oversight

Project Management Office

Vision & Design Systems Integration Operational SupportBusiness

Transformation


Roles and ResponsibilitiesRoles and Responsibilities

Role: Align business with change.

Responsibilities:Communicate with stakeholders. Train personnel. Modify business processes.

Skills: Business process engineering. Communication. Training.

Role: Support normal business activities. Business unit coordination with project.

Responsibilities: Provide administrative support to project (financial, contracts, procurement, etc.). Support projects with business unit personnel and liaisons.

Skills: Business administration and various domain expertise.

Role: Apply Vision & Design architecture and integrate systems in the Enterprise.

Responsibilities: Coordinate with system architects. Develop or modify systems to support Enterprise solution. Perform component and system testing.

Skills: Various - systems integration, software development, web services, SOA, database, communication, hardware, infrastructure, telecom, etc.

Role: Convert vision to an architecture and system design.Responsibilities:Develop requirements, business plan, conceptual and system designs. Perform necessary trade studies and select technologies.Skills: Telecom, Internet, software development. Enterprise Architecture design.

Role: Provide executive sponsorship and oversight for the Utility of the Future program.Responsibilities: Ensure alignment with overarching business strategy; Ensure proper funding is available and flows into project; Ensure program is supported by necessary business units and personnel; Provide advice and feedback to program management; Provide steering committee support.Skills: Executive leadership; Vision and strategy

Role: Provide consistent program management processes and support for projects.Responsibilities: Financial oversight; Resource identification and project staffing; Processes and lifecycles; ReportingSkills: Management, financial, and people skills.

Project Management Office

Vision & Design Systems Integration Operational SupportBusiness

Transformation

Executive Sponsors & Oversight

Create this

team first!Create this

team first!


RecommendationsRecommendations

Instantiate a program management office to develop a comprehensive, disciplined AMI and Smart Grid Program using best of breed project management processes

Implement a comprehensive AMI and Smart Grid application discovery and requirements development process – IntelliGrid Architecture Methodology

Implement an organizational change management team Implement a vendor / technology assessment methodology Implement a business case model development team Develop a staffing plan that transitions over time from external resources

(consultants) to internal Use pilots to validate business case models and assumptions, customer

behavior patterns, identify internal champions, discover field issues Actively participate in industry activities (e.g. UtilityAMI, conferences) to

access extensive body of knowledge that is available, meet your peers, share lessons learned


QuestionsQuestions

Erich Gunther, P.E. – Chairman / CTO / Principal ConsultantTelephone 865-691-5540, ext. 114

FAX [email protected]


Smart Grid isSmart Grid is

Real-time Simulation and Contingency AnalysisReal-time Simulation and Contingency Analysis

Distributed Generation and Alternate Energy SourcesDistributed Generation and Alternate Energy Sources

Self-Healing Wide-Area Protection and IslandingSelf-Healing Wide-Area Protection and Islanding

Asset Management and On-Line Equipment MonitoringAsset Management and On-Line Equipment Monitoring

Demand Response and Real-time PricingDemand Response and Real-time Pricing

Participation in Energy MarketsParticipation in Energy Markets

Shared Information – Continuously Optimizing – Intelligent Responses!Compilation of GSE & EnerNex Concepts

Documents

Smart Grid is - Homepage | ESI-Africa.com Metering (FINAL...The Evolution to the Smart Grid ... Exchange Satellite BPL Customer PLC/BPL PSTN Mesh RF Star RF ... Programming AMR Capability+