Wanda RederVice President – S&C Electric Company

IEEE Power & Energy Society - President 2008-09

IEEE Division VII Director – 2014-15

São Paulo Brazil

Electric Power Industry Vision

San Francisco IEEE PES Chapter Fall Banquet

October 7, 2014San Francisco IEEE PES Chapter Fall Banquet

October 7, 2014

S&C Electric Company

• Employee-owned

• Headquartered in Chicago, IL

• Additional operations in:

– Canada

– Mexico

– Brazil

– China

– Australia

– United Kingdom

• 2500 employees

Overview

• Grid Trends and Drivers

• Recent investments

• Making the case for

reliability

• National energy goals

• New grid enables our future

• Magic of micro-grids,

storage and its justification

Heightened Investor DemandsHeightened Investor Demands

Escalating Security ConcernsEscalating Security Concerns

Increasing Environmental Requirements Increasing Environmental Requirements

Infrastructure is more prone to failureInfrastructure is more prone to failure

Grid Trends and Drivers

Growing Population, More Electronics Growing Population, More Electronics

Resiliency For:

• Sustainability

• Carbon Management

• Electric Transportation

• Distributed Sources

• Efficiency

• Reliability

Are We Prepared for the Change?

• Customer demand and

expectations increasing, yet…

• Load factor is decreasing

• Vulnerabilities are increasing

• Build for ≤ 1% of the time

• Assets and employees are aging

• Grid development and

modernization is inevitable for

increased resiliency

Climate Change: Weather related power outages have increased ten fold per year in the last five years in the US.

Physical and Cyber-security:

Increased attacks

Visibility, Flexibility, Transparency:

Increasing complication from infrastructure interdependency, intermittent sources, changes in supply mix, and distributed activity.

Old and New: Delivery assets were largely constructed decades ago. Updates needed to transport, accommodate load growth and enable new technologies… Also, many utility workers are likely to exit in a decade and need to be replaced.

Source: US DOE (2013) Energy Sector Vulnerabilities to Climate Change

US Recovery Act: Grid Modernization

One-time Appropriation $4.5B of Recovery Act Funds

Investment Grants

Smart Grid Demos

Workforce Training

Resource Assessment &Transmission PlanningSmart Grid

Interoperability Standards Other

Source: US Department of Energy Office of Electricity and Energy Reliability: Results and Findings from the ARRA

Smart Grid Projects, May 2013

� US Spent $7.9B in ARRA Smart Grid Projects

– Includes $4.5B Federal stimulus and industry matching funds

– Five year grants starting in 2010

� Results are being posted

– www.smartgrid.gov

– Several reports are posted

� Developing a platform for significant grid modernization investment

EPB of Chattanooga: Value of Reliability

7

EPB of Chattanooga estimated that outages cost of $100 million Saved with 1200 IntelliRupters® with IntelliTeam® SG

2011 Labor Day Storm (20% technology configured):• 63,000 homes interrupted; however, 16,000 (25%) experienced no outage and 9,000 (7%) experienced a 2-second interruption

• Utility avoided 1,917,000 customer minutes of interruption

July 2012 wind storm:• EPB estimates they avoided 500 truck rolls and reduce total restoration time by 1.5 days with automated feeder switching Represents $1.4 million in operational savings

Source: US DOE Office of Electricity and Energy Reliability: Results and Findings from the ARRA Smart Grid Projects, May 2013

EPB Chattanooga saved $100MM per year, avoided 58 million

customer minutes in July 2013 storm

Making the Case for a Self-Healing GridBusiness case video at: www.sandc.com/rsgs

Cost-Justifying Self-Healing

� Societal cost is often not factored into the reliability business case

� Connects infrastructure investment to the overall economic value

� Use the Interruption Cost Estimate Calculator

– Estimates interruption costs

– Calculates the value of reliability improvements

� www.ICECalculator.com Developed by US DOE and Lawrence Berkeley National Laboratory

EfficientBuildingSystems

UtilityCommunications

DynamicSystemsControl

DataManagement

DistributionOperations

DistributedGeneration& Storage

Plug-In Hybrids

SmartEnd-UseDevices

ControlInterface

AdvancedMetering

Consumer Portal& Building EMS

Internet Renewables

PV

11

National Energy Goals

Economic Competitiveness: Energy infrastructure

should enable the nation to, under a level playing field and fair and transparent market conditions, produce goods and services which meet the test of international markets while simultaneously maintaining and expanding jobs and the real incomes of the American people over the longer term. Energy infrastructures should enable new architectures to stimulate energy efficiency, new economic transaction, and new consumer services.

Environmental Responsibility: Energy infrastructure

systems should take into consideration a full accounting (on a life-cycle basis) of environmental costs and benefits) in order to minimize their

environmental footprint.

Energy Security: Energy Infrastructure

should be minimally vulnerable to the majority of disruptions in supply and mitigate impacts, including economic impacts,

of disruptions by recovering quickly or with use of reserve stocks. Energy security should support overall national security.

Source: US DOE Quadrennial Energy Review Public Deck, May 2014

Grid Enables the Future

12

Make Energy:

• Reduce fossil fuel usage

• Increase use of renewables

• Facilitate change of mix

• Accommodate load growth

Move Energy:

• More flexible, adaptable, intelligent and resilient

• Increase visibility, awareness, analytics, plug-and-play

Use Energy:

• Increase efficiency

• Empower customers

Technologies:

– Energy storage

– Advanced power

electronics

– Self-healing, intelligence

– Adaptive protection

– Layered control

architecture

Requires collaboration,

research, standards…

Source: IEEE GridVision 2050

Past:

• Regulated business models

• Large generation stations

• Centralized dispatch

• Minimal constraints

• Outages “tolerated“

• Grid “over designed”

• Radial distribution

• Homogeneous technology

• Slow distribution operations

• Uni-directional power flow

Industry in Transition

Future:

• Emerging “customer choice”• Distributed & green resources • Distributed intelligence • Pressures for “green power” • Less tolerance of outages • Infrastructure exhausted • Looped or meshed distribution• Mixing old with new • Near real-time micro-grids• Multi-directional power flow

Majority are satisfied most of the time

Facilitates “System” Optimization

• Performance expectations

are increasing, and yet…

• There are affordable limits

• View of “System” is changing

to include the customer

• Need distributed intelligence

• Satisfies multiple objectives

– Service differentiation

– Reliability / Resiliency

– Demand response

– Renewable integration

Current Grid

Self Healing Future Grid

Grid R

elia

bili

ty

Good

Perfect

Customer Expectation

Average Perfect

Micro-Grid

Reliability vs. Customer Expectation

Micro-grids

15

Micro-grid:

• Interconnected loads and

distributed energy resources

with defined electrical

boundaries

• A single controllable entity

that can connect and

disconnect from the grid

What’s new?

• Renewables

• Storage

Gen

Bulk supply connection

(sub-transmission)

Partial Feeder

Micro-grid

Gen

Single

Customer Microgrid

Feeder

Other

FeedersFull Feeder

Microgrid

Full Substation

Microgrid

Distribution Substation

Gen

Gen

Gen

Bulk supply connection

(sub-transmission)

Partial Feeder

Micro-grid

Gen

Single

Customer Microgrid

Feeder

Other

FeedersFull Feeder

Microgrid

Full Substation

Microgrid

Distribution Substation

Gen

Gen

Source: EPRI

Energy Storage: Various Sizes and Uses

Use examples:

• Islanding

• Constant Output

• Peak Shaving

• Arbitrage

• Renewable Smoothing

• VAr Dispatch

• Reliability

• Asset deferral

• Frequency regulation

• Electric supply reserve

• Reduce cold-load pick-up

Community Energy Storage

25 kW; 50 kWhLithium-Ion

Mid-Sized Energy Storage250 kW; 250 kWh

Lithium-Ion

Large Energy Storage1 MW, 6 MWh, Sodium Sulfur

Micro-grid: Santa Rita Jail, California

• 2 MW, 4 MWh,

lithium-ion batteries

with S&C Storage

Management System

• Time shifts solar and

wind to cure

mismatch between

generation and

consumption

• No critical outages

since its dedication 3/22/2012

Benefits of Storage and Renewables

18

Storage with

Renewables can:

• Smooth

intermittency

• Minimize reverse

power flow, keeps

voltage within limits

• Store output and

release coincidental

with local load

• Control ramp rate

-4

-3.5

-3

-2.5

-2

-1.5

-1

-0.5

0

0.5

1:55 PM 2:09 PM 2:24 PM 2:38 PM 2:52 PM 3:07 PM 3:21 PM 3:36 PM

Po

we

r(k

W)

Source: Thomas Bialek SDG&E June 2014

Net Load

It is expensive.

How is it justified?

Storage is Key for Operations, But…

19

Operational Challenges:

• Increased variability and

uncertainty

• Bidirectional power flows

• More frequent outages

• Increased complexity

• Interoperability

• Enabling customer

participation

Storage Economic Justification

• Capture all benefits with societal impacts

• Determine benefits tradeoffs

– A peak shaving unit may not be available for an outage…

• Calculate NPV of the benefits versus costs

• Example: 250kW/250 kWh storage for a 250 kW commercial

customer with annual usage of 1,095 MWh. Ten year life-cycle – Benefits:

• Reliability $1300 per year

• Peak Shaving $24,000 per year

• Renewable Integration $51,000 per year

• Frequency regulation $61,000 per year

– Costs

• Installation $500,000 up-front

• Maintenance $10,000 per year

• Battery replacement $175,000 in year 10

Net Present Value with 6% discount rate: ~$350,000

More to Be Done!

• Asset jurisdiction… a new class?

• Models needed to size capacity & duration

• Large footprint requirements

• Lack of standards

• Noise considerations from inverters

• Safety, environmental and permitting issues

• SCADA and communications for isolation, availability, reliability

• Network management integration

• Architecture for integrated solutions

IEEE Smart Grid

22

IEEE is leveraging its

foundation to develop

standards, share best practices,

publish developments and

provide educational offerings to

advance technology and

facilitate successful Smart Grid

deployments worldwide.

• IEEE Smart Grid portal

• Monthly e-newsletter

http://smartgrid.ieee.org/resour

ces/smart-grid-news

• Webinar Series

• Peer-reviewed publications

• Conferences

• Standards

• Linked-In

• Twitter @ieeesmartgrid://

http://smartgrid.ieee.org

10/7/2014

• Recognize the trends and drivers

• Enable the future by looking

forward...

– Make it

– Move it

– Use it

• Distributed intelligence and storage

are key

• More to be done. Need collaboration.

– Research and standards

– Sharing best practice

Conclusion for Grid Vision

Wanda Reder

VP – Power Systems Solutions

S&C Electric Company

Wanda.reder@sandc.com

(773) 381-2318