Bob Herbst

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Smart GridThe Technology and How Co-ops are
Employing It
Power System Engineering, Inc.

• Bob Herbst
• Power System Engineering, Inc.
• 1532 W Broadway, Madison, WI 53713
• Web Site www.powersystem.org

REMA Financial Managers Summer Conference
August 20, 2009
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Agenda

• Smart Grid Introduction and Definitions
• What Smart Grid Technologies are Cooperatives
  Employing/ Deploying?
• Distribution Automation
• Smart Switching/Smart Feeders
• Volt/VAr
• Advanced SCADA
• Distribution System Management
• AMI
• Smart Meters
• Use of AMI data internally to do system planning,
  rate studies, transformer sizing, etc.
• Demand Response in-home automation, critical
  peak pricing
• Smart Grid - Getting Started The First Steps

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The Smart Grid(s)

• Two grids to keep in mind
• A Smarter Grid offers valuable technologies
  that can be deployed today or in the very near
  future.
• The Smart Grid represents the longer-term
  promise of a grid remarkable in its intelligence
  and impressive in its scope, although it is
  universally considered to be a decade or more
  from realization.
• Well focus on the smarter grid.

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Whats Driving Smart Grid Deployment?

• Aging utility workforce
• 40 to 50 eligible to retire within the next 10
  years. Need to do more with fewer personnel.
• Increasing power demands on aging infrastructure
• Increasing energy costs
• Increasing regulatory demands
• Increasing environmental concerns
• Increasing demands on improved reliability
• The Northeast blackout of 2003 resulted in a 6
  billion economic loss to the region. This
  blackout jump started national Smart Grid
  planning.

NATIONAL ECONOMY The numbers are staggering
A rolling blackout across Silicon Valley totaled
75 million in losses. In 2000, the one-hour
outage that hit the Chicago Board of Trade
resulted in 20 trillion in trades delayed.
Sun Microsystems estimates that a blackout costs
the company 1 million every minute.
Source DOE
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What are the Benefits of a Smart Grid?

• The emerging smart grid is expected to address
  many of the current challenges in the electrical
  power industry.
• Smart Grid Expectations
• Make the electric grid more reliable
• More secure and resistant to malicious attacks
• Self healing
• Reduce peak demand
• Optimize network performance
• Allow consumers to control their energy
  consumption
• Other goals

POWER SYSTEM FACT Todays electricity system is
99.97 reliable, yet still allows for power
outages and interruptions that cost Americans at
least 150 billion each year about 500 for
every man, woman and child. Source DOE
Smart Grid technology should leverage your
existing assets and applications
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Distribution Typical Components of the Smart Grid
Cap Bank Controls
Automated Switch Controls
Underground Switching
Voltage Regulator Controls
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What Smart Grid Technologies are Cooperatives
Employing/ Deploying?

• Distribution Automation (DA)
• Distribution Automation entails real-time remote
  monitoring and control of distribution system
  assets.
• Provides decision support tools and, in some
  cases, automated decision making to improve
  system performance.
• DA covers automation at the substation, feeder,
  and customer level.
• Key components of a typical DA system include
  distributed field sensors, remote controlled
  switches such as feeder switches, reclosers, or
  capacitor switches the SCADA system a
  communication system for remote data acquisition
  and a suite of advanced DMS applications as
  decision support systems.

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DA continued Distribution Management Systems
(DMS)

• Over the years, utilities have deployed a greater
  number of sophisticated applications. Key utility
  automation vendors have responded to this trend
  by developing a suite of commonly used DA
  applications that can be relatively easily
  deployed and configured to meet the utilitys
  needs.
• These applications run on a dedicated SCADA
  server and has come to be known as distribution
  management systems.

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Common DMS Applications

• Substation Automation
• Monitoring and control of distribution substation
  equipment from a SCADA master forms the primary
  layer of DA.
• Specialized DMS applications can then access this
  data and convert it into actionable intelligence
  to improve distribution network performance.

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Common DMS Applications
Feeder Automation

• Feeder automation forms an important part of DA.
• Can be employed either as a self-contained local
  configuration by teaming a small number of
  switches/ reclosers or as a centralized scheme
  controlled by a SCADA/DMS system.
• Centralized schemes, implemented on SCADA/DMS
  platforms, are more elaborate and can control
  large portions of the distribution network,
  thereby delivering more advanced DA functionality.

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DA Feeder Peak Shaving

• More cooperatives are discovering the immense
  benefits of demand management using volt/VAr
  technologies (voltage regulator control or
  capacitor switching).
• In many instances, an effective volt/VAr program
  can delay construction of peaking units that
  would otherwise require a significant capital
  expenditure.

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DA Power Quality Management

• When it comes to power quality, the stakes are
  always high. With more of todays consumers using
  sensitive electronic equipment, there is greater
  demand for high quality power.
• Voltage sags, spikes, and poor harmonic control
  are some of the most pressing problems that
  require immediate attention.
• While existing SCADA systems are capable of
  acquiring vast amounts of sensor data on
  distribution feeders, DMS applications can be
  deployed to analyze the data and provide insight
  into the sources to be corrected.

POWER SYSTEM FACT In the United States, the
average generating station was built in the 1960s
using even older technology. Today, the average
age of a substation transformer is 42, two years
more than its expected lifespan. Source DOE
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DA Other Applications

• With the primary infrastructure in place as
  described above, many secondary DA applications
  can be deployed with incremental costs.
• Secondary applications
• Distribution system load flow analysis
• Reliability and contingency analysis
• Automated fault location and restoration
• Load management under system emergencies
• Fault diagnosis and analysis
• Others

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How do the New DMS Applications Compare to
Historical DA Applications?
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Distribution Management Systems Fit into the
Smart Grid Architecture
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Todays Electric System
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Smart Grid
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Deployment of Distribution Automation Causes
Change

• Procurement for DA equipment and systems requires
  the cooperative to consider
• Communications wide-area network (communication)
  issues to transport data from the field to the
  cooperative.
• Procurement procuring equipment from a new set
  of vendors.
• Installation and Support DMS systems will
  require additional IT/Operations personnel and
  ongoing administration.
• Change of business processes to accommodate more
  actionable data (and historical data) from DA.

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Key DMS Products and a Sampling of Vendors
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Advanced Metering Infrastructure (AMI)

• AMI is a Smart Grid technology
• The Smarter Grid takes full advantage of AMI
  technologynot just for meter reading anymore
• AMI will become an important part of the Smart
  Utility

Energy Efficiency - the low hanging fruit. 10
of all generation assets and 25 of distribution
infrastructure are required less than 400
hours per year, roughly 5 of the time. The
Smart Grid cant completely displace the need to
build new infrastructure it will enable new and
effective demand response programs that will
allow consumers to control their energy
consumption to a far greater degree - and that
will delay or avoid new generation. Source
DOE and PSE
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AMR to AMI to Smart Grid
Integrate AMI with other OMS, GIS, IVR, and other
applications

• Smart Grid Demand Response
• Load Control over AMI
• Home Automation
• Critical Peak Pricing
• Web Portals
• Smart Appliances/ Smart Home

One-Way Meter Reads
Two-Way Communications Pinging
AMR
AMI
AMI
AMI
Time
AMI real-time and archival AMI system data used
for multiple applications, such as rate design,
new service planning, transformer loading, etc.
Seamless integration with all applications
including Distribution Automation.
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AMI Applications Benefits for Utilities
Develop Repeatable AMI Processes well Beyond
Simple Meter Reading
First, Maximize Todays Applications
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Distribution Programs
From Silos to Integration
CIS
Supplemental Database
GIS
Dashboard Device
MultiSpeak
SCADA
Load Management (LM)

• Switch Status
• Voltage Status
• Automated Line Switching Intelligence
• Operator Controlled Line Switching
• Transformer Loading
• AMI Status
• LM Status
• OMS Status
• GIS Displays of Switch Status, AMI Status,
  Voltage Conditions, etc.
• Security Priority
• MultiSpeak Compliant

OMS
Engineering Analysis (EA)
AMI
Line Sensors
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Getting Started Implementing the Smart Grid
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How to Implement a Smart Grid

• Establish the precedent and stakeholder buy-in
• Management culture change typically needed
• Often facilitated by a third party
• Create an Overall Utility Strategic Plan
• Focused on operational excellence
• Based on operational needs analysis
• Develop a Technology Work Plan
• Roadmap to implement overall strategic plan
• Include a Strategic Communications Plan (SCP)
• Follow your technology roadmap

Upfront planning allows you to move forward wisely
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Develop a Utility Strategic Plan

• Determine needs from all utility stakeholders
• Regulatory boards, engineering, IT, customer
  service, accounting, operations, generation
  partners, and retail customers
• Create a strategic plan that focuses on achieving
  operational excellence
• This could be a 3-5 year rolling plan, updated
  yearly with new goals
• Help stakeholders stay focused during
  implementation of any Smart Grid technology

A technology roadmap is developed from this plan
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Application-level Technology Work Plan (TWP)

• Inventories current application technology assets
  
• Determines gaps in todays state and the needs
  determined from the 5-year strategic plan
• Plans for future technology needed to support the
  utilitys operational excellence goals
• Develops budgets and deployment schedules based
  on justified business cases
• Validates that stakeholder requirements are being
  addressed

Communications Strategic Plan needed for all
applications justified in TWP
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The Deployment of a Smarter Grid usually starts
with Communications
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A Smart Grid Starts with Communications

• Cooperatives have unique communications
  challenges
• Large territories, often both urban and rural
  areas
• Lack of reliable public broadband networks
• Enterprise system across territory to district
  offices
• To integrate application data, you have to get
  the data
• Many utilities are replacing LMR right now
• FCC narrowbanding and aged systems are affecting
  service
• New radios typically are trunked need
  infrastructure
• Good time to review communication infrastructure
• Plan for a wide area network to handle multiple
  utility automation applications.

Shared Communications Infrastructure is Key
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Approach for Communication Projects
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Smarter Grid Building Blocks Evolution
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Implementing a Smart Grid Conclusions

• A Smart Grid is not a Big Bang event
• Done in steps it will take time
• Analogous to building a cathedral over
  generations
• Technology will always be changing
• Plan for the change
• Great technology improvements in interoperability
• Technology costs have come down significantly
• Operational pressures will not go away

The time to start planning is now!
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Questions?
Bob Herbst Associate Principal
Consultant Telephone [phone] Email
herbstb_at_powersystem.org
Power System Engineering, Inc. 1532 W Broadway,
Suite 100, Madison, WI 53713 www.powersystem.org