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Smart Grid implications for cable operators

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1 Smart Grid implications for cable operators
COMMUNICATIONS FOR THE SMART GRID Smart Grid implications for cable operators Matt Haile Tantalus

2 Smart Grid Overview How do we define the Smart Grid
The application of technology to upgrade and improve the electricity grid Previously SG was Advanced Metering Infrastructure (AMI / smart meters), now first step is often Demand Management or Distribution Automation. Smart Grid uses technology and business models to improve control, efficiency, and reliability of the electricity grid. Some Popular Definitions Wikipedia: “A smart grid delivers electricity from suppliers to consumers using two-way digital technology to … reduce cost and increase reliability and transparency.” DOE: “Smarter grid”: Near-term, focused on data and communications within power system “Smart grid”: Long-term, focused on transforming the way we use energy Commonwealth Edison Executive: “A scratch for whatever itch you may have.”

3 Why do we need a Smart Grid?
A smarter grid applies technologies, tools and techniques available now to bring knowledge to power Ensuring its reliability to degrees never before possible. Maintaining its affordability. Reinforcing our global competitiveness. Fully accommodating renewable and traditional energy sources. Potentially reducing our carbon footprint. Introducing advancements and efficiencies yet to be envisioned. Underinvestment in grid infrastructure - 60% of US power grid needs to be replaced within 10 years 40% more power outages in second half of 1990s compared to first half Numerous government programs that view grid improvement projects as a method of stimulating the economy Slow down in development of large-scale generation facilities due to cost & environmental impacts Capital expense avoidance Shifting of small % of energy usage = lots of savings Surgical Deployment – address high impact opportunities early in the process Power system disruptions cost US $100 billion a year 30% increase in demand for electricity from 1988 to 1998; 20% from 1999 to 2009 Improved customer service Meet regulatory requirements Positive environmental impact leads to ‘Green PR’ Coal generates 54% of US electricity, and is the single biggest air polluter Unclean energy needed to meet capacity accounts for approx. 15% of GHG emissions Fuel generation also causes groundwater contamination and land disruptions thru mining and exploration

4 Why is this happening? Hundreds of thousands of high-voltage transmission lines course throughout the United States, only 668 additional miles of interstate transmission have been built since 2000. As a result, system constraints worsen at a time when outages and power quality issues are estimated to cost American business more than $100 billion on average each year. US DOE

5 Regulatory Actions Act 129 - Pennsylvania
Act 129 directed that all electric distribution companies with at least 100,000 customers are to file an energy efficiency and conservation plan Requires a 4.5 percent reduction (1,193 MW) in peak demand by May 31, 2013 The utility could be fined up to $20 million for failing to meet these reduction targets.

6 Three Pillars of the Smart Grid
REAL TIME INTELLIGENCE DATA MANAGEMENT 1 AMI Advanced Metering Infrastructure “Smart” meters enable time-of-use billing, power quality and outage reports Economic Efficiency TECHNOLOGY LOAD MANAGEMENT 2 DR LOAD MANAGEMENT Demand Response Educates and enables a customer to make “Smart” energy conservation decisions Conservation Communications Two-way, real-time connectivity Communicate with meters (E/W/G), load control devices, smart thermostats Communicate with individuals, defined groups or all devices Over-the-air firmware upgrades and ability to change reporting parameters and DR settings Time-stamped messages to verify duration of participation Easy integration with other utility applications – billing, customer service, engineering & operations Utility Functions Scheduled interval meter reads & power quality monitoring On demand reads Instant outage alerts & restoration verification Remotely program meters, alter rates & program parameters Signal customers about prices and price tiers Automatic load shedding capabilities to consumer appliances Remote disconnect & reconnect Consumer Tools Ability to opt-in and opt-out of load shedding events as desired Ability to select which appliances involved in curtailments Change preferences according to cost or comfort In-home display or smart thermostat that acts as signaling device Access household usage profile via the web – pay bills and enroll in programs ASSET MANAGEMENT 3 DA Distribution Automation Enables “Smart” infrastructure to enhance asset yield Delivery Efficiency, Asset Yield

7 Financial Implications
Why is this important to businesses – beyond social implications Think about the scale # of endpoints on network increasing Interval data updates Think about costs A small change in peak demand can lead to significant cost savings Think about benefits Programs typically target 3% - 6% reduction in energy; depends on specifics of program Benefits of the Smart Grid Financial benefits to implementing DM are the main driver for the industry. Some other benefits are: Offset the need for peaking capacity – capital expense avoidance/rate increases Decreased operational costs Reduce the need for additional transmission and distribution networks. Enable federal, state, local governments to obtain emissions reduction goals; meet regulatory actions and avoid penalties or take advantage of incentives. “Green PR” – utility and its customers perceived favorably as contributing to the environment. Substitute the need for additional generation capacity, lowering green-house gas expenditures. Prepare for ‘What’s Next’

8 Trends and Transformations
Technology has evolved rapidly: - Smart Meters more sophisticated and reliable - Costs have decreased Many early adopters abandoning original AMR systems: - Features that were once uneconomic & unproven now cost-effective, reliable and practical Driving Change Business case justified Costs reasonable Benefits quantifiable Skilled workers retiring Conservation a necessity Co-opetition among vendors

9 Goal: Balanced Demand TYPICAL DAY PEAK DAY Direct Load Control
Utility forecasts how much energy it expects to use on a given day Purchases energy slightly in excess of forecasted peak demand Typical peaks morning & evening; more costly to produce energy during these high-use periods Peak Day Energy consumption spike usually caused by unexpected hot/cold temperatures Appliances & HVAC forced to work harder Two tough choices: - Spot Market: purchase energy that is often x higher than retail; costs & greenhouse gas emissions rise - Shed Load: brownout; inconvenience customers CONSERVATION FORECASTED USAGE:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: COST / kWh EMISSIONS Comparison of typical day to peak day THREE FLAVORS OF DR Direct Load Control Allows utility to quickly shed load during emergency conditions or to avoid high peak energy prices Load decreased or curtailed during peak event: - pre-defined HVAC settings for time and/or temperature offset - on/off or cycling of appliances: water heaters, pool pumps, etc. User over-ride option Utility directed program with voluntary consumer participation TOU Pricing Utility establishes energy price levels for different times of the day including weekdays / weekends or seasonal adjustments Utility notifies consumers when price levels are in effect, e.g. peak, mid-peak and off- peak Appliance can be set to cycle down or shut off during high energy price periods Cheaper energy during off-peak periods motivates consumers to move non-essential energy use to off-peak times Voluntary or mandatory Dynamic Pricing Variable pricing levels determined by supply and market conditions Current energy price presented on In-Home Display – rates adjusted periodically or dynamically Appliances can be set to automatically shut off / cycle down during peaks Enables a utility to match its retail costs with fluctuating wholesale cost Optimizes supply and demand on a real-time basis TYPICAL DAY PEAK DAY Over 50% of a utility’s annual power costs can be incurred within 10% of operating hours. MORNING PEAK EVENING PEAK 1:00 | 2:00 | 3:00 | 4:00 | 5:00 | 6:00 | 7:00 | 8:00 | 9:00 | 10:00 | 11:00 | 12:00 | 13:00 | 14:00 | 15:00 | 16:00 | 17:00 | 18:00 | 19:00 | 20:00 | 21:00 | 22:00 | 23:00 | 24:00

10 Goal: Balanced Demand BALANCE CONSERVATION
Goal 1: flatten the peaks by moving some consumption to periods where energy is more abundant and cheaper to produce Goal 2: shed load on specific devices (air conditioners / pool pumps) rather than enacting full-scale brownouts Goal 3: signal customers when different price levels are in effect so they can better manage household usage and reduce costs CONSERVATION FORECASTED USAGE:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: COST / kWh EMISSIONS BALANCE MORNING PEAK EVENING PEAK 1:00 | 2:00 | 3:00 | 4:00 | 5:00 | 6:00 | 7:00 | 8:00 | 9:00 | 10:00 | 11:00 | 12:00 | 13:00 | 14:00 | 15:00 | 16:00 | 17:00 | 18:00 | 19:00 | 20:00 | 21:00 | 22:00 | 23:00 | 24:00

11 DR Scenario #1 Direct Load Control PEAK CONSERVATION C&I METERING
Utility encounters critical peak Load Shed command broadcast to participating customers Power cycled down or shut off on registered appliances (HVAC, pool pumps, etc.) Action verified & recorded at utility; data integrated into billing report Customer can override event Utility can stop shedding event or normal operations resume after pre- set period PEAK C&I METERING CONSERVATION SMART HOMES Demonstrates direct load control via LM-1481 Click sequence Utility detects peak period Signals LM modules Cycle / shut power at two residences - emphasize that the TC or LM can be the gateway Opt out of event Automatic event termination after a set period

12 DR Scenario #2 Signaling PEAK CONSERVATION
Smart Thermostats (IHD) installed - Smart appliances (fridge, dish & clothes washer) Alert sent to participating customer which TOU level is in effect or if load shed imminent IHD alerts all customers or only those enrolled in a particular DR program Customer decides on the level of participation - full, partial or ignore Power cycled down or shut off on selected appliances (HVAC, pool pumps, etc.) Action verified & recorded at utility; data integrated into billing report Customer can override an event or change preferences / programs at any time via the IHD console PEAK CONSERVATION Demonstrates direct load control via LM-1481 Click sequence Utility detects peak period Signals LM modules Cycle / shut power at two residences - emphasize that the TC or LM can be the gateway Opt out of event Automatic event termination after a set period PEAK PEAK

13 Smart Grid Building Blocks
Scalable Easy integration with back office applications Processing power Scalable Public & private comms options Standards based Redundancy Strong security Priority driven messaging Utility lifecycle Appliance connectivity Simple management Isolate HAN lifecycle Customer signaling Evolutionary design DESIGN CRITERIA LAN Local Area Network WAN Wide Area Network HAN Home Area Network NS Network Server SMART GRID EVOLUTION Application interfaces - simple TCP/IP links Two-way communications interoperability: - SCADA - CIS / Billing / etc. Multiple platforms - wired or wireless Standards based – WiFi, WiMAX, GSM Public/private Right-sized capacity Cost-effective migration path Rapid deployment Surgical deployment Self-initiating & self-healing network Standard radios Meter endpoints for - electric / water / gas Multiple meter types supported Over-the-air programming Access via meter / load control DR modules: - load control - IHD / smart thermostat Time-stamped Opt-in & out ATTRIBUTES

14 The Smart Grid Network Components WAN Wired & Wireless
Command & control center Private and public WAN options – RF & Broadband Field initiated network – self- configuring, self-healing Home Area Networks Built for urban & rural coverage; scalable Two-way, real-time connectivity TCP/IP 900 MHz LAN Network Server WAN Wired & Wireless HOME AREA NETWORK Demand Response

15 220 MHz Transceiver :: RT-3250 RF Gateway for WAN Communication
Ensures reliable & efficient two-way wireless communication between a Utility Operations Center and a cluster of LAN devices. Provides long-range, terrain hugging communication in rural & urban environments via 220 MHz Gathers data from multiple LAN endpoints: – meter readings, power quality data, and outage alerts Issues commands to single or multiple meters: – remote disconnect or time-synched reads Read on request or interval reads: – minutes, hours, days, weeks, or months Delivers interval data for advanced metering: – TOU, CPP, RTP pricing – load control & demand response Simple installation in Form 2S meter socket: – solid state & electromechanical meters

16 Ethernet WAN Collector
LAN / WAN Gateway for Ethernet Communication A two-way Ethernet hub for utilities that prefer to use the Internet as their backbone data communications network. Connects an Ethernet WAN to TUNet enabled 900 MHz LAN devices: Designed for utilities/municipalities that operate Fiber-to-the-Home network Gathers data from multiple LAN endpoints: – meter readings, power quality data and outage alerts Issues commands to single or multiple meters: – remote disconnect, load control events or time-synched reads: Supports on-demand reads or scheduled interval reads: – minutes, hours, days, weeks, or months Delivers interval data for advanced metering: – TOU, CPP, RTP pricing – load control & demand response Simple installation in Form 2S meter socket: – solid state & electromechanical meters TUNet PRODUCTS

17 Use Cases A Closer Look at How Electric and Telecoms Providers Would Reach Homes Use Case #3: Wireless WAN Endpoints (meters / homes) are far enough away from each other that we need Sharkfin on each home to connect to the network --- LAN not enough range Use Case #4: Indoor Modem Indoor Modem connected to outdoor meter via Ethernet One of the Ethernet ports on the indoor ONT or modem must be wired out to the outdoor smart meter Use Case #1: Outdoor interface directly to smart meters via Ethernet This is what we show on our display wall Use Case #2: Wireless LAN (Tantalus traditional deployment) ONT / NID Access Network Tantalus RT-4101 IP Collector (Fiber) USE CASES MOdem Access Network Tantalus RT-4101 IP Collector (Fiber)

Serves as backbone network for all meter & HAN data Endpoints provide access to home: meter, In-Home Display, load control device TUNet TECHNOLOGY Two-way, real-time network established between utility & home LM communicates via MHz IHD communicates via ZigBee or 900 MHz; interfaces with multiple devices

The Cornerstone of an Effective DR Program Centrally manage loads directly via TUNet in order to quickly reduce electricity consumption both locally or across the service territory during critical economic & emergency events. Remotely manage in-home customer loads Connects to a variety of appliances: central air conditioners, electric water & baseboard heaters and pool pumps Part of a utility reliability strategy aimed to improve SAIDI & SAIFI results by avoiding overloads, blackouts & brownouts Compatible with low and high current loads End-user flexibility: allows customers to opt-out of shedding events; notifies utility if device is physically disconnected All events verified, logged & time-stamped Easy to install and operate / inside or outside Easy to use Web interface for utility control; over-the-air firmware upgrades Automatically re-activates power after pre-programmed time TUNet PRODUCTS Load Management Switch LM-1421 Operates seamlessly within the TUNet network for two-way, real-time, 24/7 connectivity so a utility can react instantly whenever a critical event occurs Enables a utility to centrally and remotely manage load shedding events Works with a variety of high and low load appliances such as electric water & baseboard heaters and central HVACs Supports firmware upgrades over TUNet to ensure relevant operation and compliance to changing regulation and operational practices Confirms commands and operation as part of the two-way system architecture; time-stamped messages confirm start and stop time of curtailment for accurate billing and regulatory reporting Provides maximum end-user flexibility with over-ride capabilities that allow homeowners to opt out of a load shed event Involves homeowners in conservation initiatives and help both the utility and customers save money Presents alternatives to capital investment projects where short-term load management strategies can avoid or delay projects Flexible wiring options; can be powered from the appliance or from a separate power source Reliable communications, self-initiating & self-healing association within the TUNet LAN Automatically re-activates power after pre-programmed time, fail-on design Rugged design for indoor and outdoor installation Non-volatile memory maintains data and configuration during “off” periods Future versions will be able to connect to multiple devices and control multiple loads

Communicating Smart Thermostat to Maximize Conservation Customizable, feature-rich Demand Response device for customer signaling, load control & a full range of conservation programs. Highly configurable & customizable – implement desired rate structures, load control programs, user messaging and over-ride permissions Supports over-the-air upgrades and programming via TUNet to extend features and change operating parameters Reliable communications, self-initiating & self-healing association within the TUNet LAN; optional ZigBee Bright visual alerts notify consumers when load shedding is active and when low, medium or high energy price in effect Functions as a standalone device or in conjunction with other TUNet-enabled meters or load control switches Confirms commands; time-stamped messages verify start & stop time for accurate billing and regulatory reporting Works with both residential and C&I loads: – HVAC air conditioners and heat pumps TUNet PRODUCTS ST-1480 Programmable Smart Thermostat The ST-1480 Programmable Communicating Thermostat is an end-to-end Demand Response solution that gives utilities a fast, affordable and highly effective way of curtailing system loads and interacting with customers in energy conservation programs. The ST-1480 is more than a smart thermostat. It is an interactive DR tool that gives a utility central control over HVAC units at residential and C&I accounts. It also displays up-to-the-minute curtailment notifications and price alerts so consumers can see when load shedding events and peak energy rates are in effect It also displays up-to-the-minute curtailment notifications and price alerts so consumers can see when load shedding events and peak energy rates are in effect. Tantalus designed the ST-1480 as a two-way, utility/consumer communications tool that can be customized, configured and upgraded to fit each utility’s DR program. It supports multi-tier, Time-of-Use price signaling as well as load control so a utility can take action to avert a system crisis. Time-stamped records verify start & stop time and provide the data needed for accurate billing and regulatory reporting. It can also serve as a Home Area Network (HAN) gateway via TUNet or optional ZigBee. Advanced applications such as messaging can be incorporated which enable a utility to communicate directly with its customers and provide easy access to household billing and consumption history. The ST-1480 features an intuitive console and large LCD panel. Tri-color indicators (green, yellow, red) can be configured to glow when an event is in effect and to display the degree of importance as defined by the utility. For example a red light can signal a critical peak and high rates. With the push of a button, a consumer can opt-out of a shedding event. Operating ranges such as thermostat set point and scheduling preferences are easily adjusted. The ST-1480 can be programmed to automatically regulate the temperature when certain rates are in effect. An optional “conserve mode” allows customers to instantly change the temperature to a pre-set level and begin saving energy and money. Installation is easy; an ST-1480 simply replaces the existing thermostat. Communication via TUNet is automatically established. Over-the-air programming enables a utility to configure devices remotely. Altering price alert levels, adding functionality or moving a customer to a new DR plan can all be done from the utility’s operations center via a web application. A utility can leverage TUNet and the ST-1480 to drive Smart Grid functionality and implement a full range of emergency, environmental and economic DR activities to whatever degree it desires. The ST-1480 closes the communications loop with customers and is the cornerstone of year-round load management and energy conservation programs.

21 Current Environment – Home Automation and Security

22 Current Environment – Energy Management

23 Current Environment – Cable Opportunity?
TV as portal of choice? Vs. previous consumer gateway Power of the Set Top Box Zigbee connections? Partnership to head off competition Muni’s looking to run fiber – and for add’l revenue? Cross Marketing Consumer Portal / dashboard that allows users to see their energy usage and trends in real-time. The Portal gives users control over their consumption by allowing them to set up custom profiles based on their needs for comfort and desire to save on energy bills. Dashboard controls can also be accessed from any smart phone that can access the web.

24 Recognize the Players Municipal Electric vs. City Cooperatives
Investor Owned Utility (IOU)

25 Opportunity Hancock Telecom and Central Indiana Power

26 Know your Customer Know what Itches
Know the Industry Each utility’s vision, philosophy, plans and priorities – that’s what drives their SG solution (if any) Understand electric utility economics Generation/Wholesale Power Cost is the primary driver – it’s all about cost/resource avoidance. Is selling less of something a good thing? Focus is on reliability, power quality – non-revenue generating objectives

27 High Level Utility Overview
Strengths Building, operating and managing highly complex electro-mechanical infrastructure Commitment to reliability and redundancy – failure is not an option (Cost is usually second to reliability) Cautious and methodical – electric service is essential to public safety Gaps Building and managing high-volume endpoint communication networks IT prowess Application integration Managing continuous consumer interaction

28 What are the Opportunities?
Seek solutions – not simply connectivity Networks Non-critical communications – the place to start Non-time critical Most consumer level data Command and control networks Critical – failure is not an option…period. Hardest space to break in to…need to build trust IT support Enterprise level solutions OSS/BSS Time differentiated billing Customer portals Call centers

29 Perspectives How far along are you in thinking about smart grid?
Just starting to look into it Have met with local electric utilities What do you see as the key challenges of working with utilities? Reliability Security concerns Geographic coverage / dissimilar footprints Regulatory issues Operating philosophies Each wants to own the network

30 What are the Challenges?
Build Trust Haven’t necessarily played together very nicely in the past. pole attachments municipal broadband Understand what’s at stake for the utility (your customer) economically, operationally, politically etc… Rethink customer care. A utility is not a customer. It’s a partner. Your highest priority partner. Often when their service doesn’t work, yours doesn’t either.

31 MSO’s and the Smart Grid
Leverage the strengths of your organization to enable comprehensive end to end solutions for utilities Utility requires reliable, secure and low latency network Speeds deployment by using an existing access infrastructure Leverages technical skills of communications provider staff Communication service providers leverage their core asset – the network – as well as IT capabilities to provide utilities with the communications fabric over which the smart grid can be deployed Expands service revenue streams Justifies deeper fiber deployment to electric sub-stations, wireless base stations and perhaps all the way to the home

32 Recognize Cultural Differences and Develop a Strategy for SG
Develop Solutions Know Industry Cultural Differences Identify Gaps Build Trust

33 Which Utilities Make Good Targets
Some utilities are more likely than others to cooperate Focus on utilities that do not produce their own power - those that buy all their power are more incented to implement Smart Grid The more territory overlap the better Utilities with small IT and telecom staffs are more likely to be willing to work with communications service providers

34 The Future is Now Adaptable communications technology that meets the broad set of requirements utilities face today and in the years to come. Technology Built for Future Needs Capacity to grow – single network to supports ALL Smart Grid functions individually and simultaneously – functionality ready when needed Built for speed; instant data and response Designed to interface and interconnect – plug & play Risk Management Proven technology / adaptability built-in Flexible communications options: – single transport or best combination Single network for cost-effectiveness and easy maintenance Surgical deployment minimizes risk and accelerates payback Open standards for interoperability with future applications Timing: change priorities as objectives shift Crystal Ball Considerations Beyond billing! Energy Bill impact: – TOU, fuel surcharges, other Home Area Network: – full menu of DR options Distributed Generation Congestion management Multiple utilities: – electric, water, gas, propane Your utility objectives: – today, tomorrow, next year… VALUE

35 Thank you for your time! Questions? Matt Haile Tantalus (919) 605-0454


37 Edison vs. Bell If Alexander Graham Bell were somehow transported to the 21st century, he would not begin to recognize the components of modern telephony – cell phones, texting, cell towers, PDAs, etc. – Thomas Edison, one of the grid’s key early architects, would be totally familiar with the grid!

38 Smart Grid Capital Smart grid is drawing capital investments
RUS-Investing hundreds of millions in advanced metering in rural areas; client cooperatives cover 42% of US distribution network ARRA-$3.4 billion in funding for Smart Grid projects was awarded by the Department of Energy in 2009 Tantalus funding / finance facility Significant private capital is flowing in to Smart Grid Over $4 billion complements ARRA funded projects

39 Smart Grid ARRA Project Map

40 Sources of Smart Grid Information
Good reference sites for further information Federal government Smart Grid portal National Institute of Standards-Smart Grid Framework and Roadmap Federal Smart Grid Task Force RUS-Loan and grant programs for electric and water ARRA-Link to see who won smart grid funding through ARRA

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