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Smart Grid – An Energizing Opportunity March 30, 2011 MTA Conference Mark J. Mrla, P.E. & Dean L. Mischke, P.E. Finley Engineering Company, Inc. 1.

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Presentation on theme: "Smart Grid – An Energizing Opportunity March 30, 2011 MTA Conference Mark J. Mrla, P.E. & Dean L. Mischke, P.E. Finley Engineering Company, Inc. 1."— Presentation transcript:

1 Smart Grid – An Energizing Opportunity March 30, 2011 MTA Conference Mark J. Mrla, P.E. & Dean L. Mischke, P.E. Finley Engineering Company, Inc. 1

2 2 Agenda What is a Smart Grid Driving Factors Terms Home Networks Utility Company Options How Do We Serve The Power Industry

3 3 "I think there is a world market for maybe five computers." --Thomas Watson, chairman of IBM, 1943 "Computers in the future may weigh no more than 1.5 tons." --Popular Mechanics, forecasting the relentless march of science, 1949 "Who in their right mind would ever need more than 640k of ram!?" -- Bill Gates, 1981 "But what... is it good for?" --Engineer at the Advanced Computing Systems Division of IBM, 1968, commenting on the microchip.

4 4 What is a Smart Grid What Smart Grid is not! – It is not just smart meters – It is not just green energy – It is not just time-of-use rate structure – It is not just HVAC shedding in the summer – It is not just distribution automation systems

5 5 What is a Smart Grid What Smart Grid is! – A smart grid applies technologies, tools and techniques available now to bring knowledge to power – knowledge capable of making the grid work far more efficiently, reliably... – 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

6 6 According to William Parks from the DOE, a Smart Grid would: Accommodate all types of central and distributed electric generation and storage. Provide for power quality for a range of needs by all types of consumers. Optimize asset utilization and operating efficiency of the electric power system. Anticipate and respond to system disturbances. Operate resiliently to attacks and natural disasters Enable informed participation by consumers in retail and wholesale electricity markets. Enable new products, services, and markets. STATEMENT OF WILLIAM PARKS, SPECIAL ASSISTANT AND HAWAII LIAISON FOR ELECTRICITY DELIVERY AND ENERGY RELIABILITY U.S. DEPARTMENT OF ENERGY BEFORE THE COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE. AUGUST 24, 2009 What is a Smart Grid Generation Delivery Consumer

7 Transmission System Distribution System Power Generation Meters – Residential, Commercial, Industrial Coal, Nuclear, Wind, Solar, Hydro, Geothermal, Tidal, Natural Gas, etc. (1) Generation (2) Delivery (3) Consumer Smart Grid Impacts Economics Reliability Environmental Consumer Involvement 7

8 Transmission System Distribution System Power Production Coal, Nuclear, Wind, Solar, Hydro, Geothermal, Tidal, Natural Gas, etc. Generation Delivery Consumer Impacts Economics Reliability Environmental Consumer Involvement 8 Gasoline, Diesel, Ethanol, Propane, Electric, Solar, etc. Automobile & Electric Power System – Similar Evolutions

9 9 Think About Computers Involved with: Automobile Engines Emissions Systems Power Control Systems Temperature Control Systems Pressure Control Systems Fuel Efficiency Systems Electric Power Plants Emissions Systems Power Control Systems Temperature Control Systems Pressure Control Systems Fuel Efficiency Systems Transmission / Drivetrain Transmission / Distribution Gearbox Systems Traction Control Systems Antilock Breaking Systems Ride Control Systems Fuel Efficiency Systems Ground Fault Systems Breaker Reclosing Systems Reactive Power Control Systems Frequency Control Systems Voltage Control Systems Driver Info & Involvement Consumer Info & Involvement Fuel Efficiency Feedback Tire Pressure Feedback Traction Control Antilock Breaking System Time of Day Power Usage Appliance / Load Control Systems Time of Use Electric Rate Structure Feedback on Outage Time Estimates

10 10 Generation Driving Factors Watts Time Peak Power Shaving

11 11 Generation Driving Factors Prohibitive Cost to Build – $2.3B for Oak Creek New Steam Unit Environmental Permitting – Tied up in courts (NIMBY) Even “Green” systems are not immune Carbon and Greenhouse Gas Regulations Mandated Green Energy Creates problems May not be available when needed Does not eliminate Spinning Reserves Power Generation Coal, Nuclear, Wind, Solar, Hydro, Geothermal, Tidal, Natural Gas, etc.

12 12 Transmission Driving Factors Prohibitive Cost to Build $3M/mile - Madison to La Crosse $7M/mile for 6 miles in Kenosha County Green Power exists in low population areas Environmental Permitting – Tied up in courts (NIMBY) Superior to Wausau

13 13 Distribution Driving Factors Lack of Monitoring Power Companies do not find out a local branch is down until someone complains The local distribution network covers a very large geographical area Old Equipment

14 14 Consumer Driving Factors Power Company Viewpoint: Lack of Monitoring Power Companies do not find out a customer is down until someone complains Unable to detect quality issues until something is damaged Desire to find ways to encourage consumers to shift loads to off- peak Consumer Viewpoint: Want to manage cost Make changes remotely

15 15 Reliability – A Central Focus Outage Management System (OMS) Meter Data Management System (MDMS) Distribution Systems Supervisory Control & Data Acquisition (SCADA) Advanced Metering Infrastructure (AMI) Customer Information System (CIS) Interactive Voice Response System (IVR) Transmission Systems Generation Systems

16 16 Reliability – A Central Focus Outage Management System (OMS) Meter Data Management System (MDMS) Distribution Systems Supervisory Control & Data Acquisition (SCADA) Advanced Metering Infrastructure (AMI) Customer Information System (CIS) Interactive Voice Response System (IVR) Transmission Systems Generation Systems Possible Data Communications Opportunities

17 Some Consumer-End Smart Grid Terms PCT (programmable communicating thermostats) IHD (in-home display) LCM (load control module) HAN (home area network) PLC/BPL/DLC (power line carrier, broadband over power line, distribution line carrier) AMI (advanced metering infrastructure) 17

18 Home Automation Standards Examples ZigBee – 2.4GHz Wireless Mesh – Based on IEEE (wireless communications used in home, building and industrial controls) Z-Wave 900 MHz Wireless Mesh – 160 Manufacturers – Proprietary – Low Power HomePlug Command and Control – Based on IEEE 1901 Broadband over Power Line Networks – for Home Networks for Smart Grid operates in the 500 kHz range and has a throughput of 500 kbps – Operates on lines with voltages up to 1000 V at ranges up to several kilometers 18

19 Consumer Communications Example 19 ZigBee Specification - Suite of high level communication protocols Low cost Low power 2-way communications Used typically for homes, buildings, controls/sensors Range of 50 meters, but varies greatly Based around IEEE wireless standards

20 Consumer Communications Examples 20 Home Area Network ZigBee Wi-Fi (802.11) RF (towers, wireless mesh,....) Telecom Facilities (fiber, copper, wireless) PLC / BPL / DLC With a smart meter present Utility Office

21 HAN Communications Example 21 Home Area Network (HAN) ZigBee Wi-Fi (802.11) RF (towers, wireless mesh,....) Telecom Facilities (fiber, copper, wireless) PLC / BPL / DLC Smart Meter Thermostat IHD LCM Home Device With a smart meter present Utility Office

22 Thermostats and In-Home Displays Examples of vendors/products on the market: – ICM Controls (SimpleComfort) – Honeywell (Prestige HD Thermostats) – HAI – Home Automation, Inc. (Omnistat2) – Tendril (Set Point) – ecobee (ecobee Smart Thermostat) 22

23 AMI / Smart Meter System Suppliers Examples of vendors with systems on the market: − Elster- GE − Sensus- Echelon − ITRON- Silver Spring Networks − Landis+Gyr 23

24 Utility Communications Examples 24 Home Area Network Paging Network Cell Phone Network Internet Thermostat / IHD LCM Home Device Without a smart meter present Utility Office

25 Utility Communications Examples 25 Home Area Network RF/Wireless (towers, mesh network,....) Telecom Facilities (fiber, copper, wireless) PLC / BPL / DLC Smart Meter Thermostat / IHD LCM Home Device With a smart meter present Utility Office

26 Communications Infrastructure 26 Utility New Investment RF/Wireless (towers, mesh networks,....) PLC / BPL / DLC Fiber Telecom Existing Investment Fiber, Copper, Wireless Utility Office

27 27 What are Power Utilities Looking for in a Data Network? Security – The system must not be capable of being hacked Ubiquitous Coverage – The Utility typically covers a much larger service area than the communications providers Reliability – An outage may cause significant equipment damage and may be a hazard to life Low Cost – The system needs to cost less than their designated recovery threshold Very Low Bit Rates – 100s of bps but from lots of devices

28 28 What are their Options? Broadband over Power Lines (BPL) – Troublesome, low throughput, transformers, someone will figure it out Cellular Wireless – Near universal availability, relatively expensive per node, WiFi – Only works in urban areas, used in conjunction with BPL Data Network Provider – Power Utilities are just now starting to investigate this option

29 Telecom Infrastructure Rapid growth in consumer bandwidth requirements Rapid replacement/upgrade of telecom infrastructure Higher bandwidth requirements are driving increased use of fiber With fiber, future bandwidth increase requires only new electronics Fiber as medium for many purposes – voice, data, video, etc. Nearly all facilities with an electric meter, also contain telecom infrastructure 29

30 Where Are We Now? Technology exists in Telecommunications to service most all diversities of Smart Grid platforms. (Bandwidth requirements) – However – At what cost? – Can a Normal Business Model sustain the needed infrastructure? – Are “Our” customers on board? 30

31 Where Are We Now? On the Power side of Smart Grid advancement. Extensive advancement in Electronically Mapped Distribution technologies and numerous Automatic Meter Reading installs have set the stage for upcoming Smart Grid projects. – However, at what cost? – Back to the Business Model----Sorry. – What about Distributed Generation, Wind Power etc… – How would a Federally Mandated RPS help promote Smart Grid? 31

32 Data Circuits of Old – Special equipment – Added expense – Regulated – NECA Tariffed rates High Cost – Few circuits were deployed – Staff had little experience with the equipment – Long copper loops – Difficult to troubleshoot – When they worked, they were very stable – Special Circuits How Do We Serve the Power Industry 32

33 Data Circuits Today – Broadband The Primary Circuit of Today – Data is what we do – Voice is the declining market 90% of recent investment revolves around data – 8kFt DSL Loops – Wireless – FTTH Redundancy is now standard in IP network designs – five 9s ( seconds of outage per year) How Do We Serve the Power Industry 33

34 Data Circuits Today – Broadband The Primary Circuit of Today – Data is what we do – Voice is the declining market IPTV has been the driving factor in data network improvements – Video is watched closely – Disturbances to video circuits very noticeable Staffing has been concentrated around IP experience/training – Traditional CO staff is extensively IP focused – IP experience is provided all the way to the house How Do We Serve the Power Industry 34

35 DSL Circuits – Advantages: Relatively Low Cost – Works on existing copper Mature Technology – Know how to make it work Long reach at low bandwidth – 50kbps at 18kft Point-to-Point – Disadvantages: Data rates hindered by noise, especially at longer distances Less reliable than fiber services How Do We Serve the Power Industry 35

36 FTTH Circuits – Advantages: Mature Technology – Know how to make it work Long reach at any bandwidth – 100Mbps at 40km Point-to-Point is very secure GPON is also secure Very high service reliability – Disadvantages: Very High Cost – Typically requires all new facilities How Do We Serve the Power Industry 36

37 Central Office VoIP, Data to remote customers Bidirectional Optical Node 700 MHz, Cellular, WiFi, etc.Transmitter Wireless Networks –Bandwidth dependant on range –Transmitter nodes are typically fiber fed How Do We Serve the Power Industry 37

38 Wireless Circuits – Advantages: Fast to deploy Long reach at low bandwidth Can be low cost if the infrastructure is in place – Disadvantages: Limited range depending on frequency, Line-of-Sight Growth of wireless data networks has pushed up costs Reliability can be a factor How Do We Serve the Power Industry 38

39 Conclusions – Communication Company Broadband Advantages: Gain access to a trained work force that already works in the home The network may already exist all the way to the home Can be low cost if the infrastructure is in place – Communication Company Broadband Disadvantages: 100% broadband coverage does not exist today Return on Investment for Communications Company may be limited The need for the Power Utility to deal with a third party How Do We Serve the Power Industry 39

40 Conclusions – Pick the low hanging fruit first Look to serve the Substations – There are not very many Substations – Many local Power Utilities are not ready to collect very much information from the consumer yet Look to serve the larger Commercial Clients – Most likely, you are already there – They can actually affect the Utility’s usage and save money – Form partnerships to create a group that can cover substantial portions of the Power Utility’s service area How Do We Serve the Power Industry 40

41 We need Partnership Now Our paths have now converged – Power—Telecom – Not just servicing each other as in the past. – While Technologies have, and continue to advance – Has the Level of Cooperation to package our capabilities moved at the same pace? 41

42 Thank You!! 42


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