1. The Impact of a Rapidly Changing Energy Economy in the U.S. on Electric Power Grid Modernization, and the Role of Advanced Grid Technologies for Future Energy Sustainability University of Pittsburgh – Pitt Law Energy Law and Policy Institute The Rivers Club, Pittsburgh PA August 1, 2013 Gregory F. Reed, Ph.D. Director, Electric Power Initiative Assoc. Director, Center for Energy Assoc. Professor, Electrical & Computer Engineering Swanson School of Engineering – University of Pittsburgh

2. Overview 2 Three Main Themes: 1 - The Rapidly Changing Energy Resource Portfolio in the U.S. for Electricity Generation 2 - The Challenges Associated with Current Trends and Future Projections in Generation Mix and Location on Electric Power System Planning and Operations 3 - The Impact on the Critical Need for Modernization and Expansion of the Electric Power Delivery Infrastructure (i.e. the Power Grid) for Future Energy Sustainability

3. 3 20092010 U.S. Electricity Generation – Trends 2011 2012 Coal: 37.4% Natural Gas: 30.4% Nuclear: 19% Hydroelectric: 6.7% Non-hydro Renewables: 5.4 % Fuel Oil: 0.6% Sources: U.S. DOE Energy Information Administration, Annual Energy Outlook Reports

4. 4 Source: 2013 US DOE EIA Early Release Projections U.S. Electricity Generation – Projections

5. Challenges for the U.S. Power Grid 5 Growing Constraints on Electrical Infrastructure Continued growth in overall electrical demand Transmission congestion in key areas of the country ‘Legacy’ century-old system and aging/antiquated AC equipment De-commissioning of many ‘near-load’ generation (mainly fossil plants) Rapidly changing electricity generation resource mix and plant locations Increased Penetration of Renewable Generation Statewide renewable portfolio standards Location of renewable supply vs. location of load centers Integrating non-dispatchable/intermittent resources reliably More Distributed Resources and DC loads High penetration of local generation (PV, etc.), within distribution networks Energy storage technology developments and applications Consumer and industrial loads are migrating toward DC systems: Data center equipment -- e.g., switches, servers, UPS, etc. Home computers, lighting, TVs, internet routers, cell phones, etc. Electronic motor drives, industrial automation equipment, EVs, etc.

6. U.S. Existing Power Plants Map 6 http://www.npr.org/news/graphics/2009/apr/electric-grid/gridmap.swf

7. ResourceSolar PV/CSP)WindGeothermalWater PowerBiopower Theoretical Potential 206,000 GW (PV) 11,100GW (CSP) 8,000 GW (onshore) 2,200 GW (offshore to 50 nm) 39 GW (conventional) 520 GW (EGS) 4 GW (co-produced) 140 GW78 GW U.S. Renewable Energy Map 7 Source: US DOE National Renewable Energy Lab (NREL)

8. New Alba ny Barnet t Huro n Antri m Fayetteville Caney/ Woodford Haynesville/ Bossier Marcellus Eagle Ford Utica Muskwa Barnett & Woodford Neal/ Floyd Monterey McClure Lewis & Mancos Hermosa Green River/ Mancos/ Baxter Niobrara Cody Frederick Brook Gammon Bakken Chattanooga Pearsall Palo Duro Pierre Excello/ Mulky Mowry Conasauga Montney Horton Bluff Since 2000, 32 ‘Plays’ – an 8-fold increase since 1980 8 North American Shale Gas Plays Source: US DOE

9. U.S. Electrical Transmission – EHV/UHV 9

10. Outside of the Northeast region, existing EHV and UHV transmission infrastructure is not as dense as other regions comparably Many of the existing fossil- based plants identified in the bottom figure will be retired in the next 20 years, resulting in var deficiencies and creating voltage and system instability, requiring more power electronics control (FACTS/DC) The two maps together show that today, resources are aligned with transmission build-out (reflective of historical population and economic density) U.S. Transmission and Power Plants 10

11. Context of Renewable/Clean Energy 11 Statements on Increased Renewable Energy Penetration DOE National Electric Transmission Congestion Study: “…there is transmission congestion at present, but ‘significant’ increases in congestion would result if large amounts of new generation resources were to be developed without simultaneous development of associated transmission capacity” (2006) DOE, National Renewable Energy Laboratory (NREL), and American Wind Energy Association (AWEA) joint Report: “….transmission and integration into the U.S. electric system…” is one main hurdle to establishing wind power on the grid “….many challenges are inherent in building transmission systems to accommodate wind and solar energy. If electric loads keep growing, extensive new transmission will be required to connect new generation to loads. ….true regardless of the power sources that dominate, whether they are fossil fuels, wind, solar hydropower, etc.” (2008)

12. Source: 2009 National Electric Transmission Congestion Study (NETCS2009) 12 National Transmission Needs for Wind Integration by 2030 (2009 ref.)

13. Power Electronics Technology Impact 13 Power Electronics Technologies Impact and Growth: U.S. Dept. of Energy, Office of Electricity Delivery & Energy Reliability Report (March, 2010): “Presently 30% of all electric power generated uses power electronics technologies somewhere between the point of generation and end-use. By 2030, 80% of all electric power will flow through power electronics” Reed, et.al. DOE NETL SGA Report (June, 2011): “Advances in power electronics technologies and systems will be critical to improve electric power flow control, effectively integrate renewable and non-dispatched energy generation resources, implement energy storage solutions and distributed generation, and support an expanding market for plug-in hybrid electric vehicles”

14. A New Era is Emerging in Power Systems 14 Grid Technologies for the Future A need to expand and modernize the existing legacy infrastructure Matching end-use requirements (more DC loads) with delivery technologies (hybrid AC / DC systems) and evolving generation (more DC supply) Integrating ‘smart grid’ concepts for enhanced control, communications, protection, automation, and security The Role of Advanced Power Electronics Grid Technologies Flexible AC Transmission Systems (FACTS) Improves the performance of existing AC systems and supports the deficiency of ‘var’ capacity lost from near-load plant decommissioning High Voltage Direct Current Systems (HVDC) Advantages over traditional AC solutions or certain applications (mainly for bulk transmission delivery) Medium Voltage Direct Current Systems (MVDC) Offers the potential to bridge the gap and develop better efficiencies between supply and demand

15. 15 New Age War of the Currents: AC vs DC

16. U.S. Transmission Investments 16 History and Present Market Environment Under-investment in Transmission & Distribution from 1970’s thru 1999 Reduced R&D and erosion of grid capacity/reliability margins Increasing investment trend from 1999 through present Source: Edison Electric Institute (EEI)

17. Hybrid DC/AC Super Grid Concepts HV DC/AC Super-Grid Concept for Efficient Integration of Energy Resources and Power Delivery 17

18. 18 HVDC: High Voltage DC Transmission Systems: More power can be transmitted more efficiently over long distances by applying HVDC, and is less costly for underground installation HVDC lines can carry 2 to 5 times the capacity of an AC line of similar voltage, over the same right of way Interconnection of two AC systems, where AC lines would not be possible due to stability problems or both systems having different nominal frequencies HVDC transmission is necessary for underwater power transfer if the cables are longer than 50km Power flow can be controlled rapidly and accurately Higher reliability and greater resiliency to disturbances Offers a solution to a ‘national strategy’ for grid modernization HVDC Solutions

19. 19 HVDC Solutions DC Transmission and Back-to-Back Link Configurations THYRISTOR VALVE HALL CONVERTER STATION AC Network (A) AC Network (B) Converter Station A Converter Station B DC Transmission Lines ~ or ~ BtB DC-Link

20. 20 FACTS: Flexible AC Transmission Systems Greater demands are being placed on the transmission network and will continue. At the same time, it is becoming more difficult to acquire new rights of way for new transmission infrastructure and lines. FACTS create new opportunities in controlling power, enhancing the usable capacity of present and future transmission; improving system performance, reliability and security; and validating the use of power electronics to enhance power systems operation and dynamic performance. Up to 40% additional capacity of existing grid infrastructure can be realized in some locations through strategic FACTS implementation FACTS Solutions

21. 21 FACTS Solutions Power System Converter Transformer Converter EdEd DC Voltage Source Shunt and Series Connected Configurations STATCOM TCSC

22. Medium Voltage DC Network Concept 22 DC AC DC AC DC AC Non-Synchronous Generation(Wind) Distribution Level Storage DC Photovoltaic Generation DC Fuel Cells Electric Vehicle AC DC Distribution DC Load Circuits Sensitive Load Electronic and AC Loads Control Algorithm Future DC Industrial Facility DC AC Transmission Supply Future DC Data Centers DC Existing AC Infrastructure DC HVDC/MVDC HVDC System Future HVDC Intertie AC DC Motor Variable Frequency Drives FACTS Compensation

23. 23 The Pittsburgh Region’s Role 23

24. 24 Collaboration of Policy/Law and Engineering/Technology Policymakers/Lawyers and Engineers/Technologists must be at the table ‘together’ to develop thoughtful and efficient solutions to the challenges ahead A true understanding and appreciation by policymakers related to technology considerations on new policies and laws (and vice-versa) needs to be part of the dialogue There is tremendous potential benefit for our region related to everything from resource extraction and utilization to technology development and manufacturing... for the overall reliable, safe, economic, efficient, and sustainable supply and operation of electric power and energy systems National leadership in economic development, job growth, ingenuity, and partnership Exciting and dynamic futures for young Americans! Opportunities

25. U.S. Department of Energy – National Energy Technology Lab (NETL) – Office of Energy Delivery and Electricity Reliability (OEDER) – Energy Efficiency and Renewable Energy Lab (EERE) – ARPA-E Solar ADEPT (Agile Delivery of Electric Power Technologies) Commonwealth of Pennsylvania, Dept. of Community and Economic Development – Ben Franklin Technology Development Authority Foundation, Non-Profit Community, and Philanthropists: – National Science Foundation; RK Mellon Foundation; Heinz Endowments; Carnegie Science Center; National Academies of Science and Engineering; Dr. John A. Swanson Industry Partners: – Eaton, ABB, Mitsubishi Electric, Siemens Energy, CONSOL Energy, Duquesne Light FirstEnergy, Dominion Virginia Power, KEMA, BPLGlobal, ANSYS, Pitt-Ohio, Westinghouse University Partners: VA Tech (CPES), CMU, WVU, PSU, Lehigh Univ. of Pittsburgh Electric Power & Energy Research for Grid Infrastructure (EPERGI) Graduate Student Researchers: – H. Al-Hassan, A. Barchowsky, H. Bassi, B. Grainger, A. Cardoza, H. Chen, J. Coulomb, B. DeCourreges, S. Huang, I. Itawi, R. Kerestes, R. Khanna, R. Kovacs, M. Korytowski, P. Lewis, A. Li, X. Li, R. Scioscia, A. Sparacino, E. Taylor, Q. Zhang 25 Acknowledgements

26. 26 Thank You

27. Contact 27 Dr. Gregory Reed Director, Electric Power Initiative; Associate Director, Center for Energy; Associate Professor of Electric Power Engineering, Electrical & Computer Engineering Department SWANSON School of Engineering University of Pittsburgh _________________________________________ Director and Technical Lead, Grid Technologies Collaborative NETL Regional University Alliance U.S. Department of Energy _________________________________________ Tele: 412-383-9862 Cell:412-389-7503 E-mail:reed5@pitt.edu Web:http://www.engineering.pitt.edu/Gregory_Reed/reed5@pitt.eduhttp://www.engineering.pitt.edu/Gregory_Reed/ 27