1. 2015 World Forum on Energy Regulation May 25, 2015
The Integrated Grid: Realizing the Full Value of Central and Distributed Energy Resources
Session 1a: Encouraging Innovations in the Energy Markets – The Role of R&D and Innovation in Maintaining Dynamism in Markets and Regulations
Hank Courtright EPRI, Senior Vice President, Electric Power Research Institute
2015 World Forum on Energy Regulation May 25, 2015

2. Electric Power Research Institute
Founded in 1972 by the electricity industry and regulatory community to provide collaborative R&D to serve the public.
EPRI members generate approximately 90% of the electricity in the United States.
450+ members from more than 30 countries.
International members from Europe, Asia and the Americas contribute to the research and development knowledge base. 2

3. The Power System – Looking Forward
Generation Becomes More Flexible
Consumers Become Energy Producers
T & D Becomes More Controllable and Resilient
Loads Become More Interactive and Dynamic
A More Dynamic End-to-End Power System

4. Transforming the Power System
Communication & Standards
Grid Modernization
Objective: what is an integrated grid (not how to get there) and the benefits of an integrated grid
An integrated grid is a power system where central and distributed energy resources are working seamlessly together to ensure ALL customers continue to receive safe, reliable and environmentally responsible electricity at an affordable rate. The planning and operation of the power system takes into account both central and distributed resources and a smarter and more distributed energy management systems allows us to optimize the resource mix in the most cost effective way.
How does this integrated grid benefit all customers:
Transition: So how do we transform the power system to an intergraded grid? While technology is essential but technology alone is not sufficient and we need all of us together to shape the future of this integrated grid
Integrated Planning & Ops
Informed Policy & Regulation

5. Research & Development – 5 Near-Term Challenges
#3 – Information and Communications PROTOCOLS
Develop an Integrated Grid platform
#4 – FLEXIBLE OPERATIONS
Enable cost-effective, flexible operation of central station generation
#2 – SENSORS
Accelerate adoption of intelligent sensor system technologies for improved power system operations, maintenance, and outage restoration
#1 – CUSTOMER RESOURCES
Enable integration of customer resources into the integrated power system
#5 – MODELING
Develop an integrated power system and environmental modeling framework

6. Challenge #1 – Customer Resource Integration
Energy Efficiency
Demand Response
Electrification
Alternate Rate Structures
Theme of customer behaviors and technology evolving
Energy Controls and Applications
Electric Transportation
Local Energy Storage
Local Generation

7. PV Smart Inverter Technology Key DER Technology for Integrated Deployment
Traditional Inverter Functionality
Smart Inverter Functionality
Match PV output with grid voltage and frequency
Provide safety by protecting from unintentional islanding
Disconnect from grid based on over/under voltage/frequency
Voltage support
Frequency support
Fault Ride-Through (FRT)
Communication with grid
DC Power
AC Power

8. Energy Storage Technology
Li-Ion Projected Cost (in $/kWh)
2015
2020
Cell
Residential ES System
$180-$225
$100-$120
$1000-$1200
$500-$600
Battery Pack
$400-$500
$200-$250
$800-$1000
$400-$500
Utility Scale ES System
Installed system cost could easily be 2X the cost of battery pack 2020 projected cost reductions are aggressive

9. The Integration of Everything
Customer data analytics and B2B interaction will be key

10. Challenge #2 – Sensors Enables Information
Sensors Communications Computational Capability
Geographic Information Systems
Customer Information Systems

11. Intelligent Sensor Systems
O&M Productivity
Outage Restoration
Equipment Reliability
Access to real-time and predictive information about the condition and performance of every component of the end-to-end power system.

12. Challenge #3 – Information & Communications Integrating across Platforms
Advanced Metering
Situational Awareness
DER and Storage
Distribution Grid Management
DR and EV’s
High Reliability/Security Low Requirements
10’s kbps Bandwidth 1000’s kbps
Milliseconds Latency Minutes

13. Information & Communications Architecture Defining Roles and Market Interfaces

14. Challenge #4 – The Flexible Generation Fleet
Central Fleet Operations are being called upon to rapidly evolve
Design envelops and operational parameters are being stretched, creating risks
Reliability
Availability
Environmental Performance
Safety
Increased Costs
Heat Rate
Life Cycle and Maintenance

15. Reliable Power System Operations Policy/ Environmental Impacts
Challenge #5 – Develop an Integrated Power System and Environmental Modeling Framework
Reliable Power System Operations
Policy/ Environmental Impacts
Market Forces
Objective: this is what we are good at – testing, demonstration, modeling, analysis – and this provides critical data – performance, benefit, cost that will be needed by NARUC and other stakeholders to make informed policy and regulation
Phase III is scheduled to begin once the framework is established later this year
The framework will still be modified as demonstrations provide feedback to the process
Two types of demonstrations:
Application of the methodology to a specific system
Demonstration of one or more technologies that lead to an integrated grid, with the results synthesized and used to inform further studies.

16. Understanding the Value of an Integrated Grid
Interconnected Value of Grid Connectivity
Integrated Value of DER and Grid
Resiliency
Voltage Support
Emissions Reduction
Distribution Optimization
Loss Reduction
Demand Response

17. Together…Shaping the Future of Electricity