1. The US and Russia Getting “Smarter”: Russian-American Smart Grid Partnership Initiative Grigoriy Shchennikov Nelson Zhao Tatiana Popova Thankie Yuan Shi

2. Growing consumption – a challenge for the grid Population, total GDP per capita (current US$) Source: World Bank World electricity consumption Source: Enerdata Consumption per capita

3. Existing grid One-way flow electricity Source: IEA Centralized, bulk generation, mainly coal and natural gas Responsible for 40% of human-caused CO2 production Limited automation and situational awareness Lack of customer-side data to manage and reduce energy use

4. Evolution from traditional to smart grid

5. Smart Grid Successful Partnerships Korea – leader in the area of the smart grid technologies State of Illinois - advanced research capabilities at national labs and universities sister-state agreement between the Jeju Special Self-Governing Province and the State of Illinois Additional project opportunities - smart buildings, smart transportation, smart communities, and R&D. Dignitaries in Illinois and South Korea have numerously affirmed the mutual benefits of this model partnership for smart grid collaboration

6. Smart Grid Partnerships May, 2011 - Memorandum of Understanding Areas of cooperation: AMI smart meters distribution automation best practices in business processes creation of smart grid innovation cluster supportive government policies to promote smart grid exchange of technical information and experiential data

7. Slowdown in the development of the partnership

8. Fundamental Changes Pt. 1: Russian Policy Recommendations Clear motivations and incentives are needed for reform. Why? Market suspicion End-result Uncertainty

9. Standardize implementation rules and regulations! Fundamental Changes Pt. 1: Russian Policy Recommendations (Cont.) New smart grid outreach and consumer awareness program Residential communities just aren’t shown the benefits of smart grid technologies That leads to overall mistrust of energy companies and lack of local community support i.e., An absence of reliable standards for conducting energy savings contracts Risks for consumers AND public service providers

10. Fundamental Changes Pt. 2: U.S. Policy Recommendations Policy-makers need a compelling value proposition for consumers Must define key value areas Why should we support grid modernization? What benefits come with this? …. How much more do I have to pay? Reliability? Efficiency? Safety? Etc.

11. Fundamental Changes Pt. 2: U.S. Policy Recommendations (Cont.) Define set smart grid performance goals for all 3 levels of government Better coordination among federal, state, and local regulators

12. The Next Sister City Energy Working Group expressed interest in a second pair of sister cities Russia chooses Kaliningrad and United States was expected to announce their pick in 2012 Who’s Next? Smart Grid Maturity Model The Smart Grid Maturity Model Provides a framework for understanding the current state of you smart grid deployment and capability. Assesses how mature your utility’s smart grid is. Identifies gaps that need to be filled and helps make a strategic plan DomainAbbr. Strategy, Management, and Regulatory SMR Organization And Structure OS Grid OperationsGO Work and Asset Management WAM DomainAbbr. TechnologyTECH CustomerCUST Value Chain Integration VCI Societal and Environmental SE Levels 1 Initiate 2 Enable 3 Integrate 4 Optimize 5 Pioneer Domains

13. Smart Grid Applied Time of partnershipEnd Point Glendale Water and Power San Diego Gas and Electric

14. Why Glendale? Sacramento Municipal Utility District Baltimore Gas and Electricity Glendale has what the working group wants Level 5 Pioneers Provide “cutting edge” technology More will follow