Grid Security and Advancements in Smart Grid Technology Dr. Veronika A. RABL Chair, IEEE-USA Energy Policy Committee Principal, Vision & Results Washington, DC, May 15, 2015

2 Energy Independence & Security Act “It is the policy of the United States to support the modernization of the Nation's electricity transmission and distribution system … that can meet future demand growth and to achieve each of the following, which together characterize a Smart Grid:  Increased use of digital information and controls technology to improve reliability, security, and efficiency of the electric grid.  Dynamic optimization of grid operations and resources, with full cyber-security…” Passed by U.S. Congress in 2007

3 Source: Adapted from Massoud Amin, Smart Grid definition, Smart Grid Promise Highly Instrumented Advanced Sensors and Computing Interconnected by a Communication Fabric that Reaches Every Device POWER OF INFORMATION  R EDUCING COSTS OF ELECTRICITY OR REDUCING RATE OF INCREASE IN COSTS  S UBSTITUTING INTELLIGENCE FOR PHYSICAL ASSETS  E NGAGING CONSUMERS  E NHANCING EFFICIENCY  E NSURING RELIABILITY AND REDUCING OUTAGES AND OUTAGE DURATION  E NABLING RENEWABLES  E NABLING ELECTRIC TRANSPORTATION

4 New Capabilities/ Urgent Needs Must build the enabling infrastructure –Funding for open standard communications protocols –Removing institutional barriers Data → Knowledge → Whole new spectrum of applications –From better grid management… –…to new services for consumers

5 Benefits for All More efficient and resilient power/energy grid –Reduced outages and outage duration –Cybersecurity and private data safeguards New jobs/ industries –Manufacture of advanced sensors and devices –Big Data → Business Analytics and Intelligence to harness Smart Grid potential –World-wide interest → Exports

6 Presentations Dr. Damir Novosel: –Smart Grid explained –What’s urgently needed to get there Dr. Massoud Amin –Role of Smart Grid in enabling cyber- physical security and resiliency Kerrick Johnson: –Example application built on the Smart Grid infrastructure

7 Smart Grid – Major Points Enhance grid efficiency  Nation’s electricity bill approaching $400 Billion/year  Even a small change puts a lot of money into consumers’ pockets Better accommodate variable and uncertain renewables Reduce outage costs by est. $50 billion/yr  Limit frequency and scope of outages, speedup recovery times Improve National Security by Transportation Electrification -- from 100% oil to multiple sources Grow the economy and create jobs Give consumers more choice and flexibility

8 How Can Congress help ADDITIONAL FUNDING FOR GOVERNMENT, INDUSTRY, AND STATES TO ADDRESS CRITICAL NEEDS ADDITIONAL FUNDING FOR GOVERNMENT, INDUSTRY, AND STATES TO ADDRESS CRITICAL NEEDS : Assure timely development of Smart Grid standards, promote their deployment, put selected standard development on a “fast-track” Develop an institutional infrastructure for testing and certification of products for compliance with Smart Grid standards Develop operational tools to more accurately forecast the availability of natural gas supply for generators and improve unit commitment decisions Support education, work-force development and R&D that enable smart, secure, self-healing and resilient infrastructure Resolve technical and jurisdictional issues associated with devices that operate across institutional, regulatory, and information architectural boundaries