International Collaboration of Smart Grid Demonstration Projects Integrating Distributed Energy Resources Matt Wakefield EPRI John J. Simmins, Ph.D. Gale Horst CIRED June 6-9, 2011, Frankfurt, Germany

EPRI Smart Grid Demonstration Initiative Leveraging Today’s Technology to Advance the Industry Deploying the Virtual Power Plant Demonstrate Integration and Interoperability Leverage information & Communication Technologies Integration of Multiple Types of Distributed Energy Resources (DER): The driving focus of EPRI’s five-year smart grid demonstration project is a result of the PRISM analysis and the smart grid demonstration projects are focused on Integration of distributed energy resources. One of the challenges with integration of distributed energy resources is management of those resources. How does a utility integrate tens of thousands or possibly millions of end points in the same manner as conventional generation. One goal is to manage these resources as a “Virtual Power Plant” so they can be managed by the utility system operations group in the same manner as a conventional power plant. To achieve the goal of a virtual power plant, there are numerous challenges and the EPRI Smart Grid Demonstration project is focused on leveraging existing and emerging technologies and standards to advance the integration and interoperability of distributed energy resources and associated systems. One of the most significant enablers of a smart grid is advancements in communication technologies. This initiative will leverage information and both private and public communication technologies and infrastructures as part of this effort. In order to identify challenging smart grid projects that will support our goals, we have several criteria that the smart grid projects must meet. One of the criteria is that a smart grid project must integrate of multiple types of distributed energy resources. When we talking about distributed energy resources, it includes four main areas: Distributed Generation, Renewable Generation, Storage and Demand Response. Another key criteria is that the projects must have multiple levels of integration from the customer, distribution system, transmission system, system operator, utility enterprise systems, market operator and so on. By deploying projects with multiple levels of system integration, we are challenged to integrate systems that historically have not been integrated and by doing so lends itself to create additional benefits to the electric power industry and key stakeholders.  Distributed Generation  Renewable Generation  Storage  Demand Response Multiple Levels of Integration - Interoperability Wakefield, Simmins, Horst – USA – Session 4 – 0530

EPRI Smart Grid Demonstration Initiative Members Research Funded by 21 Electric Utilities Knowledge Transfer to Advance Industry Wisconsin Public Service Exelon (ComEd/PECO) Ameren KCP&L Southwest Power Pool SMUD Salt River Project Southern California Edison PNM Resources CenterPoint Energy Entergy Hydro-Québec Central Hudson Gas & Electric Con Edison FirstEnergy/JCP&L ESB Networks Electricité de France American Electric Power Duke Energy Tennessee Valley Authority Southern Company Collaborator Collaborator & Host Site

EPRI Smart Grid Demo Critical Elements (Host Site Criteria) Integration of Multiple Distributed Resource Types Connect retail customers to wholesale conditions Integration with System Planning & Operations Critical Integration Technologies and Standards Compatibility with EPRI’s Initiative and Approach Funding requirements and leverage of other funding

Collaborative Demonstrations – Increases Value Strategic Topic Collaboration – Prioritized Annually Energy Storage Monetization CVR & VVO Analysis & Monetization KCPL is a true end-to-end Smart Grid demonstration.  Focused on Customer Value Proposition in response to lessons learned across the country during the AMI rollout.  Ameren: Business Case Customer Value Consumer Behavior & Engagement Distribution Management System Integration & Visualization No Single Project Can Evaluate Every Integration Scenario Multiple Host-Sites Provide a Platform to Advance the Industry

Cost-Benefit Analysis Guiding Documents “Methodological Approach” (ID 1020342) Jointly funded by DOE and EPRI Provides framework for estimating benefits & costs Estimating Costs & Benefits of the Smart Grid: (ID 1022519) 20 Year Estimate of Investment & Benefit of Smart grid CBA Guidebook Vol. 1, Measuring Impacts (ID 1021423) Manual for practical application with step by step instruction Guidance for documenting the project & approach to perform a CBA

Dual Purpose of Demonstration Research Demonstrate physical impacts of technologies in specific applications. Does it work? Estimate economic viability of the demonstrated applications. Is it worth doing? The physical question is separable from the economic question. We can test and observe the physical performance. Economic performance is often not directly observable, but is estimable through analysis of the physical performance.

Hypotheses: Linking Cause and Effect Demonstrating Physical Impacts Hypotheses: Linking Cause and Effect A hypothesis makes a statement that links cause and effect. Condition Action Outcome A causal chain can be expressed as a testable hypothesis: “If _____ occurs, the system acts to cause _____.” condition outcome

Next Steps Results Beginning to Come out Emphasis on Case Studies in 2012 Contributions to CBA Guidebook Call to Action – Proactively Share Results EPRI Results @ www.smartgrid.epri.com Signup for Newsletter Send request to mwakefield@epri.com Wakefield, Simmins, Horst – USA – Session 4 – 0530

Questions? Wakefield, Simmins, Horst – USA – Session 4 – 0530