1. Electricity Industry Innovation Challenges Woodrow Wilson Cross-Border Forum on Energy Issues 8 March 2007 Washington, DC Stan Rosinski Program Manager – Technology Innovation Electric Power Research Institute

2. 2 © 2005 Electric Power Research Institute, Inc. All rights reserved. Technology Innovation Electricity enterprise at a crossroads Technological challenges in each major part of the electricity value chain –Power production –Delivery –End-use Innovation needed to assure viability and sustained growth

3. 3 © 2005 Electric Power Research Institute, Inc. All rights reserved. Innovation Challenge Number 1: Transmission & Substations Issue: Maximize utilization and reliability of existing and planned assets Critical R&D Needs: Real time equipment monitoring and self diagnostic tools Advanced conductors (e.g., high temperature cables, superconducting cables)

4. 4 © 2005 Electric Power Research Institute, Inc. All rights reserved. Innovation Challenge Number 2: Coal Power Generation Issue: Bring the cost of advanced coal technologies to that of competing alternatives Critical R&D Needs: Integrated Gasification Combined Cycle (IGCC) Plants Pulverized coal plants with improved efficiency and reliability CoalFleet for Tomorrow ®

5. 5 © 2005 Electric Power Research Institute, Inc. All rights reserved. Innovation Challenge Number 3: Electric Energy Storage Issues: Reduce cost of storage options and develop integrated value proposition Critical R&D Needs: Battery, ultra-capacitor and compressed air energy storage systems Seamless integration with renewables and the future ‘intelligent’ grid Time (Hr) Load (MW)

6. 6 © 2005 Electric Power Research Institute, Inc. All rights reserved. Innovation Challenge Number 4: Carbon Capture, Transport & Sequestration Issue: Viability of advance coal plant deployment depends on successful CO 2 capture, transport and sequestration Critical R&D Needs: CO 2 capture and sequestration Environmental impacts of CO 2 storage

7. 7 © 2005 Electric Power Research Institute, Inc. All rights reserved. Innovation Challenge Number 5: Grid Operation & Planning Issue: Maximize grid reliability Critical R&D Needs: Grid wide area measurement system Adaptive, self healing grid Real time grid voltage control Real time dynamic grid transient security assessment

8. 8 © 2005 Electric Power Research Institute, Inc. All rights reserved. Innovation Challenge Number 6: Energy Service Portal Issue: Enable connectivity with consumers to allow response to real time prices and system wide benefits Critical R&D Needs: Object models Standards development Energy portal

9. 9 © 2005 Electric Power Research Institute, Inc. All rights reserved. Resources Electric Power Research Institute – Electric Power Industry Technology Scenarios: Preliminary Results. EPRI, Palo Alto, CA: 2005. 1013016. Scenario-Based Technology R&D Strategy for the Electric Power Industry: Final Report: Volume 1 – Executive Summary. EPRI, Palo Alto, CA: 2006. 1014385. Scenario-Based Technology R&D Strategy for the Electric Power Industry: Final Report: Volume 2 – Background Information and Details. EPRI, Palo Alto, CA: 2006. 1014385.