1

GE Energy Session 4 of a 5 Part Series on the Smart Grid

The Smart Grid … Lunch and LearnSession 4: The Smart Grid – The Transmission View

Smart Grid Learning Series

2

Session 1: The Smart Grid and its Benefits

Session 2: The Smart Grid… The Consumer View

Session 3: The Smart Grid… The Distribution View

Session 4: The Smart Grid… The Transmission View

Session 5: The Smart Grid… The View from Rural America

3

Session 4: The Smart Grid – The Transmission View

Topics:Smart Grid Overview

• Benefits Overview• Overview of Good Things Enabled by the Smart Grid• Overview of the Calculated Benefits of the Smart Grid

Transmission Today. A “Pretty Smart Grid”

Smart Grid – The Transmission View

Wide Area Measurements & Control

The Changing Role of Generation - Distributed Generation

Distributed Energy Resources/Microgrids

Utility Energy Storage: The Economics

Impact of Policy Discussion

4

Soaring energy demandPower outages’ financial impact Green energy takes center stageElectricity prices on the riseAging infrastructure/workforce

Industry challenges

U.S. sees 6.5% spike in ’09electric bills

Source: EIA (Energy information Administration)

6.5%

Electricity prices on the rise

5

Electricity … Poised to change the world again

“We can’t solve problems by using the same kind of thinking we used when we created them.”

- Albert Einstein

6

The Smart Grid

Growing complexity in modern grids

8

Grid Inefficiency

Source: AEP PUC Hearing

9

Aging Assets

Age in Years

0%

20%

40%

60%

80%

100%

1 5 9 13172125293337414549535761656973778185899397

Transformer failure rate

The average US transformer age is just under 40 years old

10

Electrical infrastructure

What is a Smart Grid?

The integration of two infrastructures… securely

ElectricalInfrastructure

Information Infrastructure

Sources: EPRI® Intelligrid

11

12

Wide-AreaProtection &Automation

Wide-AreaMonitoring & Control

DeliveryOptimization

AssetOptimization

DemandOptimization

RenewablesForecasting

RenewablesSmoothing

Flexibility for emerging capabilities

What it is Why$16MM/yr, 51K tons of CO2 reduction+Res. consumer savings up to 10%Based on 1.6% peak load reduction using critical peak pricing resulting in reduction in fuel costs and deferral of generation capacity

Utility Value/MM Customers*

$7MM/yr,, 45K tons of CO2 reduction+Based on 0.2% loss reduction and 0.5% CVR peak load reduction resulting in reduction in fuel costs and deferral of generation capacity

$11MM/yr, ~4.5 yr ROIBased on system-wide deployment of advanced transformer M&D resulting in transformer life extension and reduction in inspection, maintenance & repair costs

Prognostics for proactive equipment maintenance

Reduced outages and focused maintainers

Asset optimization

Reduce delivery losses in distribution systems

Less energy waste and higher profit margins

Delivery optimization

Manage peak via control of power consumption

Defer upgrades, optimize generation & renewables

Demand optimization

Reliabilityoptimization

Wide Area Protection & Control

Increased network performance & reliability

$7MM/yrBased on the deferral of the capacity upgrade of two 220kV transmission lines for 3 yrs (each line 30 miles long with a cost of upgrade of $1.5MM per mile)

Renewablesoptimization

Use of Forecasting & Smoothing

Compensation for production variability

Key step for meeting RPS targets, especially in areas with weak grids

Roadmap for a Smarter Grid

*Utility savings are approximate annual savings per one million customers+ $85/kW-yr peak generation capacity value

13

Smart Grid – The Transmission View

Transmission Grid has held itself Pretty good!

Source: Eric Hirst – Consultant www.Ehitst.com

15

2003 Blackout

The 2003 Blackout Thursday, August 14, 2003, at approximately 4:15 pm EDT.

Affected 55 million people in eight U.S. states, 1 province in Canada and

256 power plant went off-line!

> 4:10:38 p.m. Cleveland separates from the Pennsylvania grid.

> 4:10:46 p.m. New York separates from the New England grid.

> 4:10:50 p.m. Ontario separates from the western New York grid.

> 4:12:58 p.m. Northern New Jersey separates its power-grids from New York and the

Philadelphia area,

> 4:13 p.m. End of cascading failure.

> 85% of power plants which went offline after the grid separations occurred, most due to

the action of automatic protective controls.

16

The Cleveland separation

DOE/FERC Feb 2006 Report to Congress:

> 2003 Blackout due, in part, to “lack of awareness of deteriorating conditions.

> Technology now exists that could be used to establish a real-time transmission monitoring system…”

> In parallel: NERC identified the need for “Situational Awareness” of the Power Grid.

-170-160-150-140-130-120-110-100

-90-80-70-60-50-40-30-20-10

0

15:05:00 15:32:00 15:44:00 15:51:00 16:05:00 16:06:01 16:09:05 16:10:38Time (EDT)

Rel

ativ

e Ph

ase

Ang

le Cleveland West MI

Normal Angle ~ -25º

17

Wide Area Measurements & Control

Wide Area Measurements, Architecture

PMU PMU PMU. . .

PDC

PMU PMU PMU. . . PMU PMU PMU. . .

Regional Operation

NERC / DHS

Very High-speedDecisions

10-100 ms time frame20-60 Phasors/

Sec

High-speedDecisions

100 ms – 1S time frame1-15 Phasors/sec

PDC PDC

Human Monitoring / EMS > 1 sec1 Phasor/Sec

Wide Area Measurements, Monitoring Phasor Data Concentrators – Local/Regional Monitoring

19

System implementation, Visualization

PhaseAngle+30+20+10+00

-10-20-30

+30+20+10+00

-10-20-30

System Contour View

System Frequency View

. . . . .

Data CollectionReplication, Re-Transmission

Proficy

High Speed Applications

Data Rate:12 - 60

Measurements per Second

ICCP InterfaceEMS

OPC / SQL

Sub-PDC

20

Synchrophasors - Advanced Analysis & Control Applications

• Situational Awareness

• Under Voltage Load Shed

• MW/MVAR Oscillation viewing/detection

• Oscillation Pattern Analysis & Alarm

• Oscillation Damping

• Dynamic Line Rating

• Angle Check

•Load Duration Plots

• Measure, Detect, Take appropriate control actions

• Proactively eliminate possible Blackouts!

21

Special Protection Schemes(SPS)

NERC - North American Electric Reliability Council Defines SPS:

Automatic protection system (also known as a remedial action scheme) designed to detect abnormal or predetermined system conditions

Take corrective actions other than and/or in addition to the isolation of faulted components to maintain system reliability.

Actions may include changes in demand, generation (MW and Mvar),

System configuration to maintain system stability, acceptable voltage, or power flows.

22

Contingency Identification

CB1

-

Control Area 1

Generation

1

LINE1

XMER

BK-1XMER BK-2

XMER BK-3

LINE2

500 KV LINE

500 KV LINE

500 KV BUS1

500 KV BUS2

500 KV BUS1

345 KV BUS1

500

KV

BU

S1

345 KV BUS2

230 KV BUS

230 KV BUS

500

KV

LIN

E

500 KV LINE

345 KV LINES

230 KV BUS

XMERBK-4

CB2

CB3

CB4

EHV

LIN

ES

500 KV BUS2

BUS2

CB3

Control Area 2

Control Area 3

Generation

1

23

Network Architecture

Control Area 1Control Area 3

Control Area 2

44 44

Wide Area Network WAN (Intranet / Internet)

Link to Office LAN / WAN

Office PC using Internet Explorer

Office PC LAN

Corporate Intranet Web Server

δ1 δ2δ3

δ4

Control Area 2

δ1 δ2δ3

δ4

δ1 δ2δ3

δ4

Different “Tiers” of connection

Control Area 3

24

Distributed Generation

Distributed Generation

DG Types DG Growth Globally

↑23.3%

↑30.4%↑1.1%↑16.1%

↑22.4%

Source: Frost & Sullivan 2003

Challenges Involved in DG Grid Interconnection- Distribution system protection strategies for bi-directional power flows- Reactive power/ voltage control- "Islanding" issue- Low/no inertia for fast power balancing

26

Isolated Grid Challenges

• Frequency performance under large generation/load swings– Lack of inertia increases system sensitivity

• Integration of non-conventional energy resources– Desire driven by fuel costs and logistics– Intermittency of renewables– Low overload, short circuit ratings– Power rate limits

• Distribution protection and controls inadequate for distributed gen– Bi-directional power flows– Unit level voltage and VAR support– Fault current contribution– Island operation

• Supervisory controls needed to realize full operating potential– System-level energy optimization (electrical, thermal, loads)– Unit commitment and dispatch– Aggregation and system performance

Freq

uenc

y (H

z)27

Generation Controls

Conventional & Non-conventional Generation Control• Conventional generator: directly connected to the grid • Non-conventional generation: connect through Power Electronics (PE)

Major Control Functions• Volt/VAR Regulation• Power/Freq Regulation• Isochronous/Droop Regulation

• Inertial Response• Black-start Capability

Advanced PE Controls• Low/Zero Voltage Ride Through

- Ride through severe disturbances- Support grid recovery

• High voltage ride through• Virtual inertia

28

Distributed Generation Transfer Trip Control

Example:

1. Fault occurs on the distribution line.

2. DGT Control sends a wireless trip signal from the substation to the DG site.

3. The trip signal from the substation is received by a DGT Control at the DG site.

4. The breaker at the DG site trips open and disconnects the DG from the Utility grid.

5. The DGT Control at the DG site transmits breaker status info back to the Utility Substation

GE’s DG Trip Control offers fast & wireless transfer of trip signals and enables the Distributed Generator to disconnect itself from the grid.

29

Distributed Energy Resources/Microgrids

Relieving Grid Congestion - DG/DR/DER

•DG/DR/DER Distributed Generation/Distributed Resources/ Distributed Energy Resources - dispersed generations and energy resources at the MV and LV level. Examples include diesel genset, CHP, PV, Fuel-cell, energy storage, and dispatchable loads.

•Microgrid Microgrid is an architecture for aggregating multiple DER assets and managing them as a single entity like a virtual power plant. •A microgrid can connect to the power grid operated by utility companies, or it can exist in isolation. In the grid-connected case, power may flow in either direction between the the grid and the microgrid via the Point of Common Coupling (POCC).

31

Micro Grid Value Proposition

•Enable efficient integration of traditional generators with clean power•Minimize energy cost via optimized dispatch of multiple DER•Reduce operating cost by reducing manual operations and their complexities

32

Microgrid Control System

• Microgrid Control System• Microgrid Control System automates and optimizes the use of distributed

energy resources (DER) such as conventional generations, renewable-based generations, energy storages, and dispatchable loads.

• Optimization of a microgrid involves coordinating the timing and selection of dispatchable DER with the non-dispatchable ones (such as renewable resources) to minimize energy cost or emission cost.

Diesel

RenewablesOptimization

Reduced

Energy Costs

GHG Emissions

33

Optimal Dispatch

•Microgrid controller determines a set of dispatch decisions by applying the cost objective against the constraints, and the dynamic state of microgrid such as the current output power levels of generators, the input/output power levels and the state-of-charge of each energy storage unit, etc.•The decisions are translated into specific DER actions such as on/off control and power reference set-points. The optimization process is performed periodically to follow the evolving dynamics of the microgrid.

Constraints

System Status

Renewable Forecasts

Load Forecasts

Cost Optimization

Control Generators & Storages

34

Microgrid Control System

35

Bella Coola

Clayton Falls 2.12 MW Hydro

Bella Coola2.1/1.5MW

6.2 MW Diesel

Hagensborg2.6/1.7 MW

25 kV Distribution

Local HMI

Diesel Genset InterfaceHydro Generator Interface

Remote Monitoring

Microgrid Controller

Storage

Fuel Cell125 kW

3.3 MW-hr

Electrolyzer300 kW

Utility Service Vehicle

Flow orConventional

Battery125 kW / 400 kW-hr

Ethernet Switch

modem

Wireless Radio

Ah Sin Heek Diesel / Energy Storage Site

Microgrid Features:• Centralized Supervisory control to

optimize the use of renewables and minimize the use of diesel

• Wireless local area network• Hydrogen based energy storage

system• Capability to connect, monitor and

control the system remotely• Interfaces to all Microgrid elements

Bella Coola Microgrid Control System

36

Maui Project – Smart Grid

“Overarching DOE objective is to develop & demonstrate a open architecture distribution automation solution that aggregates DG, energy storage, & demand response technologies in a distribution system to achieve both T&D benefits.”

•DOE interest is on “reduction of distribution feeder peak demand by at least 15%” using a diverse mix of DG, storage, renewable energy, demand response

•Utility interest is to address the challenges of increased variability caused by wind and solar power.

>Proposed in July, 2007 to the DOE Office of Electricity

>Funded at over $14M over three fiscal years

37

Overview

30MW Kaheawa wind plant

2.7MW OceanlinxTM

Wave Power (proposed)

Kahului Power Plant

HC&S Sugar13MW Steam

New Kihei Sub (potential site)

Kuihelani Sub(potential site)

Maalaea Power Plant

Hawaii Natural Energy Institute

US Department of Energy

State of Hawaii

Hawaii Natural Energy Institute

US Department of Energy

State of Hawaii

38

TOPICS

Develop a Smart Grid controls and communication architecture capable of coordinating DG, energy storage and loads to:

• Reduce peak load by 15% relative to loading on the distribution circuit.• Mitigate the impacts of short-timescale wind and solar variability on the grid

39

MECO Power System

GE is working with MECO to develop dynamic and

production cost models to assess higher wind penetration

scenarios

Unit Type MWK1 Oil Steam plant 5

K2 Oil Steam plant 5

K3 Oil Steam plant 11.5

K4 Oil Steam plant 12.5

X1, X2 EMD Diesel 2.5

M1 – M3 EMD Diesel 2.5

M4 – M7 Cooper Diesel 5.6

M8 – M9 Colt Diesel 5.6

M10 – M13 Diesel Mitsubishi 12.5

M14 – M16 2 x GE LM2500 CT + Steam plant 58

M17 – M19 2 x GE LM2500 CT + Steam plant 58

HC&S Sugar Plant (Steam plant) 13

KWP Wind Plant 30

Unit Type MWK1 Oil Steam plant 5

K2 Oil Steam plant 5

K3 Oil Steam plant 11.5

K4 Oil Steam plant 12.5

X1, X2 EMD Diesel 2.5

M1 – M3 EMD Diesel 2.5

M4 – M7 Cooper Diesel 5.6

M8 – M9 Colt Diesel 5.6

M10 – M13 Diesel Mitsubishi 12.5

M14 – M16 2 x GE LM2500 CT + Steam plant 58

M17 – M19 2 x GE LM2500 CT + Steam plant 58

HC&S Sugar Plant (Steam plant) 13

KWP Wind Plant 30

40

41

Maui Project Schedule

Utility Energy Storage

Storage – Transmission Deferral

• Delay capital upgrades or Demand Charges• 2-3 hrs of storage • Cost targets are ~$500/kW, +$100/kWh• Trailer system could be viable in urban markets.

GoodNight Consulting sub-station photo NGK July 2004 : Na-S Battery System for peak shaving 57MWh, 9.6MW, 6 hrs

43

Utility Scale Storage Technology portfolio

•Mature • Lead Acid

• Ni-Cad

• Sodium Sulfur•

• (Pumped Hydro)

•Developing• Vanadium• Poly-Sulf-Bromide

• Na-NiCl

• Zinc-Bromide•• (Compressed Air)

EmergingCerium Zinc

Flow Batteries

44

Installed cost of storage

• Flow Battery Systems:• + Excel for >1 hour of

storage • + Good for daily cycle apps• (high cycle life, low maint)• + Very scalable (kWh -

MWh)• + Potential for new

chemistries• - Lower cycle efficiency

than conventional storage (pump and standby losses)

• - Less mature cost model and manufacturing (range of maturity for various technologies & manfc’s)

Estimated Installed Cost for 100kW-MW class systems

45

Impact of Policy

Source: Annual Energy Outlook 2009

GHG Legislation Magnifies the Need of SG

The Role of Generation Impacted by Policy

Reference No GHG Concern LW 110

258.7273.4

338.1

0

100

200

300

400

GW

Coal no CCSCoal with CCSOil / Natural GasNuclearRenewables

LW110-Lieberman and Warner (S. 2191) in the 110th Congress

Renewables represent over 30% under LW110

GW

Cumulative Additions to US Generating Capacity, 2008-2030, Three Scenarios

400

100

200

300

0

47

48

Demand Response Policy/Driving Energy Savings

Source: EIA

Demand Management Actual Peak Load Reductions 2002 - 2007

MW

*A Methodology for Estimating Large-Customer Demand Response Market Potential,LAWRENCE BERKELEY NATIONAL LABORATORY

FERC shall report to Congress estimates for a nationwide demand response potential in 5- and 10-year horizons, including state-by state data.

FERC shall develop a National Action Plan identify: technical assistance needed by states, requirements for a national communications program, & development/ identification of analytical tools, model contracts, and other “support materials” for use by customers, utilities, and demand response providers.

Energy Information Administration, Form EIA-861, "Annual Electric Power Industry Report."

Demand-Side Management Program Energy Savings, 2002 –2007

(Thousands of MWh)

Energy Independence and Security Act of 2007 (EISA). Demand Response provisions

Demand Response Programs-ISOs/RTOs Lead

Wholesale Markets DR Programs Improve System Reliability

Summer 2006 demand response contributions and summer 2007 program enrollments

Source: FERC 2007 Assessment of Demand Response and Advanced Metering

July , August 2006:

Estimates Indicate wholesale markets lowered system peaks between 1.4 & 4.1 % on peak days

*Open Access Transmission Tariff regulations in Order No. 890

NERC-wide:

2007 DR increased to 21.9GW from 2006 (20.7GW)

FERC* now requires RTOs, ISOs to Incorporate DR programs in their Planning process

49

Smart Grid Learning Series … next week

50

Session 1: The Smart Grid and its Benefits

Session 2: The Smart Grid… The Consumer View

Session 3: The Smart Grid… The Distribution View

Session 4: The Smart Grid… The Transmission View

Session 5: The Smart Grid… The View from Rural America