Westar Energy Smart Grid

June 23, 2009

What is a Smart Grid?

Supports Energy Efficiency

Modernization of Grid

Demand Response

Supports Renewable Generation

Support Distributed Energy Resources

Energy Efficiency

Large untapped resource - 50% load growth can be met with programs

Time based rates

Customer feedback via Home Area Network In home displays, Home Energy Management Billing Options such as pre-payment

Grid Modernization Existing

Substation protection Feeder automation Distribution automation Volt-VAR optimization

New Home area networking Distributed monitoring & control Distributed energy resources

Goal Integrate existing grid monitoring & control to new distributed & customer focused

resources

Requirements New generation of distribution management systems Pervasive & secure communications Advanced analytics Dynamic control

Demand Response Key element is dynamic energy pricing

Allows consumers to see and react to pricing before they use the energy

Studies show consumers are interested if they can save 10% or more

Demand response uses: Economic dispatch to reduce generation costs Socioeconomic dispatch where consumers respond for the

benefit of society as whole Reliability dispatch to reduce/eliminate service interruptions

Key Success Factor - Consumers will want something simple and accessible to interact with the grid. Set it and forget it.

Renewable Generation

Major sources Wind : 2008 US overtook Germany as world’s leading

source (25 of 121 total GW) 1000 MW of Wind in Ks by end of year

Solar: US expected to take world lead this year Issues

Distributed nature of supply Intermittency of supply Forecasting supply (availability, adequacy) Potential for decreased reliability

Distributed Energy Resources Micro-generation

Micro-turbines Fuel cells

Energy storage Ice energy storage for AC Rechargeable batteries

Plug in Electric Hybrids (PHEVs) Vehicle-to-grid = source for on-peak supply

& energy storage Goal of all distributed energy resources is efficiency,

demand distribution / peak shaving, environmental impact reduction & other ancillary services

Smart Grid Enablers Integrated Communications – Robust, integrated, two-way

communications Sensing and Measurement – Enhanced synchronized

distribution system measurement and monitoring Advanced Components – Power system devices that apply the

latest in materials, energy storage, and electronics to determine the grid’s behavior

Advanced Control Methods – Methods to monitor essential grid components and enable rapid diagnosis and timely, appropriate, response to any event

Improved Interfaces and Decision Support – Seamless, real-time applications that enable grid operators to make decisions quickly

Applications – Linking consumers to producers and all elements of the energy/resource value chain

Insert picture

9

10

Westar Smart Grid Components

Smart Meters

Customer Engagement

Meter Data Management

Outage Management System

Distribution Automation

11

Smart Grid Benefits Customer

Notification of outage and restoration Detailed energy usage information Manage energy usage Supportive of renewable and distributed

generation Dynamic time based pricing Personalized customer services, products and

programs Westar

Operational efficiencies Supports comprehensive energy plans Manage peak load

How does Smart Meter support Smart Grid? Distributed Measurement Nodes

Time synchronous interval data measurement for entire grid Sense & Measure today, control tomorrow

Outage & restoration notification Momentary outages, restoration efforts

Voltage monitoring & control Loss detection – theft and line losses Power quality monitoring & control Load flow & monitoring 2 way common, secure communications system to support

distribution automation monitoring & control Enables demand response solutions

PCT’s, DLC, HAN, IHD with command acknowledgement & verification

Recovery Act Opportunity

Smart grid investment program Awards from $500K to $200M Up to 50% DOE match DOE FOA rules pending ?? First filing deadline 45 to 60 days after

FOA Two year program Strict reporting requirements Shovel ready projects required

13

Opportunities IT Development – From Basement to Dryer Federal and State Policies/Incentives Meet Changing Customer Expectations Managing Cultural Changes Products and Services Inter-operability and Security Organization Readiness Future Technologies