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June 15, 2011 Susan Covino's presentation from America’s Sustainable Future: How U.S. Cities Are Making Energy Work, an invitational conference of public-private partnership efforts from U.S. cities pursuing innovative energy management and smart grid initiatives. The assembled leaders in industry, research and policy-making will explore the diverse energy strategies emerging in Philadelphia and across the United States. “We’re really looking forward to both learning from the great examples set by other cities represented in the conference, and showing off the groundbreaking work happening right here in Philadelphia,” says Laurie Actman, Viridity Energy’s director of strategic partnerships and public policy. “With smart ideas and smart policy, we should be able to build support for smart grid projects and microgrids at the federal, state and local level.”"Energy technology is changing at such a rapid pace, it's crucial to examine who's doing it right in smart grid and microgrid projects all around the country," says Eugenie Birch, Penn IUR co-director. "With the right policy moves—which we'll be exploring at the conference—Philadelphia can be a national leader in energy innovation," noted Susan Wachter, Penn IUR co-director.
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PJM©2011www.pjm.com
America’s Sustainable Future
Susan Covino
Senior Consultant, Market Strategy
Smart Grids and MicrogridsPhiladelphia, PAJune 15, 2011
PJM©20112www.pjm.com
United States
PJMEastern
Interconnection
PJM as Part of the Eastern Interconnection with ATSI Integration
KEY STATISTICSPJM member companies 700+millions of people served 58peak load in megawatts 158,448MW of generating capacity 180,400MW of Load Management 11,822miles of transmission lines 61,200GWh of annual energy 794,335generation sources 1,365square miles of territory 211,000area served 13 states + DCInternal/external tie lines 142
• 24% of generation in Eastern Interconnection
• 27% of load in Eastern Interconnection• 19% of transmission assets in
Eastern Interconnection
20% of U.S. GDP produced in PJM
As of 6/1/2011
PJM©20113www.pjm.com
Components of Reliable Electricity Provided by DR• Energy
– Real time flow of electrons where demand = supply
– $2,933,761 paid to DR in 2010 for Economic
• Capacity– 3 year forward market to assure capacity adequacy
– $512,300,658 paid to DR resources in 2010
• Synchronized Reserve– 10 min. reserves when largest unit trips off-line
– $5,319,120 paid to DR resources in 2010
• Regulation– 5 min. reserves maintain frequency at 60 herz
– $0 paid to DR resources in 2010
PJM©20114www.pjm.com
Energy Efficiency Participation in the Capacity Market
• Permanent, non-dispatchable and measureable reduction in the site’s peak load
• Performance hours are 2:00 p.m. through 6:00 p.m. summer weekday afternoons (6/1-8/31)
• Energy Efficiency Resource (EE) must exceed building codes and appliance standards known at time of commitment
• Revenues paid to EE for maximum of 4 planning years (EE then reflected in auction forecast)
• End-use site may have one CSP for EE and another CSP for DR
PJM©20115
Smart Grid – Two-way Communications and Control
Generation
Transmission & Sub-transmissionDistribution
Customer
Smart Metering, Demand Response, PHEV, Energy Conservation and Distributed Resources
Smart Metering, Demand Response, PHEV, Energy Conservation and Distributed Resources
Substation AutomationSubstation Automation
Distribution AutomationDistribution Automation
SCADA and Phasor MeasurementsSCADA and Phasor Measurements
The Smart Grid is realized by merging data from these areas of automation to achieve a total end-to-end systems view by integrating information technology and operational technology.
Energy StorageEnergy Storage
System Operator
PJM©20116www.pjm.com
Evolution of Demand Response to Price Responsive Demand
• Interruptible load was DR 1.0– No response at all to prices, but response as the retail
supplier/distributer needed it as a capacity resource
– Treats DR as supply-side from planning perspective
• Currently wholesale/retail paradigm is DR 2.0– Responses to wholesale market prices and emergency
events = supply-side resource
– Little integration and coordination with actions at the retail level as CBL and LMP act as a proxy for dynamic retail rates
• Price Responsive Demand is DR 3.0– Integrates wholesale and retail prices
– Treats DR as a demand-side participant
www.pjm.com
PJM©20117www.pjm.com
Smarter Grid - Summary
PJM©20118www.pjm.com
Demand Response and Energy Efficiency Reference Material
• Market rules for Demand Response– Manuals 11 and 18 (RPM/capacity market) – http://www.pjm.com/documents/manuals.aspx– http://www.pjm.com/markets-and-operations/rpm/rpm-
auction-user-info.aspx
• Market rules for Energy Efficiency participating in RPM – Manual 18B
• Monthly Load Response Activity Report– http://www.pjm.com/markets-and-operations/demand-
response/dr-reference-materials.aspx
• Susan Covino, 610-666-8829, [email protected]
