Modernizing the Electrical Grid is Key

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Wanda Reder

Chief Strategy Officer, S&C Electric Company IEEE Power & Energy Society - President 2008-09

IEEE Division VII Director – 2014-15

São Paulo Brazil

Modernizing the Electrical

Grid is Key

IEEE International Electrical Information Technology Conference Naperville, IL

May 23, 2015

IEEE International Electrical Information Technology Conference Naperville, IL

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S&C Delivers Smart Grid Reality

Storage at Grid Edge 10’s of kW Substation Batteries 10’s of MW Graphics adapted from an EPRI Presentation Distributed Intelligence and Control Micro‐grids Solar Integration

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Overview

• Grid trends and drivers • Old grid challenges • Technology changes things! • Modernizing the grid:  Reliability, resiliency, flexibility  Microgrid accommodation  Storage and renewable avancement • Workforce preparedness

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Heightened Investor Demands Heightened Investor Demands Escalating Security Concerns Escalating Security Concerns Increasing Environmental Requirements Increasing Environmental Requirements Infrastructure is more prone to failure Infrastructure is more prone to failure

Grid Trends and Drivers

Growing Population, More Electronics Growing Population, More Electronics Technology Drivers • Sustainability • Carbon Management • Electric Transportation • Distributed Sources • Efficiency • Reliability

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Old Grid Challenges

 Expectations are changing  Vulnerabilities are increasing  Limited flexibility, awareness  Aging assets and people

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Recognizing the need for Power

Sources: “The Ampere Strikes Back: How Consumer Electronics Are Taking Over The World,” Energy Saving Trust, June 2007; “The Rise of The Machines: A Review of Energy Using Products In The Home From The 1970s to Today” Energy Saving Trust, June 2006; “Electric Power – The Next Generation: The Intelligent Grid,” CenterPoint Energy, April 2007

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Can We Afford To Not Change?

• Vulnerabilities are increasing  Climate Change  Aging Assets  Physical and Cyber security  Need for flexibility • Building for ≤ 1% of the time

‘Frankenstorm’ Sandy hits US

October 29, 2012

Grid modernization is a MUST for increased utilization, reliability

and resiliency!

U.S. Power Outages Affecting 50,000 Customers Caused by Extreme Weather

(Source: National Oceanic and Atmospheric Administration)

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Flexibility for Energy Changing Mix

Energy mix: 2011 - 2035  Natural gas: 21% to 40%  Coal: 49% to 25%  Renewables: 4% to 11% Infrastructure implications:

 Changes: how we make, move, and use power

 More flexibility

 Accommodate distributed renewables

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Technology Changes Things!

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Last year, Wal-Mart announced a partnership with SolarCity to equip California stores with solar panels and has long said it wants to power its stores using

100% renewable energy technologies.

Wal-Mart

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Google Map Snapshot of Ikea in Frisco, Texas

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Solar PV and Diesel Technology Power Cost Trends: 2001-2013

(Source: HOMER Energy)

Advanced Microgrids: Building the Business Case, Navigant, Feb 2015

PV Costs Trends and Market Growth

Global Solar Market in excess of $100 Billion

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David Crane, CEO, NRG April 30, 2014

Crane expects many American residences to go “off the grid” within two years as reliance increases on natural gas and solar panels. He said it is easier and and cheaper for many more residents to have

devices that convert the natural gas into electricity, to add solar panels to homes and to "tell the electric company to get lost." The

trend will start in the Northeast and spread nationwide, he said.

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Old Grid

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Modern Grid Improves Reliability

• Interrupt fault current • Segments load • Two‐way sensing • Adaptive protection • Detects power quality events 15 IntelliRupter® _PulseCloser

TripSaver® _{II Cutout Mounted Recloser}

• Single phase • Avoid truck rolls

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Modern Grid Accommodates Microgrids

16 Microgrid: • Interconnected loads and distributed energy resources with defined electrical boundaries • A single controllable entity that can connect and disconnect from the grid What’s new? • Renewables • Storage MW Gen

Bulk supply connection (sub-transmission) Partial Feeder Micro-grid Gen Single Customer Microgrid Feeder Other Feeders Full Feeder Microgrid Full Substation Microgrid Distribution Substation Gen Gen Gen

Bulk supply connection (sub-transmission) Partial Feeder Micro-grid Gen Single Customer Microgrid Feeder Other Feeders Full Feeder Microgrid Full Substation Microgrid Distribution Substation Gen Gen Source: EPRI

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Benefits of Storage and Renewables

17 • Smooth intermittency • Minimize reverse power flow, keeps voltage within limits • Store output and release coincidental with local load • Control ramp rate ‐4 ‐3.5 ‐3 ‐2.5 ‐2 ‐1.5 ‐1 ‐0.5 0 0.5 1:55 PM 2:09 PM 2:24 PM 2:38 PM 2:52 PM 3:07 PM 3:21 PM 3:36 PM Power(kW)

Source: Thomas Bialek SDG&E June 2014

Net Load

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Modern Grid Uses Energy Storage

• Storage offers great potential for grid: cost and useful life have been barriers • Technology is changing! – Lithium Ion, has made great strides. – Becoming affordable

• Brattle report:

– Analysis shows that ~5,000 MW of distributed electricity storage is most cost‐effective across ERCOT at $350/kWh storage cost. – Payback dependent on regulated investment deferral and merchant/market value of the energy Community Energy Storage 25 kW; 50 kWh Lithium-Ion Mid-Sized Energy Storage 250 kW; 250 kWh Lithium-Ion

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Recognize Competency Needs

• Over 60% of the Electric and Gas employees will leave the workforce in the next decade • Need to attract and educate talent for the future Smart Grid Engineering Automatic Controls Information Technology Standards Power Electronics Computer Engineering Marketing, Economics Systems Theory Energy Conversion Public Policy Signal Processing Transmission & Distribution Engineering Engineering Physics

Adopted from Source: Professional Resources to Implement the “Smart Grid”; Gerald T. Heydt and others. 2009 IEEE Power &

Energy Society General Meeting

Security Big Data Analytics

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Computing Disciplines for Modern Grid

• Computational intelligence • Cyber security and resilience • Data analytics and databases • Virtual computing • Visualization • Modeling and simulation • Self‐integrating systems • High‐performance computing • Messaging‐oriented middleware • Software verification and validation • Distributed multiple‐agent architecture 20

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5/23/2015 • Recognize the trends and drivers • Enable the future with a modern grid • Storage, renewables and distributed intelligence are key to technical advancement • Future workforce opportunities • Much more to be done

Conclusion for Grid Modernization

Wanda Reder Chief Strategy Officer S&C Electric Company

[email protected]