GRID MODERNIZATION DOE ACTIVITIES. Jay Caspary, Senior Policy Advisor U.S. DOE Office of Electricity Delivery and Energy Reliability

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1 GRID MODERNIZATION DOE ACTIVITIES Jay Caspary, Senior Policy Advisor U.S. DOE Office of Electricity Delivery and Energy Reliability

2 We have a power grid that wastes too much energy. President Obama 1/24/12

3 Outline Rapid Response Team for Transmission Interconnection-wide Transmission Planning Grid Tech Team (GTT) Initiative Concluding Remarks about Transmission

4 Rapid Response Team for Transmission The federal Rapid Response Team for Transmission (RRTT) continues its dual mission: 1) Near Term: to work with 7 pilot projects to capture lessons learned and best practices regarding transmission permitting and siting processes 2) Long Term: to implement institutional changes to transform the way transmission is sited and permitted The purpose is to improve efficiencies and communication among federal agencies, as well as with state, local, and tribal governments on current and future transmission projects.

5 RRTT Projects INSERT MAP

6 RRTT Status Update The RRTT s functions now fall under a larger umbrella set up through the President s Executive Order on Infrastructure Permitting ( and have recently included the following: Weekly coordination calls with pilot project managers and resource agency field staff Monthly coordination calls with pilot project applicants DOE s work on regulation implementing Section 216(h) of the Federal Power Act which is intended to improve the efficiency of Federal review and permitting for interstate transmission projects. Transparency of transmission permitting through the ETrans website: Transmission Training for RRTT staff Consideration of Lean Six Sigma to find efficiencies in internal processes Implementation of the West Wide Energy Corridor Litigation Settlement Agreement over the next twelve months through a BLM/FS/DOE working group, including gathering stakeholder input to refine, add, and delete corridors to improve their utility for project developers, government agencies, and other participants.

7 Highlights from Interconnection-wide Planning Studies East Two new organizations established: Industry-based Eastern Interconnection Planning Collaborative (EIPC), and state-based Eastern Interconnection States Planning Council (EISPC) Key products: First-ever rollup of 10-year plans prepared by Interconnection s 26 Planning Authorities Phase 1 report: 8 20-year macro-economic futures, with 72 sensitivity cases Phase 2 report (in prep): 3 detailed 20-year transmission build-out scenarios Eastern EZ mapper tool an electronic energy resource atlas that states and others can use to analyze possible energy zones, transmission routes, pipeline routes, etc

8 Highlights from Interconnection-wide Planning Studies West Builds on earlier work by Western Electricity Coordinating Council (WECC) and Western Governors Association (WGA) Key products: 2011WECC 10-Year Regional Transmission Plan 2013 WECC 10- and 20-Year Regional Transmission Plans (in prep) Creation of West-wide environmental and water consumption information for use in transmission planning analyses Creation of a GIS-based long-term capital expansion planning tool

9 Highlights from Interconnection-wide Planning Studies ERCOT Key products: Improved tools for evaluation of resource and transmission expansion futures and options BAU resource expansion future and related sensitivities More robust stakeholder participation process (under development) Incorporation of demand-side resources, solar and geothermal resources, storage technologies, and electric vehicles into ERCOT s long-term planning tools and processes (under development)

10 GTT Vision of the Future Grid A seamless, cost-effective electricity system, from generation to enduse, capable of meeting all clean energy demands and capacity requirements, while allowing consumer participation and electricity use as desired: Significant scale-up of clean energy (renewables, natural gas, nuclear, fossil with CCUS) Allows 100% consumer participation and choice (including distributed generation, demand-side management, electrification of transportation, and energy efficiency) 100% holistically designed (including regional diversity, AC-DC hybrid configurations, and centralized-decentralized control) Accommodates two-way flows of energy and information Reliable, secure, and resilient

11 GTT Modernization Drivers & Strategy

12 DOE GTT Strategic Levers Critical DOE Roles Convener of diverse stakeholders Aggregator and disseminator of unbiased information Provider of technical expertise and analytical capabilities Key Elements of GTT Strategy RD&D activities are focused on overcoming the technical challenges identified through workshops on grid challenges Initiatives are focused on overcoming the institutional challenges identified through workshops on grid challenges Regional engagements are extensions of initiatives that require recognition of regional differences and sensitivities to State and local jurisdictions

13 Holistic Systems Perspective Institutional issues and solutions must be considered in conjunction with these technical challenges

14 Strategic Framework Visibility to see an event Understanding to know what is happening Flexibility to do something appropriate in response

15 Potential Grid Modernization Goals Visibility Goals Deployment of PMU functionality at all substations > 230 kv Visibility of whole interconnection to appropriate control rooms at PMU rates Increase deployment of sensors (including AMI) on distribution feeders Energy use data will be accessible to utilities and customers Understanding Goals Harmonized and accessible databases of grid assets for planning and operation Development of operator and planning tools that utilize improved methodologies (stochastics, forecasting, parallel processing, etc.) Development and validation of models for new technologies and systems integration Development of advanced energy/distribution/outage management systems Flexibility Goals Increase deployment of power controllers on the transmission system Increase deployment of controllers/smart devices on distribution feeders Expand the use of demand side resources to provide flexibility Expand the use and capabilities of thermal units to provide flexibility

16 GTT Near-Term Priorities Initiatives Improving Situational Awareness (Visibility) Planning Database Standardization (Understanding, Visibility) RD&D Activities Grid Metrics Development (Understanding) Electricity Systems Hub (All) Next Generation Tools and Data for Distribution Systems (All) Interface Tools for Advanced Grid Modeling (Understanding) Advanced Power Flow and Protection (Flexibility)

17 GTT Next Steps and Summary Next Steps Proceed with near-term initiatives, associated regional engagements, and workshops on grid challenges Summary Utilizing the convening power of government, the capabilities and expertise within DOE, and targeted RD&D investments and initiatives, we will build collaborations and catalyze the industry to enhance the visibility, understanding, and flexibility of the electric power system to achieve the vision of the future grid

18 Transmission represents only a fraction of a consumers total energy bill (5-10%) enables and defines markets can no longer be an undervalued asset since it provides tremendous benefits in reducing congestion costs, lowering capacity margins, improving the value of diverse/variable resources, enhancing grid efficiencies and dynamic performance outages to perform rebuilds can be very costly to consumers, well beyond E&C costs is aging infrastructure in existing ROWs that could provide tremendous value and capability as it is replaced and rightsized, where appropriate

19 Concluding Remarks Aging of the bulk power system s infrastructure is both a threat and an opportunity. Proactive steps are required to get the best lines in the best corridors. A process is needed that will identify key corridors through sound analytics based on good data. DOE is taking steps to facilitate better models and broader planning consistent with its charter and FERC Order 1000 while leveraging existing institutions and processes Standardization should start with industry adopted unique substation naming conventions for bulk power supply facilities to facilitate consistency across various applications and tools.

20 Concluding Remarks (con t) To facilitate more effective long range planning, equipment condition (remaining life) and corridor capabilities for critical facilities needs to be collected. Standardization of data is key not only for improved operations and planning, but also better research, innovation and more efficient and effective markets. Development of a solid bulk power industry dataset is a critical first step toward creation of better performance metrics and tools needed to design and manage the 21 st century electric system.