Rapid Prototyping Reveals
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1 Rapid Prototyping Reveals The Key to Unlocking Electricity Investment, t Innovation, and Improvements September 15, 2010
2 Galvin Initiative Background Started by former Motorola Chairman Robert Galvin in response to electricity system failures and waste 0 Seeking to create jobs by attracting investment that transforms today s grid to meet consumers needs The initiative s goal is to develop, demonstrate and open source an improved design for the delivery of electric power, a design that: 0 will not fail the consumer, or Perfect Power 0 is based on smart microgrid, or community focus 0 is a journey of continuous improvement 2 Copyright The Galvin Project. All rights reserved.
3 Galvin Initiative Motivation The economic vitality of our Nation s communities and utilities depends upon improving electricity service 0Drive out waste to reduce costs 0More reliable 0More efficient 0Less polluting, emphasis on carbon 0More competitive Improvements paid for by attracting investment into innovation that eliminates waste 3 Copyright The Galvin Project. All rights reserved.
4 Investment Paid for by Eliminating Waste Waste Type Wasted $, Billions Wasted, /kwh Wasted Fuel ~ $50 ~ 1.0 Market Inefficiency ~ $80 ~ 2.0 Outages/Repair ~ $100 ~ 2.5 Wasted Capital ~ $40 ~ 1.0 Emissions Cost ~ $65 ~ 1.5 Water Cost ~ $10 ~ 0.2 Total Waste ~$260 ~ *8.0 4 Copyright The Galvin Project. All rights reserved.
5 Galvin Initiative Strategies Provide new thinking and knowledge through research on innovative policies and programs 0Empower consumers/communities 0Unleash innovation and investment - jobs 0Strengthen utilities Work with stakeholders to develop innovative perfect power prototypes or models 0Rapid prototyping to test designs, technologies, and policies Illinois Institute of Technology New Mexico Mesa del Sol Development 0Long term energy plans that result in continuous improvement 5 Copyright The Galvin Project. All rights reserved.
6 Why Change Anything? Today almost everything we operate depends on electricity it 0Furnace won t start without it Critical to life safety 0Health care, heating, cooling, water 050% of NY hospitals lost power during 2003 blackout 0Long outages deplete backup fuel Outage and power quality induced economic losses increasing Consumers and businesses are demanding improved conservation and environmental performance (LEED, Energy Star, etc ) 6 Copyright The Galvin Project. All rights reserved. 6
7 IIT Microgrids Perfect ect Power Concept Prototype Smart Switch Smart Loop IIT Aggregation Program Smart Meter 6 per kwh vs. ~ 9perkWH 98% carbon free, 60% hydro Revenue from services ComEd Real-Time Rate 6/kWh vs. ~ 9/kWH 10 MW Backup, CHP, Solar, UPS 7 Copyright The Galvin Project. All rights reserved.
8 Naperville Perfect Power Project Average interruption duration (min) per customer per year 8 Copyright The Galvin Project. All rights reserved.
9 Rapid Prototyping Grid Transformation Microgrid Smart Switch Smart Switch Local Substation Area Area Substation Substation Renewable, CHP Clean DG Backup/DR Central Power 9 Copyright The Galvin Project. All rights reserved. Natural Gas 9Transmission
10 What will Perfect Power Do? Improve reliability by 70% or more 0Self healing distribution 0Redundant distribution 0On-site generation, UPS, and back-up power 0Protected distribution (enclosed, underground) Lower Cost 0Empower p consumers with pricing, automation, and meters 0Value consumer ancillary services 0Eliminate waste and become more efficient Improve conservation by 50% and lower carbon by 60% 0Attract investment in cleaner generation and efficiency Attract investment and innovation 10 Copyright The Galvin Project. All rights reserved.
11 Policy Reform is Needed to Engage Innovators and Attract Private Investment t Clean generation: wind, biomass, geothermal and waste heat recovery Intelligent home automation and metering Intelligent building automation and controls Advanced lighting Advanced on-site electricity production Solar thermal and PV Intelligent systems and controllers that integrate loads and generation to operate seamlessly based on pricing and ancillary service payements 11 Copyright The Galvin Project. All rights reserved.
12 Policy Reform Best Practices 12 Copyright The Galvin Project. All rights reserved.
13 Attracting Investment in Generation, 1996 to 2008 Total 1996 Added, GW Invest, $ billion Unused Capacity Natural Gas Simple High Eff Gas, CCCT % Coal 313 7* 30 25% Nuclear % Hydro NA Other Renewable NA Total Generation ~680 ~250 ~680 % Change 37% Unused capacity of 3 billion MWh vs. total U.S consumption of about 4 billion MWh Source EIA Annual Energy Outlook 1999 and 2010 * NETL Report, 13 Copyright The Galvin Project. All rights reserved.
14 Attracting Investment in Clean Generaiton Non-Hydro Renewable Generation (GWh) Other Southern States Top 10 States Total -1,850 Total 57,000 % West Virginia 594 Texas 16,754 29% South Carolina 527 Missouri 422 Iowa 6,502 11% Tennessee 127 Minnesota 4,495 8% North Carolina 62 California 3,410 6% Kentucky 30 Washington ,112 5% Georgia 8 Oregon 3,003 5% Virginia -111 Colorado 2,820 5% Maryland -287 Arkansas -308 North Dakota 2,758 5% Louisiana -495 Illinois 2,709 5% Mississippi -664 Oklahoma 2,149 4% Alabama -825 Florida -938 Total renewable generation U.S. = 330,000 Source 14 Copyright EIA, The Galvin Project. All rights reserved.
15 Engage Leverage Local Governments Local governments effectively manage all infrastructure except electricity and gas Local governments deal with outages Inefficiencies result from: 0Lack of coordination with local infrastructure projects 0Lack of local improvement plans Utilities are not held accountable to local governments for specific performance outcomes and metrics 15 Copyright The Galvin Project. All rights reserved.
16 Policy Opportunities Form or expand the role of state or regional power authorities to pursue power in competitive markets using PPA s 0Shift risk from consumers to markets 0Unleash innovation Hold utilities accountable to local governments 0Require R i that performance metrics be reported to 0Retain a portion of collected rates locally 0Allow local governments to use rates to develop local improvement plans Consider performance based rate making 0Develop robust set of performance metrics/outcomes 0Tie utility earning to improved performance 16 Copyright The Galvin Project. All rights reserved.
17 Principles of Change A group of leaders must step outside the crowd and advocate what is right The proposed change must be accompanied by a candid acknowledgment of the deficiencies of the existing structure or governance Change must come from noble purposes The application of enlightened thinking the way of thinking that is free, open, objective, rational, and tolerant versus a thinking that is self centered and unduly traditional. Resistance to existing restrictive ways is a natural right, is in order, and is essential. The constructive ti roles of commerce and property must be embraced. 17 Copyright The Galvin Project. All rights reserved.
18 Daniel Burnham famously declared that leaders should Make big plans; aim high in hope and work, remembering that a noble, logical diagram once recorded will not die. Perfect Power prototypes provide a noble, logical diagram for each city, major development, or county. 18 Copyright The Galvin Project. All rights reserved. - Technology Solutions 18
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