Smart Grid Overview How the smart grid will give customers the tools to create the new future for electricity use.

Transcription

1 Smart Grid Overview How the smart grid will give customers the tools to create the new future for electricity use. Presentation to California Municipal Utilities Association Paul Lau Assistant General Manager Customer, Distribution and Technology Sacramento Municipal Utility District

2 About SMUD 595,076 customers Residential accounts: 526,980 Commercial accounts: 68,096 2,007 employees 900-square-mile service area Seven member elected Board of Directors 6th largest community-owned electric utility in the nation Committed to a high level of customer satisfaction

3 SMUD s vision is to empower its customers with solutions and options that increase energy efficiency, protect the environment, reduce global warming, and reduce the cost to serve our region.

4 Embarking on a New Journey In 2009, we conducted a substantial number of Focus Groups and Community Meetings SMUD customers told us they want: Rates that are stable and low Exceptional customer service New tools to manage energy usage More transparency about what they are paying for and why We took this knowledge and began an extensive strategic planning effort with the Board and staff to lay out a new direction for SMUD There was a unique opportunity for customers to participate in creating the future for electricity use, but it would take a smart grid

5 SMUD s Smart Grid Vision A comprehensive, regional smart grid that extends from electric generation to the smart meters of all SMUD s customers. The smart grid will utilize innovative technologies to: Improve the electric system s reliability for better customer service Offer customers more control over the impact of rising energy prices in the electricity marketplace. (i.e. dynamic pricing programs) Link smart meters and Home Area Networks with SMUD s operations to create new energy efficiency and demand response programs Significantly reduce ongoing operational costs to help keep rates low Enable SMUD and our customers to reduce impacts on the environment Support economic development efforts that will bring new jobs

6 Funding for our Smart Grid Vision Distribution Automation ($55.0M) Smart Meters Consumer Behavior Study ($10.5M) ($142.2M) SMUD s vision was a $307.7M integrated project. The DOE Investment Grant created the perfect timing to utilize federal dollars. We received $127.5 million. Technology Infrastructure ($27.2M) Cyber Security ($5.3M) Customer Partnerships ($47.1M) Demand Response ($20.4M)

7 SmartSacramento Smart Meters Goal: Install communication network and 615,000 smart meters Status: Network installed and 200,000 meters Key items: Meters are the foundation and connect customers to the smart grid They are the first impression of the smart grid--make it FANTASTIC This is an education process: customers must understand why Tell your story: 116 presentations to the community, 72 to employees Customers want confidence in a solid vision and know you are there for them Let customers know this new technology will open options for everyone 95% positive customer response to smart meter installations

8 SmartSacramento Pricing Pilot Goal: Conduct research and develop a consumer behavior study to test dynamic pricing with technologies that will engage customers Status: Consumer Behavior Study Plan under DOE review Key items: Well vetted research plan gives strong foundation for DOE study with scalable results. Customers want pricing that best fits their lifestyles. Give options. Get feedback. Maintain or increase customer satisfaction by offering tailored pricing choices. Use in-home technologies to introduce Time of Use pricing & Critical Peak pricing. Measure impacts of various program offerings on daily kw, summer kwh & event kw. Offer multiple enrollment options: Customers don t want to be told what to do. Continue to test customer s acceptance of what you are offering.

9 SmartSacramento Customer Services and Tools Goal: Develop new tools for customer education and engagement around electricity usage. Status: Established roadmap for customer engagement; launched Yesterday s Data Today pilot. Key items: Spend time considering how customers will interact with your utility s pricing information. Next step will be testing Home Area Network (HAN) devices in customer s homes. Then - What apps do we need for cell phones? Finding the best methods to communicate and engage customers is the challenge. We want a consistent & cohesive customer experience.

10 SmartSacramento Partnership Projects Goal: Partner with four government customers to install and implement technologies that will demonstrate what is achievable with the smart grid. Sacramento County Status: Customer contracts signed and design work is completed Key items: Improvements in interoperability between energy consuming systems on the customers side of the meter California State University Sacramento Facilitating energy efficiency and operational improvements with four of SMUD s largest public customers Having specific data on new programs and services enabled by smart grid technology to share with private sector customers Use the data to replicate and scale programs to fit the need of other customers SMUD State of CA General Services Los Rios Community College District

11 SmartSacramento Demand Response Goal: Develop a consolidated Demand Response platform to support dynamic energy pricing options, customer demand response programs, commercial and industrial automated demand response, and manage electric vehicle load. Key Items: Deliver price signals to customers through the Smart Meter network and internet to facilitate management of their bills Allow customers to manage their bills by participating in load management or load shifting programs Manage the impacts of electric vehicle charging on peak loads and distribution system constraints Reduce the need for peaking resources Provide emergency response capability at the feeder, substation, and system level.

12 SmartSacramento Distribution Automation Goals: Automate switching to reduce outage impacts Enable conservation voltage reduction for energy savings Implement Volt/Var optimization to reduce system losses Key Items: Two way communication for the 1 st time Installation of Bolt-On application to existing EMS (complete) Developing control algorithms (complete) Substation Retrofit of 35 subs (4) Automate kV circuits = 15.5% Automate 12 69kV circuits = 22% sub-transmission

13 SmartSacramento Technology Infrastructure Goal: Manage the large increase in data and system interfaces required to operate a smart grid, and the development of new customer programs. Status: Enterprise Service Bus installed and Customer Relationship Management contractor chosen Key items: All the software programs must be fully integrated Consider how to take advantage of this massive data for new customer programs Need to reduce the number, size, and complexity of interfaces between systems, to lower costs and improve customer service Integrating over 150 customer business processes and providing an auditable workflow will help us measure, then lower costs Giving Customer Service Representatives a real time view of electricity usage will help to better answer customer questions

14 Building synergy for a smart grid Deep Dive Goal: Pair SmartSacramento Grant with another $20 Million in R&D projects to create the demonstration of an end to end solution Energy Storage ($11.1) Accelerate renewables & waste biomass ($2.2 M) High Penetration PV ($2.1 M) Micro Grid ($1.6 M) Electric Vehicles and Infrastructure ($3.2 M) Residential Information and Controls Study ($0.4 M) $20.6 Million in R&D grants for $76 million in projects SMUD s contribution is $8.3, the remainder comes from third parties

15 EPRI Smart Grid Partnership: Collaboration creates better research results and adds value to Industry

16 SmartSacramento Project Timeline Smart Meters AMI Consumer Behavior Study Demand Response Customer Applications Distribution Automation Cyber Security Smart Grid Technology Infrastructure Integration

17 Questions?

18 Back Up Slides

19 Some R&D Grants Grants from DOE, CEC and CPUC Energy Storage ($11.1) Accelerate renewables & waste biomass ($2.2 M) High Penetration PV ($2.1 M) Micro Grid ($1.6 M) Electric Vehicles and Infrastructure ($3.2 M) Residential Information and Controls Study ($0.4 M) $20.6 Million in R&D grants for $76 million in projects SMUD s contribution is $8.3, the remainder comes from third parties

20 Storage for Grid Support DOE Grid Support Storage Demonstrations Grant ($12M) Goal: Install two Premium Power 500kW/6 hours zinc bromine flow batteries systems. Operate them as a fleet of Distribution Assets Benefit Metric Sacramento Fleet Peak load reduction Peak Load 5-10% T&D loss reduction T&D Losses 2% Reduced cost of power interruption Reduced damages as a result of lower GHG/carbon emissions Reduced cost to serve peak energy (energy arbitrage) CAIDI/SAIDI/SAIFI improvements MWh served by renewable sources Hourly marginal cost data 10% TBD 70% Anticipated Benefits: Will firm renewables, reduce peak load and improve reliability Quantifying costs and benefits of this storage deployment to gain insights to broader application for SMUD

21 SMUD PV & Smart Grid Pilot at Anatolia Development DOE High Penetration Solar Development Grant ($4.3M) Anatolia SolarSmart SM Homes Community 2kW PV systems Installing 15 RES and 3 CES units Installing utility and customer portals to monitor PV, storage, customer load Benefits: Will firm renewables, reduce peak load and improve reliability Demonstrating communication and control of PV and storage inverters through AMI Sending price signals to affect changes in customer usage Quantifying costs and benefits of this storage deployment to gain insights to broader application for SMUD