Developing a standards road map for smart grid Deployment in Australia. Mark McKenzie Rare Consulting

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1 Developing a standards road map for smart grid Deployment in Australia Mark McKenzie Rare Consulting

2 About this presentation In June 2011, Standards Australia was commissioned by the Australian Department of Resources Energy and Tourism to prepare a roadmap for the development of Australian Standards to support the deployment of Smart Grids in Australia The need for this work was identified during the preliminary planning work conducted for the Smart Grids Smart Cities project being rolled out in Newcastle, NSW. This presentation provides a overview of the approach that is being pursued by Standards Australia for development of the road map

3 Why are Standards required in the first place? Standards are increasingly being utilised as a vehicle for guiding the development of emergent green markets such as electric vehicles, renewable energy and smart grids. The developing nature of these industries bring significant risks for government, industry, and the wider community. Standards can be used to provide a guiding framework that can be used to manage key consumer risks and minimise early commercialisation risks for business and industry.

4 Principal Objectives To examine the degree to which Australian Standards are required to support the early introduction of Smart Grids in Australia by: 1. Addressing key public safety risks (and perceptions of risk) 2. Managing key consumer issues in respect of energy users in general, and smart grid users in particular. 3. Minimise early commercialisation risks for industry and government by providing a sound framework for continued industry investment in smart grid technologies. Recognising the dynamic nature of the current agenda, the process must not unnecessarily constrain innovation. Process must also take account of role of market regulations, infrastructure limitations, and policy.

5 Also a critical need to recognise importance international developments

6 The roadmap process is about assessing the requirement for standards not developing them 1. Identify all stakeholders 2. Issue & stakeholder analysis 3. Scoping study (strategic framework) 4. Validate strategic framework 5. Develop work plan Initiate discussion Strategic leadership Facilitate outcomes Need for new Standard Identified No Yes Assemble working group Publish Standard Is the traditional approach suitable? Prepare Working Draft Committee Review Public comment Refine draft & balloting

7 The first step involved the identification of stakeholders for participation in the Strategic Working Group (SWG) The stakeholder mapping process identified 18 key stakeholder groups, namely: Energy network operators Smart Grid Smart City project participants Australian appliance manufacturers Smart grid equipment suppliers Trade associations EV industry (vehicle supply and recharging) Privacy bodies Consumer organisations Business and Industry Energy Retailers Market regulator (AER) Market operator (AEMO) Utilities (e.g. gas and water) Telecommunication providers Training bodies Clean Energy Industry Australian research community Smart Grids Australia

8 The SWG will oversee the development of the Standards roadmap Meeting 1 Draft Road Map (September 2011) Presentation and discussion of the draft roadmap (Strategic framework) Meeting 2 Stakeholder Consultation Findings (November 2011) Discussion of the key outcomes of the stakeholder consultation on perceived issues and impact on the draft roadmap Meeting 3 Detailed Road Map (April 2012) Stakeholder review and sign-off of detailed roadmap for Standards Development, including identification of priorities.

9 Framework for consideration Smart grid Standards Roadmap (Australia) Why Standards? What priorities and why? Priority area A Priority area B Priority area C Priority area D What specific Standards and when? Objectives Priorities for Standards Standards Topics Action 1 Action 2 Action 3 Action 4 Action 4 Action 5 Action 6 Action 7 Action 8 Action 9 Action 10 Action 11 Priority area E Action 12 Action13 Action14

10 Methodology Desktop analysis of the industry and likely issues Initiation of dialogue with major stakeholders to identify draft issues and priorities Conduct of consultation with 2 nd and 3 rd tier stakeholders Finalisation of discovery process and documentation of key issues and priorities Analysis of issues relative to current national and international standards (i.e. gap analysis) Documentation of strategic approach for the Australian market (i.e. The roadmap) Validation of the roadmap with key stakeholders Finalisation of the roadmap and delivery to Australian Government for consideration

11 Total system approach to define the discrete role of standards in Smart Grid commercialisation SWG Emerging technology market Key commercialisation challenges Proposed strategic response to market development Market operation issues Policy and Legislative considerations + + Standards

12 Key issues under consideration 1. System Interoperability Communication protocols Appliance control protocols Information protocols Interface with smart meters Grid sensor design requirements Interface with inverters 2. Consistency of legacy standards To what degree do existing standards accommodate the transition to Smart Grids? What improvements in existing standards need to be effected? 3. Control and reporting protocols and procedures Common management interface Capacity to expand to incorporate future functionality Ownership of information and smart grid equipment

13 Key issues under consideration 4. Public safety and system resilience Failsafe provisions System reliability Connectedness of components and supply chain elements Maintenance of critical supply (i.e. activities that cannot be traded) 5. Data security and management Integrity of data (e.g. identity verification and accuracy of billing systems) Cyber-security considerations Hand-off protocols for supply chain element transfer (retailer to distributor) Security of data transmission 6. Standardization of installations Physical location of installation Relationship with legacy infrastructure (i.e. meters)

14 Key issues under consideration 7. Smart grid vocabulary Key definitions Terminology Scope and boundaries 8. Nature of the transaction Timing Transparency Role of the Actors 9. Skill requirements Minimum skill requirements for operators Training standards and skills certification procedures Vendor skill sets 10. Operational system requirements Procedures for combined telco and grid monitoring Minimum performance criteria for operations centres and staffing

15 Summary Standards are increasingly being used by government and industry to guide the development of emergent green markets such as smart grids and electric vehicles. These processes do not easily lend themselves to traditional standards process but require the conduct of an initial scoping step to identify needs, priorities, and key stakeholders (i.e. A roadmap). The process for the development of the Smart Grids process is utilising a proven formula applied for Electric vehicles in Australia. The roadmap process commenced in June 2011 and will conclude with the formalisation of the roadmap by 30 May The process will be closely aligned with similar international dialogues.

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