Smart Grid Enabling a Sustainable Energy Future Smart Grid Technologies Workshop Prof Deepak Divan Director, Intelligent Power Infrastructure Consortium School of Electrical Engineering Georgia Institute of Technology 777 Atlantic Drive NW deepak.divan@ece.gatech.edu Atlanta, GA
Why a Smart Grid? Energy Information Agency in 2004 still projected Business As Usual (BAU) for 2030, with low penetration of renewables. Generation No near-term limits to growth. Transmission investment lagged load growth for decades. Loss of vertically integrated utilities, NIMBY, free-riders and delays in building new lines. Utility industry investment in R&D is <1% of revenues. Electricity is regulated, is an entitlement, is working reliably and providing low cost energy! Smart Meters, Outage Management Systems, GIS, Demand Side Management, Distribution Automation, Energy Storage, Phasor Measurement Units, FACTS - All commercial technologies. Utilities have been gradually implementing these technologies. So why all the excitement about Smart Grid? If we maintain BAU, but implement the Smart Grid to improve reliability from 3-9 s to 6-9 s, or to reduce the probability of a large scale outage, or to allow consumers to turn-on and off their appliances remotely only one thing is sure. We will have higher cost of electricity. But something has changed! $7.5 Billion will be spent over the next few years on Smart Grid related projects. The media is full of the Smart Grid. The President talks about the Smart Grid. Is it the same-old under a new name?
Energy A World in Transition RPS mandates, GHG limits, carbon cap & trade, grid parity for wind/solar Wind and solar fastest growing generation. Reaching RPS levels above 15% will be a challenge giving renewable location and variability. Carbon tax or cap & trade will have major impact on energy industry and automotive sector if all carbon costs are accounted for. Automotive industry running into a brick wall global demand and supply limits Biofuels: Scaling issues and environmental impact EV/PHEV: Battery costs and charging infrastructure Energy independence and security Oil imports of $240 B/year and geopolitical instability Sufficient coal and natural gas for hundreds of years Climate change Copenhagen meeting in Dec 2009 IPCC targets 80% reduction in CO2 emissions by 2050 Stimulus funding sweetens the pot, driving activity Picture is not clear. Risk of doing something is high. Risk of doing nothing is higher. Business As Usual will not work.
Four Transportation Scenarios Fossil Fuels Sustainable Energy ICE Transit Electric Transit
Scaling a Sustainable Transportation Future: Biofuels or Solar? Green arrows are energy flows, red arrows are waste energy. All units in kwh/day. Bioethanol and electricity transportation losses have been omitted. Sustainable energy supply chains require no fossil fuels and produce no net carbon emissions.
Energy A World in Transition RPS mandates, GHG limits, carbon cap & trade, grid parity for wind/solar Wind and solar fastest growing generation. Reaching RPS levels above 15% will be a challenge giving renewable location and variability. Carbon tax or cap & trade will have major impact on energy industry and automotive sector if all carbon costs are accounted for. Automotive industry running into a brick wall global demand and supply limits Biofuels: Scaling issues and environmental impact EV/PHEV: Battery costs and charging infrastructure Energy independence and security Oil imports of $240 B/year and geopolitical instability Sufficient coal and natural gas for hundreds of years Climate change Copenhagen meeting in Dec 2009 IPCC targets 80% reduction in CO2 emissions by 2050 Stimulus funding sweetens the pot, driving activity Picture is clear. Business As Usual will not work.
Major Transitions Under the BAU scenario (EIA 2004), 30% load growth in 25 years to 1300 GW may be managed with conventional generation and grid technologies. RPS mandate of 20% would translate into 500 GW nameplate in variable generation using renewables. Location and variability issues Rooftop solar, distributed microgrids Transitioning 30% of the car fleet to electric by 2030 would save $80 Billion/year in petroleum imports and 170-640 Mt-C/year in GHG emissions, but would add up to 500 GW in peak charging load Normal charging rate of 3 kw, fast charging 25-100 kw Reducing energy consumption by 30% using energy efficiency and market functions would shave almost 500 GW in peak load demand from the grid. Requires AMI infrastructure with automation of load management New entrepreneurial opportunity Current grid cannot handle this level of change. What changes are needed to enable this transformation?
Infrastructure Gaps Sustainable Energy World 30% Renewables -Wind, PV, DER -500 GW pk Societal objectives - 2030 Intermittency - Storage - Grid Control GAP ANALYSIS Peak Load - Storage - New plants 30% Reduction in Mobile Fossil Sources EV 500 GW pk Market CHALLENGES: - Intermittency of renewables - Infrastructure requirement to support PHEV/RTP load - Real time markets for energy products - Cost recovery on new energy infrastructure - Understanding total cost - Market and regulatory structure Real Time Pricing - Carbon cap/trading - Differentiated service SMART & CONTROLLABLE GRID: - Virtual storage by coordination of intermittent sources and noncritical dispatchable loads - Converting power lines into pipelines (green electron delivery) - Ensuring reliable operation under dynamic conditions - Improving asset utilization - Enabling green energy markets 30% Reduction in Consumption 500 GW pk
What is a Smart Grid?
Implementing a Smart and Controllable Grid Dumb Use Smart Use: Smart meters, real time pricing, demand side management, EV charging, net metering, energy efficiency, LED lighting, transaction management, energy appliances, smart homes, data centers Dumb Asset Smart Asset: Adding intelligence & control to the T&D network and components, power flow control, wind and solar integration, system protection, dynamic voltage control, improved asset utilization, energy storage, Dynamic OPF, enabling bidirectional power flows, system protection, enabling market functions Reactive Response Proactive Response: Improved situational awareness, wide area coordination, massive data streams into actionable information, load/source forecasting and optimization, coordinated operation, operating under electrical and communications contingencies. Key Technologies: Transmission & Distribution, Solar PV, Wind, DG, Energy Storage, Power Electronics, Sensors, Cyber-Security, Transaction Management, IT Infrastructure, Energy Efficiency, Smart Appliances, EV/PHEV Dumb Grid Smart & Controllable Grid: EPACT 2005, EISA 2007, ARRA 2009, all move the system towards the Smart Grid should be bipartisan. 24 bills in 16 states related to the Smart Grid. National RPS mandates, carbon cap & trade in the ACES Waxman-Markey Bill in the Senate.
Smart Grid Some Applications Manage EV/PHEV charging without overloading distribution infrastructure Increased penetration of renewables: dynamic and bidirectional power flows New market forces with RTP, green electrons, carbon limits. Increased automation, enhanced reliability and power quality Reduced congestion and improved asset utilization Reduce number of generating plants and power lines that need to be built Avert cascading failures under contingency conditions Controllable valves for flow control between control areas MW or MVAR 250 200 150 100 50 0 P > 0 Q > 0 Real & Reactive Power Control by CNT P > 0 Q < 0 P < 0 Q < 0 P (Real Power) Q (Reactive Power) P < 0 Q > 0-50 -100-150 *Courtesy: Tom Overbye, UIUC 0.2 0.4 0.6 0.8 1 1.2 Time (secs)
Smart Grid and RPS Mandates Four zones with renewable energy concentrated in Region 1. All regions have to meet RPS mandates. Sources and loads have normal variability. BAU results in high level of transmission investment Controlled power flow of green electrons reduces the NPV of transmission investment by 60%, through improved asset utilization BAU requires three transmission line upgrades, CEF requires one Target: 1%/year load growth, 20% RPS level in 20 years
Smart Grid Benefits & Challenges Benefits: Increase level of renewable penetration, reduce GHG emissions Enable efficient energy market, including dynamics from renewables, EVs, real time pricing and reliability Reduce infrastructure investments required to achieve enhanced functionality Improve asset utilization and reduce energy costs, allowing users to access energy sources of their choice Enhance energy security and independence, helping reduce oil imports Climate change cannot be effectively tackled without the Smart Grid Challenges: Cost of implementation estimated at over $200 Billion Need to find cost offsets if energy price increases are to be avoided Without EVs, the ROI model for smart meter and RTP is poor for consumers Balkanization of utilities and varying state regulations inhibit new markets Market incentives for unsustainable and non-scalable technologies can create long-term momentum and inhibit growth of more sustainable alternatives Externalization of carbon costs can provide a cost benefit to fossil burning technologies, and inhibit new sustainable technologies
Conclusions The existing grid has to be upgraded to a smart and controllable grid in order to meet RPS mandates, allow increased EV penetration, and to reduce GHG emissions helping make the energy infrastructure sustainable. Smart Grid is a wide topic that covers everything from Smart Meters, Demand Side Management, Distribution Automation, Pervasive Sensing, Situational Awareness, Control of Power Flows, Dynamic Voltage and Stability Control, Distributed Generation, Integration of Renewable Energy Resources, Improved Asset Utilization, Distributed and Lumped Energy Storage, IT and Communication Infrastructure. Smart Grid will permit sophisticated market functions Real Time Pricing; Green v/s Black Electrons; Ancillary Markets for VARs; Energy Storage; Reliability; Elimination of Free Rider Problem; Improved Returns on Transmission Investments; Reduced Probability of Cascading Failures. Without a Smart Grid, it may be impossible to transition to a Sustainable Energy Economy.