Several of your slides miss the mark. The slide regarding age of the infrastructure would lead people to infer that making the grid "smart" will somehow improve performance. The truth is that age is not a predictor of failure-condition is. Example the average power transformer failure age is in the 20 year old range nationally. Why? Because 20 years ago, transformer designers traded slide rules for computers and designed out margin making units more susceptible to failure due to externalities like through fault exposure. Undergound unjacketed URD cable originally spec'd with 220 mil insulation was reduced to 175 mils to conserve materials cost--that was enough to result in early dielectric failures. So, how will making the grid smart solve these problems-it will not.
As to the issue of command and control your slide implies that central computer command and controls will result in better reliability. The fact of the matter is that most disturbances occur in cycles-ie miliseconds. A truly self healing grid will require semi-autonomous action by breakers and reclosers located throughout the system. The transmission and subtransmission system are already highly integrated and operate in this fashion. The SCADA systems utilized to control and monitor these systems do not act in real time to manage a disturbance because they can not. The time it takes for two way communications would create a communications overhead that would take longer than the event itself by orders of magnitude. A typical SCADA system polls information by exception on a 2 to 4 second basis thus missing many potential events. Distribution automation will increase in the lower voltage distribution system to increase operating flexibility and automatic sectionalizing and automatic throwover capability.
Finally, it is presumed by your paper and many others that information is the key to success. I believe that information is valuable but pertinet question is how is the data actionable. If consumers do not voluntarily use the information to curtail consumption of energy or reduce instantaneous demand, if utilities do not have the ability to use the information to curtail energy consumption or demand, then all we have is information on consumption and demand. I already have a good understanding of that for my company and my consumers. The information has no value unless and until it is actionable-by consumer, regulator or utility-to change consumption.
Steve Morgan - 02/25/2009 - 06:06
open standards
A comment on the "Insist on open standards and protocols to ensure interoperability." I'm not sure this is very helpful for a hapless governor. The problem is that we have multiple open standards at each of multiple layers of the communication stack. We may or may not have a unified vision for what collection of standards to use, and there are often multiple user groups with different ideas on that. Different organizations promote different standards, and it is hard to judge the merits of standards or which ones will dominate. I think this is where we see the potential benefit of NIST's role in providing some perspective on where we want to go and what standards are best suited to get us there and which standards need working on. It is NIST's goal that by the end of the year we have much more clarity on what standards best serve which parts of the smart grid so that we can make recommendations to the states to guide moving toward an interoperable future.
David Holmberg - 02/25/2009 - 06:30
PBR - Performance based regulation
Thanks Jesse for your article. I think the actual Cost-based regulation (CBR) used to fix the rate of the electric utilities is an obstacle to innovation or better efficiency.
As an ex-distribution network planner who spend some time at the public utility commission here in Quebec, Canada, I've been aware of the developpement of the Performanced based regulation (PBR) in Canada and the US, and I could say that it is better suited for energy efficiency, smart grid, distributed ressources or the basic O&M cost efficiency.
Actually, with CBR, O&M spending are reimburse to the utility. If a new technology helps lowering the O&M costs, the utility that integrates this technology will not have more benefits, the impact will be on the custumer's side, you will benefit of a drop in rate.
Regarding the utility income, base on the net asset value, the utility has a fix yield on his asset with CBR. It's a sure business to spend 10 M$ for a new substation, and get a sure 8 % yield for such an investment, instead of speading 5 M$ to install 20 000 smart meters, an asset owned maybe by the distributor or either the client.
I'm right with you, there's a lot to do at the public utility commission. I think Performance base regulation (PBR) is the key to innovation in the energy sector. There's actually no incentive for lower O&M cost and lower asset value for either distribution or transmission businness.
David Beauvais eng.
David Beauvais - 02/25/2009 - 07:03
Consumer Access to Data
Jesse,
Nice summary.
I'm not sure whether it's Principles or Policy, but the industry needs to ensure that consumers have access to their smart meter usage data, at a minimum via the utility's website. Both California and Texas require access 24 hours after collection. This is a great start. I mention this because ENEL consumers still don't have access to their smart meter data, 3-5 years after they received the meters.
Chris King - 02/25/2009 - 08:26
Rate Concerns & Smart Grid...
This past January, our local utility in FL raised rates by around 25%. This was in part to raise cash for inserting a nuclear plant into the grid, and all the related transmission facility improvements required. Another part of the rate increase was for increased fuel rates (part of that increase is to be reduced by a certain amount in the near future).
It would be hard to find much public support, I feel, should the utility apply for yet another rate increase to fund a Smart Grid. In general, lots more public education will need to be done to garner support for the added expenses, especially at a time when many have lost jobs, taken on much lower paying jobs etc., and may not be able to afford a $450 electric bill this coming summer, in addition to the water bills, which also keep rising, cable, etc...
Where there is much competition for a more limited amount of cash flow in an average person's wallet, utilities must think of creative ways of funding these sorts of green projects. Stimulus money will only go so far, and is not a long-term solution.
Adrian Zvarych - 02/25/2009 - 10:54
Smart Grid Questions
I agree with Steve Morgan (no relation). Furthermore, some of the "smart grid" appliances are supposed to look at the frequency of the AC power and to then drop off the grid if a problem is detected. I wonder if this might not exacerbate a grid problem, if millions such appliances make their way into the home....and they all drop off at the same time on a frequency disturbance... Second, what about the huge surge they'll draw when they all come back on...even if they are phased in.
Also, do you really need to know what your Kwhr usage is real time? That what some indicate, that your going to be sitting at your home monitor display, and buying green energy in real time from your neighbors solar panels because your home "carbon footprint" is a bit to high today? I don't think so. At best, I think a monthly if not longer review of your Kwhr usage (perhaps using interval data collected over time) might be of use for a consumer to configure his appliances to run at night. What "smarts" does it take for to know, that during the summer in the afternoon, electricity is expensive? People, talk about a "major power plant outage" being telegraphed to the grid, to tell all the devices to reduce load. Again, by the time the message gets to the devices, the worst case scenario (electrically) has already passed....
Al Morgan - 02/25/2009 - 13:06
Power lines
I lived in Europe for 10 years just got back to America in Jan 08. I noticed that Europe put the power lines under ground so the elements can not knock down the lines or the power line poles.
Why is it the United States of America can not do the same thing. We would not have the problem of winter storms or Huricans leaving milions of people with out power.
Greg Flood - 02/25/2009 - 16:56
Power Grab
WAKE UP CITIZENS. THIS IS A MASSIVE POWER GRAB BY THE UTILITIES AND GOVERNMENT TO MORE FULLY CONTROL YOU AND YOUR LIFE. If this was really about energy efficiency and lowering your carbon foot print, government could subsidize or even completely pay for a solar panel on every home in America with the money these fools continue to waste. We need to decentralize the power of energy companies and foolish politicians. What they want to really do is have complete monitoring using radio and EMF transmissions and/or other frequencies for your entire life. If we let them control our utilities, what's next??? Think about it. DECENTRALIZATION OF POWER IS THE ONLY ANSWER!!
The goal should be to rely less and less on utility companies and their control. They can and should gradually lower their power generation and be available more as a backup energy source only.
Now that's truly going green.
messenger - 02/26/2009 - 01:26
Are you Kidding Me!!??!!
Smart Grid = Power appliances and monitoring devices (smart plug outlets) inside your home that will monitor your electrical, heating and air conditioning useage as well as every move you make INSIDE your home.
Case in point: The elderly man whose electricity was turned off for utility corporate-deemed "over limit use" during the deadly storms in the North East . . . he froze to death!
RFID chips in utility smart meters: All that's required to collect data . . . a drive by your house.
RFID chips in drivers licenses make it easier to monitor your every move outside AND INSIDE your home as it sits in your wallet or purse on your dresser, monitored by smart wall and plug outlets. Its a two-way system.
People . . . decide what kind of a world you want to live in and what kind of a world you want your children and grandchildren to live in.
Don't check "Remember my name" below. You just might be the first to be "monitored" inside your home if you do or your computer monitored.
THINK!
Real Name Wedlake - 02/26/2009 - 05:16
Power Companies Are Already Abusing Smart Grid
Power companies, such as Alleghey Power and AEP are grabbing hold of this intiatives and President Obama's intention to rebuild the infratstructure to justify projects that will put unwarranted profits in their pocket. Example in point, the PATH project, a transmission line from West Virginia to New Jersey. Notwithstanding the rhetoric about grid reliability and supply forecast demand, this project is about the $1.8 Billionin guaranteed cost recovery, and a whopping 14.3 percent profit. Smart Grid will be another tool in their quiver to steamroller over individuals, counties and states to pursue corporate profits (and not surprisingly, executive bonuses). Think it's only the banks? Aside from the return on construction costs, the line will be used predominantly to move coal-based power to a lucrative market in the Northeast at the expnse of all rate payers, and at great personal cost to those whose homes are in the way. National interest? NO - GREED. Who's watching?
Bart Hodgson - 02/26/2009 - 06:06
Need or Option?
The bottom line is there is a clear need to move forward with AMI/SmartGrid applications. I believe that some think upgrading the grid is an option. Not true. The current grid in the US is not sustainable as it operates today.
Besides the stimulus bill being enacted it is my belief that legislative measure from both Federal and state levels needs to be implemented to force the issue with timelines to be met such is being done in Canada as well as elsewhere in the world. We can discuss the matter for ever, but action needs to take place now in order to realize the needed modernization and increased need for power as we move forward through the decade ahead.
The SmartGrid will be made up of multiple applications in stages. Stage one is getting off the dime and deal with AMI, which is only one element of the SmartGrid. AMI will provide the initial benefits by delivering two way communications between the customer and the utility while enabling the Demand Response, Critical Peak Pricing while initiating Time of Use applications thus kid starting the process. This needs to happen now with other elements of the SmartGrid developing moving forward.
It is time for the consumer to realize that electricity needs to be conserved and used widely or they will feel it directly in their pocket book. This will cause action and create the sense of urgency that is needed in order to maintain growth as the leader of the free world.
Gary Keyes - 02/26/2009 - 07:48
Global Competition
To the point presentation. Thanks.
About article, definitely the smart grid has been legitimized at the federal level and now the ball is in the states' courts. However about global competition and.
"The developing world is leapfrogging directly to a smart grid."
I am not sure how far leapfrogging is possible in the case of smart grid, though I know this has happened and is happening in the communication field. The distribution infrastructure in the power sector there is no where near to reap the goals of smart grid and needs huge and huge investments just to make it ready for Smart Grid. Putting smart meters is not an issue.
However strengthening the infrastructure and setting the priorities about investment is definitely an issue there. I hope that initiatives in the US and Europe about Smart Grid and soon a price on carbon in US will definitely influence the pace there.
If the Smart Grid projects in developing world could be linked to CDM ( Clean Development Mechanism of UNFCCC) projects in developing countries under Kyoto Protocol to create carbon credits, I am sure a huge investment will flow and leap frogging will be very much possible.
Shailesh Jain - 02/26/2009 - 19:38
Invasion of privacy
Government and public utilities rarely do anything for the good of "We the peeople". The smart grid is just another avenue for big brother to invade your privacy and monitor your every move. Wake up. I do not want every aspect of my life scrutinized and monitored. The New World Order has been promoted by the last four administrations, and sky rocketted under the Bush Aministration with the new Obama administration taking the lead. The Prison Planet is certainly taking hold.
Joseph M. Anderson - 02/26/2009 - 21:42
Why so much fear?
I find it comical when I read the big brother, etc comments. If you read the above responses, and substitute the words 'Smart Grid' with the word 'Internet' it's the same exact concerns people had before they understood how the Internet worked. Case and point, the government can tell when you are home surfing the Internet and they can tell what you are interested in by the sites you visit, etc. I would further suggest there were similar concerns with cellular phones. Fear of change and the unknown are not uncommon.
I would suggest unless you are doing something illegal, you are like me and pobably not important enough to be monitored.
In summary, I firmly believe fear is our biggest challenge related to the Smart Grid, which is founded on misunderstanding. Eventually the Smart Grid will be common and something new will come along to provide the fear fuel...
Steve H - 03/02/2009 - 12:49
Reform, Reform, Reform
Hello Mr. Berst,
Under the article "Why Your Smart Grid Must Start with Communications," I am suggesting a dialogue on the true requirements of the smart grid. I understand that there is a need for a reform to enable a federal wide market on the wholesale, retail, prosumer (a consumer that may produce). That means that "At the federal level, the fight to legitimize the Smart Grid is" NOT "over."
Please search for the EWPC article "Synthesis for Mr. Obama: Reform, Reform, Reform" on www.energyblogs.com
Best regards,
José Antonio Vanderhorst-Silverio, Ph.D. - 03/05/2009 - 07:51
Cost vs Rewards
I work for a central Florida utility and I see daily the fight within our company to balance costs. The consumer in this country deserves low cost, clean, reliable power. Yet, the need to incorporate high technology in the name of improved reliability, doesn't make sense to me... Let me explain. This
country, compared to most of the world, has very reliable power, this is a fact and well known by world travels. Now, we have all these high technology schemes (like smart grid) that bring 'intelligence' to the power grid in all forms, from distribution all the way to transmission. But at what cost? the power grid is in reality invisible to the average consumer (and should be) yet these major shifts brought on by these new technologies will effect the power cost and power bills alot more than it will improve the quality or reliability of electric power in the United States.
The very bottom line is "If it ain't broke don't fix it" applies here.
But to the vendors who push these products it means more sales and to the consultants who lost their jobs in other fields a fresh start in another technology hype that promises them a place out of the unemployment line and to the poor consumer it means paying for something he doesn't need or really care about.
Dean Blake - 03/05/2009 - 11:51
It is More Than Broken
Dean,
In the EWPC article "Just as Pogo, IOUs Found the Enemy," in www.energyblogs.com a DOE's Electricity Advisory Committee report is quoted that says:
According to the Galvin Electricity Initiative, "the U.S. electric power system is designed and operated to meet a ‘3 nines’ reliability standard. This means that electric grid power is 99.97% reliable. While this sounds good in theory, in practice it translates to interruptions in the electricity supply that cost American consumers an estimated $150 billion a year."
Missing from that quote is that the Galvin Electricity Initiative also wrote that “… In other words, for every dollar spent on electricity, consumers are spending at least 50 cents on other goods and services to cover the costs of power failures."
The power industry as a whole is more than a machine. It is an organism, and as such it can not be fixed. It needs to reborn as an emergent whole, to develop and grow. That is what EWPC is all about.
José Antonio Vanderhorst-Silverio, Ph.D. - 03/05/2009 - 12:47
Mission NOT Accomplished
I don't intend to burst (pun intended) Mr Berst's bubble, but his claim "At the federal level, the fight to legitimize the Smart Grid is over" is not quite true. Maybe I just have a different interprtetation of what a "smart grid" is, or should be.
As long as the grid is heavily reliant on fossil fuels, it is far from smart. Enen nuclear energy with all of it's advantages, is not smart in many ways. Wind power, wave power, solar power (both from photovoltaic cells and heat collection), geothermal and other sources of renewable energy must be mandated by the federal government.
Yes, I have heard the old argument that more government is bad government, but we have waited for utility companies to take the initiative to REALLY push the implementation of renewable energy. As long as they are profit generating entities seeking short term gains, they will always choose to rely on old, and currently cheap technologies.
They have had their chance to come clean, now we need to force their hands.
It can no longer be left to choice, the governments of this planet must make it a matter of policy to convert to renewable energy in the very near future, or else the distant future will mean a burned out planet incapable of sustaining life.
james P Walsh - 03/09/2009 - 09:14
Smart Grid
This is just a Trojan horse to get sensors into our homes. These things are always sold as "cures" for some percieved inefficiency. It's all about control by people who "know better". I'm tired of being "sold".
From fires in Philadelphia to firearms in Texas, smart meter associated flare-ups make the news weekly. And it makes us wonder: If you could turn back the clock and rethink the whole smart grid rollout, would you do it differently? And if so how? That's this week's topic in our discussion forum. Please join in.
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