Emeritus Professor of Electrical Engineering Arizona State University SEC598S19 – Solar Energy Commercialization Session 02 (01/09/19) (a) Electricity Business Introduction (b) Sinusoidal Power Ronald Roedel Emeritus Professor of Electrical Engineering Arizona State University

Learning Outcomes (Session 02a) An overview of the electricity business A brief examination of electricity business trends

Electricity Business Overview (References) https://en.wikipedia.org/wiki/Electric_power_industry https://en.wikipedia.org/wiki/Electric_utility B.Shively and J.Ferrare, Understanding Today’s Electricity Business, Enerdynamics, 2012 (www.enerdynamics.com) US Energy Information Administration (www.eia.gov)

The Electricity Business - Introduction The electric power industry can be defined to be the generation, transmission, distribution, and sale of electric power to the general public. Reliable and economical electric power has become a requirement for normal operation of all elements of developed economies The Electricity Business is a complicated web of consumers, producers, services, operations, markets, and regulations Once entirely constructed as a vertically integrated monopoly, it is now undergoing restructuring and conversion to new structures featuring competition and new services Ref [1,2,3]

The Electricity Business - Introduction The Electricity Business is a complicated web: Consumers Generation Transmission Distribution Operations Delivery Chain Operations The Market Structures (Traditional and Restructured) Market Dynamics Regulation Ref [3]

The Electricity Business - Introduction Key physical properties Electricity cannot be stored (easily or economically) Supply and demand must be continually balanced Electrical flow path is difficult to control Electrons follow the path of least resistance Disturbances travel quickly and are hard to contain Electricity moves at nearly the speed of light Outages and voltage and frequency fluctuations are not acceptable Minute-by-minute monitoring required Ref [3]

The Electricity Business – Overview

The Electricity Business – Electricity Consumers Ref [4]

The Electricity Business – Electricity Consumers Ref [4]

The Electricity Business – Generation 400 TWh

The Electricity Business – Generation Ref [3]

The Electricity Business – Generation Ref [3]

The Electricity Business – Generation At all power plants, electricity is time-dependent (sinusoidal) or better known as “alternating current” or AC format At most power plants, AC electricity is produced in 3-phase format Many industrial customers expect 3-phase AC electricity

Electricity Business Trends (References) https://www.utilitydive.com/news/10-trends-shaping-the-electric-power-sector-in-2019/545119/

The Electricity Business – Trends starting 2019 A Trump bailout for coal and nuclear power will continue to be a threat Ref [5]

The Electricity Business – Trends starting 2019 FERC will remain focused on wholesale pricing issues, resilience and fuel security

The Electricity Business – Trends starting 2019 The federal environmental regulation rollback will continue 

The Electricity Business – Trends starting 2019 States will increasingly push clean energy and policy policies

The Electricity Business – Trends starting 2019 Grid modernization and performance-based utility metrics will become commonplace

The Electricity Business – Trends starting 2019 Gas generation will continue to dominate

The Electricity Business – Trends starting 2019 Energy storage will have its biggest year yet

The Electricity Business – Trends starting 2019 Electrification will become a central power sector issue

The Electricity Business – Trends starting 2019 DERs will become trusted bulk power resources

The Electricity Business – Trends starting 2019 Renewable energy will increasingly replace coal