Solar Energy Commercialization SEC598S19 Solar Energy Commercialization Session 24 New Directions: Smart Grid, Part 02 April 10, 2019

Session 24 - Value to class members Continued discussion of the concept of the “smart grid.” Definition and examples of some of the components of a smart grid

Session 23 – Resources https://en.wikipedia.org/wiki/Smart_grid https://www.youtube.com/watch?time_continue=13&v=Hvc5AKVX1dc M.Vadari, Smart Grid Redefined: Transformation of the Electric Utility, Artech House, 2018

Smart Grid - Introduction The smart grid is not just an implementation plan for new technology - it is a “complete business transformation for electric utilities requiring changes to people and processes.” (Vadari)

Smart Grid - Features The Smart Grid is characterized by these three features (Vadari): The ability to sense and understand the state of the network The ability to control devices in the field to alter the state of the network, if necessary The ability to use decision-support tools to allow the sensed information to be converted into controls

Smart Grid – Energy Value Chain Distribution Distributed Energy (DERs, Storage) Retail Markets Distribution Grid Control (T&D Automation, Data Analytics, Advanced Operations) Distribution Grid (Microgrids) Consumer/Home (DR&EE, Smart Meters, EVs, Smart Homes)

Smart Grid – Components Demand Response and Energy Efficiency Allowing both utility and customers to partner in supply-demand actions Distributed Energy Resources (DERs) Managing and controlling local resources by a variety of computing and automation tools Energy Storage Changing the relationship between generation and consumption Electric Transportation Altering both the transportation platform and the fueling infrastructure Data Analytics Converting data collected from meters, sensors, etc. in the field into actionable intelligence for use by the utility and prosumers

Demand Response and Energy Efficiency Allowing both utility and customers to partner in supply-demand actions (Vadari)

Demand Response and Energy Efficiency (Vadari)

Distributed Energy Resources (DERs) Management and control of local resources with computing and automation tools Most DERs are generally considered to be renewable electrical energy resources deployed in a local and distributed fashion: Rooftop solar Community solar projects Small wind farms Biomass projects Fuel cell projects Hydrogen powered ICEs Exceptions to the renewable resource rule: Diesel (or natural gas) gensets Stirling engines Hybrid systems Combustion turbines

DERs (Vadari)

DERs (Vadari)

Business challenges for DERs (Vadari) Utility perspective Reduced revenues (Load defection, Grid defection) Consumer becomes a Prosumer (Producer+Consumer) Grid reliability and volatility – utility control Investor perspective Investor in technology Investor in new services Customer perspective Value of solar and fair compensation Measurement and control technologies Aggregation (CCAs)

Changing the relationship between generation and consumption Energy Storage - BESS Changing the relationship between generation and consumption Terminology Capacity – Amount of energy that can be stored (MWh) Charging - Conversion of electrical energy to chemical energy Discharging - Conversion of chemical energy to electrical energy Charge rate (or Discharge rate) – Rate of energy conversion, expressed as C/N, where C is the battery capacity and N is the number of hours to complete the charging process. Related to battery power Depth of Disharge (DoD) – Portion of energy discharged compared to fully charged battery State of Charge (SoC) - Portion of energy remaining in partially discharged battery Cycle – One roundtrip charge-discharge sequence Energy Density – Capacity per unit volume (MWh/m3) Ramp rate – Rate at which power output can be changed (MW/sec)

Energy Storage Applications in the Smart Grid Providing peak power Providing back-up power Peak shaving for residential and non-residential customers Offset liabilities of DERs Providing ancillary services Frequency regulation Power factor Mitigating congestion

Business case for BESS (Vadari) Energy Storage Business case for BESS (Vadari) Utility perspective Front-of-meter applications listed before Potential development for Virtual Power Plants Non-wire alternative (NWA) applications Investor perspective Investor in technology (even if speculative) Investor in implementation (type of service less risky) Customer perspective C&I – peak shaving Residential – reduction of demand charges; net-zero applications Backup or stand-alone systems

Energy Storage (Vadari)

Electric Transportation – Value Proposition Altering both the transportation platform and the fueling infrastructure (Vadari)

Electric Transportation - Charging (Vadari)

Electric Transportation (Vadari)

Electric Transportation – PEV Loading (Vadari)

Electric Transportation – V2G (Vadari)

Data Analytics The techniques and processes of converting data from the field into action A smart grid employs information and communication technology (ICT) to optimize the generation, distribution, and consumption of electricity Data analytics is widely used in: Hotel and airline frequent flyer programs Airline route planning, ticket selling, seat management Internet search engine optimization Internet advertisements Online purchasing

Data Analytics (Vadari)

Data Analytics (GTM)

Data Analytics (Vadari)

Data Analytics (www.mckinsey.com)