EU-US ENERGY COUNCIL Technology Working Group Steve Bossart US Department of Energy National Energy Technology Lab Assessing Smart Grid Benefits and Impacts: EU and U.S. initiatives Vincenzo Giordano Ettore Bompard European Commission DG JRC 2013 IEEE PES Innovative Smart Grid Technologies February 26, 2013

Objectives Background Areas of collaboration Smart grid definitions Smart grid investments Project inventory Performance and progress Build metrics Impact metrics Dissemination Future Collaboration Topics 2

Objectives 3

4 Objectives of Joint EU-US Collaboration on Smart Grid Make sure we speak the same language when it comes to Smart Grid definitions, terminology and methodological approaches Build common approaches in assessment framework for smart grid advances, benefits, and impacts, as well as in information sharing, leading to practical future opportunities for transnational cooperation

Background 5

Two workshops with EU and US Smart Grid experts (Albuquerque Nov 2010, Washington DC Dec 2011) "EU-U.S. Workshop on Assessment Methodologies for Smart Grid: Advances, Benefits, and Impacts" Joint DoE- JRC report "Assessing Smart Grid Benefits and Impacts: EU and U.S. initiatives " Background 6

Areas of Collaboration 7

EU-US cooperation PROJECT INVENTORY CASE STUDIES KPI and CBA Dissemination and sharing Primary Areas of Joint Collaboration ISGAN ANNEX I ISGAN ANNEX II ISGAN ANNEX III ISGAN ANNEX IV 8

Smart Grid Definitions 9

What is a Smart Grid? EU - A Smart Grid is “an electricity network that can intelligently integrate the behavior and actions of all users connected to it - generators, consumers and those that do both - in order to efficiently ensure sustainable, economic and secure electricity supply” [EC Smart Grid Task Force]. US - A Smart Grid uses digital technology to improve reliability, security, and efficiency (both economic and energy) of the electric system from large generation, through the delivery systems to electricity consumers and a growing number of distributed-generation and storage resources [DOE System Report]. 10

Context of Smart Grid Smart GridEnhanced by Smart Grid Two-way communications Sensors Controls Decision support tools Components Transformers Power electronics Conductors Sensing, control, automation, power transformation, and communications Renewable energy resources Electric vehicles Energy storage Distributed generation Connected appliances/devices Load control/demand response Generation, storage, and load 11

Smart Grid Investments 12

Smart Grid Investments Required Smart Grid investmentsFunding for Smart Grids development ($/ Smart metering deployment EU€1.5 trillion over to renew the electrical system from generation to transmission and distribution [IEA 2008]. This figure includes investments for Smart Grid implementation and for maintaining and expanding the current electricity system. €184 million (FP6 and FP7 European funding for projects in the JRC catalogue) About €200 million from European Recovery Fund, ERDF, EERA. National funding: n/a 40 million already installed [JRC, 2011) 240 million by 2020 [Pike Research, 2011] US$338 (€238) to 476 (€334) billion by 2030 [EPRI, 2011] The costs include the infrastructure to integrate distributed energy resources and consumer systems, but do not include generation costs, transmission expansion, and consumer’s smart appliances and devices $9.8 (€-) billion in 2009 (US Recovery act; includes Federal and private sector funding) 8 million in 2011 [Smartmeters.com, 2011] 60 million by 2020 [Smartmeters.com, 2011] 13

Smart Grid Project Inventory 14

US –Inventory of Smart Grid projects 99 projects under SGIG total budget $8.1 billion Submission of project information is required under the project scheme Inventory of all US Smart Grid projects is underway (ISGAN) 32 projects under SGDP total budget $1.7 billion 15

US –Inventory of Smart Grid projects 16

Progress and Performance 17

Policy goals and business case How much are we progressing toward a Smart Grid? How do we measure the level of smartness? KPI analysis European Union Which smart grid solutions have a viable business case? For whom? Cost & benefit analysis Metrics & benefits analysis Tools: Smart Grid Computational Tool Energy Storage Computational Tool United States 18

Features of the Ideal Smart Grid - Services versus Characteristics EU (Services)US (Characteristics) Enabling the network to integrate users with new requirements Accommodate all generation and storage options Enabling and encouraging stronger and more direct involvement of consumers in their energy usage and management Enable active participation by customers Improving market functioning and customer service Enable new products, services, and markets Enhancing efficiency in day-to-day grid operation Optimize asset utilization and operate efficiently Enabling better planning of future network investment Ensuring network security, system control and quality of supply Operate resiliently to disturbances, attacks and natural disasters Provide the power quality for the range of needs

DOE Analytical Approach Example Improves feeder voltage regulation Reduced feeder losses worth $60 per MWh Automatic Voltage and VAR Control Capacitor controls Distribution Management System Functions Mechanisms Benefits What does the Smart Grid do? How does it do that? What “goodness” results? Monetary Value What is the goodness worth? What are Smart Grid technologies? Assets $

US – Build Metrics Key Questions to Address 1. What was purchased, built, and deployed? # of assets or programs Type of assets or programs Configuration of assets 2. How much did it cost? Cost segmentation: assets, labor, and specific asset type 3. Where was it installed? NERC Region, State, or recipient locations 4. How much of the system was affected? % of system, % of customers, % of load 5. What does it do? Characteristics of assets or programs: Intended function or use of assets

Smart Grid Functions SensingControlProtection Wide Area Monitoring, Visualization, and Simulation Power Flow ControlFault Current Limiting Diagnosis & Notification of Equipment Condition Automated Feeder Switching Dynamic Capability Rating Real-Time Load Measurement and Management Automated Islanding and Reconnection Adaptive Protection Automated Voltage and VAR Control Enhance Fault Protection Real-Time Load Transfer Customer Electric Use Optimization 22

Energy Storage Applications Renewable SupportInvestment DeferralAncillary ServicesLoad Management Renewables Energy Time Shift Electric Supply Capacity Deferral Area RegulationElectric Energy Time Shift Renewables Capacity Firming T&D Upgrade DeferralLoad FollowingTransmission Congestion Relief Wind Generation Grid Integration, Short Duration Substation Onsite Power Electric Supply Reserve Capacity Time-of-Use Energy Cost Management Wind Generation Grid Integration, Long Duration Electric Service Reliability Voltage SupportDemand Charge Management Electric Service Power Quality Transmission Support 23

Benefits Analysis Framework Benefit Category Benefit Sub-category Benefit Economic Improved Asset Utilization Optimized Generator Operation (utility/ratepayer) Deferred Generation Capacity Investments (utility/ratepayer) Reduced Ancillary Service Cost (utility/ratepayer) Reduced Congestion Cost (utility/ratepayer) T&D Capital Savings Deferred Transmission Capacity Investments (utility/ratepayer) Deferred Distribution Capacity Investments (utility/ratepayer) Reduced Equipment Failures (utility/ratepayer) T&D O&M Savings Reduced Distribution Equipment Maintenance Cost (utility/ratepayer) Reduced Distribution Operations Cost (utility/ratepayer) Reduced Meter Reading Cost (utility/ratepayer) Theft ReductionReduced Electricity Theft (utility/ratepayer) Energy EfficiencyReduced Electricity Losses (utility/ratepayer) Electricity Cost Savings Reduced Electricity Cost (consumer) Reliability Power Interruptions Reduced Sustained Outages (consumer) Reduced Major Outages (consumer) Reduced Restoration Cost (utility/ratepayer) Power Quality Reduced Momentary Outages (consumer) Reduced Sags and Swells (consumer) Environment Air Emissions Reduced Carbon Dioxide Emissions (society) Reduced SO X, NO X, and PM-10 Emissions (society) Security Energy Security Reduced Oil Usage (society) Reduced Wide-scale Blackouts (society). 24

Five Primary Analytical Focus Areas Peak Demand and Electricity Consumption Advanced metering infrastructure Pricing programs & consumer devices Direct load control Peak Demand and Electricity Consumption Advanced metering infrastructure Pricing programs & consumer devices Direct load control Operations & Maintenance Savings from Advanced Metering Meter reading Service changes Outage management Operations & Maintenance Savings from Advanced Metering Meter reading Service changes Outage management Distribution System Reliability Automated & remote operations Feeder switching Monitoring & health sensors Distribution System Reliability Automated & remote operations Feeder switching Monitoring & health sensors Energy Efficiency in Distribution Systems Voltage optimization Conservation voltage reduction Line losses Operational efficiency Energy Efficiency in Distribution Systems Voltage optimization Conservation voltage reduction Line losses Operational efficiency Transmission System Operations & Reliability Application of synchrophasor technology for wide area monitoring, visualization, and control Transmission System Operations & Reliability Application of synchrophasor technology for wide area monitoring, visualization, and control 25

SGIG Consumer Behavior Studies: Overview of Research Topics Given the diversity of studies being undertaken as part of the SGIG program, we have a unique opportunity to evaluate issues in several topical areas: Research Topical Areas 1. Customer Acceptance: What motivates customers to accept time-based rate programs? 2. Customer Retention: What motivates customers to remain on time- based rate programs? 3. Customer Response: Will customers respond, and if so by how much will they respond, to time-based rate programs? 4. Role of enabling technology and information/education: Will customers respond, and if so by how much will they respond, to control and/or information technology and/or education alone? 26

Dissemination 27

Dissemination platforms - US

Future Collaboration 29

Future EU US Collaborative Smart Grid Work Mapping activities Coordination of EU and US mapping exercises of Smart Grid projects within the ISGAN framework. Clarify definition of large- and small-scale demonstrations, & R&D, demonstration and deployment Extrapolation of project results Possible approaches to scale-up project and meta-analyses results to larger control areas Project Assessment Approaches to capture non-quantifiable impacts (e.g., social, environmental) Approaches to capture best practices and lessons learned Case Study Analysis Evaluate use of SGCT and ESCT Parallel consumer behavior studies Approaches to capture best practices and lessons learned Other Areas Clarify driver differences between EU and US and how assessment methodology reflects differences 30