DOE Interconnection Activities Presented by: Eric M DOE Interconnection Activities Presented by: Eric M. Lightner, Program Manager Electric Distribution/GridWise Office of Electricity Delivery and Energy Reliability U.S. Department of Energy June 15, 2006 Carmel, IN

Overview Office of Electricity Delivery & Energy Reliability (OE) Mission & Organizational Structure Funding Profiles Electric Distribution R&D Current Interconnection Activities Interconnection Standards/Implementation Advanced Distribution Operating Concepts EPACT 2005 Section 1254 Interconnection Contact/Web Info

Office of Electricity Delivery and Energy Reliability Mission Lead national efforts to modernize the electric grid, enhance security and reliability of the energy infrastructure, and facilitate recovery from disruptions to energy supply. Our office is the focal point in the Department for electricity action, both research and development and policy. It is also our mission to assist FEMA and others to respond to energy supply disruptions. Distributed energy was recently added to our portfolio and we are in the process of integrating those activities into our mission and plans.

Infrastructure Security & Emergency Response (ISER) Office of Electricity Delivery and Energy Reliability Office of the Director Resource Management Staff Site Office Research & Development (R&D) Permitting, Siting, & Analysis (PSA) Infrastructure Security & Emergency Response (ISER) Visualization and Controls High Temperature Superconductivity Energy Storage and Power Electronics Distributed Systems Modeling and Analysis Electric Markets Technical Assistance Electricity Exports/ Presidential Permits Power Marketing Administration Liaison Energy Infrastructure Protection State/Local Gov’t Partnerships Training and Exercises Visualization Critical/Vulnerability Assessment Emergency response support Our strategy for grid modernization involves 3 areas of activity: Research and Development Permitting, Siting, and Policy Analysis Infrastructure Security and Emergency Response Our focus is on those activities that fall within the federal role. We are pursing many exciting activities. But we accomplish very little on our own. Our success is geared to the strength of our partnerships.

FY07 Congressional Budget Request OE Funding Summary Activity FY 2002 FY 2003 Request FY 2004 Request Superconductivity 32, 388 47,838 Transmission Reliability ($000) Activity FY04 FY05 FY06 Superconductivity 37,150 54,562 49,995 Transmission Reliability 11,431 15,600 12,870 Electric Distribution R&D 14,155 17,322 70,454* Energy Storage 8,763 3,969 2,970 Electricity Restructuring 19,351 19,842 12,276 Construction 736 769 Program Direction 9,627 8,135 13,313 Totals 101,213 120,199 161,878 * Including the Distributed Energy Program budget, previously part of the DOE EERE FY07 Congressional Budget Request $96M requested for R&D (same level as FY06 request)

Electric Distribution R&D Electric Distribution Transformation Integrating DER and load management to respond to customer needs for differentiated electric delivery services in power quality and power reliability GridWise Modernizing the grid with sensors/communications/ IT/controls for an intelligent, secure grid Interconnection standards and Implementation Activity Advanced distribution operating concepts incorporating DER Modernize distribution grid infrastructure and operations, from distribution substations (69 kV and down) to consumers, with 2-way flow of electricity and information

Interconnection Standards/Implementation Ongoing DOE Activities IEEE 1547 Series of Interconnection Standards Standards Development IEEE 1547 Series of Standards & UL 1741 Interconnection Equipment Validation Testing to support Standards Development Distributed Utility Integration Test Regional Implementation PJM Small Generation Technical Requirements (2MW std approved by FERC, 2-10MW pending further testing/monitoring) Model interconnection procedures for 0-10 MW systems for Mid-Atlantic States approved November 05, as part of the Mid-Atlantic Distributed Resource Initiative (MADRI)

Testing to Support Interconnection Standards Development Distributed Utility Integration Test (DUIT) Anti-islanding tests with multiple DRs to statistically assess the probability of islanding occurrences under high/low penetration scenarios Homogeneous groups Small groups Progressions (up to 80% penetration)

Advanced Distribution Operating Concepts DER integration for Demand Response Detroit Edison Advanced Communication & Control of DER

Microgrids: 2 New Awards in FY06 PoP: FY06-08, with advanced controls developed and demonstrated at laboratory in FY07 GE – Microgrid Energy Management (MEM) Partners: Rocky Research, NREL Develop and demonstrate a MEM framework for a broad set of microgrid applications that provides a unified controls/protection/energy management platform University of Wisconsin, Madison – CERTS Microgrid Partners: LBNL, SNL, AEP, Tecogen, DE Solutions Prioritize, develop, and then demonstrate needed additional technology enhancements required to optimize microgrid functions, while enhancing business cases

Key EPACT 2005 Provisions for Grid Modernization Title XII - Electricity Subtitle A – Reliability Standards: Electric Reliability Organization Subtitle B – Transmission Infrastructure Modernization Section 1221 – Designation of National Interest Electric Transmission Corridors Subtitle E – Amendments to PURPA Section 1252 – Smart Metering and Demand Response Section 1254 - Interconnection Title IX – Research and Development Subtitle B – Distributed Energy and Electric Energy Systems Section 925 Electric T&D Programs RD&D For example, here are several of the key provisions on which we are working. Research, development, and demonstration of advanced electric system technologies is a key part of our mission. More about our activities related to Section 925 in a moment. Our mission in siting and permitting transmission has been expanded due Section 1221. I imagine many of you are participating in our efforts to designate national interest electric transmission corridors. The PURPA amendments primarily address distribution-level modernization, including the customer side of the meter.

EPACT 2005 – Section 1254 Interconnection Not later than 1 year after enactment, each State regulatory authority and each nonregulated electric utility shall consider adoption of an interconnection standard DOE activities in support of Adoption of Standards Regional promotion of current best practices on interconnection, including model codes developed by state regulatory agencies PJM Small Generation Technical Requirements MADRI Model Interconnection Procedures – Expand assistance to other regions, such as, MISO/OMS for Midwest Interconnection strategy development and implementation Interconnection of generating facility on consumer’s premises to local distribution facilities IEEE 1547 Interconnection Standard facilitation/development

Contact Information Eric M. Lightner Program Manager, Electric Distribution/GridWise Office of Electricity Delivery and Energy Reliability Department of Energy (202) 586-8130 eric.lightner@hq.doe.gov For more Office/Program information please see, OE http://www.oe.energy.gov/ Electric Distribution/GridWise http://www.electricdistribution.ctc.com/ Distributed Energy Program http://www.oe.energy.gov/randd/distributed_energy.htm