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CIGRE -103

CIGR Canada Conference on Power Systems Vancouver, October 17- 19, 2010

The Integrated Power Grid

STEVE JENNINGS, THORNE KING BPL Global, Ltd.

SUMMARY New innovation is taking place today to engineer the smart grid. This paper presents a integrated view of energy infrastructure - one where energy production, delivery and consumption are coordinated in a way that optimizes efficiency, reliability and cost while meeting the needs of society. This industry is on this path to integration. This is apparent as we look around the smart grid market and see point solutions emerging everywhere. These point solutions are being developed in three major areas, management of distributed energy resources (DER), management of the power grid and management of end-user power consumption. To arrive at the final destination of integration, the smart grid must address gaps in edge intelligence, communications infrastructure, analytics & modeling and integrated management. Greater efficiency and reliability can be realized by integrating point solutions. As smart grid solutions evolve, utilities must seek opportunities to integrate point solutions onto a common platform. An integrated power infrastructure holds the promise of tremendous economic and environmental gains.

KEYWORDS
Smart Grid, Distributed Energy Resources, Integration, Reliability, Efficiency, Direct Load Control, Load Management.

sjennings@bplglobal.net, tking@bplglobal.net

1. INTRODUCTION In 1964 the Russian astrophysicist Nikolai Kardashev proposed a scale for measuring he evolution of a civilization based on its energy consumption. A Type I civilization an harness the power of its own planet; it captures a portion of the solar energy that reaches the surface including the energy of temperature gradients or the mechanical energy of moving masses of air and water. The next level, a Type II civilization, harnesses the power of its solar system making it far more powerful than a Type I civilization. A Type III civilization is the most powerful; it understands and uses the power available throughout the galaxy [1]. In his book The Physics of the Impossible Michio Kaku uses these classifications to place our own civilization as a Type 0: one that primarily uses dead plants, oil and coal to meet its energy needs. However, the activities taking place today in the smart grid can be viewed as the early stages of a Type I civilization. We are taking the first steps towards a more advanced power infrastructure: one that can use all practical forms of renewable energy, allowing it to be inputted and extracted at any point in the power delivery network. We see signs of a Type I civilization in the evolution of the Internet and advanced telecommunication infrastructures. These networks will play a crucial role in our future energy infrastructure. Advanced software platforms will leverage pervasive networking to integrate the operation of energy generation (both central and distributed), delivery and consumption [2]. In this paper we will discuss this path to integration and its benefits. 2. THE PATH TO INTEGRATION An integrated Energy Infrastructure is one where energy production, delivery and consumption will be coordinated in a way that optimizes efficiency, reliability and cost while meeting the needs of society. It will support the leveling of energy production. Todays power production is tilted: large central generation plants produce power that is delivered through transmission and distribution networks to the end consumer. In an integrated grid, power production is leveled; it is produced and consumed at any point within the grid network. We are early on this path to integration. This is apparent as we look around the smart grid market and find point-type solutions emerging everywhere. These are solutions whose functionality is dedicated to a single purpose, such as managing load, detecting faults or managing a distributed generation (DG) resource. We see these point solutions being developed in three major areas: management of distributed energy resources (DER), management of the power grid and management of end-user power consumption.

Figure 1 represents the smart grid ecosystem, the systems within the power grid that ultimately must interact with each other. Around the perimeter are four major asset classifications: Distributed Generation & Renewables, Energy Storage, Direct Load Control and Intelligent Distribution. Intelligent distribution describes the extension of intelligent control down into the distribution level of the power grid. The electrical power grid is logically separated into transmission and distribution

(T&D) systems. Transmission systems typically operate above 110kV while distribution systems operate at lower voltages. Electric utilities with SCADA systems typically have extensive control over transmission-level equipment and, to a lesser degree, control over distribution-level equipment. However, they are usually unable to control the smaller assets represented in the three other quadrants of Figure 1. When these smaller, distributed assets are integrated onto and managed through a common platform, a virtual generation resource is created: one that holds the potential to deliver performance and reliability equal to or better than a traditional centralized generator.

The major areas where continued innovation is needed are presented as four rings in the center of Figure 1. They are: 1) Edge Connectivity the last mile connection into widely disparate energy assets across the distribution network including generation, storage and load 2) Communications Infrastructure the wide area network, addressing the need for higher bandwidth with lower latency 3) Analytics & Modeling the smart in smart grid that supports predictive functionality, automated remedial action and continuous optimization 4) Integrated Management bridging the gap between new technology platforms and the legacy utility systems like EMS, SCADA, CIS, OMS, etc. Advancement in these four areas is essential to creating a fully integrated power grid infrastructure. In the fully evolved smart grid, the operations of virtual generation and the intelligent distribution grid will be coordinated through a unified platform, creating one integrated system. However, it should be noted that the intelligence of this platform will most likely be distributed in order to meet the performance requirements of the system. Throughout this paper we will discuss the way integration will create a value multiplying effect within the power grid. This effect will be realized by leveraging the power of pervasive networking to use information obtained from one point-solution to create additional value within another point-solution. For example, a real-time, two-way communicating load management solution might, as part of its data set, capture voltage from the edge of the distribution grid. Within the load management point-solution this voltage reading has a single purpose, to compute actual power reduction values. However, when this voltage information is delivered to a VAR/Voltage management solution it could enable additional control loops to support more sophisticated volt/var management, boosting the efficiency of the distribution grid. It could be used in a grid modeling application to support real-time voltage mapping and so on. This multiplying effect enhances the value of both the load management solution and other solutions integrated onto the platform. We have seen this type of evolution before. Recall the early days of networking computing equipment, certain productivity gains were realized by the introduction of intelligent computing machines. These gains were extended as computers and accessories were placed on a manufacturers proprietary local network. However, much more substantial gains were realized when a standard emerged, TCP/IP over Ethernet, to network disparate devices through a single wide area network: the Internet. Energy assets, like those described above, are functional components of an energy network. In the future, these energy assets will operate in harmony through a common communication infrastructure, creating a more intelligent energy grid. Significant operating cost reductions and reliability improvements will result when these devices become connectable over a common network protocol. 3. THE IMPACT ON GRID EFFICIENCY To gain an appreciation for the impact that improved grid efficiency can have, it is helpful to examine the price that is paid for inefficiency in the generation of electric power today. The T&D system includes everything between a central generation plant and an end-use site, such 3

as a home, a business or industrial plant. For central generation, some of the energy supplied by the generator is lost along the way due to the resistance of the wires and equipment through which the electricity passes. Most of this energy is lost to the atmosphere in the form of heat. The magnitude of these losses varies based on the physical characteristics of the specific T&D system, as well as how it is operated. The Energy Information Administration (EIA) estimates that in 1999 T&D losses in the United States averaged almost seven percent of gross production, measured in generated kilowatt-hours [3]. During warmer weather, power lines stretch and conductivity diminishes, causing losses that can exceed fifteen percent. Using data compiled by the EIA, we can calculate that these losses cost the US economy just under $17.4 billion in 2009. It is clear that the business case for improved grid efficiency is fairly straightforward: delivering more of the energy produced in power plants translates into a lower cost to produce which in turn means paying less for energy. In an integrated power grid, energy could be injected and extracted at any point. This means that centrally generated power can be supplemented with power produced closer to the load, thus reducing the losses described above. The integrated operation of generation (both centralized and distributed), storage and load management will be coordinated to minimize losses thus improving overall grid efficiency. In addition, more efficient forms of generation can be applied, further improving grid efficiency. For example, the Environmental Protection Agency estimates a properly sized combined heat & power (CHP) system to have an average 75% efficiency verses 49% for central generation [4]. A CHP system is deployed close to the load and generates power and thermal energy from a single fuel source. CHP is used either to replace or supplement conventional centrally generated electricity from the grid and an on-site boiler or heater. Improving grid efficiency is vital to the integration of larger centrally located renewables like wind and solar farms, which are often located far from the loads they must serve. For that reason, the cause of improving grid efficiency is in perfect alignment with that of expanding renewable power generation. Improved efficiency will improve the percentage of renewables in the total fuel mix. Lowering the amount of energy lost in T&D effectively increases the share of renewables in the total, assuming the gains are offset by reducing the amount of energy produced from traditional generation sources. Greater grid efficiency means lower emissions to generate and deliver the same amount of consumed energy. There is little doubt that regulation of carbon dioxide (CO2) is imminent and the power sector will be a primary target. While there are technologies, either currently available or in development, designed to mitigate CO2 emissions from power plants, the fact remains that the easiest ton of CO2 to remove from the atmosphere is the one that is not emitted in the first place. Another value multiplying effect of an integrated power grid is the ability to manage carbon from multiple disparate resources through a single integrated platform. 4. THE IMPACT ON GRID RELIABILITY It is important to recognize the high degree of interrelatedness between grid efficiency and grid reliability. In many areas of the US, transmission constraints have reached the point where they not only cost consumers billions of dollars in congestion charges, they also threaten the integrity of the power system itself. Over the past twenty years, the situation has continued to deteriorate to the point where now the question of installing a new line is nearly 4

moot in some locations. By the time it would be completed, demand would long since have outstripped the ability of the local grid to meet it. An integrated power grid will open up new ways to maintain the balance between power production and demand on the grid. Grid operators will have access to an array of faster acting resources with which to maintain this balance. Faster acting resources translate to a more efficient and reliable power grid. For example, grid operators today rely on fossil-fuel power plants, primarily gas turbines, to supply Regulation Power Service to smooth out a grids frequency variations. In response to a signal from the operator, these plants ramp up and down to roughly balance supply and demand. This up/down ramping control is costly and polluting because power plants burn their fuel most efficiently when they are kept online and fully loaded. Gas-fired frequency regulation is also increasingly expensive, due to the increasing cost of natural gas. Furthermore, increasing cost of natural gas is accelerating the installation of wind turbines, which may increase the need for Regulation Services to smooth out intermittent operation of these resources. The California Energy Commission indicates that gas-fired generators can take five minutes or more to respond to CAISOs control signals, which are issued every four seconds. By then, the system has often moved back toward equilibrium on its own. In an integrated power grid, intelligent management of load, storage and small generators can supply the Regulation Service, avoiding this inefficiency. Advanced control algorithms will allow smaller distributed generation plants and energy storage devices to be controlled in a manner that would allow them to provide Regulation Services that are faster responding and less polluting. These smaller, highly responsive resources would be capable of ramping up and down as fast as CAISO can send its control signal. Tighter control results in higher reliability, greater efficiency and fewer emissions. This new regulating capability does not come at the expense of larger gas fired plant. On the contrary, it creates yet another value multiplier that can improve the grids reliability. This regulating control strategy would free up gas-fired plants to provide extra peaking power on hot summer days when air conditioners are fully loaded and interstate power lines are operating at maximum capacity. Moreover, the quick response will keep a tighter hold on the grids frequency and damp power deviations. These fluctuations start small but can initiate a cascading failure when the system is overstressed. The integrated power grid will deliver another value multiplying effect in the area of volt/var management. As discussed earlier, in a fully integrated power grid distributed generation, load and storage are coordinated and behave like a single virtual entity. Generation and storage resources located near load centers will be equipped with power electronic converters to interface with the grid; therefore it is feasible for these resources to provide reactive power and active power at the fringe of the power grid for dynamic voltage regulation. Maintaining adequate reactive power reserves can prevent voltage instability and collapse, avoiding wide scale power outages. This capability combined with the ability to leverage voltage readings from load management devices or smart meters at the fringe of the distribution grid means that distributed generation and storage can be used to manage voltage close to the load. In an integrated power grid, automated substations along with distribution capacitors will be managed through the common platform. This will enable several solutions for power factor compensation and harmonic filtering by controlling conventional capacitor banks with contactor switching or fast-acting, real-time banks with thyristor switching and active filters. Specially designed capacitors and inductors serve a dual purpose of providing reactive power and filtering of harmonics.

In addition to the reliability issues discussed above, there are significant costs associated with improper management of reactive power. When reactive power is not properly managed it uses available system capacity that would otherwise be available to serve customer real-power load. A typical method to visualize this concept is using the mug of beer analogy. A mug has a certain beer carrying capacity based on its size. That capacity can be taken up by either beer (real power) or head (reactive power). The more capacity the head takes up, the less capacity there is for beer. Too much reactive power increases the current flowing between the generator and the load. This can cause equipment to become overloaded, which results in system reconfigurations, costly upgrades and even customer load curtailments to prevent these overloads from occurring. Managing reactive power can improve the efficiency with which real power is delivered to customers. 5. THE ROLE OF COMMUNICATION INFRASTRUCTURES A very robust communications backbone is essential to the integrated power grid. This may lead to an increased role for wireless providers, albeit through dedicated portions of their infrastructure. Due to the magnitude of this communications requirement, the building of separate, utility owned communication infrastructures will ultimately not be feasible. Building separate communication infrastructures would be the equivalent of utilities building their own national highway system right next to our current roadways just to drive their service vehicles over. Instead, utilities will leverage the billions of dollars already invested into communication infrastructures to obtain the bandwidth, latency and security required by the integrated grid. However, large multinational communications vendors must meet very specific utility requirements before their solutions will be viable. These requirements include but are not limited to: coverage, flexible capacity, low total cost, quality of service, prioritized messaging, future proofing, security and support for changing capabilities. The integrated power grid will place ever increasing demands on the communications backbone. We will see communications technology evolve from supporting the needs of todays point solutions, like fifteen minute interval metering, towards ultimately supporting the implementation of cross platform remedial action schemes, where response rates are measured in milliseconds. Communications companies and software platform providers will work together to meet these demands. Platform providers will address the requirements for lower latency by pushing intelligence out towards the edge of the power distribution grid, actually placing it within the communication infrastructure itself. Sophisticated predictive functionality, which will allow action to be taken prior to actual event occurring, will further improve latency. This type of functionality will also drive an increasing need for sensing points within the grid. These requirements will be met through the development of new, lower cost sensors and through advancements in virtual sensing: the ability to know the value of a parameter at a specific location in the grid based on physical construction of the grid and the value of other measure points. The use of virtual sensing will reduce costs and help to slow the growth of bandwidth requirements. 6. CONCLUSION We hear arguments today that developing countries cannot hope to achieve the lifestyles enjoyed by more developed countries because there simply isnt enough energy available to support them. This is an example of Type 0 thinking. In a Type I civilization there is sufficient energy to support the dreams and aspirations of all countries. We are on the path towards this next level. As smart grid solutions evolve, utilities must seek opportunities to 6

integrate point-solutions onto a common platform. An integrated power infrastructure holds the promise of tremendous economic and environmental gains associated with new, cleaner and more abundant power sources plus the ability to deliver more of the energy content of the input fuels we use today.

For more information please contact: Thorne King VP Marketing BPL Global, Ltd. +1 724 933 7700

BIBLIOGRAPHY

[1] Kardashev, Nikolai (1985). "On the Inevitability and the Possible Structures of Supercivilizations" in "The search for extraterrestrial life: Recent developments; Proceedings of the Symposium, Boston, MA,June 18-21, 1984". p. 497504. http://articles.adsabs.harvard.edu/cgi-bin/nph-iarticle_query?1985IAUS..112..497K [2] Kaku, Michio. "The Physics of Interstellar Travel." Welcome to Explorations in Science with Dr. Michio Kaku. Jan.-Feb. 2003. Web. 07 Sept. 2010. <http://mkaku.org/home/?page_id=250>. . [3] "Annual Energy Review (AER)." U.S. Energy Information Administration - EIA Independent Statistics and Analysis. 19 Aug. 2010. Web. 02 Jan. 2010. <http://www.eia.doe.gov/emeu/aer/eh/eh.html>. [4] "Ethanol Fact Sheet | Combined Heat and Power Partnership | US EPA." US Environmental Protection Agency. 23 Apr. 2007. Web. 10 July 2010. <http://www.epa.gov/chp/markets/ethanol_fs.html>.

BIOGRAPHIES Steve Jennings Steve Jennings is Chief Marketing Officer at BPL Global (BPLG) and is responsible for directing the marketing organization in establishing company strategy and growing the companys leading position, brand and offerings in the marketplace worldwide. Mr. Jennings brings international business development and marketing experience, including Europe and Asia, to support the companys global reach. He has worked in all aspects of marketing and led the definition and global launch of successful new products for multiple technology companies. During his career he has held senior sales, marketing and general management roles including 18 years executive experience serving the electric utility, computer, communications and semiconductor industries. Mr. Jennings joined the firm with BPL Globals acquisition of Serveron where he was Vice President of Marketing. Mr. Jennings 7

was a member of the executive team that grew Serveron into an industry leader in electric utility power transformer monitoring. He came to Serveron from Credence Systems where he was Director of Marketing. Prior to Credence, Mr. Jennings spent eleven years with Tektronix in a variety of positions including National Sales Manager, Director of Marketing and General Manager across multiple business units. Mr. Jennings holds a Bachelor of Science Degree from the University of Connecticut and earned his MBA from the University of Oregon.

Thorne King Thorne King is Vice President Marketing for BPL Global (BPLG). Reporting directly to the CMO, he is responsible for branding, public relations, marketing publications, corporate marketing events, marketing agencies, web presence, government relations, direct marketing and direct marketing services. Mr. King has deep marketing experience in smart grid solutions and designing and implementing marketing programs that engage the utilitys customers in smart grid programs. He has more than 25 years of experience in the fields of sales, marketing and strategic planning. Prior to joining BPLG, Mr. King worked for Innovation Works where he held the position of Executive in Residence working closely with the management teams of investment portfolio companies to identify and address critical business issues facing those companies and serving as a board observer. Previously, Mr. King worked for E. I. DuPont de Nemours & Co, Inc. with more than 20 years experience in sales, marketing and strategic planning. He received a Bachelor of Science degree in Chemical Engineering from the Bucknell University.