DOE OE ARRA Program

Steve Bossart

Senior Energy Analyst

U.S. Department of Energy

National Energy Technology Laboratory

EnergyTech 2012

May 29-31, 2012

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Topics• Background

• OE Smart Grid ARRA Program

• Metrics & benefits approach

• Build and impact metrics status

• Consumer behavior projects (SGIG)

• Smart grid demonstration projects (SGDP)

• Case studies

• Qualitative metrics

• Lessons learned

• Life after ARRA

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Background

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DOE OE Mission

Mission of Office of Electricity Delivery and Energy Reliability

• Lead national efforts to modernize the electric grid;

• Enhance security and reliability of the infrastructure; and

• Facilitate recovery from disruptions to energy supply

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Programs created by statute Energy Infrastructure Security Act 2007:

– Smart Grid Investment Grants (Sec. 1306)– Smart Grid Regional Demonstrations

(Sec.1304)

Recovery Act Directed Programs: – Workforce Training - $100M

– Interconnection-wide Transmission Planning and Resource Analysis - $80M

– Interoperability Standards - $12M

Additional OE initiatives- State & Local Energy Assurance

- State Regulatory Assistance

Recovery Act – Grid Modernization

Top 10 States by Total Awarded

State Amt ($M)

NC 434

CA 419

TX 293

NY 276

FL 270

PA 265

MD 233

DC 213

AL 166

OH 146

One-time Appropriation, $4.5B in ARRA funds

$620M for demonstration projects

$3.425B for deployment projects

Investment Grants

Smart Grid Demos

Workforce Training

Resource Assessment &Transmission Planning

Smart Grid Interoperability Standards

Other

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Value Proposition Cost to Modernize• $338-$476B over 20 years

– $ 82-90B for transmission – $232-$339B for distribution– $24-46B for consumer

• $17-24B per year

• Other cost estimate: Brattle >$800B

Benefit of Modernization• $1294 – 2028 Billion• Overall benefit-to-cost ratio

of 2.8 to 6.0

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EPRI, 2011

Previous StudiesBenefit to Cost Ratio for West Virginia of 5:1Benefit to Cost Ratio for San Diego of 6:1Benefit to Cost Ratio for EPRI (2004) 4:1-5:1

$165B Cost$638 - $802B Benefits

EPRI Report: http://www.smartgridinformation.info/pdf/3272_doc_1.pdf

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DOE Smart Grid

American Reinvestment and Recovery Act of 2009 Program

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American Recovery and Reinvestment Act ($4.3B)

• Smart Grid Investment Grants (99 projects)– $3.4 billion Federal; $4.7 billion private sector– >800 PMUs covering almost 100% of transmission– 6500 distribution automation circuits– >15 million smart meters

• Smart Grid Demonstration Projects (32 projects)– $620 million Federal; $1 billion private sector– 16 storage projects– 16 regional demonstrations

Smart Grid ARRA Activities

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Additional ARRA Smart Grid Activities

– Interoperability Framework by NIST ($10M)

– Transmission Analysis and Planning ($80M)

– State Electricity Regulator Assistance ($50M)

– State Planning for Smart Grid Resiliency ($55M)

– Workforce Development ($100M)

Smart Grid ARRA Activities (continued)

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Technology Deployment

Customer Systems

Customer Systems

Customer Systems

Customer Systems

SGIG/SGDP Areas of Smart Grid Technology Deployment

Customer Systems

Advance Metering

Infrastructure

Electric Distribution

Systems

Electric Transmission

Systems

• Displays

• Portals

• Energy management

• Direct load controls

• Smart meters

• Data management

• Back office integration

• Switches

• Feeder optimization

• Equipment monitoring

• Energy Storage

• Wide area monitoring and visualization

• Synchrophasor Technology

• Energy Storage

Customer Systems

EquipmentManufacturing

• Energy devices

• Software

• Appliances

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Schedule for Benefits Analysis

The DOE Metrics and Benefits work is transitioning into the reporting and analysis of impact metrics. See smartgrid.gov

Metrics and Benefits Plan

Build Metric Reporting and Analysis

We are here

Impact Metric Reporting and Analysis

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Key Program Objectives

Key Stakeholders:

NARUC and PUCs

EEI/EPRI

NRECA/CRN

APPA

NASPI

Consumer Advocates

Utilities

Three Objectives:

Information Derived from

131 ARRA Smart Grid

Projects

Advancing the Business Case

Sharing Lessons-

Learned and Best Practices

Determining R&D Needs

• System Engineering

• Advanced Analytics

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Metrics and BenefitsApproach

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DOE Analytical ApproachE

xam

ple

Improvesfeeder 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 itdo that?

What “goodness”

results?

Monetary Value

What is the goodness

worth?

What are Smart Grid

technologies?

Assets

$6000

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Smart Grid FunctionsSensing Control Protection

Wide Area Monitoring, Visualization, and Simulation

Power Flow Control Fault 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

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Energy Storage Applications

Renewable Support Investment Deferral Ancillary Services Load Management

Renewables Energy Time Shift

Electric Supply Capacity Deferral

Area Regulation Electric Energy Time Shift

Renewables Capacity Firming

T&D Upgrade Deferral

Load Following Transmission 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 Support Demand Charge Management

Electric Service Power Quality

Transmission Support

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Smart Grid Metrics Reliability• Outage duration and frequency, momentary disruption, power quality

Security• Ratio of distributed generation to total generation

Economics• Electricity prices & bills, transmission congestion costs, cost of outages

Efficient• T&D electrical losses, peak-to-average load ratio

Environmentally Friendly• Ratio of renewable generation to total generation, emissions per kwh

Safety• Injuries and deaths to workers and public

Field Data Metrics Benefits Value

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Five Primary Analytical Focus Areas

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

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

Transmission System Operations & Reliability

• Application of synchrophasor technology for wide area monitoring, visualization, and control

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Information Relating to Technology Deployment and Impacts

Project Reporting

For SGIG/SGDP

Build Metrics:• Technologies, configurations,

functionality, costs, extent of deployment

Impact Metrics:• Peak demand and electricity consumption• O&M improvements from AMI and DA• Distribution system reliability• Energy efficiency improvements in DA• Applications of synchrophasor technology

Consumer Behavior Studies:• Response to pricing and enabling technologies• Customer acceptance and retention

Technology Performance Reports:• SGDP technology performance and impacts• Energy storage technology comparison

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Who are the Beneficiaries?

• Utilities (What’s in it for my shareholders?)

• Consumers (What’s in it for me?)

• Society (What’s in it for us?)

We get what we reward!

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Metrics and BenefitsStatus

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SGIG Deployment Status

AMI and Customer System Assets

Distribution Assets Transmission Assets $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

$2,767

$888

$163

~$4,500

~$2,500

~$1,000

Total Investments in 99 SGIG Projectsas of March 19, 2012

Reported to date Estimated at completion

To

tal I

nv

es

tme

nts

(M

illio

ns

$)

9.3 of 15.5 million residential and commercial smart meters

Distribution automation equipment on 4,200 out of 6,500

circuits

195 out of over 800 networked phasor measurement units

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Smart Meters Deployed in SGIG Projects

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Application of Advanced Metering InfrastructureInvestments in AMI are being made by 75% of the SGIG projects

Peak and Overall Demand Reduction

62 projects are pursuing ……

• 40 w/ pricing programs

• 25 w/ customer systems

• 21 w/ direct load control devices

Operational Efficiency Improvement

60 projects are pursuing ……

• 60 w/ automated meter reading

• 44 w/ voltage and power quality monitoring

• 51 w/ outage detection and notification

• 50 w/ tamper detection

• 48 w/ remote service switch

• Reducing requirements for generation capacity and energy (less fuel)

• Improved asset utilization• Lower emissions (CO2, NOx, SOx)• Lower bills

• Operations and maintenance (O&M) cost reductions

• Greater responsiveness to customer

• Lower outage duration• Improved energy efficiency

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Status of Smart Grid Investments in SGIG Program

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Automated Distribution Circuits in SGIG

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Distribution Automation

DA investments are being made by over 50% of the SGIG projects

Distribution Reliability

48 projects are pursuing distribution system reliability improvements

• 42 w/ automated feeder switches

• >6 w/ equipment monitoring

• 27 w/ DMS integration

• 21 w/ AMI integrated with OMS

Volt/VAR Control

47 projects are pursuing voltage/VAR control and optimization

• 35 w/ automated capacitor banks

• 32 w/ automated voltage regulators

• 22 w/ DMS integration

• SAIDI, SAIFI and CAIDI improvements

• O&M cost reductions

• Energy efficiency improvements

• O&M cost reductions

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Phasor Measurement Units in SGIG Projects

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Application of Synchrophasor Technology

Investments in synchrophasor technology are being made by 10 SGIG projects

Depl

oym

ent C

halle

nge

Oscillation Detection

Frequency Stability Monitoring

Voltage Stability Monitoring

State Estimation

Model Validation

Islanding and Restoration

Transmission Pathway and Congestion Management

Automated Controls

Detection of Imminent Disturbance Cascading

High SGIG activity (9-12 projects)

Wide Area Monitoring and

VisualizationSource: DOE

DG and Renewables Integration

1-2 Years 2-5 Years >5 Years

Controlled System Separation

Medium SGIG activity (5-8 projects)

Low SGIG activity (1-4 projects)

No SGIG activity

Post-event Analysis

Disturbance Detection and Alarming

Benefits:• Improved reliability

and resiliency• Improved asset

utilization• Reduced

transmission congestion

• Integration of distributed generation and renewables

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Customer Devices in SGIG Projects

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Customers with Smart Meters Enrolled in Pricing Programs in SGIG

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Smart Grid Demonstration ProjectsBuild Metrics

171,361 smart meters have been installed and are operational.

Customer Systems

7,612 customer system assets – 3,665 in-home displays– 1,605 direct load control devices – 1,920 programmable communicating thermostats– 155 smart appliances– 267 energy management devices

58,922 active web portal accounts have been created.

Transmission System Assets– Dynamic capability rating systems (DCRS) on 11 transmission

lines– 11 phasor measurement units (PMUs) – 4 phasor data concentrators (PDCs).

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Smart Grid Demonstration ProjectsBuild Metrics

• Distributed Energy Resources

176 distributed generation units with combined capacity of 1.05 MW

30 storage units with combined capacity of 1.43 MW

25 plug-in electric vehicle charging points.

• Distribution System Assets– 382 automated feeder switches– 264 automated capacitors – 105 automated regulators– 12,947 feeder monitors– 1 transformer monitor– 428 smart relays.

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Consumer Behavior Studies

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SGIG Consumer Behavior Studies

Sierra Pacific

Nevada Power OG&E MMLD CVPS VEC

MN Power* CEIC SMUD DECo

Lakeland Total

Rate TreatmentsTOU l l l l 3CPP l l l l l l l l 8CPR l l 2VPP l l 2

Non-Rate TreatmentsEducation l l l 3Cust. Service l 1IHD l l l l l l l l l 9PCT l l l l l 5DLC l 1

FeaturesBill Protection l l l l l 4

Experimental DesignOpt In l l l l l l l l l l 9Opt Out l l l l 3Within l 1

Number of Participants9,509 6,853 3,196 500 3,735 6,440 4,025 5,000 97,480 5,400 3,000 145,138

l l Sierra Pacific and Nevada Power are testing the effect of a technology package, including an IHD and a PCT* MN Power is also testing the difference between hourly energy feedback and daily energy feedback

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SGIG Consumer Behavior Studies:Study Population Statistics

• Total of ~145,000 customers are expected to “participate” as treatment or control customers• Plan to collect key demographic information on all treatment and

control customers (ideally), subject to survey response rates• Assuming 3 years worth of hourly interval usage meter data (1

year pre-treatment and 2 years post-treatment); this represents 3.9 billion data observations

• To put our SGIG analysis and evaluation effort into perspective:• ComEd’s CAP study included ~8,500 participants and ran for 12

months (June 2010 - May 2011)• CA Statewide Pricing Pilot included ~2,500 participants and ran

for 18 months (July 2002 – December 2003)

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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 Areas1. 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?

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Qualitative Feedback

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Lessons Learned

Surveys

RecommendationsCorrective Actions

Root Cause

Preferences

Best PracticesCompliments

Anecdotes

Observations

Complaints

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Variety of Stakeholders

Electric Service Provider• Decision makers• Operations &

maintenance• Planning • Engineering & design• Customer service• Traders• Purchasing• Regulatory support• Billing

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Smart Grid Demonstration Projects

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AMI Assets

Customer Systems

Distributed Energy Resources

Distribution Assets

Transmission Assets

0 2 4 6 8 10 12

Number of SGDP Regional Demonstration Projects With Various Types of Smart Grid Assets

43

Fault Current Limiting

Wide Area Monitoring, Visualization, & Control

Dynamic Capability Rating

Power Flow Control

Adaptive Protection

Automated Feeder Switching

Automated Islanding and Reconnection

Automated Voltage & VAR Control

Diagnosis & Notification of Equipment Condition

Enhanced Fault Protection

Real-time Load Measurement & Management

Real-time Load Transfer

Customer Electricity Use Optimization

0 2 4 6 8 10 12

Number of SGDP Regional Demonstration Projects Addressing Various Smart Grid Functions

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Improved Asset Utilization

T&D Capital Savings

T&D O&M Savings

Theft Reduction

Energy Efficiency via Reduced Losses

Electricity Cost Savings

Reduced Power Interruptions and Restoration Costs

Improved Power Quality

Reduced Pollutant Emissions

Improved Energy Security

0 2 4 6 8 10 12 14

Number of SGDP Regional Demonstration Projects Seeking Various Smart Grid Benefits

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Case Studies

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eEnergy VermontA State-Wide Strategy for Smart Grid Development

Key Activities• Smart metering roll-out for outage management and time-based rates for

demand response. • Distribution system automation including switches, reclosers, SCADA, and

communications backbone systems.• Consumer behavior studies by Vermont Electric Cooperative (VEC)and

Central Vermont Public Service to assess customer acceptance, response, and retention.

Aims and Strategies• A collaborative effort involving all of the state’s electric distribution companies

to modernize Vermont’s electric grid and foster economic growth as part of the state’s “eState Initiative” with telecommunications and health care.

Results and Benefits • VEC’s outage management system has improved SAIFI by 50% and CAIDI

by 40% since installed in 2008.• VEC’s smart metering roll-out and outage management system has a 5 year

payback period from operational saving alone.• VEC received POWER Magazine’s first “Smart Grid Award” in August 2011 for

its pioneering efforts in outage management.• Restoration of the grid from Tropical storm Irene occurred quicker and with

greater customer awareness of repair schedules due to smart meters, web portals, and more effective outage management.

Utilities working together to

modernize the grid.

Facts & FiguresTotal Project Budget: $137,857,302

Federal Share: $69,928,650

Distribution Automation:

47 circuits and substations

Smart meters:311,380

Time-Based Rates:

1,500 customers targeted

Vermont Electric Cooperative’s Smart Grid Operations Center

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Oklahoma Gas & ElectricReducing peak demand in Oklahoma

Key Activities• OG&E’s “Positive Energy Smart Grid Project” is installing 750,000

smart meters system-wide and distribution automation equipment on 40% of the circuits serving homes, offices, farms, and factories.

Aims and Strategies• Defer construction of two 165 MW power plants by lowering peak

demand using demand response programs that involve time-based rates and customer enabling technologies.

• Improve service and lower costs by operating automated capacitors and distribution switches.

Results and Benefits • Pilot demand response project of 3,000 customers during the

summer of 2010o 98% of participating customers saved money on their billso Measureable demand reductions from customers participating

in critical peak and variable peak pricing and who use the web portal, programmable communicating thermostats, and in-home displays

• Expect to lower operations and maintenance costs and improve service reliability and power quality.

Customer-Enabling

Technologies Used by OG&E

Facts & FiguresTotal Project Budget: $293,201,332

Federal Share: $130,000,000

Customers Served:766,866

Service Area: 30,000 square miles in Oklahoma and Western Arkansas

Generation Capacity: 6,600 MW

In-Home Display

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City of NapervilleEmpowering Consumers in Illinois

Key Activities• Naperville’s “Smart Grid Initiative” completes a decade long efforts

to automate the city’s entire electric distribution grid.• Deploys smart meters city wide to all customers.• Provides consumer education programs to engage public

participation in shaping smart grid policies and programs.

Aims and Strategies• Strengthen reliability and reduce the frequency and duration of

power outages.• Empower consumers to manage their own power consumption

and costs to enhance energy efficiency, reduce peak, and reduce power purchase costs from wholesale suppliers.

Results and Benefits • Distribution automation investments have improved System

Average Interruption Duration Index each years since 1991 by from 15% to 55%.

• O&M costs from dispatching repair crews reduced by about 40%.• Enacted Naperville Smart Grid Consumer Bill of Rights.• Implemented Smart Grid Ambassadors Program

Consumer programs for

smart grid-savvy customers

Facts & FiguresTotal Project Budget: $21,988,220

Federal Share: $10,994,110

Distribution Automation:

Remaining 6 of 117 circuits

Smart meters:57,000

Time-based Rates:

1,500 customers targeted

Residents provide feedback on Naperville’s smart grid policies

and programs.

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M2M Communications Agricultural Demand Response Program Saves Electricity in California

Key Activities• M2M Communications of Boise, Idaho, has developed a two-way,

web-to-wireless controller for irrigation pumps. The controller is part of an irrigation load control system that includes sensors, smart meters, and other monitoring equipment.

• M2M created the Peak Energy Agricultural Rewards (PEAR) program, a demand response program marketed to agricultural customers of California’s investor owned utilities.

Aims and Strategies• As part of the PEAR program, farmers can earn cash incentives

and avoid peak demand charges.• Water consumption and soil moisture can be monitored from a web

portal, enabling farmers to make informed decisions about possible participation in peak demand events.

• Farmers can schedule irrigation pump start up/shut off, saving water, time, and manpower, and improving overall efficiency.

Results and Benefits • DOE ARRA funds greatly contributed to M2M’s final R&D push to

get the controller to market.

• PG&E called four peak pricing events in 2011; PEAR program participation reduced summer peak demand by an average of 18 MW per event.

Reducing Peak Electric Demand and

Increasing Efficiency of Farm Operations

Facts & FiguresTotal project budget:

$4,342,340

Federal share: $2,171,170

Devices installed: 300

Total summer peak demand reduction in 2011: 72 MW

An irrigation pump connected to and controlled by M2M’s web-to-wireless controller

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Operational Efficiency Improvements at Talquin Electric Cooperative

Background:• For over 70 years, members submitted their own meter

readings (highly inaccurate)• Rolling trucks 6,000 times/year for routine service

connection/reconnection and 9,000 times/year for non-payment problems ($40-$50/truck roll)

• Outage locations based on pattern of customer phone calls

TEC’s SmartGrid Program:• Deployed AMI to about 56,000 customers and upgraded 46

of 86 circuits with advanced capacitors for voltage control and outage management.

• With AMI, TEC avoided 8,800 truck rolls in 2011 for non-payment problems saving more than $350,000

• Expecting to avoid additional 5,500 truck rolls for routine service connections (savings of $200,000/year)

• Expecting to reduce outage durations from more precise pinpointing of faults and dispatching of repair crews to exact locations without guesswork.

Technician changes out analog meter with a smart meter

Facts & FiguresTotal Project Budget: $16,200,000

Federal Share: $ 8,100,000

Customers Served:57,000

Service Area: 2,600 square miles spanning 4 counties in northern Florida

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Lessons Learned

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Regional Smart Grid Peer-To-Peer Meetings

8 regional meetings in 2011 and 2012

Common Themes• Be prepared to address customer’s sensitive issues• One size does not fit all• Set reasonable expectations• Prepay is showing promise for low income customers• Strategy needed for change management• Measure and communicate benefits to consumers• Opt-out provisions are important• Invest in staff training• Customers need actionable information• Grid modernization is an evolution

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Life After ARRA Smart Grid Program

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Life After ARRA Smart Grid Program

Build and maintain momentum

• Make business case

• Identify, allocate, and quantify benefits

• Identify and quantify costs

• Address technical issues

• Address regulatory issues

• Address customers concerns

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Contact InformationSteve Bossart

(304) 285-4643

Steven.Bossart@netl.doe.gov

Federal Smart Grid Website

www.smartgrid.gov

Smart Grid Clearinghouse

www.sgiclearinghouse.org/

Smart Grid Implementation Strategy

www.netl.doe.gov/smartgrid/index.html

Questions ?