Smart Grid Sector Study

The Smart Grid:

a business sector study and economic development

opportunities for Michigan

New energy economy plays a critical role in a new round economic development

• Substitution effectto cope with energy crisis and preserve human living environment

• Pull effectto attract a large investment and create numerous jobs

• Effect of technological progressto further technology level of energy supply and provide a new platform for economic

development

2UP6550 | Robert Moreo + Yuchen Mao | Wayne State University

Smart grid: an enabler of energy economy

Grid: an enormous, complex network of transmission and distribution lines and devices along which electricity, generated at large, central fossil fuel plants, hydroelectric dams, and nuclear facilities, travels many hundreds of miles.

Smart grid:Wikipedia: delivering s electricity from suppliers to consumers using two-way digitaltechnology to control appliances at consumer’s homes to save energy, reduce cost and increase reliability and transparency.GridWise Alliance: a more complex and sophisticated infrastructure that will continue topower our digital economy but in a cleaner, more reliable, and more affordable way. The Smart Grid: An introduction: using digital technology to improve reliability, security , and efficiency of the electric system: from large generation, through the delivery systems to electricity consumers and a growing number of distributed generation and storage resources.Smart grid solutions: an energy internet: marrying information technology with our current electrical infrastructure, helping us support the energy needs of our 21st century society. In essence, an energy internet, delivering real-time energy information and knowledge, empowering smarter energy choices.


Principal characteristics

• Enable active participation by consumers

• Accommodate all generation and storage options

• Enable new products, services, and markets

• Provide power quality for the digital economy

• Optimize asset utilization and operate efficiently

• Anticipate & respond to system disturbances (self-heal)

• Operate resiliently against attack and natural disaster


Smart grid is more

• Reliable

• Secure

• Economic

• Efficient

• Environmentally friendly

• safe


Smart Grid TechnologyResearch, Development and Demonstration


Smart Grid Functions

7

Smart Grid Technologies and their applicability

• Enables active participation by consumerssmart meters

advanced metering infrastructure

existing automatic meter reading technology

programmable communicating thermostat

smart home software

home automation network interfaced with utility smart grid system

building/ facility energy management system interfaced with market

pricing signal/ utility smart grid system


• Accommodates all generation and storage optionsvirtual utilities (integrated diesel generator with load management

plug-in hybrid electric vehicles

solar/ wind generation

distributed energy resource management system

energy storage devices/ systems


• Enables new products, services, and marketsreal-time/ time-of-use pricing options design and research

new market system (applying intelligent network feedbacks and

consumer responses)

demand response/ load management program

appliances interface with utility smart grid system

motor and drives interface with utility smart grid system


• Provides power quality for the range of needs in a digital economysmart sensorsintelligent electronic devicessmart switches capable of communicationssmart reclosers with communications capabilityintelligent assets with built-in communications (smart transformer,

breakers)smart feeder automationinterconnection protocolssystem interoperability adoption project


• Optimizes asset utilization and operating efficiencycondition-based monitoring/ maintenancecomputerized maintenance managementadvanced asset management softwareadvanced outage avoidance and managementdynamic line rating to improving system reliabilitytransformer load managementgrid simulator and modelerflexible power flow controlprocess re-engineering using intelligent system


• Addresses and responds to system distribution in a self-healing mannerintegrated outage and work management system

outage damage assessment for restorationdistribution state estimatorfault location and analysis, managementwide area monitoring systemsubstation automationstation equipment condition and reliability monitoringfeeder and distribution automationsmart feeder automationautomated adaptive relayingfeeder fault detection and diagnosticsvoltage regulator with communication capabilitycapacitor control with communication capability


• Operates resiliently against physical and cyber attacks and natural disasters

cyber-security and data integrity

weather prediction and storm damage forecast and outage management system


Brief history

• Alternating current power grid evolved after 1896

• Automatic metering reading in 1980s

• Advanced metering infrastructure, prototype sensor and then smart meters in 1990s

• In 2000, Telegestore Project in Italy and wide area measurement system

• In the US, Austin, Texas and Boulder, Colorado


Worldwide smart grid

• AustraliaCommitting to investing heavily

• CanadaEnergy Conservation Responsibility Act

• Chinawide area monitoring system

• UKGreen Recovery Plan

• Republic of Koreafully integrated smart grid system


usa• Electricity Advisory Committee• GridWise Alliance• Electric Power Research Institute• GridWise Architecture Council• Galvin Electricity Initiative• Smart Grid Policy Center• Electric Drive Transportation Association• Federal Energy Regulatory Commission and the National Association of Regulatory Utility

Commissioners• North American Electric Reliability Corporation• DOE and the U.S. Environment Protection Agency• American Public Power Association• Edison Electric Institute• Center for American Progress


The State of Michigan

• Michigan DELEG: workforce training in smart grid technology• Whirlpool Corp. : smart appliances• DTE: smart meter technology• GE: new research center and A123 battery manufacturing facilities• Michigan Clean Renewable and Efficient Energy Act


UP6550 | Robert Moreo + Yuchen Mao | Wayne State University19

Case Study: DTE Energy

Provides gas and electric utility servicesto 2.7 million Michigan homes and businesses,and energy-related services to businesses and industries nationwide.

Business operations in 26 states

Headquarters in Detroit

$532M earnings on $8B 2009 revenue

10,200 employees



Vincent G. Dow – VP Distribution Operations

Oversees electrical distribution system, including distribution and substation operations, outage restoration, new customer connections, engineering, field and meter services, and all distribution system construction.

Also oversees asset optimization, resource management, performance management, and the Smart Grid efforts for DTE Energy.



DTE Energy Ventures:

Over $100 million in venture capital invested in energy-related companies in MI and elsewhere

Investment focus includes Smart Grid sector

Collaborates with University of Michigan to offer $100,000 Clean Energy Prize



DTE Economic Development:

Confidential building and site location assistance

Rate analysis and support

Strong community and economic development partnerships to provide direct access to key decision-makers

Expertise and experience in the electric and natural gas utility business



DTE SmartCurrents Program:

$83 million from the U.S. Department of Energy over the next two years; matched by DTE Energy and its technology partners.

660,000 new "smart" meters in 2010-2011

700 deployment and construction jobs for IT contractors and overhead linemen, and 350 permanent positions for suppliers




Smart Home would provide different pricing levels to incentivize off-peak electrical usage, web-based customer energy usage presentation and customer outage notification. In addition, certain "smart" appliances could communicate with DTE Energy to provide optimum energy savings.




As a result of the DOE funding, DTE Energy will have the opportunity to offer Smart Home technology with in-home displays and high tech thermostats to 5,000 customers, and make improvements to 11 substations and 55 circuits over the next two years.



Community Energy Storage (CES):

Detroit Edison’s Advanced Implementation of A123s Community Energy Storage Systems for Grid Support

$5M DOE/ARRA funding

This project will install 20 CES units, 25kW/2hr each, into a system that includes a 1 MW storage device integrated into a solar system.


Other Michigan Successes

A123 Systems

Leading supplier of high-power lithium ion batteries, which can provide grid storage for renewable energy production

MIT startup; acquired Ann Arbor based T/J Technologies in 2006

300,000 square foot assembly plant in Livonia

300,000 square foot coatings facility in Romulus



General Electric

$70M invested (10% stakeholder) in A123 Systems

$100M investment in new advanced manufacturing technology and software center, Visteon Village, Van Buren Twp.

“Michigan is a great location for a technology center because of its world-classengineering, technical talent and public officials who understand thatinvesting now will create tomorrow’s leading positions in informationtechnology, clean energy and transportation.” -Jeff Immelt, GE CEO



Whirlpool Corporation

Benton Harbor-based company since 1911

World's leading manufacturer and marketer of major home appliances

"By 2015, Whirlpool Corporation will make all the electronically controlled appliances it produces --everywhere in the world -- capable of receiving and responding to signals from smart grids"


Policy and the Smart Grid

Energy Independence and Security Act of 2007(EISA) TITLE XII– SEC. 1301. STATEMENT OF POLICY ON

MODERNIZATION OF THE ELECTRICITY GRID:

It is the policy of the United States to support themodernization of the Nation’s electricity transmission anddistribution system to maintain a reliable and secureelectricity infrastructure that can meet future demandgrowth and achieve the ultimate goals that together define aSmart Grid.



Elements of TITLE XII:I. Increased use of digital information

and controls technology.

II. Optimization of grid operations and

resources, with full cyber-security.

III. Deployment and integration of

distributed resources and

generation, including renewable

resources.

IV. Incorporation of demand response,

demand-side resources, and

energy efficiency resources.

V. Deployment of `smart’ technologies

for metering, communications

concerning grid operations and

status, and distribution automation.

VI. Integration of `smart’ appliances

and consumer devices.

VII. Deployment and integration of

advanced electricity storage and

peakshaving technologies,

including plug-in electric and hybrid

electric vehicles, and thermal-

storage air conditioning.

VIII. Provision to consumers of timely

information and control options.

IX. Development of standards for

communication and interoperability

of appliances and equipment

connected to the electric grid.

X. The lowering of unreasonable or

unnecessary barriers to adoption.



• On April 6, 2006, Michigan Governor Jennifer Granholmcalled for the development of a comprehensive plan for meeting the state's electric power needs.

• Executive Directive No. 2006-2 21st Century Energy Plan

Michigan has had essentially no energy efficiency programs since 1996.

Forecasted Michigan’s future energy needs

Made recommendations to legislators and regulators



MI Clean, Renewable, and Efficient Energy Act of 2008

Energy efficiency programs are supported by customer rates via a volumetric charge (per kWh) for residential customers and monthly "per meter" charges for commercial and industrial customers.

Establishes energy optimization savings standard, decoupling mechanisms, and economic incentives for implementing energy efficiency programs.

Renewable Portfolio Standard of 10% by 2015



21st Century Jobs Fund Authorized in 2005

Over 500 applications for first round of funding

Smart Grid technology not a targeted area for investment: 71% of funding has gone towards

Life Sciences

Some of the 8% devoted to infrastructure may be grid-related


Michigan’s Priorities 2010

State is focusing on life sciences, construction, and certain alternative energy technologies, and developing a workforce capable of working within those industries

Building from strength in skilled trades and manufacturing, Michigan’s priority is finding work for displaced workers

40% of Michigan’s existing “green” jobs are in transportation and alternative fuels



Despite nationwide attention to “green” jobs, Michigan is still losing jobs across the board – except within renewable energy production

Low concentration could mean opportunity for growth



The single best Competitive Employment Performance industry in Michigan included firms in the business of producing semiconductors and related devices

Michigan is outpacing US averages in grid-related industries:



Developing a Smart Grid workforce in Michigan

$4.39M Recovery Act grant for training, April 2010: Train Michigan workers and create career pathways in skilled trades

and other in-demand jobs in the electric power workforce sector.

Meet the needs of employers for highly skilled workers in the electric power workforce sector.

Improve preparedness of both new hires and incumbent workers within the electric power sector to migrate to the Smart Grid.


Growth Potential


Growth Potential


Recommendations to NEI

Capitalizing on Existing Assets and Resources:

DTE Energy, GE, and A123 Systems are heavily invested in battery technology in Michigan Because of parallel applications within automotive

industry, applying Smart Grid battery storage solutions to improve alternative energy reliability makes sense

Expand or replicate DTE/A123 pilot project

Provide funding to help create secondary market for future used battery cells



Workforce Development:

“NEI’s approach is to be a catalyst for change.” Training focus in Michigan needs to shift to the

understanding of computer and electronic devices and components that will connect the Smart Grid

Smart meters, monitoring devices and software, sensors and controls

Electronics training needs to begin in high schools, partnering with colleges and business where possible



Consumer education and awareness

Leverage federal funds to build a complete regional generation to end user Smart Grid demonstration project

Alleviate public perception that Smart Grid improvements will cost too much Compare to CFL bulbs as an example of life-cycle

costs, and how prices have come down over time


Date post:	14-Jan-2015
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