Should Grid Operations be Changed to Meet the Challenges of Climate Change, Demand Growth and Energy Security?

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The Honorable William Bryan, Deputy Assistant Secretary for Infrastructure Security and Energy Restoration in the Office of Electricity Delivery and Energy Reliability, U.S. Department of Energy (DOE), stated that deployment of a Smart Grid will supply higher security, reliability, and efficiency into the nation's electricity delivery system and will have a lower impact on the environment. Mr. Bryan announced the formation of the DOE Smart Grid Task Force.  The Task Force includes representatives from The DOE Offices of Electricity Delivery and Energy Reliability and Energy Efficiency and Renewable Energy, the Federal Energy Regulatory Commission, the National Institute of Standards and Technology, the U.S. Department of Homeland Security, the U.S. Department of Defense and the U.S. Environmental Protection Agency.  Mr. Bryan further announced that the Smart Grid Task Force would convene a workshop in June to determine what the Smart Grid should look like, what its values and metrics should include.

David Hawkins, Principal Engineer of Renewables Integration for the California Independent System Operator (ISO), focused his comments on the issues surrounding the interconnection of renewable energy resources. He contended that it is important to determine where the best areas for each type of renewable energy resource are and whether there is transmission in that area to support the new generation. If not, then the question of who pays for building of necessary new transmission needs to be determined. Other questions that need to be addressed include: How does each type of renewable energy resource affect reliability? Can green energy be forecasted and scheduled? Why is a new transmission financing plan needed? Mr. Hawkins added that there is also a need to examine clustering of renewable energy generation, considering the option of transmission owners financing the new transmission, and generators paying once they come on line.

Mr. Hawkins also discussed the November 2007 Integration of Renewables Report by the California ISO.  The report indicates that the problem with trying to forecast wind energy system integration is that it often peaks at times when demand is low. The California ISO report states that at present, only 20 percent of renewable energy can be reliably integrated. The report also concludes that renewable energy resources need a generation portfolio including storage, demand response, and complementary generation that is quick starting and fast ramping with a wider operating range and regulation capability.

Mladen Kezunovic, Eugene E. Webb Professor of Electrical and Computer Engineering at Texas A&M, stated that there is no such thing as a Smart Grid, rather there are smart people that have designed and engineered responsive technologies. The Smart Grid framework consists of policy economics, engineering technology, and environmental and societal impacts, which are all connected.  Dr. Kezunovic stated that there are multiple infrastructures that need to be coupled to deploy a Smart Grid, including the electricity grid, the transport system, and information technology. Additionally, the technologies involved need to serve multiple applications. The business cases involved would incorporate transmission companies and distribution companies. Dr. Kezunovic believes that the solution to deploying a national Smart Grid involves fundamental research, technology assessments, and systems integration. Dr. Kezunovic concluded that regulatory issues for multi-purpose technologies would need to be addressed since the markets will be diversified and applications will be integrated.

Michael Petrucelli, Vice President of Government Affairs for GridPoint, stated that it is crucial to align the interests of consumers, industry, and the environment. The environmental benefits of a Smart Grid are a large reduction in the building and use of peaking plants, which will result in a reduction in emissions, pollutants and fuel and will encourage a mass adoption of distributed energy. Some of the applications of a Smart Grid include solar and wind power online management, electricity storage, and widespread usage of plug-in hybrid electric vehicles. Mr. Petrucelli concluded that load measurement controls used in a Smart Grid must incorporate utility benefits, customer benefits, and societal benefits.

Joe Miller, Senior Vice President of Horizon Energy Group, commented that Smart Grid would do the following:

• Motivate and include the consumer
• Accommodate all generation and storage options
• Enable markets
• Provide power quality for 21st century needs
• Optimize assets and operate efficiently
• Anticipate and respond to system disturbances (self-healing aspect of Smart Grid)
• Be resistant to attack (cyber and physical), resilient, and less vulnerable

Mr. Miller believes that the reasons for delay in implementing Smart Grid technologies are:

• Regulation – There is a need for clear policies and incentives.
• Stakeholders – There is a need for a clear vision, an alignment between the stakeholders with a value proposition for all, and the end goal has to be kept in mind during the development.
• Legislation – What is the federal role? The funding of research, development and demonstration is clearly one of the ways government can contribute.
• Communication and Culture – Consumer education and research leadership by regulators is critical. Also, a common vision must be framed, as well as metrics to monitor progress.
• Technical – Interconnection standards have to be developed, there is a need to look at integration vs. widgets, develop skilled human resources, and acquire funding for research and development.

Mr. Miller concluded that the cost to modernize the nation's electric delivery system is $165 billion over 20 years, but the benefit to cost ratio is either 4:1 or 5:1.

Mr. Bryan asked panelists how they could encourage businesses to adopt Smart Grid technologies. Mr. Hawkins responded that if businesses do not add Smart Grid capabilities they will not have the information necessary to handle issues at the customer level. Mr. Petrucelli stated that economic self-interest, with a balance of regulatory and legislative measures, will help the market make the business case. Dr. Kezunovic noted that business models are based on technology that is not the most enabling and, therefore, there needs to be an exploration of different business models.