Smart Grid – New Industry Challenge

August 7, 2009
Eugene Litvinov
Senior Director, ISO New England
IEEE Region 1 Meeting, Springfield, MA

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Smart Grid Defined

Smart Grid is the tight combination of

different infrastructures:
– Power System
– Communications
– Information Technology
implementing a new paradigm of power
system design and control

© 2008 ISO New England Inc.

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Smart Grid Objectives
• For Reliability
– More capacity from transmission and distribution resources
– Intelligent devices that automate monitoring and respond to
emergency situations
– Efficient production, movement and consumption of electricity
– Tools and training to support control room
• For the Environment
– Reduction in Greenhouse Gases
– Greater penetration of renewables, energy storage and demand
resources
• For Consumer Control
– Transparency into electricity usage and prices
– Opportunities for consumers to supply energy, capacity and
ancillary services
© 2008 ISO New England Inc.

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Smart Grid – There are many visions
• EISA 2007 and DOE
– Describe several important characteristics
• FERC
– Identified 4 key areas and 2 cross cutting areas
• EPRI
– Created 23 MB of Use Case Documents
• Vendors and Industry Analysts
– too many variations to mention
• GridWise
– Describes an abstract interoperability framework
• Standards Organizations and User Consortia
– Describe “slices” from the Smart Grid pie
• NIST
– Establishing a Roadmap for standards development

© 2008 ISO New England Inc.

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Some Consistent Messages
• Support all types of generation
• Consumer participation
• Transparency of Cost and Quality of Electricity
• Competitive Marketplace
• Self-correcting: Automatic response to disturbances and
threatening situations
• Security (physical and cyber) designed in upfront
• Observable and Manageable
• Flexible

© 2008 ISO New England Inc.

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Tight Integration with Other Infrastructures

ISO/RTO

@ 2008 Electric Power Research Institute.

© 2009
2008 ISO New England Inc.
Smart Grid Overview
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 Legend:

Standards based
Interoperability
Framework
Energy
Standards are also Management
System
CHP
GeoThermal
Units

needed among Demand Response

Controlling Entities Energy, Capacity,

Ancillary Services

Solar Energy
Industrial Management
System
PHEV
Solar
Distributed Solar
Generators

Home Area Network

Residential Demand Response
Energy, Capacity,
Commercial Ancillary Services

Smart
System Operators Markets
Appliances
DistCo’s

DR
Aggregators
Communications
Networks Transmission Smart Meters, Intelligent
and Control and Monitoring
Devices
Distribution
Networks

Traditional
MicroGrids, Energy Generators
Storage Systems and
Distributed Generation
Solar Farms Wind Farms

© 2008 ISO New England Inc.

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Legislative Barriers

© 2009
2008 ISO New England Inc.
Smart Grid Overview
8
The lines between Transmission and
Distribution are blurring
• Increasing number of generating resources located on
the distribution network (e.g. wind turbines, solar arrays,
microgrids, CHP)
• Demand resources playing larger role in traditional
“transmission level functions” (e.g. energy, reserves and
emergency response)
• Regional Power System Control entities need more
granular locational and capacity information for both
demand and supply resources located on the distribution
network
• Operable Capacity analysis requires situational
awareness of supply resources located within a region,
regardless of which network they are connected to
© 2008 ISO New England Inc.

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More Choices and Uncertainty - Less time
to react
• Region wide System Operations and Planning become much more
complicated under the Smart Grid
– Choice between using DR Negawatts, traditional generators, distributed
generators, variable renewables, imports, Electric Energy Storage to
meet the next Megawatt of Load
– Load forecasting is further complicated with additional uncertainty (e.g.
impact of EV’s, impact of consumer level generation capabilities such as
solar panels)
– Automatic sense/respond devices to consider
– Number, size and location of independently managed Microgrids
– Other factors:
• Renewable Portfolio Standards (RPS)
• Regional Greenhouse Gas Initiatives (RGGI)
• NIMBY
• Requires more frequent interaction among system control entities
and new optimization approaches
© 2008 ISO New England Inc.

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New Grid Control and Planning
• Centralized vs. de-centralized
– Micro-grids vs. large grids
– Market coordination vs. super-large markets
– Energy Supply Resources connected “anywhere”
– Distributed State Estimation
– SPS/RAS
– Frequent data exchange between system control entities
• Situational awareness
• Visualization and Decision Support
• Reliability standards: reliability vs cost-based approach to
planning
• Deterministic vs. Probabilistic approach
• Transition from Preventive to Corrective system design
philosophy
© 2008 ISO New England Inc.

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New Technologies
• Synchronized Phasor Measurement Units (PMU)
• Intelligent Electronic Devices (IED)
• AMI
• Renewable Resources
• Storage
• New regulation devices: flywheels, PHEV, etc.
• Microgrids and Smart Grid
• Wide Area Monitoring Systems (WAMS)
• Wide Area Protection Systems (WAPS)
• Multi-Agent technology
• Distributed computer systems

© 2008 ISO New England Inc.

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 New Technologies Affecting Control

• Microgrids
– Microgrid is a comparatively
small network with distributed
generation and storage
capable of both supplying its
own loads and buying
electricity from the grid
– It is an alternative to
transmission and requires new
approaches in control and
market integration

Source:

© 2008 ISO New England Inc.

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Smart Home

© Copyright 2008, Southern California Edison

© 2009
2008 ISO New England Inc.
Smart Grid Overview
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Example: Smart Appliances
Consumers appliance receives peak price notification from
Utility/ISO and displays on their appliance console. Appliance
automatically reacts by reducing energy consumption.

Price Signal

© 2009
2008 ISO New England Inc.
Smart Grid Overview
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Example: PHEV

Gas Electric
Greenhouse Gas
emissions
6.3 tons 1.1 tons
Annual Fuel Cost
$1,538 $270
Equivalent Cost
per gallon
$2.87 .75

Present unprecedented challenges

to the Distribution System
Infrastructure

© 2009
2008 ISO New England Inc.
Smart Grid Overview
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Distributed Resources

© 2009 ISO New England Inc.

©Smart Grid
2008 ISO NewOverview
England Inc.

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A Paradigm Shift in Power System Control is
REQUIRED for the Smart Grid to succeed
• Power System Control functions will be significantly impacted by the
Smart Grid
• More granular control of supply and demand is needed
• Supply Management (wherever it is located)
• Demand Management
• Network Management (both transmission and distribution levels)
• Markets Management – wholesale and retail integration
• Integrated Power System Control across the supply chain will require
more frequent interaction among controlling entities
• Need for coordination among controlling entities under time critical
situations will require greater automation between entities
• Thus far there has been insufficient attention to standards and
protocols for Control functions among controlling entities

© 2008 ISO New England Inc.

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EPRI Conceptual Diagram

©EPRI 2009

© 2009
2008 ISO New England Inc.
Smart Grid Overview
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Generation

©EPRI 2009

© 2008 ISO New England Inc.

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Customer

©EPRI 2009

© 2008 ISO New England Inc.

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Service Provider

©EPRI 2009

© 2008 ISO New England Inc.

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High Level Smart Grid Architecture
Overview

Markets

Supply System Demand

Resources Control Entities

Delivery
Network
© 2008 ISO New England Inc.

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 Example:NIST I2G Interactions
Bid into Capacity Market

Bulk
Generation
Station

ISO Direct Generator Control

Indirect Generator Control

OnSite
CoGeneration
Station

Utility

ControlCenter2ControlCenter
Distributed
Generation
Station

Dynamic Wholesale Pricing

Aggregator Dynamic Retail Pricing Industrial Site
Industrial Reliability Notification

Energy Management
System
Industrial Metering Data

Current Standards workgroups “view” control as Electrical Metering

a single cloud with multiple entities
Source: NIST I2G Draft Roadmap V 0.5 dated 4/9/2009

© 2008 ISO New England Inc.

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Need for More Granular Control

• More Supply Resources locating on Distribution Network

• Pinpoint Locational Control of Demand Response
Resources
• Mobility of PHEV’s enable them to shift load and supply
around system dynamically
• PHEV’s will receive energy payments for whichever
dispatch zone they supply energy within (locational
pricing)

© 2008 ISO New England Inc.

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Shift to more granular control is underway in NE

© 2008 ISO New England Inc.

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ISO-NE and FERC SG Policy Alignment

FERC Priority ISO-NE Projects Cyber Inter-System

Areas Security Communications
Wide-area situational •Wide Area Monitoring Systems with X X
awareness Phasor Measurement
•Situational Awareness/Visualization X
•Real Time Stability Analysis and Control X
Demand Response •Demand Response (DR) Reserves Pilot X X
•Demand Response Programs X X
•Integration of DR Resources in ISO/RTO X X
Operations for 2010
Electric Storage •Alternative Technology Regulation Pilot X X
•Advanced Grid Simulator

Electric •Alternative Technology Regulation Pilot X X

Transportation •Advanced Grid Simulator

© 2008 ISO New England Inc.

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Manage Network

© 2008 ISO New England Inc.

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Wide Area Monitoring

• Requires sub-second insight by Operators:

– NASPI
– Phasor Data Concentrator at ISO-NE
– More PMU installations
• Requires more granular spatial data on Supply and
Demand
– This will require more frequent interaction between Controlling
Parties than exists today

© 2008 ISO New England Inc.

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Wide Area Monitoring cont
Load Concentrations – Generation Resources

© 2008 ISO New England Inc.

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Wide Area Monitoring cont

© 2008 ISO New England Inc.

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Inter-Control Area Monitoring

© 2008 ISO New England Inc.

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View Reserves

© 2008 ISO New England Inc.

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When a Resource Moves or Trips…

Quebec HVDC Tie –

No Initial Response
NB Ties - Limited Response

Over 95%
Initial CT Generator Trips
Response
from/to NY and
and PJM
the ENTIRE Grid Responds!
© 2008 ISO New England Inc.

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Situational Awareness/Visualization

• Requires enhanced decision support capabilities and

timely, accurate insight and advice to operators
– Intelligent Alarm Processing
• Employing Complex Event Processing tools
• Provide System Operator with Visual display of conditions
• Enhance decision support ability of operators
– EMS/DSM integration
• Requires more granular spatial data on Supply and
Demand
– Requires greater interaction between System Control Entities
than exists today

© 2008 ISO New England Inc.

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Situational Awareness/Visualization cont
New level of on-line situational awareness by incorporating
high rate PMU and SCADA data into calculation of stability
margin and visualization

PMU SCADA State

State Estimator
Estimator
Sampling rate: 20…60 per sec 4…10 sec 3 min

Physical
Physical and
and Operational
Operational
Margins
Margins (POM)
(POM) software
software

Outcome:
•On-line
•On-line Region
Region Of
Of Stability
Stability Existence
Existence (ROSE)
(ROSE)
•Operating
•Operating point
point trajectory
trajectory within
within ROSE
ROSE

© 2008 ISO New England Inc.

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Situational Awareness/Visualization cont

PMU and SCADA data will be used for on-line calculation and
visualization of Operating Point proximity to Stability
boundary
Power flow
or Angle Update Stability Boundary
with SCADA data rate

Update Trajectory of Operating

Point with PMU data rate

Power flow or
Angle

© 2008 ISO New England Inc.

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Situational Awareness cont

Visual Samples
ISO/RTO Visualization Project 2006

© 2008 ISO New England Inc.

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New Technology

Visualization:

© 2009
2008 ISO New England Inc.
Smart Grid Overview
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New Technology

• Virtual Utilities and Virtual Plants

@ Siemens AG 2007.

© 2009
2008 ISO New England Inc.
Smart Grid Overview
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RT Stability Analysis and Control

• Includes transient, voltage and thermal analysis

• Objective: Make the existing grid infrastructure more
efficient
• Perform dynamic line ratings
• Operate system closer to real limits; increases overall
capacity without any capital investment

© 2008 ISO New England Inc.

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Manage Supply

© 2008 ISO New England Inc.

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Tiverton MicroGrid
• 160-acre historic town center – New Hope
Village; Carbon Neutral Community
• 400 Townhouses – 75 Affordable Housing
Units – 80 single family houses
• Historic electric trolley service connecting
community
• 12 land based commercial wind turbines will
be of the current technology having a rated
nameplate capacity between 2.5 & 5 MW
• Seventy-Eight Thousand (78K) Annual MWh
Wind Turbine Energy Generation
• Twenty-Four Thousand (24K) Annual MWh
Solar Energy Generation
• Community-Wide Geothermal HVAC
Support Infrastructure
• Green Biodiesel Processing Plant will be
operated entirely under roof of a 175’ X 275’
building
• Will prevent 2,859,795 tons of CO2 from
entering the atmosphere over the next 25
Years
© 2008 ISO New England Inc.

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Areas Requiring Immediate Attention
• Power System Control
– Among Power System Control entities
• Network Model Updates
• Control Coordination (e.g. voltage control coordination)
• Status and Monitoring (Situational Awareness)
• Planning Functions/Activities
• Manage Demand
– PHEV charging control
– Dynamic Price Communication
– Load Forecasting
• Manage Supply
– MicroGrid and DER management/monitoring/control
– Electronic Dispatch Standards
– Measurement/Verification Standards for DR
– DR Control standards
– Supply Forecasting
• Manage Network
– EMS/DMS Integration

© 2008 ISO New England Inc.

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Conclusions
• New Challenges and Technology require new look at the
future of System Operations, Planning and Markets
• Many changes must take place without negative impact to
customers and overall grid performance
• Both Operations and Planning will have to change to
accommodate new Grid and Decentralized Control among
multiple control entities
• Interoperability at all levels – from regulatory to computer and
communication systems is a key to success of new grid
• Public pressure spawned by the Stimulus package is requiring
ISO’s to implement what’s available now – can’t wait for
standards to emerge

© 2008 ISO New England Inc.

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