Transcript Overview of Utility Regulatory Policy & Smart, Secure Grid

Efficiently Powering Smart Cities:
A Case for Price Transparency
Paul Centolella, Vice President
National Town Meeting on Demand Response and Smart Grid
July 11, 2013
BOSTON
CHICAGO
DALLAS
DENVER
LOSLos
ANGELES
MENLO
PARKPark
MONTREAL
YORK
FRANCISCO
Beijing
Boston
Chicago
Dallas
Denver
Angeles
Menlo
MontrealNEWNew
YorkSANSan
FranciscoWASHINGTON
Washington
100% -
Challenge 1: Improve Asset Utilization
• Average Airline Seat Utilization = 85%
75% -
• Average Capacity Utilization in Capital
Intensive Industries >75%
50% -
• Average Generation Capacity Factor
<50%
• Average Utilization of Transmission and
Distribution Assets: Often Lower
IEEE PRESENTATION
National
EnergyTech
Town Meeting
2013,
Co-sponsored
Demand
by INCOSE
and -Smart
May 22,
Grid
2013
July
11, 2013
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Page 1
Challenge 2: Integrate Variable Renewable Resources
• Solar & wind variability can require large shifts in generator
output
•
•
Flexibility – Not just reductions in peak demand matter
With clusters of renewable generation there can be large local impacts
CA 14,000 MW Shifts in Net Load by 2020
BPA Wind: >3,000 MW Shift in < 1 Hr.
IEEE PRESENTATION
National
EnergyTech
Town Meeting
2013,
Co-sponsored
Demand
by INCOSE
and -Smart
May 22,
Grid
2013
July
11, 2013
INSERT
OR on
CLIENT
NAMEResponse
HERE
■ ATTORNEY
WORK
PRODUCT
– PRIVILEGED AND CONFIDENTIAL
■ MONTH DD, YYYY
Page 2
Challenge 3: Enhancing Reliability & Resilience
• Regulators rarely consider the value of uninterrupted service &
billions in outage costs are externalized to consumers
• Intelligent devices could produce beneficial feedback response
precisely when and where needed following an event
• Networked distribution could use local price transparency to:
•
•
•
Enable local clusters of load and generation to position
usage and optimize generation based on grid conditions
Account for congestion within distribution networks
Support the evolution of distribution architecture toward
becoming a set of reconfigurable, interconnecting microgrids
IEEE PRESENTATION
National
EnergyTech
Town Meeting
2013,
Co-sponsored
Demand
by INCOSE
and -Smart
May 22,
Grid
2013
July
11, 2013
INSERT
OR on
CLIENT
NAMEResponse
HERE
■ ATTORNEY
WORK
PRODUCT
– PRIVILEGED AND CONFIDENTIAL
■ MONTH DD, YYYY
Page 3
Make Prices Transparent to the Devices that Use Electricity
• Energy’s “Holy Grail” – Storage Capabilities of End Use Devices
•
•
Most uses have thermal inertia (heating, cooling, water heating, & refrigeration)
and/or flexibility (pumping loads, industrial batch processes, pool pumps,
dishwashers, clothes driers, & charging of vehicles & battery powered devices)
Many of these devices are already intelligent and could shift power usage without
materially impacting the services delivered to consumers
• Broadcasting in standard formats cuts the cost of engaging devices
•
•
Unit cost to enable a device to receive, decrypt, authenticate, & identify a specific
signal for its unique grid location may be less than $1 per device
Underused FM data channels can reach virtually any location in under 2 seconds
• Relative Prices = Useful Information: A few hours of indicative lookahead interval prices could efficiently position demand for the grid
•
Just as KAYAK can find low air fares or Pandora can match musical preferences,
millions of electricity consuming devices could automatically find low cost power
consistent with customer preferences for heat, cooling, hot water, & other services
IEEE PRESENTATION
National
EnergyTech
Town Meeting
2013,
Co-sponsored
Demand
by INCOSE
and -Smart
May 22,
Grid
2013
July
11, 2013
INSERT
OR on
CLIENT
NAMEResponse
HERE
■ ATTORNEY
WORK
PRODUCT
– PRIVILEGED AND CONFIDENTIAL
■ MONTH DD, YYYY
Page 4
Transparency Enables Automation & Is a Foundation for Rate Reform
• Smart pricing stalled by the limited
availability of customers to respond
•
OR
Can be changed by cheap, standard automation
• Can build with existing tools
ISOs / RTOs calculate day-ahead prices and most
can or are working to forecast look-ahead price
•
Exiting FERC Authority for Price Transparency:
•
•
Smart Rates
•
•
?
Smart Homes
16 USC 824t directs FERC to “facilitate price transparency” and “provide
for the dissemination, on a timely basis of information about [wholesale]
prices … to … the public.” If needed, FERC can “establish an electronic
information system” to do so.
Available data formats permit utilities to add information on local distribution
Tools that empower customers are a key first step in enabling
efficient retail pricing
IEEE PRESENTATION
National
EnergyTech
Town Meeting
2013,
Co-sponsored
Demand
by INCOSE
and -Smart
May 22,
Grid
2013
July
11, 2013
INSERT
OR on
CLIENT
NAMEResponse
HERE
■ ATTORNEY
WORK
PRODUCT
– PRIVILEGED AND CONFIDENTIAL
■ MONTH DD, YYYY
Page 5
Paul Centolella
Vice President
111 Huntington Ave. 10th Floor
Boston, MA 02199
(617) 425-8182
[email protected]
BOSTON
CHICAGO
DALLAS
DENVER
LOSLos
ANGELES
MENLO
PARKPark
MONTREAL
YORK
FRANCISCO
Beijing
Boston
Chicago
Dallas
Denver
Angeles
Menlo
MontrealNEWNew
YorkSANSan
FranciscoWASHINGTON
Washington