rap schwartz smartgrid isitsmart parttwo 2011 03
TRANSCRIPT
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Is It SmartIf Its Not Clean?
Smart Grid, Consumer Energy Efciency,
and Distributed Generation
March 2011
2Part
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Smart Grid, Consumer Energy Efciency, and Distributed Generation
What does a smart grid have to do with a clean grid? Part one o
this series described strategies or improving efciency o utilitydistribution systems, with and without a smart grid. It explained
how smart grid capabilities real-time sensing, communication and
control might allow utilities to optimize voltage and reactive power, minimizing energy
losses on the distribution system and reducing energy use by some types o consumer
equipment.2
In the second part o this series, we explain smart grid opportunities to advance end-
use energy efciency and clean distributed generation. Potential benefts or energy
efciency include:
1. Providing detailed inormation on electricity use and costs to help consumers
understand how to save energy and money
2. Enabling ongoing building diagnostics to help fnd and alert building owners to
problems in heating and cooling systems
3. Improving evaluation o energy efciency programs
For distributed generation, smart grids can mitigate the impacts that high penetration
levels can have on the utility system helping cities and states to reach renewable energy
goals at a aster pace. Smart grids also can unlock additional benefts o distributedgeneration or owners and utilities.
* Lisa Schwartz is a senior associate with the Regulatory Assistance Project. Paul Sheaffer, vice president at Resource Dynamics Corporation, islead author of the distributed generation section of this paper. U.S. Environmental Protection Agency provided funding.
Is It Smart if Its Not Clean?Smart Grid, Consumer Energy Efciency, and Distributed Generation
Part two
Principal authors Lisa Schwartz and Paul Sheafer1*
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Is It Smart if Its Not Clean?
Today, most consumers simply receive a monthly
electric bill that shows their energy use, prices
and costs or the period sometimes with
comparisons to historic use. Customers cant
easily correlate specifc actions they take in their homes and
businesses with their energy consumption or energy bills.
Using weather, demographic and other data, some
The Smart Grid and Energy Efciency
Inormation-Driven, Behavior-Based Savings
Figure 1. Types o inormation eedback, rom Electric Research Power Institute3, characterized
by when and how often the customer receives it. Timing and specicity o eedback are infuentialvariables in studies to date, lending support to advanced metering inrastructure with two-way
communication smart grid technologies.
Figure 2. Comparing a customers consumption to their neighbors can be a powerul motivator or energy-
saving actions. With hourly meter data, customers can receive a more accurate picture o energy use or air-
conditioning and other end uses. Such interval data also can provide accurate inormation on a customers
energy use during peak demand hours, when electricity costs are highest. Graphic courtesy o OPOWER.
1Standard
Billing
Monthly,bi-monthly orquarterly bill
2Enhanced
Billing
Household-specifc ino,
advice, and/orcomparisons;
monthly orquarterly
3EstimatedFeedback
Web-basedenergy audits
with inoprovided on
ongoing basis
4Daily/Weekly
Feedback
Household-specifc ino,
advice, and/orcomparisons;
daily or weekly
5Real-TimeFeedback
Real-timepremise-level
ino
6Appliance-level
Real-TimeFeedback
Real-timeino down to
appliance-leveldetail
Indirect Feedback(Provided ater consumption occurs)
Direct Feedback(Provided real-time)
utilities provide enhanced billing through third-party
providers that includes:
Anestimatedbreakdownofconsumptionbyend-use
Acomparisonoftotalusagetoneighbors
Customizedenergy-savingtipswithlinkstorelevant
energy efciency programs
Your estimated AC usage is based on last summers energy use and temperature. For more details, visit sdge/myhome/reports
Spotlight on Air Conditioning
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Smart Grid, Consumer Energy Efciency, and Distributed Generation
Like traditional electric bills, these enhanced energy
reports typically arrive by mail, monthly or less requently.
Advancedmeteringinfrastructuresolid-statedigital
meters with two-way communications between the
meter and utility enables more requent eedback to
consumers. It also can be used to provide consumers with
their consumption by time o use, as well as improved
analysis o consumption by end use and targeted energy-
saving recommendations or each customer. Programmable
communicating thermostats (PCTs) can provide additional
data on heating and cooling loads, urther enhancing these
energy reports.
Instead o waiting or a monthly bill or energy report,
Web-based portals can provide customers with current
inormation on energy use by hour, or example
typically with a days lag. Or meter data can be provided in
real time or near real time at the customers premise usinga PCT with inormation display, pre-payment meter or a
stand-alone display.4 Some systems can provide alerts to
customers when consumption or costs exceed the values
customers speciy, or when a customer is projected to cross
into a higher-cost tier o usage under inclining block rates.5
While energy-use eedback is relatively new or
households, large commercial and industrial customers
have or many years been able to choose utility or third-
party services that provide current and historical energy
and demand data, along with reports and analysis, to help
detect malunctions in energy-related systems, optimizetheir operation, guide investments in equipment and
systems, and reduce energy bills.
Experience with residential customers to date reveals
that eedback as soon ater the consumption behavior as
possible and specicity (such as breakdown by appliance)
are infuential variables in helping consumers change
their energy consumption behavior.6 Those ndings tend
to avor advanced metering inrastructure with two-way
communication smart grid technologies.
Studies also have shown a preerence by residential
customers or pushed inormation or example, theutility sends energy usage reports by mail or email, instead
o requiring the customer to log into a Web site to retrieve
the inormation (but having a Web option or more detailed
analysis).7
Savings Estimates
Giving eedback to customers on their energy use can
motivate them to change their consumption behavior,
infuence purchase decisions or appliances and equipment
and help target investments in the most cost-eective
measures.ArecentliteraturereviewbytheAmericanCouncil
or an Energy-Ecient Economy on the value o various
types o energy-use eedback concluded that it could help
households reduce electricity consumption by 4 percent to
12 percent.8A2009reportfortheElectricPowerResearch
Institute ound overall conservation eects o a wide range
o energy-use eedback methods ranging rom negative to
18 percent, with some indication that savings persist or at
least one year.9
ArecentstudyfortheSacramentoMunicipalUtility
District on home energy reports mailed monthly (tohigh-consumption households) or quarterly (to low-
consumption households) ound that energy savings
persisted, and even increased, in the second year o the
programfrom2.32percentto2.89percentforhigh-
consumptionhouseholds,andfrom1.25percentto1.70
percent or low-usage customers, in the rst and second
years, respectively.10 Using interval consumption data
rom advanced meters, these reports also could be used
to identiy actions consumers can take to reduce peak
demand.
Anoften-citedreportontheimpactofin-homedisplaysestimates savings in the range o 5 percent to 15 percent.11
Amorerecentreviewofin-homedisplaysfoundsavingsof
7 percent on average or customers who pay or electricity
use ater the act (typical monthly billing) and twice that
or customers on pre-payment plans.12 However, the
incremental value o real-time eedback through in-premise
devices such as in-home displays is not a settled issue,
including persistence o savings over time.13
The Pacic Northwest National Laboratory (PNNL)
estimates the technical potential or electricity savings or
homes and small and medium commercial buildings romimproved eedback enabled by the smart grid at 6 percent.
PNNL indicates a wide range o uncertainty or potential
savingsinthisarea1percentto10percent.Thatsdue
to a number o limitations o studies to date: sel-selection
bias, small and homogeneous samples, lack o research
into persistence o savings over time, and shortcomings
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Is It Smart if Its Not Clean?
in evaluation to determine how savings were actually
achieved.14 For perspective, its useul to compare overall
savings ound in the randomized, large-scale eedback tests
described above (approaching 3 percent).
Unless verifed savings rom behavior-based programs
are qualiying measures or meeting state energy efciency
goals, and included in any utility shareholder incentive
mechanisms, these programs will not make signifcant
inroadswithorwithoutsmartgrid.Alsoneededisan
agreed-upon ramework or measuring energy savings
rom behavior-based programs. Energy savings rom home
energyreportsusingstandardizedEM&Vprocedures
already count toward energy efciency goals in Caliornia,
Massachusetts,MinnesotaandTexas,andseveralother
states have taken the preliminary step o approving flings
or such programs.15 Incorporating smart meter data into
these programs will help meet state goals to reduce peakdemand.
Commissioning and Continuous Building Diagnostics
Commissioning is a systematic process o ensuring
that building equipment and systems are designed,
installed and initially unctioning as the owner intended,
and building sta are prepared to operate and maintain
them.16 Existing building commissioning (also called retro-
commissioning or recommissioning) is used to improve
operations and maintenance o buildings that were not
commissioned during design and construction.The commissioning process covers heating, ventilating,
andairconditioning(HVAC)systemsandcontrols,lighting
and lie saety systems. It ensures that equipment and
systems are sized, specifed and tested or a particular
pattern o operation based on expected occupancy, weather
and other actors that determine how they are used.
Using a large database o commissioning results in
nonresidential buildings in the U.S. o various sizes and
types, Lawrence Berkeley National Laboratory17 ound
median energy savings o 16 percent or existing buildings
and 13 percent or new construction.18
The costs ocommissioning paid back in energy savings in 1.1 years
and 4.2 years, respectively, with median beneft/cost ratios
o 4.5 or existing buildings and 1.1 or new construction.
Accordingtothestudy,energysavingspersistforatleast
three to fve years.19Manymeasuresundertakenduring
commissioning,suchasproperlysizingHVACequipment,
are very durable.
Because energy savings exceed the costs o
commissioning, the analysis estimates negative costs or
associated reductions in greenhouse gas emissions, with
medianvaluesof-$110pertonne20 or existing buildings
and -$25 per tonne or new construction. Benefts beyond
energy savings include occupant comort and improved
indoor air quality.
The report concludes that commissioning may be
the most cost-eective strategy or reducing energy use
andgreenhousegasemissionsinbuildings.Applying
median energy savings rom the study to the stock o U.S.
nonresidential buildings, the researchers estimated that
commissioningcouldsave$30billioninenergycosts
annuallyby2030,withacorrespondingreductionofabout
340megatons21 o carbon dioxide each year. In addition,
commissioning ensures that building owners get what
they pay or when constructing or retroftting buildings,detects and corrects problems early and in a less costly
manner, and helps veriy that energy efciency programs
are meeting their savings targets.
Despite its benefts, commissioning is not widely
practiced. The smart grid has the potential to considerably
reduce the cost and time involved or commissioning,
urther tipping the scales in its avor and accelerating its
adoption, and to acilitate monitoring-based, ongoing
commissioning.
Smart grids interval meter data and two-way
communication, together with building energymanagement systems and automated diagnostic tools,
could constantly monitor equipment and perormance
or some parameters and update settings to optimize
perormance and efciency. That would avoid the time-
consuming process o manual inspection and testing o
end-use devices. In addition, acility energy managers could
receive immediate alerts when equipment is not perorming
to efciency specifcations. Such proactive maintenance
would improve building operation, reducing energy use
and costs and greenhouse gas emissions. Utilities could
use automated diagnostics to screen buildings or energyefciency programs.
TheElectricPowerResearchInstituteestimatesan
incremental market penetration or ongoing commissioning
duetosmartgridrangingfrom5percentto20percent
o large commercial buildings, translating into an annual
energysavingspotentialof0.14percentto0.18percentin
retailsalesofelectricityin2030.22
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Smart Grid, Consumer Energy Efciency, and Distributed Generation
Only a raction o buildings are using automated
diagnostic tools today because o complexity, cost and other
issues. The smart grid is not a requirement or automated
diagnostics, but such investments can potentially make
the practice available to all consumers, particularly i a
common data platorm is developed and historical interval
data are stored or uture use.23
Using whole-building, interval meter data, some types o
energy waste can be detected by identiying base load and
peak operation patterns, o-hours usage, relative cooling/
heating efciency, and periods when outside air is not used
or ree cooling. With thermostat inormation on the status
o heating, cooling and water heating, end-use loads can be
disaggregated rom whole building energy use to provide
betterqualityinformationfordiagnostics.Residentialand
small commercial applications are most amenable to this
approach.
24
While commissioning today is ocused on large
commercial buildings, PNNL estimates that using smart
grid technologies or ongoing diagnostics could reduce
electricityusedforhomeheatingandcoolingby10percent
to20percent,andreduceconsumptionforHVACand
lighting or small and medium commercial buildings by
10percentto30percent.25 Homeowners, or example,
could receive alerts immediately when heating equipment
is operating abnormally. Incorporated into ratepayer-
unded energy efciency programs, homeowners could
receive recommendations or correcting the problem,
including potential costs, savings, and rebates or relevant
energy efciency measures and high-efciency replacement
equipment,ifneeded.Alertsalsocouldbeprovidedfor
routine maintenance schedules.
Interval data rom advanced metering inrastructure
also could be used to improve data or benchmarking
comparing a buildings current energy perormance with its
energy baseline or with the energy perormance o similar
buildings, based on use. Key metrics rom interval meter
data could be benchmarked against a population o similar
buildings. For example, the ratio o average peak load to
base load may indicate problems with o-peak energy use.
26
With commissioning and automated diagnostics made
easier and cheaper, eorts can ocus on addressing the
remaining barriers to their implementation, including
increasing public awareness, training or the building
industry, and incorporating these measures in energy
efciency potential studies and program requirements.
Figure 3.27The basic approach to energy efciency impact evaluation includes defning baseline
energy use and projecting energy use patterns into the reporting period, with adjustments as
needed or weather, occupancy, production level and other relevant actors. Smart grids massdeployment o advanced meters plus two-way communication between the meter and the
customer will allow or impact evaluations to cost eectively incorporate ar more data and thus
improve the quality and accuracy o savings determinations, as well as reduce data collection
costs and the time required to present results and provide eedback or project improvement.
1,000,000
750,000
500,000
250,000
Implementation
Baseline Period
Baseline
Actual
Reporting Period
Jan. 01 July 01 Jan. 02 July 02 Jan. 03 July 03 Jan. 04
EnergyUse(kWh)
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Enhanced Evaluation, Measurement and
Verifcation (EM&V)
Impact evaluations quantiy the energy and peak
demand savings o energy efciency programs. Such
evaluations also are used to help assess the cost-
eectiveness o energy savings programs, set energy savingsgoals, identiy receptive market segments, assist in cost
recovery determinations, identiy potential energy-saving
measures in integrated resource planning, and or program
planning, budgeting and design, among other uses.28
Measurementandvericationdeterminestheenergyand
demand savings rom individual projects and measures.
ThetwokeyobjectivesofEM&Vare:29
1. To document and measure the eects o a program
and determine whether it met its goals with respect to
being a reliable energy resource.
2. To help understand why those eects occurred andidentiy ways to improve current programs and select
uture programs.30
EM&Visincreasinglyimportantasutilities,third-party
service providers and organized power markets reach or
advanced levels o efciency to meet energy and capacity
needs.Manystatesnowhaverequirementstoacquireall
cost-eective energy efciency, or they have established
energy efciency resource standards that require utilities
to meet specifed energy savings that ramp up over time.
In addition, a number o states provide perormance-based
incentives that encourage utilities to achieve the highestlevels o savings. Conversely, utilities and other energy
efciency providers may be subject to penalties or ailure
to meet minimum standards.
Assystemoperatorsincreasetheirrelianceonenergy
efciency to meet peak demand, they need better
inormation on the size and timing o savings. Forward
capacitymarketsintheISONewEnglandandPJMregions
are increasingly relying on energy efciency to meet
reliability requirements. Capacity payments or energy
efciency measures are made only or verifed savings.
Inaddition,airqualityregulatorsneedeffectiveEM&Vprotocols in order to include energy efciency programs
in implementation plans as a mechanism or meeting air
quality standards.
Generally speaking, the most rigorous and reliable
EM&Vapproachesrequireasignicantamountofend-use
energy data collected both beore and ater implementation
o efciency measures. The collection o such data may
require monitoring devices on isolated circuits or each
end-use application studied. Because o the expense, such
monitoring tends to be limited in time and a sample o the
population o interest.
SmartgridsbenetsforEM&Vstemfromintervaldata
rom mass deployment o advanced meters plus two-way
communication between the meter and the customer data
collection and transer capability or massive numbers o
customers that can be turned on when needed. When such
energy data are collected, or minute-by-minute energy
consumption or a whole acility or or specifc energy
loads, the ability to analyze energy use and correlate it
with external actors (such as weather and use patterns)
increases and becomes aordable.
Advancedmeteringinfrastructure,ifcombinedwith
communicating thermostats, energy management systems,
demographic data, appliance and equipment surveys,weather data and hourly (or fner-grained) avoided costs,
offersthefollowingopportunitiestoimproveEM&Vat
lower cost:31
Betterunderstandingofhowandwhenenergyis
consumed
Higherqualityestimatesofsavingsforexisting
energy efciency programs
Betterinformationfordesigningnewprograms
Disaggregationofheatingandcoolingloadsfrom
other loads using whole-premise interval data and
other inormation to break down consumption intoend uses
Reduceddatacollectioncoststhroughremote
monitoring, leaving more money or actual efciency
measures
Rapidfeedbackonneworexpandedenergyefciency
programs
Morerenedload-shapecharacteristicsofindividual
energy efciency measures, by season and time o day
Betterinformationfortargetingprogramstodiverse
customers
Moreaccurate,individualbaselinesandestimatedsavings and how and why they happened
Moredetaileddataforanalyzingtheeffectsofweather
day type, occupancy and other variables aecting
savings
Manydatapointsforbettercalibrationofenergy
savings models
Betteranalysisbysubgroupcustomertypeor
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Smart Grid, Consumer Energy Efciency, and Distributed Generation
location by matching interval meter data or
survey respondents with premise and occupant
characteristics
To get these benefts, however, utilities must make
arrangements or meter data to be collected at the required
interval (e.g., hourly), saely stored and easily retrievable.
Also,unlessthedataarebeingusedroutinelyforanother
purpose, such as designing rates and allocating revenue
requirements to customer classes, data clean-up will be
required. In addition, time stamps or meters by various
manuacturers may not be aligned.32
Policies Needed to Take Advantageo Smart Grid Capabilities or EnergyEciency
I increasing energy efciency is an objective o smartgrid deployments, utilities and stakeholders will need
to consider how to harness smart grid capabilities or
ratepayer-unded energy efciency programs. Policies or
states to consider include the ollowing:
Broad Strategies, With or Without Smart Grid
Treatenergyefciencyatleastonaparwithsupply-
side alternatives in resource planning and acquisition,
transmission and distribution planning, and organized
markets
Acquireallenergyefciencyresourcesthatrepresent the best combination o cost and risk (or
set aggressive but achievable goals through energy
efciency resource standards)
Provideadequateprogramfundingtoachieve
targets
Fullyvalueenergyefciencybyincludingall
relevant benefts in the applied cost test, such as
avoided costs associated with line losses, avoided
costs or transmission and distribution systems,
and reduced ossil uel use and water consumption
Adoptregulatoryandratemakingmechanismsthat
align utility and consumer interests33
Usealternativeregulation(e.g.,decoupling),
shareholder incentives or both
Moveawayfromaverageratestodeploymentof
inclining block or time-varying rates
Engageconsumersenable,motivateandeducate
Provideinformation,evaluationtools,andtargeted
advice coupled with incentives
Usemultiplechannelstogetandkeepcustomers
attention
Includeveriedsavingsfrombehavior-based
programs as qualiying measures or meeting energy
efciency goals
Policies Specifc to Smart Grid Deployments
Requiresmartgridtransitionplansandupdates Explainhowtheplanmeetsthestatesenergy
efciency and other goals, estimate costs and
benefts, orecast phased deployments and establish
an evaluation plan
Specifyminimumtechnologyfunctional
requirements, staging utility cost recovery with
availability o these services
Adoptinteroperability34 standards
Addressinformationaccess,privacyandsecurity
Giveconsumerseasyaccesstotheirowninterval
usage data in a helpul ormat Allowthirdpartiesauthorizedbythecustomerto
receive the data or customized energy efciency
products and services
Ensuredatasecurity
IncorporateintervalmeterdatainEM&Vplansand
requirements
Integrateratedesignwithsmartgridtechnologies
and applications to optimize consumer behavior and
system operations
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The U.S. electric power system was
designed to produce electricityat large power plants in remote
locations, send it over high-
voltage transmission lines, and deliver it on
lower-voltage utility distribution systems
to passive end-use customers. Increasingly,
electricity is produced by smaller, cleaner
distributed generation units at or near
customer sites and connected to the utility distribution
system.
The traditional one-way power ow rom power plants
to customers is turning into a two-way street. Customersare becoming active partners in meeting energy and
environmental goals through clean distributed generation,
peak load response and energy efciency. Smart grids
intelligent sensors, two-way communications and advanced
controls can acilitate this partnership.
Manyformsofdistributedgenerationaregrowingin
their use and potential impact on distribution systems.
Costsarecontinuingtodeclineforsolarphotovoltaic(PV)
and other small-scale renewable energy systems. Federal,
state and local governments are encouraging these systems
through grants, tax credits, net metering,
PURPA35policies,set-asidesinRenewablePortfolioStandards(RPS),feed-intariffsand
other programs. Some states also provide
incentives or combined heat and power
(CHP) acilities.36Aspenetrationlevelsof
distributed generation increase, concerns
about the stability and operation o the
electricity system could create barriers to
urther development. The evolution o distribution systems
to smart grids is expected to reduce many o these barriers
and help reach clean energy goals at a aster pace.
Initiatives underway are demonstrating how smart gridscan support distributed generation to provide sae, clean
and reliable power.37 But not all potential benefts o the
smartgridareunequivocallyproven.Andbenetsvs.
costs or smart grid components must be considered, as
well as costs or related, conventional distribution system
upgrades. For example, transormers may need to be
replaced with larger units to accommodate higher levels
o distributed generation. In addition, utility protection
schemes will need to be modifed to realize the advantages
o smart grids.
Figure 4.Potential smart grid benefts or distributed generation in the uture, compared to operations today
Distributed Generation (DG) as Smart Grid Evolves
Today
LowpenetrationofDG
Littleornocommunications
between DG and the grid
Detailedsystemimpactstudiesneeded or many applications
DGmeetsIEEEStandard1547
Microgriddemonstrations
Mid-Term
IncreasedpenetrationofDG
SomeinteractionbetweenDG
and the grid to respond to
price signals, or example Interconnectionstandardsand
rules are updated
Moremicrogridsdevelop
Long-Term
HighpenetrationofDG
DGcanbemonitored,controlledand
dispatched by utility
Easierinterconnection DGrides-throughsomegriddisturbances
DGprovideslocalvoltageregulationand
other ancillary services
Microgridsarecommonplace
The Smart Grid and Distributed Generation
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Smart Grid, Consumer Energy Efciency, and Distributed Generation
Potential Benefts o the Smart Grid or
Distributed GenerationThe smart grid will enable additional benefts o
distributed generation and energy storage (distributed
resources) or owners, utilities and system operators,
including:
Betterhandlingoftwo-wayelectricalows
Distributed generators export power to the utility
system when generation output exceeds any on-
site load demand. That makes it more difcult
or the utility to provide voltage regulation and
protective unctions. Smart grids monitoring and
communication unctions will make these tasks easier
or utilities.
Easierdeployment With real-time inormationprovided by the smart grid, the utility system
operator will have detailed reports on the current
conditions o individual eeders and loads. That
should allow or simpler interconnection studies
or no study at all i certain screens are passed or
some applications. Increasingly, distributed generators
may apply or power export i costs and complexity
o interconnection associated with power export are
reduced.
Higherpenetrationlevels With real-time knowledge o conditions on eeders, and
communication between the utility system and
distributed resources and loads, some utility operating
practices could be modifed to acilitate higher
concentrations o distributed generation.
Dynamicintegrationofvariableenergy
generation Smart grids will remotely monitor
and report generation rom distributed resources so
automated systems and system operators can dispatch
other resources to meet net loads.
Reduceddistributedgenerationdowntime New
inverter designs integrated with smart grids will allow
distributed generation to detect operational problems
on the utility system, such as aults, and continue
operating during some o these grid disturbances.
Maintainingpowertolocalmicrogrids
duringutilitysystemoutages Smart grids
could acilitate the ormation o intentional islands
o distributed resources and loads that disconnect
automatically when the local utility system is down
and automatically resynchronize to the system when
conditions return to normal. Distributed resources
within the microgrid continue to serve customer loads
in the island.
Valuingdistributedgenerationoutputbytime
ofdayAdvancedmeteringinfrastructurea
undamental part o the smart grid enables time-
varying rate designs or retail customers that better
supportsolarPVsystems,whichgeneratepower
primarily during on-peak hours38 when it is typically
more valuable.
Providingancillaryservices Smart grids built-in
communications inrastructure will enable the system
operator to manage distributed resources to provide
reactive power, voltage support and other ancillary
services under some circumstances. The system
operator would need to have operational control
over distributed resources in order to provide these
services.
Some o these benefts are described in more detailbelow.
Allowing Inverter-Based Systems to Stay On-LineWith smart grid communications, utility system
operators could more readily control inverter-based
distributed resources to optimize utility operations by
providing the ollowing services:
Variablevoltageoutputforlocalvoltageregulation
Variablereactivepowersupport
Variableramprate Ride-throughofvoltagedisturbances
Absentsmartgrids,inverter-basedsystemscouldprovide
a limited set o these unctions at a reduced level.39
Mostutilitiestodaydonotallowdistributedresources
to continue to provide power to the utility system during
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Is It Smart if Its Not Clean?
minorvoltageandfrequencydisturbances.Asaresult,
the widely accepted Institute o Electrical and Electronics
Engineers (IEEE) Standard 1547 requires that during
abnormal voltage and requency conditions on the utility
system, the distributed resource will not energize the utility
system. Thus, distributed resources are not allowed tosupport the operation o distribution systems.
Mostinverterscannotdifferentiatebetweenautility
outage, when the generator must disconnect rom the
utility system, and a minor disturbance, where remaining
on-line would help stabilize the system. New inverter
designs and the smart grids sensors, communication
and control systems could allow distributed resources to
remain connected to the utility system during some types
o abnormal conditions. Close cooperation among utility
owners, inverter designers and smart grid developers is
required to achieve successul development and integrationo new inverters with utility acilities and operations. Work
is underway to develop standard protocols.
Smart grids plus new inverter technology or distributed
resources could help address problems on distribution
feeders,suchasoutagesandperiodsofinstability.And
utilities could control inverter-based systems to supply
reactive power and regulate voltage in a more cost-eective
manner than installing traditional utility-owned equipment
Simplifying Interconnection Studies
Smart grids should make it easier to interconnectdistributed generation to utility systems by simpliying
studies required prior to commissioning the generator,
saving time and money.
Utility impact studies investigate the potential adverse
eects on operation, saety and reliability o interconnecting
a proposed distributed resource to the utility system, absent
modicationstothesystem.Afterthat,theutilityconducts
a acilities study to identiy equipment and operational
changes that address the negative impacts identied.
In some cases, a smart grid would not make any
dierence in this process. For example, a large distributedresource on a eeder circuit would likely still require impact
and acilities studies and additional utility equipment to
accommodate the generator. In other cases, the historical
and real-time inormation on eeder operation that smart
grids can provide could reduce the need and scope o an
impactstudy.Andbecausesmartgridscouldallowutilities
to control distributed resources on a eeder, including
The interaction o distributed resources with the
utility distribution system is infuenced by the type o
power conversion device used:
Inverter-basedsystems,suchassolarPVand
small wind turbines, use power electronics to
convert electricity rom direct current (DC) or
non-synchronousalternatingcurrent(AC)to
ACpowersynchronizedwiththeutilitysystem.
They can provide reactive power and, by varying
the output between real and reactive power,40
providevoltageregulationaswell.Mostinverter-
based systems have sotware-based protective
relaying41 and coordination and communication
unctions. That gives them two advantages over
other systems: 1) they are easier to interconnect
with the utility system and 2) they provide more
unctionality, potentially or both the distributed
resource owner and the utility system.
Synchronousgeneratorscan operate indepen-
dently or in parallel with the utility system. They
can produce reactive power and regulate voltage.
They need equipment to synchronize with the
utility system and protective equipment to isolate
rom the system during aults.42
Inductiongenerators receive their excitation43
rom the utility system and cannot operate
independently; the utility system governs the
requency and voltage produced by the generator.
Mostinductiongeneratorsabsorbreactivepower
and cannot control voltage or power actor.44
The reactive power requirements o induction
generators can adversely aect the utility system.
Generators that use biogas rom landlls, arms and
wastewater treatment plants generally use synchronous
or induction generators. CHP and waste energyrecovery acilities also typically use one o these two
conversion devices, although most microturbines use
inverters. Distributed energy storage technologies
such as advanced batteries and electric vehicle-to-grid
systems use inverter-based designs. On-site diesel or
natural gas-red distributed generators typically use
synchronous or induction designs.
How Distributed Resources InteractWith the Utility System
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their voltage, reactive power and ramp rate, some o the
potential grid problems distributed resources can cause
today could be alleviated.
Smart grids also could reduce interconnection cost
and complexity or distributed generators that will export
power to the utility system. Currently, in many cases
modications to a utilitys protective scheme may be
required when a distributed generation unit applies to
export power to the grid. The generation owner typically
bears the cost o these modications. The smart grid
may alleviate some o these costs by applying adaptive
protection systems that can better accommodate power
fows rom distributed generators, without requiring
extensive modications.
TheFederalEnergyRegulatoryCommission(FERC)
and many states have adopted technical standards and
procedures that simpliy the process o interconnectingdistributedgeneration.FERCandnearlyallthesestates
provide an expedited and less expensive interconnection
process including no impact study in some cases i the
application passes a set o screens that include criteria
such as:
Thesizeofeachdistributedgenerationunitmustnot
exceed2megawatts(MW).
Theaggregateddistributedgenerationonaline
section must not exceed 15 percent o the lines
annual peak load.
Theaggregateddistributedgenerationonthe
distribution circuit must not contribute more than
10percenttothecircuitsmaximumfaultcurrentat
the point on the primary line nearest the point o
common coupling.
Figure 5.Distributed energy resources (DER) and the smart grid 45
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Is It Smart if Its Not Clean?
Theaggregateddistributedgenerationonthe
distribution circuit must not cause any fault
currents exceeding 87.5 percent of the short circuit-
interrupting capability.
Smart grid capabilities could go further by allowing
some of these screens to be relaxed. The additional
information, communication and remote monitoring
infrastructure will give the utility the operating
characteristics of individual feeder circuits, allowing for
higher penetration of distributed generation without
performing detailed impact studies for some installations.
That will lower costs and speed deployment.
Enabling Microgrids and Premium Power Parks
Microgridsincludepartsoftheutilitygrid,multiple
distributed generation units and multiple loads connectedby circuits. The generators are distributed within a campus
or among multiple buildings. The generating system can
detect grid stability events that trigger disconnection from
the utility system, quickly creating an electrical island
thatcontinuesprovidingpowertoloadswithin.Microgrids
needtobecarefullyplannedandimplemented.Microgrid
loads need to be managed and, in some cases, loads need
to be reduced when the microgrid is disconnected from the
utility grid.
There are several types of microgrids, including the
following:
Type1microgrids are designed for continuous
operation in parallel with the grid. Distributed
generators feed the campus own distribution
system, generating some or all of the power required.
When a fault is detected on the utility grid, the
microgrid disconnects and operates independently.
The transition to microgrid supply is typically
accomplished through the use of paralleling
switchgear. In some cases, load will need to be
reduced.
Premiumpowerparks(CriticalType2
microgrids) provide critical backup power systems
that serve multiple facilities. These microgrids include
energy storage systems and static transfer switches
that can seamlessly switch over part or all load during
utility outages. Storage carries the system through
until emergency generators start up.46
Non-criticalType2microgrids are for campuses
that can tolerate a short outage. These microgrids
manually or semi-automatically disconnect from the
grid, start their emergency generators and continue
operation. In some cases, Type 2 microgrids can
be used for peak shaving or short-term baseload
operation, but additional equipment is required.
Using smart grid capability, microgrids could be much
larger in scale than those existing today and could be part
of the utility-owned distribution system. IEEE Standard
1547.4, currently under development, will provide
alternative approaches and good practices for the design,
operation and integration of microgrid systems with the
utility grid.
Supporting Variable Generation
Some distributed generation technologies use renewable
energy resources, such as solar and wind, with power
productionlevelsdependentonforcesofnature.Athigh
penetration, these variable energy resources can create
instability on the grid the way it is operated today as their
power output decreases or increases within the hour.
Within-hour scheduling and other operational changes
under consideration to support variable generation would
complement smart grid applications and new inverterdesigns. For example:
Distributedgenerationcouldbecontrolledlikeutility
scale power plants to provide automatic generation
control instantaneous regulation of electricity
to maintain frequency on the system within tight
parameters.
Smartgridssensorsandcommunicationscouldhelp
grid operators predict short-term generation impacts
of winds and clouds as they move from one region to
the next.
Gridoperatorscouldcontrolenergystoragesystemsto meet peak demands when generation levels from
distributed energy resources are low.
Distributedgeneratorscouldgainaccesstonew
markets for energy, capacity and ancillary services.
The additional revenue streams could help overcome
economic barriers to greater investment in distributed
renewable resources.
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Smart Grids and Combined Heat and PowerCombined heat and power (CHP) systems are typically
run near their ull capacity or are limited by on-site
(host) thermal demands or manuacturing processes,
or example. However, some CHP systems can provide
additional capacity or brie periods. Others may increaseoutput beyond what is needed on site and reject excess
thermal output, similar to conventional power plants. Some
applications use condensing turbines that are operated
only when thermal demands drop. These could be used
more requently to serve periods o high loads on the utility
system. In addition, new CHP units could be sized larger
or power export to the grid, i it became economically
avorable to do so. CHP also can enable customers to
participate in demand response programs and capacity
markets.
Following are two examples o CHP systems providinggrid support in a smart grid concept:
AtPrincetonUniversity,facilityplannersincorporated
a number o smart grid attributes when they changed
production strategies involving the campus CHP
system as well as steam and electric chillers to take
advantage o high-priced electric periods. The system
increases electricity production and reduces electric
loads during periods o high grid demand and reduces
electricity production during low-demand periods.47
TheCityofStamford,Connecticut,isdevelopingan
Energy Improvement District that embodies many
smart grid concepts, such as reducing demand on
the grid and deploying advanced generation in a
microgrid structure. The district will deploy CHP,
distributed generation using renewable resources,
and advanced controls that will allow it to operate
independently or in conjunction with the utility
grid, connecting or disconnecting itsel seamlessly as
needed without disrupting service.48
Standards and Rules Will Need to ChangeTechnical standards and interconnection procedures or
distributed resources must build upon the current IEEE
Standard 1547, which was designed or low penetration
o distributed generation and does not address impacts
on the grid or grid operations. Standards will need to beupdated to address higher penetration levels and improved
utility operations made possible by smart grids, and to take
advantage o smart grid-enabled capabilities such as riding
through some types o utility disturbances, regulating
voltage, reclosing and automating utility reliability schemes
IEEEP203049 provides guidelines to defne
interoperability50 between the smart grid and end-
use applications and loads. The drat guide addresses
terminology, characteristics, unctional perormance
and evaluation criteria, and application o engineering
principles or interoperability. It also discusses other bestpractices or the smart grid.
IEEE P1547.851 recommends practices to expand
strategies or interconnecting distributed generation with
electric power systems and will include guidance on
generatorsbeyond10MW,extendingitsreachbeyondthe
stated scope o IEEE Standard 1547. The new standard also
identifes innovative designs, processes and operational
procedures that may be used to realize extended use
beyond IEEE Standard 1547 requirements.
TheElectricPowerResearchInstitute,theU.S.
Department o Energy, Sandia National LaboratoriesandtheSolarElectricPowerAssociationhavelaunched
a collaborative to develop common methods or
communication between inverter-based distributed
resources and other grid components.
Federal and state regulators can modiy their
interconnection rules to incorporate these new standards as
they become available.
Smart Distributed Generation Policies for
Smart Grids
Smart grids are expected to enable higher levels odistributed generation. But supportive policies are needed
to achieve this goal. The ollowing table highlights potential
smart grid benefts or distributed generation and policies
needed to take advantage o these capabilities.
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Smart Capabilities
Enable higher penetration levels o clean
distributed generation
Acceleratedeploymentandallow
interconnected distributed generators to
operate during utility outages
Dynamically integrate distributed wind and
solar resources
Optimize voltage and reactive power on
distribution systems
Increase demand response to allow loads to
ollow variable renewable energy resources
Provide physical connection and communica-
tion with wholesale and retail markets
Provide timely inormation on each distributed
generator, including type and availability;
allowtrackingforRPScomplianceandreduce
tracking costs
Easier and timely interconnection o
distributed generation or exporting power tothe grid
Distributed Generation Policies to Take Advantage of Smart Grids
Smart Policies
Provide incentives or clean distributed resources, adopt
best practices or net metering, require advanced meteringinrastructure to support net metering,52 and enable excess power
salesthroughRPSset-asides,statePURPApoliciesorfeed-intariffs
Update interconnection standards and utility operations to reect
smart grid capabilities and provide incentives to distributed
resources to provide new services or the utility system
Improve utility planning or renewable resources and support
mechanisms to reduce integration costs or example, intra-hour
scheduling
Removebarrierstoutilityinvestmentsthatimprovedistribution
system efciency or example, through decoupling, where
retail customer rates or recovering fxed utility costs are adjusted
periodically to keep utility revenue at the allowed level
Oer customers dynamic pricing options and incentives or other
types o demand response programs; provide customers with easy
access to useul energy consumption data, evaluation tools and
targeted advice; oster innovation in the marketplace or controls
that automate the customers response; and incorporate demand
response in integrated resource planning
Provide access to new markets and revenue streams or customer-
owned distributed generation
Better incorporate distributed generation into energy orecasting
andRPScompliance
Provide transparent cost inormation and air cost allocation or
interconnection; streamline and update interconnection studyrequirements or exporting power to the grid
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Smart Grid, Consumer Energy Efciency, and Distributed Generation
Conclusion
The smart grid oers the potential to increase
energy savings and improve customer control o bills
through inormation and automation. In addition,
widespread availability o interval meter data and two-way communication between the utility and the meter
shouldsignicantlyimproveEM&Vforenergyefciency
programs.
To support these outcomes, state regulatory utility
commissions can speciy unctional requirements or
smart grid technology and applications to support energy
eciency programs, ensure consumers and authorized
third-party service providers have secure access to
energy usage inormation, require utilities to develop
and periodically update a smart grid transition plan that
explains how all the components phased in over time will
t together and address state goals or energy eciency,
and adopt rate designs that encourage energy-ecient
consumer behavior.53
Clean, distributed generation also can fourish
with the support o smart grids advanced monitoring,
communication and controls. To take advantage o thisopportunity, states can adopt best practices in areas such
as distributed generator interconnection,54 net metering,
accounting or distributed generation in resource planning
and distribution system planning, distributed generation
procurement, and removing utility disincentives to non-
utility-owned generation.
With an understanding o the potential benets o smart
grids or energy eciency and clean distributed generation,
state regulators can use their broad authority to put in place
a regulatory ramework to tap smart grids ull potential.
Endnotes
1 Thankstoourreviewers:ThomasBasso,NationalRenewableEnergy
Laboratory(distributedgeneration),ChrisKing,eMeter,andOgi
Kavazovic,OPOWER(informationfeedback);HannahFriedman,
PECI (building diagnostics); Steven Schiller, Schiller Consulting, and
MiriamGoldberg,KEMA,Inc.(EM&V).
2 Lisa Schwartz and William Steinhurst, Is It Smart i Its NotClean? Part One: Strategies or Utility Distribution Systems,May2010,http://www.raponline.org/docs/RAP_Schwartz_
SmartGridDistributionEfciency_2010_05_06.pdf.
3 ElectricResearchPowerInstitute(EPRI),Guidelines for DesigningEffective Energy Information Feedback Pilots: Research Protocols,April2010,http://my.epri.com/portal/server.pt?Abstract_
id=000000000001020855.
4 Going even urther, device monitors can show instantaneous usageor individual appliances.
5 Inclining block rates, also called inverted block or tiered rates, charge
a higher rate per kilowatt-hour at higher levels o energy usage (and alowerrateatlowerusagelevels).PacicGas&Electric,forexample,
allows customers to sign up or tier alerts to help them avoid moreexpensive energy use.
6 EPRI,2010.
7 SeeeMeterStrategicConsulting,Power Cents DC Final Report,September2010;Idaho Power, Time-of-Day and Energy Watch PilotPrograms Final Report,March29,2006,AppendixB;andNexus
Energy Sotware, Opinion Dynamics Corporation and Primen,
Information Display Pilot: California Statewide Pricing Pilot (FinalReport),Jan.5,2005.
8 KarenEhrhardt-Martinez,KatA.DonnellyandSkipLaitner,Advanced Metering Initiatives and Residential Feedback Programs:A Meta-Review for Household Electricity-Saving Opportunities,AmericanCouncilforanEnergy-EfcientEconomy,June2010,
http://aceee.org/pubs/e105.htm.
9 EPRI,Residential Electricity Use Feedback: A Research Synthesis andEconomic Framework,2009,www.epri.com.
10BillProvencherandMaryKlos,NavigantConsulting,UsingSocial
NudgestoReduceEnergyDemand:EvidencefortheLongTerm,
Behavior,Energy&ClimateChangeConference,Nov.17,2010,
http://www.navigantconsulting.com/downloads/knowledge_center/Navigant_BECC2010_OPOWER_SMUD.pdf.Reportsonother
homeenergyreportprogramsathttp://www.opower.com/Results/
IndependentVerication.aspx.
11 Sarah Darby, The Eectiveness o Feedback on Energy ConsumptionAReviewforDEFRAoftheLiteratureonMetering,BillingandDirect
Displays, Environmental Change Institute, University o Oxord,2006.
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Is It Smart if Its Not Clean?
12AhmadFaruqui,SanemSergiciandAhmedSharif,Theimpactofinformationalfeedbackonenergyconsumption:Asurveyoftheexperimentalevidence,Energy(35),2009.
13 See, or example, Brien Sipe and Sarah Castor, Energy Trust oOregon,TheNetImpactofHomeEnergyFeedbackDevices,2009Energy Program Evaluation Conerence, http://energytrust.org/library/reports/Home_Energy_Monitors.pdf;S.S.vanDam,C.A.BakkerandJ.D.M.vanHal,Homeenergymonitors:impactoverthemediumterm, Building Research & Inormation(2010)38(5),458-469.
14RPratt,MCWKintner-Meyer,PJBalducci,TFSanquist,CGerkensmeyer, KP Schneider, S Katipamula, and TJ Secrest, PacifcNorthwest National Laboratory, The Smart Grid: An Estimation o theEnergy and CO2 Benefts, prepared or the U.S. Department o Energy,January2010,http://energyenvironment.pnl.gov/news/pdf/PNNL-19112_Revision_1_Final.pdf.
15CommunicationwithOgiKavazovic,OPOWER,February2011.
16 Buildings should be re-commissioned periodically to address
changes in unctional requirements over time that reduce energyefciency and compromise efcient operations.
17EvanMills,LawrenceBerkeleyNationalLaboratory, BuildingCommissioning: A Golden Opportunity or Reducing Energy Costs andGreenhouse Gas Emissions, prepared or Caliornia Energy CommissionPublicInterestEnergyResearchProgram,July2009,http://cx.lbl.gov/2009-assessment.html.
18Moretypicalapplicationsmayseelowersavings,intherangeof8percentto10percent(communicationwithHannahFriedman).
19Dataoverlongertimehorizonswerenotavailable.
20Atonne,ormetricton,isequalto1,000kilograms(roughly2,205pounds).
21Millionsofmetrictons.
22EPRI,The Green Grid: Energy Savings and Carbon Emissions ReductionsEnabled by a Smart Grid,TechnicalUpdate,June2008,www.epri.com.
23 Hannah Friedman, PECI Inc., Wiring the Smart Grid or EnergySavings: Integrating Buildings to Maximize Investment,2009,http://www.peci.org/documents/white-paper/smartgrid_whitepaper_031010.pdf.
24HannahFriedman,PECI,andPriyaSreedharan,EPA,WiringtheSmartGridforEnergySavings:MechanismsandPolicyConsiderations,2010ACEEESummerStudyonEnergyEfciencyin
Buildings,August2010.
25 PNNL did not attribute any incremental savings to smart grid-enabled diagnostics in large commercial buildings, in part becauseresearchers did not view simple, uniorm diagnostics to be well-matchedtocustom-designedandcomplexHVACsystems.
26 Interval meter data also could be used to help identiy opportunitiesor customers to oer demand response resources to the utility ormarket.
27StevenR.Schiller,SchillerConsulting,Inc.,Model Energy EfciencyProgram Impact Evaluation Guide,preparedforNationalActionPlanforEnergyEfciency,2007,http://www.cee1.org/eval/evaluation_
guide.pd.
28CharlesGoldman,MichaelMessengerandSteveSchiller,Surveyo Current Energy Efciency Program Evaluation Practices andEmergingIssues,presentationtoNationalAssociationofRegulatoryUtilityCommissioners,Feb.10,2010,http://www.narucmeetings.orgPresentations/Goldman_EMV_NARUC_wintermtg_v7_021210%20%282%29.pdf.
29Schiller.
30FormoreinformationaboutEM&V,seehttp://epa.gov/statelocalclimate/state/activities/measuring-savings.html.
31 See Lisa Schwartz, Smart Policies Beore Smart Grids: How StateRegulatorsCanSteerInvestmentsTowardCustomer-SideSolutions,2010ACEEESummerStudyonEnergyEfciencyinBuildings,http://raponline.org/docs/RAP_Schwartz_SmartGrid_ACEEE_paper_2010_08_23.pdf.AlsoseeMiriamGoldberg,KEMAInc.,ImprovedAnalysisofSavingsPotentialandAchievementviaSmart
Grid/Meters,presentationforEPA-DOEWebinar,Dec.2,2010,http://www.emvwebinar.org/Meeting%20Materials/2010-2011/index.html.
32 Goldberg.
33SeeNationalActionPlanforEnergyEfciency, Aligning UtilityIncentives With Investment in Energy Efciency,November2007,athttp://www.epa.gov/cleanenergy/energyprograms/napee/resources/guides.html;additionalresourcesfromtheRegulatoryAssistanceProject at http://raponline.org/.
34 The ability o systems or products to work with other systems orproducts without special eort by the customer.
35ThePublicUtilityRegulatoryPoliciesActof1978requiresutilitiesto buy all energy and capacity made available by QualiyingFacilities(QFs)renewableresourcesupto80MWandenergy-efcient cogeneration o any size at avoided cost rates. States havebroaddiscretionoverimplementation.Whilea2005amendmentprovides or termination o a utilitys obligation to enter into newcontractswithQFsiftheFederalEnergyRegulatoryCommissionmakes specifc fndings about their access to competitive markets,termination is typically limited to organized markets and QFs largerthan20MW.
36 CHP systems sequentially produce both electric power and thermalenergy.Related,wasteenergyrecoveryrecyclesheatfromindustrial
processes to generate electricity. Some states oer incentives orefcient CHP systems.
37 Initiatives include projects unded by the U.S. Department o EnergyanddemonstrationprojectsbytheElectricPowerResearchInstitute.
38 Sundays are o-peak all-day in U.S. energy markets. Thus, somepowerfromsolarPVsystemswillbeproducedduringoff-peakhours
39Inductionandsynchronousgeneratorscannotprovidethese
unctions as easily or at all.
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The Regulatory Assistance Project (RAP) is a global, non-prot team o experts that ocuses on
the long-term economic and environmental sustainability o the power and natural gas sectors, providingtechnical and policy assistance to government ocials on a broad range o energy and environmental issues.RAPhasdeepexpertiseinregulatoryandmarketpoliciesthatpromoteeconomicefciency,protecttheenvironment, ensure system reliability, and airly allocate system benets among all consumers. We haveworkedextensivelyintheUSsince1992andinChinasince1999,andhaveassistedgovernmentsinnearlyeveryUSstateandmanynationsthroughouttheworld.RAPisnowexpandingoperationswithnewprogramsandofcesinEurope,andplanstooffersimilarservicesinIndiain2011.RAPfunctionsasthehubofanetwork that includes many international experts, and is primarily unded by oundations and ederal grants.
40Reactivepowerestablishesandsustainstheelectricandmagneticelds o alternating-current equipment and directly infuenceselectricsystemvoltage.Reactivepowermustbesuppliedtomosttypes o magnetic (non-resistive) equipment and to compensateor the reactive losses in distribution and transmission systems.Reactivepowerisprovidedbygenerators,synchronouscondensers,andelectrostaticequipmentsuchascapacitors.Realpoweristhe
component o electric power that perorms work, typically measuredin kilowatts or megawatts.
41 Protective unctions address issues such as under/over current, under/overvoltageandgroundfaultdetection.Mostinverterunitsprovideautomatic, built-in overload and short-circuit protection.
42Afaultisanabnormalconnectioncausingcurrenttoowfromoneconductortogroundortoanotherconductor.Afaultmaybecorrected automatically or may lead to a voltage sag or power outage.
43Ageneratorconsistsofarotorspinninginamagneticeld.Themagnetic eld may be produced by permanent magnets or by eldcoils, where a current must fow to generate the eld. Excitationis the process o generating a magnetic eld by means o an electric
current.44 Power actor is the ratio o real power fow to a piece o equipment
to the apparent power fow. The dierence is determined by thereactive power required by certain types o loads, such as motors andtransormers. The power actor is less than one i there is a reactivepower requirement.
45FromThomasBassoandRichardDeBlasio,NationalRenewableEnergyLaboratory,AdvancingSmartGridInteroperabilityandImplementingNISTsInteroperabilityRoadmap:IEEEP2030TMInitiativeandIEEE1547TMInterconnectionStandards,athttp://www.gridwiseac.org/pdfs/forum_papers09/basso.pdf.
46 Emergency generators may be subject to operational-hour limitations
due to emissions regulations.
47 Thomas Nyquist, director o Facilities Engineering, PrincetonUniversity, Princeton University and the Smart Grid, CHP, andDistrictEnergy,presentedtotheEPACHPPartnership,November2009.
48MichaelFreimuth,CityofStamford,andGuyWarner,ParetoEnergy,ProgressReportonCHPDevelopmentinStamford,presentedtothEPACHPPartnership,November2009.
49 IEEE P2030 Draft Guide for Smart Grid Interoperability of EnergyTechnology and Information Technology Operation with the Electric PowerSystem, and End-Use Applications and Loads. This guide is amongthe smart grid interoperability standards under development by theNational Institute o Standards and Technology, or considerationbyFERC.Formoreinformationonthestandards,seeSmartGridInteroperabilityPanelStandardsUpdate,Nov.5,2010,http://www.smartgridlistserv.org/presentations/naruc/index.html (or http://vimeo.com/16831719forasimpliedversionthatworksonallcomputer
operating systems).
50Interoperabilityistheabilityofsystemsorproductstoworkwithother systems or products without special eort by the customer.
51IEEEP1547.8,RecommendedPracticeforEstablishingMethodsandProcedures that Provide Supplemental Support or ImplementationStrategies or Expanded Use o IEEE Standard 1547.
52 For example, Pennsylvanias unctional requirements or advancedmetering inrastructure require that the system support net metering.
53SeeJimLazar,LisaSchwartzandRileyAllen,PricingDosandDonts:DesigningRetailRatesasifEfciencyCounts,April2011,http://www.raponline.org/docs/RAP_PricingDosAndDonts_2011_04.pd
54AnewRAPpublicationonbestpracticesforinterconnectionofdistributed generators will be available soon at www.raponline.org.
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