smart grid essential tools - emmosemmos.org/prevconf/2016/1. tuesday training smart grid...

Smart Grid Essential ToolsEMMOS 2016 September 13, 2016

Andrew HansonDistribution Operations & Automation Lead – North America

Copyright © 2016 Accenture All rights reserved.

Industry Context & Emerging Business Models

Policymakers globally are focused on optimizing efficiency in the energy distribution system

New YorkVision for DSO’s to become the ‘network platform’ creating a market for DER• Shifting to long-term planning for DSO’s

Germany• Growth in rooftop solar due to

feed-in tariff subsidies• Limiting regulatory protection or

support for new distribution revenue model

Australia • High DER penetration from nationwide

mandate to increase renewable energy• DSO’s increasingly seeking to keep

customers on the grid through added value in a distribution market operator role

Hawaii• DER penetration driven by high

electricity rates • Regulatory model changes are in

flux to lower costs and support distribution network of the future

United Kingdom• Renewables targets and feed-in tariffs driving

the DER market• RIIO regulations are switching revenue

mechanisms with incentives

California • Vision for DSO’s to become the ‘network

platform’ creating a market for DER• Shifting to long-term planning for DSO’s and

debate over utility ownership of DER and role of retailers

Japan• Nationwide reform of electricity system• Neutrality of distribution, retail choice, and

stimulus for wholesale electricity market

Source: Accenture Research



Accenture modelling shows potential revenue reduction due to reduced load could range between $18 and $48bn in the U.S.

3

2 400

2 500

2 600

2 700

2 800

2 900

3 000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

TWh

Accenture Model – US Residential and Commercial Demand(excluding prosumer generation)

Source: Accenture analysis.

$18bn2

$48bn2

Reduction in load of between160 TWh to 460 TWh

compared to Status quo scenario by 2025 for US

utilities

• Household numbers increase by average of 0.75% per year

• Electricity demand growth from EIA Energy Outlook

• Current trends for energy efficiency deployment maintained

• Federal subsidies for PV phased out by 2020

• PV costs based on average of historic trends

STATUS QUO ASSUMPTIONS

² At current retail prices.

STATUS QUO

DEMAND DISRUPTION

PERFECT STORM



Distribution utilities will evolve as technologies are adopted and new markets developed and supported by policy.

DER

Tec

hnol

ogy

Ado

ptio

n / P

enet

ratio

n

High

Low

1

2

3

0 – 2 Years 2 – 5 Years 5 – 7 Years

Distribution Platform Optimizer

Platform Access Provider

Smart GridOperator

Transformation of the distribution function through regulatory

reform expands role and opens new markets

Future Focus

• Pilot new DER models• Refine economic

scenarios and value• Set standards• Defer capital

• Improve grid optimization & dispatch

• Develop price-setter ‘clearinghouse’ role

• Transform investment regime

• End-to-end asset & grid optimization

• Aligned incentives between customer, utility, DER vendors, and aggregators



Investing in grid optimization delivers value now and provides capabilities critical for success in emerging models.

Grid operations improvement(0 to 3 years)

Improved integration and

control(2 to 5 years)

Fully digital grid(3-10 years)

• Adoption of AMI and ADMS

• Analytics for grid operations (e.g., asset investments, voltage/power optimization, system planning)

• Real-time advanced analytics for grid optimization

• Intelligent devices and d2d networks for distributed generation integration and embedded storage

• Adding NEW applications and tools beyond current DMS

• Further penetration of grid automation and sensing

• Real-time decision engines and control optimization

• Dynamic integration with demand drivers (e.g., demand response, dynamic tariffs, interconnect agreements)

• Compliance with a new regulatory and market requirements

• Reduced operations and maintenance costs

• Improve EBIT on power

• Improved DER integration (cost, reliability)

• Improve ROI on capital

• Lower capital required (peak demand)

KEY PLATFORMS/CAPABILITIES OUTCOMES

Distribution companies will look very different than today and the digitalization would be the conduit to support that transformation



Across the value chain, we believe three emerging utility growth platforms have the potential to unlock significant new value.

Low Carbon Energy

Producers

Distribution Platform

Optimizers (DPO)

Energy Solution Integrators

Residential and SMB

Commercial and industrialSmart metersDistributionTransmissionMarket Operations / tradingGeneration

Growth in low-carbon energy assets, focusing on operational performance of the right assets

in the right geographies

Growing returns through system optimization, efficiency, and

utilization while integrating new assets, technology, and market

frameworks

Emerging landscape of providers of innovative customer solutions

and services, to new/evolving customer segments

DPO Business Model Features From ToKey Principle Obligation to serve (i.e. meet peak) Commitment to optimize

Role Transportation company Network optimizer and enabler

Market Mechanism Capacity model Demand and supply clearinghouse

Regulatory Model Allowed return on assets Outcome-based incentives

Tariff Structure Cost to serve Dynamic price signals and interconnections

System Model Proprietary, closed Industry standards, interconnections

Customer Interactions Traditional (calls, faxes, letters) Pervasively digital

Example Characteristics



The opening of markets and value streams will enable utilities to judiciously manage the grid and add value to their customers.

Smart Grid OperatorDistribution

Platform IntegratorDistribution

Platform OptimizerGrid Characteristics

Focus on grid modernization programs; optimize communications network: metering functions, public lighting, charging stations

Focus on seamlessly integrating DER; system balancing to manage multi-directional power flow

EV spot charge integration; distribution operator functions like RTO managing two-way power flows and myriad intermittent and dispatchable resources

Customer Operations Characteristics

Focus on the customer experience; ubiquitous digital channels; advanced billing, payment options; EE programs

Act as “Energy Advisor” to provide energy insights in more complex market ; personalized interactions

Manage a new horizon of transactions for customers (settlement, etc); offer wide variety of customized, value-added products and services (unregulated?)

1 2 3

Increasing ability to play in new markets and capture value streams

Copyright © 2016 Accenture All rights reserved.Copyright © 2015 Accenture All rights reserved. 9

1. System Planning

2. Engineering

& Design

3. System Operations

4. Market Operations (Emerging)

Impacts of DER on the Distribution Organization

High Penetration of DER Will Require Enhancements Across the Distribution Organization

Enhancements will be needed in people, processes, and technologies


• Development of DER forecasts, in addition to traditional distribution load forecasts

– Amounts by year, locations, types, sizes, etc

• New data types – identification and collection of new data for DER planning

– Attributes/modeling of DER required in planning

• Entry and storage of those attributes in GIS or other repository

– 3rd-party providers/aggregators of DER

• Plans for DER installations

• DER operations data for 3rd-party providers/aggregators that is not directly available to utility

– ADMS data, including DSCADA/Historian data

• Actual recorded SCADA values, calculated values from load flow and other applications, alarms, limit violations, load transfers, etc.

• Planning process enhancements

– Development of new objectives and metrics, relative to planning for 3rd-party provided DER

– Valuation of DER by location

– Evaluation of DERs compared to traditional capacity alternatives

– Managing uncertainty of DER, both in installations and operation

– Enhancements to the coordination with generation/transmission planners

• Distribution planning software enhancements, relative to DER

– Vendor evaluation and system implementation

1. DER Impacts on Distribution System Planning


• Present and emerging issues of DERs on system engineering and design

– Troubleshooting problems created by high-penetration DER (e.g.,ramp rates, high voltage, islanding, protection).

• Enhancements to DER Interconnection Procedures

– Standards/criteria/processes/capabilities assessment, for handling DERs

• Human capabilities, as well as modeling/analysis capabilities

– Enhancements to DG interconnection screens / criteria for fasting-tracking where possible

– Efficiency of interaction with 3rd-party DER providers

– Evolution of IEEE 1547 and UL 1741 for interconnection, as well as other standards and guidelines

• Emerging technologies impacting DER and system engineering

– Smart inverters for DER, including new standards and guidelines

– Communications and networking to DERs

– Emergence of new DER technologies (e.g.,battery storage)

• Smart Inverters

– Functionality of smart inverters

• Autonomous (local) controls, including advanced algorithms to respond to system problems

• Communication standards and protocols to smart inverters

• Use of smart inverters with centralized monitoring and controls, such as ADMS

– Testing and certification processes for inverter vendors

– How standards and early adopters (State of CA) will impact each state’s standards for smart inverters

• Required DER modeling and analysis capabilities in distribution system engineering tools

2. DER Impacts on Distribution Engineering & Design


• Improved monitoring, estimation of DER states required in ADMS

– Status and analogs from larger DERs; predicted status and analog from smaller DERs

– Behavior of DER during temporary faults and reclosing cycles

• Future: Control of DER’s, as standards and feasibility permit

– Use in distribution Volt/VAR control

– Real power curtailment or increase.

• Required modeling and incorporation of DER into ADMS applications

– Unbalanced load flow and state estimation

– Volt/VAR control, including the use of DER as a control variable where possible

– FLISR - Fault location, isolation, service restoration. Behavior of DER’s during and after events.

– Planned switching, and other ADMS applications

• Operational forecasting of DER’s

– Minutes, hours, days ahead

– Development of new methodologies/tools, accounting for intermittency coincidence

– Need for more granular (spatial and temporal) forecasting at sensor and meter level.

• Possible implementation of DERMS

• Possible impacts on transmission operations at higher penetrations

– Reliability, spinning reserve, 30 minute reserve needs, frequency control, etc.

• Understanding of DERs during emergency and planned substation and feeder switching

3. DER Impacts on Distribution Operations


• Much capability development is required for a DSO to monitor and manage a distribution market, such as:– Identifying and facilitating standard products to be transacted, and

enabling the associated market rules– Improving awareness of operating state of DER resources– Facilitating and processing market transactions– Measuring and verifying DER performance and commitments– Optimizing system operations, from both technical and economic

perspective, considering transmission supply, distribution generation, demand response, energy storage, intermittency etc.

– Managing settlements, including verification, billing, receiving, cash management, dispute management

– Coordinating distribution market with bulk power supply markets

4. Coordinating DER in Distribution Market Operations


• IOUs required to file Distribution Resources Plans with CPUC in 2015.

• DRP’s outlined general plans for accommodation and facilitation of interconnection for DERs and included collaboration on LNBM.

• Customer value propositions, use cases and greater detail expected to be required as Rulemaking proceeds.

Case Studies: California

• Traditional OMS and traditional DMS will be supplemented with DERMS functionality to support real-time distribution operation in presence of DERs participating in one or more marketplaces.

DE

RM

S

Grid Operation with High DER Penetration


• High historical electricity costs have led to high levels of PV penetration.

Case Studies: Hawaii

• Actively retiring existing generation assets in favor of DERs (residential PV and other renewables), DR and batteries.

0

10

20

30

Hawaii US Average

cents/kw

h

Average Price of Electricity (All Sectors)

October 2015

• High DER penetration has led to locational restrictions on DER interconnections based on circuit load levels.


Essential Tools for a Distribution Platform Optimizer• Geographic Information System (GIS)

– Includes “normal” phased primary system data (conductor, configuration, phasing, etc.– Future requirements likely include at least a close approximation of secondary meter to

transformer connectivity (length, conductor, etc.)– Substation connectivity/data may be embedded in GIS to facilitate import/update to

other applications

• DSCADA and Advanced Distribution Management System (ADMS)– Control and monitoring of substation/field devices to provide operator visibility– Includes basic and advanced applications supporting distribution system operation– Unbalanced power flow, volt var optimization, fault location and isolation, automated

switch order creation, tagging, etc.– Primary operator interface


• Outage Management System (OMS) – Outage monitoring, reporting and aggregation, integrated with AMI and IVR– Ticket creation and estimated time of restoration– OMS functionality may ultimately be subsumed into ADMS

• Distributed Energy Resource Management System (DERMS)– Provides monitoring and control of individual and aggregated DERs– Includes forecasting of potential DER output as input into overall forecast

• Field Area Network/Field Device Management– One (or likely more) wired or wireless communication approaches for communicating

with field devices– Integration into a network operation center for communication system health monitoring – Centralized firmware and settings management for field devices

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Essential Tools for a Distribution Platform Optimizer


• Load Forecasting (Short and Long Term)– Multi scenario load forecasting with and without DER impacts– Short term operational forecasting based on weather forecast (possibly to individual

customer level)– Long term forecasts for long term capital expansion planning (likely remains at feeder

level for immediate future)

• Distribution Planning Tools– Supporting multi-scenario evaluation, incorporating DER impacts and supporting

evaluation of DER locational benefits– Likely moving to 8760 hour simulations leveraging Smart Meter/AMI data

• Meter Data Management System (MDMS) / Supplemental Smart Meter Data Repository– Repository for (some) smart meter billing data, including Validate, Estimate, Edit (VEE)– Location for non-billing related smart meter data used for supporting grid operations

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• Historian– Robust, scalable historian – Expect increasing data requirements as automation continues to increase and

unganged / individual phase control is pursued

• Analytics Platform– Support data analysis and investigation– Allows “operationalization” of data analyses

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Questions

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