The US and Russia Getting “S marter ” : Russian-American Smart Grid Partnership Initiative

1. The US and Russia Getting “Smarter”: Russian-American Smart Grid Partnership Initiative Grigoriy Shchennikov Nelson Zhao Tatiana Popova Thankie Yuan Shi

2. Growing consumption – a challenge for the grid World electricityconsumption GDP per capita (current US$) Population, total Consumption per capita Source: World Bank Source: Enerdata

3. Existing grid One-way flow electricity • Centralized, bulk generation, mainly coal and natural gas • Responsible for 40% of human-caused CO2 production • Limited automation and situational awareness • Lack of customer-side data to manage and reduce energy use Source: IEA

4. Evolution from traditional to smart grid

5. Smart Grid Successful Partnerships • Korea – leader in the area of the smart grid technologies • State of Illinois - advanced research capabilities at national labs and universities • sister-state agreement between the Jeju Special Self-Governing Province and the State of Illinois • Additional project opportunities - smart buildings, smart transportation, • smart communities, and R&D. Dignitaries in Illinois and South Korea have numerously affirmed the mutual benefits of this model partnership for smart grid collaboration

6. Smart Grid Partnerships May, 2011 - Memorandum of Understanding • Areas of cooperation: • AMI smart meters • distribution automation • best practices in business processes • creation of smart grid innovation cluster • supportive government policies to promote smart grid • exchange of technical information and experiential data

7. Slowdown in the development of the partnership

8. Fundamental ChangesPt. 1: Russian Policy Recommendations • Market suspicion • End-result Uncertainty Clear motivations and incentives are needed for reform. Why?

9. Fundamental ChangesPt. 1: Russian Policy Recommendations (Cont.) • New smart grid outreach and consumer awareness program • i.e., An absence of reliable standards for conducting energy savings contracts • Residential communities just aren’t shown the benefits of smart grid technologies • Risks for consumers AND public service providers • That leads to overall mistrust of energy companies and lack of local community support Standardize implementation rules and regulations!

10. Fundamental ChangesPt. 2: U.S. Policy Recommendations • Why should we support grid modernization? What benefits come with this? • …. How much more do I have to pay? • Must define key value areas • Reliability? Efficiency? Safety? Etc. Policy-makers need a compelling value proposition for consumers

11. Fundamental ChangesPt. 2: U.S. Policy Recommendations (Cont.) • Better coordination among federal, state, and local regulators Define set smart grid performance goals for all 3 levels of government

12. The Next Sister City The Smart Grid Maturity Model • Provides a framework for understanding the current state of you smart grid deployment and capability. • Assesses how mature your utility’s smart grid is. • Identifies gaps that need to be filled and helps make a strategic plan • Domains Levels

13. Glendale Water and Power San Diego Gas and Electric