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West Virginia Smart Grid Implementation Plan Preliminary Results

West Virginia Smart Grid Implementation Plan Preliminary Results. Steve Bossart Director, Integrated Electric Power Systems Office of Systems Analysis and Planning. The West Virginia Smart Grid Implementation Plan is the first state-wide Smart Grid strategy in the nation!

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West Virginia Smart Grid Implementation Plan Preliminary Results

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  1. West Virginia Smart Grid Implementation Plan Preliminary Results Steve Bossart Director, Integrated Electric Power SystemsOffice of Systems Analysis and Planning

  2. The West Virginia Smart Grid Implementation Plan is the first state-wide Smart Grid strategy in the nation! It is only the second publicly available Smart Grid strategy document.

  3. Smart Grid & West Virginia Connection • This plan used the NETL Modern Grid Strategy (MGS) vision for the Smart Grid • In June 2008, this NETL MGS vision became the Smart Grid vision for the nation • Senator Byrd influenced Congress to fund the original research and vision development (2005-07) • The MGS team in West Virginia has been at the center of the Smart Grid debate for the last 4 years

  4. Smart Grid Vision Principal Characteristics of a Smart Grid: • Enable active participation by consumers • Accommodate all generation and storage options • Enable new products, services, and markets • Optimize asset utilization and operate efficiently • Provide power quality for the digital economy • Operate resiliently against attack and natural disaster • Anticipate & respond to system disturbances (self-heal)

  5. Smart Grid Vision Perform in relation to the KSFs •  Reliable •  Secure •  Economic •  Efficient •  Environmentally friendly •  Safe •  Enable active participation by consumers •  Accommodate all generation and storage options •  Enable new products, services, and markets •  Provide power quality for the digital economy •  Optimize asset utilization and operate efficiently •  Anticipate & respond to system disturbances (self-heal) •  Operate resiliently against attack and natural disaster Metrics in relation to the KSFs •  Integrated communications •  Sensors and measurements •  Advanced control methods •  Advanced components •  Improved interface and decision support

  6. $540K project jointly funded through Attachment H process by NETL, RDS, Allegheny Power, AEP, State of West Virginia, WVU, and DOE OE Results will describe approach and value proposition of implementing Smart Grid in West Virginia Cost & benefit analysis comparing the state of current electricity grid and future Smart Grid in West Virginia Address the role of coal in Smart Grid Support economic development in State of West Virginia Only state-wide Smart Grid implementation plan Establishes West Virginia and NETL as leader in Smart Grid Only second Smart Grid study to be published West Virginia Smart Grid Implementation Plan

  7. Implementation Plan Process

  8. WV Future State

  9. WV Future State (cont.)

  10. WV Future State (cont.)

  11. Smart Grid Solutions for WV

  12. PreliminaryBusiness Case Results • Still working on refining the business case, but in general terms…… • NPV Cost: $1.4B - $1.7B • NPV Benefits: yielding a 2:1 to 3.5:1 value • The team has taken many conservative approaches to the calculation of benefits, and expect the actual results that WV will see several years from now, will be even greater.

  13. Benefits • Utilities • Operational Metering & billing, outage & work force management, reduced energy losses, optimize asset utilization • Asset Management System planning, maintenance • Consumer • Reduced business loss, information access, energy management, participate in DR programs, connection of DG and storage, participate in electricity markets, reduce transportation costs • Societal • Downward pressure of electricity prices, reduced emissions, economic development, improved reliability, improved grid security, revolutionize transportation sector, reduced dependence on foreign oil

  14. Implementation Plan Summary 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 AMI (may extend for AEP) IT Integration Demand Response Distribution Mgmt System Distributed Energy Resources RD&D

  15. Development and Demonstration • AMI Pilot – It exercises a small number of AMI meters from the chosen vendor using the Meter Data Management System (MDMS) in a minimally-integrated role. The pilot allows the utility to test the communication infrastructure, messaging, and data collection against requirements. • Demand Response Pilot – A small number of load management Demand Resources are deployed and tested. The pilot allows the utility to test DR program rules, business rules for load management, economic and reliability message requests and their load management results, expected vs. actual load management results, in home device results, and participant behavioral patterns.

  16. Development and Demonstration (cont.) • Distributed Energy Resource Pilot – The DER pilot allows the utility to test generation management (rather than load management) and occurs during a similar timeline in the overall DR and DER implementation solution schedule. • Distribution Management System Pilot – With the DMS system, it is likely that several different devices and strategies will be used over time. The pilot is not anticipated to test everything, but rather provide a simple, baseline system that allows the DMS enterprise systems an opportunity for testing and experimentation.

  17. Conclusions • There are gaps in technology, regulation, and consumer preparedness that are necessary to address to realize the benefits of the Smart Grid in WV. • The five Smart Grid solutions presented working together will generate benefits to WV that far exceed the cost of implementation and operations of these solutions. • The implementation of a Smart Grid in WV will take about 8 years. • It is prudent to begin immediately with pilot projects for AMI, DR, DER, and DMS to reduce the risks of the larger state-wide deployment.

  18. How This Project Will Be Used • Basis for discussion within the state • Division of Energy • Public Service Commission • Economic Development • Utilities • Consumer and environmental groups • Legislators • Reference for policy change • Reference for business case development in rate-making and creation of incentives for change

  19. Contact Information For additional information, contact Modern Grid Strategy Team http://www.netl.doe.gov/moderngrid/ 304-599-4273 x101

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