MAUI SMART GRID PROJECT Hawaii Natural Energy Institute University of Hawaii at Manoa Sentech, Inc.

1. MANAGING DISTRIBUTION SYSTEM RESOURCES FOR IMPROVED SERVICE QUAILTY AND RELIABILTY, TRANSMISSION CONGESTION RELIEF, AND GRID SUPPORT FUNCTIONSor MAUI SMART GRID PROJECT Hawaii Natural Energy InstituteUniversity of Hawaii at Manoa Sentech, Inc.

2. Presentation Overview Overview of demonstration project and RDSI program Discuss key grid issues in managing renewable energy Describe Smart Grid functions demonstrated in project Summarize current project status

3. General Electric Co. recently announced it would test its ''smart grid'' technology in the luxury resort community of Wailea, hoping to reduce peak electricity consumption there by 15 percent by 2012. - Honolulu Advertiser, 10/13/09

4. MAUI SMART GRID PROJECT – Project Overview Competitively bid DOE Renewable and Distributed Systems Integration (RDSI) demonstration project RDSI is NETL R&D program focusing on distribution-level renewables and DER grid integration HNEI-led team won one out of 9 awards - 80 applicants Project total budget of $15 million from 2009-2012 • $7 million DOE funds, $8 million cost share with partners Project recently converted to stimulus funding

5. Source: DOE NETL presentation to EPRI Smart Grid Demonstration Advisory Meeting, 10/1/09

6. MAUI SMART GRID PROJECT – Project Objectives Develop and demonstrate a distribution automation solution that integrates dispatch of distribution assets and bulk power assets to achieve system-level benefits. • Reduce distribution peak loading by 15% or more • Support grid stability (regulating and spinning reserves) • Manage ramping events • Enable greater utilization of as-available renewable energy sources • Reduce curtailment • Improve service quality through integrated volt/var control • Enable consumers to better manage energy use to lower electric bills and utilize on-site renewable energy

7. DG drops offline Load shedding starts Wind Ramping Currently Creates Serious Grid Operational Issues Source: HELCO data

8. Wind Power Also Contributes to “Excess” Energy Conditions Requiring Curtailment Baseload and cycling units Wind curtailed generally off peak Wind taken on grid Time Baseload and “Must Take” units Note: Graph is an illustrative example of system operation and provided by GE Global Research Center

9. Overview of Maui Smart Grid Project Site Basic System Facts: MECO system peak load ≈ 200MW Fossil fuel and biofuel capacity = about 250 MW Kaheawa Wind plant = 30 MW Petroleum provided 77% 2007 gen Utility challenges: Limited staff and resources Limited visibility in distribution system Growing penetration of renewables

10. Project Will Demonstrate Three Smart Grid Functions to Achieve Objectives

11. Project Will Demonstrate Three Smart Grid Functions to Achieve Objectives Integrated Volt/VAr Control (IVVC) - Minimize Losses and Control Voltage Profile Equipment used: GE ENMAC DMS, MECO cap banks/LTC, PV inverters

12. Project Will Demonstrate Three Smart Grid Functions to Achieve Objectives Demand Management - Optimize consumption and enable direct load control Equipment used: GE Smart Meters, GE Home Energy Manager/Smart Appliances, HECO Load Control “Energy Scout” equipment, GE ENMAC DMS

13. Demand Management will Help Reduce Load and Manage Renewables

14. HECO Recently Used Responsive Loads to Manage System Peak October 7, 2009 – System peak w/o load control 1260 MW at 6:49 PM Source: HECO data

15. HECO Recently Used Responsive Loads to Manage System Peak Controllable loads shift demand by almost 60 minutes October 8, 2009 – System peak w/ load control 1240 MW at 6:50 PM Source: HECO data

16. HECO Temporarily Shut Off Water Heaters and AC Units for “EnergyScout” Customers Approx. 10 MW of load reduction Source: HECO data

17. Demand Response Can Potentially Help Bridge Gapto Bringing New Generating Units Online Time lag between wind ramp and new unit Source: HELCO data

18. Project Will Demonstrate Three Smart Grid Functions to Achieve Objectives Distributed Energy Resources (DER) Management - Provide MECO greater visibility in dist-level resources Equipment used: GE Smart Meters, PV inverters, Wind forecast module

19. Solar Resource Even More Variable than Wind Source: NREL Solar Resource and Meteorological Assessment Project

20. Combining Resources Adds Complexity Wind and solar ramps coincident with AM load increase Source: NREL Solar Resource and Meteorological Assessment Project

21. MAUI SMART GRID PROJECT – Project Objectives

22. MAUI SMART GRID PROJECT – Technical Challenges Develop a general Smart Grid architecture that: Incorporates legacy equipment (with proprietary protocols) Avoids overwhelming or reducing control capabilities of the system dispatcher Integrates system components with secure communications systems

23. MAUI SMART GRID PROJECT – Successes to date Identified demonstration site after original substation construction was delayed due to economic downturn Data collection and model development Progress on architecture design – cooperation of utility (planning, operations, customer services), customers, independent power producers, vendors • HNEI is moderator / referee • Nobody sent to the penalty box for fighting yet • We are indeed arriving at a solution that meets all stakeholders’ objectives

24. MAUI SMART GRID PROJECT – Where are we now? Planning Stage Nearing Finish • Selecting functions, feeders, substations, customer premises, communications • Choosing equipment and integration/interconnection points Design Stage in Progress • Smart Grid architecture and control hierarchy • Information flows and communication links • Functional specification of the demonstration • Incorporating MECO and HECO demand response, AMI, AGC, etc. functions Product Development Starting • Adapting existing equipment, applications (e.g., ENMAC, IVVC) • Developing and validating feeder models • Beginning development of one of the residential responsive load options – GE Residential Energy Management optimizer with smart appliances

25. MAUI SMART GRID PROJECT Thank You Any Questions? MAUI SMART GRID PROJECT Hawaii Natural Energy InstituteUniversity of Hawaii at Manoa Sentech, Inc.