Office of Electricity Delivery & Energy Reliability U.S. Department of Energy – 1000 Independence Ave., SW Washington, DC 20585

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• 2nd International Conference on
• Integration of Renewable and Distributed Energy
  Resources
• Integration of Renewable and Distributed Energy
  Resources - U.S. Progress and Perspectives
• December 5, 2006
• Patricia Hoffman
• RD Division

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U.S. Energy Infrastructure

• 157,810 Miles of Electrical Transmission lines
• 16,756 Generators 948,446 Megawatts (net summer
  capacity)
• Over 3,100 Electric Utilities, with 131 million
  customers

• 2,000,000 Miles of Oil Pipelines
• 1,300,000 Miles of Gas Pipelines
• 2,000 Petroleum Terminals
• 1,000,000 Wells
• Extensive Ports, Refineries, Transportation, and
  LNG Facilities

Source EIA
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Electric Reliability A National Concern
Outages and Power Quality Disturbances Cost the
U.S. 79B Annually
LBNL Base-Case Estimate of the Cost of Power
Interruptions by Types of Interruption
Frequency of Outages and Disturbances
26 Billion
52 Billion

Interruptions lasting five minutes or less are
considered momentary interruptions.
Source LaCommare, Kristina Hamachi and Eto,
Joseph H. Understanding the Cost of Power
Interruptions to U.S. Electricity Consumers.
(Accessed May 19,2005).
Source NERC Systems Disturbance Reports,
1992-2003.
Public Interest at Risk

• Productivity of businesses and industry
• Costs to states and local governments

• Reliable electric service
• Costs of manufactured goods

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Grid Modernization A National Priority

• We have modern interstate grids for our phone
  lines and our highways. It's time for America to
  build a modern electricity grid.
• President George W. Bush
• April 27, 2005
• and now also a Congressional priority due to
  the Energy Policy Act of 2005

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Advanced Energy Initiative

• Advanced Energy Initiative Goals Powering Our
  Homes and Businesses
• Complete the Presidents commitment to 2
  billion in clean coal technology research
  funding, and move the resulting innovations into
  the marketplace.
• Develop a new Global Nuclear Energy Partnership
  (GNEP) to address spent nuclear fuel, eliminate
  proliferation risks, and expand the promise of
  clean, reliable, and affordable nuclear energy.
• Reduce the cost of solar photovoltaic
  technologies so that they become cost-competitive
  by 2015, and expand access to wind energy through
  technology.

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Key EPACT 2005 Provisions

• Title IX Research and Development
• Subtitle B Distributed Energy and Electric
  Energy Systems
• Section 925 Electric TD Programs RDD
• Title XII - Electricity
• Subtitle A Reliability Standards Electric
  Reliability Organization
• Subtitle B Transmission Infrastructure
  Modernization
• Section 1221 Designation of National Interest
  Electric Transmission Corridors
• Subtitle E Amendments to PURPA
• Section 1252 Smart Metering and Demand Response
  
• Title XVIII Studies
• Section 1817 Study of Distributed Generation

DG Benefits DRAFT Due 02/08/07
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Areas of Transmission Congestion
EPACT Section 1221
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EPACT Section 1252 (f)

• Federal Encouragement of Demand Response
• It is the policy of the United States that
  time-based pricing and other forms of demand
  response.shall be encouraged, the deployment of
  such technology and devices.shall be
  facilitated, and unnecessary barriers to demand
  response participation in energy, capacity and
  ancillary service markets shall be eliminated.

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DOE Report to Congress - Benefits of Demand
Response

• Identifies DR Benefits
• DOE reviewed 10 recent studies and concluded
• Lack of standardized and accepted analytic
  methods
• Preferable to quantify DR benefits at
  state/regional level (rather than national)
  because tied directly to local system conditions
  and market structure
• Includes Policy Recommendations in Six Areas
• Fostering Price-based Demand Response
• Improving Incentive-based DR Programs
• Strengthening DR Analysis and Valuation
• Integrating DR into Resource Planning
• Increased Adoption of Enabling Technologies
• Enhancing Federal Demand Response Actions

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DOE Report to Congress - Benefits of Distributed
Generation

• Identifies Potential DG Benefits, for
• Electric system reliability
• Ancillary services
• Power quality
• Critical infrastructure protection
• Land use impacts
• Identifies Rate Related Impediments
• Discusses Methodologies for Evaluating DG

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EPACT Title XVII Incentives for Innovative
Technologies

• A New DOE Loan Guarantee Program for projects
  that
• avoid, reduce, or sequester air pollutants of
  anthropogenic emissions of greenhouse gases and
  employ new or significantly improved technologies
  compared to commercial technologies in service at
  the time the guarantee is issued
• Eligible Projects
• Renewable energy systems
• Advanced fossil energy (including coal
  gasification)
• Advanced nuclear
• Carbon capture and sequestration
• Efficient electric generation, TD
• Efficient end-use technologies
• Production facilities for fuel efficient vehicles
• Pollution control equipment
• Refineries of crude oil to gasoline

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Office of Electricity Delivery and Energy
Reliability
Office of the Director
Resource Management Staff
Site Office
Permitting, Siting, Analysis (PSA)
Infrastructure Security Emergency Response
(ISER)
Research Development (RD)

• Visualization and Controls
• High Temperature Superconductivity
• Energy Storage and Power Electronics
• Distributed Systems Integration

• Modeling and Analysis
• Electric Markets Technical Assistance
• Electricity Exports/ Presidential Permits
• Power Marketing Administration Liaison

• Energy Infrastructure Protection
• State/Local Govt Partnerships
• Training and Exercises
• Visualization
• Critical/Vulnerability Assessment
• Emergency response support

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Our Goal A Resilient Electric Grid
Grid Reliability
Grid Security
Resiliency
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Distributed Systems Integration

• Involves development of advanced operational
  controls for greater interoperability and the
  seamless integration of distributed systems
  (generation and storage) with electric grid
  planning and operations
• Includes research, development, field testing,
  and demonstration of distributed systems for
  demand response and ancillary services
• Provides energy solutions for utilities,
  customers, and local energy systems such as
  district energy, power parks, and microgrids

• Benefits
• Increases grid reliability
• Addresses vulnerability of critical
  infrastructure
• Helps manage peak loads and defers TD investment
• Lowers emissions and utilizes fuel resources more
  efficiently
• Helps customers manage energy costs

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Distributed Systems Integration
Potential Benefits from Integration of RE, DE,
and DR
Southern California Edison - Justice Circuit
Source Gas Technology Institute
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Microgrids A Potential Solution
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Power Electronics A Key Technology

• More precise and rapid switching of
  long-distance power transmission
• Faster response and better voltage support for
  local distribution
• Seamless integration of wind, solar, and other
  distributed energy systems

Utility
Military
Hybrid Electric Vehicles
Industrial
Motor Drives
Ships
Generator
Current (A)
Consumer Products
Aerospace
More SiC
More Si
10k
1k
100k
Voltage (V)
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Energy Storage A Key Technology
Lower-cost storage could revolutionize grid
planning and operations for renewable and
distributed energy

• Benefits
• Increases grid reliability
• Reduces system transmission congestion
• Helps manage peak loads
• Makes renewable electricity sources more
  dispatchable

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Example CEC/DOE Energy Storage Project

• 450 kW Ultra-Capacitors to provide Wind Smoothing
  and Backup Power for the Palmdale, CA Water
  Treatment Plant
• 1.25 MW Microgrid

The Palmdale, CA Treatment Plant

GENERATION 950 kW Wind Turbine (Average!) 2
x 225 kW Energy Bridge Ultracaps 800 kW 350kW
Backup Diesel 250 kW Natural Gas Backup
Generator 244 kW Hydroelectric Generator LOAD
320 kW Critical Load 930 kW Non-critical Load
Commissioning Feb. 2007 Evaluation Feb. 2008
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Communications Architecture
Mission Interoperability
Interoperable Software - Expected Grid Impact

• Organization/Human
• Business process
• Interrelations
• Issues
• Policies
• Communities

• Reduces cost to operate
• Reduces capital IT cost
• Reduces cost to upgrade
• Reduces security management cost
• Reduces integration cost
• Reduces cost to introduce a new installation
• Provides more choice in products
• Delivers more price points and feature sets

• Technical
• Standards
• Inter-connectivity
• Compliance

• Information
• Semantics
• Syntax
• Data
• Business domains

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Example Modern Grid InitiativeDevelopmental
Field Test (DFT)

• Performers/partners
• Technology Partners Softswitch (PQ
  monitoring)other vendor products being
  determined
• Utility Partners Allegheny Energy and AEP
• Issues/concerns
• Several DFT phases are needed to complete
  integration testing
• An integrated team work is critical to success

Objective Test the integration of multiple
technologies working together in a complex mesh
of operations, analysis, alerting, and autonomous
decision-making
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Public-Private Partnerships
A Key Strategic Path to Progress on RE and DE
Integration in the U.S.

• Utilities
• Investor-Owned
• Public Power
• Cooperatives
• Federal
• Equipment Manufacturers
• State Agencies
• Trade Associations
• Professional Societies
• Universities
• National Labs

• Cost-shared RDD
• Regional planning and collaboration
• Information sharing

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OE-EE Wind Integration Initiative
By 2009, three high efficiency transmission
technology links will be proposed between
remote, low cost wind power and urban load
centers, providing affordable, clean energy to
millions of American homes and businesses
VISION

• MISSION
• To work in targeted regions with the electricity
  industry, its regulators and stakeholders
• to accomplish the following objectives by 2008
• Education/Outreach Enroll target audiences
  to fulfill vision
• Technology Assure system planners have and
  use state of the art forecasting models
• Policy Encourage policies to level playing
  field and build needed transmission
• Market Analysis Complete integration studies
  in targeted regions

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OE-EE Wind Integration Target Areas
MISO 2 yr
BPA 1-2 yr
WESTERN 2-3 yr
PJM 1 yr
SPP- 5 yr

• Together Western, MISO and BPA have wind
  resource potential gt 1 Million MW
• Barriers in all three regions must be addressed
  to get GT built
• PJM provides market leadership, access to
  largest load centers

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For More Information

• Office of Electricity Delivery and Energy
  Reliabilitys website
• www.electricity.doe.gov