DOEs Grid Modernization Activities Potential Roles for Equipment Manufacturers

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DOEs Grid Modernization Activities Potential
Roles for Equipment Manufacturers
National Electrical Manufacturers Association

• William Parks
• Office of Electricity and Energy Assurance

March 17, 2005
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Weve Changed!
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Office of Electricity and Energy Assurance

• Mission
• The mission of the Office of Electricity and
  Energy Assurance is to lead national efforts to
  modernize the electric grid, increase grid
  capacity and reliability, and strengthen energy
  infrastructure security.

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Organizational Structure
Office of the Director
Resource Management Staff
Permitting, Siting, Analysis
Infrastructure Security Emergency Response
Research Development

• Transmission Reliability
• Electric Distribution Transformation
• Electricity Storage
• Superconductivity
• GridWorks
• GridWise
• Infrastructure security technology
• Visualization and Decision Analysis Tools

• 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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Grid Modernization A National Energy Priority

• Transmission lines and pipe lines and generating
  facilities are deteriorating. Different regions
  share electricity over unreliable transmission
  lines. These strains on the system lead to higher
  prices and they lead to bottlenecks in delivery.
  we've got modern interstate grids for phone
  we've got a modern connection with our highways
  America needs a modern electricity grid, too, in
  order to make sure that we can compete in a
  global economy
• March 9, 2005
• To keep our economy growing, we also need
  reliable supplies of affordable, environmentally
  responsible energy. Nearly four years ago, I
  submitted a comprehensive energy strategy that
  encourages conservation, alternative sources, a
  modernized electricity grid and more production
  here at home, including safe, clean nuclear
  energy.
• State-of-the-Union Address, February 2, 2005
• Consumers and businesses need reliable supplies
  of energy to make our economy run -- so I urge
  you to pass legislation to modernize our
  electricity system, promote conservation, and
  make America less dependent on foreign sources of
  energy.
• State-of-the-Union Address, January 20, 2004
• it's clear that the power grid needs an
  overhaul. It needs to be modernized. As we go
  into an exciting new period of American history,
  we want the most modern electricity grid for our
  people we need more investment we need research
  and development
• September 15, 2003
• President George W. Bush

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Outage Costs to the Nation
Selected 2004 Reliability Events
May 17, 04 Multiple power outages affect
Michigan- Indiana Border
May 27, 04 Schools closed by power outage in
Detroit, Michigan
May 31, 04 Power outages causes fire at
hospital, school in Illinois
June 3, 04 Over 400,000 without power in Texas
May 12, 04 Tree limbs cut off power to 31k in
Utah
August 16, 04 800,000 lose power in Hurricane
Charley
April 29, 04 200k lose power in Washington
State
Outages are widespread, frequent, and costly to
the economy
October 29, 04 60,000 lose power in San
Francisco, California
January 31, 05 60,000 lose power in
Jacksonville
January 19, 05 25,000 without power in
California
November 5, 04 35,000 in DC area lose power
November 2, 04 Over 280,000 lose power in
Michigan
Recent LBNL study estimates annual costs from
outages at 80 Billion
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Grid Modernization Issues

• Need greater regulatory certainty at the Federal,
  regional, and state levels (e.g., restructuring,
  siting, and permitting)
• Need to attract more investment and develop new
  technologies for upgrading aging electric
  delivery infrastructure and equipment
• Need mandatory and enforceable national electric
  reliability standards
• Need to relieve constraints in power flows and
  supplies
• Need to strengthen regional entities for
  streamlined planning and more efficient market
  operations

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Grid Modernization Benefits

• Improves electric reliability and lowers outage
  costs to consumers
• Strengthens energy security and lowers financial
  risks to utilities from terrorism
• Promotes investment in infrastructure, jobs
  creation, and regional economic growth
• Enables greater development of alternative energy
  sources (e.g., wind, nuclear)
• Increases energy efficiency and lessens
  environmental impacts

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Grid Modernization and Electric Reliability
Strategies

• Prevention keep problems from occurring
• Detection ready for immediate action
• Response proper tool kits for any
  contingency
• Modernization next generation of grid
  technologies and partnerships for market
  integration

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Portfolio of Technologies
HTS tape to HTS cable
Novel storage concept
Diamond Sensor
Advanced Conductors
Smart Controller
Superconducting Substation
2kWh Superconductor Flywheel Demonstrator
ETO DC to AC inverters
Interconnection Device
Eastern Interconnection Phasor Project
Supervar System
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Partnerships for Market Integration (Recent
Examples)

• IEEE 1547 Standards for interconnecting
  distributed energy systems with the grid
• New England Demand Response Initiative
• Mid-Atlantic Demand Response Initiative
• PJM Interconnection Implementing IEEE 1547 in
  Mid-Atlantic states
• Pre-certification of Distributed Generation
• NRECA
• NARUC
• USCHPA
• FERC

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Mechanisms for Participation

• Planning help determine future priorities and
  advanced technology needs of the grid
• Implementation support research, development,
  and demonstration of advanced transmission and
  distribution technologies and appropriate
  electricity legislation
• Evaluation provide feedback on the
  effectiveness of RDD activities and new
  technologies

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Planning
Help determine future priorities and advanced
technology needs of the grid
National Electricity Roadmap

• Participate in RDD planning workshops and
  webcasts
• Provide feedback on program plans and office
  documents
• Stay abreast of office activities by visiting the
  office website often
• Be cognizant of pertinent energy-related
  legislation

120 Organizations participated
Program Plans
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Implementation
Support research, development, and demonstrations
of advanced transmission and distribution
technologies and appropriate electricity
legislation

• Participate in solicitations
• Upcoming GridWise/ GridWorks solicitation
• Develop advanced technologies
• Partner with utilities to field test the latest
  technologies
• Electric reliability legislation

Utility Organizations

Equipment Manufacturers
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Energy Legislation Electricity Title (e.g. HR6)

• Most urgent Create legal foundation for
  mandatory and enforceable national electric
  reliability standards
• Establish FERC jurisdiction for reliability
• Establish ERO to develop technically sound
  standards
• Either ERO or FERC can enforce standards
• Provide technical support to FERC and ERO
• Facilitate grid investment by reducing siting,
  permitting, and cost recovery uncertainties
• Designate National Interest Electric
  Transmission Corridors
• Corridor designation required for FERC exercise
  of backstop authority
• Coordinate federal review of TD projects, if
  applicant requests
• Support regional transmission plans, siting
  protocols, and cost allocation plans
• Other provisions
• Authorize OE and RDD programs
• Increase use of demand response report on real
  time transmission system monitoring projects,
  study benefits of economic dispatch

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Evaluation
Provide feedback on the effectiveness of RDD
activities and new technologies

• Provide feedback about new technologies
• Participate in peer review workshops
• Work to identify vulnerable components of the
  electric grid

Electric Distribution Transformation FY04 Annual
Program and Peer Review Meeting
2004 Transmission Reliability Program Peer Review
Superconductivity for Electric Systems 2004
Annual Peer Review
Energy Storage Systems 2004 Annual Peer Review
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Public-Private Partnerships

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

DOE cant do it alone Making connections with
partners is crucial for success
For the latest updates on the office merger and
other news, check the following websites
www.electricity.doe.gov and www.ea.doe.gov