Smart Grid: 

Vision, Status, Challenges

NIST VCAT Meeting9 June 2009Gaithersburg, MDSteve WidergrenSmart Grid Interoperability & Standards Coordinator, US DPrincipal Engineer, Pacific Northwest National Laboratory

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Topics

Smart grid: a vision

ScopeExamples and demonstrationsDeployment status

DOE’s smart grid programInteroperability & the GridWise Architectu

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Part I:

Smart Grid Concept, Vision, and 

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Scope of a Smart Grid

Use of digital technology to improve reliability, secuof the electric system with applications for dynamic system operations, maintenance, and planning.

Cyber Security

Regulatory Policy

Economic Environment

Principles of Operation & Intera

Interoperability

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Smart-Grid Vision

Demand-side resources participate with distribution equipment in system operation

Consumers engage to mitigate peak demand and price spikesMore throughput with existing assets reduces need for new assetsEnhances reliability by reducing disturbance impacts, local resources self-organize in response to contingenciesProvide demand-side ancillary services – supports wind in

The transmission and bulk generation resources get sm

Improve the timeliness, quality, and geographic scope of tawareness and controlBetter coordinate generation, balancing, reliability, and emUtilize high-performance computing, sophisticated sensorcoordination strategies

Bring digital intelligence & real-time communications to tran

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M

Energy Service

Retailers

Balancing 

Authorities

Distribution

Providers

Transmission

Providers

End Users:

Industrial

Commercial

Residential

Gen/Load

Wholesalers

Supporting Organizations

• Product & service suppliers• Policymakers & regulators• Policy advocates• Standards organizations• Financial community

Operational Stakeholders

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distribution

generation

Value of Demand Response

0%

20%40%60%80%

100%

0% 20% 40% 60% 8

Percentage of Year

Load Factor (%)

5%

5% = ~400 hrs/yr

75%

90%

Hourly Loads as Fraction of Peak, Sorted from H

Lower Peak Demand Reduces Infrastructure 

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25% of distribution & 10% of generation assets (transmission is simiworth 100s of billions of US dollars, are needed less than 400 hrs/ye
GridWise® Demonstration Project

Olympic Peninsula GridWise demo

Explored how consumers respond to real-time pricingTested smart appliances in 112 homes for one yearTested commercial facility integration with backup generationReal-time, two-way market with real cash incentives

Grid FriendlyTM Appliance demo

Tested device response to stress on grid and consumer acceptance of device in appliancesInstalled in 150 dryers for one year

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Olympic Peninsula Demo – Key 

Customers will respond to (~5-min.) real-time pric

Opportunity for significant savings on their electric bTechnology automates their desired level of responThey’re in control of how much to respond with ove

Significant demand response was obtained

15% reduction of peak loadUp to 50% load reduction for several days during sCan respond energy prices and T&D congestionPotential to provide regulation and other ancillary sSame signals integrate commercial loads, distribute

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Potential for Demand to Provide Regula

Regulation: fast-responding power plants move to match flu• Highest cost generation in markets 

• Zero energy sales, wear & tear, fuel consumption

• Fluctuations in wind farm output exacerbate need for reg

• Reduce cost effectiveness of wind power at high penetrations

normal fluctuations in load Dem

cap wload 

Hour

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Carbon Supply Curve Suggests Ma

Investment in Diverse Set of Resou

Cost

Real 2005 $/ton CO2e

Numerous customer-owned renewable, efficiency & process technologies become ripe investments ... if they can be incentivized and measured

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Load Shifting from Peak to Intermed

Load Duration Curve

Carbon Intensity of Marginal Plant

Peaking Combustion TurbineIntermediate Combined CycleBaseload Coal Steam

Load Duration Curve and Carbon Dispatch of a Typical C

Demand Response Saves Carbon – Even Without 

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A smart grid can deliver carbon savings

• End-use efficiency from demand response controls• Carbon savings from peak load shifting• Lower wind/solar power integration cost by regulating f• Optimize delivery system operation• Cost effective and cleaner energy for electric vehicles 

Smart Grid Delivers & Enables Carb

A smart grid can enable more, lower cost carb

• Support efficiency programs by using network to meas• Support carbon reduction from generation displaced by 

renewables

o Verification enhances value and exchange of carb

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Sample Mechanisms
Potential Impacts of High Penetration of P

Vehicles (PHEVs) on the U.S. Power Grid*

The idle capacity of today’s U.S. grid could supply 70%

of the energy needs of today’s cars, SUVs, pickup trucks, and 

without adding generation or transmissionif vehicles are managed to charge off peak

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(1

52%

Potential tnet oil impMore saledownward Reduces CEmissions smokestacheaper to 40%-90% quality emIntroduces for the grid

*PNNL study for DOE Office of Electricity

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Measuring Smart-Grid Deployment: 

Area Coordination

Dynamic pricingReal-time data sharingDistributed resource interconnection policyPolicy/regulatory progress

Distributed Energy Resources

Load participationMicrogridsDistributed generationPlug-in electric vehiclesGrid-responsive load

Delivery (T

T&D sysT&D autAdvanceAdvanceCapacity GeneratDynami

Information 

Cyber sOpen arVenture 

Indicators of smart grid deployment progress –not comprehensive measures

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Smart-Grid Trends in USA

Trend Metric AreasHigh Distributed generation, T&D automation, a

venture capital

Moderate Dynamic pricing, real-time data sharing, d

interconnection policy, policy/regulatory prsystem measurement

Low Load participation, microgrids, plug-in elec

responsive load, gen-T&D efficiencies, dyn

Nascent Cyber security, open architecture/standardFlat or slightdecline

Capacity factors, power quality

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Smart Grid Challenges

Value proposition immature

Cost: some estimate electric system upgrade needCost/benefit for delivered capabilitiesValuation of unleashed potential

Business environment & regulatory landscape

Complex regulatory environment: local, state, fede

e.g., how to encourage dynamic pricing

Risk/reward in competitive v cost-recovery environm

Interoperability

Avoid lock-in, non-competitive situation, stranded aStandards are not enoughBalance alignment with flexibility for innovation, evo

Reliability, robustness, resilience

Cyber-securitySystem stability and unintended consequences

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* Chupka et al, “Transforming America’s Power Industry: the Investment Callenge 2010-2030”, Nov 2008.

http://www.eei.org/ourissues/finance/Documents/Transforming_Americas_Power_Industry.pdf
Smart-Grid Deployment Is a Jour

Smart-grid vision aligns stakeholders toward a direAction plans need to prioritize incremental steps thacceptable return on investmentsAction plans will have regional and organizational 

Starting pointsValue propositions and preferences/prioritiesGovernment and economic/market frameworksStakeholder composition (service providers, customreliability coordinators...

Long term plans need flexibility to change

One size does not fit all

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Part II:

DOE’s Smart-Grid Program

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ARRA of 2009

New administration’s interest in smart grid nation’s energy future

Energy Secretary Chu & Commerce Secretary 

$4.3 billion in grants for smart grid project$615 million in smart grid demonstrationsAppropriates $10M to NIST for interopera

24 ARRA = American Recovery & Reinvestment Act
Overview

Competitive, merit-based solicitation; more than 1000 applicatCovers electric transmission, distribution, and customer-side aDeployment of Phasor Measurement Units (PMU) a specific pr

• $4.3 billion for the program• Expected project awards range from 

$100,000 to $5,000,000 for PMU projects; $500,000 to $20,000,000 for others 

• Funding provided for up to 50% of qualified 

investments requested by grant applicants

Anticipa

Activity 

Notice of Intent

(NOI)

Funding Opportun

Announcement

(FOA)

FOA – Round 2, if necFOA – Round 3, if nec

All Funds Obligat

Smart Grid Investment Grant Pro

Funding
Overview

• Competitive, merit-based solicitation; several hundred pro• Covers transmission, distribution, & end-use projects at a 

across the country

• Scope includes (1) regional smart grid, (2) energy storage

demonstrations 

• $615 million for the program• Applicant’s cost share must be at least 

50% of the total allowable costs

• Expect to fund: 8-12 regional 

demonstrations, 12-19 energy storage projects, and 4-5 synchrophasorprojects 

Anticipated 

Activity 

Draft Funding 

Opportunity 

Announcement

(FOA)

Funding 

Opportunity 

Announcement

Project Awards 

Smart Grid Demonstration Progra

Funding
5 Technologies to Look for in Smar

Integrated communications, connects componenarchitecture for information and control, allowing grid components to both ‘talk’ and ‘listen’Sensing and measurement technologies, supports faster and more accurate response such as remote monitoring, dynamic pricing and demand-side participationAdvanced components, applies the latest researsuperconductivity, storage, power electronics, and Advanced control methods, monitors essential cenabling rapid diagnosis and precise solutions appany eventImproved human interfaces and decision suppdecision-making, transforming grid operations & mclarity of perspective when examining complex sys
Part III:

Interoperability and the GridWise Architecture Council

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Reduce Distance to Integrate

No standard exists, requires 

completely custom integration

Interfaces can be 

transformed and/or 

mapped

Interfaces use 

a common 

model

‘Plug and Play’ standard defined

Party A 

Credit: Scott Neumann, UISol position paper
GridWise Architecture Council

Who

Respected VolunteerCross-sec

What

Principles Interopera

The Electricity Community

The future is in the linkage of sectors across 

www.gridwiseac.org
GWAC Mission - Interope

Reduced Reduced Reduced Reduced Reduced Better seMore choMore pric

• Organization/Human

– Business process– Interrelations– Issues– Policies– Communities 

• Technical/ 

(systems)

– Standards– Inter-connectivity– Compliance

• Information

– Semantics– Syntax– Data– Business 

domains 

InteroperabExpected I

All items provide comp
Context-setting Framework

Å Shared Meaning of Content Æ

Å Resource Identification Æ

Å Time Synch & Sequencing Æ

Å Security & Privacy Æ

Interoperability Categories Cross-c

Organizational

(Pragmatics)

8: Economic/Regulatory Policy

7: Business Objectives

6: Business Procedures

Informational

(Semantics)

5: Business Context

4: Semantic Understanding

Technical

(Syntax)

3: Syntactic Interoperability

2: Network Interoperability

1: Basic Connectivity
GWAC Accomplishments

Formation

Phase

Foundation

Phase

Community

Interoperability

Awareness Phas

Inte

Grid‐Interop 07

Framework v1.0

Impact

Constitution

Formation

2004 2006 2008 2010

Interface DEWGs

2012

Grid‐Interop 08

Goal: Develop

a culture for 

automation products

EISA
NIST/GWAC Collaboration

GWAC developed collaborative relationsh

Understand interoperability concepts, stakeholSupport NIST introduction to smart grid commIntegrate NIST in GWAC activities

Engage interoperability community

Propose teams to work on focused issues (from NIST forms initial working groups with GWAC 

 Industrial to Grid Building to Grid Home to Grid

 Transmission & Distribut Business & Policy Cyber Security 
DOE NIST 

Standards 

Development 

Organizations

IEC, IEEE, ASHRAE, NEMA OASIS, SAE, ISA, OMG, IETF, OPC, NAESB, ...

Interop Coordination Landscape*

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Standards 

Panel

Office of 

Electricity

SG 

Standards 

Coord.

Working 

National Groups

Labs

R&D

Organizations

NGOs: EPRI, IBM, Battelle, Lockheed, NRECA, ...State: CEC PIER, NYSERDAFederal: NIST, National LabsAcademia: PSERC, NETRAC, NSF...

Energy 

Advisory 

Committee

Standards 

Labs

Other 

Offices

Other 

Federal 

Agencies

GWAC

* Service, supplier, operator companies not included. Caveat emptor: incomplete a
Thank you

Contact

Steve Widergren

United States Department of En

Pacific Northwest National Labor

steve.widergren@pnl.gov

509-375-4556

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