An Intelligent Future

Utility companies are fast adopting smart grid technology as the future of customer operations. Sharon Allan of Accenture, Mae Squier-Dow of CURRENT Group and Lee Ayers of OSIsoft discuss the future of smart grid.

“The goal is a seamless, end-to-end view of the data - from generation to meter”
-Lee Ayers, OSIsoft

Various definitions of smart grid exist within the utilities sector. What is your definition?
Mae Squier-Dow. A smart grid uses high-performance communications, advanced sensing and enterprise analysis to transform the existing electric grid into dynamic self-healing, self-optimizing distribution system.  Because critical grid events often require real-time recognition and response, a smart grid solution uses IP-based, open standard, low latency communications to measure real-time events – such as load and congestion, system stability, equipment health, outages and demand response events – and to link these events with the appropriate responses to improve the efficiency and reliability of the entire distribution grid.
A fully functional smart grid employs widely distributed intelligent sensors to collect and analyze data from throughout the distribution system. The true situational awareness of a smart grid comes from extracting meaningful information that the utility or its customers can act on, such as actionable intelligence, in the time frame necessary to achieve the desired result. As the smart grid develops many of these actions will become further automated enabling a more dynamic, self-adjusting grid.

Sharon Allan. Based on Accenture’s involvement with several dozen smart grid projects around the world, we have developed a definition that we use as a basis for common understanding across our client base. Our point of view is that a smart grid is one that leverages sensing, embedded processing, digital communications, and software to manage network-derived information, thus helping utilities to achieve high performance.  A smart grid is: observable (able to measure the states of all grid elements), controllable (able to affect the state of any grid element), automated (able to adapt and self-heal) and integrated (fully connected to utility processes and systems).

These capabilities support the three major business functions of the transmission and distribution utility: power delivery, asset management and customer experience enablement. 

Lee Ayers. ‘Smart grid’ means modernizing transmission and distribution grids to facilitate competition between providers; to enable use of variable energy sources, especially renewables; to create automation and monitoring capabilities for bulk transmission at transcontinental distances; and to enable market forces to drive energy conservation and compliance. 

The first step to a smart grid is being able to see the grid. It involves collecting millions of data points in real time, and analyzing and displaying them so they become actionable rather than overwhelming. This requires integrating generation, transmission, distribution and meter data management into a single system. The typical utility has an asset infrastructure to handle peak loads. Rather than load-following, a smart grid boils down to load-shaping with a dynamic, two-way market play between utility and customer. Models not embracing dynamic market interaction with the customer, but improved automation (better outage detection and CAIDI, SAIDI and SAIFI numbers) are not smart grid applications. The smart grid model is similar to what we see at an ISO – a forecast; costs related to production and delivery of service; to these we add customer preferences, environmental considerations, deferred capital expenses, and pricing.

What benefits will the smart grid provide, both in the short and long term?
SA. Accenture believes the smart grid is a key component in the global quest for carbon neutrality and a more reliable, secure energy future.  In the short term, the transformation to a bi-directional flow of data from intelligent devices capable of remote monitoring, near real-time data and optimized performance will help improve overall grid reliability and efficiency. This, in turn, can reduce the number of customer minutes out as a result of improvements in predicting or even avoiding potential outages. In the long term, we believe there is compelling evidence to support achievement of long-term benefits through reductions in residential peak demand energy consumption by leveraging real-time pricing signals, working in combination with in-home energy management technologies. Additional reductions in peak demand can be expected through integration of distributed generation technologies, which also have the potential to lower carbon emissions. Another key benefit will come through an enhanced customer experience as consumers receive the information and tools they need to fully understand, monitor and automate their energy use. 

LA. When businesses and consumers see savings from energy efficiencies, they include energy cost into decisions. As market forces level the load curve, this will reduce the spinning reserve that utilities need to keep on stand-by.

The smart grid can enable increased energy sustainability, reduced carbon intensity and encourage adoption of green energy technologies; enable increased customer satisfaction and customer participation in the power delivery chain; increase effective system capacity; bring difficult-to-quantify, but nevertheless real strategic benefits to Xcel Energy and other utilities/energy providers; enable improved utility operational efficiency; support enhancement of power quality, reliability and system performance; and support advanced utility asset management and system planning.

MS-D. While there are numerous benefits to a smart grid, the three most significant are optimizing the distribution system by delivering only the power needed in the most efficient manner from the substation to the home, resulting in precise dispatch of megawatts with precision and control on a persistent and critical peak basis; increased visibility to the use of renewable energy resources, including the integration of distributed generation into the existing grid; and improved operations and reliability by automating the operations of the electric distribution network and providing critical information about the condition of deployed assets.

How did you get involved in the Smart Grid City project in Boulder?  What technology is your company contributing?
LA. During design of Xcel Energy’s SmartGridCity (SGC) it became obvious they needed a robust, scalable, mission critical infrastructure for collecting, analyzing and presenting data; Xcel Management contacted OSIsoft about the PI System.
   
The PI System, with over 15,000 installs, provides utilities with a secure, real time enterprise infrastructure for smart grid operations. It spans generation, transmission, distribution and meter data management. Three decades of performance across millions of utility data streams has fortified PI to meet the massive demands of smart grid applications – demand response, distributed generation integration, renewable resource management, advanced distribution monitoring and control. 

Unique at Xcel, OSIsoft is delivering a PI operational data management system (PI-ODMS) that blends validated AMI data with operating and non-operating data, plus data sources such as wind, forecast data for distributed energy resources and real-time calculations.

The goal is a seamless, end-to-end view of the data – from generation to meter. Xcel Energy’s SGC PI-ODMS server will handle one million points – all expected inputs.

OSIsoft is delivering dynamic graphics for four area substations (SEL) and working with Accenture to deliver our Microsoft SharePoint WebParts, including a Microsoft Virtual Earth WebPart for distribution graphics and metrics. All OSIsoft graphics and deliverables use a Common Information Model (CIM) hierarchy.

SA. Accenture has been working with Xcel Energy on this project since the initial discussions began over two and a half years ago concerning the possibilities for reducing carbon emissions and achieving greater sustainability. Accenture is responsible for three key components of the SmartGridCity project. One, we are the strategic advisor and consulting chief engineer for the overall initiative. Two, we are the systems integrator, providing the smart grid management integration platform using our patent-pending intelligent network data enterprise solution set, which includes the reference architecture, data transport and storage architecture, end user transactional analytics and blueprint for smart grid development. Three, we are providing expertise to help with the marketing of the program to energy consumers in the city and country of Boulder as well as to regulators and other key stakeholders. 

MS-D. Xcel Energy’s SmartGridCity in Boulder, Colorado utilizes the fully integrated CURRENT OpenGrid platform that combines advanced sensing technology, two-way low-latency IP communications, and enterprise analysis software and related services. This provides location-specific, real-time data about the status of the city’s electric grid.  CURRENT’s sensors are widely deployed in Boulder and connected by a variety of high performance communication technologies including fiber, DSL, 3G wireless and broadband over power line. Xcel Energy is already benefiting from CURRENT’s system by preventing customer affecting outages and reducing outage repair times. Field crews have access to the system on portable computers and have visibility to the performance of neighboring assets when responding to trouble calls. Xcel Energy and CURRENT are presently implementing CURRENT’s fully integrated Volt/VAR control to improve the utility’s regulation of voltage and power factor, while optimizing system efficiency from the reduction of losses and erratic voltages associated with reactive current flow.

How do you believe the smart grid will develop in the future?
MS-D. We believe that ultimately the high value benefits of the smart grid will come from making the grid itself more efficient, which will ultimately result in lower costs for the utility and its consumers, and will benefit the environment through reduced greenhouse gas emissions. High performance communications and instantaneous response will be increasingly critical as the grid becomes more dynamic, more intermittent renewables are used for generation and widespread distributed energy sources such as residential and commercial solar panels, wind sources and plug-in hybrid vehicles gain market acceptance. Much like the internet, new applications will be developed which will leverage the communications and sensing to further improve the way electricity is generated, delivered and used

SA. Our perspective is that there will be far greater integration of information throughout the power grid than there is today and that this intelligent, actionable information will be the key to the success of the energy grid of the future. Like industries that have evolved from a primarily non-communicative state to a highly networked state, the smart grid will result in more automated analytics and control as information and communication infrastructure facilitates the ability to not only collect information, but also to analyze and act upon it. Some technologies that can be leveraged to support the characteristics of a more intelligent grid are available today. Others are emerging and will be developed over time to provide higher levels of functionality at a lower cost.

What’s important, in our view, is that utilities on the road to a smarter grid approach their journey with a road map that helps ensure that whatever technologies they select are compatible and that the evolution to new systems can be achieved efficiently and economically. Intelligent network technologies will require end-to-end integration and compatibility. Having a concise picture of technology and business requirements will reduce the risk of incompatibility or obsolescence. 

LA. End-to-end visibility of the business will become the norm. Inappropriate technologies for the old market model may be rebranded as smart grid offerings but the hardened project approach will be seen for what it is – a costly endeavor usually outdated by installation.
   
Utilities will take less of a project approach to integration and look at how systems can be quickly integrated with standard product like PI. Less project, more product will become standard.

Other innovations will be in smart grid data centers; a critical infrastructure around data management for upwards of 100 million points; and enhanced substation metrics to serve as report cards for how efficiently the smart grid is functioning.

The Panel:

Mae Squier-Dow is SVP of Business Solutions for CURRENT Group. In this role, she is responsible for the global promotion, development, delivery and support of CURRENT’s smart grid solutions to utility customers through its utilities solutions and professional services groups. Prior to joining CURRENT Group, Squier-Dow was the President of Network Services for One Communications and the Chief Operating Officer of Choice One Communications.

Sharon Allan is responsible for the North American smart grid offering in Accenture’s utility transmission and distribution practice. She has 25 years of executive and management experience in the technology services industry. Immediately prior to joining Accenture, Allan was president of Elster Integrated Solutions, and she has also held key positions at other technology and sciences-based products companies.

Lee Ayers has 26 years of experience with an emphasis on spatial and temporal systems. As an Executive Consultant for OSIsoft, she acts as educator, systems consultant, designer and industry expert for utilities and vendors desiring to link real-time data throughout the corporation. Her current focus is Xcel Energy’s SmartGridCity.