Smart Grid Democratization Brings Consumer Choice and Control

Smart Grid in the Era of
Consumerization of
Nearly Everything
Prepared and Edited by
Michael M. Hsieh, Ph.D.
Instigator and Instructor of Smart Grid Technology Course Suites
at UC Berkeley Extension
http://extension.berkeley.edu/spos/smartgrid.html

Conference Technoark All Rights Reserved. 1
2013-Jan-25

Modernization of The Electric Grid
SMES:

Today’s Tomorrow’s Superconducting
Magnetic Energy
Storage
DG: Distributed

Electricity … Choices … Generation

Power park
e-

Fuel Cell

Hydrogen
Wind Storage Remote
Farms Industrial DG Loads

Fuel Cell
Rooftop
Photovoltaics e- SMES

Smart
Substation

Load as a
resource Combined Heat and
Power
Conference Technoark
Reference:T. Basso, NREL, October 20, 2005 2
2013-Jan-25

The Consumerization of Smart Energy
• Bring Your Own Energy and Equipment (BYOE)
– Consumer generated energy makes Consumers
the Prosumers.
• Crowd Sourced Technology
– Consumer Owned Generation, Solar Power
Purchase Agreement (PPA), Community Choice
Aggregation (CCA), etc., use technology not
supplied by the traditional utility industry.
• Plug and Play
– All will be plugged in and tied to the grid and
they must interoperate and play as intended.
Reference: Smart Grid Technology Course Suite, 3
2013-Jan-25
UC Berkeley Extension, Michael M. Hsieh, 2012

The Democratization of Smart Energy
• Buy Your Own Energy (BYOE)
– Solar Power Purchase Agreement (PPA),
Community Choice Aggregation (CCA), etc.,
procure energy not supplied by the traditional
utility industry.
• Crowd Sourced Technology
– Smart microgrids, PPA, and CCA, use facilities
not built by the traditional utility industry.
• Plug and Play
– All will be plugged in and tied to the grid and
they must interoperate and play as intended.

2013-Jan-25

An Example of Self-Generation System

Micro-Generation systems can be either grid-connected or off-grid.
Reference: Randy H. Katz, UC Berkeley, August 31, 2009 5
2013-Jan-25

Metro Area Voltage Swells and Sags
Challenges and Opportunities
• Network State • Condition Based Monitoring • Customer Engagement
• Asset Health Mgmt • Distribution Automation • Outage Management
• Asset Management • Demand Side Management • Volt VAR Control
• Enterprise Resource Mgmt • Workforce Management

Reference: Ankur Varma, Silver 6
2013-Jan-25
Spring Networks, March 6, 2012

Solar Power Purchase Agreement (PPA)
The Purchaser only
bought the Power.

Not the
System

Reference: Matt Gudorf, UC Irvine, 2008 7
2013-Jan-25

Solar PPA’s Power Delivery Method
Buying Leasing
Solar PPA
Equipment Equipment
Upfront Capital Yes Little or None None
Maintenance
Yes Yes None
Required
Performance
Yes Yes None
Risk
System
Expertise Yes Yes None
Required
Purchase
Yes Yes or Re-Lease None
Required
Reference: Matt Gudorf, UC Irvine, 2008 8
2013-Jan-25

Paying for the Electricity

Transmission costs are the
smallest part of a consumer’s
electric bill – 7 percent on
average. The remaining parts
of an electric bill can be
attributed to costs from:
• Generation – 68%
• Distribution – 24%

http://www.modernizethegrid.com/modernize-the-grid/ 9
2013-Jan-25

Example: CCA in Collaboration with IOU

CCA

CCA Responsible for IOU Responsible for Home or Business
buying and building delivering energy,
energy supplies repairing lines, and
serving customers

CCA: Community Choice Aggregation
IOU: Investor Owned Utility
PG&E: Pacific Gas & Electric, Northern California, USA
Reference: Lean Energy US, October, 2011 10
2013-Jan-25

Campus Level Smart Microgrid Examples
Site of Microgrid Attributes
Load: 42 MW Peak
UC San Diego1
Self-Generation: 37 MW Peak

Stanford Load: 50 MW peak
University2 Self-Generation: 30 MW peak

Load: 11 MW peak
A Shipyard3
Savings in Electric Bill: ~$23M in 10 years

An Engineering Load: 3.5 MW peak
Center3 Savings in Electric Bill: ~$10M in 10 years

Microgrids can be viewed as an energy consumer having its own utility company.
1. Byron Washom, UCSD, 2011
Conference Technoark 2. Joseph Stagner, Stanford University, 2012 11
2013-Jan-25 3. Pike Research, 2012

Solar Power at Hopkins Parking Structure at UC San Diego

http://www.marketplace.org/topics/sustainability/power-building-bigger-batteries 12
2013-Jan-25

Segmentation of US Energy Consumers
Segments % of Total Attributes and Opportunities
Population
Members of this group are most protective of the
Concerned 31% environment and supportive of smart grid initiatives. They
Greens are highly likely to participate in energy management
programs. They can be viewed as Early Adopters.
This group doesn’t know much about smart grid but is
Young 23% interested in learning about its potential for
America environmental benefits and cost savings.
This group of consumers has the highest income per
Easy 20% capita comparing with all other segments. They are very
Street comfortable with their current life style and are reluctant
to change their personal behaviors.
This group of consumers is frugal and has a do-it-yourself
DIY & Save 16% (DIY) life style. Their biggest concern is providing for their
family, not the global environmental issues.
This group tends to be older, set in their ways and do not
Traditional 11% see the need for energy reform. Factsheet, and education
regarding smart meter accuracy, health, and privacy could
perhaps offset concerns with the technology.
Reference: Smart Grid Consumer Collaborative, January 23, 2012 13
2013-Jan-25

Traditional Biz Model of Utility Industry
• US Utility industry have built, operated, and
maintained a mission critical infrastructure
24x7x365 for 130+ years.
• Utility industry produce, market, and deliver
“workhorse electrons” to consumer’s doorsteps
at a regulated “price per kilowatt-hour” like
Entitled Commodity.
• Utility industry carry heavy inventory of asset,
skill set, and personnel.
• Not a very healthy nor readily sustainable
business model in the 21st century.
2013-Jan-25

Could Utility Industry Take a New Biz Model?
• Utility Generated and Utility Operated-and-
Maintained Energy offered as a “societal” Service
like Fire Service, Medical Service, Police Service,
Societal Defense Service (e.g., US National Guard
of each individual state) etc.
• Service premium charged according to the
different levels of service agreement – hint,
similar to the way the insurance industries work
in US.
• This would be a model for the consumerized and
democratized Smart Energy industry.
2013-Jan-25

Need New Workforce for Smart Energy Industry
• Boots on the Ground
– Take care of the smart grids and smart
microgrids 24x7x365 as the first line of defense.
• Brains at the Desk
– Manage the distributed control, the big data,
the (external as well as internal) customer
engagement, the consumerization and the
democratization of smart energy.
• Thought Leaders at the Helm
– Lead and retain the “smart energy” workforce
into the new business era.
2013-Jan-25

Opportunities for Investments
• Observability of all kinds of grid
• Controllability of all kinds of grid
• Communication Infrastructure for all parties
• Friendly and effective Customer Engagement
• Situational Intelligence and Predictive analytics
• Workforce Development
• Education of the general public
• Smart Energy Storages, Smart Energy Systems,
Smart Cities, Smart Governance
• Security for Critical Infrastructure
2013-Jan-25

What’s In It For Me – the Consumer?
• Better Choices – Consumer and/or Prosumer
• Better (Quality of) Life
• Features Wanted by the People, Assets and
Properties of the People, Service for the
People

2013-Jan-25

Smart Grid: A Once In a Life Time Opportunity

Reference: George W. Arnold, NIST, July 19, 2009 19
2013-Jan-25

Smart Grid Democratization Brings Consumer Choice and Control

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