Smart Grid introduction, its components, its advantages, main drivers, main technologies

1. Smart Grid
Communication Strategy
Shekhar Gupta
Manager Network Planning Ops
Century Link
December 8th, 2009

2. What is the Grid?
Generation Transmission Distribution
10,000 Power Plants 157,000 miles of high voltage
transmission lines
Substations step down
voltages and distribute to
hundreds of thousands of
miles of lower voltage lines.
Customers’
electric systems
Customer
The grid is the integrated network incorporating the
generation, transmission and distribution of electricity

3. 3 Major Interconnections, 8 Regions, 135
Balancing Authorities

4. Today’s Grid
•Generation of power is mostly centralized and large scale.
•Electricity travels the path of least resistance hence it is not easy to
control its path through the network.
•Customers do not choose their source of electricity as service
provision is territorially based
•Energy prices are mandated with little consumer choice
Over 3100 Electric Utilities
Large stock-holder owned utilities
handle majority of customers
Public
Utilities
Public
Utilities
Stock-holder
Owned Utilities
Stock-holder
Owned Utilities
Electric
Cooperatives
Elec.
Coops

5. Today’s Grid is Under Stress
The US energy grid is antiquated
– Much of the power delivery infrastructure was
designed before 1960
– The Near-term retirement of many aging plants is
projected
Inefficiency and failures are costly
– Power interruptions and disturbances cost the U.S.
electricity consumer at least $79 billion per year1
– A recent rolling blackout caused an estimated $75
million in losses in Silicon Valley alone. 2
– When the Chicago Board of Trade lost power for an
hour during the summer of 2000, trades worth $20
trillion could not be executed.
– Congestion in distribution and bottlenecks affect many
parts of the grid.
Today‟s grid is increasingly operating at
its limits
– facing shortcomings in capacity, reliability, security
and power quality
– 30% increase in demand expected by 2030
America faces a significant need for new
electric power generation
“Today’s power grid is wasteful, costly, inefficient
and dumb…” 1
1. Lux’s Research, “Alternative Power and Energy Storage State of the Market Q4 2008: Weaving the
$65 Billion Power Web,”

6. What Utilities Need
Large utilities may own & operate all domains
Some major utility needs are:
Revenue Impacting
• Near real time usage status delivered in regular intervals; on-demand response
• Service integration with billing systems
• New products and services such as time-based rates, pre-payment, etc
• Eliminate mechanical meter billing loss
• Improve response to power outage / restoration
Expense Impacting
• Integrate utility network management systems
• Manage peak load;
– reduce peak rate
– better control localized generation
• Reduce meter reader costs
• Reduce service disconnects / reconnect costs
• Reduce outage support calls
• Improve technician dispatch accuracy

7. Smart Grid Drivers
Electric Utilities: Current Situation / Challenges
– Today‟s power grid is aging, inefficient and under stress
– Power demand expected to increase by 30%-50% over next 10-20 years;
prices are expected to increase to help manage demand
– Grid cannot easily integrate alternative power generation and storage
Environment
– Economic: prolonged recession, business & consumer managing spend
– Social: green movement, carbon footprint, hybrid/electric vehicles,
recycling, etc.
– Market: dynamic, emerging marketplace, new players in energy sector
(eg, wireless, Google, Cisco, start-ups)
– Political/Regulatory: energy is top priority for current administration;
mandates for electric utilities; job creation
• Building a smart grid is a priority with many stakeholders
• Rural America may have different Smart Grid challenges

8. Tomorrow’s Smart Grid changes the paradigm
A communications overlay
Distributed Intelligence throughout the grid‟s
ecosystem
Automated & remote control of grid components
New energy sources (solar, wind, etc.)
New energy storage means
Many on-premise monitoring and control devices
“Today’s power grid is wasteful, costly, inefficient and dumb…. However, the advent
of distributed generation, distributed storage, and distributed intelligence will
change power infrastructure into an intelligent and more nimble power web…”1
Smart Grid enhances today’s grid via….
1. Lux’s Research, “Alternative Power and Energy Storage State of the Market Q4 2008: Weaving the $65 Billion Power Web,”

9. Smart Grid Delivers Solutions
Generation
Customer
Step-Up
Sub-station
Step-Down
Sub-station
Trans-
former
Domain
Generation
Transmission
Distribution
Customer
Smart Grid is about
„beefing-up‟ the
electrical grid and
enabling it via a
communications network
Smart Grid implements
a data network overlay
to the electric grid to
measure, manage, and
control the grid
„Beefing-up‟ the grid
enables new electrical
solutions such as
alternative energy
sources and electric
automobiles
Smart
Grid
Overlay
Data
Networ
k

10. The SMART GRID is a network architecture,
protocol & a framework for development
Re-engineering Power distribution and control
It integrates communication technologies with
the electric grid, allowing for real-time, two-
way communication between the utility, the
consumer, and throughout the distribution grid
It‟s an organizing framework for broad and
disperse development activities aimed at
modernizing the grid
It energizes a competitive marketplace for
electricity
It‟s a fully automated power network
Smart Grid will revolutionize the transmission,
generation and storage of energy
It’s the widely accepted Framework for Modernizing
Today’s Power Grid

11. Smart Grid’s Design Characteristics
Enhanced availability of power
– Quality, Distribution, Magnitude, minimal congestion & constraint
Distributed energy generation and storage
– Not only large, but also smaller power plants with various energy sources (wind,
solar, etc.)
Democratic and Participatory
– Consumers actively participate and bring value
– Increases choice in energy / Redefines demand response
Open Access - Enabling the marketplace
– Encourages new entrants and new devices
– Energy prices will be fluid, responding to load, time of day, source, etc.
– Customers will be able to choose the source(s) of their energy
Efficient
– Sensing and measurement grid improve load balancing characteristics
– Minimal transmission congestion
Self-healing
– Minimizes user impact from problems
Resistant to attacks – Isolates faults
It’s a big vision with plenty of onramps

12. SmartGrid Ecosystem has many Stakeholders
Demand
Response
HAN, Gateway
Meter Data
Management
Distribution
Automation
Consultants
Backhaul Technology
Providers
System
Integrators
S&C Electric, Cooper,
Cleveland Price
KEMA, Enspiria,
Michael Weibe,
Enernex
IBM, CapGemini,
Accenture, SAIC, SAP
Embarq,
AT&T Cingular, Verizon,
Rogers Wireless, Tropos,
Corinex, Current,
Arcadian Networks,
Earthlink, et.al.
Itron, Landis+Gyr,
Elster, GE, Sensus,
Echelon
Aztech, Blue Line,
Riga, Centimeter
Data Collection
Hardware
IBM, HP, Dell
Data Collection
Technologies
Itron, Sensus, Cellnet,
Elster, DCSI,
Cooper / Cannon,
Trilliant, Tantalus,
powerOne data, Hunt
Alliances and
Organizations
ZigBee Alliance,
OpenHAN, Intelligrid,
GirdWise, OpenAMI, EPRI,
ANSI C12 / NEMA,
DRAM, DRCC
Regulatory
PUC, Federal
Utilities
Itron, Oracle, eMeter,
Nexus, EnergyICT,
EnerNOC
Comverge, EnerNOC,
Cannon, Carrier,
Honeywell, Golden
Power, Corporate
Engineering Systems
AMI vendors, IBM Tivoli,
HP OpenView,
Microsoft
Source: M2M United 2009
Smart Grid ecosystem has many potential partners
Meters

13. Stakeholders of the Vision
National Government (s) including DOD, DOE, Agriculture, Energy Regulatory,
Homeland Security
– National Energy Technology Laboratory
Regional, state, Municipalities and local government agencies
Electrical and gas utilities
Industry Players: Electrical equipment and IT manufacturers & System
developers
Consumers
Research laboratories & universities
International agencies and trading partners (particularly Canada & Mexico)
Public interest organizations, environmental groups, and labor unions
Investors
And Communications Companies (Not included in
Governmental Reports)
Yet the Vision is still formative

14. SmartGrid Standards Overview
(Example listings - not complete)
Source: Enerex 2009
External
HAN
Field
LAN
Enterprise
WAN
Meter / Gateway
Collector
Metering System
Portal
Normal
Program
Critical
Peak Event
Emergency
Stage 1
Emergency
Stage 2 Current
Temp
$
Stat
us
NOR
MAL
PEND
ING
ACTI
VE
OV
ER
-
RID
E!
03/03/2007
8:48am
Progr
am:
AW
AY
Retailers
Aggregators
Regulators
Customers
Providers
MDMS
CIS/Billing
OMS
WMS
EMS/DMS
Routers
Towers
Ground Stations
Repeaters
Rings
Relays
Modems
Bridges
Access Points
Insertion Points
Thermostats
In-Home Displays
Smart Appliances
Field Tools
PCs
Building Automation
Internet Protocols
World-Wide Web
ebXML
IEC 60870-6 ICCP
IEC 61970
IEC 61968
Web Services
Multispeak
Message Buses
SONET, WDM, ATM
MPLS
Frame Relay
Satellite
Microwave
IEC 61850
DNP3
WiMAX
BPL / PLC
Wireless Mesh
ADSL
Cellular
Cable (DOCSIS)
ZigBee
WiFi
LonWorks
BACnet
HomePlug
OpenHAN
Example
Members
Example
Technologies

15. Generic Architecture Components
Data
Smart meter
Customer Utility

16. Smart Grid and Local Energy Networks
Efficient
Building
Systems
Utility
Communications
Dynamic
Systems
Control
Data
Management
Distribution
Operations
Distributed
Generation
& Storage
Plug-In Hybrids
Smart
End-Use
Devices
Advanced
Metering
Consumer Portal
& Building EMS
Internet Renewables
PV
Control
Interface
Advanced Meter
Infrastructure
(AMI) is the main
Utility application
Local energy
management
enables end-user
participation in
smart grid
Smart Grid
enables energy
management at
end-user devices
Integrates new
energy solutions
at end-user
locations
Local energy management is an emerging market

17. What we must know…
AMI is the Utility’s Cornerstone
Incremental investments
– Communications bandwidth
– Business development capital
Incremental utility-side capital
– Programmatic, customer-facing and physical
device management systems
Incremental field capital and
knowledge-based applications
– Sensors & device controllers
– Information management
Initial capital outlay
– Meter functionality
– Communications infrastructure
– Head-end and legacy systems modifications
Capital Build-Up
ExpectedValue
Incremental Capital Commitment
Distribution
Operations &
Automation
Demand
Response
Extended
Utility
Roles
Incremental Value Capture
AMI
Utilities may seek to provide some of the same communications services
Benefits from
AMI/Smart Meters
cover 60% - 70%
of capital costs
Q: How do utilities
make “smart grid”
projects a winner?
A: Build upon previous
investments
Utilities view Advanced Meter Infrastructure (AMI) as the foundation for the
future
Source: AEP 2009

18. Smart Meter
Smart Meters usually involve a different technology mix, such as real-time or near real-time sensors,
power outage notification, and power quality monitoring.
The system provides a wide range of advanced features, including the ability to remotely turn power
on or off to a customer, read usage information from a meter, detect a service outage, detect the
unauthorized use of electricity, change the maximum amount of electricity that a customer can
demand at any time; and remotely change the meters billing plan from credit to prepay as well as
from flat-rate to multi-tariff.
These meters are fully electronic and smart, with integrated bi-directional communications,
advanced power measurement and management capabilities, an integrated, software-controllable
disconnect switch, and an all solid-state design.
Smart Meter
Features & Benefits
• Automated Meter
Reading
⇒ Saves labor
• Real-Time Consumption
⇒ Modifies user behavior
• Demand Response
⇒ Manage peak demand

19. Utility Communications Architecture
ANSI C12.22 Network Topology
C12.22 network:
– Abstracts utility data
requirements to higher protocol
layers
– Utilizes secure, encrypted
communications at lower layers
– Designed with flexibility to use
proprietary or standard
communication networks at
lower layers
– Provides for interoperability at
end devices
– Allows system integration with
3rd party devices through
common standards-based
interface
– Supports 1-way and/or 2-way
network communication paths
– Enables enhanced security,
reliability and speed for
transferring end-device data
Communication
Network

20. Telecom empowers the smart grid via
networks, devices and services
Smart
Devices
Smart Grid
Services
Smart Grid
Comm. Network
flexible communications
architecture, fiber, copper,
wireless technologies,
Transport, BPL
Sensors, Smart Controls,
Home energy hub, routers,
switching, interfaces,
appliances, etc.
Managed Network
services, energy
monitoring services,
(secure, SLA)
Devices integrated
with broadband
Web-based
solutions, Portal

21. Who’s Getting Involved?
Google Hopes to become the underlying platform for home energy management.
Introduced Power meter, online app that tracks home energy use.
AT&T, Verizon 3rd parties have adapted T‟s or V‟s wireless high speed cellular data
network. To give utilities 2-way communications with meters. Ambient
Launches X-3000 Node Certified for Use on the Verizon Wireless Network; Itron &
SmartSynch on AT&T‟s.
Black & Veatch In Oct 2008 expanded its integrated network services to provide
telecommunications infrastructure services for electric utilities.
ZigBee Alliance,
HomePlug alliance
Zigbee (wireless platform for home sensing & monitoring) joined
HomePlug (connectivity over residential electric wiring) to create open
platform and protocols for Smart Grid
IBM Signed $9.6M contract to bring Broadband over powerline (BPL) for rural
electric cooperatives and their customers.
Xcel Energy (XEL) building a $100 million Smart Grid City in Boulder, Colo.
Many Startups Comvere COM) EnerNoc (ENOC) Echelon (ELON) : Making devices and systems that
let consumer monitor and adjust their electricity use in real time
Tendril - Smart meter with open platform for other devices in-home display
shows electricity usage
GridPoint Inc., intelligent hub connects location to a renewable energy source,
utility grid, and online energy management tools.
Obama
Administration
Congress is betting a $4.5 - $11 billion slice of its economic stimulus package on the
development of the smart grid. President Obama is calling for another 40 million
smart meters installed using funds from the stimulus program

22. Time Horizon: DOE Roadmap for
Modernizing America’s Electric
Delivery System

23. Time Horizon
“Large scale smart grid integrated solutions will be partially
underway in places such as Texas within five years. It will be
obvious to everyone within a decade. It will be mainstream
within two decades.”
“The winners will be those who start planning today for that
brave new world. Those who understand that to prosper in that
world, you will need new, smarter business models.”*
Why Now?
– The Stimulus bill and other factors are bringing key conversations to a head.
Telecom Industry shouldn‟t want standards laid down by others before adding
its voice; Telecoms should seek to be courted as partners and avoid being
locked out of value;
– Pivotal choices will be made for the Smart Grid in 2009 and Telecoms need to
claim a place at the table.
* Berst, Jesse, smartgridnews.com Smart Grid Millionaires
http://www.smartgridnews.com/artman/publish/industry/Smart_Grid_Millionaires_199_printer.html

24. Roadmap Partners *
* Department of Energy

25. Smart Grid Communications Portal
thermostat
Air conditioner
Appliances
Heater
Lights & Loads
Solar Energy Source
User
Interface
Controls
Energy Provider A
Energy
Source B
Smart Meter
Smart
Grid
Comm.
Portal
On-PremiseOff-Premise
The communications portal serves as the on-
premise clearinghouse and data processor for
all energy related appliances and devices. It
relies on a customer’s communications line.
Internet

26. A Specific Example for Service provider to
consider - Smart Grid’s Communication Portal
A Communications portal could sit
between consumers‟ home network
and the wide area network.
The portal could enable two-way, secure,
and managed communications
between consumers‟ equipment and
energy providers‟ equipment.
Performing the work closely related to
routers and gateways, the portal
could add management features
(e.g., expanded choice, real-time
pricing, detailed billing, consumption
information, and distributed
computing) to enable fully networked
applications.
A user interface available both at home &
remotely places control and
management of home energy devices
as well as distributed energy
resources at the end user‟s disposal.

27. Connected Home Architecture

28. Home Plug Power Line Alliance
High Speed Home Area Network (HAN)
– Limitations: noise interference, distance
Home Plug Command & Control
Specification
– Low power, low bandwidth, high reliable, power
line
– Complementary to Home Plug
– For home appliances, security, home automation
– Demand response & demand management (smart
grid)
– Low cost addition into any device or appliance
– Plug and play
– Secured network
Any device on network can be triggered
and any device can take action based on
a trigger & can also send status.
Applications
•Automatic Meter Reading and Energy Management - Smart Meter, Thermostat, Circuit Breaker, HVAC,
Water heater, power measurement, data collecting, load controller, smart switches, etc.
•Demand Response and Demand Management
•Home Appliances Automation, remote command and control. Actuators – Ceiling fan, shade and drape
control, audio source control, audio volume control, gate controller, door position monitor and controller, &
solenoid controllers, etc.
•Monitoring Security and Safety including remote access and control via the internet.
•Street light control; Industrial Automation; Sensors and Life Safety Devices – Smoke detector, motion
detector, water, heat, health monitoring, etc; Various indoors controllers – Lighting control, switches, and
dimmers, door and windows lock, etc.

29. ZigBee
San Ramon, Calif. - August 25, 2008 –
Today utilities led by American Electric Power, Consumers Energy,
Pacific Gas and Electric Company, Reliant Energy, Sempra, and
Southern California Edison are working with the ZigBee® Alliance
and the HomePlug® Powerline Alliance to develop a common
application layer integrated solution for advanced metering
infrastructure (AMI) and home area networks (HAN). Using the
robust capabilities of the ZigBee Smart Energy public application
profile as a baseline, the three groups will expand the application
layer and enable it to run on HomePlug technology, providing
utilities with both wireless and wired HAN industry standards to
select from when implementing new AMI programs.

30. Home Energy Management
Basic
Enhanced
Advanced
Simple indicator
More comprehensive in-
home displays (usage,
cost, time)
Programmable
Communicating
Thermostat (PCT)
Fully automated intelligent
energy management system
Other automated/
programmable appliances
Electric vehicle charging /
storage
Distributed generation and
storage
Source: Pacific Gas & Electric

31. Google’s Smart Grid Play

32. High Level Market Sizing – by 2015
Electric smart meters
– Est. 262 million smart meters
shipped 2007 to 2015
(Frost & Sullivan)
– ~5% in EQ territory
= ~13.1 million meters
– Assume $1-2 / month / meter =
~$157 - $314 million / year
Home energy management
– ~6.6 million HH in EQ territory
(Market Profile)
– 5% HH penetration
• 85% online, 25% have HAN,
25% take solution
– Assume $10/month/HH
= ~$42 million / year
Additional revenue not
captured here
– Transport, Network management
services, On-premise energy
management for business
– Smart meters for water and gas
double market size
(IMS Meter Report, 2007)

33. ARRA Smart Grid Stimulus
Smart Grid
Stimulus Goals
Opportunity Funding Sources Can be used for:
Total: $16.6 Billion
Accelerate the development, demonstration and deployment of smart grid
technologies, services and practices nationwide.
Support the upgrading of the country‟s power grid.
Support renewable energy and transmission technologies
Address the specific energy priorities adopted by the states
Facilitate early use of new technologies in energy-related projects
Smart Grid funds 50%, 2-yr projects
$4.3Bil
Energy efficiency Block Grants EISA via DOE $3.2 B
State Energy Program via States - $3.1 Bil
Loan Guarantee Program via DOE - $6 Bil
•New Smart Grid technologies, smart
metering
•Modernization of transmission infrastructure
•Communication upgrades of energy grid
•Demonstration projects in rural areas
•Open protocols & standards
•Electric Utility “OR OTHER PARTY”

34. Smart Grid Systems View
Source: SAIC – San Diego Smart Grid Study – Final Report