International Collaboration of Smart Grid Demonstration Projects

1. International Collaboration of Smart Grid Demonstration Projects Integrating Distributed Energy Resources Matt Wakefield EPRI John J. Simmins, Ph.D. EPRI Gale Horst EPRI CIRED June 6-9, 2011, Frankfurt, Germany

2. EPRI Smart Grid Demonstration InitiativeLeveraging Today’s Technology to Advance the Industry • Deploying the Virtual Power Plant • Demonstrate Integration and Interoperability • Leverage information & Communication Technologies • Integration of Multiple Types of Distributed Energy Resources (DER): • Distributed Generation  • Renewable Generation  • Storage  • Demand Response  • Multiple Levels of Integration - Interoperability Wakefield, Simmins, Horst – USA – Session 4 – 0530

3. EPRI Smart Grid Demonstration Initiative Members Wisconsin Public Service Exelon (ComEd/PECO) Ameren KCP&L Southwest Power Pool SMUD Salt River Project Southern California Edison PNM Resources CenterPoint Energy Entergy • Research Funded by 21 Electric Utilities • Knowledge Transfer to Advance Industry Hydro-Québec Central Hudson Gas & Electric Con Edison FirstEnergy/JCP&L ESB Networks Electricité de France American Electric Power Duke Energy Tennessee Valley Authority Southern Company Collaborator Collaborator & Host Site

4. EPRI Smart Grid Demo Critical Elements (Host Site Criteria) • Integration of Multiple Distributed Resource Types • Connect retail customers to wholesale conditions • Integration with System Planning & Operations • Critical Integration Technologies and Standards • Compatibility with EPRI’s Initiative and Approach • Funding requirements and leverage of other funding

5. Collaborative Demonstrations – Increases Value Strategic Topic Collaboration – Prioritized Annually Energy Storage Monetization CVR & VVO Analysis & Monetization Consumer Behavior & Engagement Distribution Management System Integration & Visualization No Single Project Can Evaluate Every Integration Scenario Multiple Host-Sites Provide a Platform to Advance the Industry

6. Cost-Benefit Analysis Guiding Documents • “Methodological Approach” (ID 1020342) • Jointly funded by DOE and EPRI • Provides framework for estimating benefits & costs • Estimating Costs & Benefits of the Smart Grid: (ID 1022519) • 20 Year Estimate of Investment & Benefit of Smart grid • CBA Guidebook Vol. 1, Measuring Impacts (ID 1021423) • Manual for practical application with step by step instruction • Guidance for documenting the project & approach to perform a CBA

7. Dual Purpose of Demonstration Research • Demonstratephysicalimpacts of technologies in specificapplications. Does it work? • Estimateeconomicviability of the demonstrated applications. Is it worth doing? • The physical question is separable from the economic question. • We can test and observe the physical performance. • Economic performance is often not directly observable,but is estimable through analysis of the physical performance.

8. Demonstrating Physical Impacts Hypotheses: Linking Cause and Effect A hypothesis makes a statement that links cause and effect. A causal chain can be expressed as a testable hypothesis: “If _____ occurs, the system acts to cause _____.”condition outcome

9. Next Steps • Results Beginning to Come out • Emphasis on Case Studies in 2012 • Contributions to CBA Guidebook • Call to Action – Proactively Share Results • EPRI Results @ www.smartgrid.epri.com • Signup for Newsletter • Send request to mwakefield@epri.com Wakefield, Simmins, Horst – USA – Session 4 – 0530

10. Questions? Wakefield, Simmins, Horst – USA – Session 4 – 0530