Sioshansi F.P. Smart Grid: Integrating Renewable, Distributed & Efficient Energy
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Chris Thomas is Policy Director at the Citizens Utility Board
(CUB) in Chicago, where he is engaged as a utility economist
and energy policy consultant providing technical support for
the development of comprehensive energy market action
plans and encouraging innovation in energy markets to
benefit customers. He is responsible for developing and
overseeing implementation of CUB's policy agenda, which
advocates for inclusion of demand-side resources into the
energy supply portfolio.
His international experience includes leading research and
training on energy markets and smart grid development for
government agencies and businesses in Asia, Europe, and the
Middle East. He currently provides leadership for the Illinois
Smart Building Initiative and is a member of the program
management office for the Illinois-Korea Smart Grid and
Green Economy Committee. He is a frequent speaker at
regional and national conferences.
Mr. Thomas received an undergraduate degree in Business
Administration at Truman State University in Missouri and an
MS in Economics and Finance at Southern Illinois University,
Edwardsville.
Dan Ton is Program Manager of Smart Grid R&D within the
U.S. Department of Energy (DOE) Office of Electricity
Delivery and Energy Reliability. He is responsible for
developing and implementing a multi-year R&D program for
next-generation smart grid technologies to transform the
electric grid in the United States through public/private
partnerships.
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Previously, he managed the Renewable Systems Integration
program within the DOE Solar Energy Technologies
Program.
Mr. Ton received a BS in Electrical Engineering and an MS
in Business Management from the University of Maryland.
W. Maria Wang is a Technology Manager for Energy &
Environmental Resources Group, LLC (E2RG), where she
provides technical consulting services to government agency
programs related to the smart grid, renewable energy, and
energy storage. Dr. Wang supports the U.S. Department of
Energy (DOE) Smart Grid R&D Program, GridApp utility
consortium, and the Batteries for Advanced Transportation
Technologies (BATT) Program.
She has also supported the DOE Solar Energy Technologies
Program culminating in two reports, “High Penetration of
Photovoltaic Systems into the Distribution Grid” and “Solar
Energy Grid Integration Systems – Energy Storage.” In
addition, Dr. Wang has completed a comprehensive summary
of the Renewable Systems Interconnection Study for Sandia
National Laboratories.
Dr. Wang has a BS from the Massachusetts Institute of
Technology and MS and PhD degrees in Chemical
Engineering from Stanford University.
Jianhui Wang is a Computational Engineer at the Center for
Energy, Environmental, and Economic Systems Analysis
(CEEESA) at Argonne National Laboratory.
Dr. Wang is the chair of the IEEE Power & Energy Society
power system operation methods subcommittee and co-chair
of an IEEE task force on integration of wind and solar power
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into power system operations. He has authored/co-authored
more than 60 journal and conference publications. He is an
editor of the IEEE Transactions on Smart Grid and an
associate editor of the International Journal of Renewable
Energy Technology. His research interests include large-scale
modeling and simulation, electric power systems
optimization, electric vehicles, electricity restructuring,
computational intelligence, climate change, and the smart
grid.
He received a BS and MS from the School of Business
Administration in North China Electric Power University and
a PhD in Electrical Engineering from the Illinois Institute of
Technology.
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Introduction
The inception of the smart grid
With no warning, over 50 million people in the Northeast
United States and Ontario, Canada, lost power in August
2003. Everyone's first reaction was, how could this happen
and why was it so widespread? But once the initial
investigations of the massive failure of the grid were
conducted and appropriate blame was placed on the guilty
parties, the focus of attention shifted to how can we avoid a
similar accident in the future.
The first obvious answer was to find ways to make the grid
more intelligent, more reliable, and more secure. Among the
suggestions made were to make the grid self-detecting and
self-healing, so that future accidents could be detected at an
early stage, resolved, or isolated to avoid another catastrophic
cascading failure of the scale of the August 2003 blackout.
This line of thinking naturally led to the term smart grid,
which has become a household word.
Since 2003, a flurry of research, vast effort, and large
investments of capital and resources have gone into the smart
grid. The investments to date, however, are likely to be
dwarfed by the additional investments expected in the coming
years. There is near unanimous support for the smart grid
concept, even during the current economic downturn. A
significant amount of money in the US stimulus funding, for
example, was specifically targeted towards smart grid
investments. Internationally, the smart grid is equally popular
as indicated in a recent study attempting to describe its
universal appeal and growing footprint (Figure 1).
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Figure 1
The growing global footprint of smart grid.
Source: Smart from the Start, PricewaterhouseCooper, 2010
Yet, despite the widespread embrace of the smart grid
concept, there is no universal definition of what it
encompasses. It is probably safe to say that there are as many
definitions of “smart grid” as there are smart grid projects,
experts, or practitioners.
1
This poses a challenge, especially
for an edited book such as this, which consists of
contributions from a diverse number of experts, scholars,
academics, and practitioners from different walks of life,
representing different disciplines and perspectives. For these
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reasons, it is helpful to provide a definition and scope for
smart grid at the outset.
1
Hauser et al. provide further perspective on the inception and evolution
of smart grid.
What is the smart grid?
For the purpose of the present volume, smart grid is defined
as any combination of enabling technologies, hardware,
software, or practices that collectively make the delivery
infrastructure or the grid more reliable, more versatile, more
secure, more accommodating, more resilient, and ultimately
more useful to consumers.
Moreover, a useful definition of the smart grid must
encompass its ultimate applications, uses, and benefits to
society at large. In this sense, the smart grid must include a
number of key features and characteristics including, but not
limited, to the following:
• It must facilitate the integration of diverse supply-side
resources including increasing levels of intermittent and
non-dispatchable renewable resources;
• It must facilitate and support the integration of distributed
and on-site generation on the customer side of the meter;
• It must allow and promote more active engagement of
demand-side resources and participation of customer load
in the operations of the grid and electricity market
operators;
• It must allow and facilitate the prices-to-devices
2
revolution that consists of allowing widespread permeation
of dynamic pricing to beyond-the-meter applications,
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enabling intelligent devices to adjust usage based on
variable prices and other signals and/or incentives;
2
This word, to the editor's knowledge, was first coined by EPRI.
• It must ultimately turn the grid from a historically
one-way conduit that delivers electrons from large central
stations to load centers, to a two-way, intelligent conduit,
allowing power flows in different directions, at different
times, from different sources to different sinks;
• It must allow for broader participation of energy storage
devices on customers’ premises or centralized devices to
store increasing levels of energy when it is plentiful and
inexpensive, to be utilized during times when the reverse is
true, and accomplish this intelligently and efficiently;
• It must allow distributed generation as well as distributed
storage to actively participate in balancing generation and
load;
• It must encourage more efficient utilization of the
supply-side and delivery “network” through efficient and
cost-effective implementation of dynamic pricing and
similar concepts;
• It must allow storage devices on customer side of the
meter, including electric batteries and similar devices, to
feed the stored energy back into the grid when it makes
economic sense to do so;
• It must facilitate any and all concepts and theories that
encourage greater participation by customers and loads in
balancing supply and demand in real time through concepts
broadly defined as demand response;
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• It must make the “grid”—the vast generation,
transmission, and distribution network—more robust, more
reliable, and more secure to interruptions, and less prone to
accidents or attacks of any kind; and
• Of course, it must accomplish all these while reducing the
costs of the operation and maintenance of the “network,”
with commensurate savings to ultimate consumers.
If this sounds like an all-encompassing definition, it is
intentional. If it sounds like a tall order, that is also intentional
as a glance at the titles of the chapters of this book suggests.
Before leaving this subject, I must also point out what my
definition of the smart grid and this book do not cover, and
that is technical engineering detail. If, for example, you are
looking for a discussion of dynamic loading of transmission
lines made possible through the application of synchronous
phasers
3
and capacitors, you will be disappointed. This book
is not technical and its intended audience is not engineers.
3
Chapter 6 actually does mention synchronous phasers, but only in
passing.
What's wrong with the existing grid?
The short answer, as pointed out by Gellings in the book's
Foreword, is that the current grid is a relic of the past,
designed to meet the needs of a different industry in a bygone
era with outdated technologies that are incapable of meeting
today's requirements, let alone those of the future.
The existing grid was designed essentially as a one-way
conduit to transmit vast amounts of power generated
primarily at a limited number of large central power stations
to major load centers.
4
The original thinking behind the
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entire network, from generation to transmission and
distribution, was based on the outdated premise that customer
load is a given, which requires generation to be adjusted to
meet. The balancing of supply and demand in real time was
routinely accomplished by adjustments on the supply side.
Until recently, customer demand was not subject to control or
manipulation, with virtually no means or incentives for load
to play an active role.
4
The existing grid was designed to meet the needs of large and vertically
integrated utilities operating their networks largely in isolation as
independent entities. Organized wholesale markets, third-party
generators, and increased penetration of renewable energy generation are
relatively recent developments that were not part of the grid's original
design.
In a dumb grid—in contrast with the emerging smart
grid—environment managing, influencing or controlling
customer demand, was problematic or simply impossible
mostly due to the limitations of the technology, primarily in
two key areas:
• First, until recently, primitive electromechanical meters in
use to measure consumption for all but the largest
customers were only capable of registering volumetric
usage not differentiated by time of use, voltage, wattage, or
anything else. More sophisticated meters are needed to be
able to influence the pattern and amount of customer
consumption.
• Second, severe limitations in communications between
the suppliers and end-users have been another major
impediment to managing consumption until recent times.
As further described in numerous chapters of this book,
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