Sioshansi F.P. Smart Grid: Integrating Renewable, Distributed & Efficient Energy
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Epilogue
The topic of the smart grid, examined from a number of
perspectives by the contributing authors of this volume, offers
exciting opportunities, savings, benefits, and a host of
features and functionalities that are simply beyond the
capabilities of the existing grid. Moreover, taken together, the
smart grid has the potential to usher the electric power sector
into the information age, at last, as pointed out by Guido
Bartels in the preface of the book.
But as one looks at the road ahead, it is abundantly clear that
many remaining obstacles have to be overcome and pitfalls
avoided—technical, regulatory, financial, and behavioral, to
name a few—if we are to achieve the full potential benefits of
the smart grid. In this sense, the smart grid today resembles
the proverbial glass, it appears half empty to some, while
others will see it as half full. The former view is mainly
focused on the enormous costs, the many technical,
implementation, and integration hurdles. The latter view is
mainly focused on the potential gains that could be had if we
persevere and manage to get it almost right.
Fereidoon P. Sioshansi
Menlo Energy Economics
941
942
Index
Page numbers in italics indicate figures, tables, and footnotes
A
Accumulators 33
Advanced metering infrastructure (AMI)
capabilities of 214
in Colorado 365
consumer advocate complaint on 363
customer feedback and 364, 366
federal funding provided for 214
growth of 350
in Illinois 353
savings from 357
U.S. deployment growth of 350
Advertising 34
Affordability 8–16
Air conditioning 35–41, 39–40
Alexander, Barbara 71
American Recovery and Reinvestment Act 24, 124, 214
Ancillary services
demand response participation in 444–448
topology classifications of 216
wind integration studies and 241–243
Aristotle 95
Arizona wind/load/solar profiles 111
Arsenault, R. 38
Australia
carbon pricing in 171
dynamic pricing in 69
electricity energy industry 51, 51
943
wind power in 49
Automatic Benchmark System (ABS) 364
Automatic generation control (AGC) 239
Average Users 72
B
Balancing services 243
Batteries 118, 468
Bentham, Jeremy 95
Bill protection 77, 375
Bill-to-date calculation 265–266
Bonneville Power Authority (BPA) 250–251
Brown, Jerry 132, 147
Buildings
automation systems for 153
construction and 37
Business silos 271
Butler, Fred 70
C
California
advanced applications in use 152
advanced metering infrastructure 65
customers and tariffs 293–296
load impacts in 298–311
pricing pilot results 385
programs in 291–293
smart grid deployment project 363
California ISO Smart Grid Roadmap
capability domains of
advanced forecasting 145–147
advanced grid applications 149–153
cyber security 156–157
944
enabling demand, storage, energy
resources 153–156
synchrophasors 148–149
demand response in 15, 153, 155
overgeneration conditions 141–143
renewable integration 132–143
smart grid drivers for 130
statistics on 128–129
strategic framework for 129
“Call and curtail” agreements 335–336
Capacity market 427, 428–430, 457
Cape Light program 361–362
Carbon pricing 170, 171–172
Case studies
New Zealand EVs and wind power 453–477
PJM Demand Response Participation 421–452
Cell-phone pricing 73
China 20
Choices systemic framing of 41
Cisco 21–22
Clean technology 16–17, 90
Climate change 44–45, 56
Colorado 353
Combined cycle gas turbines (CCGT) 246
ComEdSmart Grid Innovation Corridor 23
Commercial frameworks 55
Communications management 263, 273–276
Community-oriented initiatives 49
Congestion management 138
Congestion pricing 73
Connection cost 330
Consumer backlash 374–375
945
Consumer behavior see Customer behavior
Consumer electronics 42
Consumer engagement 265–266
Consumer expectations 8
Contingency reserves 219–220
Contracts 252
Contributions to connection cost 330–332
Controllers, network 386
Cooper, Gail 35, 37
Cost allocation 96
Cost effectiveness 6, 92
Cost recovery 86–87
Costs
building construction 37
connection 330–332
electricity consumption, by income 87
of microgrids 199
operational 11–12
smart grid 11, 24
wind and EVs integration 461, 462, 465–467
wind integration 220–221
Cowan, Edith 35
CRAGS (Carbon Reduction Action Groups) 49
Critical peak pricing (CPP)
average loads 299–303
customer characteristics 307–309
enrollment by industry type 293–295, 294
events 296, 297
rate illustration 63
tariffs for 292 see also Dynamic pricing
Cross-subsidies 62, 72
Customer behavior
946
dynamic pricing bill impacts and 67
in home automation 381
in large commercial customers 363
lessons from case studies 364
in residentail customer pilots 361
time-based pricing and 356, 361
usage profiles 66 see also Consumer backlash
Customer choice 354, 367–368
Customer participation models 413–414
Customer usage profiles 66
Customized products/services 21
Cyber security 156–157
D
Data 263–273
Day-Ahead Energy Market 436–437
Day-ahead prices 486, 490, 493
Default service 81
Demand, evolution in 42–43
Demand management 12–16
Demand response
in California ISO 15, 153
capacity market and 427, 428–430, 430–431
customer participation and 399
energy efficiency and 347, 348
FERC and 14
growth in PJM interconnection 215
home automation and 373
participation in organized markets 421–452
peak shaving estimates 225
PJM case study of 421–452
potential assessment 224–228
pricing for 253, 449
947
programs 14, 214–215
for regulation and load-following 247–248
renewable energy and 221–224
resource topology 222
for Smart Grid IT 264–265
telemetry and 416
topology 221–224
utilization of 215
wind integration and 228–231
wind integration projections 226–229
Demand side management 65–72
Demand-side services 31
Demand Subscription Service 77
Denmark, wind power in 74
Deployment (pilot) projects 361
Device provisioning 275
Device tracking 273–275
Direct feedback mechanisms 401–407
Direct load control 223–225, 352
Distributed energy options 46–50
Distributed generation (DG) 163, 187–188
Distribution networks 177–178
Diurnal intermittency 111
Dynamic pricing
accommodating objections to 77–78
background of 63–65
barriers to 69–71, 74–77
benefits of 63
bill impacts distribution and 74–76
conditions needed for 61
customer response to 67–68, 79, 385
distributional effects of 65–72
948
energy and demand savings from 357–360, 361
features of 282–283
low income consumers and 75–76
in other industries 73
for residential customers 384
software for 283
E
Edison, Thomas 32
Electric compression machines 34
Electric lighting 32
Electric vehicles (EVs)
demand side price simulation 490, 491–492
effect of on power system 484
in New Zealand 454, 458–460, 475
price impacts of in France 479–499
recharging scenarios 465, 466, 482, 496
Electricity
generation and transfer 162
generation projections 176 see also Traditional
generation
Electrification 5, 32
End-user engagement 47–50
Energy
consumption 43, 87
flows, U.S. 13
world demand for 5, 6
Energy efficiency
demand response and 346, 348
improvements in 6
options 47
supply curve 10
Energy management 202
949
Energy markets see PJM energy markets
Energy Outlook 2011 (Energy Information
Administration) 16, 17
Energy savings see Savings
Energy security 43–44
Energy Service Companies (ESCOs) 52, 55, 57
Energy storage
by applications 115–116, 119, 121
benefits of 18, 125
centralized 117
cost-benefit analysis of 119–122
federally funded 123–124
for microgrids 200
research and development 122–123
technologies 118, 120, 155
thermal 115
worldwide installed capacity 122
Energy tariffs 51
Engagement see also Frameworks for engagement
consumer 265–266
end-user 29–30, 47–50
frameworks for 53–56
Entertainment/convenience 381, 393
Environmental Protection Agency (EPA) 16
Equity
compulsory cost recovery and 86
low income groups and 96–97
solutions for 98–99
ERCOT LaaR responsive reserve deployment 249
ESCOs (Energy Service Companies) 52, 55, 57
Europe
distribution charges approaches in 325
950