Why is grid modernisation so complicated? Is there an easy button? | Smart Energy International

Feb 5, 2020 | Article

Published via Smart Energy International Issue I 2020

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Neil Placer
Director of Utility Services Consulting
nplacer@enernex.com
865-218-4600 x8101

 

 

Grid modernisation (Grid Mod) is a complicated topic. To deny so, would be a foolish claim.

The traditional utility grid has often been labelled the “most complicated machine ever built”. Given the charter of Grid Mod is to modernise an already complicated machine, it comes as no surprise that complexity will only compound not lessen. The shear breadth of topics encompassed by an evolving and futuristic two-way power flow grid system is enough to make people throw up their hands in confusion and dismay. Speaking of the future, the concept of Grid Mod is also not static; it involves modernisation of the grid over a continuous time horizon. In essence, Grid Mod never really ends. It is a continuous pursuit. Feeling overwhelmed yet?

Let me pose a few important questions:

If Grid Mod is so complicated, who can possibly help utilities forge a ‘no regrets’ path forward in this new grid era? Is anyone really qualified to do so and are there practical ways to plan for Grid Mod? These are legitimate questions. It is not a self-serving softball thrown up for a ‘hypothetical’ consultant to swoop in and say, “We are here to help.” Before addressing this, let’s step back for a moment to consider and gain some more perspective regarding complex decision making. One of the biggest paradoxes associated with any complex topic is that the best solutions are typically found by seeking to maximise simplicity. When I say ‘simplicity’ I am not implying reductionism or the elimination of key information for the sake of clarity. By simplicity I mean distilling the salient points into an easily understandable and explainable framework that is actionable.

Another way of expressing this is to say that good strategy involves the art and science of taking a complex topic and examining it to find common patterns, groupings, and themes. These insights can then be synthesised into a more digestible perspective to address the complex challenge at hand. If more people are able to see a common pattern, then the strategic direction and corresponding tactical solutions become easier to identify and resolve. This sounds logical enough, but it often tends to be the path less taken. Other typical approaches include:

  1. Delaying in deciding, also known as ‘kicking the can’
  2. Pursuing isolated initiatives based upon various drivers (internally or externally mandated) and
  3. Over-analysing a problem before pursuing a definite direction.

The first two are clear, so let me provide an example of the third. People typically get caught in ‘analysis paralysis’ when they seek to foresee and explain 100% of the details of a multi-pronged tactical approach. A good way to visualise this is to imagine being responsible for designing a large-scale transit system. Would you begin to spec out every vehicle highway on-off ramp detail before understanding which types of transit systems you want to pursue, the specific pathways and focus for each transit system, and the overarching goal of the entire enterprise transit system? What if you were also having to figure out how to build upon an already established infrastructure? Sound familiar? Change a few key terms and suddenly you are talking about the utility industry.

A more practical example can be seen in examining the energy industries’ relentless pursuit to justify the ‘exact value’ of various distributed energy resources (DERs). This quest has often proven to be a fruitless one, analogous to seeking to pin down a ghost by a group of ‘Ghostbusters’ that can’t agree on the best means and approach to catch it. This type of scenario is screaming for simplicity to step in to save time, effort, and frustration. In fact, it already has. If instead of seeking to define various stacked component values of DER, and doing so to the nth degree, couldn’t we simply agree to pursue the ‘least cost, best fit’ approach? In other words, the solution that costs the least amount of money, typically identified via a solicitation process, and that best fits within a comprehensive Grid Mod plan. This difference in strategic vs. tactical approach is not a hypothetical one. This is partially what separates some of the discussions occurring in leading Grid Mod jurisdictions across the country: namely California, New York, and Hawaii.

If we can agree on a ‘least cost’ approach, how do we know which DER is the ‘best fit’? Great question. You first need to step back to find out how various resources fit within a larger architectural landscape. In other words, a holistic enterprise architecture needs to be developed that maps out the current and future landscape being pursued. This step helps identify how all the components fit together both now and going forward. What you will find is that certain DERs begin to emerge to play a larger role than others based on a specific deployment context. Let’s assume for the moment we are referring to midsize solar PV. At this point we can stop arguing about its ‘exact value’ and seek to pursue defined targets (e.g., capacity levels, deployment timelines, individual and aggregate scales of deployment) in a least cost manner. In other words, the Ghostbusters now have a commonly defined target, a clear direction, and can collectively pursue the most prudent options available.

Let me return to the original question posed: Are there realistic and practical answers to Grid Mod? The answer is emphatically ‘yes.’ However, you first must determine if Grid Mod solutions are compatible with your utility. This can be determined by answering several questions:

  • Are you willing to strategically plan at an enterprise (system-wide) level?
  • Can you lead and execute implementation solutions from an organisation-wide perspective?
  • Are you persistent enough to stick with a plan, while remaining open-handed and flexible enough to adapt to a dynamically changing landscape?

It’s easy to see that answering ‘yes’ to these questions requires Grid Mod to be in the DNA of a proactive and forward-leaning utility leadership team. Additionally, the degree of emphasis in response can dictate the desired speed and level of Grid Mod maturity a utility is ultimately pursuing. At the end of the day, the utility industry is on a Grid Mod continuum and each utility must find its place and vehicle on that journey. Many electric utilities share common goals and overarching objectives, but a singular ‘silver bullet’ for Grid Mod does not exist.

The key differences have to do with the desired magnitude of scope, anticipated pace of deployment, and drivers and barriers that are largely impacted by the local context.

Smart Metering (SM) and Advanced Metering Infrastructure (AMI)

Smart Metering and AMI is a transformational process addressing multiple business and technical needs of the utility enterprise. This is more than just smart meters and communications networks; it includes all of the back end applications that can leverage the meter assets, such as outage notification, demand response, call center optimization, disputed billing process handling, pre-payment opportunities, and service connection management methods and procedures, to name a few.

Implementing SM and AMI faces the same business, engineering, and operational challenges as any other across-the-utility information technology endeavors – most notably risk associated with embracing proprietary technology, missing functionality and early obsolescence. Effective SM and AMI development, implementation, and operation relies on a marriage of electric power engineering with information technology expertise: a key component of EnerNex’s expertise and experience.

EnerNex provides an array of engineering and consulting services geared towards intelligent and effective implementation of SM and AMI. This covers all phases of project development, starting with capturing system requirements where our experts leverage a “Use Case” centric view of activities needed to be accomplished and their interaction with systems and other users. Subsequent project steps typically examine other critical areas, such as: modeling of business cases, building inter-department consensus, assembling and assessing system functional requirements and non-functional requirements, developing a system design, hardware and software specifications and standards, complete procurement services including RFI and RFQ process support, supplier rating system, response evaluation methodology, deployment management, and training of office and field personnel.

Demand Response (DR)

Demand response can be as simple as load interruption directed by the energy supplier in response to severe demand requirements, to complex customer defined load management in response to price signals. DR is one of the components of a “Non-Wires Alternative” that many utilities are effectively using to avoid expensive distribution fortification or upgrade.

 

Often the success and/or failure of demand response programs can be linked to program implementation challenges such as rate/tariff design rate structures communication (e.g. price signals) or ineffective incentives used by utilities to encourage customers to accept operational change. The issues of program design, rate structure and customer impact have a tremendous influence on the success or failure of load management initiatives. Demand response has traditionally been used as a tool of the energy industry to ensure system stability. However, the introduction of microelectronics, communications, home automation and the Internet of Things (IoT) has led to the development of cost effective solutions that have the capability to allow the consumer to take control of managing their energy load and ultimately, the price they pay for energy.

EnerNex has the experience and skills to turn your DR program into a successful operational asset and customer engagement process that can deliver value to all parties.

Energy Assurance Planning

Natural and man-made disasters cause an estimated $57B in average annual costs for all parties; large single events have resulted in losses of $100B or more. Events, such as the World Trade Center disaster, Hurricane Katrina, and most recently Hurricane Helene, have demonstrated an acute need to revisit, revise and implement an effective energy assurance plan. Energy assurance plans assess the functionality and interdependencies of buildings and infrastructure systems and the role they play in sustaining service and rapidly restoring critical services to a community following a hazard event.

 

EnerNex assists our clients in developing comprehensive energy assurance plans that mitigate and minimize the impact of energy disruptions. Our experts assess critical infrastructure risks and evaluate appropriate mitigation strategies and can help in developing an effective business continuity/disaster recovery (BC/DR) plan for utilities and your customers.

Microgrid Development

As the electric grid becomes more distributed and interactive, microgrids are playing an increasingly important role in our energy future. Decision makers at military bases, corporate and institutional campuses, residential communities and critical facilities across the world are exploring and implementing microgrids to meet economic, resiliency and environmental goals. Utility-grade microgrids are being deployed to meet transmission constraints, reliability requirements and safe-havens in the event of a significant storm event.

Microgrid_development Graphic steps to support grid modernization

Bringing together a portfolio of distributed energy resources into a controllable, islandable microgrid comes with its own set of challenges. The key to solving these challenges is in architecting a system to support information exchanges between components across well-defined points of interoperability (interfaces) in a technology independent manner. This interoperability ensures that the system is resilient to technology change. Modern systems engineering techniques must be employed to ensure that individual sub‐systems are clearly identified, their functions enumerated, their data requirements known, and the points of interoperability clearly specified, along with the commensurate monitoring, command and control that is needed to ensure grid stability. With such architecture, we can apply best of breed technology available today to support those information exchanges at interface boundaries but be free to upgrade / change the implementation technology later without causing a ripple effect throughout the system.

Enterprise Architecture

Enterprise Architecture focuses on aligning an organization’s business strategies with its anticipated, desired and planned technology enhancements. Enterprise Architecture provides a framework to cost-effectively transition from a current “as-is” technology to future enterprise-wide technological solutions. An effective Enterprise Architecture program aligns business investments with long-term business strategies while minimizing risk and providing superior technological solutions. EnerNex’s key asset is its highly skilled and experienced staff who are closely connected to both the smart grid and EA standards and practices. We provide clients with the insight necessary to operate a fully functioning smart grid, which is flexible, scalable, and vendor independent.

Grid Modernization Roadmap

Utility companies across the globe are continually modernizing their grid. Each company often has different rationales, objectives and priorities. Frequently, smart grid plans are developed for individual, incremental initiatives, rather than as a part of a whole, intelligent and interoperable infrastructure. Planning may be developed around technology choices rather than business and technical requirements. The result of incremental and flawed planning leads to increased cost and risk, lost opportunities, disconnected expectations and dead ends.

 

EnerNex’s approach to grid modernization roadmap development follows a proven, industry-standard approach to grid modernization planning by collaboratively working with the utility to develop a set of prioritized and time-phased grid modernization initiatives unique to its business strategy and objectives. The roadmap developed is holistic, requirements-based, business value driven and actionable. It often builds on and leverages existing applications and infrastructure, and incorporates industry standards to ensure interoperability, flexibility and reduced cost and risk.

Utility Communications

Utility communication and control systems are increasingly interconnected to each other and to public networks and as a result, they are becoming increasingly more susceptible to disruptions and cyber attacks. EnerNex has experience with the various issues relating to development, implementation and optimization including feasibility analysis, design, software development and customization, project management and acceptance. Our expertise extends from being involved in the development of the fundamental standards that support utility communication and automation, through deployment and securing of those resources. EnerNex personnel were heavily involved in development of such standards and protocols as IEC 61850, IEC 60870-5 and DNp3. Our staff played a key role in the EPRI Utility Communication Architecture (UCA) project and the IntelliGrid Architecture effort.

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