Table Of ContentEnergy
Infrastructure, Technology, Solutions
and
“The authors have provided a great collection of information from research and
practical application about the need for upgrading the electric transmission and
distribution system to a ‘smarter grid’ utilizing technology to provide a new level of
visibility and control of the system.”
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—Thomas F. Weaver, American Electric Power, Columbus, Ohio, USA
What exactly is smart grid? Why is it receiving so much attention? What are
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utilities, vendors, and regulators doing about it? Answering these questions aanndd
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technologies, and discusses barriers and critical factors for a successful smart ,
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grid from a utility, regulatory, and consumer perspective. It summarizes recent n
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smart grid initiatives around the world and discusses the outlook of the drivers
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and technologies for the next-generation smart grid. Exploring the current
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situation and future challenges, this book provides a global perspective on how l
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the smart grid integrates twenty-first-century technology with the twentieth- t
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K11429
ISBN: 978-1-4398-2905-9
90000
9 781439 829059
Infrastructure, Technology,
Solutions
and
Electric Power and Energy Engineering
Series Editor
John D. McDonald
Smart Grids: Infrastructure, Technology, and Solutions, Stuart Borlase
Infrastructure, Technology,
Solutions
and
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
Cover art: The editor would like to thank Rick Giammaria (courtesy of Pepco Holdings Inc) for providing the substation control
room photo and Alstom Grid for providing the EMS control room photo for the book cover artwork.
CRC Press
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Contents
Foreword...........................................................................................................................................vii
Preface...............................................................................................................................................ix
Acknowledgments..............................................................................................................................xi
Editor..............................................................................................................................................xiii
Contributors......................................................................................................................................xv
Chapter 1 Overview.of.the.Electric.Utility.Industry.....................................................................1
Chapter 2 What.Is.Smart.Grid,.Why.Now?.................................................................................15
Chapter 3 Smart.Grid.Technologies.............................................................................................61
Chapter 4 Smart.Grid.Barriers.and.Critical.Success.Factors....................................................497
Chapter 5 Global.Smart.Grid.Initiatives....................................................................................531
Chapter 6 Smart.Grid:.Where.Do.We.Go.from.Here?...............................................................549
v
Foreword
I.am.proud.to.serve.as.Chairman,.President,.and.Chief.Executive.Officer.of.Pepco.Holdings,.Inc..
(PHI),.a.utility.holding.company.with.power.delivery.companies.that.have.served.southern.New.
Jersey,.the.Delmarva.Peninsula,.and.the.Washington,.District.of.Columbia,.area.for.more.than.100.
years..While.we.have.served.the.nation’s.capital.since.the.Cleveland.administration,.the.technolo-
gies.of.the.late.1800s.are.not.that.much.different.from.what.we.see.in.today’s.electric.system..Copper.
cable,.wooden.poles,.transformers,.and.meters.were.as.integral.to.the.system.then.as.they.are.now.
Today,.the.industry.is.changing.that.picture.and.focusing.on.building.a.smarter.grid.that.lever-
ages.a.wide.range.of.digitally.based.advanced.technologies.that.will.automate.many.electric.system.
functions..This.emerging.“smart.grid”.has.been.described.as.the.convergence.of.electric.system.and.
information.technologies..In.other.words,.Thomas.Edison.meets.Bill.Gates:.the.electric.system.that.
has.served.us.so.well.since.the.nineteenth.century.will.be.integrated.with.digital.technologies.to.
provide.utility.customers.the.enhanced.information,.services,.and.reliability.that.are.so.critical.in.
the.twenty-first.century.
The.foundation.of.the.smart.grid.starts.with.an.Advanced.Metering.Infrastructure.or.AMI..
Through.the.installation.of.smart.meters.and.supporting.technologies,.customers.will.have.access.
to.enriched.energy.data;.renewable.generation.and.electric.vehicles.will.be.more.easily.integrated.
into.the.electric.grid;.and.innovative.rate.structures.and.programs.will.be.implemented.that.enable.
customers.to.assume.greater.control.of.their.energy.consumption.
In.this.new,.smarter.world,.customers.will.be.able.to.view.their.energy.usage.via.mobile.devices,.
the.Internet,.or.special.home.monitors,.and.the.utility.will.do.the.same.through.a.meter.data.man-
agement.system..And,.instead.of.one.total.consumption.figure.once.a.month,.customer.hourly.data.
will.be.transmitted.wirelessly.multiple.times.a.day,.or.on.demand.if.needed..The.meter.will.also.
serve.as.a.grid.sensor,.which.can.help.to.detect.power.fluctuations.and.outages.and.be.used.to.
remotely.connect.or.disconnect.service.
While.a.smart.grid.necessarily.entails.smart.meters,.it.involves.far.more.pervasive.technologies.
across.the.entire.grid—a.supporting.communications.infrastructure,.and.an.array.of.intelligent.
devices.on.distribution.and.transmission.systems.and.within.substations,.which.are.able.to.isolate.
electrical.problems,.make.automatic.power.adjustments,.and.speed.overall.restoration..Ultimately,.
a.smart.grid.creates.an.advanced.analytical.platform.for.better.operational.awareness.and.real-time.
optimization.of.the.distribution.and.transmission.network..All.this.new.technology,.in.short,.will.
create.a.“smarter”.electric.grid.
Back.in.2006,.in.response.to.the.critical.energy.and.environmental.challenges.facing.the.nation.
and.the.world,.PHI.began.to.promote.a.vision.of.an.alternative.energy.future..We.referred.to.this.
vision.as.our.“Blueprint.for.the.Future”—a.partnership.between.the.utility.and.its.customers.that.
leverages.technology.and.information.to.drive.energy.efficiency.and.increase.reliability..We.envi-
sioned.a.world.where.customers.would.be.empowered.to.manage.their.energy.use.and.costs,.gov-
ernments.could.reach.energy.reduction.goals,.and.all.would.benefit.from.fewer.carbon.emissions.
and.a.cleaner.environment..At.the.time,.one.could.not.look.at.the.nation’s.energy.companies,.state.
regulatory.and.legislative.bodies,.and.federal.agencies.and.see.strong.alignment.or.coalescence.of.
thought.on.the.“smart.grid”.topic.
Now,.as.I.write.this.in.2012,.it.is.inspiring.to.look.back.and.see.how.much.has.changed.in.our.
national.smart.grid.discussion..Through.the.efforts.of.advocates.and.early.adopters—and.particularly.
the.leadership.of.President.Obama’s.administration—the.smart.grid.has.been.transformed.from.a.the-
oretical.notion.to.a.practical.reality.that.is.increasingly.recognized.as.an.essential.step.into.the.future.
vii
viii Foreword
It.is.important.to.recognize.that.although.technology.is.critical.to.the.smart.grid,.in.isolation.it.
is.not.transformational..To.fully.achieve.the.benefits.of.the.smart.grid.requires.a.strong.partnership.
between.utilities,.government,.regulators,.and.the.public—and.new.energy.behaviors..Smart.meters.
do.not.reduce.carbon.emissions,.people.do.by.utilizing.enhanced.energy.information,.responding.
to.price.signals,.and.leveraging.financial.incentives.that.will.help.us.collectively.achieve.the.goals.
of.energy.independence.and.emissions.reduction..The.concept.of.transformation.is.essential.to.the.
smart.grid,.and.it.is.a.theme.that.I.cite.often..Historically,.the.relationship.between.the.utility.and.the.
customer.has.been.transparent..People.are.used.to.the.daily.“miracle”.of.electricity—of.flipping.a.
switch.to.create.light.or.pushing.a.button.to.activate.a.TV,.computer,.or.other.electronic.device.that.
helps.our.society.function..Going.forward,.customers.will.have.a.wide.variety.of.tools.to.manage.
their.energy.use,.which.help.to.reduce.energy.costs.and.meet.the.environmental.and.energy.chal-
lenges.before.us.
The.energy.industry.is.at.the.center.of.this.transformation—optimizing.the.integration.of.exist-
ing.and.future.energy.supplies,.including.the.connection.of.renewables;.leveraging.demand.side.
resources.such.as.dynamic.pricing.and.direct.load.control.of.customer.appliances;.and.offering.
customers.access.to.enhanced.energy.information.and.tools.to.lower.energy.use.to.help.keep.supply.
and.demand.in.balance..Exciting.opportunities.also.are.forming.in.the.electric.transportation.mar-
ket,.where.utilities.are.being.called.upon.to.develop.charging.infrastructures.for.expected.growth.
in.plug-in.electric.vehicles..In.sum,.fertile.ground.is.being.tilled.for.growing.new.business.partner-
ships,.products,.and.services.
Of.course,.with.change.comes.challenge..When.the.smart.grid.is.fully.deployed.and.customers.
take.advantage.of.its.capabilities,.electricity.sales.growth.will.be.significantly.affected..Statistics.
show.that.even.now,.in.many.regions,.energy.consumption.has.declined.in.absolute.terms..Reduced.
energy.use.is.a.good.thing,.but.regulators.need.to.recognize.that.the.cost.of.delivering.power.is.
relatively.fixed,.regardless.of.consumption.levels..Regulatory.mechanisms.need.to.be.developed.that.
recognize.this.reality.and.that.recognize.the.importance.of.financially.healthy.utilities.
As.you.will.discover.in.Chapter.1,.the.utility.industry.is.arguably.the.most.regulated.in.existence..
Understanding.the.nature.of.this.utility–regulator.relationship.is.essential.to.a.sufficient.understand-
ing.of.the.industry..And.a.sufficient.understanding.of.the.industry.is.essential.for.all.stakeholders.
seeking.to.advance.smart.grid.adoption.
Many.in.the.industry.define.the.smart.grid.by.the.myriad.evolving.technologies.that.we.are.
evaluating,.designing,.and.implementing..I.would.suggest.to.you.that.the.smart.grid.transformation.
can.best.be.advanced.if.we.define.it.less.by.the.technology.and.more.by.the.benefits.that.the.technol-
ogy.brings:
Lower.energy.use
Better.reliability
Faster.restoration
New.jobs
New.markets
The.smart.grid.is.the.best.approach.to.meeting.our.industry’s.challenges.and.customer..expectations—
the.shortest.distance.between.our.current.state.and.our.desired.future..As.we.enter.the.second.decade.
of.the.new.century,.we.have.a.better.collective.understanding.of.what.this.means.and.of.what.can.be..
I.am.as.optimistic.as.ever.about.the.benefits.to.be.realized.through.our.collective.efforts.
Joe Rigby
Chairman, President, and Chief Executive Officer
Pepco Holdings, Inc.
Washington, District of Columbia
