Kristina M' Johnson

1
A Vision for Our Energy Future

• Kristina M. Johnson
• Under Secretary for Energy
• Denver, Colorado
• October 20, 2009

2
U.S. Clean Energy Economy The Industrial
Revolution of Our Time
Create sustainable jobs Provide Energy
Security Preserve the planet
The nation that leads the world in creating a
new clean energy economy will be the nation that
leads the 21st century global economy. --
President Obama
3
Sustainable Energy Goals

• Develop an energy portfolio strategy to
• Reduce our dependence on oil imports
• (2/3 of our 21 Mb/day consumption)
• Reduce green house gas emissions
• (7 tonnes of CO2 per year)
• Create and sustain careers in clean energy
• (3-5 jobs per MW nameplate electricity)
• Keep energy affordable

4
Energy Portfolio Goals for 2030

• Keep Energy Growth lt1 (.5)
• Reduce Fossil Fuel-based Electricity lt35
• Increase Renewable Energy to gt36 (Wind, Solar,
  and Biomass)
• Restart, Upgrade and Increase Clean Energy
  Baseload Electricity to gt33 (Nuclear, Hydro,
  Geothermal)

5
Recovery Act will double non-hydroelectric
renewable generation
Billions of kilowatt hours
Source EIA -- An Updated Annual Energy Outlook
2009 Reference Case
6
Solar energy sources are highly variable
Output from an 8MW solar PV panel in Colorado on
9/4/08
81 drop in 5 minutes
High variability due to clouds
Xcel Energy Alamosa System
7
U.S. is falling behind in the solar power race
U.S.
Worldwide shipments of Solar Photovoltaics in
Megawatts
8
Wind requires substantial balancing reserves
9
Seven Percent of the U.S. Population Lives in
the Top Ten States for Wind
Blue - high wind potential Red - large demand
centers Green - little wind and smaller demand
centers. Result Renewables development
requires transmission expansion
NERC, April 2009
10
To meet our energy challenge and create a 21st
century energy economy, we need a 21st century
electric grid
Think about it. The grid that powers the tools
of modern life -- computers, appliances, even
BlackBerries -- looks largely the same as it did
half a century ago.
We'll fund a better, smarter electricity grid
and train workers to build it -- a grid that will
help us ship wind and solar power from one end of
this country to another. --President
Barack Obama
11
The Smart Grid What is it?

• Dynamic optimization of grid operations and
  resources
• Incorporation of demand response and consumer
  participation

Measurement
Visualization
Automation
12
Smart Grid is a key enabler to Grid Modernization
Renewable Integration Addressing variability of
large-scale wind and solar generation
Energy Storage Providing regulation and load
shaping
Load Management Making consumer demand an
active tool in reducing the peak
System Transparency Seeing and operating the
grid as a national system in real-time
Cyber Security and Physical Security Securing
the physical infrastructure and two-way
communication and data exchange
13
Variable Generation Affects Grid Operations
No wind
11 renewables
23 renewables
35 renewables
14
Smart Grid is a key enabler to Grid
Modernization
Renewable Integration Addressing variability
and intermittence of large-scale wind generation
Energy Storage Providing regulation and load
shaping
Load Management Making consumer demand an
active tool in reducing the peak
System Transparency Seeing and operating the
grid as a national system in real-time
Cyber Security and Physical Security Securing
the physical infrastructure and two-way
communication and data exchange
15
Energy Storage is critical to grid operations
16
Energy Storage is Critical to Grid Operations
17
Pumped Storage

• Pumped Storage can provide
• Rapid response in pump-up and generating modes
  to offset wind generation variability
• Store wind energy during lower value periods
• Prevent wind curtailment and avoid new
  transmission investments

Grand Coulee Dam

• Additional capital and operating costs have to
  be compared to the cost of spinning reserves
• Energy losses (20) related to storage

18
Smart Grid is a key enabler to Grid
Modernization
Renewable Integration Addressing variability
and intermittence of large-scale wind generation
Energy Storage Providing regulation and load
shaping
Load Management Making consumer demand an
active tool in reducing the peak
System Transparency Seeing and operating the
grid as a national system in real-time
Cyber Security and Physical Security Securing
the physical infrastructure and two-way
communication and data exchange
19
Peak Reduction is Paramount
Hourly Loads as Fraction of Peak, Sorted from
Highest to Lowest
90
Generation
75
Distribution
gt25 of distribution and gt10 of generation
assets are needed less than 5 of the time (100s
of billions of investments)
20
Achieving peak demand reduction requires a Smart
Grid and dynamic pricing
Light blue reductions through dynamic pricing
alone Dark blue reductions through dynamic
pricing and Smart Grid technology
Universal advanced metering and dynamic pricing
All Demand Response tools (e.g. direct load
control) fully deployed
Expanded current best practices
Business as usual
Source FERC, June 2009 National Assessment of
Demand Response Potential
21
Empowering the Consumer
Every consumer must be served, from committed
energy savers to the terminally uninterested.
Consumers can save more with less effort, with
substantial control over how these systems impact
their daily lives
Demand response programmability must be as easy
and automatic as possible.
22
Automated Demand Response Saves Capacity and
Energy
Electric load profile for PGE participants on
8/30/2007
23
Empowering Residential Distributed Energy
Consumer empowerment is about more than just
expanding dynamic rates and demand response.
Energy fed back to the grid can be measured at
the same frequency and accuracy as it is
delivered, making real progress towards energy
exchange rather than just energy consumption.
24
Is the grid ready for Plug-In Hybrids?

• Plug-in Hybrid Vehicles
• 2009 Fisker Karma S 2010 Toyota
  Plug-in Prius2010(?) BMW Mini E2010 Saturn
  VUE2011 BYD F3DM 2012 Ford 2012
  Volvo

• Battery Electric Vehicles
• 2010 Chevy Volt EREV2010 Chrysler
  EV2010 Miles EV2010 Mitsubishi iMiEV
  BEV2010 Nissan BEV2010 Ford Battery
  Electric Van2010 Tesla Roadster Sport EV

Source Electric Drive Transportation Association
(Updated June 1, 2009)
25
Recovery Act will set the stage for widespread
deployment of plug-in hybrid electric vehicles
Recently we made 2.4 billion investment in
advanced batteries the largest battery
investment in world history
Today, 99 percent of batteries for hybrids are
made in Japan
26
Typical Charging Scenarios

• Filling the Valley

(a) Optimal Charging???
Source Lemoine, Kammen, and Farrell 2008. An
Innovation and Policy Agenda for Commercially
Competitive Plug-In Hybrid Electric Vehicles
27
Smart Grid is a key enabler to Grid
Modernization
Renewable Integration Addressing variability
and intermittenceof large-scale wind generation
Energy Storage Providing regulation and load
shaping
Load Management Making consumer demand an
active tool in reducing the peak
System Transparency Seeing and operating the
grid as a national system in real-time
Cyber Security and Physical Security Securing
the physical infrastructure and two-way
communication and data exchange
28
Phasors could have prevented the Northeasts 2003
blackout
Phasors would have given grid operators 30-40
minutes warning that problems were developing in
Northern Ohio
Estimates of 2003 blackouts cost 6 10
billion (U.S. only)
29
Goal sensor-based operations and dynamic modeling
Frequency and response to system events
Grid stress - Angle separation
30
Challenges

• Interoperability Standards
• Transmission Planning and Development
• Phasor Data Sharing/Data Ownership
• Educated Workforce

31
Progress on Smart Grid Interoperability
Standards is Critical
10 million in Recovery Act funding transferred
to NIST
Weve hosted two Smart Grid Interoperability
Standards workshops
32
The Recovery Act invests in grid modernization
Grid Modernization- 4.5 billion for grid
planning, Smart Grid demonstrations, and
investment grants
WAPA and BPA total of 6.5 billion in borrowing
authority
750 million for transmission loan guarantees
33
Strengthening the Work Force
100 million To train a new generation of
utility workers
44.2 million in awards to State Public Utility
Commissions To hire or retrain PUC staff as
utilities ramp up ARRA activities
34
Questions?
35
Smart Grid is a key enabler to Grid
Modernization
Renewable Integration Addressing variability
and intermittenceof large-scale wind generation
Energy Storage Providing regulation and load
shaping
Load Management Making consumer demand an
active tool in reducing the peak
System Transparency Seeing and operating the
grid as a national system in real-time
Cyber Security and Physical Security Securing
the physical infrastructure and two-way
communication and data exchange
36
Energy portfolio goals for 2030

• Keep Energy Growth lt1 (.5)
• Reduce Fossil Fuel-based Electricity to lt35
• Increase Intermittent Renewable Energy to gt33
• Restart Clean Energy Baseload Electricity to gt33
• Nuclear increase from 19 to gt25
• Hydroelectric increase from 6.6 to gt13
• Geothermal increase to gt 40 GW (7)
• Biopower increase to 90GW (5)
• 38 Co-firing
• 36 Direct-firing
• 26 On-site CHP

37
BPA is installing 14 anemometers for next-hour
wind forecasts to adjust generation and make more
efficient use of combined wind, hydro and other
resources. They are also working on Dynamic
Transfer to reliably let a power plant in one
balancing authority supply reserves to another
balancing authority.
38
Control systems for critical applications must be
designed, operated and maintained to survive an
intentional assault with no loss of critical
function

• Advanced Tools/Technology
• Encryption
• Authentication
• Diagnostics
• Monitoring
• Forensic Analysis

39
Reduce transmission congestion another grid
priority
Aug 2006 DOE Congestion Study
40
Does the U.S. require an Extra High Voltage
Overlay?