Security Benefits of Energy R

1
Security Benefits of Energy RD

• Presented to the
• Conference on Estimating the Benefits of
  Government-Sponsored Energy Technology RD
• March 4, 2002
• Margie Tatro
• Director,
• Energy and Transportation Security Center
• Sandia National Laboratories
• [phone]

Sandia is a multiprogram laboratory operated by
Sandia Corporation, a Lockheed Martin
Company,for the United States Department of
Energy under contract DE-AC04-94AL85000.
2
Issues to Explore

• Energy Security Definition to Consider
• Measures of Energy Security
• Possible Benefits Indicators

3
What is Energy Security?
Energy is available WHEN needed at a predictable
price.

• Measured by
• Investor and consumer confidence
• Time to restore service following a disruption
  and other reliability metrics
• Secondary indicators
• Energy trade deficit, imports versus domestic
  production, diversity of sources and delivery
  mechanisms, and others
• Includes Physical and Cyber Perspectives

4
How Can We Measure Energy Security?

• Confidence feeling, must poll people
• Price/earnings ratio for investors
• Reliability can measure, for electricity
• Transmission reliability (voltage, frequency)
• Wholesale market performance (price deltas,
  transmission load relief)
• Customer outages (number of customers, unserved
  energy, economic impact, time to restore service)
• Diversity of supply fraction from each fuel
  source, can measure
• Diversity of delivery mechanisms - options, can
  measure
• Number of cyber attacks can measure

5
Frequency Excursions are One Measure Electric
Power Reliability
SOURCE Report from NERC Performance Subcommittee
to Operating Committee 1Q2001
Over frequency
Under frequency
6
Energy Outages Impact Many Other National
Operations
Oil / Gas
Compressor Station
Fuel Supply
Communications
Switching Office
End Office
Transportation
Traffic Light
Water
Transport
Emergency Services
Substation
Reservoir
Emergency Call Center
Hospital
Fire station
Ambulance
Banking Finance
Bank
Continuity of Govt Services
ATM
Check Processing Center
Pension/Service Payments Treasury Dept.
Federal Reserve
Military Installations
Legislative Offices
7
COMPARISON OF ECONOMIC IMPACT
-------- Houston, Scenario 1 - Series of Small
Disruptions - One Month Apart/Short but
Regular -------- Houston, Scenario 2 -
Short-Lived but Large Disruption
8
The Challenge Energy Security Measures are
Influenced by Factors Other Than DOE Activities

• Benefit Options to Consider
• Ask infrastructure owners and operators if DOE
  efforts have helped them
• Follow confidence, reliability, diversity metrics
  and watch for trends in areas where DOE RD is
  underway
• Others?