Ron Chebra EPIC 2018

LEADING GRID MODERNIZATION TRENDS AND LESSONS LEARNED… WHY SHOULD THIS MATTER TO ME (WSTMTM)?

RON CHEBRA, RCHEBRA@ENERNEX.COM

© 2018 EnerNex. All Rights Reserved. www.enernex.com

WHAT IS HAPPENING AROUND THE COUNTRY  HI – 100% RPS; High PV Penetration;

Grid Modernization Strategy Filing

 MN e21 brings stakeholders

together to learn about innovative pilot projects and activities in MN and beyond.

 CA– 100% RPS; Battery Energy

Storage; ESVE California: “Residential Rate Reform” transitioning all residential customers to opt-out TOU rates,  OH Three phase effort:  Ph. 1 Look at the future  Ph. 2 Exploring Technologies  Ph. 3 Rate making and Regulation  MA – Directed IOUs to file GMP and

 NY – NYREV 40% GHG reduction,

50% RPS; DSIP; Renewables

include Time-varying Rates, and Solar Massachusetts Renewable Target (SMART) 1.6GW compensastion © 2018 EnerNex. All Rights Reserved. www.enernex.com

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LEADING INDUSTRY CHALLENGES Resilience and Aging Infrastructure

Growing Cyber Threats

Tsunami of Field Data

Regulatory Reform

Disruptive Technologies

Aging workforce

Increasing deployment of Storage and DER

Reduction of traditional loads

Transportation Electrification

Electric Utility

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Self-Sufficient Customers (Microgrids)

LEADING GRID MOD TRENDS 1.

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Renewables in front of and behind the meter are real, growing and will impact grid ops.

Storage is becoming a viable grid resource Microgrids are real and are growing both in number and importance Communications is a significant component of any Grid Mod Effort Advanced meters are not just for revenue services – they are an edge sensor and controller Greater data sharing is taking place; advancements in data analytics ADMS is a concept, not just a product Grid Modernization is a journey not a destination Standards can make it easier.

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TREND#1 RENEWABLES IN FRONT OF AND BEHIND THE METER ARE REAL, GROWING AND WILL IMPACT GRID OPS.

Issue: Intelligent Inverters are needed to ensure Grid Stability and Inadvertent Islanding; IEEE 1547-2018 deals with Ride-Through and Grid Support WSTMTM?: Control Room support systems including dSCADA and DERMS; potentially will need to know and how to control these assets.

The EIA projects that solar generation will go from 211,000 MWh per day in 2017 to 260,000 MWh/d in 2018, a 23% increase, and to 290,000 MWh/d in 2019, another 12% increase.

Lesson Learned: HI is experiencing voltage fluctuations in their grid © 2018 EnerNex. All Rights Reserved. www.enernex.com

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TREND #2 STORAGE IS BECOMING A VIABLE GRID RESOURCE

Issue: Storage offers fast response and can help mitigate intermittent resources, offset demand peaks and provide some level of resilience WSTMTM?: Where should these assets be placed?

How does this impact protection/relay settings?

For BTM, one needs to understand and manage economic impacts (arbitrage) and interconnection

Lesson Learned: The California Public Utilities Commission has issued an order requiring the state’s three investor owned utilities to procure 500 MW of behind-the-meter energy storage.

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TREND #3 MICROGRIDS ARE REAL AND ARE GROWING IN NUMBER AND SIGNIFICANCE

Issues: Microgrids are being deployed for greater resiliency but are creating defecting customers, placing interesting challenges on the grid and have financial impacts on everyone (socialization).

WSTMTM?: How should the macrogrid interact with the microgrid?

Who subsidizes inclusion of the grid; standby charges?

What is the new role for the Local Distribution Company?

Lesson Learned: Successful Microgrids exist: PNY, Borrego Springs, BQDM, Montgomery County Police and Fire, McAlpine….

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TREND #3 MICROGRIDS ARE REAL AND ARE GROWING IN NUMBER AND SIGNIFICANCE

Source: EnerNex

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TREND #3 MICROGRIDS ARE REAL AND ARE GROWING IN NUMBER AND SIGNIFICANCE • Finding #1: Business Models for Integrating Distributed Energy Resources and Microgrids are evolving; it is complex; no one size fits all.

• Finding #2: There is a need for reviewing and adapting the current regulatory framework to stimulate DER and Microgrids.

• Finding #3: Military energy landscape for installations and forward deployed bases: business models and desired outcomes towards optimization and resilience are often times different than commercial sector • Finding #4: There are key lessons learned on how some leading utilities are approaching the integration of DER and Microgrids • Finding #5: The increased use of remote assets necessitates a call to improve cyber resilience across all sectors • Finding #6: Battery Energy Storage is poised to be a possible energy game changer.

To obtain the complete report go to: http://www.enernex.com/uncategorized/microgrids-ders-post-summit-report-available-for-download/ © 2018 EnerNex. All Rights Reserved. www.enernex.com

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TREND #4 COMMUNICATIONS IS A SIGNIFICANT COMPONENT OF ANY GRID MOD EFFORT

Issue: Communications networks unlock the potential of lots of data from field assets; each application can have unique requirements WSTMTM?: Who governs what assets are connected to the various networks?

Who defines the requirements for each application?

Many disparate networks can result if a top-down approach is not followed Co-mingling of operational and non-critical data may impose higher security requirements on everything connected Lessons Learned: Break down OT/IT and user silos Š 2018 EnerNex. All Rights Reserved. www.enernex.com

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TRADITIONAL COMMUNICATIONS NETWORKS

Source NIST © 2018 EnerNex. All Rights Reserved. www.enernex.com

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DER ADDS COMPLEXITY

Source NIST © 2018 EnerNex. All Rights Reserved. www.enernex.com

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TREND #5 ADVANCED METERS ARE NOT JUST FOR REVENUE SERVICES – THEY ARE AN EDGE SENSOR AND CONTROLLER

Issue: Outage, voltage measurement and other telemetry data is valuable for distribution operations WSTMTM?: How does this data get routed and delivered?

Who dictates what operations are done at the meter edge?

What impact does this extra data have on the communications network and back office?

Lesson Learned: Plan from beginning, it is difficult to Re-engineer afterward. Avoid Fit-For-Purpose solution

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TREND #6 GREATER DATA SHARING IS TAKING PLACE IN THE BACK OFFICE Issue: New devices with new information is being gathered from the field and being presented to various systems inside the enterprise WSTMTM?: Data harmonization is required to deliver value Where does all of this data go and who and how is it managed?

What are the systems of record for the source of data?

What level of analytics is required for ….

Near-real time for operations?

Post mortem for forensics?

Archived for modeling?

Lessons Learned: Establish Enterprise level structure to oversee:  Application development  Data Structures  User Enablement © 2018 EnerNex. All Rights Reserved. www.enernex.com

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TREND #7 ADMS IS A CONCEPT, NOT JUST A PRODUCT

Issue: Advanced Distribution Management Systems (ADMS) typically integrates dSCADA, OMS, DERMS and in some cases DRMS, leveraging GIS and a Connectivity Model WSTMTM: In many cases legacy systems are in place that perform subsets of an ADMS, how do you integrate them?

What information needs to be exchanged, how frequently and

what is the system of record?

Lessons Learned: Data Integration drives a common interface model, often times an Operational Service Bus. Š 2018 EnerNex. All Rights Reserved. www.enernex.com

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TREND #8 GRID MODERNIZATION IS A JOURNEY NOT A DESTINATION

Issue: Grid Mod is an evolution, often starting with a walk, jog, run approach. The start is often the beginning of other actions WSTMTM?: What is your Grid Mod Roadmap?

How does any given project contribute to or leverage prior work?

What is the big picture?

Lesson Learned: “If you don’t know where you are going, you won’t

Know when you get there” – Yogi Berra

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TREND #9 STANDARDS CAN MAKE IT EASIER

Issue: Developing a system of systems requires adherence to a rigorous set of standards WSTMTM?: What standards should be followed?

What architecture makes the most sense?

What protocol and interchange standards should be followed?

Who are the data police?

Lessons Learned: Avoid proprietary protocols

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ENERNEX CAPABILITIES Our core focus is the grid and we know it from the bottom to the top…

Detailed Analysis

High-Level Strategy

…enabling us to be a “one-stop shop” to meet utilities where they are and take them where they want to go © 2018 EnerNex. All Rights Reserved. www.enernex.com

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WHO ARE WE? Sample of EnerNex’s Capabilities

•

EnerNex Service Lines Strategic Perspective

•

Electric Industry Evolution

• Grid Modernization

Strategic Planning, road maps, program development, use-case and specifications, business case support DER & Intermittent Resource integration, grid modernization, technology plans & support

Demand Response business planning, technical requirements

• • •

Storage & Microgrid technical guidance covering initial feasibility through commissioning Solar & Wind modeling, integration & interconnection studies & recommendations Cybersecurity evaluation of strategies, risks, requirements, & mitigation measures

Key EnerNex US clients

Grid Technology Consulting

Renewable & Distributed Resource Integration & Interconnection

Electric Energy System Engineering & Analysis

Tactical Perspective

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CESI CONSULTING DIVISION: MAIN SERVICES Planning

Transmission

Planning studies & Interconnections Cost-benefit Analyses of New Investments

Distribution

Generation

Engineering

Owner’s Engineering Services for HVAC and HVDC infrastructures

Strategic studies for Smart Grids and Smart Metering projects

Owner’s Engineering for Smart Metering and Smart Grids Deployments

Master Plan of Distribution Networks

Distribution Network Automation

Power Market studies Integration of Conventional/Renewable Power Plants into the Grid

Owner’s Engineering for Renewables and Conventional PP

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Operation

Consultancy services for Power System Operations Consultancy for Asset Management

Assessment and Improvement of Distribution Networks Performances

Consultancy and technical Supplies and in Field Tests for Generation Asset Monitoring

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THANK YOU CONTACT: RON CHEBRA, RCHEBRA@ENERNEX.COM

WWW.ENERNEX.COM

WWW.CESI.IT

@ENERNEX

@CESISPA

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© 2018 EnerNex. All Rights Reserved. www.enernex.com