Beruflich Dokumente
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18
Selling Consumers
on Meters, Money
26
54
Renewable Energy
and the Grid
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Summer 2011 Energy
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____________ : MAY 2011
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Aclara leads.
Aclara understands that utilities need to do more
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With the strength of our solutions for electric,
gas, and water utilities, we understand your
vision. With our network we will take you there.
Aclara Leads.
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SEL cybersecurity products improve power reliability while enhancing usability and
simplifying operations. Our scalable devices include user-based access controls
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Go to ___________
http://pgi.hotims.com for more information.
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Intermittency is just the beginning of the issues on the table for solar.
22
Security Challenge
Network Infrastructure 30
Considerations for
Smart Grid Strategies
Data creep is under way. Is
your network prepared?
PowerGrid International: ISSN 1547-6723,
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Embrace your power. With our software solutions, you can manage and analyze
grid, customer, nancial and operational data. Simultaneously. Meaning you can
make smarter decisions, faster. Its just one of the many ways we can help you turn
vast amounts of data into insightful, actionable business intelligence.
Visit Itron at CS Week Booth #413 to learn more.
START HERE itron.com
Go to http://pgi.hotims.com for more information.
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POWER-GRID.COM
_______________________________________
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EDITOR IN CHIEF
Teresa Hansen
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SENIOR EDITOR
Kathleen Davis
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Experience
the Power
of Dow Inside
www.dowinside.com
Trademark of The Dow Chemical Company
Dow Wire & Cable is a global business unit of The Dow Chemical Company and its subsidiaries.
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EDITOR IN CHIEF
TERESA HANSEN
6 | May 2011
www.power-grid.com
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Imagine restoring
power after an
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TO THE EDITOR
Dear Ms. Hansen,
I read your From the Editor column in March 2011
POWERGRID International with some interest. I was not
surprised by your reaction to the negative comments
received in response to Onell Sotos article, but I also am
not surprised by the negative comments. I am an energy
professional, having worked as an engineer for a major
utility for 18 years and as a consultant for 22 years, and
I have many negative comments concerning the moves
toward energy conservation and the smart grid.
First and foremost, the average individual energy
consumer sees the move toward energy conservation
as an attempt by utilities to save money at consumers
expense. Most consumers remember the days when
utilities were guaranteed a return on investment in return
for supplying energy when and where needed in any
quantity needed. They remember being encouraged to
use energy to improve their lives. Now they are being
asked to curtail their use of energy and to alter their
lifestyles to make life easier for the utilities. Rather than
doing dishes, washing clothes or using hot water at the
customers convenience, these activities are to be shifted
to the times most convenient to utilities.
The consumer sees no real economic benefit for
himself or herself from energy conservation. In some
cases, utilities note that they receive less income due
NOTES
BY BOB GOHN, PIKE RESEARCH
communications option.
Satellite communication recently
has evolved in improving performance reliability and reducing costs.
Satellite networks are now two-way
communications systems built on
Internet Protocol (IP) with broadband data rates. Next-generation
coding standards have made satellite more reliable and cost-efficient. Satellite networking hardware has been engineered to meet
8 | May 2011
www.power-grid.com
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_____________
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NOTES
next-generation carrier standards,
integrating well with terrestrial wireless and wireline communications.
Advances in satellite communications and in particular very small
aperture terminal (VSAT) technologies have expanded the range of
potential smart grid applications.
These systems use small antennas
(often less than 1 meter), simpler
IP-compatible terminal equipment
and better performance than earlier
satellite systems. These VSAT solutions provide:
Broad geographic coverage,
including areas where standard
wired and wireless technologies cannot reach. Flexible data
rate performance, ranging from
10 | May 2011
www.power-grid.com
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www.nynas.com
May 2011 | 11
www.power-grid.com
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NOTES
(NOCs) during emergency
response or disaster recovery
situations.
Redundant communications at
critical substation and distribution sites to backup terrestrial
communications.
Remote sites are not necessarily
12 | May 2011
www.power-grid.com
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_____________
_________
May 2011 | 13
www.power-grid.com
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NOTES
AUSTIN MONTGOMERY AND DAVID WHITE, CARNEGIE MELLON SOFTWARE ENGINEERING INSTITUTE
ACCESSING AND
stakeholders.
Maturity Level
SMR
OS
SMR:
GO:
TECH:
VCI:
GO
WAM
TECH
OS:
WAM:
CUST:
SE:
CUST
VCI
SE
14 | May 2011
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interaction,
energy
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_________________
_________________________
May 2011 | 15
www.power-grid.com
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NOTES
our progress and strategic
direction. We look forward to
benefiting not just from our own
use of the model but to sharing
experiences and lessons learned
with other utilities in the SGMM
community.
Utilities have done multiple
SGMM assessments, using it as a
standard to measure their progress and refine their strategy and
implementation.
Pepco Holdings Inc. has been
involved with the SGMM since
its inception, said George Potts,
Pepco Holdings vice president of
business transformation.
We recently completed the
survey again, using the SGMM
___________
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Partially Integrated
(2 Functions)
2.2%
Generation, Distribution
2.2%
Generation, Transmission
25.8%
Distribution Only
9%
Transmission, Distribution
10.1%
Distribution, Retail
2.2%
Transmission
Only
4.5%
Generation,
Distribution, Retail
4.5%
Generation,
Transmission,
Distribution
27%
Generation, Transmission,
Distribution, Retail
Fully Integrated
(4 Functions)
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12.4%
Transmission,
Distribution, Retail
V
ND isit u
PO s a
Bo WE t
oth
R
16 2011
06
WI
Partially Integrated
(3 Functions)
May 2011 | 17
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COUNTERING EMOTIONS
A benefit of the numerous smart grid or smart metering pilot programs revving up across the U.S. and
Canada is all that dataconsumption data, especially.
With all that data and timely informationsometimes
down to 15-minute intervalscomes an opportunity for utilities: changing the traditional flat-rate pricing
most work with to something dynamic that works fluidly with a demand-oriented cost structure.
But now utilities are touching peoples money, and
people take that personally. They get scared, weepy,
excited or mad about it, which can spell trouble.
You cannot fight an emotional argument with a logical one, said Suzanne Shelton, president and CEO of
the Shelton Group, an advertising agency focused on
sustainable choices.
She warned utility professionals March 15 at Elsters
18 | May 2011
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Customers said utilities are making things more efficient on the utility side to benefit utilities and to take
more of their money. When utilities tell customers their
bills will be more accurate, customers hear, Were making things so much easier for us to tack on fees and hide
costs. Customers trust utilities to save utilities money
through energy efficiency, but customers think utilities
are ripping off consumers on billing.
Shelton showed a video of a customer control group
that revealed distrust and anger, including a consumer
who said, You ask us to conserve, and we conserve, but
the bill keeps going up.
The utilitys rational response to that customer would
be that shes consuming more, not less. Shelton returned
to the emotional vs. rational argument. Consumers dont
take ownership of their consumption, she said.
REALIZING THE PROBLEM
While the utility industry plans on consumers being
better partners and on realizing the benefits of smart
metering, the smart grid and new pricing, consumers
arent gaga over the idea and might be the biggest hurdle.
It will be difficult to involve customers, said Accenture
consultant Rob Hartway during another conference session on the smart grid vision of the future.
More regulation is coming, especially with rate programs, and utilities must know from where data is coming and to where it is going, panelists said. What will
drive that final smart grid vision isnt about regulation,
the utilities, efficiency or the environment; its whether
consumers accept the smart grid and smart metering as
a good thing that saves them money.
One of the biggest pain points will be customer
acceptance, Hartway said. They will be our energy
partners.
The average consumer will require education and
will be the center of the smart grid argument for
years, he said.
Panelist Wes Sylvester works in smart grid business
development at Cisco.
Reaching all the consumers will be key, he said.
Hartway said customer communication will be especially central to rolling out time-of-use (TOU) and other
variable pricing programs. Without customer acceptance
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that these programs are positive for them and their wallets, utilities will have a hard time moving beyond flatrate pricing, despite having the data and mining options
to do so, he said.
STARTING FROM SCRATCH
One key to rolling out pricing programs will be initiating customer communication before the pricing concept
is even a gleam in the eye, before money evokes emotion.
Westar Energy, a utility serving 684,000 Kansas customers, has regulated rates. It hasnt stopped them from
introducing a smart grid pilot called SmartStar in the
Lawrence area. Some 45,000 meters are slated for installation with completion in the fall. Its a $40 million program, and the company sees potential benefits, including
a future TOU rate program. Now the company is focused
on gathering happy customers, said Kevin Heimiller,
Westar smart grid director.
Were taking a meaningful, yet cautious, approach,
Heimiller said. We need to gauge customer participation
and results or this project could be in trouble.
The full pilot program will be in place by summer
2012, complete with an online customer energy portal
to track use and cost. Westar started with communities
from the beginning, Heimiller said.
The utility pushed the program using positive, grassroots efforts: explaining projects before application,
updating local media, speaking regularly with the city
and organizations, being active in community events
(including a sidewalk sale, where they were the only
people not selling anything) and collaborating with
locals as much as possible.
Well go anywhere and talk to anyone, Heimiller
said.
The opinion of SmartStar was 64 percent positive, a
Westar survey revealed. The utility eventually will apply
that cautious, positive, consumer grassroots approach to
TOU rates.
TOU is a large room of opportunities, Heimiller said,
but we must engage the customer to make sure they like
what we do with that.
Dominion is another utility cautiously approaching
the pricing programs smart metering can offer, said
Mike Gurganus, Dominions manager of advanced
May 2011 | 19
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metering solutions.
Dominion has 2.4 million electric customers in the
Central South, with a primarily residential and commercial base. Dominion has three meter demo areas,
including a 7,000-meter program in Richmond, Va.,
a 50,000-meter program in Charlottesville, Va., and
another 35,000-meter program in northern Virginia
(near major Washington, D.C, suburbs).
The programs major benefit is about consumer cash.
Dominion is working to enhance pricing signals and is
examining flexible bill-pay options, making the emotional side of cash positive.
Communications are key to buy in from stakeholders, Gurganus said.
Dominion worked hard early to demystify smart
meters. Next includes a dynamic-rate pilot, which is
approved and is expected to be in place by late summer.
The goal is to test customers responses to dynamicpricing signals, he said.
We havent offered customers a whole lot yet,
Gurganus said. Were testing out options.
PRICING NOW
U.S.-based Salt River Project (SRP) and Canadian
distribution utility Veridian Connections are involved in
smart meter pricing programs. SRPs program is voluntary. Veridians is mandated by the Ontario government.
Kevin Myers, manager of wholesale settlements at
Veridian Connections, said Canada fosters a cult of conservation and money isnt as large of a factor as it might
be to the average U.S. consumer. In this case, Ontario is
trying to shift load from peak times. The price signals
arent so much about change in the cash sense but more
in the sense of saving energy for the right reason, he said.
Communication becomes more important when
change is forced, Myers said.
Veridian initiated much pre-program communication,
including mailers and door hangers. They often gave
customers explanations and directions to access online
price and data information. The communication effort
involved repetition at each stage.
The company even redesigned its first TOU bill so
the charge would grab customers attention.
As of March, the impact has been minimal, Myers said.
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20 | May 2011
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C A L L F O R P R E S E N TAT I O N S
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The 2012 conference in San Antonio will feature 13 or more conference tracks and more than 300 of the industrys leading
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shaping the utility industry. Submit your presentation online at www.distributech.com.
Presented By:
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Supporting Publications:
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Variable
HMWPE
Classic XLPE
Additive W TR XLPW
1
A LITTLE HISTORY
1,000
2,000
5,000
10,000 20,000
50,000
As commercial wind farms have grown
Estimated Cumulative Experience (km/yr)
as viable alternative energy resources during As seen in Long-life XLPE-insulated Power Cables edited by Harry Orton, of Orton
Engineers International, and Rick Hartlein, of National Electrical Energy
the past 20 years, cross-linked polyethylene Consulting
Testing Research and Application Center (NEETRAC)
(XLPE) has been recognized as the choice
material for medium-voltage power cable construction. TR-XLPE becomes the choice material for wind farm
Its popularity for direct-buried and submarine cable 35kV UG power distribution cables.
is predicated on quality, competitiveness and reduced
long-term operating costs.
QUALITY MATERIALS MATTER
As demonstrated in traditional power distribution
An essential part of long cable life and system
networks (see Figure 1), however, XLPE, although reliability is using quality, raw materials tested
superior to materials such as high-molecular- to perform according to industry specifications.
weight polyethylene (HMWPE), has seen its share Cable manufacturers look for materials that deliver
of performance issues. That led to the development easy processing while producing the performance
100,000 200,000
22 | May 2011
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$10
$8
45
35
25
NPV/Foot
$6
$4
$2
$0
($2)
($4)
40
35
30
25
20
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TECHNOLOGY, STANDARDS
Many raw materials suppliers and cable
makers serve the wind energy market.
Research and development at the front end
of the supply chain is important. Cable
makers, developers, IPPs and utilities
15
should ask about the kind of technology,
clean manufacturing and packaging
techniques, testing and validation that
goes into raw material production. Similarly, end
users should insist on specifying cable that has
gone through rigorous testing and meets at least
the current minimum performance standards set by
utilities. Trusting investment dollars to anything less
is risky.
Many testing institutes work with companies
and their customers to ensure that raw materials
and the cables produced with those materials meet
recognized national and international standards.
These organizations include: National Electric
Energy Testing Research and Applications Center
(NEETRAC), standards development agencies such
as the Association of Edison Illuminating Companies
(AEIC), Insulated Cable Engineers Association
(ICEA) and Cable Technology Laboratories (CTL).
In addition, cable makers are producing cables
that consistently exceed stringent, long-term testing
standards such as AWTT and ACLT in North America,
VDE Standards in Germany and DL/T-1070-2007
in China. These long-term testing methodologies
demonstrate a proven record of ensuring long-life,
reliable cable performance.
No exclusive standards exist for cable performance
May 2011 | 23
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IMPROVEMENTS AT UTILITIES
Utilities also are implementing practices that
include cable inspection, installation and operations.
Wisconsin Public Service (WPS) serves more than
400,000 electric customers in an 11,000-square-mile
area. As discussed in a joint white paper authored by
WPS and Dow Wire & Cable, the
utility has focused on cable reliPROVEN FIELD PERFORMANCE WISCONSIN
PUBLIC SERVICE-HISTORICAL CABLE DATA
ability for 30 years as a preventive
action to delay cable replacement.
Water Trees in XLPE & TR-XLPE
Cable reliability is determined
(Dow 4202) Cables (>0.3 mm)
2,000
by WPS based on strict mateTree-retardant insulation
rial specifications, a comprehenNontree-retardant insulation
1,500
sive plan that monitors incoming
cable quality based on those spec1,000
ifications, and in training cable
installers. It all leads to effective
500
system management.
Similarly, as a way to provide
0
5
7
9
11
13
15
17
19
21
23
mutual value and insight, many
Years
in
Service
Until
Tested
utilities conduct and share field
aging evaluations that provide
And, at a fair price that recognizes the total system
to materials suppliers and cable manufacturers a
broader view of cable and system performance vs. cost, including the potential to specify quality cable
depending solely on accelerated aging tests in a lab. once rather than the additional expense of repair and
A joint evaluation conducted by Alabama Power and replacement over the systems lifetime.
NEETRAC confirm the robustness of TR-XLPE cables
S. Ram Ramachandran is global director of end-use marketing
made and installed in 1985 (see Figure 3). Results
for Dow Wire & Cable, a business unit of The Dow Chemical Co.
indicate that cable life in excess of 40 years easily can
Ram and his team interface with global end users such as utilities,
be projected.
communications groups, off-shore drillers and regulatory boards. He is
ITS TIME TO WORK TOGETHER
For anything worth pursuing, it takes a community
of likeminded people to achieve success. Wind power
25
24 | May 2011
www.power-grid.com
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JOIN US
for the 4th Annual Utilities and Wind Power Seminar
at the AWEA Wind Energy Fall Symposium,
November 2, 2011 in Carlsbad, California.
Attendees wont want to miss the
in-depth presentations and
interactive discussions on the
most important issues facing
electric utilities and wind power
implementation, providing insight
and topical information.
www.awea.org
utility@awea.org today !!
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U.S.
Offshore
Wind
T
he U.S. could see as many as 10 GW of offshore
wind capacity installed by 2020. But it wont be
easy, say industry experts.
There are some 5 GW in planning right now, but
who knows how much of this can be realized, said Dirk
Matthys, the North American chief executive of Spanish
turbine maker Gamesa. He said that growth will hinge
on how fast the government can streamline a new program to approve projects.
Other hurdles such as local opposition and the need
for a new transmission network could also hinder progress, said Matthys.
Nevertheless, he believes it is possible to develop 5-10
GW in the U.S. within the next decade.
Washingtons incentive programs must also be
increased for longer-term planning, observers add.
There is a big lack of long-term incentives which you
need for project planning purposes, said Mark Rodgers,
communications director at Cape Wind, the company
trying to develop the countrys first offshore wind farm
off the coast of Massachusetts.
According to Rodgers, the government has a project
loan program and tax credit scheme in place for this
year. But its uncertain if these programs will be extended
26 | May 2011
www.power-grid.com
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_______________
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www.elp.com
www.utilityproducts.com
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Therefore, to successfully
integrate, utilities need the most
accurate wind power forecast
possible. Inaccurate wind
forecasts cost utilities significant
money through TSO imbalance
penalties, having to fill shortfalls
with spot market purchases or
accessing reserves. Too often,
utilities are playing it safe and
not utilizing the amount of wind
that is available to them, due
to the lack of confidence in the
forecasts. More accurate wind
power forecasts would enable
utilities to utilize more of the
forecasted available power at
lower risk, and even potentially
reduce spinning reserves costs.
Focusing not on wind, but on
wind power, is key. A forecast
system needs to learn the
patterns of the complex terrain
effects and turbine waking
_________
May 2011 | 29
www.power-grid.com
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Control Center
Magnum 10KT Managed Switch
Magnum DX940
Wireless Router
Magnum 6KQ
Managed Field
Switch
IEDs
1588 Precision
Timing Required
Relays
Synchrophasor
RTUs
tric Co.
Elec
tric Co.
Elec
47395672
47395672
tric Co.
Elec
47395672
Voltaic
Batteries
Wind
30 | May 2011
www.power-grid.com
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PERFORMING &
PROTECTING
SUBSTATION STRATEGIES THAT WORK
Hubbell Power Systems offers product solutions for increased
capacity and enhanced reliability. From high voltage transmission
to lower voltage distribution, HPS provides the products you need
to construct, maintain and safeguard the substation in between.
Anderson | CHANCE
Electro Composites | Fargo
Ohio Brass | Quazite | USCO | PCORE
TM
TM
TM
Never Compromise
TM
w w w. h u b b e l l p o w e r s y s t e m s . c o m
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bandwidthprotective routing of
information through protocols such
as Internet Group Management
Protocol (IGMP). Third, new software applications and protocols that
support security, optimize routing
and simplify and streamline data
management must be developed.
To make smart grid work, most data
management, analysis and visualization must be automateallowing
humans to deal with the exceptions.
There is no right way to implement a smart grid. Solutions are as
disparate as the types of utilities and
the regions in which they operate.
A municipally-owned utility in the
Northwest, a public/private collaborative venture in the Southwestern
desert and a rural cooperative in the
mountains of Appalachia all have
different operational challenges as
well as differing political and financial considerations.
As electric utilities contemplate
their strategies for data collection
and management, they need a variety of options. Following are some
critical considerations:
Standards-based implementation,
Bandwidth scalability,
Redundancy,
Wireless communications, and
Powerful and robust software.
Smart grid network infrastructure
needs to be IEC 61850-3 compliant
to support interoperability and scalability, and it needs to be substationhardened to withstand challenging
environments in remote locations.
IEC 61850 is an international standard for communication in power
generation facilities and substations.
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32 | May 2011
www.power-grid.com
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H Y D R O V I S I O N I N T E R N A T I O N A L 2 0 11
JULY 19 22, 2011 | SACRAMENTO, CA | USA
W
W W. H Y D R O E V E N T. C O M
_____________________________________________________
9 2 % of attendees rated the conferen
nce sesssionss above average
9 1 % of attendees rated the event above average in value to their day to da
d y workk
8 9 % of all participa
p nts indicated
d th
t ey will attend HydroVisiion International 2011
*Source: HydroVision International 2010 independent survey
R E G I S T E R T O D AY
Visit W
W W . H Y D R O E V E N T. C O M to Register
________________________________
FLAGSHIP MEDIA
SPONSOR:
HOST UTILITIES:
MEDIA PARTNERS:
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Control Center
Distribution Substation
Distribution Substation
Distribution Substation
Magnum DX940
Wireless Router
Distribution Station
with
Magnum 10KT
Managed Switch
Distribution Substation
34 | May 2011
www.power-grid.com
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www.elp.com
www.power-grid.com
Go to http://pgi.hotims.com for more information.
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1800
1600
1400
1200
1000
800
600
400
200
0
200
10
12
14
16
18
20
Time (Hour)
36 | May 2011
www.power-grid.com
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www.power-grid.com
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38 | May 2011
www.power-grid.com
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www.utilityproductsexpo.com
The Utility Products Conference & Exposition brings the pages of Utility Products magazine to life and brings
together buyers and sellers of power, telecom, CATV and water equipment, providing them an opportunity to
learn firsthand about their industries latest products.
Presented by:
Supporting Publications:
Media Sponsor:
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SIMON SUTTON,
DOW WIRE & CABLE
40 | May 2011
www.power-grid.com
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May 2011 | 41
www.power-grid.com
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YOU KNOW
ITS YOUR
COPPER WIRE.
BUT CAN YOU PROVE IT?
PROOF OF OWNERSHIP OF STOLEN
COPPER WIRE IS THE NUMBER ONE FEATURE
UTILITIES AND LAW ENFORCEMENT NEED IN A
THEFT DETERRENT PRODUCT.
Proof PositiveTM Copper provides immediate traceability through
laser-etched TraceID codes on the center strand. Get the hard
proof you need to prosecute thieves. Call your Southwire
representative today for a product demonstration.
www.southwire.com/proofpositivecopper
___________
Web-based interface
provides ownership
data 24/7
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Advertorial
_______
A SOUTHWIRE
SOLUTION TO
THE COPPER
THEFT EPIDEMIC.
Southwire Company
One Southwire Drive
Carrollton, GA 30119
800-444-1700
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Case Study on
PLC Technology at E.ON
E
44 | May 2011
www.power-grid.com
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_______________
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__________
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46 | May 2011
www.power-grid.com
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www.power-grid.com
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Telecommunication plans
how to restore communications during interruption; and
Data processing planshow
to migrate to backup sites to
run critical applications.
These plans focus on physical
infrastructure and systems, not
customer service. A white paper
released in 2010 by IDC Energy
Insights and sponsored by TELUS
supports this view. IDC Insights
surveyed 60 North American
utilities that are preparing for the
smart grid customer experience.
IDC Insights asked business and
IT respondents to rate their top
three business challenges.
The study revealed that customer service/engagement and
change management accounted
for less than 50 percent of IT
challenges and less than 20 percent of business challenges (see
Figure 1). This indicates that customer service and planning has
traditionally not been a high priority for utilitiesalthough this is
changing.
If a utility relies on a
single contact center, or
even several centers in the
same part of the world, it
can lose its entire ability to
Change management
IT Respondents
0
10
15
(%)
20
25
30
Source: IDC Energy Insights, TELUS-sponsored white paper: Smart Grid Customer Experience, 2010
BENEFITS OF
EXTERNAL PROVIDERS
Growing customer service
demands and the potential for
single-sourced areas (customer
care and power delivery in the
same state) to be impacted by
48 | May 2011
www.power-grid.com
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Cost advantage
(29.8%)
Get access to
specialized skills
(10.6%)
Minimize capital
expenditure
(10.6%)
Improved customer
satisfaction
(10.6%)
Source: IDC Energy Insights, TELUS-sponsored white paper: Smart Grid Customer Experience, 2010
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www.power-grid.com
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50 | May 2011
www.power-grid.com
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STANDARDIZING GLOBALLY
Competition will and should
exist within the global standards
community, but coordination is
also important, particulary in the
current smart grid development
phase.
The smart grid demands a huge
array of standards across power
generation, transmission, distribution, load serving, communications and information technology
(IT) services and end use:
May 2011 | 51
www.power-grid.com
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ADVERTORIAL
restrial technologies.
disaster recovery.
tomer services
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________________
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TARGETED EFFICIENCY
Typically efficiency promotion
programs target two markets:
residential and business. The
residential programs usually use
most of their funds on promoting
mass market efficiency measures
related to lighting and appliances.
The business programs tend to
focus the most of their funds on
Commercial
Space Heating
2,365 trillion Btu 36%
Cooking
190 trillion Btu 3%
Refrigeration
381 trillion Btu 6%
Water Heating
501 trillion Btu 8%
Ventilation
436 trillion Btu 7%
Cooling
516 trillion Btu 8%
Lighting
1,340 trillion Btu 20%
54 | May 2011
www.power-grid.com
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Commercial
Other
501 Trillion Btu 29%
Percentage of energy use in HVAC & Lighting for commercial facilities (EIA)
commercial markets.
Until now, these simpler,
mainly commercial programs
have worked well to reach
utilities energy-savings goals.
But with much of these simpler
measures already harvested by
past programs, it is becoming
more challenging to reach these
goals. When new building
code changes and the required
elimination of T12 lamps are
added, the challenge to reach
goals will become more difficult.
These and other market forces
will force program managers to
provide greater impact within the
large energy use of the industrial
sector. The industrial sector uses
about three times the amount of
energy as the commercial building
sector on average, according
to the U.S. Energy Information
Administration (EIA). What is the
best program strategy to impact
this large industrial energy use?
Energy efficiency programs
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Industrial
Other Non-process
150 trillion Btu 2%
56 | May 2011
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he cybersecurity posture
required in traditional enterprise business systems does not
differ substantially from vertical
market to vertical market. Why,
then, does it have to be different
for electric utilities in the smart
grid age?
The answer to that question is
already understood to be multifaceted, and additional aspects likely
will reveal themselves during the
next decades of smart grid deployment.
HIGHER STAKES
The big difference between the
cybersecurity demands associated
with the smart grid and those of
other communication and information networks is that a smart
grid security breach sometimes
could lead to unsafe situations in
which things could blow up and
people could get hurt.
If a substation is configured
wrongly as a result of erroneous
information being shared, things
could go wrong. The safety of
58 | May 2011
www.power-grid.com
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www.power-grid.com
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ADAPTABILITY TO
RESOURCES
The need for cybersecurity
adaptability is driven by differences in resources across the smart
grid, as well.
IT applications typically run
on desktop computers, servers,
third-party data centers or smart
phones. The compute power
of these devices is tremendous;
most often bandwidth availability
being quite high, as well. Certain
security solutionssay, ones that
apply a strong level of encryption
between information sources so
data cannot be deciphered if interceptedare predicated on that
resource availability.
Now, imagine if we have to
secure all of the small information
devices that are exchanging data
among themselves in the smart
grid. The transformers, breakers,
relays, switches and other substation devices have intelligent electronic devices (IEDs) talking with
one another, as well as with the
substation or area control centers.
The compute power of the devices
and available bandwidth for interconnecting them are relatively low.
Utilities cannot afford to oversecure the smart gridapplying the same, most sophisticated
security services blindly to every
piece of data and application endto-end across the network. The
same security solution for a bandwidth-intensive environment will
not work for devices with very
small compute power and lowbandwidth connections. One size
does not fit all. This means that
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60 | May 2011
011
www.power-grid.com
om
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standards-development effort, in
which SDOs create relationships
with complementary SDOs, will
result in larger-scale production
and deployment of interoperable
products and services and accelerated smart grid implementations around the globe.
There are instances of this occurring. The IEEE P2030 Working
Group, for example, is creating
an architectural-level, system-ofsystems guide to the interfaces on
which the smart grid will depend.
In many cases, suitable interface
standards already exist; in others,
gaps are being identified that eventually must be filled by IEEE, other
SDOs serving the range of industries integrated within the smart
grids sphere, or both. IEEE P2030 is
inviting review and comment from
IEEE members and non-member
expertise to help strengthen consensus around the Draft Guide
May 2011 | 61
www.power-grid.com
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PRODUCTS
Energy Control Product
GO TO _____________
HTTP://PGI.HOTIMS.COM FOR MORE INFORMATION.
Magnalight
MGS-DC-
of
ColorTouch
Commercial,
welding station.
Magnalight
Venstar
GO TO HTTP://PGI.HOTIMS.COM
_____________FOR MORE INFORMATION.
GO TO _____________
HTTP://PGI.HOTIMS.COM FOR MORE INFORMATION.
62 | May 2011
www.power-grid.com
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16 19
ACLARA .................................................. C2
M AY
JUNE
CALENDAR
ALCATEL-LUCENT ........................OUTSERT
AMERICAN WIND
ENERGY ASSOCIATION ........................25
PUBLISHER
Michael Grossman
918.831.9500 michaelg@pennwell.com
COMPUTAPOLE .....................................27
PRODUCTION MANAGER
Daniel Greene
918.831.9401 danielg@pennwell.com
INMARSAT..........................................52-53
NEXANS ..................................................45
ELSTER ................................................... C4
HIPOTRONICS ........................................15
HYDROVISION INTL 2011 ...................33
12 15
N TRON ...................................................17
NYNAS AB..........................................10-11
23
POWERGRID INTERNATIONAL
ARCHIVED WEBCASTS..........................35
11 12
POWERGRID INTERNATIONAL
WEEKLY WRAP UP ..................................28
J U LY
SPRINT .................................................... C3
24 29
May 2011 | 63
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PERSPECTIVES
BY EDWARD COLBY, SENTEC
64 | May 2011
www.power-grid.com
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Download large
data les
Machine-to-machine
data transfers
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SM
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AR
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T GR I D
EN
V
O
R
P
NO
GY
EC
H N OLO
VAPORWARE
With margins getting tighter and consumer demand rising, the last thing
your utility needs is a commitment that cant be achieved.
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SMART
GRID:
THE WORLDS
LEADING UTILITIES
TURN PROMISE
INTO REALITY
NEW COMMUNICATIONS
TECHNOLOGY ENHANCING
RELIABILITY AND QUALITY
RENEWABLES:
TURNING
CHALLENGE
INTO BENEFIT
EPB EMPOWERS
CONSUMERS
WITH FIBER
OPTICS
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__________________________
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ENABLING
TRANSFORMATION
Intelligence. Operational efficiency and flexibility. Unprecedented control. These are the promises that over the past few
years have created so much visibility and anticipation around
the super-efficient generation and transmission initiative
known as the smart grid. These benefits are real, to be sure,
but the smart grid is more than just this alluring set of promises. It's an imperative for all energy stakeholders, and most
particularly, the global power industry.
Just consider the United Nations projection of the global population hitting eight billion by 2030. World energy demand is
expected to increase 40 percent during that period, especially
in developing countries led by China and India, with electricity
needs alone tracking at an astounding 70 percent growth rate,
according to the International Energy Agency (IEA).
going to exert, says Ballout. Were then using our communications technology and data to mitigate these circumstances
and create an environment where consumers and suppliers
are getting what theyreexpecting.
Keeping promises
With those issues addressed, and utilizing a 99.999 percent
reliable IP/MPLS infrastructure and intelligent sensors
throughout the distribution layer and at consumer endpoints,
KAMAL BALLOUT,
GLOBAL VICE
PRESIDENT,
ALCATEL-LUCENT
ENERGY SOLUTIONS
INTEGRATION
DIVISION
SMART GRID: The Worlds Leading Utilities Turn Promise into Reality | 3
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OG&E
INNOVATES
TO IMPROVE
OPERATIONAL
EFFICIENCY
If we put the right
information, the right
pricing and the right
tools in the hands of our
customers, theyll see
the ability to save and
will respond as they see
fit. Ken Grant, OG&E
KEN GRANT,
MANAGING
DIRECTOR,
OG&E
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4 | SMART GRID: The Worlds Leading Utilities Turn Promise into Reality
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NEW COMMUNICATIONS
TECHNOLOGY ENHANCING
RELIABILITY AND QUALITY
Power systems worldwide are being
run harder than ever before. Increased
demand for electricity, the environmental and financial issues associated
with building new generation assets
and the impact of renewable sources
such as wind and solar are creating new
challenges for distribution reliability
andquality.
Todays renewable power resources
are distributed out along the grid at the
far end of the network, including many
that are at domestic premises. These are
effectively uncontrolled by the utility,
pumping energy into the network and
affecting the voltage levels, notes Peter
Johnson, Vice President Smart Grids,
Alcatel-Lucent. Additionally, things like
air conditioning, data centers and the
overall demand from new office buildings are all pushing daytime and particularly summer demand to new peaks,
causing fluctuations in power quality
and even outages.
Solutions are at hand. Using a robust
communications infrastructure with
smart meters at the periphery of the
grid with sensors embedded throughout,
leading power suppliers are effectively
addressing these issues accurately
forecasting pending instability, reacting
in real time to outages, and creating a
more balanced and reliable system.
This is nothing new in the high-voltage
group, says Johnson, but now were
talking about doing it in the lower
voltage parts of the distribution network
to transformers, substations, offices
and homes. The objective is to measure,
inform and manage.
World electricity
consumption increase
2007-2035: 87%
Smart grid
reliability benefits
SMART GRID: The Worlds Leading Utilities Turn Promise into Reality | 5
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RENEWABLES:
TURNING
CHALLENGE
INTO BENEFIT
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6 | SMART GRID: The Worlds Leading Utilities Turn Promise into Reality
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EPB EMPOWERS
CONSUMERS
WITH FIBER OPTICS
From on-demand movies to boarding passes delivered on smartphones,
this is the age of technology-enabled
consumer empowerment. This trend
extends to the heart of the smart grid,
where systems now being deployed are
capable of knowing when a family takes
showers in the morning, runs the dishwasher after the evening meal, plugs
in an electric car, and does laundry on
Saturday afternoons, enabling customers
to better understand and control their
energyusage.
Information is power
Real-time usage information from smart
meters will allow EPBs customers to get
the information and control they need
to better manage consumption, including
the option of turning off certain devices
when not in use, or turning on appliances when power is less expensive.
In the meantime, the utilitys data
management systems will enable
dynamic energy pricing while automating outage management and energy
purchasingsystems.
The financial benefits from this initiative are substantial for both EPB and its
community. Leveraging the same FTTH
infrastructure, EPBs telecom department can now offer additional advanced
voice, video and interactive communications services based on the AlcatelLucent industry-leading Triple Play
Service Delivery Architecture (TPSDA).
Revenue generated for those offerings
is expected to completely pay for the
FTTH deployment.
EPB of Chattanooga:
By the numbers
Customers: 170,000*
Coverage area: 600 squaremiles*
Projected outage decrease
by2012: 40%*
Customer savings on energy:
US$300 million over 10 years**
Community benefits:
US$600 million over 10 years***
SMART GRID: The Worlds Leading Utilities Turn Promise into Reality | 7
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