AEP/EPRI Smart Grid Demo

Virtual Power Plant Simulation

Project Overview Smart Grid Advisory Meeting June 23, 2009 Tom Jones / Tom Walker

AEP / EPRI Virtual Power Plant Simulator

Virtual Power Plant Simulation Project Virtual Power Plant (VPP) VPP Simulation (VPPS) Real world components Practical application of VPPS Conclusion

Smart Grid Advisory Meeting 06/23/09

22

AEP / EPRI Virtual Power Plant Simulator

Our Operational Mission

Our Operational Mission

Sustaining the Balance of Energy Supply and Demand in Real Time

Smart Grid Advisory Meeting 06/23/09 33

AEP / EPRI Virtual Power Plant Simulator

Before Smart Grid:

One-way power flow, simple interactions

Smart Grid Advisory Meeting 06/23/09

44

AEP / EPRI Virtual Power Plant Simulator Growing complexity = challenge and opportunity

Central Generating Station

Step-Up Transformer

Gas Turbine

Transmission Substation Distribution Substation

Diesel Engine

Transmission Substation

Cogeneration Turbine

Microturbine

Photovoltaic systems

Fuel cell

Commercial

Industrial Residential
Cogeneration

Commercial Wind Power

Smart Grid Advisory Meeting 06/23/09

55

AEP / EPRI Virtual Power Plant Simulator

Enter The Smart Grid

Two-way communication network Smart meters at customer locations Remote control of end-use devices Information exchange between customers and utility Remote monitoring and control of distribution line devices Integration and control of distributed energy resources

Smart Grid Advisory Meeting 06/23/09

66

AEP / EPRI Virtual Power Plant Simulator

1.Power System Infrastructure

Next Generation of Operators, Planners, and Engineers

Central Generating Station

Step-Up Transformer

2. Communications and Information Infrastructure

Gas Turbine

Transmission Substation Distribution Substation

Diesel Engine

Transmission Substation

Cogeneration Turbine

Microturbine

Photovoltaic systems

Fuel cell

Commercial

Industrial Residential
Cogeneration

Commercial Wind Power

Smart Grid Advisory Meeting 06/23/09

77

AEP / EPRI Virtual Power Plant Simulator

After Smart Grid:

Two-way power flow, multi-stakeholder interactions
Smart Grid Advisory Meeting 06/23/09 88

AEP / EPRI Virtual Power Plant Simulator

Putting It All Together: The Virtual Power Plant

Storage Residential Industrial

Commercial

Smart Grid Advisory Meeting 06/23/09

99

AEP / EPRI Virtual Power Plant Simulator

Putting It All Together: The Virtual Power Plant Simulator

Storage

Residential Industrial

Commercial

Smart Grid Advisory Meeting 06/23/09

10 10

AEP / EPRI Virtual Power Plant Simulator

Virtual Power Plant Simulation Project Objective

Assess the functionality, performance and benefits of a fully integrated and robust smart grid as a Virtual Power Plant, from end-use to RTO, by leveraging Real system and device information and data with a comprehensive modeling and Simulation tool

Smart Grid Advisory Meeting 06/23/09

11 11

AEP / EPRI Virtual Power Plant Simulator

Tariff Demand Storage PHEV Fossil DG Solar Wind Fuel Cell External Output $ (e.g. Cost)
Flat Rate No Control Daily Cycle On-Peak Charge Backup Only Cloudy Calm Min Base Supply Backup Only Real Time Pricing Critical Load Only Instant Response On-Peak Discharge On-Peak Supply Sunny Windy Max Base Supply Full Demand Supply

24.57

Month

Year
Energy Deficiency

Internal Power

Supply Demand
Surplus Energy

Optimize for Cost Optimize for Efficiency

Daily Time Cycle

Smart Grid Advisory Meeting 06/23/09 12 12

AEP / EPRI Virtual Power Plant Simulator

Virtual Power Plant Simulation Project Objective

Assess the functionality, performance and benefits of a fully integrated and robust smart grid as a Virtual Power Plant, from end-use to RTO, by leveraging Real system and device information and data with a comprehensive modeling and Simulation tool

Smart Grid Advisory Meeting 06/23/09

13 13

AEP / EPRI Virtual Power Plant Simulator

Resource Types for Integration

Distributed energy resources that are in operation or under test across AEP will be assessed on location and will be virtually installed on the South Bend VPPS foundational system, including: MW-scale battery installations (e.g. sodium sulfur or NaS), kW-scale flat panel photovoltaic systems (e.g. roof-top), kW-scale concentrating solar systems (electrical and thermal), kW-scale natural gas fired reciprocating engines (with CHP) Plug-in hybrid electric vehicles, Ice Bear air conditioning system, kW-scale wind turbines, kW-scale community energy storage systems, and others.
Smart Grid Advisory Meeting 06/23/09 14 14

AEP / EPRI Virtual Power Plant Simulator

Virtual Power Plant Simulation Project Objective

Assess the functionality, performance and benefits of a fully integrated and robust smart grid as a Virtual Power Plant, from end-use to RTO, by leveraging Real system and device information and data with a comprehensive modeling and Simulation tool

Smart Grid Advisory Meeting 06/23/09

15 15

AEP / EPRI Virtual Power Plant Simulator

Regional Market Structure

Wholesale PJM Time-Stamped Pricing Aggregated Time-Stamped VPP Resources Calculate Wholesale Market Value of VPP Retail (South Bend Pilot) Summer on-peak period during the weekday for the months of May through September with an associated off-peak rate during the remaining hours Incentive for participation in thermostat control program

Smart Grid Advisory Meeting 06/23/09

16 16

AEP / EPRI Virtual Power Plant Simulator

Real Time Wholesale Price From RTO

Smart Grid Advisory Meeting 06/23/09 17 17

AEP / EPRI Virtual Power Plant Simulator

Virtual Power Plant Simulation Project Objective

Assess the functionality, performance and benefits of a fully integrated and robust smart grid as a virtual power plant, from end-use to RTO, by leveraging Real system and device information and data with a comprehensive modeling and simulation tool

Smart Grid Advisory Meeting 06/23/09

18 18

AEP / EPRI Virtual Power Plant Simulator

Communication & Control Infrastructure

Assess impacts and performance of protocols and standards ~

Win d

Sol ar

Regional Aggregation/ Control

Commercial

Smart Grid Advisory Meeting 06/23/09

AEP / EPRI Virtual Power Plant Simulator

Virtual Power Plant Simulation Project Objective

Assess the functionality, performance and benefits of a fully integrated and robust smart grid as a virtual power plant, from end-use to RTO, by leveraging Real system and device information and data with a comprehensive modeling and simulation tool

Smart Grid Advisory Meeting 06/23/09

Monitoring & Optimization Center

NO/NC

Determine requirements for hierarchical control system (communication within and across zones) Evaluate requirements for and impacts of control prioritization (e.g. transmission constraint within regional system vs. energy efficiency targets)

Control Point

Storage

Residential

Industrial

Fuel Cell

19 19

20 20

AEP / EPRI Virtual Power Plant Simulator

Zone 1 Customer Premise

Customer Portal or Meter

LG Electronics

Zone 2 Utility Secondary

PHEV

Smart Grid Advisory Meeting 06/23/09

21 21

AEP / EPRI Virtual Power Plant Simulator

Station

Zone 4 Distribuition Circuit Breaker

Line Recloser

Zone 3 Distribution Line Devices

Smart Grid Advisory Meeting 06/23/09

22 22

AEP / EPRI Virtual Power Plant Simulator

Zone 6 Regional Power System

Zone 5 Distribuition Station Transformer

Smart Grid Advisory Meeting 06/23/09

23 23

AEP / EPRI Virtual Power Plant Simulator

Virtual Power Plant Simulation Project Objective

Assess the functionality, performance and benefits of a fully integrated and robust smart grid as a virtual power plant, from end-use to RTO, by leveraging Real system and device information and data with a comprehensive modeling and simulation tool

Smart Grid Advisory Meeting 06/23/09

24 24

AEP / EPRI Virtual Power Plant Simulator

VPPS Foundational System South Bend, Indiana AMI / AMR 10,000 Smart Meters Mesh Network Communications End-use Tariffs End-use Controls (Thermostat)

Smart Grid Advisory Meeting 06/23/09

25 25

AEP / EPRI Virtual Power Plant Simulator

South Bend Distribution Automation Dynamic circuit reconfiguration 8 Circuits 18 Reclosers VAR Automation 24 Capacitor Banks

Smart Grid Advisory Meeting 06/23/09

26 26

AEP / EPRI Virtual Power Plant Simulator

Columbus, Ohio Integrated Volt VAR Control 6 Stations 17 Circuits Two control schemes

Smart Grid Advisory Meeting 06/23/09

27 27

AEP / EPRI Virtual Power Plant Simulator

Integrated Volt VAR Control Concept: 1. Utilize communications and computerized intelligence to control voltage regulators and capacitors on the distribution system, resulting in lower demand and increased energy efficiency Optimize power factor and voltage levels based on selectable parameters Finer control of voltage levels can Studies indicate a 1% voltage reduction is likely to cause a 0.7% reduction in KW demand and a similar or better reduction kVAR demand Benefits are highly predictable because customer consumption is reduced with no action required on their part

2. 3.

4.

Smart Grid Advisory Meeting 06/23/09

28 28

AEP / EPRI Virtual Power Plant Simulator

St Joseph, Michigan Community Energy Storage 1 MW, 40 25 kW units

Smart Grid Advisory Meeting 06/23/09

29 29

AEP / EPRI Virtual Power Plant Simulator

CES is a distributed fleet of small energy storage units connected to the secondary of transformers serving a few houses or small commercial loads.

STATION

Smart Grid Advisory Meeting 06/23/09

30 30

AEP / EPRI Virtual Power Plant Simulator

Community Energy Storage Unit Specifications

Key Parameters Power Energy Voltage Round Trip AC Efficiency Life Audible Noise Size Value 25 kW 50 kWh 240 / 120V > 85% > 3000 cycles, 15 years < 48dBA (no fans or filters) Comparable to a Pad-mount transformer

www.aeptechcenter.com/ces
Smart Grid Advisory Meeting 06/23/09 31 31

AEP / EPRI Virtual Power Plant Simulator

Community Energy Storage Fleet Deployment

Capital deferral of Transmission, Station, and Circuit improvements Scalable, flexible deployment by location and phase Integration into circuit voltage and VAR control Improved reliability, including reduction of momentary interruptions Improved operations including reduction of cold load pick-up Improved power quality, flicker (transformer size)
STATION

Smart Grid Advisory Meeting 06/23/09

32 32

AEP / EPRI Virtual Power Plant Simulator

Tariff Demand Storage IVVC Fossil DG Solar Wind Fuel Cell External Output $ (e.g. Cost)
Flat Rate No Control Peak Shaving VAR Control Backup Only Cloudy Calm Min Base Supply Backup Only Real Time Pricing Critical Load Only Reliability Demand Reduction On-Peak Supply Sunny Windy Max Base Supply Full Demand Supply

24.57

Month

Year
Energy Deficiency

Internal Power

Optimize for Reliability

Optimize for Cost Optimize for Efficiency

Supply Demand
Surplus Energy

Daily Time Cycle

Smart Grid Advisory Meeting 06/23/09 33 33

AEP / EPRI Virtual Power Plant Simulator

Smart Grid Advisory Meeting 06/23/09

34 34