NanoMarkets

thin film | organic | printable | electronics www.na nomarkets.net

SmartGrid:It'sAllAbouttheSensors
Thisarticleisbasedinpartonresearchfrom Sensors for the Smart Grid: Market Opportunities 20092016 There is a general consensus that the current power grid is reaching its limitations and that smartgrid technology will be needed to increase efficiency, reliability, and security, as well as to reduce the environmental impact of supplying the electrical power needs of modern society. The development of such a smart grid presents many materials opportunities, one of which lies in the sensors market. NanoMarkets believes that sensors will be a key enabler for the smart grid to reach its potential. Components of the evolv ing smart grid include smart metering of electricity, smart materials to enable higher current capacity overhead lines and self recovery during outages, intelligent components (substation components can communicate with the wider smart grid), plug and play components (new components will actively insert themselves in the intelligent network), reconfigurable components (can reroute power effectively and automatically when outages occur) and storage of electricity for quality and peak shaving applications. Of all of the elements in the emerging smart grid, sensors will be one of the leading indicators of smart grid growth worldwide. The idea behind the "smart" grid is that the grid will respond to realtime demand; in order to do this, it will require sensors to provide this "real-time" information. NanoMarkets includes in its definition of smart-grid sensors, the sensors themselves, the digitization hardware, the wired and wireless infrastructure and smart metering hardware necessary to collect and transport sensor data across the grid. Why the Smart Grid is an Important Opportunity for Sensor Firms Overall, the grid infrastructure market worldwide represents about an $80-billion/year industry with approximately $20 billion of that in North American markets. While the transition to a more intelligent grid has already started, the current grid is dominated by a system that is mostly electromechanical in nature, radical in its layout with centralized generating capacity and one way in its communication with little or no sensor feedback to centralized decision makers. The transition to a digital network with two-way communication, a network topology with distributed Page|1

NanoMarkets

thin film | organic | printable | electronics www.na nomarkets.net

generation, grid storage and pervasiv e control systems and self monitoring presents extremely attractive opportunities for sensor firms. These opportunities can be grouped into three general areas. The first is the "line infrastructure" or "transmission grid," which consists of the transmission lines that run from the point of power generation to the substations (distribution hubs). Second is the local/utility distribution grid, which runs from the substation to the home (end user). This segment represents an overall worldwide market of about $40 billion/year in North America. It is in this section we will also include opportunities centered on distributed generation, microgrids and variable generation sources (wind and solar). The third group is the edge infrastructure, which starts at the smart meter and includes everything within the home (office building, etc.). This segment represents an overall worldwide market of about $6 billion/year, of which $2 billion/year is in North America. In the past, when more electrical capacity was needed, the low cost of fuel and relatively inexpensiv e construction costs compared to alternativ es and regulatory structure made adding central generating capacity the economical solution. With the volatile cost of feedstock and new emphasis on environmental stewardship, adding capacity is no longer the most economical solution. In addition, the current long-term mandates to incorporate high levels of renewable, variable output generating resources (wind and solar) require a smarter gird for grid stability. Even though the established infrastructure in North America and Europe are in need of upgrading with smart technology, we expect the build out to seem slow compared to the telecom build of the late 1990's due to the risk averse, highly conservative culture of the utility industry and its highly regulated nature. However, because of systemic underinvestment over the past 40 years, much of the infrastructure is reaching the end of its life and the transition to smart infrastructure will occur with what seems lightning speed for this industry. Because of this culture of conservatism and regulation, we see the build out starting in the least regulated and bureaucratic areas (edge infrastructures) and moving out from there. Demand for sensors in the edge infrastructure (within home/office) area will follow the imple mentation of automated meter infrastructure (AMI), which communicates real-time pricing information between the customer and utility. On the customer side of the AMI, there are opportunities to make sensors pervasive within the home to track and manipulate utility uysage. Wireless networks with usage monitors on heating, cooling equipment and major appliances that Page|2

NanoMarkets

thin film | organic | printable | electronics www.na nomarkets.net

can communicate usage and control use in relation to the real-time electrical prices will become the norm. Pilot AMI programs are already in place at over 20 utilities. While consumers will be able to reduce their costs through real-time usage information, utilities will be able to use the smart metering real-time use and outage information for improved efficiency and service. The outage information will allow for much quicker isolation and understanding of outage types, which will allow quicker restoration of service. The second advantage to utilities will be improved understanding of real-time demand and patterns, which will increase generating efficiency by allowing better load balance than in its current blind situation. At the medium voltage local power company distribution level from the transmission line substation through distribution substations to the customer AMI, new implementations for sensors will be critical in service areas, including fault detection, voltage optimization and load transfer. In addition to the AMI information, sensors on the distribution network will report faults to the local substation where the location will be known before repair crews are sent out, essentially reducing average outage times. In the voltage optimization area, sensors will allow automatic operation of distribution capacitors based on the needs of the station bus or transformer, which will result in lower sub transmission losses. Sensors will also allow for improved dispatcher notification of fuse blows and system wide voltage control with improved overall load management. Load transfer is another area where sensors will be critical. Here, with sensors that can report on capacity, advanced algorithms will allow feeder-to-feeder capacity transfer. The ability to include dynamic adjustment from overloaded feeders, transformers and stations will allow delays in capacity upgrades through improved load response to changing demand. The generation and regional high voltage transmission area (from generation source through major transmission lines to major transmission substations that feed the distribution networks) is where there is currently the highest level of sensor penetration. The sensors used today, however, have limited capability and basically measure voltage, current, etc.; sensors for the smart grid infrastructure will allow more automated reaction to incoming information. For example, with sensors that monitor temperature and weather conditions of high power lines, changes to the maximum load of these lines can be automated. Like the distribution automation that will incorporate small distributed generating resources at the distribution level, new smart sensor networks will be necessary at the transmission level to incorporate large variable power sources, Page|3

NanoMarkets

thin film | organic | printable | electronics www.na nomarkets.net

such as wind and solar. Sensors will be necessary as large wind and solar farms become pervasiv e and their inputs go into the transmission grid to move large amounts of electricity to population centers. There are several challenges that will have to be addressed before the smart grid, and thus smart sensors, can progress as envisioned. First, security is a huge hurdle because of the potential for unhardened meters (points of access) in every home. The communications protocols on the smart grid are another open issue that needs to be standardized before widespread adoption and capital expenditures can be made. Currently, the closed ANSI C12.9 and C12.22 standards are most common, but we predict that the smart grid protocols will move to an open IEEE defines standard when widespread adoption of smart meters takes place. Another open issue has to do with the data transmission methodology for the sensors. There are now over 20 communication technologies that are being evaluated at some level for intelligent grid control; WiMax, BPL, fiber optic, mesh WiFI, MPLS, and multi-port spread spectrum are just a few. Transmission technology must have the following characteristics: high bandwidth; IP enabled digital communication, encryption and cyber security support and VoIP support. Beyond communication of the network, the ability to use the network for communication with field crews for voice, real time grid instrument readings, etc. are all critical to the success of the smart grid. Types of Sensors for the Smart Grid The basic measurements that are needed for smart grid sensing fall into the categories of voltage sensing, current sensing, temperature sensing, moisture sensing, continuity sensing and phase measurements. Sensors for all of these exist but were not economical to integrate into the grid because in the last the electromechanical sensors had to be combined with discrete communications elements to communicate sensor data. Cost reductions, improvements in computing power, and reductions in power requirements due to the transition of these sensing and communications technologies to advanced CMOS technology nodes with system-on-a-chip levels of integration now allow integrated sensors with wired or wireless connections to communicate data to decision makers at a cost that allows for economical pervasive deployment. Wireless sensor networks for AMI: The AMI represents the first two-way communication between the delivery infrastructure and the end consumer. The AMI will allow the central Page|4

NanoMarkets

thin film | organic | printable | electronics www.na nomarkets.net

distribution system to monitor in real time the use of each individual node on the grid and allow information about outages to be transported back to the central command structure. The AMI represents a real opportunity for the emergence of wireless smart sensor networks within the home or small business space as well as sensor opportunities for utility outage detection. Smart voltage sensors: Smart voltage sensors will be one of many evolv ing smart sensor components. While traditional regulators at the substation and on main distribution lines are part of the current electromechanical net, voltage sensors along spurs and near the end of the line that report back on current conditions are currently rare but will become pervasiv e as part of the emerging smart grid sensor network. Currently, without end of line sensors, long distribution lines must use inefficient high voltages at the feeder distribution point to ensure that the voltage at the end of the line is never below quoted specification. The addition of smart sensors at the end of the line can report real-time voltage data back to the feeder line so it can distribute the current at a lower voltage than it otherwise could without the sensor information, thus allowing more efficient use of the available electricity in the distribution network. This will be especially useful in rural areas with long radial lines. Smart capacitor control: Currently, large capacitors are used on the grid to maintain voltage and power factors. While the capacitors are able to react to changing voltage, current or power factor, they are not monitored or controlled remotely . The addition of smart sensors that can monitor and control capacitor banks remotely will increase the overall efficiency of the distribution network. Smart sensors for outage detection: In addition to smart meters, smart continuity grid sensors that can communicate with the central distribution points will improve outage detection. Smart sensors for transformer monitoring: transformers represent one of the more expensiv e assets of local utility companies, but monitoring in general is limited to once a year manual dissolved gas analysis and periodic temperature observation with IR cameras. On-line sensors for dissolved gas analysis and temperature monitoring with two-way communications back to the substation represent a significant opportunity. High voltage line temperature and weather condition sensors: Sensors will provide realtime temperature and weather conditions to improve the efficiency of high voltage distribution Page|5

NanoMarkets

thin film | organic | printable | electronics www.na nomarkets.net

lines and allow more accurate dispatch of current in times of significant demand with reduced chance of outages due to line sag. Distributed generation: For distributed generation to be viable in the emerging smart grid, sensors for load balancing between the greater grid and the distributed generating sources will be crucial. Smart grid storage: Sensor opportunities are tow fold for smart grid storage. There will be opportunities both in monitoring the status of all battery cells in storage banks and in load monitoring and dispatch of energy from the battery bank to the greater grid. Page|6