Smart Grid Integration At BC Hydro IEEE EPEC Panel Discussion Vancouver, October 2008

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Crown Corporation 1.7 Million Customers 51,000 GWh Domestic Load Serve 94% of British Columbia

• Triple Bottom Line Performance • Distribution Assets: $5.7B • 2,200 Field Employees

The Power Delivery System: Generation (BC Hydro) • 41 Dam sites, 30 Hydro facilities and 9 Thermal units Transmission (BCTC) • 18,000 km of Transmission lines 260 substations, 22,000 steel towers • One Control Center - Consolidation of 4 regional systems (including back-up) • Interconnect to Alberta and US Distribution (BC Hydro) • 56,000 km of Distribution lines • Approx. 900K poles, over 300K of transformers • Serve 17 Non-integrated areas

The Smart Grid Candy Store SMART GRID APPLICATIONS

Home Area Network

Substation Protection

Energy Storage

Demand Response Management System

Distributed Generation Net Zero Buildings

Smart Meters Fault Locating

Volt-VAR Optimization

Micro Grids

Plug-in Hybrid Vehicles (PHEVs)

Distribution Automation

Distribution Management System

Enabling Platforms METER DATA MANAGEMENT SYSTEM COMMUNICATIONS INFRASTRUCTURE ENTERPRISE SERVICE BUS

Spatial Asset Management

Safe Operations Reliability Optimization

Our Key Business Drivers Internal Drivers

External Drivers

• BC Energy Plan,

• Impending energy shortages,

• Legislation for Smart Meters

• Advanced technology,

• Green energy,

• Reliability of service,

• Ageing assets,

• Customer service,

• Limited labour resources,

• Public safety,

• Employee safety

• Green energy

Key Customer Benefits: • Conservation & Energy Efficiency, • Operational Efficiencies, • Distributed Generation, • Safety and Workforce efficiency, • Enhanced Customer Service

BC Hydro’s Smart Grid Strategy BC Hydro has developed a Smart Grid Roadmap and intends to embark on a journey of innovation and technology to advance the modernization of the power delivery system as quickly as possible and in alignment with Provincial Energy Policy and the needs of our customers.

We believe that the deployment of Smart Grid applications will be the lowest cost solution to meet the current and future needs and expectations of our customers and our communities.

Integration Challenges • • • • • • • • • •

Open versus proprietary architecture Standards development Technology advancement Technology risk and obsolescence Solution scalability and flexibility Deployment risk, change management Product performance, quality assurance Financial and regulatory treatment Regulated versus non-regulated benefit Power quality and system stability

Smart Grid Applications Smart Metering and Infrastructure (SMI) • The foundational Smart Grid deployment of smart meters, communications systems and IT systems that will enable enhanced customer services and system efficiencies

Smart Grid Applications SMI – Joint Solution Design Supplier universe RFQ Screening Criteria Alcatel –Lucent Allstream Canada Corp Ceragon Corinex …

RFQ downselect supplier list Supplier 1 Supplier 2 .. .. Supplier 10

… …

Supplier Universe

RFP stage screening criteria

Supplier Shortlist for Workshops Supplier 4 Supplier 6 Supplier 8

Supplier 1 Supplier 2 …

Supplier 1 Supplier 2 … Feasible Suppliers 12

Final supplier selection

Supplier Shortlist 3-4

Supplier Selection 1 or 2

Seeking a Systems Integrator that will work with us to deliver the end-to-end solution.

Smart Grid Applications SMI – The Customer Interface

Utility

Utility Network

Utility

Utility Network Customer Network

Smart Grid Applications Distribution Management System (DMS) • A Decision Support System to assist the control room and field operating personnel with the monitoring and control of the electric distribution system

Smart Grid Applications Volt VAR Optimization (VVO) • A voltage control system at the substation medium voltage bus that will allow the real time management of energy flows for loss reduction. Transformers

TapChangers

Substation The amount of energy savings is contingent upon the voltage profiles for all feeders, load composition, time of day, and many other factors

V

CBs

Feeder will experience voltage drop, depending on conductor size, load, and distance. Peak load (solid line) has more voltage drop than light load (dashed line). Load tap changer at the substation can lower the voltage during light load, yet remain within operating limits at the service entrance.

Upper limit 125V at Service Entrance With VVO, load tap changers, capacitor banks and voltage regulators are continuously fine tuned throughout the year. The net effect is a flattening of voltage drop and lowering voltages at non-critical points resulting in substantial energy savings.

Energy Savings

Critical point There is some voltage uncertainty, minimized by metering at select service entrances.

Lower limit 112V at Service Entrance

In Summary

The modernization of the power deliver system is necessary and imminent, providing an extraordinary challenge and opportunity for the utility industry… We need to work together on the many technical and business issues to succeed in delivering the system of the future!

Thank You Ralph Zucker Director, Smart Grid Development BC Hydro [email protected]