This report describes the implementation and results of a field demonstration wherein residential electric water heaters and thermostats, commercial building space conditioning, municipal water pump loads, and several distributed generators were coordinated to manage constrained feeder electrical distribution through the two-way communication of load status and electric price signals. The field demonstration took place in Washington and Oregon and was paid for by the U.S. Department of Energy and several northwest utilities. Price is found to be an effective control signal for managing transmission or distribution congestion. Real-time signals at 5-minute intervals are shown to shift controlled load in time. The behaviors of customers and their responses under fixed, time-of-use, and real-time price contracts are compared. Peak loads are effectively reduced on the experimental feeder. A novel application of portfolio theory is applied to the selection of an optimal mix of customer contract types. v Executive SummaryPacific Northwest National Laboratory (PNNL) led a field demonstration of smart grid technologies for the U.S. Department of Energy (DOE) and the Pacific Northwest GridWise™ Testbed. The latter is a group composed of several northwest regional utilities, the Bonneville Power Administration (BPA), and PNNL. The overall field demonstration was known as the Pacific Northwest GridWise Testbed Demonstration, composed of two principal projects. This report describes one of these, the Olympic Peninsula Project. The second project, called the Grid Friendly™ Appliance Project, is discussed separately in a companion report. Purpose and ObjectivesThe purpose of the Olympic Peninsula Project was to create and observe a futuristic energy-pricing experiment that illustrates several values of grid transformation that align with the GridWise concept. The central principle of the GridWise concept is that inserting intelligence into electric-grid components at the end-use, distribution, transmission and generation levels will significantly improve both the electrical and economic efficiencies within the electric power system. Specifically, this project, tested whether automated two-way communication between the grid and distributed resources will enable resources to be dispatched based on the energy and demand price signals that they receive. In this manner, conventionally passive loads and idle distributed generators can be transformed into elements of a diverse system of grid resources that provide near real-time active grid control and a broad range of economic benefits. Foremost, the project controlled these resources to successfully manage the power flowing through a constrained feeder-distribution circuit for the duration of the project. In other words, the project tested whether it was possible to decrease the stress on the distribution system at times of peak demand by more actively engaging typically passive resources-end use loads and idle distributed generation.The immediate objectives of the project...

The entire project addresses the issue of mitigating additional intermittency and fast ramps that occur at higher penetration of intermittent resources, including wind generation, in the Bonneville Power Administration (BPA) and the California Independent System Operator (California ISO) control areas. The proposed Wide Area Energy Storage and Management System (WAEMS) will address the additional regulation requirement through the energy exchange between the participating control areas and through the use of energy storage and other generation resources. For the BPA and California ISO control centers, the new regulation service will look no different comparing with the traditional regulation resources. The proposed project will benefit the regulation service in these service areas, regardless of the actual degree of penetration of the intermittent resources in the regions.The project develops principles, algorithms, market integration rules, functional design and technical specifications for the WAEMS system. The project is sponsored by BPA and supported in kind by California ISO, Beacon Power Corporation, and the California Energy Commission (CEC).This report provides a summary of results obtained in the first phase of the project. These tasks addressed in Phase 1 are as follow:• Evaluate and compare energy storage options. Review the world experience. Identify top three technologies that can meet the needs of this project.• Design and evaluate configurations and integration schemes of the energy storage, generation resources, their combinations, and other options. Identify the most promising configurations and their benefits.• Analyze technical and market compatibility of the proposed integration schemes with the existing regulation and load following systems at BPA and California ISO.• Collect data needed for experiments at BPA and California ISO.• Develop algorithms for the energy storage and generation control. Implement them as MATLAB TM codes.• Conduct experiments using the MATLAB TM model and collected data. v• Carry out the cost benefit analysis based on simulation results.• Provide a summary of results and recommendations to BPA on continuation of the project.The main results obtained in Phase 1 are as follow:• Based on the developed set of selection criteria, an extensive literature review, and an analysis of the worldwide industrial experience, the most suitable energy storage technologies have been identified for the project. They include flywheel energy storage devices (ESDs), pumped or conventional hydro power plants, and sodium sulfur or nickel cadmium batteries.• Using a developed set of requirements and an analysis of various configurations, a preferred WAEMS service architecture has been selected. A configuration with two ESDs was elected as the main variant: an aggregate of a flywheel ESD and a pumped storage (or a conventional hydro power plant). The one-ESD configuration can be also used as a first step toward the two-ESD configuration, or as an alternative architecture. The aggrega...

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SummaryElectrical power systems play a central and key role in the production of goods and services in both the commercial and industrial sectors, and directly and significantly affect the lives of private citizens. The U.S. bulk power grid has an average availability of about 99.96 percent. Although 99.96 percent represents a very high reliability (about 3.5 hours of downtime per year), even a moment's disruption can have devastating effects on power sensitive customers such as internet service providers, data centers, wireless telecommunication networks, on-line traders, computer chip manufacturers and medical research centers. For these customers, power disruptions can result in data corruption, burned circuit boards, component damage, file corruption and lost customers. While distributed energy resources (DER) are being heavily promoted as the least-cost approach to meeting steadily increasing demand, a critical question remains: Can DER deployment also maintain or improve the electric power supply reliability and power quality currently available to consumers? This report addresses two key factors that must be analyzed and understood to help answer this question: 1) characteristics of existing power supply reliability, and 2) costs resulting from supply interruptions (or outages) characteristic of the power grid, as it exists today. These costs, incurred mostly by power consumers, and their distribution amongst the various industrial, commercial, transportation and residential sectors, must be completely understood because they are a principal driver for the commercial deployment of DER systems already taking place.This report focuses on one element within the analysis of the benefits and costs associated with improved system reliability -interruption costs. These costs can take both direct and indirect forms. Direct costs include lost production, idle facilities and labor, damage to electronic data, damaged or spoiled product, damage to equipment or customer refunds. Residential customers may experience direct out-of-pocket expense (e.g., the purchase of wood for home heating, alternative light sources, food spoilage or damage to electrical equipment) as a result of power interruption. In addition to direct costs, there are several types of indirect costs (e.g., accidental injuries, looting, vandalism, legal costs, loss of water supply, increases in insurance rates) with monetary impacts that, in some cases, may exceed direct costs.Although limited by constraints in the data used, the analysis presented in this report indicate that an interruption in power supply can result in considerable costs to end-users in the industrial, commercial and transportation sectors. The findings of this and other studies of interruption costs conclude that outage costs vary significantly based on the demand characteristics of the end-user. Interruption costs appear to be highest in the transportation sector at $16.42/kW for a 1-hour interruption, followed by the industrial sector ($13.93/kW) and the commercial sector ($12.8...