What is the Smart Grid presented to the

What is the Smart Grid? presented to the APIC Power and Energy Innovation Forum Ener. Nex Corporation November 5, 2009

Goal: Merge Communication and Energy Networks 2

Changing the Face of the Grid Real-time Simulation Wide-Area Reliability Network Optimization Customer Participation in Energy Markets Source: EPRI Intelli. Grid 3

Smart Grid “Elevator Speech” for Consumer Right Now With Smart Grid Utility doesn’t know when power is used Utilities will offer you lower rates for using power in “off-peak” times Utility often relies on you to tell them when your lights go out Your lights will go out less often and outages won’t last as long We get large blackouts like the northeast in 2003 The grid will automatically create “firebreaks” fast enough to stop them Utilities do green power and electric cars as “one-offs” Consumers with green power and electric cars can be everyday items Utilities are 10 -30 years behind in cyber-security Your electric power will not be as vulnerable to attackers Energy prices will increase as aging infrastructure is replaced Prices won’t rise as fast because the system will be more efficient Source: Ener. Nex 4

Everyone Has a Different Picture The “FERC 4” – Smart Grid Policy Priorities • Wide Area Situational Awareness • Demand Response • Electric Storage • Electric Transportation Added by NIST: • Advanced Metering • Distribution Grid Management • Cyber Security • Network Communications Source: BC Hydro 5

NIST Three Phase Plan PHASE 1 Identify an initial set of existing consensus standards and develop a roadmap to fill gaps PHASE 2 Establish public/private Interoperability Panel to provide ongoing recommendations for new/revised standards PHASE 3 Testing and Certification Framework 2009 March 6 2010 September 6

NIST Smart Grid Framework – 1. 0 Draft • Smart Grid Vision – Concepts, benefits – Importance to National Energy Policy – Key attributes • Conceptual Reference Model – To be used for discussing uses, relationships, use cases – Consists of domains, actors, applications, networks, paths • Standards Identified for Implementation – – Original 16 from first workshop Additional 21 in this document Included 46 more “for consideration” Asks for review of standards selection criteria • Priority Action Plans – Gaps in existing standards, missing standards, harmonization – Agreed on in workshops with SDO representatives 7

Conceptual Model High Level View 8

Conceptual Reference Model Source: NIST Smart Grid Framework 9

Demand Response – Example Only! IEC 61970 IEC 61968 Multi. Speak eb. XML Open. ADR SOAP REST HTTP 1 b. Register Customer 2 b. Announce Price Event 4 a. Billing Cycle 3 b. Record Participation 2 a. Market Price Change 1 a. Enroll Customer 4 b. Send Bill 2 c. Distribute Price Event Interface Message 1 a. Sequence Number Example Standards Stages: 1. Enrollment 2. Event 3. Monitoring 4. Billing Source: Ener. Nex 10 Zig. Bee SE Wi. Fi BACnet Home. Plug Ethernet 3 a. Report Usage ANSI C 12 SONET WDM Frame Relay Wi. MAX ANSI C 12 BPL Cellular Wi. MAX Proprietary 2 d. Local Price Event 2 e. Reduce Usage

The “GWAC Stack” Underneath Organizational: Policy, Business Objectives, Business Procedures Informational: Business Context, Semantic Understanding Technical: Syntactic Interoperability, Network Interoperability, Basic Connectivity Cross-Cutting Issues: Security, Resource Identification, Time Synch, etc. Source: Ener. Nex 11

First 16 NIST Framework Standards 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 AMI-SEC System Security Requirements ANSI C 12. 19 End Device (Meter) Tables BACnet Building Automation & Control Net DNP 3 – Distributed Network Protocol IEC 60870 -6 – Inter-Control Center IEC 61850 – Comms Nets in Substations IEC 61968/61970 – Common Info Model IEC 62351 – Data Comms Security IEEE C 37. 118 - Synchrophasors IEEE 1547 – Distributed Resources IEEE 1686 – IED Cyber Security NERC Critical Infrastructure Protection NIST SP 800 -53/82 Fed Info Sys Security Open Automated Demand Response Open Home Area Network Requirements Zig. Bee/Home. Plug Smart Energy Profile 12

SGIP Structure Smart Grid Recognized Standards NIST Oversight Stakeholder Category Members (21) SGIP Standing Committee Members (3) One Organization, One Vote Use Cases At large Members (3) Ex Officio (non-voting) Members SGIPGB Requirements Standing Committees Working Groups SGIP Smart Grid Interoperability Panel and Governing Board 13 Priority Action Plans In Progress Stds Descr. Conceptual Model Products (IKB)

Stakeholder Categories - Draft 1. Investor Owned Utilities 2. Municipal Electric Utilities 3. Rural Electric Utilities 4. Independent Power Producers 5. Renewable Power Producers 6. Transmission Operators 7. Retail Service Providers 8. Commercial & Industrial Consumers 9. Residential Consumers 10. IT, Application Developers & Integrators 11. ICT Infrastructure Providers 17. Standard Development Organizations 12. Electric Transportation 18. 13. Power Equipment Mfg and Vendors Professional Societies, User Groups, Industry Consortia 14. Appliance Manufacturers 19. Academia, R&D Organizations 15. Electricity & Financial Market Traders 20. State & Local Regulators 16. Venture Capital 21. Relevant Federal Agencies 14

Ways to Participate • Contribute to IEC, IEEE and other standards orgs – The SGIP will not make standards – Only provides a forum and advisory to NIST • Join in as part of the SGIP stakeholder categories – Web conferences Oct 9, Oct 28, Nov 12 – First face-to-face meeting at Grid-Interop Conference – Call for candidates for the governing board • Provide feedback on the charter – First act of SGIP will be to ratify its charter – Governance board could include international liaisons 15

Reference Information

Links NIST Smart Grid Site EPRI Roadmap Report Framework 1. 0 Draft NIST Collaboration Site IEC Smart Grid Stds http: //www. nist. gov/smartgrid/Report%20 to%20 NI STl. August 10%20(2). pdf http: //www. nist. gov/public_affairs/releases/smartg rid_interoperability. pdf http: //collaborate. nist. gov/twikisggrid/bin/view/Smart. Grid/Web. Home http: //www. iec. ch/zone/smartgrid/grid_relevantstd s. htm Grid-Interop Conference http: //www. grid-interop. com/2009/ DOE System Report 17 http: //www. oe. energy. gov/Documentsand. Media/fi nal-smart-grid-report. pdf

NIST Interoperability Framework – History • 2007 EISA gives NIST responsibility for a Smart Grid Framework • 2008 NIST forms Domain Expert Working Groups – T&D, Home-to-Grid, Building-to-Grid, Industry-to-Grid, PEV-to-Grid, Business and Policy, Cyber Security • 2009 ARRA accelerates need for standards – EPRI selected as contractor • 2009 NIST holds large-scale workshops to identify standards – – Several hundred stakeholders from a variety of groups April 28 -29: Produced draft list of 16 standards: “low hanging fruit” May 19 -20: Analyzed use cases, requirements and standards August 3 -4: Developed Priority Action Plans with SDO representatives • 2009 August EPRI produces Roadmap Report based on workshops • 2009 September – NIST Smart Grid Framework draft 1. 0 released – Ener. Nex selected as contractor for next phases 18

Draft Standards Acceptance Criteria • Enables Smart Grid characteristics as defined by EISA, DOE Smart Grid System Report • Is applicable to one of the priority areas identified by FERC and NIST • Enables the transition of the legacy power grid to the Smart Grid. • Is an open, stable and mature industry-level standard developed in consensus processes from a standards development organization • Is supported by an SDO or Users Group to ensure that it is regularly revised and improved to meet changing requirements and that there is strategy for continued relevance. • Is openly available under fair, reasonable, and nondiscriminatory terms. • Is developed and adopted internationally, wherever practical 19