Juan Manuel Gers, PhD

San José, Costa Rica

June 29th, 2017
 Table of Contents

• Introduction

• Fundamentals on Smart Grids

• Integration of Renewables

• Smart Grids around the World

• Smart Grids in LATAM

• Recommendations
Definitions of Smart Grid

WHAT IS THE SMART GRID?

Defining the Smart Grid is in itself tricky business.

Select six stakeholders and you will likely get at least six
definitions.

Smart grid,
as defined
by the "is an electrical grid that uses computers and other technology to
Department gather and act on information, such as information about the
of Energy behaviors of suppliers and consumers, in an automated fashion
to improve the efficiency, reliability, economics, and sustainability
of the production and distribution of electricity.”.
 Smart Grid Fundamentals
Some advantages:
Smart Meters
• Enhance Reliability
• Improve System Efficiency
• Allow the integration of Distributed Energy
Resources
Smart Generation Smart Feeders • Possibility of two-way communication with
customers
• Optimize Asset Utilization and Efficient
Operation
• Encourage Energy Demand Management
Smart
Grid
Some barriers:

• Costs
• Regulatory Barriers
• Lack of Open Standards
Smart Transmission Smart Substation
 Smart Grid Fundamentals

Articulation here is required!

Communication Power System IT

Distribution Transm. Generation
Operation Operation Operation
Architecture Architecture Architecture
Integration tool:
Market
Operation

Utility components
Asset AMI FLISR …N
management Application Application Application Smart Grid Methodology
Application

Modernization of the electrical grid

… Project N

Project 3 Time

Project 2

Project 1
 Electrical Components of Smart Grids
- Metering management
- Reduce outage
Fault Location, duration.
AMI & Improve
Isolation and System
reliability - Reduce number of
Restoration
outages.
- Improve quality indices

- Reduce line losses

Improve system
Volt/Var Control - Fulfill voltage profile
efficiency
regulation
Smart
Grids/Distribution
Automation Benefits Inverters, numerical - Improve impact from
Effective DG protection, SCADA, ER
integration and others technology - Improve Power Quality
options - Improve Reliability

- Reduce maintenance
Sensors to determine expenses
Advanced asset maintenance program
- Reduce associated
management according to
failure expenses
condition-based status
- Deferral of replacement
Quality Indices
• System Average Interruption Frequency Index:
Total Number of Customer Interruptions
SAIFI  / yr
Total Number of Customer Served
• System Average Interruption Duration Index:

SAIDI 
 Customer Interruption Durations hr / yr
Total Number of Customer Served
• Customer Average Interruption Duration Index:

CAIDI 
 Customer Interruption Durations hr
Total Number of Customer Interruptions
• Average Service Availability Index:
Customer Hours Service Availability
ASAI  pu
Customer Hours Service Demand
Excerpts from the CFE 2015 Annual Report
Excerpts from the CFE 2015 Annual Report
Quality Indexes in Some Countries
SAIFI SAIDI CAIDI ASAI Density
(/yr) (min/yr) (min) (pu) (people/mi2)
Urban Systems
Finland 0.8 33 41 0.99994
Sweden 0.5 30 60 0.99994
Denmark 0.3 7 20 0.99999
Italy 2.5 120 48 0.99977
Netherlands 0.3 15 58 0.99997
Rural Systems
Finland 5.0 390 78 0.99926 38.3
Sweden 1.5 180 120 0.99966 51.2
Denmark 1.2 54 45 0.99990 313.7
Italy 5.0 300 60 0.99943 496.9
Netherlands 0.4 34 79 0.99994 975.3
Overall
Norway 2.0 300 150 0.99943 34.6
United States 1.3 120 90 0.99940 73.2
United Kingdom 0.7 67 92 0.99987 653.4
Netherlands 0.4 27 73 0.99995 975.3
Network Management EMS / DMS

Generation & EMS

Transmission
Comprehensive
set of
applications
dedicated to HV
network
operations
DMS
Comprehensive
set of
applications
dedicated to MV
Distribution
network
operations
EMS/DMS/OMS

Source: Capgemini
Benefits of DMS

Source: ABB
Optimal Topology of Distribution Networks
The optimal
topology
normally
represents the
lowest losses
of the system.

To determine the
Optimal Topology,
specialized software
packages are used,
which assume that all
the poles, in particular
the double deadends,
are potential open
points.

This allows the

software to
determine the best
boundaries among
feeders to reduce
the overall losses.
Once the optimal
topology is found,
switches, breakers or
even re-closers can be
installed in some of the
open points and some
along the feeders, to
allow system
reconfiguration.
Case Study

EMCALI is an utility that has

around 110 feeders at 13.2 kV
that register a total loss figure
above 15% which requires the
application of several
methods among them the
feeder reconfiguration
Case Study

19

8 5
12
11

3 4
13 2
17 6
1
9 18

7
10

14
20 21

15

16
Case Study

19

8' 8 5
12
11
4'
12' 13' 19'
13 2 3 4
17 6

9' 1 18
10'
1' 7
10
14' 20'
14
20 21
16'
15
18' 16
 Cost Savings Illustration
Data

kWh Losses
Cost saving
0.10
160 kW
$/kWh

Annual Saving

160 0.10
8760 h $ 140,160
kW $/kWh

If the prototype represents 5% of the overall system, the total savings

amount is $ 2,803,200
Feeder Reconfiguration

• Feeder reconfiguration consists in the

modification of the topology of a
network through the closing of a tie
switch that links two feeders and the
opening of a closed switch so as to
maintain the radial condition of the
feeders.

• Feeder reconfiguration is highly used to

restore service automatically to health
sections of feeders when faults happen.
This is known as Fault Location,
Isolation and Feeder Restoration-
FLISR

• The reconfiguration can also be carried

out in order to have a better operation
condition of the network and specifically
to reduce the losses due to the Joule
effect.
Illustration of FLISR

The best sequence operation

I II III
sequence of the tie and close
switches is shown in the following
table:
5
FAULT OPEN CLOSE
DD1 6 7 10 11
F4 F5
DD4 F1 2 and 3 T3
1 8 12
F2 13 ---
DD2 14 F3 9 ---
2 9 13 F4 6 and 8 T1 or T2
F5 7 ---
F1 Tie 1 F3 Tie 2
3 After the system reconfiguration takes
place, the Time Current Characteristic
DD6 F2
(TCC) settings have to be modified
4

Tie 3 It is essential to have the availability

of multiple setting groups.
OMS

Source: MILSOFT UTILITY SOLUTIONS

Envisioned DA and OMS Configuration Model for
Smart Grid

Source: TRC White Paper

Advanced DMS Applications

Source: Capgemini
Smart Grid Maturity Model
Smart Grid Maturity Model – Domains
Strategy, Mgmt & Regulatory Technology

TECH
SMR

Vision, planning, governance, IT architecture, standards,

stakeholder collaboration infrastructure, integration, tools

Organization and Structure Customer

CUST
Culture, structure, training, Pricing, customer participation &
communications, knowledge mgmt experience, advanced services
OS

Grid Operations Value Chain Integration

Reliability, efficiency, security, safety, Demand & supply management,

VCI
GO

observability, control leveraging market opportunities

Work & Asset Management Societal & Environmental

WAM

Asset monitoring, tracking & Responsibility, sustainability, critical

maintenance, mobile workforce infrastructure, efficiency
SE
Smart Grid Maturity Model – Levels
PIONEERING
Breaking new ground; industry-leading innovation

Optimizing smart grid to benefit entire organization; may

reach beyond organization; increased automation

Integrating smart grid deployments across the

organization, realizing measurably improved performance

Investing based on clear strategy, implementing first

projects to enable smart grid (may be compartmentalized)

Taking the first steps, exploring options, conducting

experiments, developing smart grid vision

Default level (status quo)

 SGMM at a Glance
6 Maturity Levels: Defined sets of characteristics and outcomes

5
4
175 Characteristics: Features you would expect to see at
each stage of the smart grid journey
3

2
1
SMR OS GO WAM TECH CUST VCI SE
0 Strategy,
Management, &
Organization &
Structure
Grid Operations Work & Asset
Management
Technology Customer Value Chain
Integration
Societal &
Environmental
Regulatory

8 Domains: Logical groupings of smart grid related characteristics

Compass results: maturity profile

NSEP today 3

2 2 2

1 1

0 0
Methodology to define the Road map

Evaluation of
Step 1 Utility’s current current status IntelliGrid
Step 3
status Revision of requirements Methodology
Step 5 and solutions

Vision-Goals Step 6 Identified Step 7 List of Step 8

Strategic Roadmap Maturity Model List of solutions Business
Gap requirements Needs
Analysis
Business
Cases
Step 2 Utility’s
Description of user’s
future requirements
status Evaluation of Selection of
Step 4 future status solutions Cost/Benefit
Analysis
Use Cases

Development of
State-of- user’s requirements
the-Art Maturity Model Detailed user’s
Smart Grid requirements
Topics
Evaluation of
standards,
technologies and
best practices

Technical
specifications

Development of technical
specifications
Step 9
Final Report
Integration Challenges

Technical

•Distributed Generation Integration

•Microgrids Integration
•Short Circuit Current and Protection
Physical
•Energy Storage Integration
•Energy Vehicle Integration

•Security of Energy Supply

System Challenges •Frequency Control
•Voltage Control

Market and Regulatory

Challenges
Challenges – Physical integration

Distributed Generation:

▪ They increase the reliability of the

system since they are generation units
spread around the whole system.

▪ Possibility of having generation at the

user level.

▪ Short circuit levels increase along the

feeders with the DG.

▪ Increase the withstand capabilities of

breakers, sectionalizers, reclosers,
capacitors, etc.
System integration – IEEE Std 1547
System integration – IEEE Std 1547
IEEE Std 1547™-2003 - IEEE Standard for Interconnecting Distributed Resources with Electric
Power Systems
• IEEE Std 1547a™-2014 (Amendment to IEEE Std 1547™-2003)

IEEE Std 1547.1™-2005 - IEEE Standard Conformance Test Procedures for Equipment
Interconnecting Distributed Resources with Electric Power Systems
• IEEE Std 1547.1a™-2015 (Amendment to IEEE Std 1547.1™-2005)

IEEE Std 1547.2™-2008 - IEEE Application Guide for IEEE Std 1547™, IEEE Standard for
Interconnecting Distributed Resources with Electric Power Systems

IEEE Std 1547.3™-2007 - IEEE Guide for Monitoring, Information Exchange, and Control of
Distributed Resources Interconnected with Electric Power Systems

IEEE Std 1547.4™-2011 - IEEE Guide for Design, Operation, and Integration of Distributed
Resource Island Systems with Electric Power Systems

IEEE Std 1547.6™-2011 - IEEE Recommended Practice for Interconnecting Distributed

Resources with Electric Power Systems Distribution Secondary Networks

IEEE Std 1547.7™-2013 - IEEE Guide for Conducting Distribution Impact Studies for Distributed
Resource Interconnection

P1547.8/D8, Jul 2014 - IEEE Draft Recommended Practice for Establishing Methods and
Procedures that Provide Supplemental Support for Implementation Strategies for Expanded Use
of IEEE Standard 1547
Smart Grids around the World
Country Description
Canada • There is a high potential for growth in this market as Canada needs to invest in its
aging electricity infrastructure.
• Energy policy drivers and regulatory frameworks are in place to help sustain growth
and incentivize utility investment in new applications, including consumer energy
efficiency and demand response programs.

China • A Wide Area Monitoring System (WAMS) and implemented Phasor Measurement
Units Sensors (PMUS) was built in all the 300 MW and above generators and all 500
kV substations.
• Shanghai Municipal Electric Power Company launched the research in 2008 of
intelligent distribution network focused on aspects as such as energy storage and
application and integration of large-scale renewable energy power and DERs
technology, smart metering, real-time data management and visualization technology.
• The Chinese government has developed a large, long-term stimulus plan to invest in
water systems, rural infrastructures and power grids, including a substantial
investment in smart grids.

France • The Integration and Optimization of Distributed Generation, Demand Side

Management and Renewable Energy Resources (PREMIO) was launched in 2008.
• The principal objective of demonstrating an innovate, storage and Demand Response
(DR), open and replicable architecture of a Virtual Power Plant (VPP) to optimize the
integration of Distributed Generation (DG), and energy efficiency strategies.
• The electricity distribution operator ERDF is deploying 300 000 smart meters in a pilot
project.
Smart Grids around the World
Country Description
South Korea • The government has launched a USD 65 million pilot plan on Jeju Island in
partnership with the industry, which included the aims of integrating a Smart Grid for
four distribution lines, 6000 households, wind farms.
• In 2006, Korea Electric Power Corporation (KEPCO) had determined a center
based large scale direct operation system and an advanced distribution operation
environment.
• Korea has announced plans to implement smart grids nationwide by 2030.

Spain • The government mandated distribution companies to replace existing meters with
new smart meters with no additional cost to the customer.
• The utility Endesa aims to deploy automated meter management to more than 13
million customers on the low voltage network from 2010 to 2015.

United • There are big opportunities for innovators in the smart grid.
Kingdom • The regulatory framework in the U.K. is well developed to fund smart grid
deployments.
• The government has the challenge of facilitating investment in the electricity sector
and achieving carbon reduction goals, at the same time that the rising consumer
electricity prices are contained.
• The assessment of future challenges to the electricity market cites the near-term
need for “balancing technologies”, including demand-side response (DSR) platforms
and programs, electricity storage systems, distribution automation technologies,
consumer engagement and energy efficiency programs to support the development
of DSR and achieve customer-oriented objectives of the Energy Bill.
Smart Grids around the World
Country Description
United • The US government gave from 2008 to 2012 funding of over US$100 million for
States Smart Grid research projects, because the emergence of the Energy Independence
and Security Act of 2007.
• The law also establishes a matching program to states, utilities and consumers, in
order to build Smart Grid infrastructure and create a Grid Modernization
Commission to assess progress and funded projects and to recommend needed
standards.
• Through the American Recovery and Reinvestment Act, the U.S. Department of
Energy (DOE) and other funding agencies have initiated 99 Smart Grid Investment
Grants and 41 Smart Grid demonstration Projects.
Renewable Energy Policy Status in Latin America
FISCAL INCENTIVES
REGULATORY POLICIES

Renewable energy targets

AND PUBLIC FINANCING

Heat obligation/ mandate

Public investment, loans,

Capital subsidy, grant, or

Investment or production
Feed-in tariff / premium

energy, CO2, VAT, or

Reductions in sales,
Electric utility quota

Biofuels obligation/

Energy production
obligation / RPS

Tradable REC
Net metering

other taxes
tax credits
Tendering

or grants
mandate
payment

payment
COUNTRY

rebate
Argentina O O O R O O
Barbados O O N O N O O
Belize O O O
Brazil O O R ON O O O O O
Chile O O O N O O O O O
Colombia O N O O
Costa Rica O R N O N O O O
Dominican Republic O O O N R N
Ecuador O O O O O
El Salvador O O O O O
Guatemala O O O O O O
Guyana O O O O
Haiti O O O O
Honduras O O N O O O O
Jamaica O O O O O O
Mexico O O O O O O
Nicaragua O O O O O
Panama O O O O O
Paraguay O O O O
Peru O O O O O
Trinidad y Tobago O O
Uruguay O O O O O O
O - Existing national (could also include state/provincial)
ON - Existing state/provincial (but no national)
R - Revised
N - New
Source: REN21. Annual Reporting on Renewables (2017).
Opportunities in Latin America
Country Description
Argentina • Energía Argentina S.A. (ENARSA) are implementing for several years actions to
obtain an active monitoring of equipment associated with the transmission system.
• The largest distribution of electricity called EDENOR has implemented a number of
technologies to achieve an intelligent management of the power grid.

Brazil • Smart Grid has become in one of the most important concepts in the Brazilian
energy sector.
• In 2010, many Brazilian utilities started a deep study in Smart Grids, in order to
prepare and manage their investment in new infrastructures, research and
development and the grid modernization.
• Several companies have been focused on Smart Metering.

Chile • Chilean Energy system was one of the first in Latin America that regulated the
participation of Smart Grids and the integration of Renewable Energy Technologies.
• The Chilean government has defined an energy strategy stated in the “Estrategia
Nacional de Energía 2012-2030” published by the Ministerio de Energía on
February 2012, which indicates the development of distributed generation, smart
metering technologies (focusing on Net Metering) and smart grids as a target.
• The company Chilectra has started in 2011 the first project of smart metering in
Santiago.
• Santiago is actually one of the first cities in Latin America supporting the diffusion of
smart grid technologies, which are key to the development of more sustainable
energy systems.
• The Smart City Santiago project consists in providing state of the art technologies.
Opportunities in Latin America
Country Description
Colombia • The definition of Smart Grids Vision 2030 Colombia was structured by the Mining-
Energy Planning Unit (UPME) that includes the challenges, the tasks and
requirements that must be carried out.
• There are AMI projects developed by EPSA, Emcali and Electricaribe using the PLC
technology.
• Law 1715 was implemented in 2014, which establishes the legal framework and
instruments for the use of non-conventional energy sources (especially those from
renewable sources).

Costa Rica • The eight biggest distribution local companies applied the Maturity Model of the
Software Engineering Institute.
• The application of the methodology helps to evaluate and diagnose the current
situation of electricity companies, as well as the aspiration for the future and the
development of a roadmap for the implementation of intelligent solutions in electrical
service.
• This was done with the support of the CECACIER and CRUSA.

Mexico • The Smart Grids development in the Mexico incorporates digital technology in each
part of the energy system chain.
• They have facilitated the incorporation of renewable energy to the Mexican energy
matrix.
• The biggest energy company in the country called Federal Electricity Commission
(CFE) is carrying out a project to improve the exchange of data in order to monitor
and control electrical parameters of the power grid by using wireless technology.
• The CFE in conjunction with ELSTER Group have invested in an AMI solution to
install it into their grid.
Costa Rica Case
Costa Rica Case
Costa Rica Case
Mexican Case
NUEVO MODELO DE LA INDUSTRIA ELÉCTRICA

Fuente: PRODESEN 2015-2029.

Mexican Case
ESCENARIO DE LA EVOLUCIÓN DEL SISTEMA ELÉCTRICO NACIONAL CON LA INCORPORACIÓN DE
REDES ELÉCTRICAS INTELIGENTES.

Fuente: Elaborado por CENACE con información de ADEME.

Mexican Case
Challenges and recommendation for Latin American

• Smart Grid vision is already started to be considered in many regulatory and

technological aspects in the different countries of Latin America and around
the world.

• After the definition of the Smart Grid Road Map, a suitable policy and
legislative framework can be developed at the different responsibilities level.

• Smart Grids will allow an easy participation of the new technologies, including
all the components associated with distributed generation. Latin American
countries have an interesting opportunity to use non-conventional energy
resources because the good availability in comparisons with other countries.

• Specific cost-benefits scenarios must be analyzed in the various Latin

American situations by the different stakeholders and implemented
considering the potential of policy and regulation adaptation.

• The development of smart grids technologies relies on technology

interoperability, which is achieved through an adequate standardization.
jmgers@gersusa.com