ESB

The electric power system has been getting smarter for decades, as new technologies allow better analysis and greater control. But most utilities have implemented these technologies in a piecemeal way, rather than as part of a long-term, enterprise-scale strategy. What are the consequences of this fragmented and incidental approach, and what would happen if we developed the smart grid in a deliberate way instead?

When customers sell demand response into a regional capacity market (such as PJM’s Reliability Pricing Model, known as the RPM), how much credit should they earn for agreeing to curtail demand and alleviating stress on the grid — that is, for reducing the market’s need for generating capability and capacity reserve margin? And further, should the amount of credit depend on whether the customer works with market aggregators, known both as CSPs (“Curtailment Service Providers”) or ARCs (“Aggregators of Retail Customers”)? One view would pay customers for the full extent of their curtailment of demand — known as its “Guaranteed Load Drop” (GLD). The other would limit capacity credit to the customer’s prior load history — “Peak Load Contribution,” or PLC. The answer may well dictate whether regulators continue to treat “energy” and “capacity” as two distinct concepts.

(April 2011) GE Hitachi and Lockheed Martin team up on nuclear reactor controls; Elster wins metering contract in New Hampshire; Xcel hires Bechtel for nuclear services in Minnesota; Mitsubishi builds transformer HQ in Memphis; Northeast Utilities taps Siemens for transmission projects; Iberdrola sells wind output to FirstEnergy; Consumers and DTE invest $400 million to upgrade pumped storage facility; plus contracts and announcements from Alstom, URS, Areva, groSolar, Pattern Energy, S&C Electric and others.

Market rules could evolve to compensate gas suppliers for pressurizing pipelines when needed on short notice. Enhanced ancillary services will require innovative strategies using line pack in interstate pipelines and stepped up communication among gas and electric market participants to preserve reliability objectives in gas and electric markets.

A huge backlog exists for utility infrastructure projects. Major players in the construction industry—ABB, Black & Veatch, Siemens, The Shaw Group and WorleyParsons—discuss the trends, both good and bad, and how they are getting the job done on badly needed projects.

Oracle’s Guerry Waters is one of the country’s leading gurus on smart-meter technology—a business sector with huge potential for addressing today’s environmental problems.

One sure sign of recovery in boom-and-bust power-generation markets is the renewed growth in the planning and construction of power plants. Active efforts are underway in generation development in the Southeast markets in spite of the high levels of generating reserve margins. With its traditional utility-dominated market structure and a preference for baseload generation, the Southeast is the battleground for the next round of power-generation development.

Jack Bailey, vice president, nuclear generation, at Tennessee Valley Authority explains why his organization finally decided on the Westinghouse AP1000. TVA is part of the NuStart consortium at the Belafonte site in Scottsboro, Ala., where TVA is developing a combined operating license for the Westinghouse AP1000 reactor.

Some power markets may be seeing possible signs of recovery. Spark spreads appear to have bottomed out, and reserve margins have begun to fall in some markets. As Figure 1 shows, recovery is uneven, with many regions still experiencing excess supply and a few regions with peak reserves under 10 percent.