IEEE Power & Energy Magazine - May/June 2014 - 35

Wind, solar, and gas-fired
generation will play a substantial role in the grid
of the future.

as loads become less grid friendly, as more wind, solar,
and other asynchronous forms of power generation displace
conventional power plants, and as older plants are retired,
the grid will need both local dynamic reactive power sources
and the means to maintain adequate short-circuit strength.
synchronous condensers are expected to re-emerge as a
tried and tested approach to maintaining a stiff grid voltage
for stable operation of the grid of the future.

Demand Management
Demand management or Dr covers the whole range of
demand-side resources from direct load control (operators
disconnect load on demand) to responsive demand based on
dynamic pricing and other control signals (price schedules or
signals are passed to customers to incent load reduction). the
advent of new technology is enabling more sophisticated and
engaging Dr options that, coupled with dynamic pricing,
are making possible more flexible and robust customer
response behavior. smart grid innovations in advanced
metering infrastructures, communications, home emergency
management systems, and smart appliances are making
Dr both technologically feasible and economically viable,
enabling a wider deployment.
Despite the relatively slow economy, utility and retail Dr
programs are being driven by state regulatory commissions
and by utilities in need of managing their peak demand and
reducing long-term capacity costs. Furthermore, Ferc orders
#719 and #745 are opening up opportunities for the participation of Drs in wholesale markets, with Dr to be paid
iso locational marginal prices and to be treated similarly to
supply-side resources in energy, capacity, and ancillary services markets. Dr benefits utilities, customers, and the power
system in a number of ways, including deferring the need for
new investment in generation and transmission, increased reliability, and increased economic efficiency by price responsive
(and price-elastic) demand.
Ferc estimates that, if the current level of Dr is preserved
through the next decade, Dr would shave 38 GW off u.s.
peak demand in the year 2019, and, with dynamic pricing,
the total potential could range between 14 and 20% of peak
demand or 138-188 GW depending on whether dynamic
pricing is deployed on an opt-in or opt-out basis. the Brattle
Group estimates us$65 billion in cost avoidance in the united
states through 2030 from Dr. With the proper alignment of
technology, pricing, and incentives, Dr is expected to play a
key role in the value proposition for the grid of the future.
may/june 2014

Grid Resiliency
recent disasters in the united states, such as the 9/11 terrorist attack in 2001 and hurricane sandy in 2012, have highlighted a vital need for preventing power disruptions and
blackouts that paralyze the operations of essential services
and disrupt the provision of key necessities to the population
at large. these include such services as those provided by
the first responders, police departments, fire houses, hospitals, emergency shelters, elderly care facilities, water utilities, sewage treatment facilities, public transit systems, and
other essential government and business operations.
according to the u.s. Department of energy, outages
caused by severe weather such as thunderstorms, hurricanes, and blizzards account for 58% of outages observed
since 2002 and 87% of outages affecting 50,000 or more
customers.
in June 2011, President obama released "a Policy Framework for the 21st century Grid," which set out a four-pillared
strategy for modernizing the electric grid. the initiative
directed billions of dollars toward investments in 21st century smart grid technologies focused on increasing the grid's
efficiency, reliability, and resilience, thereby making it less
vulnerable to weather-related outages and reducing the time
it takes to restore power after an outage. recently, in august
2013, the executive office of the President issued the report
"economic Benefits of increasing electric Grid resilience
to Weather outages," which estimates the annual cost of
power outages caused by severe weather between 2003 and
2012 and describes various strategies for modernizing the
grid and increasing grid resilience.
one such strategy to make certain critical areas of the system more robust is by employing microgrids. microgrids can
be a useful means of providing electric service resiliency to
certain areas by enabling sustainable operations and uninterrupted functioning of critical load in islanded mode in the
event of widespread disruptions in electric utility services.
the u.s. Department of energy defines the term "microgrid"
to mean "a group of interconnected loads and distributed
energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to
the grid and can connect and disconnect from the grid to
enable it to operate in both grid-connected or island mode."
Well-designed microgrid systems, which may include a
combination of DG, energy storage, and Dr, with an intelligent system platform that enables system integration, communication, monitoring, and smart control, would function
ieee power & energy magazine

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Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - May/June 2014

IEEE Power & Energy Magazine - May/June 2014 - Cover1
IEEE Power & Energy Magazine - May/June 2014 - Cover2
IEEE Power & Energy Magazine - May/June 2014 - 1
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IEEE Power & Energy Magazine - May/June 2014 - Cover3
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