IEEEx - SP | 6-MGS_SGCert_IntroSG_MegaTrends_v30Dec2015

We now move to the last segment of this course. In this segment, we will conclude by discussing the mega-trends
in the power industry, who the key Smart Grid players are, and what are their areas a focus.
First, let us recap what we have learned so far. We learned that there are major Smart Grid projects around the
world that showcase various technologies. We learned that the Tres Amigas project in the US focuses on
integration of bulk renewables. And we also learned about the Grid4EU demo project that test the potential of
smart grids in areas such as renewable energy, electric vehicle, grid automation, energy storage, energy
efficiency, and load reduction.
Moving on to slightly strategic topics-- in recent years, the power industry has seen some major trends that have
long-term implication to utilities and their choice of Smart Grid technologies and the rate of adoption. Let's look at
some of them.
Dash-to-Gas-- implications of inexpensive and large reserves of shale gas will have impacts on Smart Grid
Technologies. Maximizing transfer capacity over the right of way-- this is leading to the application of HVDC and
Smart Power electronics such as FACTS systems. Grid modernization and optimization is leading to deployment
of digital substations, distribution automation, and improved asset management technologies.
Smart Grid big data and analytics have implementation on how Smart Grid data is being stored, managed, and
used. Smart Grid management services is now a trend where more and more utilities are seriously looking at or
adopting managed services in core areas that would have been considered unthinkable before. Lastly, the
creation of new smart cities and the need for sustainability has now created sectors in which we have found the
need for developing cross-functional technologies that connect energy, water, transportation, health, and others.
Let's continue down this path.
The Dash-to-Gas, which we call trend number one, is resulting in inexpensive sustainable shale gas reserves that
we believe will last for over 90 years. The shift from coal fired power plants to natural gas generators, both
centralized in distribution, is happening now. Turning on natural gas peakers versus deploying demand response
during peak demand. There is a greater possibility of fuel cell market growth versus solar and wind, and there is a
market growth for natural gas vehicles which will compete with electric vehicles.
The trend number two, maximizing transfer capability over transmission right of way-- developments in high
voltage DC technologies and advanced power electronics have dramatically improved the transfer capabilities of
existing transmission lines. Large- scale HVDC buildouts of about 75 gigawatts of capacity are expected by 2020
in North America itself, and another 400 gigawatts worldwide.

Smart Power Electronics, also called FACTS, are flexible AC transmission systems, enhance the controllability,
and increase the power transfer capability thereby minimizing or eliminating the need for hard to obtain new rights
of way for transmission siting. This also improves transfer capability that enables integration of large-scale
renewables.
Grid modernization and optimization-- utilities are also increasingly looking for a mature technologies to modernize
the grid and optimize the use of their assets. Digital substations are being increasingly deployed to provide greater
reliability, safety, and efficiency operations. They also reduce cost of ownership and enhance the situational
awareness through integration with white area monitoring, protection, and control systems.
Asset management and condition- based monitoring are being increasingly employed to optimize grid
infrastructure and eliminate our deferred capital cost. Distribution automation is projected to be one of the fastest
growing markets worldwide and is seeing a tremendous surge in new and retrofit automation and power quality
equipment. We are also seeing advanced operational systems such as wide area monitoring systems, outage
management systems, advanced distribution management systems, which are all being increasingly deployed by
utilities for enhanced grid command and control.
Data analytics-- the widespread deployment of IEDs and PMUs on the grid has led to creating increased amount
of data at increased frequencies. Also known as the tsunami of Smart Grid big data, this has now gone to the
order of petabytes, or millions of gigabytes, that now has changed the situation from looking at data to going into
analytics.
This data, as we can see, comprises of a variety of data such as an asset data, smart meter data, system
operations data, and customer data. All of these data to be cleansed, validated, estimated, and correlated using
advanced mathematical technologies and converted to actionable information that can be then presented in a
format that aids rapid decision making.
To manage Smart Grid big data, larger utilities are building data centers and deploying their meter data
management and other analytics to extract actionable intelligence for operations while smaller utilities are opting
for managed services on the cloud to achieve the same result.
Smart Grid services are seeing a surge with smaller utilities, especially municipalities and cooperatives. They are
increasingly subscribing to manage services rather than building expensive data warehouses. Meter data
management, demand response, and IT services are some of the media showing promise.
Smart cities are gaining focus worldwide, especially in cities that on their own utilities. Smart cities comprise of
smart energy, water, transportation, education, health care, et cetera. They're deploying cross functional

technologies to manage these varied services. Sustainability is a big part of smart cities and incorporates clean
technologies alternative fuel vehicles, emissions control, et cetera.
All the big players are building a portfolio by buying smaller companies and offering a one stop shop for Smart
Grid solutions. These companies are making a clear play and are developing a well rounded portfolio of Smart
Grid technologies and products by either building on their core capabilities or through mergers and acquisitions,
all too offer a one stop shop for Smart Grid solutions. These companies include ABB, Alstom, Eaton, GE,
Schneider, Siemens, and several others.
To summarize, achieving a modern grid requires the application of well chosen technologies along the entire
electric value chain. The smart grid can significantly increase asset utilization and yield numerous operational and
financial benefits. Power systems, IT, and communicate need to converge to realize the Smart Grid. Cost benefit
analysis of the Smart Grid indicates that benefits can significantly outweigh costs. There is an aggressive
spending in the billions of dollars on mergers and acquisitions in high growth sectors, all of it indicating a
consolidation of the Smart Grid space.