Smart Grid, Smart Home for the Smart Society

 Two-way data communications system used in conjunction with the electric power grid Save energy  Reduce cost  Increase reliability and transparency  Enable new applications and mar

Renesas Electronics America Inc.

© 2012 Renesas Electronics America Inc All rights reserved.

Smart Grid, Smart Home for the Smart Society

Renesas Technology & Solution Portfolio

 Introduction

 What is the Smart Grid?

 Residential customers and Home Devices

 An introduction to SEP 2.0

 Market drivers

 Customer participation in the Smart Grid

 The technical challenges

 Two-way data communications system used in conjunction with the electric power grid

 Save energy

 Reduce cost

 Increase reliability and transparency

 Enable new applications and markets

 Smart Energy Profile 2.0 (SEP 2.0) is the protocol that

enables the Smart Grid HAN for the residential customer

 SEP 2.0 works in conjunction with multiple communication technologies (physical layers)

What is the Smart Grid?

 Increased use of digital information and controls technology to improve reliability,

security, and efficiency of the electric grid;

 Dynamic optimization of grid operations and resources, with full cyber-security;

 Deployment and integration of distributed resources and generation, including

renewable resources;

 Development and incorporation of demand response, demand-side resources, and

energy efficiency resources;

 Deployment of "smart" technologies (real-time, automated, interactive

technologies that optimize the physical operation of appliances and consumer devices) for metering, communications concerning grid operations and status, and distribution automation;

 Integration of "smart" appliances and consumer devices;

 Deployment and integration of advanced electricity storage and peak-shaving technologies, including plug-in electric and hybrid electric vehicles, and

thermal storage air conditioning;

 Provision to consumers of timely information and control options;

 Development of standards for communication and interoperability of appliances and equipment connected to the electric grid, including the infrastructure serving the grid; and

 Identification and lowering of unreasonable or unnecessary barriers to adoption of

smart grid technologies, practices, and services.

Characteristics of a Smart Grid as described by Title XIII

of the Energy Independence and Security Act of 2007:

 Under the Energy Independence and Security Act (EISA) of

2007, the National Institute of Standards and Technology

(NIST) has "primary responsibility to coordinate

development of a framework that includes protocols and model standards for information management to achieve interoperability of smart grid devices and systems…"

 http://www.nist.gov/smartgrid/index.cfm

The Role of NIST

The Smart Grid Conceptual Model

Source: NIST Framework and Roadmap for Smart Grid Interoperability Standards

The Customer

Source: NIST Framework and Roadmap for Smart Grid Interoperability Standards

 The Home Area Network (HAN) allows home owners and their devices to participate in utility programs

 Started under ZigBee Alliance

– Now partners with WiFi and HomePlug Alliance and others – CSEP formed for common interoperability and certification

 SEP 2.0 works in conjunction with multiple communication technologies (physical layers)

The Home

 Is small inexpensive embedded downloadable software that resides

on consumer devices and appliances

 Scalable and addressable

– IPv6 protocol centric and is physical layer Independent

 What does it do?

 Peak load shaving

– By deferring the consumer high energy loads E.g Air Con, Pool Pumps

 Modify consumer behavior

– By providing real time energy usage with in home displays – Real time or time of use pricing

 Manage Residential Loads/Generation – Electric Vehicles/Renewables

– By Intelligently managing the load and generation, to prevent local distribution issues

 Supported today by the major Utilities in the US, Korea and Australia

 Rest of Asia and then Europe expected to follow

Smart Energy Profile 2.0 Overview

The Home Area Network - Connectivity

Portable Display

EMS

Energy Management System

Home AreaNetwork(HAN)

Wired Wireless Both

PC

DSL/Cable/Fiber Modem

ESI/Gateway

Internet

12345

Sub-Meter (EUMD)

Thermostats

SE1 to SE2 Application Layer Gateway (if required)

12345

Backhaul:

Radio, PLC etc.

Smart Meter

Energy Storage

Water, Gas Meter Appliances

 IEEE 802.15.4 (or ZigBee)

 Low power WPAN

 Up to 100-250 kbit/s, Mesh

 IEEE 802.11

 WiFi physical layer - WLAN

 Will become popular for consumer driven applications

 Participated in a public live demonstration

 Competing standards – P1901.1 and 1901.2 and G.hn

 SAE/ISO Electric Vehicle Charging

 SEP 2.0 can support all of these physical layers

SE2.0 Physical Layers

Utility Driven Smart Energy

Market Drivers

1 Peak energy issues

Rising energy demand Decommissioning old/dirty coal plants

Cost of peak generation Return on new generation capacity

2 New requirements on the grid

Electric Vehicle Charging Renewable Generation

3 Rising consumer energy bill

3 Information

Phone, Tablet, Computer, Display Energy Management Systems

4 Best in class product design

Simple, robust, ease of use Non-utility business opportunity

Broad Market Drivers

 Intermittent Renewables growth

 Peak Demand and Margin

 Threat of rolling blackouts

in several parts of the NA

 Electric Vehicles

 Plug in vehicles will tax the grid beyond its current capabilities

 OEM Revenue opportunity

Industrial Utility Consumer

© 2012 Renesas Electronics America Inc All rights reserved.

 Specific issues in

2015 in Texas and Canada

 Near term challenge is old generation is

replaced with Intermittent renewables

 Solution is demand side management

Peak Margin Improvements

2008

2010

Reference: NERC 2008 and 2010 Long Term Reliability Reports

© 2012 Renesas Electronics America Inc All rights reserved.

16

 Texas deregulated market stimulated demand and reduced investment in generation due to a large number of small

competitors

 Ontario economy is predicting a fast recovery

 Solution is demand side management

Peak Margin Issues in Texas and Ontario

Reference: NERC 2010 Long Term Reliability Reports

© 2012 Renesas Electronics America Inc All rights reserved.

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 NERC 2010 Reliability report highlighted the major issues

for the NA Electricity Grid

 Intermittent Renewables which replace old or

environmentally challenged generation is an issue that

requires demand side management

Demand Side Management

Addressed by SEP 2.0

 Air conditioning is the largest load during peak periods

 Thermostat replacement is inexpensive and easy to install

 Smart Thermostats can be 20% to 30% more efficient than manual thermostats

 Consumers that opt-in to

an HVAC program will save money

Examples of Demand Response:

Smart

Appliances

 Many loads can be

deferred or reduced during

peaks

 Whirlpool has announced

that all electronically

controlled appliances sold

will be Smart Energy

© 2012 Renesas Electronics America Inc All rights reserved.

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 Problem:

 Dependency on foreign oil

 Increasing gasoline costs

 Electric grid local infrastructure not designed to support wide-scale deployment of electric vehicles

 Replacing 74% of cars and light trucks with EVs would reduce

 Allowing charging during off peak

 Allowing EV sub metering (subsidies)

 Allowing charge roaming

 Allowing public charging stations

 EV as storage

Plug in Electric Vehicles

Consumer Desire to Lower Energy Costs

A bill at the end of the month does not help

consumer to identify wasted energy

Daily and hourly consumption information has

shown to save between 5-15%

SEP 2.0 Technical Challenges

Solution

 Product was built from ground up

 Apple Bonjour or xmDNS/DNS-SD to discover resources

 Over a year of vending testing

multi- Three layers of security

 High re-use of existing standards or a subset

 The Smart Grid meets the consumer in the next year

 We can no longer just built power plants to supply the peak

 Consumers can participate and be rewarded for saving

energy

 Utilities will become more efficient and pass on the savings

 Home appliances and devices will become more intelligent and will integrate into the Smart Grid

We need Smart Energy and

so does our Planet!

Questions?

Renesas Electronics America Inc.