{"id":894,"date":"2013-10-24T05:27:57","date_gmt":"2013-10-24T10:27:57","guid":{"rendered":"https:\/\/allenergyconsulting.com\/blog\/?p=894"},"modified":"2013-10-24T09:06:46","modified_gmt":"2013-10-24T14:06:46","slug":"grid-resilience-planning-and-td-spending","status":"publish","type":"post","link":"https:\/\/allenergyconsulting.com\/blog\/2013\/10\/24\/grid-resilience-planning-and-td-spending\/","title":{"rendered":"GRID Resilience \u2013 Planning and T&#038;D Spending"},"content":{"rendered":"<p><span style=\"font-size: small;\"><span style=\"font-family: Calibri;\">Continuing with the insights inspired by the \u00a0<\/span><\/span><span style=\"color: #0000ff; font-family: Calibri; font-size: small;\"><a href=\"http:\/\/www.scottmadden.com\/userFiles\/FCK\/files\/ScottMadden_Early%20Fall%202013%20Energy%20Industry%20Update_2013-0924.pdf\">ScottMadden Energy Industry update<\/a>,<\/span><span style=\"font-size: small;\"><span style=\"font-family: Calibri;\"> the slide on GRID resilience offers some insights on planning related issues.\u00a0\u00a0 GRID resilience is essential in resource planning.\u00a0\u00a0 The layman needs to know that electricity must be balanced at all times, that means \u00a0supply\/demand must be in sync.\u00a0 A surge in demand must automatically be met with a surge in supply or vice versa, no room for delay is allowed.\u00a0 If there is a delay, there will be a potential for an equipment failure and a prolong outage.\u00a0\u00a0 During storms, the failure of equipment down in the distribution level causes demand losses which can then trigger imbalances in the system and lead \u00a0to wider disruptions beyond the initial storm damage.<\/span><\/span><\/p>\n<p><span style=\"font-family: Calibri; font-size: small;\">The graph on Weather Related Outages is very telling of the impact on storms.\u00a0 However, before we account for the increase in outage to just climate change, let me note causation and correlation issue.\u00a0\u00a0 As noted in my <\/span><span style=\"color: #0000ff; font-family: Calibri; font-size: small;\"><a href=\"https:\/\/allenergyconsulting.com\/blog\/2013\/05\/22\/power-industry-challenges-strategic-threat\/\">previous posting Power Industry Challenges<\/a>,<\/span><span style=\"font-size: small;\"><span style=\"font-family: Calibri;\"> the age of the distribution system is worse off than the generation resources.\u00a0\u00a0 Given that knowledge, it is very possible to have increasing outages without a significant increase trend in weather related storms.\u00a0 A storm ten years ago will not be impactful in terms of electricity outage as a storm now given the aging of the poles, transformer, etc.. \u00a0Investment in Transmission (T) &amp;Distribution (D)\u00a0is no doubt needed \u2013 more so in D than in T.\u00a0\u00a0 <\/span><\/span><\/p>\n<p><span style=\"font-size: small;\"><span style=\"font-family: Calibri;\">In terms of a utility, the level of investment is a function of the level of reliability that society wants to pay for.\u00a0\u00a0 For the individuals who want more reliability, they can either install back up or self-generate on-site.\u00a0 I suspect the answer is to see more distributed generation only in the fact that the average consumer level of reliability would not be cost effective enough for various applications.\u00a0 If the utility were to set the standard of reliability too high, it would be a very regressive policy.\u00a0 <\/span><\/span><\/p>\n<p><span style=\"font-size: small;\"><span style=\"font-family: Calibri;\">A utility operation is more of a society tool to offer benefits of basic essentials to society which would be out of the reach for many individuals.\u00a0 If utilities started offering Rolls Royce systems, it would cause a regressive rate structure and thereby, negating their very existence of being the tool to enable the mass of society to obtain a basic essential.\u00a0\u00a0 The commissions need to examine very closely the cost benefits of these items in the T &amp; D filings, and make sure they are balanced with the need of the AVERAGE consumer.\u00a0\u00a0 With this insight and the business model change we discussed in the beginning of the examination of ScottMadden update, many utilities will likely be much smaller than they were before.<\/span><\/span><\/p>\n<p><span style=\"font-size: small;\"><span style=\"font-family: Calibri;\">Stay tune for more insights derived from ScottMadden review.\u00a0 Please do consider All Energy Consulting for your consulting needs as I can help giving you a different look into the challenges that lay ahead in the energy world.<\/span><\/span><\/p>\n<p><span style=\"font-size: small;\"><span style=\"font-family: Calibri;\">Your Energy Consultant,<\/span><\/span><\/p>\n<p><a href=\"mailto:dkb@allenergyconsulting.com?subject=Market%20Insights\"><span style=\"color: #0000ff; font-family: Calibri; font-size: small;\">David K. Bellman<\/span><\/a><\/p>\n<p><span style=\"font-size: small;\"><span style=\"font-family: Calibri;\">614-356-0484<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Continuing with the insights inspired by the \u00a0ScottMadden Energy Industry update, the slide on GRID resilience offers some insights on planning related issues.\u00a0\u00a0 GRID resilience is essential in resource planning.\u00a0\u00a0 The layman needs to know that electricity must be balanced at all times, that means \u00a0supply\/demand must be in sync.\u00a0 A surge in demand must [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":267,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,6],"tags":[240,239,238,154],"class_list":["post-894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-insights","category-power","tag-distribution","tag-grid","tag-resilience","tag-transmission"],"_links":{"self":[{"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/posts\/894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/comments?post=894"}],"version-history":[{"count":5,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/posts\/894\/revisions"}],"predecessor-version":[{"id":896,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/posts\/894\/revisions\/896"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/media\/267"}],"wp:attachment":[{"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/media?parent=894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/categories?post=894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/tags?post=894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}