THE

ADVANCED
SMART GRID
EDGE POWER
DRIVING
SUSTAINABILITY

Andres Carvallo
Founder & CEO
Compass Management Group
www.512cmg.com

2003 – 2014 © Andres Carvallo 1

 Electricity Drives All Modern Life

The Grid has

become the
fundamental
infrastructure that
provides the
quintessential
essence of our
modern lives:
electricity

Without electricity,
we lose modernity,
as we rapidly revert
to a more primitive
state, focused on
survival and our
most basic
physiological and
safety needs.

2003 – 2014 © Andres Carvallo 2

We Have Been Here Before

The Grid must be

upgraded to become
an Advanced Smart
Grid because the
nature of technology
is to evolve over time
to empower
individuals at the
edge.

The electricity
industry will follow
similar trend lines
described by
evolution in the IT
and telecom
industries.

2003 – 2014 © Andres Carvallo 3

1. The Inevitable Emergence of The Smart Grid

—  The power grid is the most fundamental infrastructure ever built by man.

—  The power grid in North America was chosen as the greatest innovation
ever built, according the National Academy of Science.

—  The Power Grid has been automated from the Power Plant to the
Substation with Distributed Control Systems (DCS) since 1975
(Honeywell), Supervisory Control and Data Acquisition Systems
(SCADA) since 1979 (Modicon now Schneider Electric), and Energy
Management Systems (EMS) since 1981 (all major vendors).

2003 – 2014 © Andres Carvallo 4

 What is the Smart Grid 1.0?
It is the automation of the entire Utility Grid

—  Smart Grid 1.0 = GA + TA + SA + DA +AMI

—  Smart Grid 1.0 monitors, controls and manages the creation,
distribution and consumption of energy, AND has dynamic
visibility and control of the distribution assets, including
meters.

—  This steps requires the logical integration of SCADA/EMS

with DMS with GIS with AMI/MDM in a new way.

2003 – 2014 © Andres Carvallo 5

 1st Generation Smart Grids

Most Smart Grids

start with an
Application and
then face numerous
System Integration
projects.

Utilities are
controlled by silos
and lack of
interoperability

Lack of competition
and monopoly
behaviors prevent
innovation

Regulatory model
does not help either

2003 – 2014 © Andres Carvallo 6

Multiple Versions of The Truth

2003 – 2014 © Andres Carvallo 7

 What is the Smart Grid 2.0?
Utility Grids + Buildings + Homes + Vehicles

—  My Smart Grid definition since March 5, 2004 united the

Utility Grid, Buildings, Homes, and Vehicles into one grid

—  Smart Grid = GA + TA + SA + DA + DR + AMI + DER

(i.e. DG + ES + EV)

—  The Smart Grid monitors, controls and manages the

creation, distribution and consumption of energy

—  The Smart Grid of the future is distributed, interactive, self-

healing and reaches every device connected to it.

2003 – 2014 © Andres Carvallo 8

 2nd Generation Smart Grids
(a.k.a. The Advanced Smart Grid)
The Advanced Smart
Grid starts with a
Network Design and
Integrated Network
Plan, and becomes
able to integrate
Applications as
needed, more
efficiently and
securely.

Interoperability and
standards are key.
Protection of
distribution network
is also key.

Customer assets like

Solar PV, EV s, smart
applicaces, micro
CHP, energy storage
and their control
systems require
integration.
2003 – 2014 © Andres Carvallo 9
 1st Generation & 2nd Generation Smart Grids

1st Generation 2nd Generation (Advanced)

Initial Step Application (e.g., AMI, DR, Smart Grid Architecture
DA, V2G, etc.) Framework Design & IP Network
Plan
Networks Networks driven by Networks driven by Use Case
Application Choices Requirements and Design
System Integration Multiple Projects: (N*(N-1))/ Minimal Projects; the framework
Project 2, where N = number of anticipates new applications
Requirement systems
Security Challenge; Each new Optimized; Integrated Security is
application requires a security part of the Smart Grid
project Architectural Framework
Data Capacity Determined by the weakest Optimized; Integrated Energy
link in the chain Ecosystem is designed for optimal
data capacity / performance
Total Cost of Higher Lower
Ownership (TCO)
2003 – 2014 © Andres Carvallo 10
When How You Start Really Matters

Most  Smart  Grids  

start  with  an  
Applica4on,  o6en  
AMI,  and  then  face  
numerous  System  
Integra4on  projects.    
 
 
The  Advanced  Smart  
Grid  starts  with  a  
Network  Design  and  
Integrated  Network  
Plan,  and  becomes  
able  to  integrate  
Applica4ons    as  
needed,  more  
efficiently  and  
securely.  
2003 – 2014 © Andres Carvallo 11
Deliberate vs. Accidental Design

2003 – 2014 © Andres Carvallo 12

The Advanced Smart Grid Architecture Design

2003 – 2014 © Andres Carvallo 13

Smart Home Design

2003 – 2014 © Andres Carvallo 14

Smart Building Design

2003 – 2014 © Andres Carvallo 15

The Advanced Smart Grid Design

2003 – 2014 © Andres Carvallo 16

Total Dynamic Control - KPIs and Dashboards

2003 – 2014 © Andres Carvallo 17

From Consumers to Prosumers

2003 – 2014 © Andres Carvallo 18

From 1.0 to 2.0– A New Way

2003 – 2014 © Andres Carvallo 19

 What is the Smart Grid 3.0?
Smart Grid 2.0’s interconnected enabling energy roaming

—  My Smart Grid definition since March 5, 2004 unites the

Utility Grid, Buildings, Homes, and Vehicles into one grid
and predicts the eventual roaming of energy among service
territories.

—  Either ISO/RTOs, Utilities or New Energy Service Providers

will perform such roaming exchange and settlements.

—  This new reality will decouple the transaction for the
commodity from the physical delivery of it regionally,
national, internationally, globally.

2003 – 2014 © Andres Carvallo 20

3rd Generation Smart Grids

2003 – 2014 © Andres Carvallo 21

Smart Grid Journey from 1.0 to 3.0

2003 – 2014 © Andres Carvallo 22

 Questions?

Andres Carvallo
Founder & CEO
Compass Management Group
www.512cmg.com

andres@512cmg.com
512-215-9080

2003 – 2014 © Andres Carvallo 23