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BUSINESS PLAN

Executive summary: Optimization and integration of Distributed Energy Resources (DER) into
the current power system at the distribution network level is more of a necessity today for the sake
of economy and energy efficiency. Hence, in order to aggregate all kind of DER’s in a most
effective way, micro -grid approach appears to be the most ideal one. Micro -grids usually consist
of distributed generation sources, mostly renewable energy generators such as solar panels and
wind turbines, normally accompanied by some form of energy storage device, such as a battery or
bank of batteries. It functions by exporting energy into the national grid and is controlled by a local
community energy group or cooperative as Saskpower.
Company Overview: Saskpower is the principal electric utility in Saskatchewan, Canada.
Established in 1929 by the provincial government, it serves more than 522,000 customers and
manages over $10 billion in assets.
Industry and Market Analysis: The power system of the future will rely heavily on the
integration and optimization of distributed energy resources (DERs) whether those resources
generate, consume or store electricity. This energy future demands a new relationship between
system operators, asset owners and customers. Policy makers are taking a larger role in financially
supporting and enabling progress toward this end state.

SaskPower is also working to enable the emerging energy future. It has laid out a grid
modernization roadmap and is starting to deploy automated metering infrastructure which will
support the integration of DERs. There are a suite of demand side management (DSM) and self-
generation programs offered to customers. Despite this, there is still much work to be done to
understand the technical and business aspects of integrating and managing DERs, determining the
role that SaskPower will play and developing programs that will advance progress.

Operations and Development Strategy:


Saskpower is currently focusing on technical and business aspects of integrating and managing
DER.
Technical aspects: Challenges & Solutions
Integration of DERs connected at the Distribution Network level complicates the network
operations and control. There will be variability in the loads due to voltage control issues.
Distribution networks have not been designed to cope with power injections from Distributed
Generation (DG), hence the procreation of DG on the electric networks results in a number of
unpropitious impacts, including voltage variation as mentioned earlier and in addition altered
transient stability, degraded protection, bi-directional power flow and increased fault level.
Solution: The deployment of smart grid technologies provides the opportunity to develop new
techniques to better address the issues related to the variability in the loads and the above stated
unpropitious impacts. There will be generation-demand balance and the provision of proper
voltage control and reactive power support.
Conforming to its general structure, a micro-grid could be defined as a group of interconnected
DERs (generators, storage devices and controllable loads), which, together with imports, can meet
the internal demand and the contracted exports, working either in the Grid Connected Mode (GCM)
or the Islanded Operations Mode (IOM) with respect to the main grid. Thus, the DERs contained
within the micro-grid should be able to provide the various services required for its secure
operations, such as the generation-demand balance and the provision of proper voltage control and
reactive power support.
Business Aspects: Optimization and integration of Distributed Energy Resources (DER) with
micro-grid approach is now being driven by consumers and policy makers.
Saskpower can and should turn it into business opportunity via its emerging aspects of the business
model, which can open up innovative ways of increasing its revenue, improving asset performance
and decreasing its operating cost.
It can do so by:
» Enhancing customer choice to participate in demand response, load shifting, and the sale of
excess and stored DER generation into other markets.
» downplaying asset risk by identifying and managing negative performance patterns via cloud-
based analysis and network modeling of DER sensor data.
» Mitigating utility constraint via demand response by leveraging both utility and consumer assets
to dynamically shift output among generation resources.
Conclusion: In many markets today, demand response resources are successfully being used in
order to support resource adequacy. DERs have the potential function either as demand response
resources, or power production resources or both. But the Integration of DERs Must Maintain Grid
Stability and Power Quality for all Customers.
To provide reliable power of a given quality, grid operators have operational requirements which
should be adopted and are constrained in how they can balance supply and demand. The
application of DERs must be considered in light of these constraints.

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