Regulation Services Network The information contained in this presentation is for the 1 exclusive and confidential use of the recipient. Any other distribution, use, reproduction or alteration of the information contained in this presentation, by the addressee or by any other recipient, without the prior written consent of SEMPA Power Systems Ltd. is strictly prohibited. A Water Energy Nexus Company
Overview 1. How does the Electricity Market work? 2. What is an ISO/RTO? 3. What is Electricity System Regulation? 4. Sempa’s Regulation Services Network (RSN) 4. Sempa’s Regulation Services Network (RSN) 5. Examples of Regulating Resources 6. RSN Operations Overview 7. Pilot Opportunity - Next Steps 2 A Water Energy Nexus Company
Components of the Electricity Market 3 A Water Energy Nexus Company
ISO Procurement of Ancillary Services Operation of the grid involves two general areas of activity: • Transmission system control • Generation Control • Generation Control • Generation Dispatch • Automatic Generation Control (AGC) • System Regulation is Purchased as a service by the ISO 4 A Water Energy Nexus Company
System Regulation Second by second Second by second balancing of supply and load (system regulation), is currently accomplished by adjusting generation 5 A Water Energy Nexus Company
Growing Market Opportunity - Regulation 6 A Water Energy Nexus Company
Sempa Regulation Services Network 7 A Water Energy Nexus Company
Opportunities for Water Asset Owners Smart Grid to Smart Water – New Revenue for Water and Waste Water Asset Owners • New revenue stream from existing assets • Low risk to pilot, rapid success, easy to scale • Leadership in Smart Grid and Smart Water Technologies 8 A Water Energy Nexus Company
Resource Control and Optimization Setpoints selected to achieve ISO target within resource constraints Resource Ontology: State-dependent Resource Regulation Response operating constraints Optimization Engine (R3OE) for each resource Resource State feedback 9 A Water Energy Nexus Company
RSN Technical Architecture Secured channel using: R3OE • AES-128 authentication • SHA-1 integrity • AES-128 encryption DNP3 slave Site resource control and over: measurement: • FrameRelay • Insure resource control • Hardware VPN integrity • Software VPN • Perform local device and process and process measurement Replicated database for data integrity and offline analysis 10 A Water Energy Nexus Company
Waste Water Aeration 11 A Water Energy Nexus Company
Water Pumping 12 A Water Energy Nexus Company
RSN Override 13 A Water Energy Nexus Company
Regulation – ISO Signal 14 A Water Energy Nexus Company
Regulation – Resource Response 15 A Water Energy Nexus Company
Regulation – Resource Response 16 A Water Energy Nexus Company
Regulation – Resource Response 17 A Water Energy Nexus Company
Regulation – Resource Response SimPump1 (500 kW) STARTS STARTS Total number 10 Average number per hour 1.54 OFF time Average 0:00:21:58 Minimum 0:00:19:56 Maximum 0:00:31:00 ON time Average 0:00:19:53 Minimum 0:00:12:24 Maximum 0:00:23:08 18 A Water Energy Nexus Company
Regulation – Resource Response SimPump2 (550 kW) STARTS STARTS Total number 9 Average number per hour 1.38 OFF time Average 0:00:22:14 Minimum 0:00:20:00 Maximum 0:00:26:56 ON time Average 0:00:21:29 Minimum 0:00:20:00 Maximum 0:00:26:44 19 A Water Energy Nexus Company
Regulation – Resource Response 20 A Water Energy Nexus Company
Regulation – Resource Response 21 A Water Energy Nexus Company
Regulation – Resource Response 22 A Water Energy Nexus Company
Regulation – Resource Response 23 A Water Energy Nexus Company
Regulation – Resource Response 24 A Water Energy Nexus Company
Regulation – Resource Response 25 A Water Energy Nexus Company
Regulation – Resource Response 26 A Water Energy Nexus Company
Regulation – Resource Response 27 A Water Energy Nexus Company
Regulation – Resource Response 28 A Water Energy Nexus Company
Regulation – Resource Response 29 A Water Energy Nexus Company
Regulation – Resource Response The aggregate The aggregate response of each resource in the network is compiled to form the regulation response 30 A Water Energy Nexus Company
Resource Operating Neutrality 31 A Water Energy Nexus Company
Resource Operating Neutrality 32 A Water Energy Nexus Company
Resource Operating Neutrality Pump (1000 kW) Pump (1000 kW) Without RSN Enabled: Total Starts: 6 Total Run Time: 03:15:15 Energy Consumption: 3254 kWh With RSN Enabled: Total Starts: 6 Total Run Time: 03:16:04 Energy Consumption: 3268 kWh 33 A Water Energy Nexus Company
Revenue Opportunity Participation in the long term System Regulation market will enable individual resources to generate revenue at an average rate of $50,000 annually per megawatt of regulation annually per megawatt of regulation range. The total amount is dependent on the facility’s electrical power availability and the resource's operating boundaries. 34 A Water Energy Nexus Company
Pilot Opportunity - Next Steps Asset Identification & Operational Audits 3-6 MONTHS Engineer & Integrate Controls Connect to ISO Signals THS Pilot Regulation Asset Revenue Generation 35 A Water Energy Nexus Company
Ontario Water Energy Nexus Smart Grid Pilot • – Demonstrated leadership in the water energy nexus – Revenue share supports continued innovation • Municipalities – Reduce energy costs associated with water systems (up to $10M per year) – New revenue stream based on monetizing flexibility and storage inherent in existing water assets • – – New, lower cost source of system regulation New, lower cost source of system regulation – Free up to 100MW of clean, green power – Green, scalable support for integration of intermittent renewables • – Leading, high value jobs in the green economy • A Water Energy Nexus Company - Global leadership in smart grid applications at the water energy nexus 36 A Water Energy Nexus Company
Thank You www.sempapower.com 37 A Water Energy Nexus Company
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