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the network, advanced protective relays with dynamic and zonal control capabilities, dynamic capacitor bank controllers, and condition-based transformer-management systems (to name a few). • Transmission wide-area visualization and control – transmission control systems that rapidly sense and respond to disturbances. • Electric and plug-in electric hybrid vehicles (EVs/PHEVs) – the batteries in EVs represent both a new type of load that must be managed and an opportunity for them to discharge as energy storage resources to support the grid. Demand response is intentionally defined as an asset, to differentiate the investment required for installing its control and communications capabilities from its use to achieve one or more functions. Although we recognize that the term demand response is often used to represent both the asset and its use for the peak load management function, this is more precisely the technology area represented by the intersection of the demand response asset and the peak load-management function. This distinction between demand response as an asset and the functions it can provide is helpful because demand response, like many other smart grid assets, can provide a number of other functional benefits ranging from ancillary services to reliability. Along with distributed generation and storage, demand response can play a key role in providing the additional ancillary services and reliability required for effectively integrating renewables. Additionally, as discussed in Section 3.0, there is potential for the control signals that support demand response to be used for conducting end-use system diagnostics and improving feedback to consumers to obtain energy efficiency. The notion of active control in response to grid conditions is foundational to the notion of a smart grid. Most energy efficiency investments are passive in that they require no control at all (better insulation or air conditioner efficiency, for example). Some forms of active energy efficiency are controls-based (e.g., thermostat setbacks, clothes dryer humidity controls) but are not designed to be responsive to grid conditions. Hence, energy efficiency investments, while critical to obtaining efficiency and carbon savings, are not smart grid assets in this framework. However, this report does consider obtaining efficiency benefits as a functional objective for the use of smart grid assets. Similarly, renewables themselves are not generally envisioned as a controllable smart grid asset.1 The carbon-free energy they supply is critical to achieving the nation’s carbon-management goals, however. One of the functions of a smart grid is the ability to manage the assets under its control to help integrate renewables, such as mitigating the need for additional costly ancillary services to manage their intermittency, and reducing costs for improved voltage control schemes and short-circuit protection. 1 However, the power factor of the output from the inverters for renewable generators could be managed to meet the reactive power needs of the grid. 2.4PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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