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Title: Foundational Report Series: Advanced Distribution Management Systems for Grid Modernization, Business Case Calculations for DMS

Abstract

Distribution Management System (DMS) applications require a substantial commitment of technical and financial resources. In order to proceed beyond limited-scale demonstration projects, utilities must have a clear understanding of the business case for committing these resources that recognizes the total cost of ownership. Many of the benefits provided by investments in DMSs do not translate easily into monetary terms, making cost-benefit calculations difficult. For example, Fault Location Isolation and Service Restoration (FLISR) can significantly reduce customer outage duration and improve reliability. However, there is no well-established and universally-accepted procedure for converting these benefits into monetary terms that can be compared directly to investment costs. This report presents a methodology to analyze the benefits and costs of DMS applications as fundamental to the business case.

Authors:
 [1];  [1];  [1];  [2]
  1. Argonne National Lab. (ANL), Argonne, IL (United States)
  2. Reilly Associates, Pittson, PA (United States)
Publication Date:
Research Org.:
Argonne National Lab. (ANL), Argonne, IL (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
OSTI Identifier:
1342555
Report Number(s):
ANL/ESD-17/3
133447
DOE Contract Number:
AC02-06CH11357
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY, AND ECONOMY

Citation Formats

Lu, Xiaonan, Singh, Ravindra, Wang, Jianhui, and Reilly, James T. Foundational Report Series: Advanced Distribution Management Systems for Grid Modernization, Business Case Calculations for DMS. United States: N. p., 2017. Web. doi:10.2172/1342555.
Lu, Xiaonan, Singh, Ravindra, Wang, Jianhui, & Reilly, James T. Foundational Report Series: Advanced Distribution Management Systems for Grid Modernization, Business Case Calculations for DMS. United States. doi:10.2172/1342555.
Lu, Xiaonan, Singh, Ravindra, Wang, Jianhui, and Reilly, James T. Sun . "Foundational Report Series: Advanced Distribution Management Systems for Grid Modernization, Business Case Calculations for DMS". United States. doi:10.2172/1342555. https://www.osti.gov/servlets/purl/1342555.
@article{osti_1342555,
title = {Foundational Report Series: Advanced Distribution Management Systems for Grid Modernization, Business Case Calculations for DMS},
author = {Lu, Xiaonan and Singh, Ravindra and Wang, Jianhui and Reilly, James T.},
abstractNote = {Distribution Management System (DMS) applications require a substantial commitment of technical and financial resources. In order to proceed beyond limited-scale demonstration projects, utilities must have a clear understanding of the business case for committing these resources that recognizes the total cost of ownership. Many of the benefits provided by investments in DMSs do not translate easily into monetary terms, making cost-benefit calculations difficult. For example, Fault Location Isolation and Service Restoration (FLISR) can significantly reduce customer outage duration and improve reliability. However, there is no well-established and universally-accepted procedure for converting these benefits into monetary terms that can be compared directly to investment costs. This report presents a methodology to analyze the benefits and costs of DMS applications as fundamental to the business case.},
doi = {10.2172/1342555},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Sun Jan 01 00:00:00 EST 2017},
month = {Sun Jan 01 00:00:00 EST 2017}
}

Technical Report:

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  • Grid modernization is transforming the operation and management of electric distribution systems from manual, paper-driven business processes to electronic, computer-assisted decisionmaking. At the center of this business transformation is the distribution management system (DMS), which provides a foundation from which optimal levels of performance can be achieved in an increasingly complex business and operating environment. Electric distribution utilities are facing many new challenges that are dramatically increasing the complexity of operating and managing the electric distribution system: growing customer expectations for service reliability and power quality, pressure to achieve better efficiency and utilization of existing distribution system assets, and reductionmore » of greenhouse gas emissions by accommodating high penetration levels of distributed generating resources powered by renewable energy sources (wind, solar, etc.). Recent “storm of the century” events in the northeastern United States and the lengthy power outages and customer hardships that followed have greatly elevated the need to make power delivery systems more resilient to major storm events and to provide a more effective electric utility response during such regional power grid emergencies. Despite these newly emerging challenges for electric distribution system operators, only a small percentage of electric utilities have actually implemented a DMS. This paper discusses reasons why a DMS is needed and why the DMS may emerge as a mission-critical system that will soon be considered essential as electric utilities roll out their grid modernization strategies.« less
  • Many distribution management systems (DMS) projects have achieved limited success because the electric utility did not sufficiently plan for actual use of the DMS functions in the control room environment. As a result, end users were not clear on how to use the new application software in actual production environments with existing, well-established business processes. An important first step in the DMS implementation process is development and refinement of the “to be” business processes. Development of use cases for the required DMS application functions is a key activity that leads to the formulation of the “to be” requirements. It ismore » also an important activity that is needed to develop specifications that are used to procure a new DMS.« less
  • Deregulation of the electric utility industry, environmental concerns associated with traditional fossil fuel-based power plants, volatility of electric energy costs, Federal and State regulatory support of “green” energy, and rapid technological developments all support the growth of Distributed Energy Resources (DERs) in electric utility systems and ensure an important role for DERs in the smart grid and other aspects of modern utilities. DERs include distributed generation (DG) systems, such as renewables; controllable loads (also known as demand response); and energy storage systems. This report describes the role of aggregators of DERs in providing optimal services to distribution networks, through DERmore » monitoring and control systems—collectively referred to as a Distributed Energy Resource Management System (DERMS)—and microgrids in various configurations.« less
  • The objective of this survey is to benchmark current practices for DMS implementation to serve as a guide for future system implementations. The survey sought information on current plans to implement DMS, DMS functions of interest, implementation challenges, functional benefits achieved, and other relevant information. These survey results were combined (where possible) with results of similar surveys conducted in the previous four years to observe trends over time.
  • Electric distribution utilities encounter many challenges to successful deployment of Distribution Management Systems (DMSs). The key challenges are documented in this report, along with suggestions for overcoming them. This report offers a recommended list of activities for implementing a DMS. It takes a strategic approach to implementing DMS from a project management perspective. The project management strategy covers DMS planning, procurement, design, building, testing, Installation, commissioning, and system integration issues and solutions. It identifies the risks that are associated with implementation and suggests strategies for utilities to use to mitigate them or avoid them altogether. Attention is given to commonmore » barriers to successful DMS implementation. This report begins with an overview of the implementation strategy for a DMS and proceeds to put forward a basic approach for procuring hardware and software for a DMS; designing the interfaces with external corporate computing systems such as EMS, GIS, OMS, and AMI; and implementing a complete solution.« less