Introduction to Smart Grid

1. Introduction to Smart Grid Presentation to Clark University “Greening the Corporation” Sept 29, 2010

2. National Grid:an international electricity and gas company • 50% US, 50% UK • 27,000 employees • Distributes electricity to 3.3 million customers • Provides natural gas to 3.5 million customers • Services 1.1 million customers of Long Island Power Authority (LIPA) • Currently owns over 4,000MW of generation Gas Electricity

3. National Grid: An international electricity and gas company Gas Distribution - UK Transmission – Electricity and Gas - UK Operates the UK gas distribution system; distributes gas on behalf of shippers and suppliers to 11 million consumers but has 20m+ meters Owns the high-voltage electricity transmission system in England and Wales and operates the system across Britain. Also owns and operates the high pressure gas transmission system in Britain.

4. Regulatory Environment • Natural Monopoly • Deregulation of Generation Assets • Pipes and Wires – Distribution • Regulation by State PUCs • Commodity Charge as Pass through • Currently appears as an average KW price

5. Storage Storage + + Energy Market is evolving Traditional Energy Market - supply driven Today’s Evolving Market - customer driven Customers focus on economic and environmental value, using a wider range of products and services Solar water heating Micro CHP Efficient Boilers Heat Pumps Large centralised generation Domestic Micro Biomass Industrial and commercial Micro wind Smart metering Small range of conventional technologies Electricity flows to users, and surplus from distributed generation flows back to grid Nuclear power station Hydro-electric power Gas production Coal/gas fired power station $$$ Energy volume drives energy company revenue Smart network technology rolled out Natural Gas Hydrogen CO2 Biogas Heat Static infrastructure Intermittency management Technology choice proliferates Energy flows to users Energy flows to users Price and reliability are main determinants of customer choice Industrial and commercial Onshore and offshore wind Nuclear power station CCS plant (coal/gas) Hydro-electric power Large scale CHP and biomass Gas production CO2 emission reduction and wider energy services drives energy company revenue $$$ CO2 transport and storage

6. Market Challenges • Climate Change • Reduce our emissions of greenhouse gases  • Reshape markets by aligning regulatory and public policy incentives • Encourage energy efficiency • Modernizing relationship with consumers • Ageing Infrastructure and Skills • Investment in Transmission and Distribution • Enhance ability to handle renewable generation • Support through regulatory framework

7. Technology has a key role… Smarter grids and smart metering

8. Smart technology means different things to different people – a common language and vision are essential Smart Technology Definition Technology that provides advanced information, automation and control capabilities to help us to distribute, measure and use energy more efficiently, reliably, safely and sustainably – all the way from the point of generation to consumer appliances What is Smart Technology? What does it allow you to do? • Meter that records interval data • 2-way communications, remote configuration • Informative display • Meter Data Management System • Automatic meter reading • Enable customer choice and control • Choice of tariffs e.g. time of use – peak shifting • Catalyst and validation of Energy Efficiency programs • Remote configuration Meter • Sensors & measuring devices • Analytical programs e.g. pattern recognition • Automatic switches & controls • Decision support tools & graphical interfaces • Enable Distributed generation • Remotely detect, diagnose, predict and correct network problems & faults • Condition-based, preventative maintenance • Automatic fault prevention, isolation & restoration Grid • Customer portal & Home Area Network • Automated thermostats, switches, plugs & appliances • Load controllers e.g. PHEV controller • Automatically optimize selected home appliances • Demand response programs • Improve satisfaction levels Home

9. The prime logic for Smart Grid? – Customer and Environmental Orientation. The deployment of Smart Grid technologies will enable the shift in customer behavior towards Energy Efficiency, Energy Management and increase Customer Service levels. The trend to increased consumer choice and control will be different for customers dependent upon their circumstances and needs – more segmentation will occur. The “one ratepayer” approach to serving residential and small business customers must evolve, we will have to be more innovative to satisfy customers going forward. With increasing volatility in energy prices, and climate change becoming a more prominent public concern, customer needs are changing. Customers need the “tools” to play their part in the shift towards a new energy future.

10. What will customers experience Tomorrow’s energy - customer driven Meter-centric home providing basic consumption information, export (net) metering and, possibly, appliance control Appliance control/demand response In-home display Smart meter Peak shaving and simple demand response, fault identification & restoration verification Micro-generation Network control centre • More consumer involvement & choice, Choice, Control, Convenience. • More distributed generation • Market drives solutions, closes customer expectation gap • More integrated, holistic approach

11. National Grid Massachusetts and New York Proposals

12. Massachusetts Pilot Overview Response to MA Green Communities Act 15,000 electric only customers in Worcester Diverse customer base $57M cost – “Spine” only 5 Substations, 17 Feeders Testing Critical Peak Price IHD Testing

13. How You Can Get Involved! • Business Implications for Smart Grid • National transformation effort • We work with many business partners • Community Based Marketing Plan • Residential Customers • Commercial Customers • Partnering with Clark and WPI • Volunteer Opportunities • May link to Course Requirements