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Introduction to Smart Grid

Presentation to Clark University “Greening the Corporation” Sept 29, 2010

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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

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National Grid: An international electricity and gas company

Gas Distribution - UK Transmission – Electricity and Gas - UK

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.

Operates the UK gas distribution system; distributes gas on behalf of shippers and suppliers to 11 million consumers but has 20m+ meters

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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

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Energy Market is evolving

Traditional Energy Market - supply driven Today’s Evolving Market - customer driven

Coal/gas fired power station

Energy volume drives energy

company revenue

Small range of conventional technologies

Large centralised generation

Static infrastructure

$$$

Price and reliability are main determinants of

customer choice

Energy flows to users

Gas productionHydro-electric power

Nuclear power station

Energy flows to users

CO2 emission reduction and wider energy

services drives energy company revenue

Customers focus on economic and environmental value, using a wider range of products and services

Electricity flows to users, and surplus

from distributed generation flows

back to grid

Micro wind Smart metering

Micro Biomass

Smart network technology rolled out

Micro CHP

CCS plant (coal/gas)

Solar water

heating

Nuclear power station

CO2 transport and storage

Hydro-electric power

Heat Pumps

Large scale CHP and biomass

$$$

Gas production

Onshore and

offshore wind

Technology choice proliferates

Efficient Boilers

Natural GasHydrogen

CO2

BiogasHeat

Industrial and

commercial

Domestic

Industrial and

commercial

Intermittency management

Storage+

Storage+

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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

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Technology has a key role… Smarter grids and smart metering

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Smart Technology DefinitionTechnology 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

Smart technology means different things to different people – a common language and vision are essential

What does it allow you to do?What is Smart Technology?

Automatically optimize selected home appliances Demand response programs Improve satisfaction levels

Hom

e

Customer portal & Home Area Network Automated thermostats, switches,

plugs & appliances Load controllers e.g. PHEV controller

Met

er

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

Grid

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

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The prime logic for Smart Grid? – Customer and Environmental Orientation.

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.

The trend to increased consumer choice and control will be different

for customers dependent upon their circumstances

and needs – more segmentation will occur.

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.

The deployment of Smart Grid technologies will enable the shift in customer behavior towards Energy Efficiency, Energy Management and increase Customer Service levels.

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What will customers experience

CO2 emission reduction and wider energy

services drives energy company revenue

Customers focus on economic and

environmental value, using a wider range

of products and services

Electricity flows to users, and surplus

from distributed generation flows

back to grid

Micro wind Smart metering

BiomassBiomass

Smart grid technology rolled out

Micro CHP

CCS plant (coal/gas)

Solar water

heating

Nuclear power station

CO2 transport and storage

Hydro-electric power

Micro solar

Solar

$$$

Gas production

Onshore and

offshore wind

Technology choice proliferates

Tomorrow’s energy - customer driven

More consumer involvement & choice, Choice, Control, Convenience. More distributed generation Market drives solutions, closes customer expectation gap More integrated, holistic approach

Appliance control/demand

response

Network control centre

Peak shaving and simple demand response, fault identification & restoration verification

Meter-centric home providing basic consumption information, export (net) metering and, possibly, appliance control

Smart meter

In-home display

Micro-generation

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National Grid Massachusetts and New York Proposals

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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

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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