Smart Grid Paul Bircham Commercial Strategy & Support Director

Existing Smart Grid demonstration programme Smart Grid Agenda Drivers of Change Existing Smart Grid demonstration programme Next generation Network Management System Key Gaps and Opportunities

Drivers of Change to Smart Grid Penetration of generation ahead of forecast Will accelerate as innovation lowers price and cost to connect ENW >1GW/month Electric cars and heat pumps will increase demand and flexibility eg Tesla hot spot 20 x 120kW chargers equivalent to 4 super stores New relationships & markets forming Roll out of commercial based capacity solutions such as Active Network Management Stakeholders challenge DNOs to play larger role in delivering environmental and social benefits

Existing Smart Grid Demonstration programme Leading national development of smart solutions Delivering value from existing assets Expanding customer choice Five flagship projects over £40 million Capacity to Customers £10m – completed 2015 New technology and commercial arrangements to increase network capacity and accelerate renewable energy connection. Successfully demonstrated, adopted as business as usual in Elelctricity North West and replicated across GB market. CLASS £9m – completed 2016 Manage electricity consumption using dynamic voltage control. Successfully demonstrated. Commercial deployment in Electricity North West underway. Smart Street £11.5m – 2014 – 2017 Dynamic optimisation of network voltage within statutory limits. In progress and on-track. Respond £5.5m – 2014 – 2018 Innovative techniques for managing fault current. In progress and on-track. Celsius £5.5m 2015 – 2018 Co-ordinated approach to managing the temperature of electrical assets in distribution substations. In progress and on-track. Capacity to Customers £10m Completed 2015 £9m Completed 2016 £11.5m 2014 - 2017 £5.5m 2014 - 2018 £10m 2015 - 2019

Addressing bottlenecks to release grid capacity Voltage Constraints Thermal Constraints Protection Constraints Harmonic Constraints Extra High Voltage (132kV) High Voltage (33kV – 11kV) Low Voltage (11kV – 230V)

Next generation Network Management System Objectives Reduce costs of replacing existing grid and providing additional grid capacity Reduce number and length of interruptions to power supply Provide strategic platform to facilitate: Utilisation of Smart Meter data Connection of renewable energy projects Adoption of low carbon technologies (eg Electric Vehicles) Facilitation of further Smart network technologies

Key Gaps and Opportunities – Smart Grid Integration Innovation – blending different technologies and smart processes in demonstration facilities at the community scale Total Energy System integration – co-ordinating electricity and gas and energy storage infrastructure to maximise renewable energy resource capture and utilisation Electric Vehicle to Grid integration Delivery Innovation – testing commercial business models for roll out, marketing, engagement etc, and overcoming non-technological (societal, political etc) barriers Stimulation of vibrant Demand Side Response market Commercial market mechanisms to secure network capacity from network users