Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. 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 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

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 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 $$$ Price and reliability are main determinants of customer choice Energy flows to users Gas productionHydro- electric power Nuclear power station Energy flows to users CO 2 emission reduction and wider energy services drives energy company revenue Customers focus on economic and environmental value, using a wider range of products and services Electricity flows to users, and surplus from distributed generation flows back to grid Micro wind Smart metering Micro Biomass Smart network technology rolled out Micro CHP CCS plant (coal/gas) Solar water heating Nuclear power station CO 2 transport and storage Hydro- electric power Heat Pumps Large scale CHP and biomass $$$ Gas production Onshore and offshore wind Technology choice proliferates Efficient Boilers Natural Gas Hydrogen CO 2 Biogas Heat Industrial and commercial Domestic Industrial and commercial Intermittency management 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 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 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 Home  Customer portal & Home Area Network  Automated thermostats, switches, plugs & appliances  Load controllers e.g. PHEV controller Meter  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

9 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.

10 What will customers experience 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

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