1. Together. Free your energies Rajat Datta August 27, 2011 Smart Grids of the Future: Expectation and the Unknowns

2. Together. Free your energies T ABLE OF C ONTENTS Introduction Expectations Context: An audio-visual about Smart Grid expectation CO2 Challenge, Prism and the challenges Can Smart Grid Help? ICT Transformation and Reference Architecture Assessing the Reality: APQC way Unknowns Questions to be answered Priority Tasks 2

3. Together. Free your energies T ABLE OF C ONTENTS Introduction Expectations Context: An audio-visual about Smart Grid expectation CO2 Challenge, Prism and the challenges Can Smart Grid Help? ICT Transformation and Reference Architecture Assessing the Reality: APQC way Unknowns Questions to be answered Priority Tasks 3

4. Together. Free your energies The CO2 Challenge 4 1990200020102020203020402050 0 1 2 3 4 5 6 7 8 Billion Tons CO2 US Electricity Sector Remainder of US Economy Historical Emissions 2005 = 5982 mmT CO2 2030 = 42% reduction bellow 2005 3470 mmT CO2 2050 = 83% reduction from 2005 1017 mmT CO2 Assumed Economy wide CO2 reduction target and no international offset * Indicative diagram

5. Together. Free your energies 2009 EPRI Prism: How to Address the Challenge 5 There is no single resolution. Its a combination of a number of proactive measures..

6. Together. Free your energies Clean Energy May Bring Instability 6 Wind output varies significantly by minute and by day/season Capacity factors below 25% create challenges for network operations Solar PV output varies significantly by second and by day/season Distributed PV can create power quality issues and bi-direction flows at certain penetration levels

7. Together. Free your energies How Smart can get us to Sustainable 7 Yesterday Today Tomorrow Opaque data, available in silos Telephone/ broadband infrastructure is good in places Patchy data, some available online High speed secure data transfer Governments are learning to set meaningful targets Basic smart cards that combine e.g. bus/rail/underground Real time data, across the public/ private divide Some open live data that is accessible by citizens and business Governments are able to monitor in real-time Fully integrated smart payment systems covering parking, public transport, EV charging etc, Transparent, accessible and integrated open live data Accurate projections of future need lead to direct adjusting of policy incentives (e.g. pricing) Automated intelligent data fuelling a plethora of solutions an electricity network that can intelligently integrate the actions of all users connected to it – generators, consumers and those that do both – in order to efficiently deliver sustainable, economic and secure electricity supplies. Economic, environmental and social sustainability enabled through a wide range of IT and business transformation solutions Collaborative Leadership Enrolment of People Understanding ITs Ability to Transform

8. Together. Free your energies Can Smart Grid Really Help? 8 ChallengeSmart Grid Response Overburdened Power Lines make it difficult move electricity from wind farms into the grid for consumption Improve grid efficiency Eliminate the waste that contributes to line congestion and expand usable capacity Unlike traditional power sources that are predictable, Solar power or Wind Power may be intermittent Demand Response Storage Power will be entering the network from multiple locations, including the distribution network (i.e. Distributed Generation) Two-way power flow, sophisticated controls, and grid automation technologies

9. Together. Free your energies The Future of the Grid - way it has been envisaged 9

10. Together. Free your energies Smart Grid Architecture 10

11. Together. Free your energies Smart Grid Layers and Integration (Detailed) 11

12. Together. Free your energies Assessing the Reality 12 APQC Smart Grid Maturity Model

13. Together. Free your energies T ABLE OF C ONTENTS Introduction Expectations Context: An audio-visual about Smart Grid expectation CO2 Challenge, Prism and the challenges Can Smart Grid Help? ICT Transformation and Reference Architecture Assessing the Reality : APQC way Unknowns Questions to be answered Priority Tasks 13

14. Together. Free your energies Interoperability De-facto Standards are already in the market. Converting everything into interoperable standards is hypothetical Compatibility across domains. Privacy Too much customer information published. This may lead to a privacy issue Data Ownership. Customer acceptance Questions to be answered 14 Security Grid Security and Reliability of the Grid are not proven yet Prevention from Hackers. Utility companies cannot afford a single security incident Feasibility Mostly at Pilot stage. Scalability at Large Scale is not yet tested. Extra-ordinary Change Management Effort Major Investment in Research, Pilots, Proof of Concepts

15. Together. Free your energies Conclusion 15 A clear view does not necessarily imply short distance

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