1. Delivering Energy Innovations at Scale 11.04.2013 Base Birmingham Roger Hey – Future Networks Manager

2. KEY FACTS: Wholly owned by Pennsylvania Power & Light (PPL - NYSE listed) 4 UK Distribution Licences 7.7 million customers 55,000 sq km area 220,400km -Largest length UK network West Wales East Wales Cardiff Swansea Bodmin Bristol Redruth Somerset Mendip Torquay & Exeter SOUTH WEST Plymouth Barnstaple Tipton Nottingham SOUTH WALES WEST MIDLANDS EAST MIDLANDS Milton Keynes Birmingham Gloucester Shrewsbury Coventry Boston Stoke-on-Trent Lincoln

3. THE ELECTRICITY NETWORK 3

4. CORE ELEMENTS OF OUR PLAN  Replace and repair equipment due to age and condition  Inspect and maintain existing equipment  Connect new commercial and domestic customers  Transition to a low carbon future – connecting Distributed Generation and emerging technologies  Deliver further improved network performance and customer service 4

5. NETWORK CHALLENGES PRESENTED BY TRANSITION TO A LOW CARBON FUTURE  WPD will need to be able to accommodate significant volumes of: –Local generation (e.g. solar PV & wind) –Low carbon demand (e.g. Electric Vehicles (EVs) & heat pumps)  Networks are not currently designed to accommodated these loads on high volumes/clusters  Considerable uncertainty about uptake – volume, location & network impact 5 Heat Pumps projection: PV installations projection:

6. INNOVATION STRATEGY WPD’s Innovation Strategy – To facilitate the delivery of UK carbon objectives, making best use of new technologies and responding to the needs of our customers by:  Providing innovative solutions to increase the utilisation of the network whilst maintaining a high quality of supply  Developing concepts through to BAU solutions whilst ensuring compatibility with the existing network  Sharing our learning with the wider DNO community and other interested stakeholders Overall, we aim to provide efficient networks that are cost effective and reliable for our customers both today and in the future R&D Research and proof-of- concept technology development First of a kind Specific area of network identified, possibly driven by customer request Replication Multiple areas of network proactively identified based on first stage results Business as usual Policies established for planning teams to implement technology as business as usual On-going engagement with customers Stages of innovation

7. Community Energy Action FLEXGRID Electric Boulevards Interconnect WPD + NGC SCADA Seasonal Generation Deployment PV impact on Suburban networks Network Management on Isles of Scilly LV Sensor “Best Buy” Report Voltage Control Demonstration Project Early learning from LV estate PV cluster Community Smart Grid – Smart Hooky Fault Current Measurement Device LV Network Templates Lincolnshire Low Carbon Hub FALCON SoLa BRISTOL Future Networks Programme Tier 1 Tier 2 Networks Demonstrating alternative investment strategies to facilitate the UK’s Low Carbon Transition Customer Testing innovative solutions to make it simple for customers to connect Low Carbon Technologies Performance Developing new operational practices and identifying service improvement opportunities Stakeholder Engagement and Knowledge Management NEW

8. FlexDGrid Project Three integrated Methods leading to quicker and cost effective customer connections through a timely step change in the enhanced understanding, management and mitigation of distribution network Fault Level Each Method can be applied on its own whilst the integration of the three Methods combined will provide a system level solution to facilitate the connection of additional generation Enhanced Assessment Enhanced network models Detailed understanding of network Fault Level Management Monitoring Fault Level (Steady-state) Measuring Fault Level (Faulted-state) Verify/Update network models Mitigation Reduction of system Fault Level Utilised from output of Management

9. www.westernpowerinnovation.co.uk NOTICE FOR STAKEHOLDERS Please get involved in our business plan consultation 6 workshops being held in April: – April 17th - Nottingham (Trent Bridge Cricket Ground) – April 18th – Birmingham (Birmingham Botanical Gardens) – April 23rd – Cheltenham (Cheltenham Racecourse) – April 24th – Exeter – (Exeter Racecourse) – April 25th – Cardiff – (Millennium Centre) – April 26th – Bristol (Bristol Zoo)  More information ? Come speak to us or contact: Alex Wilkes, Stakeholder Engagement Officer awilkes@westernpower.co.ukawilkes@westernpower.co.uk Thank you listening