CBI energy conference: David Smith

Energy Networks Association

The Road To A Smart Grid

David Smith, Chief Executive ENA

15 September 20101 | Energy Networks Association

Outline

• The need for a smart grid• The challenges – Optimise the networks

Gas Electricity

– Choice for customers• Smart, smart, smart• The challenges facing us• Next steps


ENA: Who We Are (Transmission)


Electricity

ENA Members:

CE Electric UK

Central Networks

EDF Energy

Electricity North West

Fulcrum

Inexus

National Grid

Northern Gas Networks

Northern Ireland Electricity

Scottish and Southern Energy

Scottish Power

Gas Wales & West Utilities

Western Power Distribution

ENA: Who We Are (Distribution)


Electricity

ENA Members:

CE Electric UK

Central Networks

EDF Energy

Electricity North West

Fulcrum

Inexus

National Grid

Northern Gas Networks

Northern Ireland Electricity

Scottish and Southern Energy

Scottish Power

Gas Wales & West Utilities

Western Power Distribution

The Scenario to Date

• The supply industry has provided electricity and gas to customers on demand where and when they want it.

• Generation has been run to match load, with some price signals to improve load curve (Economy 7) and reduce investment needs.

• Gas is delivered from many diverse sources – north sea, Europe via the interconnector and LNG.

• Networks have brought these two together.


Low Carbon

• Low Carbon brings new challenges


Shaping the Energy Networks of Tomorrow

• Energy networks are vital to the delivery of our low-carbon future and as such gas and electricity networks will be at the heart of the transformation needed.

• This transformation will be different in shape and nature from anything that has gone before.

• ENA and its members are: Already addressing the challengesProactively engaged with government, regulators

and key stakeholdersRecognised as the ‘organisation to contact’ to

discuss future energy networks


Networks Futures Group (ENFG)

ENFG work streams• Transmission/Distribution scenarios• Smart metering• Heat and Energy Saving Strategy• Electric Vehicles• Smart Grids• Gas Futures – including bio-methane, AD and CCS• Feed-in-Tariffs• ICT


Getting Smarter

• We cannot change the laws of physics.• We will still need to generate electricity and move it to

where it is needed and ensure gas is available for baseline generation.

• But we can do this more effectively through:•Active demand side response•Active customer engagement

Improve energy efficiencyShift time of useMicrogeneration management



TSB

Potential Collaboration projects eg:

IFI

Development funding and incentives eg:

Foundation projects

: the

elements of Smart Grids

Demonstration

projects

in

representative

areas

The

Smart UK

electricity grid

projects

projects

….

….

….

….

Smart

cities

Smart

communities

Smart

rural

First stage

Roll-out

&

Commercial

Deployment

Smart

urban

Smart

rural

Smart

communitiesRPZ

LCNF

ETI

FP7

RDAsIntegration

Integration



Standards Certification Risk Management

Job done

R&D Prototyping Demonstration Deployment

Business Case

Vision



Smart

Village

Energy Smart Homes

Smart Electric Transport

Smart Village Network


Generation Transmission Distribution Meters & Markets Customers Transport Heat

Le

ve

l o

f a

dv

an

ce

me

nt

Dynamic Plant Ratings (weather and demand shape)

Fault Level Limiters

On-line condition monitoring

Overhead Line Hot Wiring and novel conductor types

Flow control devices (Q/B & Phase Shifters)

Intelligent Voltage Control DG feeders

Wide Area Monitoring WAM and PMU

Distribution Automation

EV charging facilities

EV smart charging

EV charging control / ancillary service – public

Mid-scale storageLarger-scale storage

Larger-scale storage Micro-scale storage - domestic UPS, local zone integration, aggregated services

Smart Metering AMM, 2-way communication

Displays and home interfaces

Capacity Management – smart home management

Microgeneration – aggregated services

Off-grid home UPS capability

EV charging control / ancillary service – domestic

Off-shore wind integration

Cross-border stronger links and op. services

Fast/intelligent system defence measures

Smart Meter ‘Final Node’ information for network optimisation

Losses managementLosses management

Self-healing grids dynamic islanding

Planned Islanding capabilities / microgrid

Off shore grids

DC Continental Grid

Intelligent Appliances

Active Network Management

Wind Generator / Network Integration

Off shore to On shore integration

CC&S / network integration

Ancillary services renewable sources

V2G smart EVs

Intelligent charging EVs

Rapid charge facilities

Battery exchange facils

Industrial/comm EVs

Linear charging

CHP integration

Electricity for gas substitution

Heat Pumps

Direct heating top up

Smart Grids with Smart users – Secure, Cost Efficient, and Sustainable – End-to-End Intelligence & InnovationSmart Networks + Smart Cities + Smart Homes + Smart Buildings + Smart Transportation (road, train)

Building to Grid

Demand side management

Off-shore pumped storage (Energy Island concept)

Enablers

Technical Standards

Simulation & Modeling

Certification and Type Tests

Commissioning and verification techniques

Laboratory Testing (industrial scale)

Demonstrator Network Testing

Communication

Embedded wind, CHP, Hydro

Waveform conditioning

‘Smart Rural’ options’

Strong potential

Potential


The smart network

The smart network will see the distribution system move from a passive (one way) power flow to an active (two way) system where the customer can export (sell back) additional energy they do not need.

Source: European CommissionEuropean SmartGrids Technology Platform


Shaping the Energy Networks of Tomorrow – Barriers (1)

1. Lack of international technical standards results in barriers to wide area roll-out and loss of economy of scale, efficient procurement and interoperability.

2. Lack of consistency across the UK in network planning guidance and standards resulting in poor sharing of knowledge, limited collaboration and inefficient relationships with manufacturers.

3. The above points can also result in stranded assets in the long term (when standards etc. catch up).

4. Low interoperability, poor plug & play capability, no roaming capability, user frustration.

5. Adverse public and media reaction through lack of understanding, excessive complexity for the user, and lack of political support (for example where smart systems are misinterpreted as ‘big brother’).


Shaping the Energy Networks of Tomorrow – Barriers (2)

6. While the basic technology elements for smart systems largely exist, there is much to be done to integrate them into working smart systems suitable for the UK and able to interface successfully between new systems and the legacy systems.

7. Successful demonstration projects that do not have scalable capability resulting in ‘false dawns’ and inability to deliver the customer benefits at a material level.

8. Smart meter roll-out is delayed in critical locations which then delays smart grid implementation.

9. Regulatory frameworks do not fully accommodate new initiatives, such as DSM, storage and Virtual Power Plant.

10. Insufficient incentives for communities and individual users to engage in the smart initiatives.


Customers Choice

• Smart•Real-time displays

• Remotely read meters

• Smart• Financial incentives

Time-of-use, cost-reflective tariffs Customers able to modify usage Major awareness programme with customers


Smart

• To move beyond early adopters needs to be simple and trouble free

• Smart technology can respond to price signals to:• Turn down thermostat for half an hour• Automatic off-peak use of washing machines• Charge electric vehicles at times of low demand and high

generation• Make real-time energy use decisions

• Customers in control could choose between:• Certainty of response• Cheaper interruptible tariff, or• Degrees of green-ness


Source: European CommissionEuropean SmartGrids Technology Platform


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