Smart Grids

Ian Welch - R&D Strategy Manager

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

2nd largest US Utility

27,000 US 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

National Grid:

An international electricity and gas company

The Future of Energy - Video

The Future of Energy

Click to play video

Energy Market is changing

Smart Grid is an essential enabler

Traditional Energy Market - supply 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

Industrial and

commercial

The future Market - customer driven

CO2 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 windSmart metering

Micro Biomass

Smart network technology rolled out

Micro CHP

CCS plant

(coal/gas)

Solar

water

heating

Nuclear power

station

CO2 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

CO2

Biogas

Heat

Industrial and

commercial

Domestic

Intermittency

management

Storage+

Storage+

Smart Technology Definition

Technology that provides advanced information, automation and control capabilities to help us

to transmit, distribute, measure and use energy more efficiently, reliably, safely and sustainably

– all the way from the point of generation to consumer appliances

What does it allow you to do?What is Smart Technology?

Me

ter

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

Dis

trib

uti

on

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

Automatically optimize selected home appliances

Demand response programs

Improve satisfaction levels

Ho

me

Customer portal & Home Area Network

Automated thermostats, switches,

plugs & appliances

Load controllers e.g. PHEV controller

Tra

ns

mis

sio

n

Remote Asset Management

Demand Side Management

Decision support tools & graphical interfaces

Analytical programs e.g. pattern recognition

Enable embedded generation

Condition-based, preventative maintenance

Automatic fault, isolation & restoration

Challenges for the electricity supply chain

Smart Grid drivers

Demand

Responsiveness

Efficient and Time Of Use

of energy

Integrating flexible demand

Efficient and reliable

network invest &

operation

Timely capacity – planning & consent / supply chain

Providing flexibility and avoiding stranding assets

Secure and Affordable

Decarbonising

electricity

Integrating inflexible generation

Integrating Intermittency

Integrating embedded generation

Electrifying heat

and transport

Increased demand:

Electric vehicles

Heat pumps

How big is the challenge in the UK?

UK Carbon SourcesOther 2%

Heat

41%

Transport

25%

Electricity

32%

Demand offered for

interruption

Smart

Meter

Technology

Penetration

Smart

Home

Smart

Grid

Network /

TSO

Technology

GeneratorConsumer Supplier DNO /

DSOTO / SO

Stakeholder

Consumer

control

Price

signals

Network /

SO control

Capacity Management

Electricity Smart and Smart Grid

Micro-gen /

storage

Others

Virtual power plants

Electric vehicles

………Competition for DSM

Matching intermittent

generation

Developments in Electricity Demand

30

35

40

45

50

55

60

00

:00

01

:00

02

:00

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:00

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:00

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:00

06

:00

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:00

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:00

09

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10

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11

:00

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14

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:00

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:00

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:00

22

:00

23

:00

Time of Day

Ele

ctr

icit

y D

em

an

d (

GW

)

2020 Demand ~ 15GWh (daily) - 1.5million vehicles

Typical winter dailydemand

Pe

ak

Co

mm

uti

ng

Tim

e

12,000 miles p.a.

Pe

ak

Co

mm

uti

ng

Tim

e

Optimal Charging

Period

Electric Vehicles (~ 850k vehicles by 2020)

Heat pumps (600k by 2020; and

Other appliances

Transmission SO / TO

Widespread use of a Flexible AC Transmission System

More automated post fault action – enhanced network capability

Greater control interface between TSO and DNO/DSO

Automation of control systems, flow control (QBs, DC links), voltage control, alarm management

Driving assets harder – high temp conductors, on-line rating, sag, short term ratings of circuits and transformers

Flexible risk based SQSS

Balancing between operational complexity and asset investment - Automation versus IS faults / technology failure

DNO (Enabled through Smart Grid comms infrastructure)

Auto post fault action (self healing)

Condition monitoring

Capacity rationing / sharing by directly controlling some demand / embedded generation

Optimisation of embedded and micro-generation / virtual power plants. DSO role?

Electricity Network Efficiency / Reliability Fully using assets through complexity and automation

Operating the system in 2020

How to meet these challenges in the most economic and

sustainable way whilst maintaining security?

How do we cope with

larger plant >1320 MW

when it ‘falls off’ the

system?

GenerationDemand

Variable

generationLarge generationInflexible generation

What operating reserve to

hold in a world of variable

renewable generation and

will the market balance

demand and generation?

Can the new generation

fleet of nuclear, wind and

supercritical coal provide

the full range of services?

Active Distribution

Networks

Distribution connected

generation

TOU sensitive demand

Scnr

Mark Ops

Net

Indicative Short Term Operating Reserve Requirement

56%

16%

15%

6% 1%

2%

4%

Small Demand sites

Large Demand sites

BM STOR

Non-BM STOR

Pumped Storage

Interconnectors

Typical Current Winter Reserve

Provider Breakdown

Potential Opportunity for New

Reserve Providers in 2020

4%9%

36%34%

15%

2%

~3.5GW ~8.2GW Cur

rent

Por

tfolio

New

Pro

vide

rs

Req

uire

d

2.8

GW

0.8

GW

2.0

GW

2.6

GW

1.7

GW

1.8

GW

01

23

Dom

estic

Refr

ige

ratio

n

Heat P

um

ps

Ele

ctr

ic V

eh

icle

s

Dom

estic W

et

App

liances

Indu

str

ial

Refr

ige

ratio

n

Air

co

nd

itio

nin

g

Te

ch

nic

al

Po

ten

tia

l (G

W)

National G

rid A

naly

sis

based o

n 'G

one G

reen' and the M

TP

'E

arly

Best P

ractice' data

set. Load f

acto

r and tim

e o

f use a

ssum

ptions

apply

.

Smart Grid US Pilot Proposals

Components

Spine Common two-way

communication system

Smart metering

In-Home energy

management

Distribution grid

monitoring and automated

control

Clean Energy Modules Photovoltaics (PV)

PHEV/EV

Energy Storage

Microgrid

Holistic Homes

National Grid Smart Technology Model

Smart Grid Cyber Security – High Priority

SMART Cyber security high priority for:

Equipment Manufacturers – building in security

Network Design – designing the network to be secure

Network Operations – monitoring, detection, prevention

Two key sources of risk:

deliberate attacks (eg. disgruntled employees, industrial

espionage, acts of terrorists)

inadvertent compromises (eg. user errors, equipment

failures, natural disasters)

SMART Grid Cyber Security - Key Risks

New and complex technology introducing vulnerabilities

Increased number of entry points and paths for potential adversaries to exploit

Communications networks expanded all the way to the home

Radio communication networks vunerabilities

Interconnected networks can introduce common vulnerabilities

More opportunity for introduction of malicious software

Potential for compromise of data confidentiality

Breach of customer privacy.

Smart Technology Centre

Proof-of-Concept

Test and validate the technical solution before we deploy it to our customers.

Center of Excellence

Evaluation, Demonstration, Innovation

Collaborating with several universities

developing academic curricula

workforce training programs

preparing the next generation of engineers and technicians to work with Smart Grid technologies.

Conclusion

We are on the verge of a fundamental shift in the Energy Industry

Smart Grids will be the service platform for future years.

Smart Grids will provide and act as a catalyst for:

current green technologies (e.g. energy efficiency, demand

response)

emerging green technologies (e.g., photovoltaic, energy storage,

plug-in hybrid electric vehicles).

Smart Grids will provide customers with choice

how the electricity they use is generated

greater control over how and when they use energy in their homes

and businesses.

Significant Technology/Security risk need to be managed

Thank you

Ian Welch