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Introduction to Smart Grid
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Presentation to Clark University “Greening the Corporation”
Sept 29, 2010
National Grid:
an international electricity and gas
company
 50% US, 50% UK
Gas
 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)
Electricity
 Currently owns over
4,000MW of
generation
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National Grid:
An international electricity and gas company
Gas Distribution - UK
Operates the UK gas
distribution system;
distributes gas on behalf
of shippers and suppliers
to 11 million consumers
but has 20m+ meters
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.
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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
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Energy Market is evolving
Traditional Energy Market - supply driven
Today’s Evolving Market - customer driven
Customers focus on economic and environmental value,
using a wider range of products and services
Large centralised
generation
Micro CHP
Domestic
Industrial
and
commercial
Small range of
conventional
technologies
Nuclear
power
station
Hydroelectric
power
Gas production
Coal/gas fired
power station
$$$
Energy volume
drives energy
company
revenue
Solar
water
heating
Micro wind
Smart metering
+ Storage
Smart network technology rolled out
Natural Gas
Hydrogen
CO2
Biogas
Heat
+ Storage
Intermittency
management
Technology choice
proliferates
Energy
flows to
users
Industrial
and
commercial
Micro Biomass
Electricity flows to
users, and surplus
from distributed
generation flows
back to grid
Static infrastructure
Energy
flows to
users
Efficient
Boilers
Heat
Pumps
Price and reliability are
main determinants of
customer choice
Onshore
and
offshore
wind
Hydroelectric
power
$$$
Nuclear power
station
CO2 emission reduction
and wider energy
services drives energy
company revenue
CCS plant
(coal/gas)
Large scale
Gas
CHP and production
biomass
CO2 transport
and storage
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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
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Technology has a key role…
Smarter grids and smart metering
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Smart technology means different things to
different people – a common language and
vision are essential
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
Home
Grid
Meter
What is Smart Technology?
What does it allow you to do?

Meter that records interval data

Automatic meter reading

2-way communications, remote configuration

Enable customer choice and control

Informative display

Choice of tariffs e.g. time of use – peak shifting

Meter Data Management System

Catalyst and validation of Energy Efficiency programs

Remote configuration

Enable Distributed generation

Remotely detect, diagnose, predict and correct
network problems & faults

Condition-based, preventative maintenance

Automatic fault prevention, isolation & restoration

Sensors & measuring devices

Analytical programs e.g. pattern recognition

Automatic switches & controls

Decision support tools & graphical interfaces

Customer portal & Home Area Network

Automated thermostats, switches,
plugs & appliances

Automatically optimize selected home appliances

Demand response programs
Load controllers e.g. PHEV controller

Improve satisfaction levels

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The prime logic for Smart Grid? – Customer and
Environmental Orientation.
The deployment of Smart Grid technologies will enable the shift in customer
behavior towards Energy Efficiency, Energy Management and increase Customer
Service levels.
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 trend to increased
consumer choice and
control will be different
for customers dependent
upon their circumstances
and needs – more
segmentation will occur.
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.
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What will customers experience
Tomorrow’s energy - customer driven
Micro
CHP
Micro wind
Solar
water
heating
Micro
solar
Meter-centric home
providing basic
consumption information,
export (net) metering and,
possibly, appliance control
Customers focus on
economic and
environmental value,
using a wider range
of products and
services
Smart metering
Appliance
control/
demand
response
Electricity flows to
users, and surplus
from distributed
generation flows
back to grid
In-home
display
Smart grid technology rolled out
Smart
meter
Biomass
Technology choice
proliferates
Onshore
and
offshore
wind
Microgeneration
Hydroelectric
power
Nuclear power
station
$$$ CO2 emission reduction
and wider energy
services drives energy
company revenue




Peak shaving and simple
demand response, fault
identification & restoration
verification
CCS plant
(coal/gas)
Solar
Gas
production
Network
control centre
CO2 transport
and storage
More consumer involvement & choice, Choice, Control, Convenience.
More distributed generation
Market drives solutions, closes customer expectation gap
More integrated, holistic approach
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National Grid Massachusetts and
New York Proposals
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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
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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
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