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CBI energy conference: David Smith

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David Smith, chief executive, ENA, at the CBI's energy conference. London, September 2010.

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CBI energy conference: David Smith

  1. 1. Energy Networks Association<br />The Road To A Smart Grid<br />David Smith, Chief Executive ENA<br />15 September 2010<br />1 | Energy Networks Association<br />
  2. 2. Outline<br /><ul><li>The need for a smart grid
  3. 3. The challenges – Optimise the networks
  4. 4. Gas
  5. 5. Electricity</li></ul>– Choice for customers<br />Smart, smart, smart<br />The challenges facing us<br />Next steps<br />15 September 2010<br />2 | Energy Networks Association<br />
  6. 6. ENA: Who We Are (Transmission)<br />15 September 2010<br />3 | Energy Networks Association<br /> Electricity<br />ENA Members: <br />CE Electric UK<br />Central Networks<br />EDF Energy<br />Electricity North West <br />Fulcrum<br />Inexus<br />National Grid<br />Northern Gas Networks <br />Northern Ireland Electricity <br />Scottish and Southern Energy<br />Scottish Power<br /> Gas Wales & West Utilities<br />Western Power Distribution<br />
  7. 7. ENA: Who We Are (Distribution)<br />15 September 2010<br /> Electricity<br />ENA Members: <br />CE Electric UK<br />Central Networks<br />EDF Energy<br />Electricity North West <br />Fulcrum<br />Inexus<br />National Grid<br />Northern Gas Networks <br />Northern Ireland Electricity <br />Scottish and Southern Energy<br />Scottish Power<br /> Gas Wales & West Utilities<br />Western Power Distribution<br />4 | Energy Networks Association<br />
  8. 8. The Scenario to Date<br /><ul><li>The supply industry has provided electricity and gas to customers on demand where and when they want it.
  9. 9. Generation has been run to match load, with some price signals to improve load curve (Economy 7) and reduce investment needs.
  10. 10. Gas is delivered from many diverse sources – north sea, Europe via the interconnector and LNG.
  11. 11. Networks have brought these two together.</li></ul>15 September 2010<br />5 | Energy Networks Association<br />
  12. 12. Low Carbon<br /><ul><li>Low Carbon brings new challenges</li></ul>15 September 2010<br />6 | Energy Networks Association<br />
  13. 13. Shaping the Energy Networks of Tomorrow<br /><ul><li>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.
  14. 14. This transformation will be different in shape and nature from anything that has gone before.
  15. 15. ENA and its members are:
  16. 16. Already addressing the challenges
  17. 17. Proactively engaged with government, regulators and key stakeholders
  18. 18. Recognised as the ‘organisation to contact’ to discuss future energy networks</li></ul>15 September 2010<br />7 | Energy Networks Association<br />
  19. 19. Networks Futures Group (ENFG) <br />ENFG work streams<br /><ul><li>Transmission/Distribution scenarios
  20. 20. Smart metering
  21. 21. Heat and Energy Saving Strategy
  22. 22. Electric Vehicles
  23. 23. Smart Grids
  24. 24. Gas Futures – including bio-methane, AD and CCS
  25. 25. Feed-in-Tariffs
  26. 26. ICT</li></ul>15 September 2010<br />8 | Energy Networks Association<br />
  27. 27. Getting Smarter<br /><ul><li>We cannot change the laws of physics.
  28. 28. We will still need to generate electricity and move it to where it is needed and ensure gas is available for baseline generation.
  29. 29. But we can do this more effectively through:
  30. 30. Active demand side response
  31. 31. Active customer engagement
  32. 32. Improve energy efficiency
  33. 33. Shift time of use
  34. 34. Microgeneration management</li></ul>15 September 2010<br />9 | Energy Networks Association<br />
  35. 35. Shaping the Energy Networks of Tomorrow<br />Potential Collaboration projects eg:<br />ETI<br />Integration<br />Smart<br />cities <br />TSB<br />RDAs<br />Smart<br />urban <br />….<br />The <br />Smart UK<br />electricity grid<br />First stage <br />Roll-out<br />&<br />Commercial<br />Deployment<br />….<br />Demonstration <br />projects <br />in <br />representative <br />areas <br />Foundationprojects: the<br />elements of Smart Grids<br />Smart<br />communities<br />projects<br />Smart<br />rural<br />projects<br />….<br />….<br />Smart<br />communities<br />IFI<br />RPZ<br />Integration<br />Smart<br />rural<br />LCNF<br />FP7<br />Development funding and incentives eg:<br />15 September 2010<br />10 | Energy Networks Association<br />
  36. 36. Shaping the Energy Networks of Tomorrow<br />R&D<br />Prototyping<br />Demonstration<br />Deployment<br /><ul><li>Job done</li></ul>Business Case<br />Standards<br />Certification<br />Risk Management<br />Vision<br />15 September 2010<br />11 | Energy Networks Association<br />
  37. 37. Shaping the Energy Networks of Tomorrow<br />Energy Smart Homes<br />Smart<br />Village<br />Smart Electric Transport<br />Smart Village Network<br />15 September 2010<br />12 | Energy Networks Association<br />
  38. 38. Level of advancement<br /> Strong potential<br /> Potential<br />Generation<br />Transmission<br />Distribution<br />Meters & Markets<br />Customers<br />Transport<br />Heat<br />‘Smart Rural’ options’<br />Smart Grids with Smart users – Secure, Cost Efficient, and Sustainable – End-to-End Intelligence & Innovation<br />Smart Networks + Smart Cities + Smart Homes + Smart Buildings + Smart Transportation (road, train)<br />Self-healing grids dynamic islanding<br />Enablers<br /><ul><li>Technical Standards
  39. 39. Simulation & Modeling
  40. 40. Certification and Type Tests
  41. 41. Commissioning and verification techniques
  42. 42. Laboratory Testing (industrial scale)
  43. 43. Demonstrator Network Testing
  44. 44. Communication</li></ul>Planned Islanding capabilities / microgrid<br />DC Continental Grid<br />Losses management<br />Losses management<br />Smart Meter ‘Final Node’ information for network optimisation<br />Off shore grids<br />Larger-scale storage<br />Micro-scale storage - domestic UPS, local zone integration, aggregated services<br />Mid-scale storage<br />Larger-scale storage<br />Active Network Management<br />EV charging control / ancillary service – public<br />EV charging control / ancillary service – domestic<br />EV smart charging<br />Off-shore pumped storage (Energy Island concept)<br />Fast/intelligent system defence measures<br />EV charging facilities<br />Waveform conditioning<br />Cross-border stronger links and op. services<br />Distribution Automation<br />Demand side management<br />Intelligent Voltage Control DG feeders<br />Off-grid home UPS capability<br />Off-shore wind integration<br />Linear charging<br />Fault Level Limiters<br />Wide Area Monitoring WAM and PMU<br />Intelligent Appliances<br />Industrial/comm EVs<br />Building to Grid<br />Embedded wind, CHP, Hydro<br />Ancillary services renewable sources<br />Flow control devices (Q/B & Phase Shifters)<br />Microgeneration – aggregated services<br />Battery exchange facils<br />Direct heating top up<br />CC&S / network integration<br />Overhead Line Hot Wiring and novel conductor types<br />Capacity Management – smart home management<br />Rapid charge facilities<br />Heat Pumps<br />On-line condition monitoring<br />Displays and home interfaces<br />Off shore to On shore integration<br />Intelligent charging EVs<br />Electricity for gas substitution<br />Dynamic Plant Ratings (weather and demand shape)<br />Smart Metering AMM, 2-way communication<br />Wind Generator / Network Integration<br />V2G smart EVs<br />CHP integration<br />15 September 2010<br />13 | Energy Networks Association<br />
  45. 45. The smart network<br />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.<br />Source: European Commission<br />European SmartGrids Technology Platform<br />15 September 2010<br />14 | Energy Networks Association<br />
  46. 46. Shaping the Energy Networks of Tomorrow – Barriers (1)<br />Lack of international technical standards results in barriers to wide area roll-out and loss of economy of scale, efficient procurement and interoperability.<br />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.<br />The above points can also result in stranded assets in the long term (when standards etc. catch up).<br />Low interoperability, poor plug & play capability, no roaming capability, user frustration.<br />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’).<br />15 September 2010<br />15 | Energy Networks Association<br />
  47. 47. Shaping the Energy Networks of Tomorrow – Barriers (2)<br />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.<br />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.<br />8. Smart meter roll-out is delayed in critical locations which then delays smart grid implementation.<br />9. Regulatory frameworks do not fully accommodate new initiatives, such as DSM, storage and Virtual Power Plant. <br />10. Insufficient incentives for communities and individual users to engage in the smart initiatives.<br />15 September 2010<br />16 | Energy Networks Association<br />
  48. 48. Customers Choice<br /><ul><li>Smart
  49. 49. Real-time displays
  50. 50. Remotely read meters
  51. 51. Smart
  52. 52. Financial incentives
  53. 53. Time-of-use, cost-reflective tariffs
  54. 54. Customers able to modify usage
  55. 55. Major awareness programme with customers</li></ul>15 September 2010<br />17 | Energy Networks Association<br />
  56. 56. Smart<br /><ul><li>To move beyond early adopters needs to be simple and trouble free
  57. 57. Smart technology can respond to price signals to:
  58. 58. Turn down thermostat for half an hour
  59. 59. Automatic off-peak use of washing machines
  60. 60. Charge electric vehicles at times of low demand and high generation
  61. 61. Make real-time energy use decisions
  62. 62. Customers in control could choose between:
  63. 63. Certainty of response
  64. 64. Cheaper interruptible tariff, or
  65. 65. Degrees of green-ness</li></ul>15 September 2010<br />18 | Energy Networks Association<br />
  66. 66. Source: European Commission<br />European SmartGrids Technology Platform<br />15 September 2010<br />19 | Energy Networks Association<br />

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