The document discusses the need for smart grids to modernize energy networks in the UK. It outlines challenges like integrating renewable energy, giving customers more choice, and optimizing gas and electricity networks. The Energy Networks Association is working with members and stakeholders on projects to develop smart grids through demonstration projects, research and development. Barriers to smart grids include lack of standards, low interoperability between systems, and regulatory frameworks not fully supporting new technologies.

1. Energy Networks Association The Road To A Smart Grid David Smith, Chief Executive ENA 15 September 2010 1 | Energy Networks Association

3. The challenges – Optimise the networks

4. Gas

5. Electricity– Choice for customers Smart, smart, smart The challenges facing us Next steps 15 September 2010 2 | Energy Networks Association

6. ENA: Who We Are (Transmission) 15 September 2010 3 | Energy Networks Association 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

7. ENA: Who We Are (Distribution) 15 September 2010 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 4 | Energy Networks Association

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

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

11. Networks have brought these two together.15 September 2010 5 | Energy Networks Association

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

15. ENA and its members are:

16. Already addressing the challenges

17. Proactively engaged with government, regulators and key stakeholders

18. Recognised as the ‘organisation to contact’ to discuss future energy networks15 September 2010 7 | Energy Networks Association

20. Smart metering

21. Heat and Energy Saving Strategy

22. Electric Vehicles

23. Smart Grids

24. Gas Futures – including bio-methane, AD and CCS

25. Feed-in-Tariffs

26. ICT15 September 2010 8 | Energy Networks Association

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. But we can do this more effectively through:

30. Active demand side response

31. Active customer engagement

32. Improve energy efficiency

33. Shift time of use

34. Microgeneration management15 September 2010 9 | Energy Networks Association

35. Shaping the Energy Networks of Tomorrow Potential Collaboration projects eg: ETI Integration Smart cities TSB RDAs Smart urban …. The Smart UK electricity grid First stage Roll-out & Commercial Deployment …. Demonstration projects in representative areas Foundationprojects: the elements of Smart Grids Smart communities projects Smart rural projects …. …. Smart communities IFI RPZ Integration Smart rural LCNF FP7 Development funding and incentives eg: 15 September 2010 10 | Energy Networks Association

37. Shaping the Energy Networks of Tomorrow Energy Smart Homes Smart Village Smart Electric Transport Smart Village Network 15 September 2010 12 | Energy Networks Association

39. Simulation & Modeling

40. Certification and Type Tests

41. Commissioning and verification techniques

42. Laboratory Testing (industrial scale)

43. Demonstrator Network Testing

44. CommunicationPlanned Islanding capabilities / microgrid DC Continental Grid Losses management Losses management Smart Meter ‘Final Node’ information for network optimisation Off shore grids Larger-scale storage Micro-scale storage - domestic UPS, local zone integration, aggregated services Mid-scale storage Larger-scale storage Active Network Management EV charging control / ancillary service – public EV charging control / ancillary service – domestic EV smart charging Off-shore pumped storage (Energy Island concept) Fast/intelligent system defence measures EV charging facilities Waveform conditioning Cross-border stronger links and op. services Distribution Automation Demand side management Intelligent Voltage Control DG feeders Off-grid home UPS capability Off-shore wind integration Linear charging Fault Level Limiters Wide Area Monitoring WAM and PMU Intelligent Appliances Industrial/comm EVs Building to Grid Embedded wind, CHP, Hydro Ancillary services renewable sources Flow control devices (Q/B & Phase Shifters) Microgeneration – aggregated services Battery exchange facils Direct heating top up CC&S / network integration Overhead Line Hot Wiring and novel conductor types Capacity Management – smart home management Rapid charge facilities Heat Pumps On-line condition monitoring Displays and home interfaces Off shore to On shore integration Intelligent charging EVs Electricity for gas substitution Dynamic Plant Ratings (weather and demand shape) Smart Metering AMM, 2-way communication Wind Generator / Network Integration V2G smart EVs CHP integration 15 September 2010 13 | Energy Networks Association

45. 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 Commission European SmartGrids Technology Platform 15 September 2010 14 | Energy Networks Association

46. Shaping the Energy Networks of Tomorrow – Barriers (1) Lack of international technical standards results in barriers to wide area roll-out and loss of economy of scale, efficient procurement and interoperability. 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. The above points can also result in stranded assets in the long term (when standards etc. catch up). Low interoperability, poor plug & play capability, no roaming capability, user frustration. 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’). 15 September 2010 15 | Energy Networks Association

47. 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. 15 September 2010 16 | Energy Networks Association

49. Real-time displays

50. Remotely read meters

51. Smart

52. Financial incentives

53. Time-of-use, cost-reflective tariffs

54. Customers able to modify usage

55. Major awareness programme with customers15 September 2010 17 | Energy Networks Association

57. Smart technology can respond to price signals to:

58. Turn down thermostat for half an hour

59. Automatic off-peak use of washing machines

60. Charge electric vehicles at times of low demand and high generation

61. Make real-time energy use decisions

62. Customers in control could choose between:

63. Certainty of response

64. Cheaper interruptible tariff, or

65. Degrees of green-ness15 September 2010 18 | Energy Networks Association

66. Source: European Commission European SmartGrids Technology Platform 15 September 2010 19 | Energy Networks Association