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SmartGridIreland (SGI) Paddy Turnbull Chairman of Smart Grid Ireland Growth Strategy Leader GE Energy - Digital Energy GE Restricted - Distribute to named individuals only. SmartGridIreland (SGI) SmartGridIreland (SGI) - is a network of organisations based in or operating out of Northern Ireland and the Republic of Ireland seeking to jointly exploit the benefits and new opportunities in the smart grid sector regionally, nationally and internationally. Member organisations are drawn from industry, research bodies, universities and government 2/ GE / May 23, 2017 SGI Strategic Themes Advocacy New Business Facilitation Public / Private Partnerships 3/ GE / May 23, 2017 Cleaner, Smarter, More Efficient Shaping a Low Carbon Future - A set of Complex Challenges Paddy Turnbull GE Energy GE leadership in Smart Grids Continental Automated Buildings Association GE roles Board Member Mission: To advance intelligent home and intelligent building technologies. Smart Grid Canada GE role: Founding Member Mission: To drive innovation and leadership to advance Canada’s Smart Grid infrastructure by engaging stakeholders from multiple industries. Smart Grid GB Smart Grid Ireland GE role: Founding member Mission: to provide an open forum to , share GE role: Chair Mission: To help develop and ideas & information and develop thinking on how smart grid can be achieved leverage off the opportunities emerging from the global Smart Grids Smart Energy Demand GE role: BoardCoalition Member Demand Response and Smart Grid Coalition Mission: To promote the active GE role: Board Member Mission: To educate and provide information to policymakers, utilities, the media, the financial community and stakeholders on how demand response and smart grid technologies such as smart meters can help modernize our electricity system and provide customers with new information and options for managing their electricity use. Utilities Telecom Council GE role: Committee Member Mission: To create a favorable business, regulatory, and technological environment for companies that own, manage, or provide critical telecommunications systems in support of their core business. Smart Meter Manuf Assoc of America GE role: Board Member Mission: To educate legislators, regulators, media and other stakeholders about the benefits of smart meters and to advocate for federal and state policies that support their deployment within an overall utility smart grid program. Friends of the Super Grid GE role: Board Member Mission: To promote and influence Transatlantic Business Dialogue the policy and regulatory framework required to enable large-scale GE role: Exec. Board Member interconnection in Europe. Mission: To serve as the official dialogue between American and European business leaders and U.S. cabinet secretaries and EU commissioners. GridWise Alliance GE role: Former Board participation by the demand side in European electricity markets – ensure consumer benefits, increase security of supply and reduce carbon emissions. Japan Smart Community Alliance GE role: Member Mission: To strengthen collaboration among a wide range of concerned organizations; conduct activities of mutual interest, such as dissemination of information and preparation of roadmaps to achieve global standardization. Member; Committee Members Mission: To transform the electric grid to achieve a sustainable energy future. Smart Grid Consumer Collaborative GE role: Board Member; Committee Chair; Founding Mission: To gather all stakeholders to Member listen, educate, and collaborate toward modernized electric systems in the United States. Smart Grid Australia GE role: Committee Member Mission: To educate, inform and lead the debate to ensure consumers, government and policy makers understand the solutions, benefits and possibilities of smart grids. 5/ GE / May 23, 2017 Market and Technology Drivers Carbon reduction Renewable generation growth (Wind, Solar…) Electrification of transport and heating (EV, heat pumps…) Energy security Economic competitiveness and affordability Small Distributed Generation, Demand Side Mgmt, Smart Meters Customer empowering (Residential feed-in, storage, time of use tariffs…) Regulatory incentives and energy policy are impacting distribution networks which require investment to meet the challenges 6/ GE / May 23, 2017 The Energy Challenge Security of supply Optimising Network Utilisation Decarbonisation Distributed Generation Affordability Sustainable Jobs & Growth 7 GE Restricted - Distribute to named individuals only. 5/23/2017 The Leadership Challenge Strong domestic marketplace Technology & Innovation Scalable & competitive supply chain Supportive energy policy and certainty Source: Pew Environment Group 2011 Creating and maintaining a sustainable market for investment is vital 8 GE Restricted - Distribute to named individuals only. 5/23/2017 The Investment Challenge – Key Issues Affecting Low Carbon Investors Finance Infrastructure • Size of capital expenditure • Rate of return • Local grid capacity constraints • Planning of transmission and distribution investments Regulation • Cost recovery regulations for low carbon investments • Clarity 9 GE Restricted - Distribute to named individuals only. 5/23/2017 The Regulatory Challenges across the EU • Current focus of regional regulation is cost efficiency. • Prices are set partially according to projections of infrastructure maintenance cost – not Smart Grid implementation costs. • Cost reduction can lead to better margins but does not incentivize investment in infrastructure. • New business cases will change the relationship between DSO and suppliers • “Regulators should stick to regulating the functions of the smart grid, not the technological solutions to achieve the function” (UKERC ) • Business cases will be enabled by a two-way, reconfigurable grid, allowing a higher degree of multi-dimensional opportunity for new sources of revenues. GE Restricted - Distribute to named individuals only. 10 5/23/2017 Low carbon end game – the Journey Smart Grid Journey Build Foundations Busines s objective Main functionalit y GE Value Proposition s Understand current network status Network model Switching plan * Improve Performanc e Improve customer service (SAIDI) Outage * management Full Network Visibility Outage avoidance Proactively avoid network outages Understand network power flows / voltages GIS, M&D, SS Au Smart Distributed Meters power flow DMS (SAIDI/SAIFI/OPEX reduction) Control Power Flows Control local power flows (EVs, PV…) DG control Integrated DSM Optimise Network Achieve max return on network assets Active Network / Asset Mgmt ANM DSM T&C VPP DMS (SAIDI/SAIFI/OPEX * Constraint Management reduction) Low Carbon Economy Improve Customer Service Empowering Prosumers Power Quality Increase Energy Efficiency Asset Management ` 11 GE Restricted - Distribute to named individuals only. 5/23/2017 Cleaner, Smarter, More Efficient How Complex Can We Be in an Uncertain Investment Marketplace? Energy Complex Solutions Matrix 13 GE Restricted - Distribute to named individuals only. 5/23/2017 Complex problems, deliverable solutions • Two imminent challenges for energy sector participants include: • • Despatch of large scales distributed generation as Virtual Power Plants • Voltage control and quality on low voltage network 14 GE Restricted - Distribute to named individuals only. 5/23/2017 Virtual Power Plant – foundation functions Ancillary Services Market • Distributed energy systems despatch • Visibility of technical and commercial parameters • Despatch cognisant of system constraints Energy Resources Management • Active despatch of distributed energy resources • Economic energy balancing • Storage as alternative to asset replacement Energy Aggregation • Local and Network level aggregation • Independent of energy type or operator • Allows smaller players to enter ancillary service market 15 GE Restricted - Distribute to named individuals only. 5/23/2017 VPP Solution Architecture - aggregation EMS/DMS V 1 G 1 GE Energy Overview G 2 Regional Aggregator T1 G 5 Local Aggregator RTU 1 G 3 Distributed Energy T2 Local Aggregator RTU 2 G 4 G 6 16 GE Restricted - Distribute to named individuals only. 5/23/2017 VPP Solution Architecture - despatch EMS/DMS V 1 G 1 GE G 2 Regional Aggregator T1 G 5 Local Aggregator RTU 1 G 3 Distributed Energy T2 Local Aggregator RTU 2 G 4 G 6 17 GE Restricted - Distribute to named individuals only. 5/23/2017 LV Voltage Control Objective: Managing the Voltage Level on the Distribution Network to enable integration of distribution generation while remaining within the statutory voltage limits. Advanced LV Monitoring Despatch Algorithms • Non intrusive while collecting network dynamic measurements • Maintains continuity of supply • Wireless communications • Centralised or devolved for optimum asset exploitation • Active or passive control • Supports adoption of low carbon technologies • Tap changing distribution transformer • Primary tap changing • Embedded generation • Energy storage 18 GE Restricted - Distribute to named individuals only. 5/23/2017 Cleaner, Smarter, More Efficient Case Study – Enabling a Low Carbon Economy Enabling Low Carbon Economy Problem Statement Limitations in network visibility and control constrain the uptake of low carbon technologies Customer Objective To demonstrate and identify future business processes that Distribution Network Operators (DNO) will need to adopt to facilitate the new low carbon economy. GE Solution Shadow control environment providing a foundation to develop a Model, Monitor and Manage approach comprising PowerOn Fusion™, SmallWorld ™and SMOS metering management application with an interface to the current operational control environment . Benefits DNOs could collectively expect to see a net financial benefit of ~£5bn over 32 year period through avoidance of conventional reinforcement (~£500m in a single Distribution Network) DNOs could also expect to facilitate~34 Mt CO₂ emissions reduction nationally (UK) over the same period 20 GE Restricted - Distribute to named individuals only. 5/23/2017 Enabling Low Carbon Economy – Solution Architecture 21 GE Restricted - Distribute to named individuals only. 5/23/2017