Tim Roughan Director of Distributed Resources National Grid, MA USA

Transcription

1 Tim Roughan Director of Distributed Resources National Grid, MA USA

2 Agenda National Grid Company Overview Market Evolution Market Drivers National Grid s Program Approach Overview of Our Smart Grid Pilot Proposals What s in it for the Customer Conclusion

3 National Grid: An international electricity and gas company Gas Distribution - UK Transmission Electricity and Gas - UK Operates the UK gas distribution system; distributes gas on behalf of shippers and suppliers to 11 million consumers but has 20m+ meters 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.

4 National Grid Gas 50% US, 50% UK 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) Currently owns over 4,000 MW of generation Electricity

5 The Energy Market Is Evolving -Smart Grid Is An Essential Enabler 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 Small range of conventional technologies Static infrastructure Nuclear power station Hydroelectric power Coal/gas fired power station $$$ Energy volume drives energy company revenue Gas production Domestic Industrial and commercial Electricity flows to users, and surplus from distributed generation flows back to grid + Storage Intermittency management Micro wind Micro CHP Solar water heating Heat Pumps Smart metering Smart network technology rolled out Efficient Boilers + Micro Biomass Storage Natural Gas Hydrogen CO2 Biogas Heat Energy flows to users Energy flows to users Technology choice proliferates Industrial and commercial Price and reliability are main determinants of customer choice Onshore and offshore wind Hydroelectric power $$$ Nuclear power station CO2 emission reduction and wider energy services drives energy company revenue CCS plant (coal/gas) Large scale CHP and biomass CO 2 transport and storage Gas production

6 Recent Legislation is Stimulating the Investment in Smart Technologies Massachusetts Green Communities Actrequires that each utility establish a smart grid pilot program RI Least Cost Procurementhas a requirement for a System Reliability Procurement Planto determine cost effectiveness of customer-side resources The American Recovery and Reinvestment Act of 2009 (ARRA)designates $ 3B in stimulus funds to modernize the electric grid.

7 What National Grid is Planning Albany Capital District, NY (42,000 customers) Worcester, MA (15,000 customers) North Metro Boston, MA (95,000 customers) Syracuse, NY (40,000 customers) Newport, Jamestown & Portsmouth, RI (10,000 customers)

8 Utility and the Automotive Evolution Smart charging will be necessary to prevent distribution system overloads when plug-in and all electric cars become more commonplace Even more critical when battery manufacturers allow vehicle discharging a few years away due to warrantability issues

9 What s in it for the Customer? For smart grid to be successful, customers must have the opportunity to save money Large scale reduction of peak loads should lower forward commodity costs May need 25+% of total customers participating to accomplish this Customer need extensive education as to the options they have Dynamic pricing Critical peak pricing, time-of-use, hourly pricing Tools to manage energy use In many cases, default load management techniques would be used Continuous Information on energy efficiency measures For sustained reductions over time, need to keep customers involved For utilities, customer-side resources could provide reserve capacity

10 Energy Efficiency opportunities Home display units and/or web portals will provide real-time information on usage and control Need to accommodate new tools as they become available Community net-working to promote competition amongst similar type customer and/or friends, neighbors, and relatives Continuous reminders of opportunities to be sustainable Working with retailers to promote energy efficient appliances/measures thru web portals above Show customers where sales are taking place, offer rebates, etc. Huge need for system integration people

11 Conclusion We believe we are on the verge of a fundamental shift in the energy industry driven by market evolution and emerging customer requirements to meet environmental and service aspirations. A review of the core energy industry infrastructure indicates a significant upgrade and radical redesign are necessary to meet current and future needs of customers and society in general. Various legislation and ARRA stimulus funding will accelerate this process and create a framework for investments.