Smart Place Case Study - LGE Smart Place Consortium. November 18 th, 2011 Sung-Nam Ryoo LG Electronics

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1 Smart Place Case Study - LGE Smart Place Consortium November 18 th, 2011 Sung-Nam Ryoo LG Electronics

2 1. Smart Grid Outline Smart Grid Two-way, Distributed, Customer involved Trading, Operation Power Plant Wind Power Factory Storage PV APT Smart Home EV Smart Bldg. (Generation, Storage) Needs of Stakeholders Gov. New Growth Engine CO 2 Reduction Customer Economic Benefit Active consumption by information Various options for customers Utility Profitable Growth Balancing supply & demand Reduce Investment for power plants CO 2 reduction thru energy efficiency Company New Biz & Differentiation New business opportunities & convergence of industries Growing distributed generations & energy efficiency

3 2. Smart Grid Roadmap in Korea Through the smart grid, the establishment of the foundation for green growth Key Objectives Construction of a smart green city Expansion of smart city (Enabling consumer) Completion of nationwide Smart Grid 1st phase (2009~2012) 2nd phase (2013~2020) 3rd phase (2021~2030) Milestones Jeju Test-bed Project commencement Smart Green city declaration 100% AMI Construction Nationwide Smart Grid completed Overview of Jeju Pilot Program Host : Korea Government Period : ~ (3.5 year) Total budget : $220 Bil - Government : $60 Bil, Industry : $160 Bil Overview of LGE Consortium Host : LG Electronics Total budget : $231 Mil -1 st Stage: $128 Mil -2 nd Stage: $103 Mil

4 3. LGE Smart Place Consortium Introduction Verify business model for customer-oriented energy efficiency. LGE Smart Place Consortium LGE Consortium is participating in Smart Place - LGE : Server, Appliance, TV, Heat pump, Solar cell, LED - LG Chem : Home Battery - LG CNS : Solution - LG U+ : Network - GS Group : Micro-grid, Fuelcell - Smaller firm : Smart meter, plug Pilot project household: 412 household Characteristic: Residential area - Large facilities: Musium, Elementary Schools, Factory, Warehouse

5 3. LGE Smart Place Consortium Vision Provide essential value for consumer, through develop the smart product, solution, network and service. The Vision Of LGE Smart Place Cosortium Customer-oriented Energy efficiency Product Efficient, Convenient Solution Expansible, Reliable Network Stable, Secure Service Econimic, Convenient Smart Meter & Plug Smart Appliance & Server Renewable Energy & Heat Pump Energy Storage System Smart Platform Smart MDMS Smart DR/ RTP Smart EMS & Security Wire-Wireless Service Architecture/ Protocol Link with banking service Smart Metering Service Energy Care Service New electricity Convergence service

6 3. LGE Smart Place Consortium Stage [1 st ] 09.12~ Set-up Infrastructure for smart home/building [2 nd ] 11.06~ Increase energy efficiency through demand side management respond to dynamic pricing NOC Micro Grid Residential house

7 Product_Smart Appliance Reacted intelligently to price signal to save electric power / World first Zigbee certified home appliance Smart Server Smart appliance Supply of electricity On/Off signal Gather Supply of all electricity energy- related information World first Zigbee certified and transfer cost Price, On/Off information signal home appliances Control automatically each appliances Smart control based on electric Electricity consumption data price information Smart server interlocking Smart Server for remote-monitoring and control Electricity generation data Supply of electricity Resupply of electricity

8 Product_Renewable & Eco Energy Accelerated the construction of Renewable, Eco energy and completed pilot project environment Accelerate the construction of infra-structure PV: 60kW Wind power: 2kW Fuel Cell :7kW Energy Storage System: 248kW Heat Pump: 5EA The construction of renewable energy ESS Renewable Note Pension 74.4kWh 24kW PV Wind power Fuel cell Hado school 37.2kWh 32.4kW PV Jongdal school 37.2kWh 10.8kW PV Village office 37.2kWh 12kW PV Household 62kWh 15kW PV Total 248kWh 87.4kW - Jeju, the Pureun-Bada pension(showroom) PV(Hado elementary school) Fuel cell, Heat pump Conjunction with renewable energy and ESS

9 Solution_DR/ RTP The construction of demand management Infra structure and the participation of demand management market TOC Energy Management Center NOC Smart Meter Zigbee communication Smart Server Gathering and management of real-time power usage data from 400 testbeds and facilities Real-time data provision of power pricing, power trade, power quality Real time energy savings through demand response and CO 2 reduction Renewable Energy

10 Solution_Micro grid Built the Micro grid place by using renewable energy & EMS Functions of Micro grid Power trading and operating connected with renewable generation sources Supplies heating and cooling sources by using renewable resources Monitoring and analysis of energy generation and consumption Economy and efficiency on energy consumption Renewable energy PV: 15kW Wind Power: 2kW Fuel Cell: 7kW Seawater Heating and Cooling System:150RT PV Wind Power Fuel Cell Seawater Heating and Cooling System Micro Grid Place

11 Network_ Wire-Wireless Network Combined with Wire-Wireless network such as high-speed internet, smart meter and Zigbee plug The Construction of Network The Construction of Network - 100Mbps class high speed internet - Home GW & Smart Server: 200Household - Smart Meter: 200 Household - Zigbee Plug: 30 Household - IHD: 30 Household - PLC Plug GW: 50 Household Smart Meter PLC plug Zigbee plug

12 Service_AMI service (AMI) Ready to AMI service and Offered to the N-screen interface AMI service Individual devices Metering High-speed internet FTTH Modem/GW Power quality, black-out remote management Device management, Certification TOC Noc (Smart MDMS) Smart server Network (ZigBee) N-Screen UI Smart meter / Plug N-Screen Applied showroom Offered Pilot project household n-screen UI - PC, IPTV, Smart phone PC IPTV Smart phone

13 The other _Launch a ThinQ TM Appliance Launch a Smart Appliance Smart refrigerator in Korea Smart washing machine in Korea Smart refrigerator, washing machine in US LG THINQ Smart Grid Smart Diagnosis Smart Access Smart Adapt Smart Management Smart Grid technology for energy management Automatic self diagnosis for optimum performance Link - Access - Control your appliances Upgrades & adapts to personal preferences Efficient management of food information

14 The other _Standardization / Certification 2% Others Patents( ) Overseas : 94 (Registered :19) Domestic : 183 (Registered : 54) Standardization 10% Convergence Tech 33% Customer Convenience 48% Energy Efficiency AHAM OpenSG ICT4EEForum (SG T-Force) ZigBee Alliance Certification World s first home appliance with ZigBee certification SEP 1.0 embedded 8% Smart TV 11% Smart Server 19% Refrigerator 8% Others 35% Air conditioner 19% Washing machine Product Patents Registered Patents 66% WiFi 13% PLC 11% ZigBee 10% OpenHAN Communication Patents

15 The other _ Jeju Smart Grid Showroom Unique in the World Smart Grid Showroom with accommodation and experience First in the World ZigBee Certified Appliances Verification of international standard compatibility Consumer Oriented Automated system with convenience and lifestyle of Customers Zero Carbon Zero carbon tech. by smart home appliances and renewable energy

16 The operation of LGE showroom Total visitor: 3,460 person ( ~ ) - Government : 1,419 persons - Company officials : 1,315 persons - Others : 726 persons individual 2% University 11% Research institution 2% Press 5% Company 38% Gov. 41% Visitation of overseas VIP - Russia Energy Association director - Germany, Kellendonk CEO - Siemens vice-president - France Telecom Japan branch manager - Intertech Asia-Pacific president - Malaysia Electric Association CPO - VLPGO, 14 group CEO The other_ Promotion Broadcast, Advertising Domestic - Broadcast: Total 12 time (MBC, KBS, SBS etc) - Press : Total 6 time Overseas - Broadcast : Total 4 time (CH2, NHK etc)

17 The other _ Global Pilot Project LG participates in various pilot projects in Korea, USA and EU 유럽 Southern California Edison Pilot Project - US first residential energy storage system verification Smart Watts Pilot Project - EU first Real-time pricing project Jeju Pilot Project - World best demonstration site

18 The other _ US Pilot Project Project Objective Participation Objective US first home battery system verification Manufacturing technology development by 15 Find B2B chance with the US largest utility for energy storage Participation Conditions Consortium Structure - LG Chemistry & CPI 1) : Host - LGE : Participant LGE Participation - Power Management System (PMS) - RESU Communication Hub (RCH) - Back-Office - Battery Management System (BMS) 1) CPI (Compact Power Institute, LGC Subsidy)

19 The other _ EU Pilot Project Project Objective Participation Objective To establish business models and secure Europe standards tech. To lead world standard by securing world s strictest German standard Participation Products EU first real-time pricing Project 500 households in Aachen ( 11~ 12) Host : BMWi 1) Kellendonk 2) Smart server Ref. W/M 1) Federal Ministry of Economy & Technology, 2) EU Smart Grid report( 10 version) Home Automation area Champion

20 5. Next Step Next step, using the infra structure and plans to focus on service operations Product Constructs of smart service, appliance, renewable infra structure and operating system services Expanding the pilot project area in Jeju Service Energy care service: Induce to consumers energy savings DR/RTP : Conjunction with renewable energy- ESS and Market participation Network Solution Wi-Fi Plug, Regional GW (LG U+) Cloud-based open metering, EMS service (LG CNS) Final goal Reduce the environmental load Commercialization Reduce peak load 5%, Reduce average lade 10%, Reduce CO 2 emission 900kg/year/household Products, solution, network, service commercialization - Smart Appliances, AMI network sercice

21 Thank you for your Attention!! Sung-Nam Ryoo