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    Introducing the Smart GrideLearning Takeaways

    Part 1: Key Points To Remember

    Part 2: Glossary

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    Part 1: Key Points to Remember

    I Course Objectives:

    This training module will introduce basic Smart Grid concepts and why it is a great opportunityfor Schneider Electric. Upon completion of this course, you will be able to:

    1. Share a common understanding of the Smart Grid.

    2. Understand what the Smart Grid is and how Schneider Electric is uniquelypositioned to be a preferred Smart Grid partner to our customers

    Electricity grids can be compared to telephone networks and the Smart Grid would look like theinternet in its ability to deliver brand new services in brand new ways

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    II Defining the Smart Grid:

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    III Who is involved in the Smart Grid:

    Another key characteristic of the Smart Grid is that it brings together many different players,some of them historical players, others quite new. Here is a list:

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    IV Scoping the Smart Grid:The Smart Grid is therefore a whole new space that Schneider Electric understands.Our products and solutions support and connect the 5 key domains of the smart grid:

    Schneider Electric is Smart Grid-ready, and we help our customers all over the network beSmart Grid-ready too.That means providing them with Smart Grid-enabling products and solutions, and connectingthem to the Smart Grid.

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    V Schneider Electric Smart Grid strategy:

    Electricity networks are becoming more complex and less stable all over the world. To continueto efficiently balance supply and demand, the grid needs to become smarter.The question is how do we get there: how do we make the Smart Grid happen?

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    Part 2: Glossary

    Demand Response: Adapting real-time consumer demand for energy is another way to increasethe stability of the electricity grid. This is Demand Response, which aims at encouraging consumers touse less energy during peak hours, or to move the time of their energy use to off-peak times such asnight-time and weekends.

    This is achieved by collecting and sharing energy usage data in real-time, between end-users and theutility operators. It relies on financial incentives, education and other methods - and not on tariffs.Although Demand Response does not necessarily decrease total energy consumption, it is expected toreduce the need for upgrade investments in networks and/or power plants. Demand Response is a newactivity for end-use customers, starting in the US but now being piloted in many countries in Europe andAsia.

    Efficient Enterprise: For enterprises and public administrations, Active Energy Efficiency is thefastest, cheapest and most efficient way to reduce their energy bill and their CO2 emissions whilemanaging their business growth. As an example, Schneider Electric designed its new headquarterbuilding in Paris, the Hive, for maximum energy efficiency and achieved great results : 47% OPEXsavings with Power Usage Effectiveness down to 1.52 from 2.86 and 33% CAPEX savings whileensuring 99.98% power availability

    Efficient Home: Consumers look for competitive prices and also want to contribute to CO emissionsreduction. They are ready to play an active role including controlling consumption, producing energy,driving electrical cars etc Thanks to new information technologies, homes can be equipped with ActiveEnergy Management solutions that allow them to save up to 30% on their annual energy consumption.Once they are also connected to the Smart Grid, they can take advantage of new Demand Responsesystems that are now being tested around the world.

    Flexible Generation: Todays grid is faced with the needs to integrate renewable energy sourceswhile optimizing capacity and demand two challenges it was not initially designed for. It meansevolving from a one-way energy-only grid to a two-way energy + data grid, in addition to more price

    transparency.This requires increased flexibility. Distribution networks have to become more automated to manage thedata flowing through it; more protected, addressing the issue of cyber security; better able to measureenergy consumption at all levels and adjust demand; more reliable by using remote control faultrestoration and preventive maintenance; more efficient with wide scale monitoring; and more productiveby reducing OPEX.

    Smart Generation: Upstream in the Smart Grid, the energy mix is evolving. In addition to traditionalgeneration from nuclear, coal, oil and gas, the share of Renewable Energy from photovoltaic, Wind farm,small hydro plants, marine energy etc... is growing fast. Efficiently connecting these sources to theelectricity grid means solving 2 main issues:- 1. stability, which is affected by the intermittence of renewable energy sources, especially in weak'networks;

    - 2. two-way flow, because renewable energy sources are highly distributed and are found in theGeneration but also in the Distribution and End-user parts of the grid, which impacts networkmanagement and supervision.

    Smart Grid: The Smart Grid combines electricity and IT infrastructure to integrate and inter-connectall users - that is: generators, operators, marketers, consumers etc - in order to continue to efficientlybalance demand and supply over an increasingly complex network.