1 ALSTOM © 2012 Confidential

GRID Laurent SCHMITT,

Vice-President Strategy & Innovation

May, 2014

Alstom Grid

Lessons Learnt in

International Demand Response

Alstom Grid Energy Management leadership

Grid

Stability

30 years of experience in energy management

30 years ago 5 years ago 3 years ago Today

+ + + Renewable

integration

Demand

Response

Smart

City

The New System Flexibility Challenge

Renewable Subsidy

Renewable Connection

Renewable Integration

FENIX Future Distributed control FENIX Future Distributed control Integrated DG FENIX Future Distributed control FENIX Future

Capac

ity

2009 2012 2020

10%

Central

Generation

Transmission networks

Distribution networks

Central

Generation

Transmission networks

networks

Central

Generation

Transmission networks

Distribution

Central Generation

Transmission networks

Flexible Supply

Intermittent Renewable 3-5%

Central

Generation

Transmission networks

Distribution networks

Central

Generation

Transmission networks

networks

Central

Generation

Transmission networks

Distribution

Central Generation

Transmission networks

Flexible Supply

Passi

ve Di

spatch

ed Re

source

s

Intermittent Renewable 10-15%

15-20%

Passi

ve Di

spatch

ed Re

source

s

Central

Generation

Transmission networks

Central

Generation

Transmission networks

Central

Generation

Transmission networks

Central Generation

Integrated T&D Control

Zones

Flexible Supply

Intermittent Renewable

Dispa

tched

Resou

rces

15-25%

Flexible Demand & Storage 5-10%

20-25% fenix‘… a step towards the future of

electricity networks’

fenix‘… a step towards the future of

electricity networks’

The Grid 2.0

From centralised Energy Management towards bi-directional Energy Management

Today

a simple, one way model for energy

Tomorrow

an open, flexible, interconnected and interactive model for energy:

I

II

III

IV

II I

III

IV

Distributed Energy Resources integration

Integrated Grid controls for AC-DC Grid

Integrated & active distribution grid management

Smart metering & grid automation integration

How can it work ? Integrated Smart Networks

Large RES

Plant

Industrial Customers

Smart City

Local Energy

Optimization

H2 Storage

RES Distributed

Plant

Transport Networks

Local H2

Storage

Water Networks

Heating

Network

H2 Large Scale

Storage

H2

H2

H2 Distribution

Gas Network

Transportation

Gas Network

National Market

Global Energy

Optimization

Battery

Storage

International New Zealand (Transpower) France (ERDF, Dalkia) Hong Kong (CLP)

Alstom DR Experiences

Key DR Succes factors

• Scale and adapt while

regulation matures

• Automate and streamline

demand response integration,

from the customer thermostat

to the grid control room

• Target most Flexible DERs

Electrical Heating, Heat Pumps,

Distributed Gen, batteries, EVs

• Improve visibility and control of ‘active loads’ within TSOs/DSOs

Business Model Inertia

• Sell watts, not nega-watts

• 10-30 year decision cycles

• Asset base revenue

models

• Engineering, construction

cultures oriented to build

• Mistrust of unreliable and

unobservable resources

• Naturally competitive with

bulk generation

Retailing

Transmissio

n

Generation

Distribution

Resistance to move beyond

pilots or ‘low-hanging fruit’ of

large industrial DR or

residential AC programs

DR also conflicts with

traditional business models

But needs a critical mass of

investment and participation to

have noticeable impact

Regulations often serve

the status quo

DR Scale Up Model

Daily

Energy

Efficiency

Daily

Time-Of-

Use

Energy

(TOU Rates)

Dynamic

Peak Load

Management

(Dynamic

Rates)

Scheduled

Demand

Response

Real-Time

Demand

Response

(Ancillary

Reserves)

Regulation

(Ancillary

Services)

Service Levels

Optimized

Time of Use

Optimized

Service Levels

Temporarily Reduced

Increasing Levels of Granularity of Control

Increasing Speed of Telemetry

Increasing Interactions with Grid (OpenADR & Smart Grid)

Resources Sold Back to Grid

Time Scale of DR Source: LBNL

ADR Sweet Spot

Residential

Customers

Demand Response Management System (DRMS)

C&I

Customers

Aggregation

Customers

EmailSMSVOIP

Open

ADR

e-terraControl

ICCP/DNP3

Building

EMS

Systems

Hot Water AC

Home Gateways

· WiFi

· ZigBee

· DLC

· Other

Home

Area NetworkAMI Meter

IHDEV/PHV

LMS

Systems

AMI

Head

endsSMTP

Load

Mgmt

Systems

Back Office Systems Integration Layer

Standards Based Integration

We

b U

I &

We

b S

erv

ice

s

Wh

ole

sa

le M

ark

ets

Customers

Customer

Service

DR Operations

Aggregators

ISO/RTOs

Exchanges

Capital Markets

Dispatching

Systems

(ADS/AGC)

Balancing

Authority

(EMS/DMS)

Customer

Information

Systems

Metering

Systems

(AMI/MDMS)

Forecasting &

Unit Commitment

(GMS)

User

Access

(Portal/LDAP)

Settlement

Systems

Market

Mgmt Systems

(MMS)

Manage

Programs

Manage

Enrollments

Forecast

Availability

Create

Events Monitor

Response

Notify

Customers Calculate

Settlements

Optimize

Dispatch

A single DER Management Platform to optimise DER operation

across programs and providing a single point of dispatch.

Business Process Integration & Automation are key for DR Scale up

Integrating a wide range of Load Control subsystems

Direct Load

Control Switch

(~$25)

Low-tech, low-cost devices for Residential DR

.

Higher-cost and capable devices for

high-yielding Commercial & Industrial DR

Programmable

Communicatin

g

Thermostat

(~$75)

Home Energy

Manager

(~$200)

Remote Terminal

Units & Loggers

(~$1000)

Residential

Commercial

& Industrial

SCADA (~$$$)

Managing Real-time Coms : need to be selective

DLCs

Communication performance vs cost trade-offs

PCTs

HEMS

RTUs

SCADA

Ne

w G

en

era

tion

Ma

rke

t

Pla

ce (N

GM

)

Distribution Node

Balance

National

Balance

Regional

Balance

Offers

Offers Awards

Awards

Schedules

Constraints

RT Resources

conditions

RT Dispatch

instructions

VPP

Local Market Place

TSO

DSO

Prosumers

Regional Market Place Regional Coordination

Commercial Operation

Physical Operation

New Regulatory step : towards multi-tier markets

ALSTOM Grid proprietary information – Do not Disclose or copy without any prior consent –

2013 - P 13

RT Dispatch

instructions RT Resources

conditions

Central Market Place

Fuel Markets

CO2 Markets

Future byproduct Markets :

Heat ? Water ? Transportations

Flexible MW Duration Reaction

time Typical Energy Transactions Time horizon

Regulation Reserve

Emergency

Grid Operation

< 200 Seconds

< 10 Minutes

Hours

< 200

Grid security

Power Quality

Minutes

Seconds

Hours

Minutes Minutes

Market Operation

Minutes Peak/Off Peak Day Ahead 100 - 1,000

Energy Infra Day < 100 Minutes Hours

DER do no need to be able to tap in all revenue stream

New framework required for DER

Peak/Off Peak Week Ahead 10,000

Hours Hours Day Days Days Week

Consumer (KWh efficiency)

Islanding Quality

Power Quality

500 Minutes

Seconds < 10 Minutes

Load Management

Minutes Seconds

Minutes Hours Seconds

Minutes

100,000 Days Energy Efficiency Days Week

< 100 Minutes Minutes

Minutes

• Key SmartGrid challenges :

1. Level playing integration of Distributed Renewable within wholesale

markets (including new Renewable tariffs for Self consumption)

2. New Balancing & ancillary service mechanism for level playing

integration of DER flexibility across the Energy System

3. Regulatory framework for storage integration, roles of storage and grid

operators and services offered to the system

4. Prosumer Data management principles (data ownership, opt-in

mechanisms, DSO rights)

5. New mechanisms for Energy Management at Distribution Grid Node (grid

operator role, interfaces with other network, city role)

6. Prosumer integration principles (service quality, standards, security,

privacy)

Top 6 Regulatory hurdle for Smart Systems

New System Operator Role at Distribution Level

New DER Situational Awareness in MV/LV

DSO

Manage Distribution

Constraints/AS

Energy Supplier

Provide Energy

Prosumers/Microgrids

Manage DER

Contracts

Public Data Operator accross Networks (Smart City Operators)

DER Flexibility

Aggregator

National Balancing & Ancillary Service Mechanism

Manage Submetering

Exchange market/grid information

Buy/Sell Flexibility

Within National Balancing

Buy/Sell

Flexibility

Sell Information

Offer Grid

Access

Sell

Energy

Sell Information Share Information

Local Energy Stakeholders National Energy Stakeholders

New Distribution Market Place

IssyGrid Smartcity concept

Welcome in Alstom Smart Grid connected world !