1. STEPHEN BURDIS

2. GE EnergyCleaner, Smarter, More Efficient Cleaner, Smarter, More Efficient UK T&I Techworld Conference Stephen Burdis European Smart Grid Segment Leader 17 November 2011 3. Cleaner, Smarter, More EfficientGE In the UK 4. Every day 19,000 employees go to work at our 60 major sites 13M of funding is provided to SMEs by GE Capital 5,000 patients are diagnosed in hospitals on GE CT & MR scanners 150,000 travellers take-off in a GE- powered aircraft GE produces 20% of the UKs energy demand we are solving Britains challenges in areas such as smart grid, renewable energy, health at home, energy storage and a cleaner, healthier London 2012 Games for allacross the UK4/ GE Presentation to UKTI Techworld/17th November 2011 5. Cleaner, Smarter, More EfficientSmart Energy Challenges andOpportunities 6. Power needs areWhy EverydaygrowingPeople Need Us To By 2030, more than 60% of the global population willMove Forward live in cities Power must remainaffordable Double-digit price increases are already common around the world Sustainability must beachieved More than 40% of current emissions are from electric generationSource: International Energy Agency 7. Aging infrastructuresWhy the Energy More than 50% of installed transformers are reaching theIndustry Needs Usend of their design life To Move Forward Growing competitionfor resources Per capita electricity use will soar globally Prosperity vssustainability Competitiveness will be determined by our ability to grow in a prosperous yet sustainable manner 8. 8/GE Presentation to UKTI Techworld/ 17th November 2011 9. UK Distribution Company R&D trends UK Distribution Company IFI spendImpact of new incentivesPrivatisation on Network R&D since 1990950013m > c.180 projects85007500 Projects areinitiated by the65009m > companies5500 Impact of IFI Incentive Ofgem does not 0004500approve each3500project2500 Only one company1500is spending to itscap 500-500 Av. intensity is /0/1 /2/3 /4/5 /6 /0/1 /2/3 /4/6 /70.27% s) 8990 9192 9394 95 9900 0102 0305 06 th6m 1919 1919 1919 19 1920 2020 2020 20 Forecast benefits t1sFinancial Yeartotal 70m (NPV) FI (I 5 r0Ap -4t00c* Data from 1989/1990 to 2003/2004 is the collaborative spending on R&D amongst the DNOs through a single provider.* Data from Oct 2004 - April 2005 and the last financial year (2005/2006) shows reported total IFI spend. 9/GE Presentation to UKTI Techworld/ 17th November 2011 10. Technology Drivers Exponential increase in SCADA remote control and monitoring Increased HV secondary remote control MV side of Secondary substations Indication and monitoring to LV System Increased scope and volumes of Time Series data held Network data Smart Meter data Vastly improved Network Modelling and Design Applicationswith integrated Smart Network data DNO Networks are becoming active Power Flow Analysis on Network Control to enable: Optimisation scripting with embedded generation System restoration 10 / 2011 General Electric Company GE Presentation to UKTI Techworld/All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner.17th November 2011 11. What does it mean for a DNO IT Organisation There has to be a greater convergence of: The Network Assets Business Systems SCADA There has to be a greater convergence of: IT The Business An exponential increase in the volumes of data held Need to allow for the purchase of Smart Meter data Increased volumes of communications Increased need for system integration Greater investment in IT infrastructure and smart systems 11 / 2011 General Electric Company GE Presentation to UKTI Techworld/All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner.17th November 2011 12. We will need a capable infrastructureWhere intelligence is incrementally added12 / 2011 General Electric CompanyGE Presentation to UKTI Techworld/ All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner.17th November 2011 13. Market and Technology Drivers Renewable generation growth (Wind, Solar)Carbon reduction Electrification of transport and heating (EV, heat pumps)Energy security Small Distributed Generation, Demand Side Mgmt, Smart MetersEconomic competitiveness andaffordability Customer empowering (Residential feed-in, storage, time of use tariffs)Regulatory incentives and energy policy are impacting distribution networkswhich require investment to meet the challenges 13 2011 General Electric Company11/29/2011 All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner. 14. Turning Technology to Market Need14 2011 General Electric Company11/29/2011All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner. 15. Smart Grid Journey Smart Grid JourneyBuildImprove Full Network OutageControl PowerOptimise Foundations Performance Visibilityavoidance Flows NetworkUnderstandImprove UnderstandProactively avoidControl localAchieve maxcurrent network customer servicenetwork power network outagespower flowsreturn onBusiness status(SAIDI) flows / voltages(EVs, PV)network assets GIS, M&D, SSobjective Network modelOutageDistributed Au Smart Meters DG control Active Network / Switching plan managementpower flow Integrated DSMAsset MgmtMainfunctionality * DMS (SAIDI/SAIFI/OPEX reduction) ANMDSMT&C VPP* DMS (SAIDI/SAIFI/OPEX reduction) Constraint ManagementGE Value `Low Carbon EconomyPropositions * Improve Customer ServiceEmpowering Prosumers Power QualityIncrease Energy EfficiencyAsset and Yield Optimisation* These are selected examples for illustration only - not representing the entiresolution 15 GE Presentation to UKTI Techworld 2011 General Electric Company17th November 2011All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner. 16. Lending GEs voice to the debateTrade AssociationsTechnical Standards Academia / Think Tanks 2011 General Electric Company All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner. 17. Cleaner, Smarter, More EfficientSmart Consumers and Cities 18. The changing energy consumerTODAY TOMORROWConsumers around the globe do not What are the business models of the understand the basic unit of electricityfuture that support a low carbonpricing and other energy concepts usedeconomy? by energy providers (1)(1) IBM - Global Utility Consumer Survey, Aug , 2011 18 GE Presentation to UKTI Techworld 2011 General Electric Company17th November 2011All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner. 19. Understand how they are going to live ...Predicted electrical energy consumption of an averageEuropean household (flat) with 1 electric vehicle:Others10.7% Refrigerator/FreezerElectric Vehicle 15.2% StandbyCharging 12-46% 5.4%Computer2.7% DishwasherLaundryTelevision9.2% + 6.7% Cooking7.5% Lighting10.5%Water Heater additional 8.6% Heating/Cooling 23.5% Source: JRC Scientific & Technical Reports, Electricity Consumption and Efficiency Trends in European Union, Status Report 2009 Assumption: 3500kWh annual consumption average. At an average electric energy consumption of 5-15 kWh/100km and at an averageannual driving distance of 10 000 20 000 km there will be an additional electric energy consumption of 500 3000 kWh per electric vehicle(charged to the household; possibly partially consumed at another point in the electric vehicle charging infrastructure, e.g. office or supermarket.) 20. The smart home 20 GE Presentation to UKTI Techworld 2011 General Electric Company17th November 2011All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner. 21. 21 GE Presentation to UKTI Techworld 2011 General Electric Company17th November 2011All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner. 22. Smarter consumers, Smarter citiesMulti-domain, interconnected needs INTEGRATED TECHNOLOGYCOST EFFECTIVEOPERATIONAL EFFECTIVENESS HOLISTICBEHAVIOURAL CHANGE 2011 General Electric Company All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner. 23. Smart City Challenges As Economic crisis continues and Environmental awareness grows, City challenges appear at 3 levels : quality of life, managing constraints & financing 1)How can City maintain long term quality of life by controlling capex and opex? 2)How can City positively manage the increasing and tougher constraints? 3)How can City secure and manage cost of project financing associated with population and constraints?Control Network Costs Manage constraints Finance improvementEU Country Debt Steady price increase +1.8% Environment 20 / 20 / 20 Increase of Country debt/y Electricity & +5.1% Gas EU & National regulations City turning to Local and All network cost increase Local expectations private financingSources: Eurostat, IEA, EC, EEA, World Bank, GE analysisHow can urbanised life be improved while addressing future constraints?23GE Presentation to UKTI Techworld 2011 General Electric Company17th November 2011 All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner. 24. In Conclusion Changes in in generation and consumption technologiesand customer behaviour are driving smart energy solutions GEs Smart Grid technologies are managing increasinglycomplex network environments and enabling low carbonservices Cities are coping with demographic changes and increasingconstraints on infrastructure GE energy solutions and smart appliances are helping thetransition to a low carbon economy Evolution needed across all existing and new stakeholderroles in the energy value chain The technology exists today Stephen BurdisGE Energy stephen.burdis@ge.com 2011 General Electric Company All rights reserved. This material may not be copied or distributed in whole or in part without prior permission of the copyright owner.