GE Energy

The State of the Smart Grid Expectations vs Reality

Georgia Tech Clean Energy Series

Giri Iyer

@ 2010 General Electric Company. All Rights Reserved.

February 23, 2011

Information infrastructure

Sources: (1) UtilityPoint, by Ethan Cohen 7/18/0 (2) EPRI® Intelligrid

The integration of two infrastructures … securely …

Electrical infrastructure

What is Smart Grid?

+Embracing renewables

Empowering consumers

Increasingproductivity

Reducing CO2 emissions

Increasingefficiency

Core

Emerging

GE’s Smart Grid landscape

Generation optimizationRenewable integrationDistributed generation mgmtMicrogridsProtection & control

Energy storage systems Cyber securitySG network planning & design

Asset monitoring & diagnosticsBackup power mgmt & controlEnergy management systemsPlant load managementProtection & controlSub-metering TOU reporting

Storage managementIntermittency management

Grid diagnostics & visualization Reliability & demand forecastingGrid protection & control Fault detection & restorationWide area measurement systemSubstation digitizationTransformers & voltage managementDistribution, outage mgmt systems Geospatial information systems

Home area networksRenewable integrationDemand response & TOU pricingHome energy use monitoringPHEV integrationNeighborhood microgrids

Demand managementDemand responseBilling automation

Smart metersWireless AMISmart appliances

Industrial Communications

Copper Fiber Wireless

Power Generation Transmission & Distribution Residential & CommunityCommercial & Industrial

Bi-directional grid creates complexity

Expectations — A Paradigm Shift

DEMAND WORLD ENERGY CONSUMPTION INCREASE BY 75% BY 2030

SUPPLY ELECTRIC VEHICLES, WIND, SOLAR, STORAGE WILL SEE GROWTH IN NEXT DECADE

EFFICIENCY INFRASTRUCTURE OVERHAULS REQUIRED TO SUPPORT NEW EXPECTATIONS

BUSINESS MODELS

BUSINESS TRANSFORMATION AND NEW JOBS GROWTH

Realities – DemandConsumers•

Continuing education critical to success worldwide •

Generally have a “show me” attitude towards Smart Grid - we must be able to demonstrate benefits

•

Electricity can’t be a flat rate commodity much longer - usage has consequences, time of use is happening

Commercial•

Demand response and load control has been happening for a while

Industrial•

Companies with large consumption have their own power plants and are fine paying a premium for power

Utilities•

Do utilities really know the customer behind the meter?•

Benefits articulation is critical - tax payer wants more influence, control, and better choices

•

Learning from NFL - Increased taxes and jobs story alone not enough

Realities – Supply•

Global government spending driving Smart Grid investment worldwide - must move beyond pilots in 2011

•

Fossil is here to stay - CCS/shale, better options emerging

•

Nuclear renaissance is happening worldwide

•

Wind - mainstream in non-residential areas, small wind innovation key

•

Solar - excited about Dow solar shingles, seeing exciting companies in ecochallenge

•

Storage - massive opportunities, GE is investing in new factory in New York, US jobs

•

Volt, Leaf, Prius are key drivers - first wave will be “second car” thinking

•

Battery anxiety - need full tank of charge ~300 miles to mainstream

Realities – Efficiency•

Some low hanging fruit opportunities exist– Micropayment - humane “bad debt” management– Smart Crew dispatch - Moving from reactive to predictive– Asset portfolio optimization - Move the needle on higher

ROA %•

Distribution Automation – strong investments ahead to visualize demand side better; greater device density

•

Demand Response - adaptive, proactive

•

Public vs. private communication infrastructures

•

LTE coming - paradigm shift

Realities – New Business Models• New incentives/fund raising avenues key to decoupling

– Utility as communication provider - compete with cable companies?

– Utility as energy portfolio manager - charge by energy type in addition to time of consumption?

• Selling back to the grid - fad to reality•

Going off grid – microgrid, farms, universities, government

rooftops, islands• Independent power production

– More than a stable of wind turbines– What about roof tops? Commercial & Industrial?

Residential? How will it go mainstream?

GE’s Grid IQ™ Experience Center• Educates utilities, consumers, regulators and policy makers about the global energy landscape

• Showcases GE technologies modernizing the electrical grid to empower energy suppliers and consumers

• iPad-guided tour helps visitors understand smart grid solutions and their potential to change how power is generated, delivered and consumed

• Includes a smart grid innovation laboratory - a partnership between GE and Georgia Tech

• Positions Atlanta as a leader in driving change through the power of education

COME VISIT US… WE ARE OPEN

Questions?