WHY THE SMART GRID REVOLUTION?

Running today's digital society through yesterday's grid is like running the Internet

through an old telephone switchboard

Reid Detchon

NEW CHALLENGES TO THE ELECTRICITY NETWORK

OUR CLIENTS ARE FACING 4 MAIN CHALLENGES

Increasing demand for energy and electricity

1

RAISING THE NETWORK’S COMPLEXITY

2Moving towards an environmentally-friendlier energy mix

(lower carbon emissions, more renewable energy…)

3

Volatile energy prices and critical energy losses

4Emerging large regional transmission networks

INCREASING DEMAND FOR ENERGY

Source: IEA Key world energy statistic 2007, world energy outlook 2007

Increasing share of electricity in the energy mix

Energy Demand will grow by 55 % between 2005 and 2030

1

WITH ELECTRICITY GROWING FASTER

MOVING TOWARDS AN ENVIRONMENTALLY-FRIENDLIER ENERGY MIX

Increasing share of renewable energy in the generation mix

CO2 emissions grow faster than energy demand

0

3

6

9

12

15

1990 2000 2010 2020 2030

Gig

aton

nes

of C

O 2

United States

China

Rest of non-OECD

Rest of OECD

2

WITH MORE RENEWABLE ENERGY

CONSTRAINTS ON PRIMARY SOURCES Critical level of losses

Sco

tland

An inefficient energy chain with 2/3 of primary energy lost, mostly due to power conversion

Between 7% & 16% of the electricity generated is lost on the networks

3

HIGHLIGHTING THE IMPORTANCE OF POWER EFFICIENCY

EMERGING LARGE REGIONAL TRANSMISSION NETWORKS

ENSURING SUPPLY SECURITY AND PRICE DECREASE► The European case:

Directives 2003/54 & 2003/55 adopted in 2003 to create a large, continental electricity grid in Europe

Create opportunities for new comers in generation and distribution Independent gas and electricity regulatorPossibility for all customers to change suppliers

Similar actions take place in the USA and other regions.

LEADING TO DIFFICULTIES TO COPE WITH THE INCREASEDNETWORK COMPLEXITY► 2003 North America

50 millions inhabitants affectedRestoration took a few days

► 2003 Italy57 millions inhabitants affectedRestoration: 4hours

► 2005 Moscow4 millions inhabitants affectedRestoration: 2 days

4

REINFORCING CUSTOMERS NEEDS

REINFORCING EXISTING NEEDS

Reliability and qualityEnsure security of supply, reliability of the network and quality of the electricity delivered

The network must be smarter with more intelligence at all levels

StabilityMonitor oscillations and manage the network to prevent blackouts and maximize availability of power

Environmental concernsProvide clean energy (CO2 free) and reduce environmental impact

Market efficiencySet up tools and processes to fully enable energy marketsEnable customers / end-users dynamic participation

Energy efficiencyDeliver the maximum of electricity to the end-user, starting from a given quantity of energy and from existing assets

TODAY’S ONE-WAY CENTRALIZED ELECTRICITY NETWORK…

4

380kV

110kV 25kV220/110kV

20kV20kV

400/230V

380/220V

12kV 380kV

Power flow

-

Heavy Industry

Residential Areas

Family Homes Farmhouses

Transmission Network

Rail Traffic

Department Stores, Offices, Light

Industry

Power plant

FarmhousesFarmhouses

Transmission Network

Rail Traffic

… NEEDS TO EVOLVE

Centralized versus decentralized

Wind Farms

Central power plant

Fuel Cells

Industrial Plants CHP

Residential Areas

Department Stores, offices Micro-turbines

StorageVirtual Power Plant

Decentralized generation Central generation Consumption

Power Flows

TOWARDS A DYNAMIC AND BIDIRECTIONAL FLOW OF ENERGY AND DATA…

…WITH SUPPORT FROM NEW TECHNOLOGY AND REGULATION

► Emerging governmental energy policies for energy & environmental efficiency:

Energy supplyBlackout preventionEnergy demand management

Energy policies / Regulatory pushEnergy policies / Regulatory push

New technologyCapabilities

New technologyCapabilities

► New technology capabilitiesTechnological ConvergenceModeling and simulationComplex systems controlEnergy storagePower electronics…

BRINGING ON THE SMART GRIDS

THE SMART GRID

More efficient, More efficient, More reliable, More reliable,

EnvironmentallyEnvironmentally--friendlier, friendlier, ……SMARTER GRIDSSMARTER GRIDS!

AREVA’S SMART GRID VISION

CO2 free energy sources

integration

CO2 free energy sources

integration

• Nuclear• Centralized / Decentralized

Renewable• Micro–renewable• Energy storage

Transmission optimization

Transmission optimization

• Infrastructure (incl. long distance, both energy & communication)

• Network management

Distribution optimizationDistribution optimization

• Infrastructure ( to enable bi-directional power flows, communication)

• Network management

New consumption modes integration and management

New consumption modes integration and management

• Electric cars• µ-production and µ-grid• Deregulated environment• Smart appliances &

buildings

Energy policies / Regulatory push

New technologies capabilities

Enablers Blackout preventionBlackout

prevention

• Defense plan• React in real-time• Online Stability• Closed Loop Control

Market efficiency

Environmental concerns

Energy efficiency

+

Customers needs

Reliability and Quality

Stability

AREVA T&D’S SMART GRID VISION

We offer our customers a wide range of reliable and innovative solutions to help them meet

today’s and tomorrow’s electricity challenges

We offer our customers a wide range of reliable and innovative solutions to help them meet

today’s and tomorrow’s electricity challenges

To respond to these challenges, grids need to evolve to become more efficient, environmentally-friendlier and more reliable, in a word the smarter

grids – a process of constant improvement

To respond to these challenges, grids need to evolve to become more efficient, environmentally-friendlier and more reliable, in a word the smarter

grids – a process of constant improvement

We have made Smarter Grids a top priority in our ambitious R&D program and we already offer

some Smart Grid-enabled products.

Making the grid smarter can only be achieved by combining smarter technologies and smarter

teamwork

We have made Smarter Grids a top priority in our ambitious R&D program and we already offer

some Smart Grid-enabled products.

Making the grid smarter can only be achieved by combining smarter technologies and smarter

teamwork

A PROCESS OF CONTINUOUS IMPROVEMENT

Market efficiency

Environmental concerns

Energy efficiency

Customers needs

Reliability and Quality

Stability

SMARTER TEAMWORK

SMART GRIDS, A SMART COMPANY NETWORK

Customers

AREVA T&DAREVA T&D

Technology players

Universities and experts’networks

Local specialist associations

UtilitiesIndustrialDomesticRegulators

ICT industry (Software / Hardware / Services)Energy-related niche players (Metering, Demand Response…)IntegratorsOther industry players (Automotive, Domestic Appliances…)

PARTNERING WITH CUSTOMERS

User Groups…

Post-CIGRE Event…

Dr. PachauriNobel Peace Prize 2007

PARTNERING WITH TECHNOLOGY PLAYERS

Specific skills of Integrators & Software companies…Supported by Energy experts…

FOR FASTER DEVELOPMENT AND COMPLETE SOLUTIONS

PARTNERING WITH LOCAL STAKEHOLDERS

Member of the European Technology Platform SmartGrids

Member of North American Electric Reliability Corporation (NERC)

Member of the GridWise Alliance (USA)

Member of the Power Systems Engineering Research Center (PSERC) in the USA

WITH SUPPORT FROM FINANCIAL INSTITUTIONS

SMARTER TECHNOLOGIES

OUR E-TERRA PRODUCT RANGE

FOCUSING ON ENERGY GRID EFFICIENCY AND

RELIABILITY

Main featurese-terraplatform for network

management solution foundation

e-terrasource for centralized configuration models management

e-terradistribution for active distribution network management

e-terravision for real-time situation awareness

OUR ONLINE STABILITY SOLUTION

PREVENTING BLACKOUTS

Main featuresAdvanced visualization of Phase

Measurement Units (PMU) angle difference

Real time trending of stability margin

Oscillation monitoring

Wide Area Monitoring and Control

MINIMIZING COSTS AND ENSURING RELIABILITY

Main featuresMonitors, via sensors major

components of the circuit breakers

Analyses information and triggers alarms locally and/or remotely

Can be applied to all High-Voltage Circuit breakers : Live Tank, Dead Tank, Generator Circuit Breaker

OUR CB WATCH-2 CIRCUIT BREAKER MONITORING SYSTEMS

MINIMIZING COSTS AND ENSURING RELIABILITY

Main featuresContinuous supervision

Exact statements about operating condition

Optimized operating and lifetime management

Early detection of incipient faults

Avoid failures, outages & collateral damage

Knowledge of transformer life & lifetime consumption

Extended transformer lifetime

Reduction of life-cycle cost

OUR MS3000 TRANSFORMER MONITORING SYSTEMS

DataDataacquisitionacquisition

DataData analysisanalysis

LifetimeLifetime datadatamanagementmanagement

VisualisationVisualisation

InformationInformationdistributiondistribution

ConditionConditiondiagnosticsdiagnostics

OUR FACTS DEVICES RANGE

IMPROVING NETWORK STABILITY AND RELIABILITY

Main featuresReactive Power compensation

Power Flow increase

Reactive Power Control

Power Flow Control

Fast Dynamic Response

Stability improvement

Reliability improvement

Power oscillation damping

MSC MSRSC PST

STATCOM / D-STATCOM TCSCSVC

SVC = Static Var CompensatorSTATCOM = Static Synchronous CompensatorD-STATCOM = Distribution STATCOMTCSC = Thyristor Controlled Series CapacitorDVR = Dynamic Voltage RestorerSSSC = Static Synchronous Series Compensator

DVR / SSSC

SR

MSC = Switched CapacitorMSR = Switched ReactorSC = Series CapacitorSR = Series ReactorPST = Phase Shifting Transformer

OUR D-STATCOM SOLUTION:SVC MaxSine

SMART NETWORK SUPPORTING DEVICE

IMPROVING POWER QUALITYMain features

All-in-one Real-time Compensation

Current Harmonics Compensation

Voltage Stabilisation

Flicker Reduction

Power Factor Correction

Load Currents Balancing

Reaction Time is less than 2ms

Universal Communication Connectivity

OUR ACTIVE FILTER: MaxSine

ACTIVE FILTERINGMain features

Reactive Compensation

Active Filtering

Selection of harmonic currents to be compensated

Compensation factor selectively adjustable from 0 to 100%

(f ile jebel-back.pl4; x-var t) v:BUSH. 0 10 20 30 40 50 60 70 80[us ]

-300

-150

0

150

300

450

600

750

900[kV]

OUR NETWORK STUDIES CAPACITY

MODELING SMARTGRIDS

Main featuresRenewable Energy Sources

integration (wind farms)

FACTS integration and coordination

Distributed Generation integration

Protection plan analysis (Distribution Networks with 2-ways power flow)

Best solutions for Short Circuit Currents limitation

Electric cars integration

…

SMARTER TECHNOLOGYSome Success Stories

USA – OUR NEW GENERATION PE SVC Xcel ENERGY

IMPROVING TRANSMISSION GRID STABILITY

Customer BenefitsEasing connection of renewable energy and stabilizing the networkMinimizing voltage fluctuationIncreasing power transfer capabilitiesImproving steady and dynamic transmission system performance

IMPROVING NETWORK STABILITY AND DE-ICING

OVERHEAD LINES

Customer BenefitsSVC to improve 735kV network security and reliability

DC injection to melt the ice on overhead lines.

Fast reconfiguration from SVC mode to HVDC de-icermode (<1 hour)

CANADA – OUR NEW GENERATION PEHVDCice™

IMPROVING POWER QUALITYFOR A NICKEL MINE

Customer Benefits3-in-one Compensation

Power Factor CorrectionVoltage StabilisationFlicker Reduction

Listens to the Network, not to the LoadCompensation-on-demand Features

WEST-AUSTRALIA – OUR SVC MaxSine

EMIRATES – OUR SVC MaxSine

IMPROVING POWER QUALITY FOR A STEEL

FACTORY

Customer BenefitsAll-in-one Real-time Compensation

Harmonic currents CompensationFlicker ReductionPower Factor CorrectionLoad Currents Balancing

Reaction Time is less than 2msUniversal Communication Connectivity

USA – OUR e-terrasettlement

DEMONSTRATING OUR SOLUTIONS’ POWER

AND RELIABILITY

Customer BenefitsOffering a truly scalable architecture to meet the growing data volume needs. A fully configurable solution.

DENMARK

TOWARDS MORE EFFICIENT DISTRIBUTED GENERATION

MANAGEMENT

Customer BenefitsProviding crucial information for properly estimating how much generation each turbine producesAssessing the network securityProviding a full realistic operational behavior simulation environment with Dispatcher Training Simulatorn (DTS)

CHINA – OUR e-terravision

FOR SMARTER TRANSMISSION

Customer BenefitsAn integrated and unified Situation-Awareness tool within the Generalized Grid Security Framework (GGSF). Providing advanced decision support tools to guide operators with re-dispatch actions to alleviate security violations

SWITZERLAND - OUR INTRA-DAY PLANT OPTIMIZER

FOR SMARTER DISPATCH

Customer BenefitsAll generation, transmission and distribution applications in a single, field proven systemProviding a very broad and cost-effective set of functionsReal Time monitoring: improve compliance with schedules, reduce counter-trading, increase security

FRANCE - MICROGRIDS CONTROLLER

THE MOST EFFECTIVE AND RELIABLE

SOLUTIONS

Customer Benefits Cheaper solution than the traditional Generator + battery solutionConformity with the National and EC laws applicable in Medical site