Customer Centric Solutions for Safe, Reliable Grid and Integration of Renewable Energy Sources Arun Vedhathiri, Director, Project Delivery, National Grid April 20, 2018, Energy 21 Symposium, Syracuse, NY.

In the U.S., our focus is on four key areas Equitable access to clean generation; resiliency and optimization couple with storage solutions for greater value DG AND STORAGE Developing an infrastructure to facilitate the expansion of vehicles and fleets with electricity and natural gas CLEAN TRANSPORTATION Advancing and integrating technologies to enable a more efficient and effective grid to support the new customer needs GRID MODERNIZATION Enabling the value of distributed resources to help reduce electricity usage in constrained areas NEXT GEN EE, DR AND NWAs

NY, MA, RI: CO2 Reduction Targets (1990 Baseline) Clean Energy Goals 80% by 2050 NY, MA, RI: CO2 Reduction Targets (1990 Baseline) Near Term Deeper Energy Efficiency Grid Modernization Natural Gas Infrastructure Renewable Integration Electrification of Transportation Mid Term 50% CO2 Reduction by 2030 Long Term De-Carbonized Economy

Clean Energy Transition @ National Grid US & UK Solar Solar interconnections greater than new gas connections for last 2 years $100 Mil. investment in Sunrun, largest US residential solar firm Wind Deepwater Wind’s Block Island Wind Farm to the grid - first offshore wind installation in the US. Biomass Newtown Creek Renewable Gas Project, Biogas from organic waste ~ Heat 5200 Homes Storage 8 grid scale electric storage projects underway in NY, MA and RI service territories in 2018 In UK >50% of energy delivered in summer of 2017 came from low carbon sources

Promoting DERs in NY Hosting Capacity and Lidar data for DER developers to enable locating and sizing of systems LSRV locations and capacity needs for higher compensation for DERs Distributed Services Platform to enable transactions for DERs and earn for various grid services 53 Locational System Relief Values (LSRV) Areas

Volt Var Optimization & Conservation Voltage Reduction VVO and CVR are active techniques to optimize voltage at distribution feeders for following benefits: Reduce Distribution Losses Lower Customer Consumption Optimize Feeder Power factor Maximize equipment operating life Maintain ANSI Voltage Range Support/utilize DER installations Minimize PQ issues (Flicker, Load Tripping, etc.) Upgrades to Station LTC, Station Voltage Regulators, Station Capacitor Banks, Distribution Capacitors, Distribution Regulators, Line Voltage Monitors and AMI

Non Wire Alternatives (NWA) Kenmore, NY Non Wire Alternatives (NWA) and Non Pipe Alternatives (NPA) following REV strategy Summer Peak Load Problem in Kenmore NY Traditional Wire Solution – Add capacity at substation NWA Solution: Demand Response from Direct Load Control of AC units 2 MW Battery Storage 16 Additional NWA Solicitations to date

NY REV Projects - Electric Fruit Belt Solar Clifton Park DR DSP - Distributed Services Platform Community Microgrid Utility owned Roof Top solar for Low and Moderate Income (LMI) community Grid benefits of aggregating solar AMI enabled customer portal, behavioral Demand Response VVO - Volt Var Optimization for grid efficiency Transactive system to compensate Distributed Energy Resources (DER) for grid and societal benefits Resiliency from storm hardened power delivery with local DER for critical and essential services in Potsdam, NY

2018 Customer Offerings in DER Residential Solar Marketplace Connected Solutions & Marketplace Electric Vehicles Initiative LED Street Lights and Smart City Infrastructure Online calculators and e-commerce resource to compare solar proposals and financial options 60+ Solar providers Rebates for smart thermostats & other connected smart devices Direct Load Control (DLC) for Demand Response (DR) Residential Time of Use (TOU) rate, consumer education Expand charging network at workplaces & apartments Dimmable LED street lights Citywide IoT mesh network, connected devices and sensors for DER assets