1. What is a smart Grid? Presented at the SAIEE Conference by Dr. M Bipath 1

2. Contents Smart Grid ecosystem The South African Smart Grid Initiative (SASGI) Drivers for change Smart Grid an enabler to address industry challenges Smart Grid Definition What is a smart Grid? SASGI Smart Grid Vision Smart Grid as a system 5 evolutionary steps to achieving the smart grid What is important in implementing smart grid projects 2

3. The Smart Grid Ecosystem Interconnectivity

4. Introduction to SASGI The National Energy Act, 2008 (Act No. 34 of 2008), Section 7 (2) amongst others provides for SANEDI to direct, monitor and conduct energy research and development as well as to undertake measures to promote energy efficiency throughout the economy. Therefore in the context of this Act the South African Smart Grid Initiative (SASGI) and the supporting Work Groups were established to assist in the development of a Smart Grid vision for South Africa and to provide amongst others policy inputs, direction in respect of standards, technology deployment and application. 4

5. SASGI, Governance, Affiliation and Workgroup Arrangements Sanedi Board SA Smart grid Initiative (SASGI) Skills Development and Training Marketing and Awareness Applied Research Technology and Standards Policy DoE (Chair) AMEU Cities Network CSIR DTI ESLC Eskom NT NERSA SABS SAIEE SALGA Universities TIA IDC Metropolitan municipalities DST NRF SANEDI ( Vice Chair) Industry members Universities Subject experts Developers Solution Architects Product developers ECSA Consultants ISGAN Technology Development 5

6. Smart grid Gartner Hype Cycle (2011) 6

7. Key Drivers for Change Automation Smart Grid Information Technology Telecommunications Low carbon Transition Renewable Resources Demand Response Environment Reliability Operational Excellence Ageing Infrastructure Capacity Energy Resources Ageing Workforce Operational Efficiency Customer Satisfaction 7

8. Smart grid as an enabler to address industry challenges 8

9. Cost and Benefits 9

10. Smart Grid Definitions 10

11. What is the Smart Grid? It is the integration of 3 infrastructures securely –Electricity power grid –Telecommunication systems –Information infrastructure

12. Smart Grid is understood to be a vision and a system 12 Smart Grid VisionSystem

13. Proposed SASGI Smart Grid Vision for South Africa An economically evolved, technology enabled, electricity system that is intelligent, interactive, flexible and efficient and will enable South Africa’s energy use to be sustainable for future generations. Clarity is provided on the meaning of certain of the words in the vision statement below. Economically Evolved – affordable electricity system that meets the growing needs of the economy Technology enabled – fit for purpose ICT, processes, sensors, systems and applications Intelligent – from data to knowledge Interactive – ability to monitor, control and manage using two way communications throughout the complete value chain Flexible – appropriate, scalable and adaptable based on common standards Electricity system – the complete value chain of all interconnected equipment and components from generation to end use Sustainable – optimised and affordable from environmental and economic perspectives 13

14. The Smart Grid Strategic Planning Process

15. Coherent Tactical plans in support of the Utility Vision Vision and Strategy Level of service Customer service plan HR PLan ICT PLan Asset MGT Plan Financial Plan Marketing Plan Operational Plans Monitor and review loop Tactical Plans

16. Scope of Utility change

17. Successful smart grid implementation involves PeopleTechnologyProcesses 17

18. Utility Change Considerations

19. Comprehensive Framework to guide the Smart Grid implementation in South Africa

20. Vision development approach 20

21. Scope of the smart grid systems view 21

22. Key Success Factors – The broad goals of the smart grid 22 Key success factors ReliabilitySecureEconomicEfficient Environmentally friendly Safe

23. Performance – What the grid must do to succeed? 23 Performance Emergency Response Restoration Routine operations Optimisation System Planning

24. Principal Characteristics – What features and functions are essential to meeting performance requirements. 24 Principle Characteristics Enables Active Consumer Participation and Empowerment Accommodates All Generation and Storage Options Enables New Products, Services, and Markets Provides Power Quality for the Digital Economy Optimises Asset Utilisation and Operates Efficiently Anticipates and Responds to System Disturbances Operates Resiliently Against Attack and Natural Disaster

25. Key Technology Areas – Which technologies support the desired characteristics? 25 Technology Areas Advanced control Methods Sensors and measurement Advanced components Decision support and Improved interfaces Integrated communications

26. The Smart Grid Communication Physical Architecture Key Point: The smartening of the electricity system is an evolutionary process and not a one time event

27. Illustrating the correlation between applications and key success factors 27 NREL

28. Metrics – How progress is measured and compared to the desired level of performance, to ensure that the key success factors are ultimately achieved. 28 Metrics Customer Average Interruption Duration Index (CAIDI) Cost of Interruptions and power quality disturbances Ratio of distributed generation to total generation System electrical losses Consumers participating in energy markets Total cost of delivered energy Emissions per kilowatt-hour delivered Ratio of renewable generation to total generation Peak and average energy prices Peak-to- average load ratio Transmission congestion costs Duration congested transmission lines are loaded >90%

29. 5 evolutionary steps to achieving the Smart Grid Step 1: Intelligent device infrastructure  AMI, or Smart meters  Distribution automation devices  Demand response devices  Substation IED controllers Step 2: Communications infrastructure  Enterprise communications system for rapid and accurate transmission of data  Integration of fibre and mesh broadband networks Step 3 : Integration  Corporate IT systems integrated to allow rapid processing of Data  Open architecture based design to facilitate sharing of information Step 4: Analytical infrastructure  Development of new data analysis capabilities  Increased ability to display information (in form of dashboards) Step 5 : Optimisation  Capability of real-time optimisation of the distribution network performance  Decisions based on near real-time information, no longer only historical data Maturity Capability 29

30. End to end Utility systems to manage Smart Grids Kema

31. The IT Battleground

32. What is important in implementing smart grid projects

33. Key takeaways The Smart Grid will work only to the extent that customers win. The smart grid will move at the speed of value. Customer adoption and participation is a key enabler. Interoperability and standardisation are not spectator activities. –Utilities need to get involved and make their voices heard and be engaged as individual companies and as an industry Through smart grids utilities will become technology companies. –No longer the “best solutions” but rather iterations of “Better Solutions”. –Similar to Electric System Operations, Communication Network Operations and enhanced Cyber Security will become part of our future DNA kWh sales business is dead. Utilities need to define how they will survive. 33

34. Questions 34

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