1. LV Community Grids Opportunities to increase the collective use of Distributed Energy Resources (DER) and the effective integration of solar PV + Energy Storage using pseudo Distribution System Operator type functionality

2. LV Connected DER Solar PV Panels Electric Vehicle Home Energy Management Controller/s DRED Enabled Devices Thermal Energy Storage Electrical Energy Storage Inverter/s Other Controllable Loads Intelligent Grid-edge Device (e.g. Smart Meter) Customer LV Electricity Supply Network

3. LV Connected DER Individual Customer Centricity The customer is at the centre! Drivers for investment vary Diversity in capability and application Customer preferences determine configuration What is the implied level of asset/resource optimisation? Individual Premise How much asset/resource “value” is not able to be realised?

4. LV Connected DER Value in Grid Connectivity Significant Increase in Asset Utilisation Significant DER Capacity Improvements Nite charge Limit nite charge Nite discharge Example battery level for different operations

5. LV Connected DER Value in Customer Diversity French standard NFC14-100: Apartment Block: applicable for apartments of domestic customers without electrical heating, and supplied at 230/400 V (3-phase 4-wires). Heating and air conditioning circuit Diversity = 1 The value of customer DER investments can be significantly increased by enabling energy “services” to be shared across a community of LV network connected customers This opportunity exists because of the natural load diversity of customers which increases in proportion with increasing customer numbers The application of DER on a local community basis is enhanced by being able to integrate the various DER capabilities in ways that increase their use and by so doing reduce costs for individual customers and the LV network connected community - This requires an appropriate management and control environment

6. LV Connected DER Value in Customer Diversity Benefit: reduction in total battery capacity Off-Grid System Comparison Benefit: increase in total battery utilisation Night Grid Supply System Comparison (10pm-5am)

7. LV Connected DER Value in Integration and Management Energy Services Reactive Power Provision Frequency Support Emergency Response Economic Response Scheduled Activities Situational Awareness LV Network Connected Community

8. LV Connected DER Value in Integration and Management – Manage, limit, and/or curtail real power to avoid or mitigate distribution congestion, equipment overloads, or power quality issues – Schedule real power (ESS or other DER) – Provide “available” reactive power for power quality voltage support on a feeder (no impact on real power) – Provide maximum reactive power for reliability voltage support on a feeder (does impact real power) – Provide operational (spinning and non-spinning) real power reserves (normal operations and microgrids) – Provide AGC frequency support through direct utility control (ESS) – Provide autonomous frequency support (Frequency-Watt) – Compensate for renewable energy fluctuations (ESS with PV/wind) – Compensate for (rapid) load fluctuations (DER/ESS with loads) – Reduce peak loads (demand response) – Create (planned) islanded microgrid – Provide black start capabilities Reference: Xanthus International Consulting – SIWG Phase 3 Advanced DER Functions – November 2015 Functions

9. LV Connected DER Value in Integration and Management Benefits Utility ActionsDER or PCC Autonomous Modes StaticMonitoringControllingReal PowerPFFreq. SupportVoltage SupportResilience SIWG Economic and Technical Use Cases for Smart DER Functions, Categorized by the DRP's More-Than-Smart "Mutually Exclusive and Collectively Exhaustive (MECE)" List Access: DER and/or PCC nameplate data Access: DER/PCC capabilities and supported modes Monitor: DER and/or PCC operational characteristics Monitor: Short term forecast of DER/PCC energy Monitor: Permitted/available DER/PCC modes Monitor: DER and/or PCC status & measurements Control: Start/stop DER Control: Enable/disable modes of DER/PCC Control: Set mode parameters and curves for DER/PCC Control: Schedule real power and modes of DER/PCC Control: Issue AGC Reg Up and Down Mode: Limit maximum DER real power output Mode: Limit maximum ESS charging rate Mode: Set real power output of DER or at PCC Mode: Set real power (dis)charging rate of ESS or at PCC Mode: Load / generation following by DER or ESS Mode: Smoothing of real power spikes and sags Mode: Soft-Start Reconnection Mode: Fixed power factor Mode: Power factor correction Mode: High/low frequency ride- through or trip Mode: AGC (utility sends Reg up and down commands) Mode: Frequency smoothing (rapid frequency deviations) Mode: Frequency-watt (Emergency) Mode: High/low voltage ride-through or trip Mode: Volt-var control Mode: Volt-watt control (autonomous) Mode: Fast var support Mode: Dynamic reactive current support Mode: Backup power Mode: Provide black start Mode: Convert into microgrid ISO/RTO Balancing Authority & Market Fixed Resource Adequacy (Capacity, Generation, Bl. Start) xx xxxx Resource Adequacy (Flexibility, Ramping, Market) xx xxxxxxxx xx xxxxxxx Variable Energy (shifting in time) xxxxxxxxxx xxxxx Frequency regulation xxxxxx xx x xx x Frequency smoothing xxxxxx xx x Spinning reserve xxxxxx xx xxx x Non-spinning reserve xxxxxx xx xxx xx Transmission Operations Fixed Upgrade deferral due to congestion mitigation xx x Variable Transmission voltage support xxxxx xxxx xx xxxxx Transmission congestion relief xxxxx xxxx xxxxx Efficiency (loss reduction) xxxxx xxxx x Reliability (redundancy, inertia) xxxxx xxxx xxxxxxx x xxxxxxxxx Distribution Operations Fixed Upgrade deferral due to load levels & patterns xx xxxxxxx xx x Variable Provide distribution voltage support xxxxxxxxxx xx xxxxx Maintain CVR xxxxxxxxxx xxx Reduce number/duration of outages xxxxxxxxxx xxxxxx Improve power quality (spikes, harmonics) xxxxxxxxxx xxxxx Improve efficiency xxxxxxxxxx xxxxxxx xxxxx Avoid equipment overload, loss of life xxxxxxxxxx xxxxx Improve equipment life xxxxxxxxxx xxxxx Support safety xxxxxxxxxx x x Customer/End User Fixed Procurement risk mitigation Variable Support customer choice xxxxxxxxx x xxx xx xxx xxx xxx Reduce energy costs xxxxxx xxxxx x x Improve power quality (spikes, harmonics) xx xx xxxx Avoid equipment damage x xxx x x x x Support safety xx xxx x x x x Improve reliability (microgrids, backup power) xx xxx x x Price & performance risk mitigation xxxxx Societal Variable Reduce CO2 emissions x Reduce pollutants x Improve energy security x Improve water usage Improve land usage Improve economy Reference: Xanthus International Consulting – SIWG Phase 3 Advanced DER Functions – November 2015

10. LV Connected DER Management Architecture and Control The hierarchical DER Smart Grid Architecture Model comprises five layers: -Level 1: Autonomous DER systems responding to customer preferences and local conditions -Level 2: The customer DER management systems (CDEMS) managing local DER systems -Level 3: The energy retailers and utilities interacting with CDEMS and DER systems -Level 4: The utility DER management systems (DERMS) model and analyse DER system impacts and capabilities in order to request/command DER actions -Level 5: The Independent System Operators and various wholesale and retail energy markets, working with distribution utilities, provide optimisation requests, pricing information and emergency commands

11. LV Connected DER Management Architecture and Control Reference: Xanthus International Consulting – SIWG Phase 3 Advanced DER Functions – November 2015

12. LV Connected DER Management Product and Systems Perspective Level 1: Autonomous DER Systems Level 3: Third Party DER Aggregation Level 2: Customer DER Management Systems Level 4: DSO – Distribution Utility Operational Analysis and Control for Grid Management and Optimisation Established Market, Commodity Products Fledgling Market, Limited Product Diversity Nascent Market, First Movers, Limited Functionality Incubation Stage, Concepts Understood, to be Practically Realised

13. LV Connected DER Management “DSO” Implementation Options Centralised – “master controller” collects resource configuration, status and measurements and executes actions (commands issued to DER fleet) as per DSO programs. Decentralised - Distributed intelligent DER controllers respond by “negotiation” in conjunction with “master controller” inputs and session management Hybrids of the above? Area of perceived development need is the respective “Objective Function/s” that would be invoked by specific scenarios – operational and strategic, and the respective algorithms/models that govern the DER responses

14. LV Connected DER Management Grid-Side Opportunities LV Network stabilisation units (combination of “STATCOM” capability combined with scaled energy source/sink) that operate as part of the DER management environment Intelligent edge-of-grid devices that operate as customer insulation mechanisms from LV Network quality-of-supply issues as well as enabling adaptive customer supply contracts and “DSO” interfacing to the CDEMS 22kV 230/400V LV Network Stabiliser Pseudo- STATCOM DSO Master 1 = “LV” Distribution System Operator Interface Integrated + Component based Solutions Opt-Out or Inactive based Customers

15. LV Community Grids Points to Ponder How will these micro-ecosystems develop? What are the prospective first mover or likely implementation scenarios? Considerations around the technology solutions and control system architecture? DER “network” communication options? Protection considerations? Opportunities for islanded networks? Other?