Dr. Lawrence Jones

April 17, 2015

Zero – One : Building a Smarter, Flexible and Resource Agnostic Grid"

Vice President, Utility Innovations & Infrastructure Resilience

Alstom Grid, North America

World Bank

Washington, DC

Alstom Grid- 2014 –2

Alstom GroupOverview

Critical Infrastructure for Power and Transport

Transport

*Source: Annual Results 2013/2014Fiscal year ended 31 Mar 2014

Power Generation

Thermal RenewableGrid

92’800 employees; present in ~100 countries

COAL

WIND

On- and Off-shore

SOLAR

TIDAL

HYDRO

NUCLEAR

GAS

GEOTHERMAL

AC and DC

TRANSMISSION

SMART GRID

STORAGE

STREET CARS

AND TRAMS

METROS

HIGH SPEED

Alstom Grid- 2014 –3

Electricity Grid Today – Typically a One Way Road

Production PlantTransmission

Substation

Distribution

Substation

Medium & Small

Customers

Transmission Network :

• Transmission Control Room

• Real Time Energy Balancing

Large

Customers

Distribution Network :

• Distribution Control Room

• No Real Time Energy Balancing

Alstom Grid- 2014 –4

Drivers of the Global Power Industry Transformation

Time

Change

Technology Change

Social Change

Business Change

Political Change

From the book “Unleashing the Killer App” by Larry Downes/Chunka Mui

The Transformation is Multifaceted, Multidimensional and Complex

Alstom Grid- 2014 –5

Transformation of Value Chains-Evolutionary, Revolutionary, Exponential -

“Converging technologies offer new options for customers

but challenge the business assumptions of established companies”

Larry Downes, The Laws of Disruption

Alstom Grid- 2014 –6

Future CCPP Efficiency� towards the 65% and above technology cycle

Power Industry Policy Transformation

Making Trade Offs While Managing Risks and Uncertainty

Alstom Grid- 2014 –7

Disruptive forces are driving change

• Increasing renewable energy investments

• Price of natural gas

• Focus on Greenhouse gases

• Weather related outages

• Cyber Threats

• Distributed Energy Resources

− Declining PV costs

− DR-enabled thermostats, smart appliances

− Residential scale storage

− Microturbines

• Microgrids

• Big Data technologies

• Cloud Computing

• Your example here

Alstom Grid- 2014 –8

Smart Grid technology – the brain and the nervous system

Smart grid : a three-level architecture

Alstom Grid- 2014 –9

Flexibility and the Resource “Agnostic” Grid

Existing and new flexibility needs can be met by a range of resources in the electricity system – facilitated by power system markets,

operation and hardware.Source: Adapted from Harnessing Variable Renewables, International Energy Agency

Alstom Grid- 2014 –10

Pacific Gas & Electric (PG&E) demonstration to advance Synchrophasor Grid Monitoring

Alstom Grid- 2014 –11

Pacific Northwest Demonstration Project / USA

Alstom Grid- 2014 –12

Nicegrid – Europe’s First Smart Solar District

Alstom Grid- 2014 –13

Grid in 2011

South

Grid

South

West

North

East

Northeast

Till 1991

5 Regional Grids

5 Frequencies

October 1991

East & Northeast

synchronized

March 2003

West synchronized

with East & Northeast

August 2006

North synchronized

With Central Grid

Central Grid

World’s Largest

Syncronised Grid

255 GW

Aug’14

India’s Evolution to a Single Synchronized Grid

31st Dec’13

One Country

One Grid

One Frequency

Alstom Grid- 2014 –14

Cost of Resource Agnostic Grids in the Age of Hybridity?

<2 yrs 15 yrs 40+yrs 80-100yrs20 yrs

PRECEIVED USEFUL ECONOMIC LIFE vs. CAPITAL COST

www.alstom.com