Digital Grid Unleashed - A Value Chain Facing Disruption

Transcript

Slide 1: Digital Grid Unleashed A Value Chain Facing Disruption

Welcome to Digital Grid Unleashed: A Value Chain Facing Disruption. This is the second in a series of
courses which offers recommendations for addressing the electrical distribution needs of a growing
worldwide population while simultaneously tackling today’s priority of decarbonizing global energy markets.

Slide 2: Welcome
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Slide 3: Objectives
At the completion of this course you will be able to

Discuss the challenges that the energy market faces as it steps away from a centrally managed, fossil-fuel-
dominated approach to distribution
Describe the benefits of distributed energy resources (DERs)
Identify different types of microgrids and the benefits of each

Slide 4: Energy Trilemma

Carbon dioxide emissions continue to increase to the detriment of society in many forms. One of the
difficulties faced is the imbalance between the competing aims of economics, politics and the environment
which form the trilemma of energy policy. The mission of the utility industry contributes to solving what the
World Energy Council calls the “energy trilemma”. It’s made up of three core components:
Energy security. It’s important to provide reliable power, and security of supply (no outages)
Energy equity: Affordability (cheap power), and universal access is key.
Environmental sustainability: Decarbonization of power systems is crucial.

This course will seek to address the delicate balancing act that must occur to aid in energy sustainability. To
understand where we are headed, we need to look at where we have been. We’ll begin with a review of the
traditional electric utility.

Slide 5: Traditional Electric Utility

The electric utility industry is traditionally defined as the set of 3 activities specialized in the power
generation, transmission, distribution and retail of electricity. The term “Utility” may also apply to adjacent
infrastructures like gas, water, district heating, which may operate as separate companies , or under one
single umbrella called a multi-utility company. This value chain is the legacy of the formation of large grids in
the 20th century, quite unchanged since then.

As we can see here, large centralized power plants on the left hand side, are connected to a transmission
grid backbone, shown by the towers. Power plants connected to the transmission backbone primarily run on
fossil fuels (coal, gas, oil), as well as with nuclear and hydro power. They can adjust their production
according to demand variations. Hence, they are called dispatchable units.

Slide 6: Traditional Electric Utility

The transmission system uses HV (High Voltage) or EHV (Extra High Voltage), in the range of 60 to 1200
kV to carry electricity over long distances in large energy amounts. Most of the infrastructure is using AC
(Alternative Current). DC (Direct Current) systems have complemented the existing AC backbone for very

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long distance, interconnection requirements, and sub-sea transmission systems. Large electro-intensive
industries such as oil and gas refineries, cement plants or infrastructures like railways are connected directly
to the transmission system.

Slide 7: Traditional Electric Utility

In the middle of the diagram is the interface between transmission and distribution, generically called a
substation (distribution substation in the U.S., primary substation in Europe, zone substation in Australia).
This substation typically feeds a city neighborhood with tens of thousands of customers. For example, the
town of Grenoble has approximately 200,000 inhabitants and is fed by 6 substations. The physical outlook
of substations strongly differs between geographies. This one is typically North American.

On the right hand side is the distribution utility perimeter, delivering electricity from the substation to the
customer meters over MV (Medium Voltage) and LV (Low Voltage) circuits for the last mile, in a one-way
power flow as shown by the arrows. Distribution circuits may be either underground cables or overhead
lines.

Slide 8: Traditional Electric Utility

Distribution connected customers may be residential, commercial or industrial buildings, connected either at
MV or at LV level depending on power demand. The distribution utility traditionally manages retail activities
with its customers, providing a bill based on a rather fixed rate structure: flat rate or variable rate (Time of
Use, peak/off-peak).

This is the way the utility industry was working until the late 20th century, when things starting to change.

Slide 9: Old Ways Make Way For New

This centrally managed, fossil-fuel-dominated approach of the past is being challenged. New technologies,
the rising influence of regulatory agencies, and favorable economics are all pushing the accelerated
development of clean, low carbon renewable power sources. That same drive for change is being reflected
in the way power networks are being designed and upgraded. But as executives and regulators alike are
finding, these new priorities have wide-ranging implications. Greater adoption of renewables, especially
solar and wind generation, pose challenges that are as significant as their benefits.

Slide 10: Old Ways Make Way For New

For example:

Once constructed, wind turbines and solar panels are “free” to fuel from an energy generation perspective
(i.e., no coal needs to be procured and burned to drive the turbines), which is likely the most significant
productivity improvement of this century. In the meantime, however, this advance could raise havoc with
traditional wholesale power market structures.

Slide 11: Old Ways Make Way For New

Major potential for improving the operational efficiency of the utility business models can be found in how
electricity is now being supplied. The more distributed nature of renewables is forcing new ways of thinking
about the architecture of the transmission and distribution grid first implemented 100 years ago. Today’s
market and grid organizations are simply not structured to sustain such a transition efficiently. Meeting the
challenge of a more distributed future will require distribution utilities to rethink technology investment
strategies and engage with their customers as partners.

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 Digital Grid Unleashed - A Value Chain Facing Disruption
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Slide 12: The Energy Market

The energy market is still figuring out how to manage pricing in this new environment. Both wholesale and
retail price structures need a revision to match the nature of the new resources to be incorporated into the
grid.

Aging infrastructure will drive grid modernization needs which includes an evolution to a hybrid environment
that includes both centralized and de-centralized power structures. Utilities are recognizing that a migration
to smarter grids is not a start-from-scratch process. It requires a reconfiguration — a reimagining — of
existing networks, which, in many cases, works reliably and in which capital investment has not been fully
depreciated.

Slide 13: From Distribution to Cooperation

In light of such disruption, distribution utilities are facing a necessary transformation. They are still
responsible for linking transmission grids to their customers’ meters. Now, they also must accommodate
increasing quantities of distributed generation and electric vehicles into systems never designed for two-way
power flows. This means transforming their previous role of wire manager into a more complex role of
resource planner and dispatcher, and market enabler – all duties that are much closer to those of a present-
day system operator. And such transformation will require an exponential increase in the use of data, for a
better understanding of real-time grid conditions. As a result, today’s utilities are evolving from managers of
large, long-lived physical infrastructure into managers of data-point digitized infrastructures.

Slide 14: The Power Grid

The power grid is a one of the most complex infrastructure ever built.

Since electricity cannot be stored, the transmission system operator has to constantly maintain the almost
perfect balance between generation and loads at all times to maintain system frequency (50 Hz or 60 Hz
depending on regions) as represented by the oscillating scale we see here. Any severe imbalance can
result in frequency collapse, and subsequently, a major blackout.

The legacy grid has been governed by mature rules of physics using the generators as the main resource
for grid stability: To put it in a simplistic way: Generation (left tray of the scale) follows load (right tray of the
scale »)

Those rules have to adapt to the future mix of resources connected to the grid:
Planned retirement of large conventional power plants
More inverter-based generators (wind & solar)
New loads connected through inverters (like EV)

This shift drives profound rethinking in the grid management: a shift towards more « load follows
generation »
New « rules of the game » for all stakeholders, called grid codes (or network codes in Europe)
New grid operation practices, leveraging capabilities of the new resources
Flexibility is the buzzword here

Slide 15: The 3 Ds + E — digitization, decentralization, decarbonization, and electrification

The new energy landscape redefines the whole energy delivery system, including electric utilities

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Energy is in the midst of significant transition as a result of what are known as the 3 Ds + E: decarbonization,
digitization, decentralization, and electrification. First D stands for Decarbonization which is about meeting
COP21 Paris agreement CO2 emission reduction targets. One of the solution is the massive integration of
renewable energy including solar. Second D stands for Digitization which brings a large variety of
technology enablers. Third D is Decentralization, which bears may facets, both technical and managerial.
Finally the “more Electric” part aligns with the predicted electricity consumption growth. World-wide
consumption grew by a record 3.1% in 2017. Emerging economies like India and China grew sharply, while
OECD/mature economies had limited if no growth.

Slide 16: The 3 Ds + E — digitization, decentralization, decarbonization, and electrification

Increasing electricity demand, widespread digitization, the advent of distributed energy resources (such as
renewable energy and microgrids), and the urgent need to rapidly decarbonize our energy system are
causing significant upheavals in traditional ways of doing business. One example of this is the sharing
economy, also referred to as meshgrid or transactive energy, enabled by blockchain. Another example is
Energy-as-a-Service, which help to conserve resources and reduce expense.

The demand for decentralized and decentralized electricity is only expected to increase as world resource
markets undergo seismic shifts — such as the arrival of autonomous electric vehicles, rapid advances in
clean technologies like battery storage, and the need to contend with the risks posed by climate change,
including business continuity disruption and natural resource depletion.

The 3 Ds + E have been driven by breakthroughs in technology and automation. The falling price of
technology is behind the penetration of renewable energy on the grid. The ability to improve energy
efficiency through technology is driving decarbonization. And connected devices, digitization, and IoT is at
the heart of it all.

Next, we will discuss the utility deregulation process.

Slide 17: 5 Utility Deregulation Process Models

One US survey found that 74% of consumers want to select their energy supplier. The utility deregulation
process is made of 5 different generic models.

1. The traditional vertically integrated model of “all under one roof” still persists in places, like U.S./South
East, Hong Kong, remote islands and territories. The percentage of electricity delivered by this model,
world-wide is 10%.

2. The single buyer model reflects the introduction of private companies (IPP: Independent Power Producer
or “merchant” generators in U.S.) in the power generation space (either traditional or renewable). This is still
the dominant model in the world in places like China, Egypt, and Thailand. The percentage of electricity
delivered by this model, world-wide is 40%.

3. Wholesale competition goes one step further, putting all generators at level playing field with the
introduction of a power exchange market place where power can be traded at different time horizons. This
market provides system-level savings by allowing participation of the least-cost generation resource at any

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 Digital Grid Unleashed - A Value Chain Facing Disruption
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given time. This happens in places like Brazil, U.S./California, Ontario/Canada. The percentage of
electricity delivered by this model, world-wide is 30%.

4. Retail competition allows customers to choose their electricity retailer from a variety of competing energy
providers. The retail market may be partially opened to competition or fully opened. Three of the countries
this happens in are Europe (EU-28+3), U.S./Texas, and Singapore. The percentage of electricity delivered
by this model, world-wide is 20%.

5. The nascent next-generation model called “Distribution platform model“ is in line with the emergence of a
very strong penetration of decentralized resources, enabling local transactions and local system operation.
It’s a seismic change in the way the grid is orchestrated, adding another significant layer of complexity. This
is why it is still at investigation stage to make sure that the new rules will preserve grid security and ensure
healthy business models for all stakeholders. This model can currently be found in places like Australia,
California, and New York.

In summary, we are still very far for total market deregulation, but changes are happening as a
consequence of the decentralization process. These so called “market reforms” do have major
consequences for all stakeholders

US survey source:
https://www.power-eng.com/2020/06/25/survey-finds-74-of-consumers-want-to-select-their-energy-
supplier/#gref

Slide 18: From Distribution to Cooperation

Smarter electricity grids will be vital to success, because they support tomorrow’s electricity-dependent
world. While centralized power generation will remain critical to grid stability for decades to come, distributed
energy resources (DERs), such as residential rooftop and community-scale solar arrays and storage, will
become important for energy suppliers and supporters of system stability.

Slide 19: Digitized Distribution Systems

The digitization of distribution systems will enable the greater connectivity required for a more flexible and
efficient control and transfer of electricity between:

Residential and commercial buildings’ switchboards and automated home devices.

Distributed energy resources (DERs).
Utilities operating distribution grids, regional and connecting systems and participating in energy markets.

Slide 20: A New Class of Resources Defined

Will this evolve?

Distributed Energy Resources (DERs) are energy resources, can provide similar services provided by
central generation, are expected to grow, and need to be properly managed. DERs are smaller-scale
sources of electricity generation. Unlike bulk-energy baseload and peaking power plants, which ship the
electricity they produce to local distribution systems over high-voltage transmission lines, DERS are
installed locally, within those distribution networks. Managing high penetration of DERs requires a business
transformation involving changes to utility policies, organization, business processes, and technology.

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 Digital Grid Unleashed - A Value Chain Facing Disruption
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Click to explore today’s most common DERs:

Disparate, small-scale rooftop PV panels and microturbines.

Electric vehicles that consume and charge back energy on the move.
The growing realm of energy storage, demand response and controllable loads.

DER source: https://gridbright.com/wp-content/uploads/2017/12/GridBright-Seminar-on-DERMS-at-2017-

CEATI-Conference.pdf

Slide 21: A New Class of Resources Defined

Distributed generation provides consumers with an option to buy their electricity from a retailer or to produce
it for themselves. However, connecting generation resources within distribution systems creates new
complexity for grid operators and requires increased flexibility and control capabilities. As a result, utilities
are now looking for digital solutions that can help them optimize existing grid assets and push the technical
limits of these growing sources of distributed power. In fact, as these resources produce power closer to the
load, they deliver broader value beyond just generating revenue to the owner, through distribution services,
reduced losses, risk mitigation, environmental benefits and economic development through local
infrastructure projects.

Slide 22: DERMS

The widespread adoption of distributed energy resources (DER) such as solar PV and energy storage,
energy-efficiency efforts, and declining asset utilization rates are simultaneously driving the industry to
reevaluate the way it manages the electricity network. Distributed Energy Resource Management Systems
(DERMS) are an emerging set of computer applications for managing DERs. A distributed energy resources
management system is a platform which helps distribution system operators (DSO) manage their grids that
are mainly based on distributed energy resources (DER). This software-based product promises to solve the
challenges of integrating more distributed solar, energy storage, demand response and other energy
resources on the grid -- and even to use these distributed energy resources to improve the operation of the
grid.

A platform is needed to manage a coordinated system with such diverse assets as solar, wind, energy
storage, combined heat and power, and conventional generators. Enter the distributed energy resource
management system (DERMS). With it, a utility can ensure power reliability with high amounts of DER,
lower costs, and create new value streams for other local utilities, their customers, service providers,
developers and site owners.

Slide 23: A New Class of Resources Defined

Intelligent network operations also hold the promise of greater customer satisfaction, which is becoming a
more important bottom-line contributor in today’s social media-driven environment. Distribution utilities are at
the front lines of the larger transmission and distribution network, and they bear the brunt of outage
complaints. Avoiding – or at least minimizing – outages and providing accurate, real-time information on
projected repair times and customers’ energy use can help utilities gain a reputation for responsiveness.

Currently, the market research firm IDC sees customer satisfaction as a challenge for many distribution
utilities, predicting that, by 2018 only one in five utilities will be capable of raising customer satisfaction

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scores by 10%. To better serve customers, many utilities are starting to invest in technology that delivers a
consistent experience across multiple platforms, from laptops to smartphones to call centers.

IDC FutureScape: Worldwide Utilities 2017 Predictions

Slide 24: The Rise of Communities & Microgrids

Today’s electricity grids are getting larger and smaller at the same time. The U.S. Plains & Eastern Clean
Line will carry wind-generated electricity more than 700 miles, from Oklahoma to Memphis, Tennessee,
when it starts operating in 2020. High-voltage direct current (HVDC) transmission technology is enabling its
astounding 4,000-megawatt capacity. At the same time, microgrids are now coming online to link onsite
DERs to local facilities on campuses, military bases and in housing and apartment developments. At certain
times, these systems can be “islanded” from the main grid and supply themselves with their own energy. In
the event of main grid supply failure, for example, they can maintain supply internally by carrying out load
shedding of specific resources to maintain their balance.

Slide 25: The Rise of Communities & Microgrids

Seamlessly disconnecting and reconnecting to the main grid without supply interruption of loads is a key
microgrid attribute. In addition to these independent operations, such systems can run in parallel with the
main grid to reinforce it. As a result, local power generation can be managed in line with local demand,
minimizing exchanges at the point of connection between the system and grid, thereby freeing grid
resources.

Microgrids can be classified by their connection mode to the main grid and their type of ownership. In
general, they fall into one of the four major categories. Let’s explore each one now!

Slide 26: Grid-Connected Facility Microgrids

Grid-connected facility microgrids

Connected to the main grid, these microgrids are created for improved reliability in places where main grid
reliability is not adequate, or when the utility is providing attractive price incentives for load shedding.

Some examples are high-availability, single commercial buildings, corporate research or business
campuses, hospitals and data centers.

Benefits of these installations include lower energy bills, an ability to integrate more renewable sources, and
improved resiliency.

The energy policy decision maker for grid-connected facilities is usually the site’s energy manager.
Supported by analysis tools, this individual typically makes choices that optimize the site’s energy usage for
improved:

Energy procurement, including energy purchases and negotiating of delivery contracts.

Energy consumption, with the ability to set priorities for the curtailable non-critical facility loads such as
heating, ventilation and air-conditioning (HVAC) systems (with notable exceptions such as hospitals and
data centers), fleet management of electric vehicle chargers, facility lighting control, etc.

The energy manager aims to optimize microgrid assets with assistance from the microgrid provider and a
commercial aggregator to:

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Utilize all practical and cost-effective means of local production (DERs) and optimize self-consumption.
Improve energy flexibility of the facility using a battery energy storage system.
Monetize energy flexibility through a commercial aggregator.
Benefit from advanced microgrid control that manages DER flexibility and reduces energy bills through tariff
management optimization.

The energy manager prioritizes investments and optimizes energy efficiency (minimizing kWh consumed)
and the kWh price. The site reaches new levels of optimization by self-consuming low-carbon, low-cost
energy when it’s available.

Grenoble’s LearningGrid, Europe’s First Technology and Educational MicroGrid Testbed

The LearningGrid project at Institut des Métiers et des Techniques (IMT), aims to create a local microgrid
across campus buildings to optimize energy performance, reduce consumption, train energy specialists and
empower apprentices to understand energy issues as part of their professional training. IMT serves more
than 2,400 students and the campus consists of 6 buildings, some of which date back to the 1960s, and
others built as recently as 2015. It's like a little city combining all typical businesses: a hotel, garage, bakery,
hair salon, restaurant, etc. IMT currently has an overall picture of its energy consumption, but it now wants
to control costs and measure when, where and how it consumes energy, in order to reduce its total costs by
30%, relying on 15% renewable sources and 30% from local production.

Schneider Electric is implementing the microgrid. A pooled management system of solar and cogeneration
production, storage and the buildings’ loads will interconnect the electricity grid and the district heating
network. At its heart will be a newly constructed 400 m² building - an "energy cockpit" to centralize all local
facilities.

IMT image attribution: http://www.terre-eco.com/view-projects/batiement-dapprentissage-a-linstitut-des-

metiers-et-des-techniques-imt-a-grenoble-38/

Slide 27: Grid-Connected Community Microgrids

Grid-connected community microgrids

These microgrids serve multiple consumers and producers, are connected to the main grid, or managed as
dispatchable units – or, with optimized power exchanges, with the utility’s main grid. They serve districts that
range in size from business campuses in cities to green villages to eco-districts or even small municipalities.
They offer multiple benefits, including the ability to optimize the cost of energy, ensure resiliency, and
integrate more renewable sources.

To run grid-connected communities, a new position is necessary: the district administrator aims to maximize
self-consumption with locally produced energy, while purchasing energy from the grid, if necessary.
Alternatively, when surplus energy is available, the district administrator can sell, store, or distribute it to the
sites. The district administrator also typically determines energy flexibility for the district, and selects
participation in attractive curtailment events through a commercial aggregator. This economic optimization
at the district level benefits all the district’s sites, the community, and the campus owners.

Slide 28: Off-Grid, Facility Microgrids

Off-grid, facility microgrids

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For off-grid microgrids, more public utilities and private entities call for tenders from private independent
power producers (IPPs). The IPP is an entity that is not a public utility, but which owns facilities to generate
electric power for sale to utilities and end users. These agreements typically include:

Engineering, Procurement and Construction (EPC), which includes all the activities required to bring
systems online, from design, procurement, construction, to commissioning.
Solution connections, including the microgrid system, decentralized energy resources, energy management
system, and electrical distribution.
Business model/funding, which could take the form of direct ownership as a capital expenditure, microgrid
as a service model, which would mean an operational expenditure, pay-as-you-go arrangement for small,
remote systems, community ownership through municipal bonds, or spark spread, which compensates
customers based on the difference between the cost of fuel and generation vs. the cost to buy electricity.

These are the most common type of microgrids today globally, and they are typically found in remote areas
not reached by the traditional grid. Examples include remote military bases, remote mines or industrial sites,
and isolated buildings such as resorts. The main benefits of these microgrids include high-reliability energy,
so customers avoid downtime, and integration of low carbon renewable energy to optimize both cost and
environment.

Slide 29: Off-Grid, Community Microgrids

Off-grid, community microgrids
These microgrids serve multiple consumers and producers, and are also found where the main grid is out of
reach — for example on islands or in remote villages and communities. However, unlike facility microgrids,
these initiatives encompass various community assets to guarantee resilient power for vital community
services.

The main benefits of these microgrids include a high percentage of renewable generation such as biomass,
solar PV, and wind power to minimize fuel dependency with the added benefits of minimizing pollution and
energy cost. Once they approach a certain size, off-grid, community-led microgrids experience constraints
that can be alleviated by microgrid optimization and management technologies.

Slide 30: The Challenges of Microgrids

Utilities must decide whether they will be early adopters of microgrid approaches, and in the process,
transform their business models more toward new customer-oriented services, or whether they will remain
on the sidelines of the microgrid movement.

Microgrids are forcing utilities to consider moving beyond their existing responsibilities in order to become
operators or owners of generation, storage, and load controls on the demand side of the meter.

Today’s active consumers seek to be citizens of this new electric world as well. Whether it’s through tracking
the output of their rooftop solar panels or following repair progress after an outage event, they are
demanding clear, real-time communications through multiple social and digital commerce platforms to
support new customer engagement initiatives to effectively cross-sell new products.

Slide 31: The Three I Approach

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IDC suggests that the most effective utility responses to such customer demands will be based on the
“three-I” approach, which includes:

Individualized – Meaningful, relevant communication to the customer that addresses each as an individual.
Instant – Power made available when it matters.
Interconnected – Power that is delivered through the most convenient channel for the customer in a
seamless manner.

All of these elements will profoundly impact the value chain by shifting where both consumers, producers
and prosumers will concentrate their resources in their attempts to maximize efficiency, reliability, and
resiliency, and reduce costs.

Slide 32: The Growing Role of Electric Vehicles

Electric vehicles (EV) may have the potential to reduce our dependence on oil imports for road transport, cut
national energy bills, reduce greenhouse gas emissions, improve urban air quality and noise pollution.
However, the impressive growth trajectories forecasted for electric vehicles, battery technology and
digitization presents unprecedented challenges on network topologies and supervision, in terms of how EV
charging infrastructures are deployed and the significant impact placed on energy systems. For example,
smart charging can provide services to utility grids to improve power quality and reliability. Even deeper
flexibility can also be unlocked through vehicle-to-grid (V2G) technologies for bidirectional charging. EVs
and digital innovations may also participate in energy efficiency improvements by coordinating charging
systems to grid capacities and limiting the needs for new lines and transformer stations. Indeed, EV
batteries offer the possibility of regulating the grid or smoothing out peak demand when used as energy
storage. This network "service" could be given economic value. Electric vehicles are a significant source of
flexibility in electricity demand.

Slide 33: Digitalization Impact on Utilities & Consumers

As digitalization of the energy world progresses, the amount and granularity of available data will make it
possible to develop a range of new commercial services. These include demand response, energy audits,
and home management programs, among other offerings, all of which are expected to generate sources of
new revenue for market players. The development of new services is dependent on consumers giving
consent to access their meter data and/or to install additional meters or other devices.

Slide 34: Digitalization Impact on Utilities & Consumers

Data security and privacy are critical issues in this consent. Consumers will only be comfortable providing
access to - and use of - their data if they are confident that their data is secure and that their privacy is
safeguarded. As smart meters are generally “imposed” and not always perceived as useful, suppliers and
distribution system operators (DSOs) must explain carefully why smart meters are needed. They must also
prove the added-value of the smart meter, explain how they will benefit consumers and, crucially, explain
how the data generated will be used.

Slide 35: Digitalization Impact on Utilities & Consumers

However, while utilities have considerable experience in meter readings, reporting financial data to
regulators, and using data to make investment decisions, dealing with more granular data generated by
smart grids and meters will carry a higher level of complexity. Mastering big data analytics will be crucial to

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make sense of the growing volume of data and additional layers of information about customer
demographics and individual/household behavior.

In addition, energy suppliers are not alone in this race and consumers are not waiting for them. Competition
is intensifying from all sides. Internet/telecommunications companies and security firms are offering home
energy monitoring and home automation solutions. Start-ups are exploring the market with home energy
management services and consumers are becoming market players, either individually (as prosumers) or
collectively (via community schemes).

Suppliers will have to proactively find their place in this new ecosystem. They will need to improve
operational coordination of activities, invest in data analytics and new IT platforms, recruit data experts and
develop partnerships with service provider companies.

In the next course in our Digital Grid series, we will further identify utility stressors and explore their solutions.

Before we close, lets take a look at a customer success story!

Slide 36: Success Story – Montgomery County, Maryland, USA

Montgomery County in Maryland is a sizeable government that found itself with an equally sizeable
problem. With 9,000 employees and 400 buildings totaling 9 million square feet, the Maryland
county has a budget as large or bigger than many states. Bordering Washington, D.C., with over 1
million people, the county represents 16% of the state’s economy. After a devastating storm caused
widespread outages, Montgomery County set out to find private partners to help mitigate the
impact of future disasters. Their goal was to increase resilience, upgrade electrical infrastructure,
and enhance sustainability — without upfront capital investment. The solution was to install
microgrids at two critical county facilities and Schneider Electric was selected after a competitive
bidding process. Montgomery County set out to solve its problems involving energy resilience and
an aging electrical infrastructure. But what the forward-thinking county achieved has implications
far beyond its own borders. It has offered up a model that could bring microgrid benefits to many
other communities nationwide. Explore the links for more on the amazing success of this resilient
customer!

Slide 37: Summary

Let’s review what we have learned in this course.

New technologies, the rising influence of regulatory agencies, and favorable economics are all pushing the
accelerated development of clean, low carbon renewable power sources
Meeting the challenge of a more distributed future will require distribution utilities to rethink technology
investment strategies and engage with their customers as partners
Smarter electricity grids will be vital to success, because they support tomorrow’s electricity-dependent
world
Microgrids can be classified by their connection mode to the main grid and their type of ownership
Grid-connected facility microgrids
Grid-connected community microgrids
Off-grid, facility microgrids
Off-grid, community microgrids

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 Digital Grid Unleashed - A Value Chain Facing Disruption
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Slide 38: Thank You!

Thank you for participating in this course.

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