January 2012 Capital Investment - National Grid

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Exhibit ___ (EIOP-19)Page 93 of 684Advanced Grid ApplicationsAdvanced Grid Applications (AGA) can be defined as the application of real-timemonitoring, advanced sensing, communications, analytics, and control, enabling thedynamic flow of secure, reliable, and efficient data and energy to accommodatecustomer choice, existing and new forms of energy delivery and use, from generationsource to end-user. These advanced devices and systems, deployed on the distributionsystem, are commonly referred to as Smart Grid technology, although the Company hasbeen applying devices with this technology for years. To date approximately 50% of thedistribution substations have remote monitoring and control capabilities and thispercentage is expected to continue to increase as the Company has a program to installnew RTUs in substations without them. In addition, RTUs are generally incorporated inthe scopes of projects driven by capacity additions or major asset replacement. Newprotection schemes utilize microprocessor relays in place of electo-mechanical relayswhich provide communication capability to retrieve records for analysis and informationon the system. On the distribution feeders beyond the substation fence through the linerecloser application program and a few distribution automation pilot projects, hundredsof new line reclosers and several line switches have been placed in service that areproviding remote information and control capabilities. As technology continues toadvance, the Company expects to apply advanced grid applications increasingly in thefuture to meet existing planning guidelines and regulatory performance requirements.The following are examples of Advanced Grid Applications that may be employed by theCompany:Advanced Distribution Automation - Advanced distribution automation will provideincreased information to monitor the operation of the system, improve reliability due toexpected smaller/shorter permanent interruptions and reduce switching times due toremote operation of automated switches. These improvements enable more efficientuse of existing system capacity and more timely investments in new system capacitywhen addressing outage exposure defined as a concern in system planning guidelines.Advanced Capacitor Control - New distribution feeder capacitor control capability isexpected to reduce system losses due to both peak and average power factorimprovement and lower system peak demand due to a flatter circuit voltage profile. Thiswill enable a potential delay in system upgrades due to normal and contingency loadingviolations. In addition, enhanced system voltage control is expected to reduceoccasions when system voltage performance is problematic to customers (ex. lowvoltage that might impact customer equipment performance). Initial application willutilize device local control strategies with communications utilized for system voltageperformance monitoring and operator control on demand.Advanced Grid Monitoring - System monitors applied at critical distribution locations(capacity bottlenecks, distributed generation sources, electric vehicle charginginstallations, etc.) will provide more (time stamped) data to monitor the operation/loadingof system equipment and to support first the evaluation and ultimately the widespreadintegration of Distributed Resources interconnections. As important, the additional datawill also support more timely investment in system upgrades due to normal andcontingency loading violations.Advanced Grid Applications Project Portfolio DevelopmentIV-17 1794
Exhibit ___ (EIOP-19)Page 94 of 684National Grid has developed a planning approach to be followed when considering theuse of Advanced Grid Applications within specific portions of its distribution system. Assuch, with the selection of a candidate location (group of feeders and/or substations),specific project scope and cost estimates can be developed. However, performancemetrics and benefits monitoring of actual installations are still required and will ultimatelyfeed into and refine our expansion strategy and modernization priorities.In order to move the Advanced Grid Applications (AGA) forward in a consistent manner,guidelines for the application of the grid modernization approaches are being developed.Collectively these guidelines are being referred to as a “reference model” which willdirect the planning and installation of AGA across the system.The reference model will define standard approaches to be used when installing AGAdevices, a few examples are listed below:• Guidelines on the planning analysis to be completed• Peak load and/or number of customers between automated switches• Standard capacitor bank size and control settings• Guidelines on feeder and transformer monitor installationAdditionally the reference model will provide guidance on the “standard” distributionfeeder to be built including:• Number of customers served• Peak design loading• Types of construction and wire size• Guidelines on capacitor bank locations (distances between banks, allowablevoltage rise, etc.)• Guidelines on the installation of stepdown banks and line regulators• Number and location of automated switchesIt is expected that the adoption of this reference model will apply mainly to newconstruction and/or areas undergoing significant rebuilding. The reference model will bea living document being updated as we learn more about how our system operates viathe enhanced monitoring and control AGA will deliver as well as adding newtechnologies into the model as they become available.Developing a plan to expand the use of AGA across the system is another key elementrequired to efficiently leverage the grid modernization process. The current thinking onthis subject is to use the new grid monitoring data combined with reference modelguidelines, feeder asset data, reliability statistics and other internal and external data tobuild a ranking model for all feeders across the system. This ranking model wouldidentify feeders and/or groups of feeders with characteristics that indicate the potentialfor significant benefit when AGA technology is installed. The creation of this model isIV-18 1895
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January 2012 Capital Investment - National Grid

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