2010921 digitaleurope white paper on smart grids

7/28/2019 2010921 DIGITALEUROPE White Paper on Smart Grids

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DIGITALEUROPERue Joseph II, 20 >> B-1000 Brussels [Belgium]T. +32 2 609 53 10 >> F. +32 2 609 53 39www.digitaleurope.org

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Brussels, 21 September 2011

DIGITALEUROPE White Paper on Smart Grids

1- FOREWORD

The implementation of Smart Grids is central to the development of the European Internal Marketfor Energy. The drive for lower-carbon generation, combined with greatly improved efficiency onthe demand side, will empower consumers to select their most innovative suppliers capable to offeroutstanding programs for energy efficiency.

Member States shall ensure the implementation of Smart Grids, not only to meet the Carbonemissions and renewable targets, but also to meet the energy efficiency target in which customerswill participate actively reversing the overall production to supply value chain.

To meet the objectives of aligning regulatory requirements with Smart Grids projectsimplementation by 2020 without barriers, a Smart Grids Task Force has been established inNovember 2009 to advise the Commission on policy and regulatory directions at European leveland to coordinate the first steps towards the implementation of Smart Grids under the provision ofthe Third Energy Package.

DIGITALEUROPE is one of 25 European Associations representing all European Stakeholdersthat are assumed to play a role in the implementation of Smart Grids.

DIGITALEUROPE has decided to participate actively in the Smart Grids Task Force through theparticipation in the 3 working groups that have been setup, the Steering Committee and the issueof the present position paper representing the position of DIGITALEUROPE members.

We believe that Grids cannot become Smart Grids without the paradigm shift to the new era ofEnergy Information Management. We believe that other manufacturing and Services sectors havebeen able to modernize themselves and become more consumers oriented when they becamedigitalized. DIGITALEUROPE believes in the equation of Smart is Digital and Digital is measuring,predicting and monitoring in real time the Energy we want to save and use as a precious resource,not anymore a commodity.

Maher ChebboDIGITALEUROPE Smart Grids Working Group Chairman


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2- SMART GRIDS CHALLENGES

2- 1- The third Energy package includes several exit options making its implementation

challenging for Smart Metering, but new communication on Smart Grids and Energy

Efficiency.

The Electricity Directive 2009-72-EC of the 3rd energy package states:

- The internal market in electricity, which has been progressively implemented throughout theCommunity since 1999, aims to deliver real choice for all consumers of the EuropeanUnion, be they citizens or businesses, new business opportunities and more cross-bordertrade, so as to achieve efficiency gains, competitive prices, and higher standards of service,and to contribute to security of supply and sustainability.

- Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003concerning common rules for the internal market in electricity has made a significantcontribution towards the creation of such an internal market in electricity.

- However, at present, there are obstacles to the sale of electricity on equal terms andwithout discrimination or disadvantages in the Community. In particular, non-discriminatorynetwork access and an equally effective level of regulatory supervision in each MemberState do not yet exist.

- A secure supply of electricity is of vital importance for the development of Europeansociety, the implementation of a sustainable climate change policy, and the fostering ofcompetitiveness within the internal market. To that end, cross-border interconnectionsshould be further developed in order to secure the supply of all energy sources at the mostcompetitive prices to consumers and industry within the Community.

- Member States should encourage the modernisation of distribution networks, such asthrough the introduction of Smart Grids, which should be built in a way that encouragesdecentralised generation and energy efficiency.

- It should be possible to base the introduction of intelligent metering systems on aneconomic assessment. Should that assessment conclude that the introduction of suchmetering systems is economically reasonable and cost-effective only for consumers with acertain amount of electricity consumption; Member States should be able to take this intoaccount when implementing intelligent metering systems.

- In order to promote energy efficiency, Member States or, where a Member State has so

provided, the regulatory authority shall strongly recommend that electricity undertakingsoptimise the use of electricity, for example by providing energy management services,developing innovative pricing formulas, orintroducing intelligent metering systems orSmart Grids, where appropriate.

- Member States shall ensure the implementation of intelligent metering systems that shallassist the active participation of consumers in the electricity supply market. Theimplementation of those metering systems may be subject to an economic assessment ofall the long-term costs and benefits to the market and the individual consumer or whichform of intelligent metering is economically reasonable and cost-effective and whichtimeframe is feasible for their distribution. Such assessment shall take place by 3September 2012.


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- Subject to that assessment, Member States or any competent authority they designateshall prepare a timetable with a target of up to 10 years for the implementation of intelligent

metering systems. Where roll-out of smart meters is assessed positively, at least 80 % ofconsumers shall be equipped with intelligent metering systems by 2020.

- The Member States, or any competent authority they designate, shall ensure theinteroperability of those metering systems to be implemented within their territories andshall have due regard to the use of appropriate standards and best practice and theimportance of the development of the internal market in electricity.

- The Exit options in the 3rd Energy Directive have left some flexibility to the member Statesnot to run the projects recommended by the directive. We would need to assess each ofthese exit options in order to conclude whether more mandatory statements would beappropriate now.

Beside the 3rd energy package that has been adopted in August 2009, the EU has made keycommunications to the Member states targeting Smart Grids and Energy Efficiency:

Task Force for Smart Grids report, November 2009 June 2011 European Infrastructure Package, November 2010 and October 2011 Communication on Smart Grids, COM(2011)202 - 12 April 2011 Energy Efficiency Action Plan and revision of ESD in June 2011

The Smart Grids Task Force where 25 European Associations were representing all the marketstakeholders let to 3 reports, functionalities of Smart Grids, data handling and privacy, roles and

responsibilities and funding of Smart Grids.Following the Mandate M441 that was executed by CEN/CENELEC/ETSI together with the SmartMetering coordination group (SMCG), The Smart Grids Task Force provided another mandate toCEN/CENELEC/ETSI M/490 that worked between June 2010 and March 2011 on the production ofa preliminary report addressing standards for the Smart Grids.

2- 2- The Security of supply should be maintained despite more embedded intelligence in

the Smart Grids

It should be recognized that the current Grid in operation across the EU today is seen as stable

and secure. So as the Smart Grid of the future gets deployed, the security of supply must bemaintained. From DIGITALEUROPEs perspective, two main elements to this issue will need to beaddressed:

Renewable Energy sources: As more and more renewable energy generation sources getconnected to the grid, the issue of what happens when these sources go offline (say due to lack ofwind) has to be addressed so that security of supply can be maintained. Thus more complex andalmost real time demand/response systems will need to be deployed within the Smart Grid in orderto predict such events and/or mange such an event when it happens.


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Reliability of the infrastructure: As more distributed intelligence is deployed within the Smart Grid,

then the reliability of the systems to deliver this intelligence must be adequate. Again technologiesand methodologies exist today to ensure the reliability of such systems, by implementingredundancy components, backup systems etc.

2- 3- European market deregulation has been costly and still painful to implement while

Smart Grids future investments should happen

European Energy market is open since July 1st 2007 for commercial and industrial customers (wasthe case in several countries before July 1st) as well as residential customers (new). The newunbundling and market liberalization requirements led to new challenges:

Fitting with the compliance requirements: Management of the regulated market flows, unbundling

and energy settlement. This required important investments from European Utilities to separatetheir IT systems and make for instance a clear distinction between Distribution & Metering,Metering, Data aggregation and Retail & Metering related roles.

Better knowledge of end customers: definition of marketing attributes customer segmentation anddefinition of categories of risks.

Differentiation through innovative products: through flexible rates, time of use billing, smart meters,revenues management and credit and collections.

Differentiation through improvement of customer relationship: management of the whole customerlifecycle using a consistent practice to satisfy customer needs and continuously provide value

added services.2- 4- The integration of many renewable energy sources creates Grid instability

The electricity grid of today was designed to ensure power flow from centralised sources to fixed,predictable loads. This grid topology and operational logic makes it impossible for the grid toaccept massive input from a myriad of distributed energy resources, including renewable.

Most renewable energy sources such as solar and wind power are intermittent in nature,depending on natural phenomena. Thus, in order to absorb renewable energy resources, the gridwill require integrated monitoring and control, with substation automation, to cope with differingenergy flows and plan for the necessary standby capacity. 'Smart grid' capabilities will facilitate bi-

directional power flows and monitor, control, and support these distributed resources, facilitatedemand-side management and improve information flows so as to improve integration.

For homes and businesses owners smart grid therefore represents an opportunity to install theirown renewable sources of energy.

Microgeneration: Some homes and offices are finding it more cost-effective to produce electricitylocally, using small-scale energy-generation equipment. These devices include renewable devicessuch as photovoltaic, and solar thermal as well as non-renewable devices, such as oil- or natural-gas-fired generators with heat reclamation.

Microgeneration technologies are becoming more affordable for residential, commercial, and

industrial customers. Depending on the technology type and the operating environment (location,utilization, government or state subsidies), they can be competitive against conventionalgeneration, and at the same time reduce greenhouse gas emissions.


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Microgeneration technologies, combined with a Smart Grid, will help consumers become an activepart of the grid, rather than being separate from it and will integrate with, not replace, central

generation. In addition, a Smart Grid would allow utilities to integrate distributed generation assetsinto their portfolios as virtual power plants.

Without a smart grid, high penetrations of variable renewable resources (e.g. wind or solar) maybecome increasingly difficult and expensive to manage over time as they penetrate to high levelsdue to the greater need to coordinate these resources with dispatchable generation (e.g. naturalgas combined cycle) and demand.

2- 5- The migration to Smart Grids will require a lot testing while networks are operating

The challenge of Smart Grids enhancements and introduction of new systems is the onlineconditions. The introduction of changing processes and services should occur while the

dispatching networks and Electricity supply should stay operational in real time. This challengeleads to a higher cost of investments where the following tests have at least to be considered:

Testing new technologies standalone,

Testing the introduction of new technologies in a shutdown network,

Testing the introduction of new technologies in a running networks at a small scale,

Testing the introduction of new technologies in a running networks at a large scale.

2- 6- The Smart Grids projects will take many years to connect and communicate smoothly

the T&D network information

At the highest level, todays grid is operationally and functionally divided into two large systems:the transmission system and the distribution system, each of which has multiple subsystems.

In general, each of these subsystems has its own specialized rules for exchanging data within thesubsystem. These data exchange rules are known as communications protocols or simplyprotocols.

Because these different devices speak using different communications protocols that are notdesigned to communicate with each other, they essentially function as information islands, andthus it is very difficult to integrate communications across systems or to correlate data fromdifferent systems and devices.

Smart grid technology must connect disparate networks and information islands describedabove.

The smart grid depends upon fast and free exchange of data among all components of the smartgrid from generation plants to substations home and business meters.

Connecting data from all these systems mandates adoption of a common communication protocolso that all systems speak the same language.

Smart Grids end to end internet like communication to ensure that all systems cancommunicate freely is undoubtedly the most scalable and flexible approach to building the

foundation of the Smart Grids.


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3- ENERGY INFORMATION MANAGEMENT ENABLED BY ICT IS THE NEXT ERA OF

ENERGY MANAGEMENT WITHIN SMART GRIDS

3- 1- The benefits of ICT in integrating the overall smart grids value chain

The ICT industry has a substantial role to play in reducing global greenhouse gas emissions.(While the industry accounts for about 2% (0.5 Gt CO2) of global emissions today, it has thepotential to account for about 10% of the overall CO2 reductions by 2020, through smarterbuildings, logistics, industrial processes and smart grids).

By 2020, emissions from the ICT sector will represent an estimate of 2.8% of total globalemissions, but ICT will help other industries and consumers avoid an estimated 7.8 gigatonnes ofCO2 emissions by 2020. That is 15% of predicted total global emissions or five times ICTs ownfootprint11. Of the reductions that can be achieved through the ICT industry, smart grids are the

main contributor with about 25% globally. Reports in other regions of the world estimate that smartelectric grid could reduce carbon emissions from the utility industry by 12 % and reduce usage bythe same amount2. As the grids in Europe are more advanced than in other parts of the world, theCO2 abatement potential is a smaller fraction of the overall effect. However, even in countries likeGermany, Smart Grids will account for over 10% of the national ICT-enabled CO2 reductions.

Smart grids enable CO2 reductions in a number of ways. The most important of these have beenlisted below:

Increasing end-user awareness leading to lower consumption: As smart meters canprovide more accessible, accurate and timely information on energy consumption and CO2emission through digital displays, this motivates end-users to conserve energy and reduceemissions.

Demand side management: Through demand side management load can be shifted inreal-time to times when weather-dependent renewable energy sources like wind and solarproduce most electricity. In addition, energy consumption can actively be reduced, e.g. bydimming street lights, A/Cs during CO2-intensive peak-loads.

Integration of renewable energy sources: Smart grids are a key enabling technology fordistributed energy sources, as these enable two-way communication and management offluctuating loads in the grids. Distributed energy sources typically have a high percentage ofrenewable energy, e.g. solar.

Integration of e-cars: Similar to renewable, smart grids also enable integrating a large

number of e-cars into the electricity network. The batteries of e-cars act as storage devicesin the electricity network and feed into the network during peak loads and can be chargedduring high availability of weather-dependent renewable. This again increases the usage ofrenewable energy. There are currently significant e-car targets in Europe, e.g. Germanyhas a target of 1 million e-cars by 2020.

Improved monitoring and loss reduction in the network: Through advanced sensorsand supporting ICT systems (e.g. self-healing systems) technical energy losses and relatedCO2 emissions can be reduced.

Optimization of power plant fleets: Through improved definition, measurement andanalysis of key performance indicators in existing power plant fleets in the electricitynetwork, significant energy and CO2 reductions can be achieved.

1Smart 2020 Report

2Report from the Department of Energys Pacific Northwest National Laboratory (PNNL)


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Other Benefits of Smart Grids

A smart grid provides combined benefits for both utility companies and end customers.

For uti l i t ies, these are real ized throug h sim pl i f ied operat ions that help:

Increase reliability of the energy system and enhance preventative maintenance throughimproved monitoring and diagnostic capabilities.

Reduce the cost of energy transmission and distribution through better demandmanagement.

Reduce the cost of excess capacity and storage.

Integrate other distributed energy sources, minimizing.

The need to invest in additional generation and capacity extension projects.

Reduce risk by improving security and resiliency of the grid.

For energy cons umers and end custom ers, the benefi ts are:

Lower energy bills.

Reduction in network outages and disruption.

Better control over energy consumption through better visibility into usage patterns.

More choices for energy sources along with options to supply energy to the grid.

Helping make green choices to increase environmental sustainability

3- 2- Need for ICT in the implementation of Roles and Responsibilities of the stakeholders,

the unbundling processes and the data exchanged

Europe is fully liberalized since July 1st 2007. Unlike the majority of the regions in the rest of theworld, new roles and responsibilities have been defined in European member States following theunbundling regulations:

For Consumers: becoming Prosumers which is a more challenging role to be managed byRetailers.

For Distributors (and Metering Operators): Grid Operator and Grid Access Provider,Metering Point Administrator, Meter Data Aggregator etc,

For Retailers, Balance responsible and Balance supplier are new well defined roles.

There is no question that more ICT technology and solutions will have to be deployed in the futureSmart Grid. One issue that has been raised is that the deployment of ICT will be costly, and thusit is perceived to run counter to delivering value to the end customer.

The investments in ICT will certainly increase, but as has been demonstrated by the ICT sector,the cost per transaction is continuously decreasing year on year, based on Moores Law and software innovations.

The increased ICT cost will also be balanced by the cost reductions that these ICT investments willdeliver, either by providing off the shelf components to deliver manufacturing scale benefits and

by providing new savings related to better reliability and predictability within the entire Smart Grid.


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The deployment of new Smart Grids technologies and their optimization will naturally depend onthe consistency of the regulations and on the costs decrease due to standardization. Depending on

the roles and responsibilities devoted to the different stakeholders: DSOs, retailers, aggregators inthe deployment of energy efficiency, the solutions, their return on investment and their impact onthe customers behaviour could differ quite significantly; the speed of generalization could also varyfrom one solution compared to the other.

In this context, the rules addicted by the regulatory authorities will have a decisive influence on thedifferent scenarios and on the effective deployment of energy efficient solutions. For example, anapproach solely focused on metering to drive cost reduction at the DSOs level does not give apositive signal to use the opportunity of Smart metering systems for energy efficiency at thecustomers home and might not fit with the Retailers business case.

3- 3- Need for new ICTs required technologies and devices for Smart GridsMuch of the focus to-date in relation to new devices & applications have been focused on thedeployment around Smart Meters. A lot of innovation has happened in this area in the past fewyears and this is set to continue. As international recognized standards on the minimumfunctionality and communication(s) interface to Smart Meters become established, then multiplenew innovations and business models will evolve. The net result of this will be the introduction ofnew intelligent agents, devices and services which will provide a range of different possibilities fora consumer to better interact with the Smart Grid of future.

Multiple new services will be offered, either self-contained to operate within the home, or hosted bya trusted provider in a data center or a combination of both. Energy Service companies will offer

numerous such services and will compete based on the service and functionality they provide. Theservices they offer will be based on new business models that will evolve as these companiesapply business intelligent to extract value from the data that will be generated and processed in theSmart Grid.

The consumer will be able to choose if their interaction will be manually controlled or semi-automatic, managed by an intelligent agent executing a role & profile as defined by that consumer.

Consumers of the future will also want to interact with their energy management system viamultiple interfaces, selecting the one that works for them. They may want to interact via adedicated console type screen in their home, or via an interface provided in their TV/media set-top

box or via their computing device; either this is a phone or PC/laptop.Thus new applications, new devices and usage models will emerge as innovation and businessmodels compete to offer the best service to both business and consumers.

Regarding the physical and logical components that interconnect the Transmission and DistributionInfrastructure of the grid to enable the common communications fabric, the information needs to beaccessible and secure and communicated across the fabric. From a product and technologystandpoint, this is delivered by ruggedized Integrated Services Routers, hardened Catalystswitches, and integrated security and software services that are used across the primary places inthe network utility framework, e.g.:


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- Substation automation/integration (SA/I),- Neighborhood area network (NAN),

- Business area network (BAN),- Home area network (HAN),- Computing.

It is essential to shape and drive future ICT infrastructure in such a way that they provide therequired features, functions and services to the future Smart Grid. In this context, the FutureInternet Public Private Partnership (PPP) has recently been launched3 by the EU Commissioner forInformation Society and Media to address this issue in an even broader scope. The PPPs focus isto initiate and establish cooperation between the industries from different sectors to drive EuropeanICT R&D in such a way that a variety of application areas will be enabled. Smart Grid is one majorapplication area there.

As a first step of this PPP an FP7 ICT Call will be published in July 2010 which - amongst others -calls for a project to analyze the ICT requirements from an application areas / Smart Gridsperspective in detail and to prepare for large scale pan-European pilots/trials. As a preparation forthese activities and for further fostering the interaction between ICT and Smart Grid stakeholders,the so-called Smart Grid Stakeholder Group has recently been founded as part of the EuropeanFuture Internet Community4.

3- 4- Role of ICT in Customer Privacy and Energy Data handling that need to be managed

without risk as other Services sectors successfully secured it with ICT help

The introduction of digital and remotely accessible sensitive data is a horizontal issue forinformation security and privacy. Data visibility, criticality and privacy management will increase inSmart Grids. We can enumerate the following list of data:

Customers data (could be critical for customers): personal address, consumption profile,billing, payment, commercial,

Energy data (could be critical for customers): customers consumption and powerproduction, hourly or fraction of an hour based,

Metering technical data (not critical for customers),

Network and assets data (not critical for customers).

Solid Solutions accepted by all stakeholder groups are required to ensure acceptance levels andtrust in the system the solutions also need concepts to prevent and react to increasing fraud. It isundisputed sensitive and private data exists within the entire Smart Grid infrastructure in alldomains, on all system components, those are interconnected through networks. Additionally -increasing penetration of smart grid solutions in Europe will also increase the threads and risk offraud and cybercrime the weakest element in the chain determines the security levels achievedby the Total system.

3http://ec.europa.eu/information_society/activities/foi/library/docs/nk-valecia2010_en.pdf

4http://initiative.future-internet.eu/home.html


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When considering system availability and functionality, it should be ensured that a failure of the ITinfrastructure required to process the business between Energy Services offerings and Prosumer

participation in Smart Grid (e.g. through DoS attacks) will not result in shortage of energy provisionor supply (feed) options. However, failure of this infrastructure will not result in loss of Energy yetthe impact should only be the inability to participate in the incentive schemes. This must beclassified as a major impediment to the E-Energy business process and to contract compliance.The information security needs to be robust with regard to possible attack scenarios (denial ofservices) at any given time.

Special focus need to be on the meter gateway and the meter - as well as for other decentralisedICT infrastructures in the distribution net- for data protection and potential for attacks towardssystem availability because both domains are to be considered publicly accessible in mostregions of the world. With remote access for System administration, automatic updates and system

maintenance (onsite or remote) additional Risks need fencing fraud discovering solutions.

The use of modern technologies e.g. smart cards would enable a separation of security betweenthe installed system components and the increasing demands concerning the required encryptions,authentications and signatures of information in the E-Energy services and processes. Thesustainability this would achieved offers "investment protection" through flexibility in the installedsystem components the digital, remotely readable meter and the energy manager it also wouldfacilitates the long-term required introduction of an additional, contract-dependent encryption.

The existing trust in such technologies should be utilized as it provides implicit confidence in SmartGrid services and offerings ICT solutions are enabler to solve those horizontal issues. ICT

Systems are considered trustful i.e. in the Telecom or Banking sector. The usage of trustedsolutions like Smart Card at the Prosumer and Smart Meters deems best also in case existingkeys have been compromised - they allow e.g. the exchange of encryption keys rather than thesystem component.

In the future unbundled world, business partners are to "purchase" and/or "sell" services (forconsuming/supplying) from energy service providers on the open market. To ensure protection ofthe sensitive data for this scenario, a contract-dependent encryption deems required. This in factwill require "customized encryption" tied to the individual prosumer, to protect sensitive business orcontrol information in a really open market.

Digital Europe recommends defining the framework of a trustworthy overall system and whichwould satisfy the requirements concerning all aspects of Information security and privacy in theyears ahead. Analysis of different object grid cell scenarios has shown that current concepts and"best practices" of system components do NOT provide long-term protection against attacks and/orprivacy.


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3- 5- How 3rd energy package has been disseminated in Europe as Smart Metering or Smart

Grids programs?

3- 5- 1- UK

The UK government has decided to substitute all 50 Million Dumb Meters by 2020 through SmartMeters. The UK Department of Energy Climate Change (DECC) has initiated a Consultationeffort asking all stakeholders in the UK Utilities Market for advice and guidance on how to achievethis endeavour in the most optimal way. Beside the challenges coming from the implementation ofAMI (Advanced Metering Infrastructure) and Smart Grids in itself, one has to take into account thatUK runs a very special deregulation model that is quite different from models of other markets. Inthe current situation of planning for the Smart Grid and piloting first AMI Systems experts involvedare recognizing a couple of major challenges:

Minimal configuration standards need to be in place for Smart Meters making sure that the AMISystem works well for all vendors whos Smart Meters are compliant to that Standard.

Deploying AMI Systems for the Point of Delivery (Mater) of all customers per Supplier would limitthe benefits of the Advanced Metering Infrastructure for 2 reasons:

Regional Demand Management would not be possible, a severe disadvantage relative to theimplementation of a Smart Grid.

UK is well known for its relative high churn rate of customers switching to another supplier. Thisswitching process would be complex since with each switching process a different AMI Systemwould have to be made responsible for the Smart Meter and the associated PoD.

The independency of the roles of Meter Asset Ownership and Meter Operations in the UK marketincreases the process complexity and the needs for Standards.

The UK Government BERR report (Impact Assessment of smart metering Roll Out for Domesticand Small Businesses, April 2008 ) indicates smart metering solutions can provide further benefitse.g. : via accurate billing of customers for energy used, improved energy network managementallowing better informed investment decisions, facilitation of wider policy goals such as policy onenergy efficiency measures, improved customer services and reducing complaints and reduction incosts of pre-payment meters.

3- 5- 2- Franc e

The CRE has published on 6th of June 2007 a "communication" which specifies the guidelines tofollow for counting low voltage power less than or equal to 36 kVA.

The main objectives of the Smart Metering system for CRE are:

facilitate the opening of the electricity market;

improving the performance of the distributor;

improved control of energy demand;

increased customer satisfaction


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The CRE in 2008 prepared a draft decree on the counting of electricity which, in particular, sets thetimetable for deployment of smart meters (50% for end 2014, 95% for 2016). The draft decree was

passed by the CRE in the administration (1er trimestre 2009) (Q1 2009). The deployment is 35million meters are planned to be deployed in 5 years = 35 000 meters per day soit en moyenne 1500 compteurs / jour pour chaque unit CFan average of 1 500 meters / day for each unit FC.According to Commission de Regulation de lEnergie (www.cre.fr), the primary benefits of smartmetering include several aspects. The competition will improve through more competitive tariffs.Supplier switching where smart metering is deployed (50% instead of 5% without smart meters) isexpected. Decrease of non-technical losses i.e. non-technical losses avoided is estimated to be50% instead of 2.5% without smart meters.

An up to 5% decrease of residential consumption is expected. Peak shaving will result in avoidingunnecessary investments, avoiding use of non-optimal resources and decrease CO2 emissions

from 0.5% (without smart meters) to 5% (with smart meters).

3- 5- 3- Nether land s

The Netherlands has approximately 7.5M household with an electrical connection andapproximately 6.9M with natural gas. Of these households, more than 95% are connected by oneof three DSOs (Alliander, Stedin & Enexis).

The deregulation of the Dutch energy market started in July 2004 when, by law, consumers could

choose their own energy supplier. In July 2007 the WON law was adapted, stipulating thatNetwork companies must be separated from Energy companies. This was to be completed by Jan.2011. At present, two of the three largest DSOs are independent companies: Alliander & Stedin.

Additionally the (state owned) TSO Tennet was given control over all electricity networks of 110 KVand higher.

The roll-out of Smart Meters became mandatory by law in Sept. 2007; the DSOs becameresponsible for 100% rollout by 2013. In July 2008, after increasing doubt about privacy, securityand efficiency, the mandatory roll-out was suspended by Parliament. Currently Smart Meterplacement is mandatory only for large scale construction and renovation housing projects. Atpresent an approximated 250,000 Smart Meters have been deployed.

Renewable energy, both for Industry (mostly) and Consumers, is stimulated by the SDEprogram which has for 2010 a budget of over 2B. The SDE budget for small PV panels (for

Consumers) is 69M and is already allocated.


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3- 5- 4- German y

The growing demand for energy, the scarcity of raw materials, the climate change are raising newproblems, which todays electricity systems cannot cope with. New integral Systems Solutions arerequired in which modern information and communication technologies will play a major role.

The German Ministry of Economy &Trade together with the Ministry of the environment initiated anR&D programme, which will run for a 4 years term and receive an overall budget of 140mio (50%sponsored by Industry). The projects will demonstrate best practises in 6 model regions,implementing Smart Grids Solutions for an Internet of Energy for the first time. The efficiency ofpower grids in Germany is to be enhanced through the use of modern information technologiesand further more additional funding aim at the integration of electric vehicles on the base of thoseresults.

The Programme is called E-Energy smart Grid made in Germany it is vital to ensure theextremely high availability and stability of the German Power Grid, in spite of ambiguous Germanplans to strongly increase the integration of volatile and renewable and often decentralise Energysupply. There is an accompanying research funded to ensure commonalities, interoperability aswell accelerators are identified to trigger strong follow up investments in Smart Grids. Also theregulatory and normative framework is looked at, e.g. resulting in a German standardisationroadmap for Smart Grids it is developed in the Center of Competency for E-Energy at the nationalIEC/CENELEC standards organisation

The objectives are:

smart Grid is essential to solving the energy and climate problems through transitions tosmart generation, smart storage, smart distribution and smart consumption (bothcentralised and decentralised);

create new jobs and open new markets through the integration of information technologiesand digital organisation of technical operation and business processes;

speed up innovation process by creating multi-disciplinary and multi-sector structures (e.g.a center of competency was established in the German organisation of IEC/CENELEC;

enable a paradigm shift in the electricity (and other utilities) industry integrationdecentralised energy supply and bidirectional distribution grids to allow demand sidegeneration (Consumer oriented generation but also "generation oriented consumptions" inpractical applications.

ICT solutions are a key factor - integrated solutions are to be created in the model regions;


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4- SMART GRIDS DIGITALEUROPE (SG-DE) RECOMMENDATIONS TO SG-TF REGARDING

3RD ENERGY PACKAGE [ACTIONS TO BE UNDERTAKEN]

4- 1- DIGITALEUROPE recommendation 1: scalable minimum requirements of Smart

Grids per category of connected generators and demand

Minimal Smart Grids functionalities and technologies involved: available technologies,needed R&D, standards, regulations, time to market, affordable costs/benefits.

Smart Grids functionalities should be defined as scalable stages of services that have aspecific cost of deployment and ROI associated.

We recommend to have the following stages per order of complexity:o Smart Grids stage 1 : for todays consumers,o Smart Grids stage 2 : for tomorrows prosumers,o Smart Grids stage 3 : connecting the world of Renewable and Electrical Vehicles,o Smart Grids stage 4 : connecting a whole member State country,o Smart Grids stage5 : connecting Europe

ICT industry represented by DIGITALEUROPE can define the IT framework standard

solut ion accelerat ing the deploym ent of SmartGrids, optimizing the Capex investments and

meetin g timely th e EU 2020 targets .

4- 2- DIGITALEUROPE recommendation 2: Consumer protection, privacy and trust in using

new services as a continuous regulation lifecycle management managed by a Global

Database

We consider that other services industries like Telecommunications, e-Banking, Mobility,eCommerce and internet for end consumers are as critical as Utilities in terms of data handling,security and customers protection.


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We recommend to investigate and to implement the best practices of regulations developed forother critical sectors in the context of SmartGrids.

Since regulations will continuously evolve to fill in the security and privacy gaps, ICT indu stryrepresented by DIGITALEUROPE can help creat ing a National, European and Global

Database for handl ing regu lat ions chang es, the securi ty and privacy iss ues as wel l as the

appropr iate solut ion s.

4- 3- DIGITALEUROPE recommendation 3: Roles and responsibilities of each stakeholder

and recommendations

The 3rd energy package mentions roles and responsibilities at a high European level while theunbundling market structure in Europe has been specific to each member State rather thanEuropean standard. At this stage, it will be hard to harmonize EU27 with one single marketstructure. However, we can relatively easily harmonize the last mile to the customer, driven

by the Suppliers and Retailers relationship with the end customers by creating a pan-

European Retail Market. A Common European Energy Retail Market will facilitate the

procurement and sales of power anywhere in EU27, will empower end customers to make

wide choices among EU27 as they do in the Telecom sector today.

ICT indust ry represented by DIGITALEUROPE can help bu i lding a Common pan-European

Retai l Market based on standard communicat ion solu t ions and standard energy eff ic ient

services to end cus tomers. A large scale demonstrator for 10 dif ferent cou ntr ies within

EU27 should be the ini t ial step prior to a ful l deployment.


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5- ANNEX 1: SMART GRIDS PROGRAMS IN OTHER COUNTRIES OUTSIDE EU

5- 1- 1- Japan

Japan is aiming at reducing CO2 emissions by 25% compared with the level in 1990.

As for the "smart grid," the next-generation power distribution grid, Japanese administration will besupporting it financially as soon as possible.

Japans existing electricity network is already considered to be reliable, and so Japan's objective ismore focused to enable further introduction of renewable energy and create a new infrastructurefor EVs and new services through the utilisation of smart meters and ICT network.

METIs 2009 projects included a Remote Island Smart Grid Project (micro-grid project), a SmartCharge Project (with a focus on EV), and a Smart House Project (an element of Community

Grid system). In November 2009 a discussion forum was established, involving a wide range ofstakeholders, to facilitate discussion through various relevant study groups.

5- 1- 2- Chin a

The China market is a very important market for smart grid. The requirements there are for astronger and smarter grid with massive investments focused on increasing capacity, reliability,efficiency and integration of renewable

End of 2008, the Chinese government approved a US $586 billion stimulus plan focused on large-scale investment in low-income housing, water, rural infrastructure and electricity in China. Asecondary effect of this stimulus plan is to increase investment in renewable energy and energy

efficiency in China. This effort would include accelerating efforts to achieve the goal of reducingChina's energy consumption per unit of GDP by a cumulative 20% by 2010. One very promisingapproach for China to build energy conservation into its infrastructure is the construction of a"smart grid."

Chinas overall federal stimulus investments in smart grid projects will surpass the United States in2010: the Chinese government will spend $7.3 billion dollars in the form of stimulus loans, grantsand tax credits compared to $7.1 billion by the United States government.

5- 1- 3- Ko rea

South Korea aims to build the world's first nationwide smart grid system to reduce its emissions by

monitoring energy use more carefully.The grid, to be set up by 2030, is part of the country's $103bn initiative to increase its generation ofgreen energy from the current 2.4% of total power to 11% in the next two decades.

According to a government-led committee, South Korea could lower its greenhouse gas emissionsby 40 million tonnes annually with a national smart grid.

The committee's findings estimate that smart grids would reduce overall energy use by 3 % andlower the peak load for electric power by about 6 %. The electricity savings would be equal to theoutput of seven 1GW nuclear power reactors.

The committee comprises government officials, company executives and representatives and

researchers. It did not provide a cost estimate for the project.


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Consumers could reduce their electricity bills by an average of 15 % by charging their appliancesand cars during off-peak hours, as indicated through the use of smart meters.

State-run electricity monopoly Korea Electric Power Corp plans to set up a $65m smart grid pilotproject in the country's southern Jeju Island by 2011.

It would act as a test-bed for the nationwide initiative. The grid will incorporate two 10MWsubstation transformers and four power distribution lines located near an area with 3,000households, commercial districts and green energy facilities that include a wind farm.

5- 1- 4- US

The US view is that the Smart Grid concept for the electric power grid integrates digital computing,and communication technologies and services, with the power-delivery infrastructure, supportingsophisticated new energy-related applications. Some example new Smart Grid-enabledapplications include real-time consumer control over energy usage; increased reliance on solarand other clean or renewable energy sources; controls for large-scale energy storage; mobilebilling for charging electric vehicles; security for critical infrastructure protection and for privacy,and more.

Obama administration economic stimulus funding, measured in the billions of dollars, has launchedor accelerated Smart Grid technology initiatives that are developing and implementing the newconcepts. In late October 2009, President Obama announced 100 Smart Grid Investment GrantProgram awards totalling $3.4 billion. This federal investment leveraged an additional $4.7 billion incommitments from private companies, utilities, cities, and other partners that are forging ahead

with plans to install Smart Grid technologies and enable an array of efficiency-maximizing andperformance-optimizing applications. At the end of 2009, the number of Smart Grid projects in theUnited States exceeded 130 projects spread across 44 states and two territories.

A recent forecast projects that the U.S. market for Smart Grid-related equipment, devices,information and communication technologies, and other hardware, software, and services willdouble between 2009 and 2014to nearly $43 billion.

Key US Publ ic/Private Strategic Activ i t ies: the National Inst i tute of Standards and

Techno log y (NIST) Smart Gri d Init iatives (May-November 2009) and th e NIST Smart Grid

Interoperabil i ty Panel (November 2009 to Present)

US law, in the form of the 2007 Energy Independence and Security Act (EISA), assigned theNational Institute of Standards and Technology, a division of the US Department of Commerce, tocoordinate development of a framework of standards for Smart Grid. See their website atwww.nist.gov/smartgrid . The concern was that the USs 3600 utilities (power companies), and the50 state and 3 territorial Public Utility Commissions that regulate them, could follow many differentpaths in implementing Smart Grid. The result could be a collection of solutions that did notinteroperate, limiting value and reducing the opportunity for implementing innovations nationwide.A framework of standards for implementation would help to reduce the implementation paths to amanageable number, increasing market sizes, stimulating innovation, and speeding deployment bylowering prices and increasing reuse.


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From May 2009, NIST gathered industry experts from utilities (power companies) and the ITCindustry, as well as from regulators, in three massive meetings in May, June and August. These

experts analysed communications and information technology applications for the Smart Grid,proposed use cases and architectures for the SG information networks, and identified industrystandards needed to implement these architectures. This work resulted in a report published inJanuary, 2010, titled NIST Framework and Roadmap for Smart Grid Interoperability Standards,Release 1.0(see http://www.nist.gov/public_affairs/ releases/smartgrid_interoperability_final.pdf ).

In November 2009, to carry this work forward, and to shift much of the responsibility for it to theprivate sector, NIST launched a public-private partnership, the Smart Grid Interoperability Panel(SGIP). Since then, almost 500 companies and other organizations have joined the SGIP, with1,350 individuals from member organizations participating in the panels technical activities.Membership is open to organizations based outside the US as well.

Chief among the SGIPs technical activities are the 16 Priority Action Programs. PAPs arechartered to address areas in which standards require development or revision to complete theFramework. The PAPs gather experts from industry segments related to their charters. Forexample, PAP #1 (Internet) and PAP #2 (Wireless) are cooperating to quantify SG networkrequirements, and then identifying standard Internet and radio technologies that meet theserequirements. The SGIP work occurs openly, visible in a TWiki website,http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid/WebHome .

In addition to the PAPs, the SGIP also hosts working groups on special topics, including one onSmart Grid security for both critical infrastructure protection and privacy, the Cyber Security

Coordination Task Group. This 300-person TG has produced a draft report, DRAFT NISTIR 7628Smart Grid Cyber Security Strategy and Requirements, at http://collaborate.nist.gov/twiki-sggrid/pub/SmartGrid/NISTIR7628Feb2010/draft-nistir-7628_2nd-public-draft.pdf . Finally, theSGIP is launching two new standing committees, on Architecture and on Testing and Certification.

The goal is to complete most strategic and study work by late 2010 and then to move toimplementation of a US national, interoperable Smart Grid.


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6- ANNEX 2: STATE ENERGY EFFICIENCY PROGRAM IN CALIFORNIA, CUSTOMERS

PARTICIPATION AND PRIVACY HANDLING

A Zero Net home uses both radical energy efficiency measures and on-site energy generation tomake the home "energy independent." That means all of the building's energy needs are met onthe property, and it does not increase either energy demand or greenhouse gas emissions. ZeroNet homes will result in less cost for the home owner, and will create jobs by spurring a host ofnew technologies made in the USA from insulation, windows and building materials to micro-windturbines and solar hot water heaters.

Several hundred Zero Net homes are in development, including the Geos project in Colorado,which uses a new technology called "GeoSolar" a combination of solar photovoltaic and ground-source heat pumps (which store solar heat in the ground). They look just like regular homes, but

incorporate technology and design engineering readily available today.As many experts points out, "This is not rocket science." It is just about getting these homes writteninto the building codes, and providing incentives that will offset the initial investment costs.

This is just what the State of California is planning to do. The Long Term Energy EfficiencyStrategic Plan adopted on September 18th 2008, as a single roadmap to achieve maximum energysavings across all major groups and sectors in California from 2009 to 2020, was developed by aconsensus, stakeholder-driven process. Over 500 individuals and organizations across the stateand nationally participated and provided input, through more than 40 public meetings andworkshops. The Plan emphasizes four Big Bold strategies as cornerstones for significant energy-savings with widespread benefit for all Californians. It sets the foundation for transforming energy

patterns to make energy efficiency of way of life and business as usual in our California andalso provides the leadership to change how buildings will be built nationally and in China and India.


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The results are four "Big, Bold Strategies" that will drastically reduce average per capita energyconsumption. The four strategies are:

All new residential construction will be Zero Net by 2020.

All new commercial construction will be Zero Net by 2030.

The HVAC (heating, ventilation & AC) will receive a major overhaul and new codes.

The LIFE program will be implemented by 2020, giving low-income resident access to energyefficient products for their homes.

California introduced as well the PCT which led to intense customer privacy debates. The termProgrammable Communicating Thermostat (PCT) is used by the California Energy Commission todescribe programmable thermostats that can receive information wirelessly.

The first version of the PCT introduced in the 2008 building standards proceeding also requiredthat PCTs allow temperature control during emergency events to avoid blackouts. This feature wasremoved after public input indicated a strong fear of the non-overrideable "Big Brother" feel of thisfeature.

A talk at the S4 SCADA security conference in January 2008 indicated adding a public keyencryption scheme to the specification, giving each thermostat a random 160-bit number. Theinstaller or homeowner would call this number in to the utility or other service provider (Operator),who would then send the Operator's public key to the thermostat over RDS. Using this method, thePCT would receive messages only from the Operator(s) explicitly agreed to by the homeowner.

California utilities would control the temperature of new homes and commercial buildings inemergencies with a radio-controlled thermostat, under a proposed state update to building energyefficiency standards.

"Upon receiving an emergency signal, the PCT shall respond to commands contained in theemergency signal, including changing the set-point by any number of degrees or to a specifictemperature set-point. The PCT shall not allow customer changes to thermostat settings duringemergency events."

The PCT specifications require them to include a "non-removable Radio Data System device thatis compatible with the default state-wide DR (Demand Response) communications system, whichcan be used by utilities to send price and emergency signals."

California has already proven that regulation at the state level can have dramatic long-termbenefits. The California Energy Commission (CEC) implemented building and appliance standardsway back in 1978, flattening out the rate at which individuals were increasing energy consumption.

For the past 30 years, California has stayed at about 7,000 kWh's per person per year whileconsumption in the rest of the US has continued to rise, and rise rapidly. The average US residentnow consumes about 12,000 kWh per year.

It's not the fault of the consumer. Few other states have codes requiring that buildings, heating &cooling systems, and appliance be more efficient. The CEC estimates that such regulations inCalifornia have saved California consumers more than $56 billion to date, with an additionalprojected savings of $23 billion by 2013.


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7- ANNEX 3: CUSTOMER PRIVACY AND DATA HANDLING IN OTHER SERVICES SECTORS

LIKE TELECOM AND E-BANKING

Modern consumer privacy law in a recognizable form originated in telecom regulation, when it wasrecognized that a telco, especially a monopoly, had access to unprecedented levels of informationabout not only the direct customer's communications habits and correspondents, but also that ofthose who shared his or her household. It was also often the case that telephone operators couldhear conversations, inadvertently or deliberately, and were required to dial the exact numbers.

The data gathering required for billing began to become an obvious privacy risk as well.Accordingly, strong rules on operator behaviour, customer confidentiality, records keeping anddestruction were enforced on telcos in every country. Typically only police and military authoritieshad powers to 'wiretap' or see records. Even stricter requirements emerged for banks' electronic

records in some countries financial privacy is a major focus of the economy, and penalties forviolating it are severe and criminal penalties applied.

Through the 1970s many other organizations in developed nations began to acquire sensitive data,but there were few or no regulations in place to prevent them from sharing or abusing it. Customertrust and goodwill was generally thought to be sufficient in some nations, notably the United States,to ensure protection of truly sensitive data. But in the 1980s much smaller organizations began toget access to computer hardware and software, and these simply did not have the procedures orpersonnel or expertise, nor less the time, to take rigorous measures to protect their customers.Meanwhile, via target marketing and rewards programs, they were acquiring ever more data.

Gradually, customer privacy measures alone proved insufficient to deal with the many hazards of

corporate data sharing, corporate mergers, employee turnover, theft of hard drives or other data-carrying hardware from work.

Talk began to turn to explicit regulation, especially in the European Union, where each nation hadlaws that were incompatible, e.g. some restricted the collection, some the compilation, and somethe dissemination of data, and it was possible to violate anyone's privacy within the EU simply bydoing these things from different places in the European Common Market as it existed before1992.

Through the 1990s the proliferation of mobile telecom (which typically bills every call), theintroduction of customer relationship management and the use of the Internet by the public in all

developed nations, brought the situation to a head, and most countries had to implement strongconsumer privacy laws, usually over the objections of business.

The European Union and New Zealand passed particularly strong laws that were used as atemplate for more limited laws in Australia and Canada and some states of the United States(where no federal law for consumer privacy exists, although there are requirements specific tobanking and telecom privacy).

E-banking activities involve not just banks and their customer, but numerous third parties too.Information held by banks about their customers, their transactions etc changes hands severaltimes. It is impossible for banks to retaining information solely within their own computer networks,let alone a single jurisdiction is impossible. Risks pertaining leakage, tampering or blocking of dataare sufficiently high to warrant adequate legal and technical protection. Information security in e-banking presents two main areas of risk: preventing unauthorized transactions and maintainingintegrity of customers transactions. Data protection falls in the latter category.


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Data protection laws primarily aim to safeguard the interest of the individual whose data is handledand processed by others. Interests are usually expressed in terms of privacy, autonomy and/or

integrity. Data protection laws are framework laws providing rather diffused general rules for suchprocessing and making allowances for developing detailed norms as and when the need arises.Such legislation typically regulates all or most stages of the data protection cycle includingregistration, storage, retrieval, and dissemination of personal data. Data protection legislation of alarge number of countries, such as Austria, Ireland, Japan, Luxembourg, Sweden and the UKcover only automated data processing practices.


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8- ANNEX 4: MAKING THE SMART GRIDS CHANGE HAPPEN BY STAKEHOLDER

8- 1- Making technology available, cost effective and proven: technology providers lead by

utilities

Minimum requirement lay the foundation for the industry to make available at reasonable cost newtechnologies and enable Utilities and consumer to initiate the change as early as possible; they laythe foundation for a secure technology roadmap for all stakeholder and should support a constantevolutionary process; Regulation bodies should call upon

the Utility, manufacturing and technology industry to participate to the establishment ofthose under their lead: those include [if not in bullet point 1]:

Devices standardization (standards and business services standardization) Communication standardization including security and privacy between home

devices and home gateways, between meters and gateways, between gatewaysand central Utility systems taking advantage of best of breed and available standardtechnologies Market Model standardization across countries (even with multiplealternative models) and update of legacy energy market models and associatedmarket processes (such as energy markets, system services provision, nomination,settlement, change of supplier); numerous existing standards and bodies shouldbe involved in supporting design and convergence of new models with theobjective of converging toward interoperable and more cost effective industrydesigns:

a pan European Role model enhanced for smart grid services for the

different Utility sector actors (retailers, balance responsible etc), a pan European Energy Market process model (definition of standard

information objects and information exchanges between Roles) coveringthe different areas of Retail Markets (change of supplier), WholesaleMarkets (scheduling, nomination, settlement), Systems Services (provisionof load response and electric system balancing services by generators orload aggregators)

Regulatory enforcement of minimum set of compliance should be encouraged alongtime to insure different member state countries reach similar levels of adoption,allowing re-usability of devices, systems and a higher level of interoperability

between systems and actors, allowing companies to compete cost effectively for thebenefit of customers. Market based Incentive measures should be designed to create business incentives for the

stakeholders to invest in Smarter grids, in particular for competitive businesses; incentivemeasures should be established as a road map calling upon minimum discriminatorymeasures and as much as possible coherent with the energy competitive markets;Incentive measures should both include:

regulated network business to be incentivised through new Key performanceindicators and tariff review conditions for supporting smarter grids whilemaintaining the adequate investment levels ideally in convergingapproaches at European level;


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for instance, tighter regulatory requirements on monitoring power quality forend customers and incentives & rewards for best practice distribution

networks deregulated business incentives to promote and innovate in compliance with EU

objectives initiatives including market driven reward for low carbon, energy savingpromotion

for instance, rapid introduction of interval metering based settlement process(allocations and reconciliations) for Energy Suppliers supplying smartmetered customers to allow them to benefit from innovative energy savingofferings to customers

As numerous technologies and process required supporting smarter grids are still to be fullyunderstood and defined, it is key to secure, coordinate and share with the industry leading

technology trials or tests enabling to proof test in real life and support furtherrecommendations.

Utilities led projects involving technology providers should be reinforced, and coordinated /made available to the community to support establishing standards and strategies inintegrating new services, devices and application to enable smart grids including smartmeters, home automation, communication infrastructures, intelligent energy networks,market and system operation support applications; those are critical to:

o identify and eliminate key barriers to acceptation of new technologieso support vendors effort to make available enabling technologies at

competitive price.

Technology trials and initiatives should be structured to address all areas of benefits underinvestigation, and be mapped against standardization/normalisation activities in non-discriminatory manner allowing competition to respond to identified technology challengesand required solutions; transparency and collaboration will create the condition fortechnology providers to compete and innovate allowing to prove the society business casefor smart grids

In conceiving technology trials and integrating them into day to day operations, Utilities areideally positioned with the support of technology providers to lead under supervision byregulatory bodies

8- 2- Achieving customer adoptions: regulatory, government, and Utilities bodies lead

For most of industry changes, customers have often been left behind and involved at the timechange would directly affect them. There is a clear need for getting customer onboard asnumerous of the benefits searched for will only be achieved with customers and as they benefitthemselves.

Regulatory and Government body should coordinate to :

o Raise awareness of major concerns, identified solutions and approach undertaken towardsa digital energy economy.

o Innovation funds to fund Solution provider and/or innovative Utilities help proof points bettervalue and services to the customer industry; competitive technology vendor have hadcritical role to play to boost industry innovation toward the consumer industry and should befully involved in formulating the customer value and the smart grid vision.


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o Insure proper communication and involvement in standardization and working groupsencouraging a pro-active, value creation focused contribution from consumer associations

8- 3- Making the change happen and measurable local initiatives

o While all previous stages and contributions are critical for smarter grids to take place, makingthe change and transformation happen rapidly will require some stakeholder to take the lead indemonstrating envisaged technologies can coherently collaborate together to achieve thebenefits in large scale environments

o Measures should be considered by regulatory and government bodies to foster creation ofinnovation zones, at city, region, or country levels to implement ahead of an EU framework, asmarter grid in large scale. Such demonstrators will be instrumental to boost stakeholderconfidence and create powerful dynamics in the communities, vendors, and utilities to

proactively contribute to the smart grid roadmapo Benefit assessment and reporting of the implemented measures and technologies should also

be organised by central bodies in accordance with customers and utilities to establish keyobjectives, achievement targets. The monitoring of achieved results should be madetransparently, insuring maximum adoption and confidence is gained from all stakeholders.


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ANNEX 9- SETTING A FAVOURABLE ENVIRONMENT: EU & REGULATORY BODIES LEAD

Formulate a complete and exhaustive regulatory road map composed of on the one handminimum requirement specifications and on the other hand incentivization measures to createbusiness drivers to the community to make smarter grid happen

o Formulate a complete measures application roadmap to Insure countries implement coherentapproaches and converge at reasonable pace on both minimum requirement specificationsand incentivization measures.

o In this challenging and complex set of activities, EU and European standardization bodies willbe instrumental but must be provide the appropriate mandate at multiple levels from low leveltechnology standard specification up to information exchange and processing requirements with support of Utilities and Technology makers. Standardization and regulation bodies should

insure that Utilities and Energy initiatives are not establishing barriers to technology adoption,and benefitting from other European digital initiatives (for instance through use of IP basedhome gateways and broad band connections as often as possible).


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ABOUT DIGITALEUROPE

DIGITALEUROPE is the voice of the European digital economy including information andcommunication technologies and consumer electronics. DIGITALEUROPE is dedicated toimproving the business environment for the European digital technology industry and to promotingour sectors contribution to economic growth and social progress in the European Union.

DIGITALEUROPE ensures industry participation in the development and implementation of EU

policies. DIGITALEUROPEs members include 60 global corporations and 37 national tradeassociations from across Europe. In total, 10,000 companies employing two million citizens andgenerating 1 trillion in revenues. Our website provides further information on our recent news and activities: http://www.digitaleurope.org

THE MEMBERSHIP OF DIGITALEUROPE

COMPANY MEMBERS:

Acer, Alcatel-Lucent, AMD, APC by Schneider Electric, Apple, Bang & Olufsen, BenQ, Bose,Brother, Buffalo, Canon, Cassidian, Cisco, Corning, Dassault Systems, Dell, Epson, Ericsson,Fujitsu, Hitachi, HP, Huawei, IBM, Ingram Micro, Intel, JVC, Kenwood, Kodak, Konica Minolta,Lexmark, LG, Loewe, Microsoft, Mitsubishi, Motorola Mobility, Motorola Solutions, NEC, Nokia,Nokia Siemens Networks, Oc, Oki, Oracle, Panasonic, Philips, Pioneer, Qualcomm, Research In

Motion, Ricoh International, Samsung, Sanyo, SAP, Sharp, Siemens, Sony, Sony Ericsson,Swatch Group, Technicolor, Texas Instruments, Toshiba, Xerox.

NATIONAL TRADE ASSOCIATIONS:

Austria: FEEI; Belgium: AGORIA; Bulgaria: BAIT; Cyprus: CITEA; Czech Republic: ASE;Denmark: DI ITEK, IT-BRANCHEN; Estonia: ITL; Finland: FFTI; France: SIMAVELEC; Germany:BITKOM, ZVEI; Greece:SEPE; Hungary: IVSZ; Ireland: ICT IRELAND; Italy: ANITEC, Lithuania:INFOBALT; Netherlands: ICT OFFICE, FIAR; Poland: KIGEIT, PIIT; Portugal:AGEFE, APDC;Romania: APDETIC; Slovakia: ITAS; Slovenia: GZS; Spain: AETIC, ASIMELEC; Sweden:

IT&TELEKOMFRETAGEN;United Kingdom:INTELLECT;Belarus: INFOPARK; Norway:ABELIA,IKT NORGE; Switzerland:SWICO; Turkey:ECID, TESID, TBISAD; Ukraine:IT UKRAINE
http://www.digitaleurope.org/http://www.digitaleurope.org/

2010921 digitaleurope white paper on smart grids

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