the role of smart grids in future

8/9/2019 The Role of Smart Grids in Future

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EURELECTRIC

The role of Smart Grids in future power

systems- EURELECTRIC Views

Dr. Mihai PAUN

Power Networks and R&D

EURELECTRIC

EPSU Meeting on Supergrid Smart Grids

11 March 2010, Brussels


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1. EURELECTRIC & Distribution Networks activities

- WG Smart Grid/Network of the Future

2. The EC Task Force Smart Grids

3. DSOs in the Internal Electricity Market

4. Generic Model for Smart Grids

5. Smart Grids EURELECTRIC Views

6. Networks Investments7. Future Challenges for Distribution Systems and

Business

Content


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The Union of the Electricity Industry -EURELECTRIC

Professional association representing the common interests of theElectricity Industry at pan-European level, plus its affiliates and

associates on several other continents

Formulates opinions, policy positions andreports in Working Groups, composedof experts from the electricity industry

www.eurelectric.org

Represents:

33 members

3200 large customers

275 Mio. stomers

800 GW

Contribute to development & competitiveness

Representing common interests of the

electricity industry at pan-European level Promote the role of electricity

Publish documents on high-quality input


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BOARDOF

DIRECTORS

ENERGY POLICY& GENERATION

COMMITTEE

COORDINATIONCOMMITTEE

WG Energy PolicyWG ProspectiveWG Renewables & DGWG NuclearWG ThermalWG HydroWG R&DTF CCSNE Statistics &ProspectsNE Small Islands

WG SYSTINTWG Distribution/

Regulation & PolicyWG Distribution/

Customers & OperationWG Smart Grid/

Network of the FutureNE TransmissionNE Standardisation

WG Wholesale Markets& Trading

WG Retail MarketsWG Regional Implement.WG Gas*WG External Trade

(incl. South East Europe,Mediterranean andRussia sub groups)

WG Env. ProtectionWG Waste & ResiduesWG Env. Management

& EconomicsWG Climate ChangeWG Energy Efficiency

WG Env. & Society

WG Legal AffairsWG Social Aff & HRNE FiscalFG Finance &

EconomicsFG Enterprise Risk

Management

Group Managed by the Secretariat:

NE Communication Managers

ENVIRONMENT& SUSTAINABLE

DEVELOPMENT POLICYCOMMITTEE

MANAGEMENTCOMMITTEE

MARKETSCOMMITTEE

NETWORKSCOMMITTEE

BUDGETCOMMITTEE


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The new Networks Committee structure focus onDistribution Issues

Before New

WG Distribution

WG Distribution Regulation & Policy

WG Distribution Customers & Operation

WG Smart Grid/ Network of the Future

WG SYSTINT WG SYSTINTWG Systmed

NE Transmission

NE Standardisation

create

transfer

keepmerge

extend


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WG Smart Grid/Network of the Future: New technologies have thepotential to change the face of the networks industry. Networks will beable to play a bigger role in achieving environmental goals but newtechnologies might also alter the business model of the industry,changing sources of income and creating new markets. Future Technology of the business

WG Distribution/Regulation & Policy: Regulated DSOs must be able tocreate value when it comes to their ability to invest in the necessaryassets to address the rising challenges. Function of the business

WG Distribution/Customers & Operation: DSOs are facilitators of aEuropean retail market. Operation of the business

Strategic Distribution Activities


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Smart Home

Smart Meter

Smart Grid

(flexibility)

~

Electric

VehicleDispersed

Generation

It is necessary to define a BusinessModel and the future Role of the DSO

Data

management

System

control

Market

Platform

Inhouse

technology

Active Filter


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The European Commission - DG TRENTask Force Smart Grids

EURELECTRIC


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CONTENT

Mission

Expected Outcome

Participants

Deliverables

Time Scale


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Mission

Advise the Commission on policy andregulatory directions at European level and

To coordinate the first steps towards the

implementation of Smart Grids under theprovision of the Third Energy Package.


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Expected Outcome

Common Vision in conjunction withinstitutional actors and key stakeholdersfor the implementation of Smart Grids

Strategic decisions and regulatoryrecommendations for the EU-wideimplementation of Smart Grids

Strategic roadmap for the implementationof Smart Grids and Smart Meters into the

European internal market


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Participants

Governments, regulators and othercompetent authorities including nationaldata protection supervisory authorities,

consumers, suppliers, traders, powerexchanges, transmission companies,distribution companies, power equipment

manufactures and ICT providers.


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Deliverables

Definepolicy and producerecommendations for a

new regulatory scenario with almost real timeprices signals and incentives which allowconsumers to active participate in the retail market(Dynamic pricing scenario)

Producea set of minimum functionalities for SmartMeters that enables and assists consumers inmanaging their energy consumption/production

(Consumer participating in generation scenario) aswell as ensures consistency with the provisions ofthe Third Energy Package.

1


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Deliverables

Identifythe appropriate regulatory scenario and

recommendations for data handling, safety andconsumer protection.

Recommendthe roles and responsibilities of all

actors involved in the implementation of SmartGrids, such as regulators, DSOs, distributedgeneration suppliers, equipment suppliers,household appliances suppliers, consumers etc.

Recommendcriteria and recommendations forfunding Smart Grids deployment though gridtariffs or other regulatory means.

2


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Time Scale

No. TASK Timescale

TASK 1. Produce a common vision in conjunctionwith institutional actors and keystakeholders for the implementation ofSmart Grids

by May 2010

TASK 2. Identify the strategic decisions andregulatory recommendations for the EU-wide implementation of Smart Grids

by January 2011

TASK 3. Produce a strategic roadmap for theimplementation of Smart Grids and SmartMeters into the European internal market

extension ofTask 2


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EURELECTRIC Objectives on

Smart Grids


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EURELECTRIC Objectives onSmart Grids

Support/coordinate the Electricity Industrytowards the implementation of Smart Gridsunder the provision of the Third EnergyPackage and

Advice the Commission on policy andregulatory directions at European level and


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EURELECTRIC Objectives onSmart Grids How to achieve them?

R&D Distribution Platform to supportimplementation/deployment of Smart Grids

Set appropriate R&D Priorities

Regulatory Framework/Directions

Introduction and rollout of Smart meters

Market Model Smart Retail Market


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Smart Grids EURELECTRICPreliminary Views

Strategically Deploying Smart Grids


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PRELIMINARY DEFINITION

A Smart Grid is an electricity network thatcan intelligently integrate the behaviour andactions of all users connected to it -

generators, consumers and those that doboth - in order to efficiently ensuresustainable, economic and secure

electricity supply.


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Key Messages Smart Grids is the way to equip system operators with thenecessary tools to contribute to the 2020 objectives.

EURELECTRIC recognise the need for governments andregulatory authorities to work together towards an optimisedbusiness model for all parts in the value chain from

generators to consumers to minimise total costs.

Regulators need to take appropriate measures to supportthe development of smart grids allowing a fair rate of return

when DSOs contribute to meet efficiency and Renewables(RES) targets.

Need for a clear and predictable regulatory framework forthe European electricity market.


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Purposes of the EURELECTRIC Survey

To improve understanding of the current operatingframework of electricity distribution networks To describe the smart network characteristics in eachmember country.

To provide information on the scope, characteristicsand present degree of innovation in the electricitydistribution networks and business. To provide a high-level understanding of the outputswhich the implementation of the Smart Grids conceptand businesses are expected to deliver.


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Type of responding DSOs

Type of DSO %

Large DSO (>100,000 customers) 90

Rural DSO 17

Urban DSO 30Mixed urban-rural DSO 73

Voltage level: =20 kV 73


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Answers from 30 DSOs

in 16 countries

Questionnaire with 46 statementson key issues

Who are you?Which are the Drivers for SG New Services Expected from DSOs

Network Development Active Grid management Network investments Smart metering Regulation key success factor

PARTICIPATION


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Drivers for Smart Grids

Smart Grids improves customer service.

Smart Grids is a necessity for the integration ofRES and distributed generation.

Progress in technology - big driver Increasing flexibility Optimisation between economic and technical

aspects DSM is a driver active prosumers Ageing assets is an opportunity for investments


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Drivers for Smart Grids

0

2

4

6

8

10

12

14

16

1 2 3 4 5 6

Conclusion: PROGRES IN TECHNOLOGY

IS A BIG DRIVER/opportunity?

5 - FULLY AGREE

1 - FULLYDESAGREE

6 - BLANK

Q2.5: Is the progress in technology a driver for Smart Grids?


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Change in MV network architecture is notexpected by all DSOs, but...

Change in LV network architecture is moreprominent Bidirectional flow at distribution level still anexception Future distribution network operation is still an

issue

Network Development


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Network Development

0

2

4

6

8

10

12

1 2 3 4 5 6

Conclusion:

DG WILL INFLUENCE NETWORKS

INVESTMENTS

Q4.4: The expected installed capacity for DG will be a criterion in

network dimensioning?


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Active management of the grids is an alternativeto network reinforcement for most DSOs. The actual degree of networks automation will

increase to ensure customers satisfaction. The impact of Virtual Power Plants on the powerflow is not clear.

DSOs have a key role in system security and arole in enabling DG to contribute to the systemsecurity. How in practice?

Active Management of the Grid


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The results of EURELECTRIC analysis show that

the present replacement rate of assets in DSOs ismaintained except smart metering. There is no need for all DSOs to install higher

distribution capacity wires and cables forrenewables. The main challenge remains to look into the future

of the electricity business. Strategic R&D priorities for future networks. Investments are needed.

Network Investment


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Future Challenges for DistributionBusiness

SmartGrids concept

What will the future Grids look like?

Regulatory challenges

for distribution

How to regulate distribution in the next 10 years?


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Regulation key success factor

Incentivesgiven byRegulators to DSOsfor their involvement in R&Dwork and for the development and deployment of new technologies

supporting Smart Gridsshould be improved.

0

2

4

6

8

10

12

1 2 3 4 5 6

Conclusion:

WORK TO BE DONE TO COVER THE

TECHNOLOGICAL RISK - HOW?

Q9.2: The risk associated with new technology is covered by the

regulatory framework?


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EXPECTATIONS AND NEXT STEPS

Reference point in carrying out comparisons between

DSOs. Beneficial in discussing with regulators

Aid the sharing of best practice and improving efficiency

Not a benchmarking study

It provide the context for understanding the similarities anddifferences between companies and the level of

implementation of the Smart Grids concept in Europe. Lead to further collaborative work to promote betterunderstanding.


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Thank you for your

attention !

[email protected]://www.eurelectric.org

the role of smart grids in future

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