THE DEVELOPMENT OF RECHARGING SYSTEMS FOR ELECTRIC VEHICLES IN ITALY - Daniele Bonafede - AEEG, Italian Regulatory Authority for Electricity and Gas

1. THE DEVELOPMENT OF RECHARGING
SYSTEMS FOR ELECTRIC VEHICLES
IN ITALY
Considerations on opportunities and concerns for the electrical
system in managing with the spread of electric mobility
Daniele Bonafede
Italian Authority for Electricity and Gas
5a edition
MOBILITY TECH Palazzo Giureconsulti
Milan, 19th October 2010
Conference “Città Elettriche”, session on “New Energy for the movement”
by CEI-CIVES: Electric vehicles for mobility in cities or not: from mirage to reality
The employee of the Authority involved in conferences, seminars and debates takes care to
point out the personal nature of expressed views (Code of Ethics Authority, 10.3)

2. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 2
What is and what it does in Italy, the
Autorità per l’energia elettrica e il gas
The Italian Authority for Electricity and Gas Authority
(AEEG) is an independent administrative authority,
established by Law 481/95, with the task of:
• Tariffs, conditions of access and provision regulation for
service users in natural monopoly
• Promotion of competition in the liberalized
• Promotion of efficiency in the end-use energy
• Consumer and users of regulated services protection
in the liberalized sectors of electricity and gas.
The Italian Regulatory Authority for Electricity and Gas

3. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 3
DEVELOPMENT OF RECHARGING
SYSTEMS FOR ELECTRIC VEHICLES
• Introduction to Electric Mobility
• Classification of recharging systems
• Recharging Services for the
mobile electric consumer
AGENDA:
1. General items
• Adjustment of the recharging systems
• Trials and pilot projects
• Summary and outlook
2. Regulatory items

4. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 4
ELECTRIC VEHICLES: WHY?
• Types: BEV, PHEV, EREV (electric range >60 km)
• Reduced urban pollution (CO, NOx, HC, benzene C6H6, SO2,
heavy metals, combustion nanoparticulates, etc.).
• Maximum refueling flexibility (missing only the last meter)
• Diversification of energy mix (safety of supplies) to
produce electricity can be used some sources
unconditional
• Reduced CO2 emission/energy efficiency (just 38%)
• Potential tools for energy storage and network
optimisation for larger use of renewable sources
• Electric system sustainability also in mid-long term
• Sustainable mobility with electric vehicles is a
"win-win strategy" because the sum of:
– Environmental benefits to economic ones
– Stimulus for economic growth to urban livability

5. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 55
EUROPEAN STRATEGY FOR
ELECTRIC VEHICLES /1
• European Strategy
– Strategy “Europe 2020”: promoting green vehicles by
encouraging research, establishing common standards
and developing the necessary infrastructure
• European regulation framework
– Directive 2009/33/CE16 on the promotion of clean and
energy efficient road transport, which aims to reduce
emissions of greenhouse gases and improve air quality
(particularly in cities)
– Regulation (EC) No 443/2009 setting emission
performance standards for new passenger cars by 2015
(it will be reviewed by 2013 to the target of 95 g/km CO2
to 2020)

6. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 66
• EU Commission Communication "A European
Strategy for clean vehicles and energy-efficient"
COM (2010) 186 final. April 28th, 2010:
– It indicates lines of action for green vehicles – among
them electric vehicles
– Support for research and innovation (recovery of
European competitiveness – occupational profiles)
– Available incentives are too diversified between Member
States
– Standardization of vehicle interface/network (in terms of
communication/negotiation)
– Upgrading of recharging infrastructure (Commission's
commitment to "take the lead" and to define forms of
financing for investment)
– Integration of pro-renewables
EUROPEAN STRATEGY FOR
ELECTRIC VEHICLES /2

7. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 77
WHAT FUTURE FOR POWER NETWORKS?
• Europen aims 20-20-20
• Complex scenario with many variables
– Effective development of distributed generation
– Stability of the electrical system in the face of intermittency
– Energy efficiency initiatives (end-use and losses)
– Possible participation of the widespread demand
– Carbon-market prices and trends in CO2
– Technology development, storage, etc..
– New electrical applications: eg. electric vehicles
– Taxation
• European framework
– “SET-Plan” innovation & technological development (2007)
– “III package” domestic energy market (2009)
– “Strategy Europe 2020” for the European growth (2009)

8. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 88
PROJECT LENS – Ofgem
SCENARIOS FOR IMPACT ON NETWORKS
Scenario 1 Scenario 2 Scenario 3 Scenario 4
www.ofgem.gov.uk/Networks/Trans/ElecTransPolicy/lens/Pages/lens.aspx

9. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 99
THE RECHARGING INFRASTRUCTURE ROLE
“With the entry into the market of electric
vehicles, consumers can start charging them from
existing power points.
However, publicly accessible charging points will
have to be provided to meet consumers’ needs on
battery charging. An adequate electric charging
network will require significant investment and
definition of standards on safety, interoperability
and payment. ”
European Commission
COM(2010)186 final., April 2010
A European strategy on clean and
energy efficient vehicles

10. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 10
SEVERAL KIND OF RECHARGE /1
TBD, may cover 50-600 V DC;
may cover up to 400 A;
may cover up to 240 kW
Storage: optional and static
Not defined yet but they
might do so, might cover
AC Three phase
MV, peak, No Storage
Networks concerns?
LEVEL 3
200-450 V DC;
max 200 A;
max 90 kW
240 V AC Single phase;
max 80 A;
max 19.2 kW
LEVEL 2
200-450 V DC;
Current <= 80 A;
power <= 19.2 kW
120 V AC Single phase;
max 16 A;
max 1.9 kW
LEVEL 1
DC
CHARGING
AC
CHARGING
Service
level
An international classification

11. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 11
SEVERAL KIND OF RECHARGE /2
Type of current
Technology,
batteries, safety
Solution available.
Developments.
No immediate
concern
Technical
concerns
Under testing:
Intern. Consortium
CHAdeMO
More than 20 in Europe
(single and multiple charging stations)
Pilot projects
number
Outside, largeOn board the vehicleBattery charger
Not now
Standard connector in the short
(by 2011)
Standardisation
20 – 5 mins
Flexibility
60 – 30 mins
6 – 3 hrs
Efficiency
Time to recharge
20 kWh
50-500 V
>50/250? kW
400 V
22/43 kW
230 V
3,3 – 6,6 kW
Voltage and
Maximum Power
Fast Charge
Areas
(Fast Charging)
Quick charge in
public places
Trickle charge in
private places
Services
Features

12. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 12
SEVERAL KIND OF RECHARGE /3
SLOW RECHARGING
IN PRIVATE PLACES
• 120-150 km range with a
recharge of one night at 3.3
kW (slow level 2)
• No problems with the
electrical system unless a
large local volumes
• Obstacles at regulation level
(i.e. permissions by Assembly
building)
• "Right to the outlet“
• Rates and taxes
SPEEDY/FAST CHARGING
IN PUBLIC PLACES
• Several business models
• Regulatory issues such as
dispatching (mobile POD or
fixed POD multi-vendor)
• Issues of competition in the
supply/sale of electricity
• Impact on the network in
relation to power
(speedy Level 2 and if without
storage fast Level 3)
• Data exchange vehicle-outlet
(required European standards)

13. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 13
DIFFERENT KINDS OF SERVICE /1
Fast charge in
direct current
(DC FC Level 3)
… service in
a few minutes …
Vehicles arriving within 2 years
2012-2015: 85 kWh
~300-500 km
2011-12
160 km
Available compatible vehicles
2010: 15-25 kWh 150-160 km
2015: 35-55 kWh ~2-300 km?

14. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 14
DIFFERENT KINDS OF SERVICE /2
AC supply trickle charge (> 3hrs) or
AC supply quick (1 hr) in public places
Cars ready: all

15. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 15
DIFFERENT KINDS OF SERVICE /3
Trickle AC charging
in private places >3hrs

16. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 16
VEHICLE: A SECURE QUICK INNOVATION /1
• Vehicles side very high rate of innovation for values such as:
average specific consumption, autonomy, storage by battery.
• High risk of obsolescence if it will be invested only in the recharging
infrastructure network-dependent for low-power services.
• Quickly unuseful (5 years?) or impractical with respect to vehicles
requirements and especially to mobile electrical consumers.
3,602,42161,5442193 L260 kmSìSì20125+2
Options: FC: Fast Charging <1h – BS: Battery Swap – L: self-limited speed. 2 + C: Light Commercial Vehicle
Calculations by AEEG based on data announced by the manufacturers (2010). (*) Energy commodity price: 0.15 € / kWh
193 L
212 L
140
130
150
145
150
130
100 L
Max
Speed
(km/h)
3,752,34156,2525160 kmNoNo20112+C
5,332,66177,5035,5200 kmNoSì20115
5,402,7018036200 kmNoNo20124
12,752,66177,0885480 kmSìSì20125+2
2,481,90126,9216,5130 kmNoNo20122
2,401,71114,2916140 kmNoSì20104
3,602,2515024160 kmNoSì20105
3,752,34156,2525160 kmSìSì20125
7,952,48165,6353320 kmNoNo20082
€/100 km
(*)
€/Full
charge
(*)
Consump.
(Wh/km)
Capacity
(kWh)
Range
(Km)
BSFCYear
Type
(pax)

17. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 17
VEHICLE: A SECURE QUICK INNOVATION /2
• The data in the shown table also indicate that will result an
even suburban use for the announced electric vehicle.
• They are known trials funded in USA, Japan and some
European countries (Portugal, Spain, United Kingdom, the
Netherlands and Ireland) to begin to equip nodes with high
traffic in urban areas and recharge areas, about each 60
km as the existing areas of service, fast roads/bypass
and highways with equipment supply for fast recharge
direct current (CHAdeMO or DCFC level 3).
• Areas can be optimized with storage and little production
from renewable sources in order not to overburden the
local network, where not available.
• The above, together with the other basic elements, allows a
real, but also necessary for the well-known climatic
constraints, use of electric vehicles, practical and with no
compromises.

18. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 18
RECHARGING IN PUBLIC PLACES:
THE DIFFERENT ASPECTS
• The choice of model does not relate to decisions
of the regulator – must be part of a wider choice
of public policy as regards issues such as:
• Environmental
• Road system (Congestion Charge, and location
systems ZTL)
• Urban planning (permission to recharge areas)
• Transport terms (requirements and review
vehicles)
• Tax (differential taxes and subsidies)

19. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 19
TFL – Guidance for implementation of
electric vehicle charging infrastructure
http://www.london.gov.uk/electricvehicles/docs/EVCP-guidance-version-1-Apr10.pdf

20. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 2020
THE REGULATION ROLE
“The level of uncertainty about the future
role and direction of networks is
unprecedented, at least since privatisation.
… we think it is important to keep options
open wherever possible, to encourage
networks to innovate and to ensure the
policy and the regulatory frameworks are
sufficiently flexible to adapt to changes over
time”
Ofgem, LENS Report, 2008

21. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 21
RECHARGING IN PRIVATE PLACES
• "PUBLIC" RECHARGING POINTS
• SMART GRID and
SERVICES VEHICLE-to-GRID (V2G)
RECHARGING INFRASTRUCTURES
REGULATION

22. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 22
RECHARGING IN PRIVATE PLACES
AEEG decision ARG/elt 56/10 (April 2010)
• “Measures of connections to power [...]
electric vehicles. [...]”
• Up to yesterday: uniqueness of the site for client
• Today: possible additional delivery points,
with a counter dedicated, for:
• Families
• Condos (condominium regulations concerns?)
• Company Parking
• Energy transport charge: LV other purposes
• Price of energy: market (also “greater protection”)

23. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 23
RECHARGING IN PUBLIC PLACES:
POSSIBLE DIFFERENT BUSINESS MODELS
1. Recharging as after-sales service
free activity
2. Recharging as extensive distribution infrastructure
regulated activity
3. Recharging as a separate network service
Unrelated activity to the electricity system
4. Battery-swap
industrial activity
• The model chosen must always be compatible
with the retail electricity market
liberalization

24. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 24
"PUBLIC" RECHARGING POINTS /1
First solution
Recharge as after-sales service
– Case similar to natural gas for vehicles
– The station is the final customer for the electricity
system
– The owner of the charge area agree with the reseller/s
– Competition between the recharge areas such as service
stations in classic fuels
– Role of provider limited to connect and measure
upstream of the recharging area
– Free activity, with some regulated aspects

25. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 25
Second solution
Recharging area: expanded role of the DSO
– Recharging area is included in the distribution asset for
the area of the concession (recharging facilities in RAB)
– The DSO as a provider must allow access to all
authorized dealers in Italy
– Competition between different brands in the same area
– A specific dispatching regulation is needed for a
modest amount of energy
– A regulatory is needed on technical characteristics and
spread (similar case to the public phone booth?)
– Activity under administrative concession and fully
regulated
"PUBLIC" RECHARGING POINTS /2

26. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 26
RECHARGING IN PUBLIC PLACES:
DIFFERENT BUSINESS MODELS
Possible criteria for evaluating the different models:
a) Competition (in different markets)
b) Support for infrastructure development
c) Innovation vs. Standardization
d) Ease of experimentation
e) Convenience for the mobile electric consumer
f) Risks about:
• Goldplating
• Stranded costs (obsolescence)

27. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 27
RECHARGE POINT PUBLIC IN VIEW:
• From the coming months and probably over the next two
years will be a gradual clarification of the institutional
and regulatory framework at all levels
• As mentioned, the choice of model is not guided by the
decisions of the regulator, covering very different subjects
and aspects involving different decision-makers
• Final decisions on the type of model for the public
recharging service certainly depend on technological
developments and what are the business models
preferred by the market (service providers and
consumers), and the results of experiments
• It is desirable that the trials may be the most diverse in
type, technology, organization, though limited in time.
• It is important that it starts a first shrewd starting of
infrastructure, easily adaptable to standards agreed at least
a continental level when available.

28. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 28
OBJECTIVES OF THE PROVISIONS:
ACCOMPANYING THE EXPERIMENTS
• The Authority’s decision no. ARG/elt 136/10, approved on
2010/09/02, introduces special and interim provisions
for testing trial public recharging systems. The interim
provisions include: a) Regulated tariffs for transmission,
distribution and metering services; b) Energy settlement
• The public recharging infrastructure are defined as:
“a fee recharging infrastructure open to the public with
non-restricted access”.
• Tariff of recovery of costs as calculated in accordance with the
energy (price in €/kWh), valid for all business models and
actors in the pilot projects.
• The interim regulatory regime enables and encourages the
establishment and dissemination of pilot projects. However a
medium-term stable framework for technological solutions and
industrial and managerial plans has yet to be defined.
• The decision also enables many different parties to carry out
pilot projects in their roles as:
Service providers Electricity distribution companies (DSOs)

29. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 29
GENERAL PRINCIPLES FOR
THE SPECIAL PROVISIONS
• Principles of AEEG decision ARG/elt 136/10:
– Non-discrimination between subjects and technical and
organisational solutions
– Parties use open and existing industry standards
– Commitment to comply with European or international
performance standards when available
– Transparency in the criteria for allocation of costs
– Certainty of tariff structure
– Correlation between the degree of socialisation of cost
and level of information made publicly available
– Minimize the managing burden in contractual
relationships between the various entities in the regulated
sector

30. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 30
DEMONSTRATION PROJECTS AND
INCENTIVES FOR SMART GRIDS
• Electric vehicles matter intersects
with the development of electricity
networks on issues such as:
– Storage services necessary for
decoupling the vehicle
recharging network commitment
– Integration with intermittent-
sources of production
– into perspective, the VE are
resources for balancing the local
network and for the energy
market zones (V2G)
• Incentives for smart grids
– Demonstration Projects in the current III regulatory
period (AEEG decision ARG/elt 39/10)
– Making arrangements in the IV regulatory period

31. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 31
RECHARGING SYSTEMS
SUMMARY AND OUTLOOK
Private recharging points – Already settled
• Dedicated points of delivery and meters
• Transport tariff: LV other uses
Public recharging points – Start testing
• Implementation of a range of business models
• During the testing phase, a recharging service can
be offered both by the local distribution operator
(DSO) and by industrial service provider or other
company;
• the Authority will publish a consultation document
seeking views from to all stakeholders
• Provision by November 2010
In both cases:
• Energy Price Model: Market price (IPEX)

32. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 3232
FINALLY, TWO UNANSWERED
QUESTIONS ALWAYS OPEN…
How smart is smart enough?
It merits investigation whether there are
less expensive alternatives that could
provide nearly equal benefits.
fonte: OECD, February 2010
Innovation, although good and simple, is hard to spread...
because:
“All truth passes through three stages: First,
it is ridiculed; Second, it is violently opposed;
Third, it is accepted as self-evident.”
(A. Schopenhauer)

33. The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 3333
Thank you for your attention
and comments
dbonafede@autorita.energia.it
www.autorita.energia.it
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