14 march 2014 EC M.Sanchez - Funsean winter seminar

EnergyEnergyEnergyEnergy
Smart Grids
From innovation to
deployment
Manuel Sánchez, Ph.D.
Team Leader Smart Grids
Directorate General for Energy
European Commission
Fundación para la Sostenibilidad Energética y
Ambiental - FUNSEAM
Madrid, 14 March 2014

2/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–jimenez@ec.europa.eu
Regulation of
Monopolies
Innovation and
Competitiveness
Consumer
empowerment
Primary Energy
Sources
Reliability and
Quality
Capacity
ETS
Climate
Change
20/20/20
InternalM
arket
Security
ofSupply
Sustanability
Energy policy drivers….

….Significant change of energy systems….

Flexibility – What? Who? How?
industry
services
households
Flexibility vs. end-user EE

…..multi-piece puzzles for many players…..
Investment
Needs?
Industry
Incentives?
Consumer
Involvement?
Technology?
ConsumersConsumers
dondon’’t liket like
complexitycomplexity

…..complex vision for other players…..

Central &
dispersed
sources
Smart
materials
and power
electronics
Central & dispersed
intelligence
Seamless integration
of new applications
End user “real time”
Information &
participation
Multi-directional
‘flows’
7
A Smart Grid is an energy network that can cost efficiently integrate the behaviour and
actions of all users connected to it - generators, consumers and those that do both – in
order to ensure efficient, sustainable power system with low losses and high levels of
quality and security of supply and safety.
EU definition of Smart Grids

Six High Level services
Enabling the network to integrate users with new
requirements
Enhancing efficiency in day-to day grid operation
Ensuring network security, system control and
quality of supply
Enabling better planning and future network
investments
Improving market functioning and customer service
Enabling and encouraging stronger and more direct
involvement of consumers in their energy usage and
management

EU Policy Drivers for smart Grids
Transition towards the low-carbon economy
Guaranteeing high security, quality and economic
efficiency of supply in a market environment
Consumer empowerment
- informed and engaged, i.e. interested and
equipped to play an active role in the market
- provided with choice (of suppliers, sources) and the
possibility to exercise the choice
- integrated in energy system so that they can not
only consume but also supply energy

Smart Grids in the EU framework
Legal basis Electricity Directive 2009/72/EC
Energy Efficiency Directive 2012/27/EC
Energy Infrastructure Regulation (EC) 347/2013
Electro-mobility Draft Directive AFI COM(2013)18
Policy
Documents
COM(2011)202 on Smart Grids
COM(2012)663 Recommendation OJ L/73 13/03/2012
COM (2013)7243 on IEM and public intervention
SWD(2013)442 on Demand Side Flexibility

Key Challenges - Smart Grids COM (2011)202

European
Commission
European
Commission
Technology
Supply
Technology
Supply
ConsumersConsumersDSOsDSOsTSOsTSOs
Regulators
ICT&Energy
Regulators
ICT&Energy
•Ad-hoc expert working groups•Ad-hoc expert working groups
High Level
Steering Committee
30+ associations representing all stakeholders
350+ experts form national regulatory agencies and industrial market actors
9 DGs
European Smart Grids Task Force

SG Task Force - Plan of Work for 2012-2014
http://ec.europa.eu/energy/gas_electricity/smartgrids/taskforce_en.htm

Investments in SG projects (2012, excl. metering)
281 SG projects
Ca 1.4bn Demonstration
Ca 0.5bn R&D

60%
459 smart grid projects
45% R&D and 55% Demo & Deployment
37% National and 63% Multinational

Smart metering: Inventory 2011
http://ses.jrc.ec.europa.eu
90 smart metering pilots and roll-outs

18
Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu
EC Recommendation to prepare the roll-out
http://ses.jrc.ec.europa.eu/
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012H0148:EN:NOT

Ten Common Minimum Functionalities

20/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–jimenez@ec.europa.eu 20
Six Ways Smart Metering benefits consumers
Energy Savings
more accurate and frequent consumption data demonstrably
help consumers reduce their consumption and save money
Energy Efficiency
more detailed consumption measurements help consumers
identify opportunities for energy efficiency improvements
Innovative Services
smart meters are indispensable for smart home
solutions/home automation, reducing energy costs
Consumer
Empowerment
switching suppliers, modifying contractual terms, etc.
becomes easier, faster and cheaper
Sustainability
use of local renewable sources and storage potential (micro-
grids), electromobility become easier
Distribution System
Efficiency
management of the distribution systems becomes cheaper
and more effective, leading to lower distribution costs

Basic Advanced Metering Infrastructure
21
Metering
Gateway
Metering
Management
District
Gateway
Energy Management
Gateway
Energy
Management
Home
Automation
Meters

The roll-out of smart metering systems calls for a collaborative
approach of policy-makers, industry and regulators for
consumers' benefit.
Successful roll-out of smart meters opens doors to win-win
situation:
Security of supply through better local balancing
Involvement of consumers in the market (micro-generation, etc.)
Empowerment of consumers through demand response => savings
Cost-efficiencies for DSOs and suppliers and new business opportunities for third parties
Success depends on criteria decided largely by Member States:
Smart Meters functionalities (to include those benefiting also consumers, not just DSOs as
owners/installers of smart meters)
Retail market competition to breed innovative solutions and lower costs
Commission preparing a benchmarking report of the roll-out
Successful roll-out of smart metering is key

Roll out of ELECTRICITY
smart metering by 2020
21 CBAs, 16 MS: wide roll-out
~ 72% EU consumers
195 million meters
€ 35 billion
Smart Meters CBAs

Roll-out of GAS smart
metering by 2020
20 CBA, 7 MS: wide roll-out
~ 40 % EU consumers
45 million meters
€10 billion
Smart Meters CBAs

Country/
Region
Forecast Smart
Grids investments
[billion of EURO]
Smart Grids R&D&D
projects funded by
2010
[billion of EURO]
Millions of Smart
Metering deployed
and/or planned
European
Union
56 by 2020 5.5
45 by 2011
240 by 2020
USA 238-334 by 2030 4.9 8 by 2011
60 by 2020
China 284 by 2020 5.1 360 by 2030
South Korea
16.8 by 2030 0.58
0.5 by 2010
0.75 in 2011
24 by 2020
Australia n/a 0.25 2.4 by 2013 in Victoria
India n/a n/a 130 by 2020
Brazil n/a 0.14 63 by 2020
Japan n/a 0.60 n/a

Final remarks

manuel.sanchez-jimenez@ec.europa.eu
http://ec.europa.eu/energy/index_en.htm
http://ec.europa.eu/energy/gas_electricity/smartgrids/taskforce_en.htm

14 march 2014 EC M.Sanchez - Funsean winter seminar

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