14 march 2014 EC M.Sanchez - Funsean winter seminar

EnergyEnergyEnergyEnergy

Smart GridsFrom innovation to

deployment

Manuel Sánchez, Ph.D.Team Leader Smart Grids

Directorate General for EnergyEuropean Commission

Fundación para la Sostenibilidad Energética y Ambiental - FUNSEAMMadrid, 14 March 2014

2/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–jimenez@ec.europa.eu

Regulation ofMonopolies

Innovation andCompetitiveness

Consumer empowerment

Primary EnergySources

Reliability andQuality

Capacity

ETS ClimateChange 20/20/20

Security of SupplySustanability

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?

Consumers Consumers dondon’’t like t like

complexitycomplexity

…..complex vision for other players…..

Central & dispersedsources

Smart materials and powerelectronics

Central & dispersedintelligence

Seamless integrationof new applications

End user “real time”Information &participation

Multi-directional ‘flows’

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 servicesEnabling 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 GridsTransition 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 frameworkLegal 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 GridsCOM(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

Technology Supply

Technology SupplyConsumersConsumersDSOsDSOsTSOsTSOsRegulators

ICT&EnergyRegulatorsICT&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

European Smart Grids Task Force

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

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

459 smart grid projects45% R&D and 55% Demo & Deployment37% National and 63% Multinational

Investments in SG projects (2013, excl. metering)

Smart metering: Inventory 2011

http://ses.jrc.ec.europa.eu

90 smart metering pilots and roll-outs

18Dr. 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

Metering Gateway

MeteringManagement

District Gateway

Energy ManagementGateway

EnergyManagement

HomeAutomation

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 balancingInvolvement of consumers in the market (micro-generation, etc.)Empowerment of consumers through demand response => savingsCost-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 2011240 by 2020

USA 238-334 by 2030 4.9 8 by 201160 by 2020

China 284 by 2020 5.1 360 by 2030

South Korea16.8 by 2030 0.58

0.5 by 20100.75 in 201124 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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