Update on Smart Grid Deployment in the EU. Dr.-Ing. Manuel Sánchez Jiménez Team Leader Smart Grids Directorate General for Energy European Commission

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1 Update on Smart Grid Deployment in the EU Dr.-Ing. Manuel Sánchez Jiménez Team Leader Smart Grids Directorate General for Energy European Commission Energy

2 SG related EU legislation & policy documents Electricity and Gas Directives 2009/72/EC and 2009/73/EC Energy Efficiency Directive 2012/27/EC Energy Infrastructure Regulation (EU) 347/2013 Recommendation 2012/148/EU on smart metering roll-out Recommendation 2014/724/EU Data Protection Impact Assessment Template COM(2011)202 on Smart Grids SWD(2013)442 on Demand Side Flexibility COM(2014) 356 Benchmarking Report on Smart Metering & accompanying SWDs COM(2015)080 Energy Union with a Forward-Looking Climate Change Policy COM(2015) 339 Delivering a New Deal for Energy Consumers COM(2015) 340 Launching the public consultation process on a new energy market design 2/14

3 Smart metering provisions Directives 2009/72/EC and 2009/73/EC (Annex I.2) Smart metering for the active participation of consumers May be subject to an economic assessment of long-term costs & benefits by Timetable up to 10 years for implementation For electricity: when positively assessed, at least 80% of consumers equipped with smart metering by 2020 Ensure interoperability and use appropriate standards 3/14

4 Commission Recommendation 2012/148/EU of 9 March 2012 on preparations for the roll-out of smart metering systems I. Data protection and security considerations II. Methodology for the economic assessment of the long-term cost and benefits for the roll-out of smart metering systems III. Common minimum functional requirements for smart metering systems for electricity 4/14

5 Minimum functionalities for smart metering roll-out Market actor Functionality Market aspects Functionality Customer Metering operator A B C D E Provide readings directly to the customer and any third party designated by the consumer Update the readings referred to in point (a) frequently enough to allow the information to be used to achieve energy savings. Allow remote reading of meters by the operator Provide two-way communication between the smart metering system and external networks Allow readings to be taken frequently enough for the information to be used for network planning Commercial aspects of metering supply Security and data protection Distributed generation F G H I J Support advanced tariff systems Allow remote on/off control of the supply and/or flow or power limitation Provide secure data communications Fraud prevention and detection Provide import/export and reactive metering 5/14

6 Cost Benefit Analysis in 2014: 250million - 45 billions 6/14

7 Cost Benefit Analysis in 2015: more lessons learned 7/14

8 Positive evolution since the benchmarking study in All 17 MS plan to provide reading directly to consumers (USB, web, etc.) - 14 MS frequent update readings: 15% from EU - 12 MS support advance tariff systems - Majority MS intents to roll-out interfaces H1 or H2, but not improve interoperability on the H interfaces 8/14

9 SGTF-EG1 Recommendations Commission to monitoring the progress in roll-out regarding the common minimum recommended functionalities and H interfaces in a new benchmark in For those 3 Member States that do not intend to implement frequent update readings, it is recommended to carry out an Impact Assessment for having or not such functionality and putting in place the required interfaces. For those 5 MS that do not support the functionality for advance tariff systems, check how consumers will be able to check their consumption per tariff zone and how local Demand Response applications would get the tariff information. More attention should be drawn to the approach of reaching interoperability on various layers through profiles/companion standards. It is also recommended to analyse the required functionality for the architecture used for management of flexible demand, evaluate current standards and the conditions for testing/certification of the interfaces. 9/14

10 Commission Recommendation of 10 October 2014 on Data Protection Impact Assessment Template for Smart Grid and Smart Metering Systems The DPIA Template is an evaluation and decisionmaking tool which helps entities to identify and anticipate risks to data protection, privacy and security. The DPIA provides guidance to help ensure protection of personal data and privacy in the deployment of smart grid applications and systems and smart metering roll-out. Two years test phase to collect and publish industrial trial test 10/14

11 Recent policy drivers Energy Union Security, solidarity and trust Integrated European market Energy Efficiency Summer package Market Design Initiative "New Deal" for Energy Consumers ETS reform Energy Labelling Decarbonisation of the economy R&D&i and competitiveness 11/14

12 Summer Package A challenging process ahead Assessment of status, good practices and barriers Definition of policy options to enhance flexibility markets Impact assessment of options Legislative proposal by the end of /14

13 Smart Metering Systems enables demand side flexibility 13/14

14 14/14

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