EU policy and the way forward for smart meters and smart grids

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1 Transmission & Distribution SMART GRIDS Europe 2012 Amsterdam 9-11 October 2012 EU policy and the way forward for smart meters and smart grids Manuel Sánchez, PhD Smart Grid Team Leader European Commission, DG ENERGY

2 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

3 Directives 2009/72/CE 2009/73/CE 13 July 2009 Annex I.2 Legal basis for the roll-out MSs ensure the implementation of intelligent metering systems that shall assist the active participation of consumers in the electricity supply market. It may be subject to an economic assessment of all the long-term costs and benefits, no later than September 3, MSs shall prepare a timetable with a target of up to ten years for the implementation of intelligent metering systems. When is assessed positively, the provision for electricity states that at least 80% of consumers shall be equiped with intelligent metering systems by 2020

4 EC Recommendation for the roll-out

5 Privacy and security 1. Data Protection Impact Assessment: DPIA Template 2. DP by Design / by Default : MS should encourage: Network operators to incorporate PbyD in smart grid and smart metering deployment ESOs to give preference to PbyD reference architectures Use of privacy certification mechanisms and data protection seals and marks, provided by independent parties 3. Data Protection: anonymous, data minimisation, responsibilities of data controllers and processors 4. Security: Data Protection by Design, «Security relevant» standards of European Standardisation Organisations in M/490 and International security standards; data breach notification. 5. Information and Transparency: Network operators publish information policy for each of their applications

6 EC Recommendation - Common Minimum Functionalities CONSUMER METERING OPERATOR COMMERCIAL ASPECTS OF SUPPLY SECURITY AND DATA PROTECTION Provide readings directly to the consumer and/or any 3 rd party Update the readings frequently enough to use energy saving schemes Allow remote reading by the operator Provide 2-way communication for maintenance and control Allow frequent enough readings to be used for networking planning Support advanced tariff system Allow remote ON/OFF control supply and/or flow or power limitation Provide secure data communications Fraud prevention and detection DISTRIBUTED GENERATION Provide import/export and reactive metering MS are encouraged to go beyond these common minimum functionalities in their CBA scenarios.

7 Roll-out for next 10 years (electricity only) Sweden Completed Italy Completed Finland Mandated Malta Mandated Norway Mandated Austria Under Discussion Spain Mandated France In Planning Stage Great Britain Mandated Netherlands In Planning Stage Denmark Under Discussion? 2020 Ireland Under Discussion 2012? Romania Under Discussion Poland Under Discussion

8 Collecting CBAs and analysing results The EC is receiving notifications regarding the plans for the roll-out in MSs and preparing exchange of views with national experts The EC will proceed with a thorough assessment of the cost-benefit analyses, including with regard to the Commission's Recommendation 2012/148/EU, and later with their comparative evaluation as well as of the Member States' roll-out plans Full collaboration of MSs is essential Initial status will be presented and discussed at the London Forum in November Final analysis to be issued by middle of the next year

9 The way forward EU policy drivers demand new requirements in energy supply and retail markets More decentralized mix and active consumer Increase flexibility and quality Appropriate incentives Matching /ICT-Telco Exploitation the potential of Demand Response The advent of "smartness" calls for a revision of the market model and the options for existing, viable business models and consumer services in the energy sector

10

11 Smart Grids Security Flexibility Integration Competity Complexity? Incentives? 11

12 EU Policy drivers demand new requirements in energy supply The future energy supply scheme will change dramatically: more decentralized mix and active customers Smart Grid infrastructures will fulfil future customer needs and increase flexibility, but have to respect quality of supply and regulated conditions The complexity of middle and low voltage grids will increase and change the way how to operate a DSO grid effectively Appropriate incentives should be developed and proved and ICT/Telco - the challenge is the matching of both worlds

13 EU Policy drivers demand new requirements in the retail market Active consumers are increasingly important A competitive retail market is vital for tapping the full potential of energy efficiency, demand response and distributed generation New roles for regulators allow better regulatory framework, including tariff structures Revision of the rules and responsibilities to accomodate new demands might be part of the solution ICT is a fundamental part of this solution

14 Thinking new opportunities The advent of "smartness" calls for a revision of the market model and the options for existing, viable business models and consumer services in the energy sector Consumer-centred vision, at the heart of the liberalisation, should be reflected in business strategies Industry, policy-makers and regulators to think about possible alternatives to existing setup of the energy distribution side

15 Potential options enabling Smart Grid Potential option BAU Short description Central vs. Decentral system Existing vs. new actors Type of data sharing Overview of regulatory framework and models adopted in in MS DSO market facilitator Data Hub operated by 3rd party Data Access Point Manager DAM DSO responsible for collection and share data New Data Facilitator to access control & integration of sharing data New parties for distribution, transaction, providing services Central + decentral Existing + new Former EG2 Central + decentral New Former EG2 Decentral New Former EG2

16 SG Task Force - Plan of Work for Standards and interoperability Privacy, Data Protection and Cyber-security Validation the M/490 Work Plan Monitoring work and deliverables Ensure coordination within and other Mandates Develop a proposal for Privacy and Data Protection Impact Assessment Template Develop a cyber-security assessment framework Regulation Define a few reference market models Examine the potential implications for the regulatory frameworks Infrastructure Establish a process for identifying projects of common interest Organise structures and procedures

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