Perspectives and actions for the implementation of Smart Grids into the internal energy market

Transcription

1 Perspectives and actions for the implementation of Smart Grids into the internal energy market EUTC Annual meeting Budapest, 3-6 November 2009 EUROPEAN COMMISSION Dr. Manuel Sánchez Jiménez Policy Officer for Electricity and Gas Markets European Commission

2 Content.The policy drivers towards smart grids.third Energy Package contribution.smart Grids: challenges and actors.what European Commission is doing?.final remarks and next steps 2/30

3 The electricity grid Generation Transmission Distribution Customers Net Generation Capacity +650 GW Peak Demand ~450 GW RES and DER TSOs HEV-HV lines km 5 synchronous areas More than 3500 DSOs MV/LV lines km Network losses ~7 % Citizens served +500 millions Consumption TWh/year 3/30

4 The policy drivers ( Energy package.energy and climate package and 20/20/20 vision.2 nd Strategic Energy Review.Green paper «Towards a secure, sustainable and competitive European energy network» 4/30

5 The policy drivers/cont..the low-carbon and renewable generation targets, coupled with system efficiency, reliability and internal market development objectives, require extensive changes to the power grids..the future grids must fully exploiting the use of both large centralised generators and smaller distributed power sources throughout Europe. 5/30

6 What are Smart Grids?.European Technology Platform defines Smart Grid as an electricity network that can intelligently integrate the actions of all users connected to it generators, consumers and those that do both- in order to efficiently deliver sustainable, economic and secure electricity supplies.the grid becomes smart because it not only transport electricity but also information will therefore become an active part of the electricity supply system 6/30

7 Smart Grids : digital grid Digital switching networks Remote sensing and monitoring in wires and transformer centres Fault detection Devices for automated fault repair Embedded distributed intelligent at retail market level 7/30

8 Smart Grids some functionalities Transactive coordination of the system Interconnection of Distributed Energy Resource Integration of Prosumers Demand response automatisation to dynamic prices and variable incentives 8/30

9 European Technology Platform and Smart Grid Working Groups since /30

10 Content.The policy drivers towards smart grids.third Energy Package contribution.smart Grids: challenges and actors.what European Commission is doing?.final remarks and next steps 10/30

11 Third Energy Package new regulatory framework (OJ L August 2009) powers for national regulators» Monitoring, investigations, enforcement.regulatory Agency at EU level (ACER)» Co-ordination of national regulators, Advice to EC.Effective unbundling of networks» Ownership Unbundling, ISO, ITO.Cooperation of network operators (ENTSO)» Development of harmonised network rules.retail Market measures» New roles on consumer protection and monitoring 11/30

12 Take long-term objectives Regulators and Network Operators (Art 12, 25 and 35).Promoting a competitive, secure and environmentally sustainable internal electricity market within the Community.Ensuring appropriate conditions for the secure, effective and reliable operation of electricity networks, taking into account long-term objectives.ensuring that system operators and system users are granted appropriate incentives, in both the short and the long term, to increase efficiencies in system performance and foster market integration; 12/30

13 Retail Market Issues: a major role for the DSO.Published rules on the roles and responsibilities of all market players.information for consumers: European Energy Consumer Checklist.New deadlines on switching, 3 weeks, and receipt of final bill, 6 weeks..consumer access to consumption data.implementation of Smart Metering.Promotion of Smart Grids 13/30

14 Rollout of Smart Metering.Strong support from the European Parliament.Declaration by the European Commission to help with interpretation.assessment before 3rd September 2012 of long term costs and benefits.those positively assessed to be installed within 10 years.otherwise: 80% by First step towards Smart Grids 14/30

15 Statements on Smart Grids Directive 2009/72/EC of 13 July 2009 Recital 27 Member States should encourage the modernisation of distribution networks, such as through the introduction of smart grids, which should be built in a way that encourages decentralised generation and energy efficiency. Article 3, 11 In order to promote energy efficiency, Member States, or where a Member State has so provided, the regulatory authority shall strongly recommend that electricity undertakings optimise the use of electricity, for example by providing energy management services, developing innovative pricing formulas or introducing intelligent metering systems or smart grids, where appropriate. Annex I: Measures on Consumer Protection and preventions for the smart meters assessment by 2012 and roll-out by /30

16 Content.The policy drivers towards smart grids.third Energy Package contribution.smart Grids: challenges and actors.what European Commission is doing?.final remarks and next steps 16/30

17 Challenges and actors..there is a global recognition of the benefits towards implementation of Smart Grids for all actors involved in a lower-carbon market.it is also recognised that a widespread rollout of «Smart» is technically possible during the next decade.but how this evolution is going to take place in practice is complex and not fully clear for the time being 17/30

18 Challenges and actors/cont..why its large-scale deployment has not yet happened?. Some reasons: Limited pilot experiences so far Limited statistical significance of the quantification of benefits achieved in these experiences Existing uncertainties regarding the global investments needed, the new market models and the technology needed.key challenges for the Smart Grid deployment are largely of regulatory nature, but to a lesser extent may be influenced by research and development issues and lack of suitable demonstration pilot projects 18/30

19 Challenges and actors/cont..network owners and operators are in a position to initiate the transition towards Smart Grids and will be responsible for most of the investments..this requires the support of regulators to provide incentives and security for the investments..european-scale Public-private partnerships could provide an important role take the first steps..the 3rd Energy Package provides the appropriate environment for the implementation of Smart Grids across Europe and its provisions support it to a large extent by /30

20 Content.The policy drivers towards smart grids.third Energy Package contribution.smart Grids: challenges and actors.what European Commission is doing?.final remarks and next steps 20/30

21 What is doing the European Commission?.The implementation of more active transmission and distribution systems in the form of Smart Grids is central to the development of the internal market for energy.research and Pilots Actions are growing since 2000 under European Union s Framework Programmes for R&D and CIP..European Technology Platform Smart Grids, is supported by the European Commission since /30

22 . Task. A. European What is doing the European Commission? - cont. Force to advice the Commission on policy and regulatory directions at European level and to coordinate the first steps towards the implementation of Smart Grids under the provision of the Third Energy Package. From end 2009 to middle mandate for European Standards to enabling interoperability of utility smartmeters has been launched for Industrial Initiative on Electricity Grids under the SET Plan for the deployment of half of the EU network operating on the smart grid principle by /30

23 Working European standards 1. M/441 CEN, CENELEC and ETSI Communication and interoperability of Smart Metering Networks Potential additional functionalities for Smart Meters 1. Remote reading of meteo registers and a set of market actor(s) 2. Two-way communication between metering and a set of market actor(s) 3. Support advanced tariffing and payment systems 4. Allow remote disablement and enablement of supply 5. Communicating with individual devices within the home 6. Provide information via portal/gateway to in-home display 2. Electric vehicle charging infrastructure 23/30

24 European Electricity Grid Initiative 24/30

25 European Electricity Grid Initiative 25/30

26 Task Force for Smart Grids Florence Forum London Forum High Level Steering Committee Ad-hoc expert working groups 26/30

27 Main Milestones of Task Force 27/30

28 Content.The policy drivers towards smart grids.third Energy Package contribution.smart Grids: challenges and actors.what European Commission is doing?.final remarks and next steps 28/30

29 Final remarks.present EU targets require changes to the grids. Smart Grids solutions embrace the changing structure of generation, market and use of electricity..this evolution is a complex subject and a true industrial take-up has not been happening to date. It requires a coordinated approach addressing various issues and all the actors..key challenges are of regulatory nature..the Third Energy Package provides the appropriate environment for the implementation of Smart Grids across Europe and its obligations support it to a large extent by A new Task Force has been launched to set up the policy, further regulation recommendations and coordinate the first steps towards the implementation of Smart Grids. 29/30

30 Questions? 30/30