Next strategic Grid integration challenges Towards next Digital Grids 4.0. Laurent SCHMITT, ENTSO-E Secretary General

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1 Next strategic Grid integration challenges Towards next Digital Grids 4.0 Laurent SCHMITT, ENTSO-E Secretary General

2 Beyond just the EU 2

3 The Energy Transition: What does it mean for Europe? 27% renewables by 2030 = +/- 45% for the power system Wind Hydro potential Solar Sector Coupling: Power Gas Transport Flow North-East South-West Flow North-south Illustration of main RES potential across Europe towards 2030

4 Enabling the 4 th Industrial Revolution with the Clean Energy Package Active customer Scarcity pricing Removal of price caps Develop Policy Regions to promote progress and speed Easier supplier switching Risk preparedness framework European resource adequacy Ambitious Regional Cooperation FUTURE Digital, data-centric system Electrification of transport Engaged prosumers

5 New Prosumer integration strategy Renewable energy units Smart Consumption Sensitivity to price signals Participation to the market in all time frames, including balancing & ancillary services New role for aggregators 5

6 6 New Renewable integration strategies Improved renewable controllability Fault ride-through Grid Curtailment Integrated Renewable-Storage dispatch Volt/VAr dispatch through Smart Inverters Advanced Inertial response New Generation dispatch strategy Compound real-time renewable forecasting Stochastic Economic Dispatch Storage & Demand Response controls Artificial Intelligence Based Load Forecasting New Distributed Energy Resources aggregation DER Virtual Power Plant participation into Markets & Grid ancillary services Optimal Gridedge connectivity through Microgrids beyond LMP arbitrage

7 Distributed Generation Controller Distribution Automation Smart Storage Smart Inverters New Digital System of System Integration Utility Back Office IT ERP CIS MDM Utility ESB Utility Cloud Utility Control Room on Prem (OT) New App Store CIM/JMS WAM App DERMS App Grid Domain Services Utility Integration bus Data Fabric Time Series Asset App Catalog API to customer Historian Adaptor for 3 rd party Apps DMS adaptor Protocols (Modbus, DNP3, OPC-UA, Sep-2, IEC61580,.. New Layered Optimisation framework Smart Meter DRMS Storage Demand Response DG Internet 900MH z Other System MQTT MDS Orbit 900 Verizon Field Agent IEC61860/ DNP3 Controller DDS IEC61850 Digital Substation Integrated Industrial Coms 900MH z MDS Orbit 900 4G/LTE Field Agent Controller DG Modbus/ DNP3 CIM/JMS Wifi Broker Distributed Application Function Blocks CIM/HTTP,JMS 900MH z MDS Orbit 900 Internet Field Agent MDS Orbit 900 Grid Situational Awareness Wifi (<500m), 900 MHz (>500m) Distributed Field Bus (DFB) CIM Controller SEP2/IEC61850 Pup / Sub data exch. <1 mile : 200 ms -1 Sec >1 mile: 1 sec 1 min Field Agent Inverter SEP2/IEC61850 Grow Agility in complex IT environments Private Cloud Platform as a Service Broker APM App DFB MDS Orbit 900 Field Agent Inverter Invertor Option SEP2/IEC61850

8 New Strategic investments towards Digital Energy Data Hubs & App Stores Reference Grid Architecture Model to support next Network Code deployments New Generation Flow Based real-time markets

9 New Market Integration Strategy 1 Phase out of the priority dispatch for renewables 2 Expose mature renewable energy sources to market 3 Renewable energy sources need to have balancing responsibilities 4 Renewables support needs to be market-based 5 Support needs to be coordinated at regional and EU level

10 New sector coupling Power with Gas / Combined Heat & Power Mobility with Power & Gas & Emission Trading TSO-DSO Microgrid coupling at Gridedge through #Blockchain 10

11 New network codes as strategic enablers Network Code implementation is a key priority! CACM Guideline Balancing Guideline System Operations Guideline Ensure market integration and integrity: Optimal capacity calculation Foster interconnection Efficient provision of ancillary services Wholesale/ retail integration 11

12 Next European transformation milestones Intraday coupling go-live Q1/2018 RSCs implemented 12/2018 and Synchronous Area Operational Agreement 03/2019 All connection codes implemented 09/2019 Common platform for balancing implemented Q3/2019 Day-ahead market coupling fully implemented 12/2020 And more to come Integrate wholesale and retail markets Realize demand side response DSO-TSO cooperation Cybersecurity

13 THANK YOU FOR YOUR ATTENTION For more information:

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