Digital DSOs: key enablers to move smartly towards the Cities of the future

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1 Digital DSOs: key enablers to move smartly towards the Cities of the future João Torres, Chairman of EDSO for Smart Grids and CEO of EDP Distribuição

2 About EDSO for Smart Grids 33 DSOs 20 countries +350 million customers +7 million km of distribution lines 1

3 About EDP Group and EDP Distribuição EDP Distribuição (2015) 419 Substations Secondary Substations HV/MV network (km) LV network (km) 44 Distributed electricity (TWh) EDPD is the mainland Portuguese DSO, serving more than 6 million consumers HV/MV concession granted by the Government until 2043 Low voltage concessions granted by Municipalities for a period of 20 years 2

4 Index A sector in deep transformation A major energy strategy for Europe Turning European cities into future-proof smart cities Towards a carbon-free and electrified society DSOs to enable the future The evolving roles of digital DSOs Building up the Smart Grid of Things Fostering innovation and implementation Time for action Designing an integrated approach to energy sustainability Setting the Digital DSO s agenda for a successful and sustainable transition Constructing the future together with all key stakeholders Engaging citizens to become active participants in the energy transition 3

5 A major energy strategy for Europe The Energy Union is about energy and at several other policy fields, such as transport, innovation, agriculture, competition, consumers rights, climate action, industry, and so on Interrelatedness, interdependence and the networking of everything also lies behind the Energy Union 4

6 EU approach for turning European cities into future-proof smart cities A smart city is a place where the traditional networks and services are made more efficient with the use of digital and telecommunication technologies, for the benefit of its inhabitants and businesses Several of the priority themes and cross-cutting issues of the Urban Agenda for the EU directly relate to DSOs 5

7 Towards a carbon-free and electrified society that deeply rely on reliable and enabling distribution systems Distributed RES Rising complexity Electrification of society Electric mobility The local dimension Consumer behaviour 6

8 Index A sector in deep transformation A major energy strategy for Europe Turning European cities into future-proof smart cities Towards a carbon-free and electrified society DSOs to enable the future The evolving roles of digital DSOs Building up the Smart Grid of Things Fostering innovation and implementation Time for action Designing an integrated approach to energy sustainability Setting the Digital DSO s agenda for a successful and sustainable transition Constructing the future together with all key stakeholders Engaging citizens to become active participants in the energy transition 7

9 The evolving roles of DSOs DSOs will need to keep leading the transformation towards an Energy Union that is setting challenging goals which will deeply impact on distribution activities Innovation and collaboration between system operators and other stakeholders should be further promoted 8

10 Building up the Smart Grid of Things Smart grids are digital energy networks that can actively enable and integrate local and aggregated user actions, automatically control energy flows, and adjust to flexible energy supply and demand accordingly, guaranteeing a more reliable supply of electricity in a cost and resource efficient way 9

11 Building up the Smart Grid of Things EDPD started to pave the way to the digital energy smart grids of the future in 2007, with its internationally awarded Inovgrid Programme After successfully developing the concept, testing it and assessing the benefits, as well as developing the technology and the market, now it is time to promote the real business integration 10

12 Fostering innovation and implementation through international collaboration DSOs have been taking the lead and investing more than 700 million from 2008 to 2014 to achieve better solutions The vast majority of the investment goes to D&D projects, covering a wide range of subjects, and partnering together with all stakeholders across the energy sector 11

13 All these RD&D initiatives and Smart Grids are laying the foundation for the Cities of the future Behaviours and engagement City planning Scaling up Collaboration and sharing EU R&D roadmap Evolving roles of DSOs 12

14 Index A sector in deep transformation A major energy strategy for Europe Turning European cities into future-proof smart cities Towards a carbon-free and electrified society DSOs to enable the future The evolving roles of digital DSOs Building up the Smart Grid of Things Fostering innovation and implementation Time for action Designing an integrated approach to energy sustainability Setting the Digital DSO s agenda for a successful and sustainable transition Constructing the future together with all key stakeholders Engaging citizens to become active participants in the energy transition 13

15 Designing an integrated approach to energy sustainability in Cities Job growth and entrepreneurship R&D and business innovation Sustainable development Relationship with society InovEconomy InovEnergy SmartER Grid Information and Communication Technologies Smart public lighting Integration and flexibility Smart framework for services Creativity, sharing and collaboration Education for energy Engagement and active participation Option for sustainability InovPeople InovLiving Smart mobility Energy and life models Smart buildings & homes Smart consumption Energy management 14

16 Setting the Digital DSO s agenda for a successful and sustainable transition Deployment of the Smarter Grids DSO digitalisation Enhancement of technology Market design and relationship with key stakeholders Adapting regulation Engagement of society 15

17 Constructing the future together with all key stakeholders Other utilities Synergies for advanced services Innovative services Accelerating the transition Equipment and SW vendors New products and services International opportunities Competitive advantage and positive differentiation Household consumers Information and energy efficiency Comfort and active market participation Sustainability Industry and commercial consumers Energy efficiency New services Innovation and sustainability Scientific and technological partners Knowledge enhancement Access to new projects and financing opportunities Prosumers Providing flexibility to the system Active market participation Better integration of DER Suppliers, Aggregators and ESCOs New added-value services Growth and sustainability Positive differentiation Government and Regulator Efficiency and sustainability of the system Market and economy growth Benefit society DSO Efficiency Active network management Data handling and market facilitation Municipalities Efficiency and sustainability Integration with own services Speed up innovation and citizen engagement 16

18 Engaging citizens to become active participants in the energy transition Informing Involving Connecting Through smarter grids and the convergence of energy and data, digital DSOs will enable the transition and deliver better services to all players, notably to Citizens and the Smart Cities of the future 17

19 Thank you/obrigado João 18

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