rethinking the electricity grid rethinking the electricity grid 14 may 2012 presented by: patricia...
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RETHINKING THE ELECTRICITY GRID
14 May 2012
Presented by:
PATRICIA DE SUZZONIADVISOR TO THE CHAIR OF CRE (French Energy Regulator)
STRIKING A BALANCE
IN THE MIDST OF CHANGE
May 13-16, 2012
Québec City, Québec (Canada)
TODAY’S AGENDA ON SMART GRIDS
ICER report on the regulatory approaches to the implementation of smart meters
The French case: from smart meters to smart grids
Objectives and regulation in the European Union
TODAY’S AGENDA ON SMART GRIDS
The French case: from smart meters to smart grids
Objectives and regulation in the European Union
ICER report on the regulatory approaches to the implementation of smart meters
ICER REPORT ON SMART METERING
ICER: a voluntary framework for cooperation
Implementation of smart meters so far has been a complex task, advice needed
A portfolio of case studies based on jurisdictions with direct experience
6 MATURE MARKETS STUDIED
Electricity and gas (large-size markets): France (35M electricity, 11M gas customers) Italy UK
Electricity (medium-size markets): Canada-Ontario (4,8M customers) Sweden (5,2M) USA- Colorado (3M)
MAIN FINDING 1: LEADERSHIP IS NEEDED
A clear decision on which organisation is leading on smart metering policy is needed at an early stage Government, NRA, commercial body
If commercial body, sound legal and regulatory framework is needed
MAIN FINDING 2: MARKET DESIGN MUST BE CLEAR
Clear roles & responsibilities for market participants Ownership of meters Minimum functionalities of systems Standards to ensure interoperability How and when costs of implementation can be
recovered …
MAIN FINDING 3: SMART METERING PROJECTS SHOULD BE WELL PREPARED
Usefulness of pilot exercises before full implementation
Implementation may take years to be completed
An impact assessment to develop sound policy proposals
The proposed smart meter model should accommodate future developments in technology and market
MAIN FINDING 4: CUSTOMERS HAVE TO BE EMPOWERED
Engagement of
consumers in the
policy-making
process Specific customer protection measures,
e.g. data privacy & cyber security Customers’ need of simplicity with more
complex tariff structure
TODAY’S AGENDA ON SMART GRIDS
ICER report on the regulatory approaches to the implementation of smart meters
The French case :
from smart meters to
smart grids
Objectives and regulation in the European Union
THE FRENCH CASE: A PROACTIVE REGULATOR
CRE created as an independent Authority in 2000
Engaged in smart grids since the beginning
A 2-step approach:
Smart metering Smart grid
SMART METERING AS A FIRST STEP TO SMART DISTRIBUTION GRIDS
Dialogue with stakeholders• Consumer bodies, retailers, DSOs, TSO,
Administration, equipment manufacturers, system integrators
Control of Linky Pilot and cost-benefit analysis 300 000 smart meters 2010/2011
Regulation of roll out July 2011: roll out mandatory for 35 million customers January 2012: minimum functionalities
THE THINK TANK APPROACH
In 2010, CRE organised a conference and as a follow up released « The electricity of the future: a worldwide challenge »
Permanent forum / quarterly workshops
www.smartgrids-cre.fr
HOW TO REGULATE SMART GRIDS
Three key objectives of Smart Grid regulation:
Ensure a fair distribution of added value
Develop / incentivise
investment of general interest
Have a leading / coordination role
TODAY’S AGENDA ON SMART GRIDS
• ICER report on the regulatory approaches to the implementation of smart meters
• The French case: from smart meters to smart grids
• Objectives and regulation inthe European Union
A TOOL TO MEET AMBITIOUS OBJECTIVES
EU energy policy’s 4 key objectives:
Smart grids are a mandatory tool to meet these objectives
Well-functioning markets Security of Supply
Energy efficiency and renewables
Interconnection
HOW TO FINANCE
Major investment but estimates vary• 450€/customer would lead to 115 B€ investment for
EU distribution grids between 2013 and 2023
Business models / scope of regulation / grid tariffs
SMART GRIDS: FROM INNOVATION TO DEPLOYMENT
2011 EC communication No regulation of smart grid infrastructure so far
2009: 80% target by 2020 for electricity smart meters• 2012 EC recommendations to Member States on
minimum functionalities and cost-benefit analyses
Standardisation in progress Role of interconnection and market
mechanisms
Thank you for your attention
www.smartgrids-cre.fr
The ICER Report on Smart Metering is available at
www.icer-regulators.net
THE EU 2020 AGENDATHE LEGAL FRAMEWORK
The Climate-Energy Package (2008)• Increasing renewable energy supply to 20% of total demand• Reducing consumption by 20% with respect to 1990 levels• Reducing greenhouse gas emissions by 20% with respect to
1990 levels
The 3rd Energy Package (2009)• 80% equipped with smart meters for electricity, cost-benefit
analysis conducted by Member States by Sept 2012
The Energy Efficiency Directive revision under discussion (2012)
OVERVIEW OF SMART GRID INVESTMENT AND IMPLEMENTATION ACROSS THE EU
Projects/category Total 277 implementation sites
Inve stments /category Total 3848.7 M€
Project investments (M€)
75
Investments (M€) / No. of project implementation sites per country
Other
Storage
Transmission automation
Home application
Distribution automation
Integrated systems
Smart meters
Source: JRC, IEProjects represented can span over more than one country and can include more than one category. Three projects are not represented in this picture: Kriegers Flak project, a supergrid between Germany and Denmark total investment of 507 M€; smart meter roll-out and AMI in UK, estimated investment of 11897M€; and smart meter roll-out in Sweden, spanning approximately 150 projects and amounting to a total investment of approximately 1500 M€.
APRIL 2011 EC COMMUNICATIONSMART GRIDS FROM INNOVATION TO DEPLOYMENT
Developing common European standards Adressing data privacy and security issues Allowing regulatory incentives for
deployment Ensuring competitive services to
customers Supporting innovation and rapid
application