EnergyEnergyEnergyEnergy
Smart GridsFrom innovation to
deployment
Manuel Sánchez, Ph.D.Team Leader Smart Grids
Directorate General for EnergyEuropean Commission
Fundación para la Sostenibilidad Energética y Ambiental - FUNSEAMMadrid, 14 March 2014
2/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Regulation ofMonopolies
Innovation andCompetitiveness
Consumer empowerment
Primary EnergySources
Reliability andQuality
Capacity
ETS ClimateChange 20/20/20
Inte
rnal
Marke
t
Security of SupplySustanability
Energy policy drivers….
3/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
….Significant change of energy systems….
4/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Flexibility – What? Who? How?
industry
services
households
Flexibility vs. end-user EE
5/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
…..multi-piece puzzles for many players…..
Investment Needs?
Industry Incentives?
Consumer Involvement?
Technology?
Consumers Consumers dondon’’t like t like
complexitycomplexity
6/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
…..complex vision for other players…..
7/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Central & dispersedsources
Smart materials and powerelectronics
Central & dispersedintelligence
Seamless integrationof new applications
End user “real time”Information &participation
Multi-directional ‘flows’
7
A Smart Grid is an energy network that can cost efficiently integrate the behaviour and actions of all users connected to it - generators, consumers and those that do both – in order to ensure efficient, sustainable power system with low losses and high levels of quality and security of supply and safety.
EU definition of Smart Grids
8/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Six High Level servicesEnabling the network to integrate users with new requirements
Enhancing efficiency in day-to day grid operation
Ensuring network security, system control and quality of supply
Enabling better planning and future network investments
Improving market functioning and customer service
Enabling and encouraging stronger and more direct involvement of consumers in their energy usage and management
9/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
EU Policy Drivers for smart GridsTransition 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
10/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Smart Grids in the EU frameworkLegal basis Electricity Directive 2009/72/EC
Energy Efficiency Directive 2012/27/EC
Energy Infrastructure Regulation (EC) 347/2013
Electro-mobility Draft Directive AFI COM(2013)18
Policy Documents
COM(2011)202 on Smart GridsCOM(2012)663 Recommendation OJ L/73 13/03/2012
COM (2013)7243 on IEM and public intervention
SWD(2013)442 on Demand Side Flexibility
11/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Key Challenges - Smart Grids COM (2011)202
12/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
European Commission
European Commission
Technology Supply
Technology SupplyConsumersConsumersDSOsDSOsTSOsTSOsRegulators
ICT&EnergyRegulatorsICT&Energy
•Ad-hoc expert working groups•Ad-hoc expert working groups
High Level Steering Committee
30+ associations representing all stakeholders
350+ experts form national regulatory agencies and industrial market actors
9 DGs
European Smart Grids Task Force
13/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
SG Task Force - Plan of Work for 2012-2014http://ec.europa.eu/energy/gas_electricity/smartgrids/taskforce_en.htm
14/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Investments in SG projects (2012, excl. metering)281 SG projectsCa 1.4bn DemonstrationCa 0.5bn R&D
15/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
60%
459 smart grid projects45% R&D and 55% Demo & Deployment37% National and 63% Multinational
Investments in SG projects (2013, excl. metering)
16/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Investments in SG projects (2013, excl. metering)
17/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Smart metering: Inventory 2011
http://ses.jrc.ec.europa.eu
90 smart metering pilots and roll-outs
18Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–[email protected]
EC Recommendation to prepare the roll-out
http://ses.jrc.ec.europa.eu/
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012H0148:EN:NOT
19/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Ten Common Minimum Functionalities
20/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected] 20
Six Ways Smart Metering benefits consumers
Energy Savings more accurate and frequent consumption data demonstrably help consumers reduce their consumption and save money
Energy Efficiency more detailed consumption measurements help consumers identify opportunities for energy efficiency improvements
Innovative Services smart meters are indispensable for smart home solutions/home automation, reducing energy costs
Consumer Empowerment
switching suppliers, modifying contractual terms, etc. becomes easier, faster and cheaper
Sustainability use of local renewable sources and storage potential (micro-grids), electromobility become easier
Distribution System Efficiency
management of the distribution systems becomes cheaper and more effective, leading to lower distribution costs
21/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Basic Advanced Metering Infrastructure
21
Metering Gateway
MeteringManagement
District Gateway
Energy ManagementGateway
EnergyManagement
HomeAutomation
Meters
22/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
The roll-out of smart metering systems calls for a collaborative approach of policy-makers, industry and regulators for consumers' benefit.Successful roll-out of smart meters opens doors to win-win situation:
Security of supply through better local balancingInvolvement of consumers in the market (micro-generation, etc.)Empowerment of consumers through demand response => savingsCost-efficiencies for DSOs and suppliers and new business opportunities for third parties
Success depends on criteria decided largely by Member States:Smart Meters functionalities (to include those benefiting also consumers, not just DSOs as owners/installers of smart meters)Retail market competition to breed innovative solutions and lower costs
Commission preparing a benchmarking report of the roll-out
Successful roll-out of smart metering is key
23/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Roll out of ELECTRICITY
smart metering by 2020
21 CBAs, 16 MS: wide roll-out
~ 72% EU consumers
195 million meters
€ 35 billion
Smart Meters CBAs
24/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Roll-out of GAS smart
metering by 2020
20 CBA, 7 MS: wide roll-out
~ 40 % EU consumers
45 million meters
€10 billion
Smart Meters CBAs
25/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
26/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Country/Region
Forecast Smart Grids investments[billion of EURO]
Smart Grids R&D&D projects funded by
2010[billion of EURO]
Millions of Smart Metering deployed
and/or planned
European Union 56 by 2020 5.5
45 by 2011240 by 2020
USA 238-334 by 2030 4.9 8 by 201160 by 2020
China 284 by 2020 5.1 360 by 2030
South Korea16.8 by 2030 0.58
0.5 by 20100.75 in 201124 by 2020
Australia n/a 0.25 2.4 by 2013 in Victoria
India n/a n/a 130 by 2020
Brazil n/a 0.14 63 by 2020
Japan n/a 0.60 n/a
27/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
Final remarks
28/28Dr. Manuel Sánchez Jiménez © European Commission 2014 manuel.sanchez–[email protected]
http://ec.europa.eu/energy/index_en.htm
http://ec.europa.eu/energy/gas_electricity/smartgrids/taskforce_en.htm