how to accelerate the deployment matthias kurth bundesnetzagentur

www.bundesnetzagentur.de

How to accelerate the deployment of Smart Grids: Policy and Regulatory issues

Matthias Kurth, President of the Bundesnetzagentur ETNO Workshop: Towards a low carbon economy – Brussels, 23 Nov. 2011

________________ © Bundesnetzagentur 2

Agenda

I. Situation of the Telecommunications Networks

II. Situation of the Electricity Networks

III. Why is it important to capitalize synergies between electricity and telecommunications networks

1. Synergies for the Telecommunications Sector

2. Synergies for the Energy Sector

IV. Conclusions


Convergence

The convergence between electricity and telecommunications networks is already there:

Electricity networks need the Know-How of the ICT industry and the use of telecommunications infrastructure

to realize a Smart Grid to integrate the amount of produced energy by renewables

to realize Smart Market including Smart Metering for a two-way digital communication between producers and consumers

Telecommunications networks need to be expanded to promote broadband

Synergies with the existing infrastructure owned by Telco- and Energy network operators

Joint roll-out of new electricity and telecommunications networks to create synergies and to reduce the costs


I. Situation of the Telecommunications Networks


Broadband penetration rates in Europe

Source: EUROPEAN COMMISSION, Digital Scorecard


Access line capacity 2010 100 Mbit/s und mehr: 0,1%

über 2 Mbit/s bis unter10 Mbit/s: 45%

genau 2 Mbit/s:13%

30 Mbit/s und mehr bis unter100 Mbit/s: 3%

größer 144 Kbit/s bis unter2 Mbit/s:14%

10 Mbit/s und mehr bis unter30 Mbit/s: 25%

Access Line Capacity 2010


Political Agenda

The Federal Government‘s Broadband Strategy of February 2009

• Broadband access shall be available nationwide by the

end of 2010 • A total of 75 percent of households shall be provided with

access with transmission rates of 50 MBit/s by 2014 and nationwide as soon as possible

Digital Agenda of the European Commission of August 2010

• 100% coverage of broadband access of EU citizens by 2013 • Provision of all EU citizens with broadband access with at least

30 MBit/s and 50% of European households with at least 100 MBit/s by 2020


German Broadband Strategy

BNetzA‘s tasks according to Federal Government‘s Broadband Strategy

Growth and innovation oriented regulation

Key elements on the regulatory framework for the development of modern telecommunications networks and the creation of high speed broadband infrastructures (published in March 2010)

Clarification of the fundamental regulatory and competition law issues related to cooperation projects (together with the Federal Cartel Office)

Developing principles for consistent rates regulation, with a view also to encouraging efficient infrastructure investment (published in November 2009)

Setting up of an (passive) infrastructure map (data base)

Supporting spectrum policy/regulation (auctioning of the digital dividend)


II. Situation of the Electricity Networks


Government Energy Policy: Share of electricity produced of renewables shall be

35 % by 2020

80 % by 2050

Renewable Energy Act (EEG) designed to foster this process

Renewable Energy Targets Electricity Production

Electricity Mix Germany 2010 Renewables: 16.4 %

Mineral Oil; 1,2%

Other; 3,9%

Nuclear; 22,6%

Black Coal; 18,7%

Natural Gas; 13,6%

Wind; 5,9%

Biomass; 5,4%

Water; 3,2%

Photovoltaics; 1,9%

Brown Coal; 23,67%


Development of Renewable Energy Production in Germany

Entwicklung der installierten Leistung der nach EEG vergüteten Anlagen

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

44

2002 2003 2004 2005 2006 2007 2008 2009

GW

SolarBiomasseWasserGasWind

Water Biomass


Key challenges: integration of the renewables

Quelle: Alpha Ventus

Quelle: VDE

Quelle: Vattenfall

Quelle: Spiegel Quelle: Kurier.at

Quelle: sigma

wind energy

storage power stations

grids

CCS systems

climate-neutral buildings

biomass power plants

Electric mobility

photovoltaics


Changes in Generation Require New Grids

Traditionally, fossil and nuclear

production plants have been built close to where the energy was actually needed.

Renewable energy production develops mainly in Northern

Germany


Grid Expansion

To achieve the successful integration of renewable energy grid expansion is a major challenge

Grid expansion is also necessary for Cross Border Electricity Trade

Energy Infrastructure package by the European Commission


Political Agenda

Energy Concept for an Environmentally Sound, Reliable and Affordable Energy Supply

• Renewable energies as a cornerstone of future energy supply

• An efficient grid infrastructure for electricity and integration of renewables

• Review due to the change of priorities after Fukushima led to new energy policy: phase-out of nuclear power plants until 2022

Energy Strategy 2020 of the European Commission of November 2010

• Pan-European integrated energy market with infrastructures • Europe's leadership in energy technology and innovation • Safe, secure and affordable energy through active consumers

(Smart grids/ smart meters) • Communication from the Commission „Smart Grids: from

innovation to deployment“, 12 April 2011, COM(2011) 202 final

http://ec.europa.eu/energy/strategies/2010/2020_en.htm�


III. Why is it important to capitalize synergies between electricity and telecommunications networks


Need to expand and upgrade infrastructure

Challenges are similar: expand and upgrade infrastructure: Energy networks need to be expanded and upgraded in order to integrate

renewables Telecoms networks need to be expanded and upgraded to highspeed

broadband networks (NGA) Synergies between smart grid and broadband roll-out Railway networks need to be modernized to cope with increasing traffic and

ensure climate/environmental friendly traffic handling Postal networks need to be modernized to ensure logistics are matching the

needs of industry (just in time delivery) and consumers (increasing e-commerce ordering)

All of these modernized infrastructures will generate spill-over effects to other sectors in form of increased productivity, i.e. are an enabler of economic growth and well-being for users


Synergies for the Telecommunications Sector

Capitalising on synergies of other infrastructure projects:

Up to 70 percent of the costs of deploying broadband infrastructure in the fixed network are civil engineering costs (esp. digging costs).

Significant cost reduction by co-operation between providers of different infrastructures (infrastructure-sharing)

Cost reduction makes a faster roll-out also in rural or remoter areas possible

BNetzA decided to recognize costs for fibre roll-out of electricity grid operators that are made to install a smart grid in the costs of network tariffs

BNetzA’s experts for telecommunications standardisation are deeply involved in the work and discussion to develop smart grids in the energy sector. The CENELEC currently discusses smart grids standards, important to link the two issues.


Infrastructure Map

Data base aggregating existing and planned infrastructure

Municipalities and companies interested in the Infrastructure map can get information on existing infrastructure which can be used for new infrastructure

This way potential for synergies between different infrastructures can be used

Many companies and organisations take an active part in the project and provide detailed data

Framework and standard agreements are agreed between all relevant public and private organisations

Since December 2009 (starting point) about 350 requests mainly in connection with municipal fibre roll out


Example for an information given to an applicant


Synergies for the Energy Sector

Foto: derwesten.de

Use of existing communication infrastructure especially for Smart Market but as well for Smart Grid

Acceptance of network expansion

Joint network expansion

Development of an Infrastructure Map


Smart Market Design

Smart Metering

Smart Consumption Smart Storage

Smart Generation

Smart Market Design

Fotos: pixelio.de


Integration of Smart Meters

Intersectoral use of the Meters (gas, water, heating) and integration of further services

Use of existing communication infrastructure (DSL, GSM, UMTS, LTE…)


Develop smart grids and markets

Know-how of energy and

ICT industry is needed

Bildquelle: www.pixelio.de

Cooperation between energy- and ICT industry

Use of intelligent Telecommunications Networks to make flexible energy consumption and billing possible


Example of joint network expansion

Acceptance of costs for fibre and ducts within the expansion of the electrical power networks

is possible, but only if it does not lead to a parallel infrastructure

decision on a case by case basis

future revenues of the provision of fibre and ducts must lead to cost reduction of the electrical power network

the provision shall be transparent and non discriminatory

pragmatic approach to foster broadband expansion

Quelle: Pixelio

Quelle: DerWesten

Quelle: abendblatt.de


Acceptance of network expansion

Local resistance complicates and delays the network expansion

NIMBY (Not In My Backyard) and

BANANA (Build Absolutely Nothing Anywhere Near Anyone)

Planning authorities and companies should become even more open

Transparent procedures and discussions of alternatives

Acceptance can be increased by exploiting the synergies

Quelle: Welt


Conclusions

Electricity and Telecommunications Networks are converging

It is important to identify possible synergies

Capitalizing these synergies will help to overcome obstacles, reduce cost for investment through infrastructure sharing and foster network rollout in the Telecommunications and the Energy Sector

Only with Telecommunications Networks intelligent market and grid can be realized


Many thanks for your attention!

how to accelerate the deployment matthias kurth bundesnetzagentur

Technology

energy strategy

produced energy

mbits bis unter10 mbits

energy sectoriv

new electricity

broadband synergies

least30 mbits

government energy policy