smart grids for smart markets - cedec · system operators (tsos) will invest in smart grids to...

SMART GRIDS FOR SMART MARKETS

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TABLE OF CONTENTS 1 INTRODUCTION 10

1.1. What are Smart Grids? 12

1.2. Why Smart Grids? 12

2. INCREASING SYSTEM FLEXIBILITY 14

Balancingsupplyanddemandbyintegratingdistributedenergyresources

2.1.Integrationofrenewableenergysources 16

2.2.Storage 17

2.3.PowertoGas 18

2.4.Electricvehicles 18

2.5. Smart meters 19

2.6.Demandresponse:newservices 20

3. LIFTING BARRIERS 21

Tothedeploymentofsmartgrids

3.1.Regulatoryframeworks 22

3.2.Financialbarriers:fromresearchtodeployment 24

3.3.Consumeracceptance 25

3.4.Technicalstandards 25

3.5.Marketstructures 26

4. FACILITATING THE MARKET 27

HowactiveDSOswilloperatethesmartgrid

4.1. System management 29

4.2.Datamanagement 29

4.3.Metering 30

4.4.Electricvehiclescharginginfrastructure 30

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EXECUTIVE SUMMARY Thispaperoutlinesthechangingenergylandscapeandthemanifoldadvantagessmartgridsentailforconsumers,networkoperators,suppliers,renewableenergygenerators,new servicesproviders, theenvironment and theeconomy. Smart grids, especially ondistributionlevel,willhaveasignificantimpactontheenergylandscape.Theyfacilitatetheintegrationofdistributedenergyresources(DER)suchasrenewableenergysourcesand the adaptation of demand patterns, forming a central part of a sustainable, decentralised,participatory,secureandsafeenergysystemofthefuture,whichhelpstoempowertheconsumerandcorrespondstolocalneeds.Asimportanttoolsforregionaldevelopment,smartgridswillhavepositiveimpactsonlocaljobs,economicactivitiesandinfrastructures.

Consumers, in industry and small -to medium-size enterprises (SMEs), but also at ahouseholdlevelwillplayanincreasinglyactiveroleinenergysupplyandconsumption.Former consumers (-only)maybecomesuppliers, service-providersandevenbusinesspartners (e.g. in citizen projects) which leads to changes in the traditional businessmodels of energy companies. A general shift from volume-based to service-basedbusinessmodels can be observed already today, but needs to be supported throughstimulatinglegislationandclearpoliticalagendas.

The network operators, both Distribution System Operators (DSOs) and TransmissionSystem Operators (TSOs) will invest in smart grids to adapt the grid to the diversegeneration landscape and ensure reliable and secure grid functioning at all times. Simultaneously, other (new) market parties will build their business model on thefunctionalitiesofsmartgridsandwillbenefitfromthedeployment,whichendorsestherole of themarket-facilitating network operators. In the end, consumers are the realbeneficiariesofthesmartgridduetoareliable,affordablenetworkandthepossibilityofprofitingfrommanifoldenergyproductsandservicesfromdifferentmarketparties.

ExecutiveSummary

7 CEDEC – Smart grids for smart markets

However,technological,financialandregulatorychallengespersistforthedeploymentofsmartgrids.RegulatoryframeworksforDSOscurrentlydonotalwaysreflecttheimmense needforinvestmentingriddevelopmentandupgrades.Theyhenceneedtobeadaptedand shift fromprioritizing cost-reductions to innovation-friendliness,making sure thatinvestmentsarereflectedinregulatedtariffswithouttimedelay.Moreover,DSOsrelyonpublicsupportinthedemonstrationphaseofsmartgridprojects.SomeregulatorshavethereforecreatedfundstosupportprogressiveDSOsintheirinnovation.Theseexamplesarecrucialgoodpracticesforotherregulatorstotriggerthedeploymentofsmartgrids.

Missing technical standards for smart grid components constitute another barrier,whichshouldberesolvedassoonaspossible inordertoensure interoperabilityandarealEuropeaninternalmarketforcomponentsusedinthesmartgrid.Moreover,marketstructures need to be developed that align with system developments of increasingflexibility.

Finally, the most important barrier to overcome is the acceptance of the consumer.Traditionally,consumershavenotbeenactiveintheenergymarkets.Inordertochangethispatternandreapthebenefitsofsmartgrids,consumersrelyonsufficient,simpleandtransparentinformation;attractive,reliableandsecureproductsandservices,aswellasincentivestomakeuseofthem.DSOsplayasignificantroleinthisregard,astheyaretheonlypartiesstructurallyhavingalong-termrelationshipwithallconsumersintheirareaasneutralmarketfacilitators.

Withtheinherentchangesintheenergylandscape,theroleandresponsibilitiesoftheDSOswillneedtobeextended inordertobefitforalteringframeworkconditions,astheywill need to bedefined for allmarket participants. Playing themost central roleinthedeploymentofsmartgridsduetotheirsinglemaintaskofensuringsecureandreliablenetworkoperations,DSOsasneutralmarketfacilitatorsappearideallyplacedtobeallocatednewkeytasks.Nonetheless,thereisnoone-size-fits-itallmodel,duetotheverydifferentmarketstructuresinEurope.

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DSOsarebecomingmanagersofmoredynamicandcomplexsystems,aswellasagentsinalocalsmartmarket.Forthat,DSOsneedaccesstocommercialmarketplacestopurchasee.g.ancillaryservicesfromDERforeffectivegridmanagement.Duetotheresponsibilityforsystemmanagement,stabilityandintegrityatalltimes,itappearsinevitablethatDSOsneedtobeinchargeofthedatamanagementinasmartgridenvironment. Asregulated,non-commercialparties,DSOsalsoarewellplacedtoensurealevel-playingfieldforallmarketpartiesrelyingonthedatafortheirbusinesswhilebeingasafeguardofconsumerdataprivacyandsecurity.

Alreadytoday,installingandmanaging(smart)meteringsystemsisakeytaskofDSOsinalmostall (26)MemberStates.The inherentneedforthe informationobtainedbythemetertosecurelyoperatethenetworkandtheeconomiesofscaletobecreated,aretworeasonsforthedistributionsystemoperatorstoremaininchargeof metering,collectingandvalidating thedata before it is delivered to the consumers and themarket (withconsumers’approval).

Finally,DSOs already have and can continue tomake a significant contribution to theuptake of electro mobility by providing the necessary charging infrastructure forelectricvehicles(EVs).Whilethereiscurrentlynobusinesscasefordeployingcharginginfrastructurethatsufficientlycovers largergeographicalareas,DSOsshallbeallowed,to promote the uptake of e-mobility, by rolling out the infrastructure as part of theirregulatedassetbase.Managingthegridstowhichthechargingpointsareconnected,thiswillalsogivethemtheopportunitytocloselymonitortheeffectsEVchargingwillhaveonthenetworksandcounteractanynegativeconsequences.

ExecutiveSummary


POLICYRECOMMENDATIONS

REGULATORY FRAMEWORKS

- AclearandstablepolicyframeworkforEurope’sfutureenergysystemneedstobecreatedtoprovideconfidenceforinvestmentinsmartgrids:ambitiousandbinding2030targetsforRESandGHGemissionreductionsshouldbeset.

- PromotethecompletionoftheEuropeaninternalenergymarketbyaccurateimplementationoftheprovisionsoftheThirdEnergyPackage.

- Nationalregulatoryframeworksneedtobeadaptedtobecoherent,transparent,stableandcost-reflectiveinordertoallowforsufficientremunerationforDSOsandtosupportthedevelopmentofsmartgridsatdistributionlevel.

- Incentiveregulationshouldallowfortime-differentiatedprices,whichwillgivepricesignalstoconsumerstoshifttheirconsumptionfrompeaktooff-peaktimes.

MARKET STRUCTURES

- TherolesandresponsibilitiesforDSOsandcommercialactorsneedtobeclearlydefined,monitoredandenforced.

- AllowDSOstoactivelypurchasesystemservicesfromdistributedresourcestomanagetheirflexibilityneeds.

- PromoteDSOsresponsibilitytobeinchargeofdatahandling in smart grids.

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- DSOsshallremaininchargeofmetering,duetotheirdependenceonthedataforsecureandreliablegridoperation.

- IfDSOschoose,theyshouldbeallowedtodeploythecharginginfrastructureforelectricvehiclesduetotheirinherentexpertiseandtheunknowneffectsofEVchargingonthedistributionnetworks.Thecharginginfrastructure

mustfacilitatethemassmarketforEVs.

RESEARCHANDDEVELOPMENT

- Supportforsmartdistributionnetworksshouldbemainstreamedinallpublicfundingprogrammes(EU,nationalandregionallevel)andaccessmustbefacilitatedespeciallyforsmalleractors.

- Incentiveregulationneedstobeinnovation-friendlyandtostimulateexpendituresforR&Dactivities.

TECHNICAL STANDARDS

- EuropeanstandardsforsmartgridcomponentsanddemandresponsemustbefinalisedassoonaspossibleinordertoachieveinteroperabilityandaEuropeanmarketforsmartgridcomponents.

Policyrecommendations

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ADVANTAGESOFSMARTGRIDS:

-Contributetoenergyandclimatetargets-Facilitatesystemmanagement-Enhancesecurityofsupply-Entaileconomicbenefits-Connectelectricity,gasandheatnetworks-Linkthepowerandtransportsectors-Empowerconsumerstoplayanactiverole-Enableenergysavingsforconsumers-Createnewmarkets,jobsandgrowth

INTRODUCTION 01


1.1. WHAT ARE SMART GRIDS?

1.2. WHY SMART GRIDS?

Smartenergygrids–forelectricity,gasandheat�2�-willconstitutethebackboneofthefutureenergysupply,basedtoalargedegreeonrenewableenergysources.

Withgrowingsharesof(variable)renewableenergy,growingdemandofelectricityduetotheincreasingelectrificationoftransportandheating,aswellascontinuouslygrowingsharesofenergyproducedbyconsumers(“prosumers”),thetraditionalrequirementsfor energy networks are drastically changing, especially for electricity. Moreover, aparadigmshift istakingplace:demandforenergycanbecomeless inelasticwhenitfollows changing supply patterns. Therefore, increased flexibility in the systemwillneedtobecreatedinordertorespondoptimallyandcost-effectivelytotheincreasingvariabilityofsupplyanddemand.

Enablingsystemflexibilitybypartially“smartening”thegridthroughaddinginformationandcommunicationtechnologies (ICT) layers,constitutes thesocio-economically lessexpensivealternativetotraditionalreinforcementofsolelyadding“copper”inthegrids.�3�Whiletraditionalgridexpansionandreinforcementwillcontinuouslybeneeded,anintelligentusageof theexistinggrid through ICTsolutions candecreaseordelay theneedfornewinfrastructure,leadingtooverallbenefitsfortheconsumer,theeconomy,the environment and the energy system.�4� Despite all, the integrity of the networkremainstheprimaryconcern,especiallyfornetworkoperators.

Networksthatcanefficientlyintegratethebehaviorandactionsofallusersconnectedto it – generators, consumers and those that do both – in order to ensure aneconomicallyefficient,sustainablepowersystemwithlowlossesandhighqualityandsecurityofsupplyandsafety.

EuropeanCommission�1�

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ThemajorityofrenewableenergyinstallationsinEuropeareconnectedatthelow-andmediumvoltagelevel.�5�Ontheonehand,thisconsiderablyincreasesinvestmentneedsondistributionlevel.TheInternationalEnergyAgencyestimatesthattheinvestmentsin distribution grids will amount to two thirds of all transmission and distributioninvestmentsin2020,growingtothreequartersin2035andfourfifthin2050.�6�

Ontheotherhand,thisdevelopmententailsnewdynamicsandtechnicalchallengesforthedistributiongridoperators(DSOs).Thetraditionalone-waydeliveryofenergywillevolve toa two-waymanagementofenergyanddataflowswith implicationson thelarger system, includinghigh-voltage transmission lines.Consequently, the rolesandresponsibilitiesoftheEuropeanDSOswillevolve,astheyhavetofulfillanincreasingnumberofever-morecomplextasks.ThechallengesandbarriersDSOsfaceunderthecurrentregulatoryframeworksandmarketdesignswillbeaddressedinsectionIV.

In current debates about smart grids confusion often occurs between the network and themarket dimension.While smart grids first and foremost will be a technicalnecessityfornetworkoperatorstoensurenetworkstabilityandsystemintegrity, they also open business opportunities for new and oldmarket players, through demand-responseservices.Despitethesetwospheresbeinginterlinked,aconsciousdistinctionbetweensmartgridsandsmartmarketsshouldbemade,asintroducedbytheGerman regulator.�7�

01-Introduction

02 02INCREASING SYSTEM FLEXIBILITY BALANCINGSUPPLYANDDEMAND BY INTEGRATING DISTRIBUTEDENERGYRESOURCES 02


2.1. INTEGRATION OF RENEWABLE ENERGY SOURCES

In recent years, the shares of renewable energy sources in theEU’sfinal energydemandhave increased considerably from8% in2004to13%in2011.�9�InitsEnergyRoadmap2050,theEuropeanCommissionprojectstheshareofrenewablesourcestoreachupto75%offinalenergyconsumptionin2050.�10�

Traditional energynetworksneed tobemadefit to integrate thedistributedenergyresources (DER), such as renewable generation, storage and electric vehicles, andbalancesupplyanddemandatalltimes.Bottleneckscanbeavoidedbyextendingthenetwork to the (new) peak demandor bymanaging the (peak) demand through theutilisationof ICTtomanagetheflexibility inthesystem. Forevery(local)partofthenetworkthischoicemustbemadebytheDSO.ByaddinginnovativeICTtopartsofthenetworks,thegeneralmanagementofthesystemwillbefacilitated.

Whilenewdynamicsonthesupply-sideoftheenergysystemarevisibleandsteadilygrowing,developmentsonthedemand-sidehavenotkeptup.CEDECthereforewelcomestheconclusionsoftheEuropeanHeadsofStatesof22May2013,inwhichtheysubscribeto:“moredeterminedactiononthedemandsideaswellasthedevelopmentofrelatedtechnologies, including thedrawingupofnationalplans for the swiftdeploymentofsmartgridsandsmartmetersinlinewithexistinglegislation”.

2004

8%

2011

13%

2050

75%

Flow of flexibility

Flow of flexibility

Flow of flexibility

Before

Generation• Centralised• Dispatchable• Predictable

Demand• Inelastic

Generation• Decentralised• Lessdispatchable• Lesspredictable

Demand• MoreelasticIn the

future

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Besidesthelargecentralisedplants,suchasoffshorewind,themajorityofrenewableinstallationsaresmall-scale,decentralisedplantssuchassmallwindparksandbiogasplants. Microgeneration at household level, from micro combined heat and powersystemsorPVpanels,hasgreatpotentialandrepresentsagoodwayforconsumerstogaincontrolovertheirenergysupplyandtoactivelyparticipateinenergymarkets,whilepossiblyreducingtheircosts.

WithonshorewindandsolarPV,thetwofastestgrowingtechnologiesgeneratevariableoutput, depending on weather conditions. While forecasting of outputs is steadilyimproving,smartgridscreatetheopportunityforshort-termreactions,throughreal-timeinformationaboutsupply,demandandnetworkfunctioning:modernICTapplicationsenablemoredynamicandflexiblenetworkmanagement.Advancedmanagementandresponsivenessofthesystemallowsfortheintegrationofvariablesourcesthroughanoptimalmatchingwithsupplyfromnon-variable(renewable)sourcesorcorrespondingactionsonthedemandside. Thus,gridstabilityandsecurityofsupplyare increasedwhile disruptions of supply, having significant macro-economic implications, can beavoided.�11�IntelligentgridsthereforeareanimportantfacilitatorforatransitionoftheEuropeanenergysystembasedonrenewables.

2.2. STORAGE

Asapotentialenablingtechnologyfor intelligentnetworks,storageofelectricity,gasandheatcanplayacentral role in facilitatingthematchingofsupplyanddemandofenergy,especiallyagainstthebackgroundofgrowingsharesofvariableRESinelectricitysupply.Thepossibilityofstoringenergyatdistributionlevelattimesofhighsupply,andto release itduringtimesofhighdemandcanplayacrucial role for thesecurityandstabilityofthegrids,especiallyasthemajorityofdistributedgenerationisconnectedtotheLVandMVnetworks.Inthiscontext,dispatchingatthelocallevelwillbecomeincreasinglyimportantandDSOswillneedtoplayacentralroleintermsofmanagingstoragesystems.

Whilepumpedhydrostoragehasbeenacommonly-usedtechnologyformanyyears,new forms of longer-term storage, such as electrical, thermal and chemical storagedisplayconsiderablepotentialinthefuture,butarestill inresearchanddevelopmentphaseandcurrentlylackatangiblemarketmodel.

02-Increasingsystemflexibility


Inprinciple,storagesystemsaretechnologiestobeusedfrombothasmartgridandthe smartmarketperspective. Functioning in thenetworkdimension, storagewouldtakeupenergyattimesofhighsupplythreateninggridstabilityandinjectitbackintothegridattimesoflowsupply.Strategicallyplacednexttoplantswithvariableoutput,theycanthenmakeasignificantcontributiontoperpetuatetheirsupplyandsecurethegridmanagement.Inthiscase,thedevelopmentofstoragecouldbeseenasacomplementarytechnology to load management. If not, it might have adverse impacts on networkoptimisationstrategiesinthecontextoftheEuropeaninternalenergymarketandleadto economic inefficiencies.�12� For this reason, the deployment of storage should beprimarilyaddressedtoensurestabilitytothesystem,asapartofsmartgridmanagement.

2.3.POWERTOGAS

Anotherpossibility forelectricitystorage,which iscurrentlyexploredbysomepubliclocalutilities, ispower-to-gas (P2G).Withthis technology,electricity fromrenewablesourcesistransformedintohydrogen,whichcanbedirectlyinjectedintothegasgrid,orbe transformed into storablegas throughmethanisation. In caseofhighdemand,this gas can be converted back to electricity, or be used for heating and transport.Simultaneously,themethanisationprocessisgeneratingusableheat,whichcanbeusedfordistrictheating.Currentlyintheresearchanddevelopmentphase,P2Gisapromisingenabling technology for smart grids, as thedistribution infrastructure for gas iswelldevelopedinEuropeandisoftenoperatedbymulti-utilityDSOs,creatingefficientlinksbetweengasandelectricityinfrastructures.�13�

2.4.ELECTRICVEHICLES

Electric vehicles through the vehicle-to-grid (V2G) approach constitute anotherpromisingfactorforincreasingtheflexibilityofdistributiongrids,withthepre-conditionof consumer agreement. By using the battery for storage of electricity at times ofhighsupplyand injecting itback intothegridwhendemandishigh,the(aggregationof) electric vehicles complement variable energy supply and can make a significantcontributiontobalancingdemandandsupply.

A study by Pricewaterhouse Cooper for the Austrian market showed that based onaverage consumer behaviour, 82% of the battery capacity of an electric vehicle isguaranteedcapacitywhichcanbeinjectedbackintothegridatanytime.ForAustria,

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thiscouldamounttocapacityofalmost16TWhin2020�14�,representingca.18%ofthecountry’sfinalenergyconsumption.However,totapintothispotential,smartmetersandsmartdistributiongridsareindispensable.�15�

2.5. SMART METERS

Confusionbetween the term smartmeters and smart gridsoftenarises –or is evenbeingcreated.Whileintelligentmetersrepresentoneofthecentralcomponentsofasmartgrid,theyonlycoveronepartofthetechnologiesneededtoaddingintelligencetothegrid.

TheThirdEnergyPackageprovided that80%of consumers shouldbeequippedwithsmart meters by 2020, under the prerequisite that a national cost/benefit analysisshowspositiveresults.�16�Forconsumers(incombinationwithin-homedisplays),smartmetersdelivermoredetailedinformationonenergyconsumptionandproduction.Fornetworkoperators,smartmetersprovideallkindsofqualityinformationofthenetwork(outage,voltageleveletc).Additionally,smartmetersareimportanttoolsforallkindsofcommercialserviceproviders,forexampledemand-responseserviceproviders,usingthedata tocreate incentives forconsumers toadapt theirconsumptionaccording topricesignals.

Theroll-outofsmartmetersthereforehastobeseeninadifferentiatedmanner,fromasmartgridandasmartmarketperspective.Fromameregridperspective,smartmetersarenotneededineveryhouseholdtomaintaingridstabilityandsecurity.Forresidentialareaswithsmallsinglefamilyhousesandsimilarconsumptionpatterns,forexample,somecentralmeteringpoints(onstreetlevel)sufficeforsecureandreliablegridoperations.However,fromasmartmarketperspective,anationalorconsumer-segmentedroll-outofsmartmetersisindispensable.Onlywithclosetoreal-timeinformationaboutenergyconsumptionandvariablepriceswillinterestedconsumersbeabletoreacttoreal-timeprice-signalsanddemand-responseservices fromEnergyServiceCompanies (ESCOs).However,manysmartmetersinstalledarenotyetfitforthesepurposes.Thereforeitisadvisable to identify inafirstphasenewdemand-response/customerservicesandancillaryservicesprovidedbyDERand,fromthese,derivethetechnicalcharacteristicsrequired fromthenewmeters.This isequallyapplicable forsmartappliances,whichcandeliverconsumerbenefits,forinstancebyshuttingoffdevicesattimesofhighpricesignalsandthereforeformapartofasmartmarket,ratherthanasmartgrid.

02-Increasingsystemflexibility


2.6.DEMANDRESPONSE:NEWSERVICES

With increasing flexibility in energy supply, new demand-side services, i.e. demand-response-programmes are becoming more important. In its recently publishedCommunicationonoptimisingpublicintervention,theEuropeanCommissionestimatesthe controllable load in Europe to amount to at least 60 GW. Shifting loads frompeak to off-peak times could reduce the need for peak generation capacity by 10%.Demand-response therefore potentially entails further benefits such as avoided gridreinforcement, decreased consumer bills and higher overall system efficiency. �17�Industry and SMEs certainly display the largest potential for supplying flexibility byshiftingloads;however,throughaggregation,privatehouseholdscanalsocontributetodemand-responseprogrammes.

Traditionalenergysupplierswillbeamongthosetooffertheirconsumersnewproductsandservices;butalsonewactors,suchasaggregatorsandspecialisedESCOswillmakecontractswithconsumersfortheseenergyservicesandbenefitfromthedeploymentof smartgrids.As theseservicescanalsobenefitDSOs in theoperationofnetworks(e.g.byenablingthemtopurchaseasancillaryservices),aclearandtransparentmarketdesignneeds tobe foundandnewrolesand responsibilitiesofall actorsneed tobedefinedthoroughly.Havingtheultimateresponsibilityforthereliabilityofthenetwork,whichisessentialforallmarketplayersbutespeciallyconsumers,itisaprerequisitethatDSOsmustatalltimesbeinformedabouttheactionsofmarketactorsandaboutthedynamicsinthegrid.

ADVANTAGESOFSMARTGRIDS

-Contributetoenergy and climate targets-Facilitatesystem management-Enhancesecurityofsupply-Entaileconomicbenefits-Connectelectricity,gasandheatnetworks-Linkthepowerandtransportsectors-Empowerconsumerstoplayanactiverole-Enableenergysavingsforconsumers-Createnewmarkets,jobsandgrowth

03 03LIFTING BARRIERS TOTHEDEPLOYMENT OFSMARTGRIDS

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Although the deployment of smart grids will lead to overall macro-economic benefits,it shouldnotbe forgottentheyareonlyonepartof thesolution formakingtheenergynetworksfuture-proof.ThemajorityofEurope’sexistingenergyinfrastructureisrelativelyold and needs replacement. In total, the International Energy Agency estimates thatEuropeanDSOswillneedtoinvestca.480billionby2030.�18�Besidesthislargeamountofnecessaryinvestment,regulatoryandmarketbarriers,aswellastechnicallimitationsandconsumeracceptanceconstitutenon-negligiblebarrierstothedeploymentofsmartgrids.

3.1. REGULATORY FRAMEWORKS

INCENTIVEREGULATION

Asdistributionsystemsarenaturalmonopolies,theiroperationisaregulatedbusiness.The costs of DSOs are remunerated through the network tariffs paid by consumers.Nationalregulatorsdeterminethetarifflevel,andthustheallowedrevenueforDSOsoveraspecificperiodoftime.Inmostregulatoryframeworksincentivesforcost-reductionsaregiven,placingthefocusonefficiencyandshort-termcost-reductions,featuringsanctionsincaseofnon-compliance. Given the needed replacement of Europe’s aging energy network infrastructure, adrastically changing generation landscape from centralized to decentralized, andinvestments shifting from reinforcement and extension to adding an ICT layer on thetraditional copper lines, traditional regulatory frameworks increasingly appear to beinappropriatetocopewiththeserealities.DSOssometimesfacereturnsoninvestmentsthatare lowerthantheirweightedaveragecostofcapital (WACC).Often,therevenuecapsofDSOsareonlyadaptedwithconsiderabletime-delays(forexampleupto7yearsinGermany)andhenceleadtoverylatereturnoninvestmentsmadeandconsequentlyfinancialdifficultiesforDSOs.�19�Additionally,ageneralcomplexityofincentiveschemesandbenchmarkingproceduresmakeitverydifficultforDSOstodevelopnewactivities.

Anotherissueisthedesignofnetworktariffs.InmanyEuropeancountries,networktariffsare100%volume-based,meaningnetworktariffsarechargedforeachkWhused.Withanincreasingshareofprosumersandthroughsuccessfulenergyefficiencymeasures,lesselectricity,gasandheataretransportedthroughthenetworks.WhilethisiscontributingtotheEUenergyandclimateobjectives,itdramaticallydecreasestherevenueforDSOs.At the sametime, thenetworkneeds tobemaintained, reinforcedandextendedandeven consumerswithmicrogeneration facilitieswill continue to be dependent on the

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gridduringcertaintimesoftheday.Moreover,forDSOsthecostdriverofthenetworkis supplyof (peak) capacityandnot volume.Therefore, amixed tariff structurebasedonthecapacityof theconnectionandthevolumeused,mayconstitutean interestingalternative,allowingnetworkoperators to recover their costs inamorebalancedandconsistentway(seeforexampleintheNetherlands).Inordertoincentivisethenecessaryinvestments for the deployment of smart grids in Europe, CEDEC advocates for cost-reflectiveregulatoryframeworksthatrecognizeinvestmentsininnovativetechnologies,adapt to changing CAPEX/OPEX structures and minimize the time-delay betweeninvestmentsandadaptationofrevenuecaps.

Apartfromadequateincentiveregulationframeworks,supportingfundingforsmartgriddemonstrationprojectshasbeenprovidedbysomenationalregula-toryauthorities(NRA),whichhasledtogoodresults.Forexample,theBritishNRAOfgemhaslaunchedtheLowCarbonNetworksFund,whichprovided£500millionoverfiveyearsforsmartgridpilotprojects.Whilepartofthefund(£16millionannually)isspreadacrossallDSOstospendagainstspecificcriteria,someprojectsareselectedinanannualcompetitionforanothertieroffunding.�20�

Similarly,ItalianregulatorAEEGhasinitiatedacallinwhich8smartgridpilotprojectswereselected,thatprofitfromanextraWACCequalto2%for12yearsfortherelatedinvestments.�21�

DYNAMICRETAILPRICING

In order for demand-response programmes to deploy their entire potential, pricesignalsareanimportantinstrumentforconsumerstobewillingtoactivelychangetheirbehaviour in return forfinancialbenefits.To transmitpricesignals,time-differentiatedpricingsystems,suchastime-of-usepricing(e.g.peakandoff-peakprices)orreal-timepricing,arenecessary.Inthisregard,adverseeffectsbetweenenergypricesandnetworktariffsneedtobeavoided.Attimesoflowenergypricesduetoabundantsupply,apeakmightbecreatedonthenetworkduetomanyconsumersincreasingtheirconsumptionsimultaneously,consequentlythenetworktariffshouldbehigh.Thesedynamicshavetobetakenintoaccountwhenconsideringtheintroductionofdynamicnetworktariffsandhowthepriceeffectsaretobeweighedagainstoneanother.

03-Liftingbarriers

25 CEDEC–Smart grids forsmartmarkets

3.2.FINANCIALBARRIERS:FROMRESEARCHTODEPLOYMENT

ArecentupdateofaCommissionreportonthestatusofsmartgridsprojectsconfirmsDSOsarededicatedto innovation innetworkmanagementandare leadingoverothermarketplayersintermsofinvestmentinsmartgridprojects.

100

90

80

70

60

50

40

30

20

10

0

lity e y o y

i e ity e e e t e o lt y

f t et e

Total

Demonstation

R&D

ele o TSO e to e e o o y

Source:EuropeanCommission

Impactedbytheabove-mentionedchangesintheenergylandscape,DSOsareparticularlyrepresentedintechnicallayersofthesmartgrids(ICTsolutionsforintegratingdistributedresources).�22� With good technical developments, a shift from the R&D focus todemonstrationfocusofprojectscanbeobserved.

Currently, 80% of all projects are still depending on public funding. Therefore, betteraccess topublic funding forsmallandmedium-sizedpilotprojectsshouldbeensured.Whilesomefundingprogrammeshavebeencreatedbyregulators(seesection4.1.1)andnationalministries,theEuropeanfundingprogrammestendtobelesssuitableespeciallyforsmallerDSOs.ManyDSOsaresmall-to-medium-sizedandtheirprojectshavearegionalfocuswith smaller consumer numbers. Unnecessarily “high” thresholds for applicants(i.e.TSOinvolvement,trans-borderaspect)makeitcurrentlyextremelydifficulttoapplyforEuropeanfundingprogrammes,suchastheConnectingEuropeFacility.

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3.3.CONSUMERACCEPTANCE

Consumersandtheirattitudestowardssmarttechnologieswillplayacentralroleinthedeploymentandsuccessofsmartgrids.As theCouncilofEuropeanEnergyRegulators(CEER)establishesinitsdiscussionpaperfora2020customervision,theinvolvementofconsumersintheenergymarkethastraditionallybeenverylow.�23�Theyhavebeenmereusersofenergyattheendofthesupplychain.Therefore,theEuropeanCommission’sTaskForceforSmartGridsemphasisedthatwiththeintroductionofnewtechnologies,suchassmartmeters,homeautomation,microgenerationplants,theinformation,engagementand education of the consumer is the key task in order to tackle the concerns abouttechnologycomplexity,privacyanddataprotection.�24�Inordertoactivelyparticipateintheenergymarketandtotapthepotentialbenefitsofsmartgrids,consumersrelyonsufficient, simpleand transparent information,attractive, reliableand secureproductsandservices,aswellasincentivestomakeuseofthem. DSOshavealwaysbeenveryclosetoallconsumersintheirregionthroughtheirlong-termrelationshipwiththem;theenergynetworksbeinganaturalmonopoly,switchingDSOsisnotpossibleforconsumers.DSOsarethereforeideallyplacedtofillthegapbetweenconsumersandtheenergymarket.ThefactthatDSOsareespeciallyconsumer-orientedis proven in that most smart grid projects currently running with a special focus onconsumerinvolvementareledbyDSOsandthisnumberhasbeengrowingsignificantlyoverthepastyears.�25�EspeciallytheissueofdatamanagementandprivacyispivotalforDSOs in this regard. Inorder toensure compliancewithdataprotection rules andtherebycreateacceptanceontheconsumerside,clearrulesandresponsibilitiesforthedatacommunicationneedtobeestablished.Thispointwillbeaddressedinmoredetailagaininsection4.

3.4. TECHNICAL STANDARDS

With regard to technological development, most technologies needed for smartgrid operations are already available. The challenges primarily are to be found in theinteroperability of these technologies aswell as in their integration in existing energyinfrastructureandmanagement.�26�

03-Liftingbarriers


Againstthebackgroundoftheenvisagedcompletionoftheinternalmarketforenergy,the European Council confirmed the need for common standards for smart grids inFebruary 2011.�27� Following a communication by the Commission of the same year, theEuropeanstandardisationorganisationsCEN,CENELECandETSIweregivenamandatetodevelopafirstsetofstandardsforsmartutilitymeters,communicationprotocolsandotherfunctionalitiesinordertoguaranteeinteroperabilityofequipment.Althoughthisfirstsetofstandardswaspublished in2013,standardization, for instancefordemand-responseservices,isstillpending.Asforsmartmeters,itisimportantthatfirstmoversarenotputatadisadvantage.

3.5. MARKET STRUCTURES

In the conventional energy system, the typically large-scale generation plants wereconnected to the transmission networks. TSOs have been responsible for balancingdemand and supply and congestion management for which they have a set ofinstruments. Themain task fordistribution systemoperatorswas todeliverenergy totheend-consumers,guaranteeingsecurityofsupplyatalltimes,withlimitedtools.Withmoredistributedresourcesconnectedatlow-andmedium-voltagelevels,DSOsnowfaceincreasingdynamicsandnewcomplexityintheirnetworks.Inordertobeabletoactivelyandefficientlymanagetheirsystemwhileofferingreliableandhigh-qualityservices,theyrequireflexibilityinstruments,similartothoseofTSOs.Distributedenergyresourcesalsooffer the possibility for system services that could facilitate systemmanagement. Forexample,servicesofDERcanbeusedtosolveshort-termproblemsinthegrid,optimisethe cost of maintaining desired quality of service, reduce grid losses and reduce orpostponefutureinvestments.�28�

ServicesbygenerationplantsandstorageforexamplecouldbeusedasancillaryservicesbyDSOs.Forrealisation,DSOs,decentralisedgenerationplants,andmarketplayerssuchasaggregators,needtohaveaccesstomarketplacestotradeflexibility.FlexibilitymarketsshouldthereforebecreatedtoofferaccesstoDSOsandothermarketparties,withlowentry thresholds, corresponding to the requirements for local system management.Moreover, effective and formalised coordination and information exchange betweenTSOsandDSOsneedtobeestablishedasdynamicsintherespectivenetworkscouldhavemutualrepercussionsandcouldleadtooutagesorsysteminstability.

04 04FACILITATING THE MARKETHOWACTIVEDSOs WILL OPERATETHESMARTGRID

04

29 CEDEC–Smart grids forsmartmarkets

Inasystemwithnewtechnologiessuchaselectricvehiclesandvariableenergysources,whereflexibilityiskeyandmarketandsystemfunctioningundergosignificantchanges,DSOsarebecomingactivesystemmanagersand“agentsmanagingalocalmarket”.

Due to their single main task, secure and reliable distribution of gas, electricity andheat,DSOswillplay themostcentral role in thedeploymentof smartgrids.Basedontheir imminent position, as a natural monopoly and highly-regulated party, they arethe interface between smart grids and smart markets. A clear recognition of rolesand responsibilitiesof regulatedandcommercialactors is thereforeneeded toensurea smooth functioning of the systemandmarket,which facilitates and accelerates thetransitiontowardsasustainableenergysystem.

There are many small- and medium-sized DSOs in Europe and they have to be abletoexpandtheirfieldofaction. Ithasbeenshowninseveralstudies, thattherearenocorrelations between company size and efficiency, nor between the number of DSOsoperatinginamarketandthequalityofsupply.GermanyforinstancehasseveralhundredDSOsandaccordingtofiguresoftheSystemAverageInterruptionDurationIndex(SAIDI),hasthemostreliablegridsinEurope.�29�Hence,DSOswillalsointhefuturebeabletomanagenewchallengesandtaskseitherthemselvesorwithsuitablepartners.

Planning Operation& Market facilitation DMS CLS

(realtime)

SUPPLIER ESCO AGGREGATOR OTHER SERVICEPROVIDERS

SERVICE PROVIDER’S BOX(OPTIONAL)

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ECSmartGridsTaskforce.�30�

30

AsconcludedintherecentTHINKstudybytheFlorenceSchoolofRegulation”Whenevernew responsibilities show sufficient synergies with traditional activities of regulatednaturalmonopoliesthatregulatethenetwork,theDSOshouldbemaderesponsibleforthesenewservices”.�31� Inthefollowing,thispaperwillelaborateona(non-exhaustive)listoftasks,whichshouldbeallocatedtoDSOs.

4.1. SYSTEM MANAGEMENT

Aselaboratedoninthesectiononcurrentmarketbarriers,DSOswillbecomemoreactivesystemmanagerswith increasingcomplexityofnetworkdynamicsat local level.Apartfromefficiently exploiting the synergiesbetween their networks, for instance throughP2Gandusinggasconnectionsforcoolingdemands,networkoperatorsshouldalsobeenabledtoprocureservicesforgridmanagementfromDERoncommercialmarketplaces.ClearrulesforDSOstopurchasesystemservicesasdiscussedintheThinkreportbytheFlorenceSchoolofRegulation,will counteract the inherent conflictwithothermarketactors,i.e.ESCOs,biddingforthesameservicesandwillallowDSOstofulfiltheirtasksasneutralmarketfacilitators.Forexample,transparentauctionsoverseenbytheregulatorwithdetailedprotocolsofbiddingprocedureswouldpreventanykindofabuseofpositionsandguaranteethatvertically-integratedDSOsdonotgivepreferentialtreatmenttotheirowngroup’sretailer.�32�

4.2. DATA MANAGEMENT

The operation of smart grids and smart markets both rely on data about all partiesconnectedtothegrid,distributedresourcesandconsumers.InCEDEC’sviewitisthereforeindisputablethatthemanagementofdata(consumptionpatterns,actualloads,generatoroutputs,congestions)isbestplacedwithintheresponsibilityofDSOsforvariousreasons.

Firstand foremost,DSOsare responsible forgridstabilityandsecurityof supply.Theyshouldnotdependoncommercialmarketpartiesfordataavailabilityifsecurityofsupplyandsystemintegrity istobeguaranteed. Inthechangingenergysystem,withgrowingsharesofvariablesupplysources,fastandsmoothdatacommunicationtoensuresystemstabilityisessentialtomeetEurope’sclimateandenergytargets.

04-Facilitatingthemarket


Secondly,asanon-commercialparties,DSOswillprovidedatatothirdpartiesinanon-discriminatorymanner and thereby create a level playing field for allmarket players.Deliveringdatawillstimulatetheentranceofnewmarketactorsandenablenewbusinessmodels(aggregators,ESCOs).

Finally,andveryimportantly,asregulatedentities,whichhavenointerestintreatingdataascommercialproducts,DSOscanbeeasierandmoreeffectivelycontrolledbyregulatorsthan third (commercial) parties. This is a safeguard for the privacy of consumer data.If any other unregulated party becomes responsible for data handling, this containsfundamentalrisksfordataprivacyandsecurity.

4.3. METERING

In26EuropeanMemberStates(exceptUKandGermany),DSOsareinchargeofownershipandmanagementofmeteringequipment.InGermany,althoughintheorythemeteringmarketisliberalised,itisinpracticemostlytheDSOswhichownandmanagethemeters.

DSOs are highly-dependent on the information provided through smart meters, forinstanceaboutreal-timeconsumptionandfeed-inofenergyintotheirnetworkinordertomanageandplan theirgrid,and reducegrid losses.Theauthors fromtheFlorenceSchoolofRegulationconcludethatasneutralmarketfacilitators,DSOsdonotruntheriskofcreatingbarriersforsupplierswitchesasifforexampleretailerswereresponsibleformeterownership(technologyandcommerciallock-in).Moreover,throughthepossibilitytocreateeconomiesofscaleandthewholemeteringbeinginonehand,theroll-outofsmartmeterscanbebothmorecost-andtime-effective.

4.4.ELECTRICVEHICLESCHARGINGINFRASTRUCTURE

InarecentproposalbytheEuropeanCommissionforaDirectiveonthedeploymentofanalternativefuelinfrastructure,thelimitednumberofchargingpointsforelectricvehicleshasbeenbroughtintofocusasoneofthemainbarrierstotheuptakeofelectricmobility.�33�

DSOshaveplayeda central role so far in thedeploymentof theEVcharging stations,takingthe lead insolving the“chicken-and-egg-problem”ofmissing infrastructureandaffordable,consumer-friendlyvehicles.�34�Whileseveralmarketmodelsandownershipstructureshavebeendiscussedamongstakeholders,inCEDEC’sview,severalargumentsspeakinfavourofamodelinwhichDSOscanbeinchargeofthedeploymentofelectric

32

chargingpointsinthepublicdomainaspartoftheirregulatedbusiness.

Firstly,thereisnotyetatangiblemarketforelectricvehiclesandrelatedinfrastructureandtheroll-outofpublicchargingstations isnotyetprofitable.Hence,DSOscanstepinbydeployingtheelectriccharginginfrastructureaspartoftheirregulatedassetbase.The costswould thereforebe included in thenetwork tariffsand socialisedamongallconsumers.Moreover,apart fromthedirectadvantageofthepublicchargingstations,thiswouldhaveanindirecteffectofincreasingtherangeofEVs,andthereforedecreasingthebarrierofrange-anxietyprevailingamongmanypotentialconsumers.�35�Moreover,thepriceforEVsisdecreasingwithgrowingmarketshare.

Secondly,incorporatingEVinfrastructureintheregulatedassetbaseofDSOs,wouldgiveregulatorstheopportunityfortightcostcontrols.

Thirdly, the costs for the charging infrastructure primarily consist of costs for theconnection,themetersandthehardware–typicallytheDSOdomain.Additionally,theimpacts of EV charging on the distribution grids are still in a very early investigationphase.DSOsasexpertsareideallyplacedtodeploytheinfrastructureandmonitorthedevelopmentcloselytoensuresmoothnetworkoperations.

Finally, DSOs are neutral and non-discriminatory actors, which have no commercialinterestinlock-inoffirst-moverEVs.Theyalsohavenointerestinalockinoftheinterfacebetweenthechargingpointandthevehicle.Infact,theyarepromotingstandardisationofopen-interfacesthatallowforinteroperability.

TheThinkstudyonthefutureroleofDSOsoutlinestheadvantagesofDSO-ledroll-outofpublicchargingstationsatleastintheearlyphaseofthemarket,inordertomoveaheadwithdeploymentofanalternativefuelinfrastructure.

04-Facilitatingthemarket

¿GLOSSARY&REFERENCES

¿

35

GLOSSARY:

AGGREGATOR: Entityactingasanintermediaryamongvariousconsumersandotherplayersinthesystem.Itsmainfunctionistogrouplargenumbersofrelativelysmallconsumerssoastocreateeconomiesofscaleandsimplifyoverallsystemoperation;someoftheseconsumersmayhavestorageand/orproductioncapacity(AddressProject).�36�

ANCILLARYSERVICE: Meansaservicenecessaryfortheoperationofatransmissionordistributionsystem(Directive2009/72/EC).

DATAMANAGEMENTINSMARTGRIDS: Insmartgridstherearetypicallyfourtypesofdata(asdefinedinTaskforceSmartGrids): 1.Technicalconfigurationdata(characteristicsoftheconnectionandwhatis

behind)neededforconnection,specifictechnicalinterventionandsmoothswitchingofenergysuppliers;

2.Technicaldynamicdata,essentialforoperationalcontroland gridmanagement;

3.Consumerbehaviourdata(consumptionandgeneration); 4.Consumercontactdata(name,address,EAN,…)

DECENTRALISEDENERGYSUPPLY: Generationplantsconnectedtothemedium-tolow-voltagedistributionnetworks.

DEMANDRESPONSE:

Voluntarychangesbyend-consumersoftheirusualenergyusepatterns–inresponsetomarketsignals(suchastime-variableenergypricesorincentivepayments)orfollowingtheacceptanceofconsumers’bids(ontheirownorthroughaggregation)tosellinenergymarketstheirwilltochangetheirdemandforenergyatagivenpointintime.�37�

CEDEC–Smart grids forsmartmarkets

36

DISTRIBUTEDENERGYRESOURCES(DER): Small-scalegenerationplants,storagefacilitiesorelectricvehicles,connectedtothedistributionnetwork.

DISTRIBUTIONSYSTEMOPERATOR(DSO): Meansanaturalorlegalpersonresponsibleforoperating,ensuringthemaintenanceofand,ifnecessary,developingthedistributionsysteminagivenareaand,whereapplicable,itsinterconnectionswithothersystemsandforensuringthelong-termabilityofthesystemtomeetreasonabledemandsforthedistributionofenergy.

PEAKDEMAND: Simultaneousandhighconsumerdemand.

VEHICLE-TO-GRID(V2G): Connectingtheelectricvehicletothegridtoenablecontrolledflowofenergyandpowerfromthevehicletothegridthroughsafe,secure,andefficienttransferofelectricityanddata.

Glossary&References


REFERENCES:

�1� EuropeanCommission,2011,Communication,SmartGrids:frominnovationtodeployment(COM(2011)202final

�2� Despiteacommonlimitationofsmartgridstoelectricitygrids,inthispaperweconsidersmartgridsasasolutionforallnetworks,electricity,gasandheating&cooling.

�3� InitscommunicationonoptimisingpublicinterventiontheEuropeanCommissionstipulatesthatsmartgriddeploymentcouldleadtomaterialgainsof€4billion,duetotheirfacilitatingeffectfordemand-response. EuropeanCommission,2013,Communication:Deliveringtheinternalelectricitymarketandmakingthemostofpublicintervention

�4� Energienet.dk,(2012)SmartgridinDenmark2.0;NetbeheerNederland,2012,SmartGridsRoadmap;VerbandkommunalerUnternehmen,2013,AnIntegratedEnergyMarketDesign

�5� InGermanycurrently97%ofallinstallationbasedonrenewableenergysourcesareconnectedtothedistributionnetworkBundesnetzagentur,2011,Monitoringreport2010

�6� InternationalEnergyAgency,2013,WorldEnergyOutlook

�7� Bundesnetzagentur,2011,„SmartGrid“und„SmartMarket“,Eckpunktepapierder BundesnetzagenturzudenAspektendessichveränderndenEnergieversorgungssystem

�8� EuropeanCouncil,2013,ConclusionsofMeetingon22May2013,EUCO75/1/13

�9� Eurostat,2013,Shareofrenewableenergyingrossfinalenergyconsumption

�10� EuropeanCommission,2011,CommunicationEnergyRoadmap2050,COM(2011)885final

�11� EuropeanParliament,2012,STOAstudy:Thetechno-scientificdevelopmentsofsmartgridsandtherelatedpolitical,societalandeconomicimplications

�12� See7

�13� VerbandkommunalerUnternehmen(VKU),2013,Power-to-Gas–ChancenundRisikenfürkommunaleUnternehmen

�14� Basedona20%shareofelectricvehiclesamongallpassengercars

�15� PriceWaterhouseCooper,2009,AuswirkungenvonElektrofahrzeugenaufdieStromwirtschaft

�16� EuropeanCommission,2009,Directive2009/72/ECoftheEuropeanParliamentandoftheCouncil,concerningcommonrulesfortheinternalmarketinelectricityandrepealingDirective2003/54/EC

�17� EuropeanCommission,2013,StaffWorkingDocument:Incorporatingdemandsideflexibility,inparticulardemandresponseinelectricitymarkets

�18� See6

�19� VerbandkommunalerUnternehmen,2013,AnIntegratedEnergyMarketDesign

38

�20� OfficeofGasandElectricityMarkets(OFGEM),2013,Brochure:CreatingBritain’slowcarbonfuture.https://www.ofgem.gov.uk/ofgem-publications/64007/lcnf-brochure.pdf

�21� Autoritàperl’energiaelettricaeilgas(AEEG),2011,DecisionARG/elt12/11. http://www.autorita.energia.it/it/docs/11/012-11arg.htm

�22� EuropeanCommission,JointResearchCentre,2012,SmartGridprojectsinEurope:Lessonslearnedandcurrentdevelopments

�23� CouncilofEuropeanEnergyRegulators(CEER),2012,2020VisionforEurope’senergycustomers- adiscussionpaper

�24� EuropeanCommission,TaskforceSmartGrids,ExpertGroup2,2011,EssentialRegulatoryRequirementsandRecommendationsforDataHandling,DataSafety,andConsumerProtection

�25� See22

�26� See22

�27� EuropeanCouncil,2011,Conclusionsofmeetingon4February2011,EUCO2/1/11

�28� FlorenceSchoolofRegulation,2013,ThinkStudy:FromDistributionNetworkstoSmartDistributionSystems:RethinkingtheRegulationofEuropeanElectricityDSOs

�29� Bundesnetzagentur,2012,CEERNationalMonitoringReport,Developmentsoftheelectricity andgasmarketsinGermany

�30� ECSmartGridsTaskforce(2012)

�31� See28

�32� See28

�33� EuropeanCommission,2013,ProposalforaDirectiveoftheEuropeanParliamentand

oftheCouncilonthedeploymentofalternativefuelsinfrastructure

�34� SeeE-laadproject(www.e-laad.nl)intheNetherlands.InGermanyca.50DSOsoperatechargingpoints.

�35� Itoetall,2013,Willingnesstopayfortheinfrastructureinvestmentsforalternativefuelvehicles. http://www.econ.kobe-u.ac.jp/doc/seminar/DP/files/1207.pdf

�36� AddressProject(FP7),2013,Glossaryonprojectwebsite:http://www.addressfp7.org/index.html?topic=project_glossary

�37� See17

Glossary&References

40

CEDECrepresentstheinterestsoflocalandregionalenergycompanies.

CEDECrepresentsmorethan1500companieswithatotalturnoverof120billionEuros,serving85millionelectricityandgasconsumers&connections,withmorethan350,000employees.Thesepredominantlymedium-sizedlocalandregionalenergycompanieshavedevelopedactivitiesaselectricityandheatgenerators,electricityandgasdistributiongrid&meteringoperatorsandenergy(services)suppliers.

Thewiderangeofservicesprovidedbylocalutilitycompaniesisreliable,environmentallycompatibleandaffordablefortheconsumer.Throughtheirhighinvestments,theymakeasignificantcontributiontolocalandregionaleconomicdevelopment.

WewouldliketothankCEDECmembercompanies–andinparticularthemembersoftheCEDECWorkingGrouponSmartGrids–thathaveactivelycontributedtothispublication,fortheirsharingofknow-how,experiencesandexpectationsonsmartgridsandsmartmarkets.

1500companies

120 bn €turnover

employees

consumers

350.000

85.000.000


CEDEC RueRoyale551000Bruxelles+3222178117E-mail:[email protected]

smart grids for smart markets - cedec · system operators (tsos) will invest in smart grids to...

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