EU Electricity networks and energy

transition

IFRI Energy Breakfast

Florian Chapalain

EDSO for Smart Grids

EDSO for Smart Grids

Leading the cooperation for the Electricity networks of the future

Bringing Smart Grids from vision to reality

Generation Transmission Distribution Customer

POWER DISTRIBUTION IN EUROPE

• 2400 distribution companies in Europe

• 260 million of customers

• 240,000 people employed

• 2,700TWh/year

• 80% of EU citizens to be equiped with smart meters by 2020

• 200 million smart meters installed by 2020

• 10 million Km of power lines

• 97% of all power lines in Europe

• Around 90% of RES connected to distribution grids

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4

Renewable energy is growing fast in the EU

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140,0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cumulative installed PV capacity in the EU (in GW)

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60,0

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cumulative wind capacity in the EU (in GW)

Source: Solar Power Europe Source: EWEA

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Renewable energy is growing fast in the EU

Spain – Electricity Generation mix in March 2015Source: Red Electrica de Espana

40% of the generation is connected to distribution grids

More than 60% of demand isconnected to theDSO system

Source: REE (Spanish TSO), 2013 (annual report)

Source: CNE (Spanish NRA), 2011

Moving from a centralised power system…

Power

plantTransmission Distribution

… to a decentralised one.

Distribution

Demand side

participation

Power

plantTransmission

Wind

integration

Energy

storage

Active network

management

PV

integration

EV

charging

Less predicatble generation

Less predictable consumption

More monitoring and remote control

Huge investment ahead

Distribution: ~ 400 bn

Transmission: ~ 200 bn

Total investment needs in the electricity and gas sector

between 2010-20: over 1 trillion €

Power generation: ~ 500 bn Transmission and distribution: ~ 600 bn

RES: ~ 310 – 370 bn

Electricity: ~ 140 bn

Gas: ~ 70 bn

NB: approximative figures, mainly from DG ENER calculations based on

data from PRIMES, ENTSOs, KEMA etc.

Limiting costs through smart grids

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Regulatory and Technical Innovation

• The « Flexible plug and play (FPP) project » UK Power Networks tested the possibility to offer « flexible connections» to generators.

• DG customers can be connected to the distribution network on the basis that their generation output can be controlled by the DSO for operational purposes. Actual curtailment close to 2%.

• The FPP has shown that the flexible connection is a viable option for a majority of customers. In total the project has saved accepted DG customers approximately £32 million (curtailment cost included).

DSOs as neutral market facilitators

Through smart grids, DSOs can deliver betterservices and facilitate market parties activities:

• For consumers: Accurate information on energyconsumption, helping to lower bills

• For TSOs: constant flow of information for accurate grid balancing

• For suppliers and energy services providers: data delivery and analytics to help develop new products and services

• For local authorities: information on district energyconsumption / communal building energyconsumption and advice.

• For all: increased reliability and quality of supply• (in some countries) support to the electric vehicles

market by deploying the first charging spots.

DSO

Consumers

Suppliers

Energyservices

providers

Local authorities

TSO

What are DSOs waiting for?

Large scale demonstrations – RD&D/ innovation funding is

needed.

Investments

New solutions

Role of the DSO

Consumers

Current regulatory frameworks do not incentivise (or worse,

allow) investments in smart grids – traditional approach of “firm

capacity” are preferred to guarantee revenues

DSO as active system operator and neutral market facilitator: not

recognised by all regulators yet.

Standards exists, but interoperability is uncommon

Data Privacy and cyber/system security are key

Need to clearly communicate to consumer the smart grids

and smart meters benefits

Interoperability

Thank you for your attention!

www.edsoforsmartgrids.eu