smart grids - best way to meet european 2020 target - what are the market opportunities?
TRANSCRIPT
Smart Grids - Best Way to Meet European 2020 Target - What are the Market Opportunities?
Katarzyna Owczarczyk, Senior Research Analyst
Industrial Automation and Process ControlIndustrial Automation and Process Control
7 April 2011
Functional Expertise
• Market research expertise in industrial automation and process control. Particular expertise in:
- Monitoring and analyzing emerging trends, technologies and market behavior in the Industrial Automation and
Process Control industry in Europe
- Best Practices and Award Research Methodology
Industry Expertise
� Experience base covering broad range of sectors, leveraging long-standing working relationships with leading
industry participants’ Senior Executives in:
- Automation Control Solutions
- Process Control
What I bring to the Team
• Deep industry knowledge of the European automation and process control market
Katarzyna Owczarczyk
2
• Deep industry knowledge of the European automation and process control market
• Analytical skills
• Ability to work on multiple projects simultaneously
• Ability to work in a fast-paced environment
• Team orientation
Career Highlights
• Prior to joining Frost & Sullivan:
- Consultant with EuroProjekts, Warsaw, Poland,
company specialized in obtaining funds for research and development projects.
- Technical support with Novum Technology, Warsaw, Poland,
safes producer
Education
• M.Sc degree in Automatics and Robotics with specialization in Flexible Manufacturing Systems from the
Faculty of Production Engineering in the Warsaw University of Technology, Poland
Katarzyna Owczarczyk
Research Analyst
Industrial Automation and
Process Control
Frost & Sullivan
Europe
Warsaw, Poland
Agenda
2
1
European Smart Grid Market Challenges?
European Smart Grid Market Definition
1 European Smart Grid Market - Introduction and Design
3
3
4
5
What Drivers and Restraints the European Smart Grid Market ?
Highlights of Major Trends in Smart Grid in Europe
Selected Case Studies in European Smart Grid Market
6 European Smart Grid Market Characteristics Summary
Includes smart meters, smart thermostats and any smart equipments which can be
connected via. the grid networkSmart Appliances
Smart Grids
For the scope of the study, according to the definition provided by the European Commission Smart Grids Task Force, the
Smart Grid market is defined as “an electricity network that can cost-efficiently integrate the behavior and actions of all
users connected to it –generators, consumers, and those that do both – in order to ensure economically an efficient,
sustainable power system with low losses and high levels of quality and security of supply and safety.”
Definitions
4
Includes the networking infrastructure which enables the consumers to interact with the
smart grid network, network security related infrastructure, etc
Network&
Connectivity
Includes the utility and consumer remote monitoring interface hardware used to harness the
real-time information relating to pricing, transmission and distribution
Remote TerminalUnit
Includes Energy Management Software, Advanced Metering Data Management Software,
Carbon Management Software Systems, etc. used in the industrial space
EnergyManagement
Systems
Information Systems
Network
Distributed Generation
& Storage
End-user Participation
Transmission Automation
Smart Grid- Introduction and Design
Characteristics for Smart GridsTraditional Grid Smart Grid
• Limited cross-border
interconnections
• Centralized control
• Technology approaching an
age of one century
• Large generating stations
• Technically optimized for
regional power adequacy
• Differing regulatory and
• User specified quality, security and reliability of supply for
the digital age
• Flexible, optimal and strategic grid expansion,
maintenance and operation
• Flexible DSM and customer-driven value added services
• Coordinated, local energy management and full
integration of DG and RES with large-scale central power
generation
• Extensive small, distributed generation connected close to
end customers
5
Distribution Automation
Renewable Generation
Source Integration
Smart Appliances,
Plug-In Electric Vehicles
& Storage
System Coordination
and Monitoring
Self Heals
Resists Cyber Attacks
commercial frameworksend customers
• Harmonized legal frameworks facilitating cross-border
trading of power and grid services
Source: European Commission, European Technology Platform SmartGrids2006
Source: US Department of Energy, 2009
The grid of the last century:
large, centralized plants ship
power in one direction – to
customers
The modern grid: incorporates
new centralized plants along with
renewable, distributed
generation “aggregated” backup
generators, energy storage –
seamlessly and safety
The need for Developing Open Communication Standardsand Systems Help the Smart Grid Market Growth
Lack of Well Established Utility Business Models
Obsolete Utilities System Architecture
Reluctance in Adaptation of New
Smart Grid Ideas by
Difficulty to Integrate High Amount of
Renewable Energy
Smart Grid: Key Market Challenges (Europe), 2011-2017
6
Lack of InteroperabilityStandards
Utility Business Models
Mitigating Network Vulnerability
Smart Grid Ideas by Consumers
Challenges: EU-27
Source: Frost & Sullivan
By 2020 renewable energy should account for 20% of theEU's final energy consumption
Dri
ve
rs
Smart Grid Market: Key Market Drivers and Restraints (Europe), 2011-2020
EU Environmental
Policy and Renewable
Energy DevelopmentGreater
Demand for
Energy
Efficiency Growing Energy Demand Economic
Development
Dri
ve
rs
7
Dri
ve
rs
Source: Frost & Sullivan
Lengthy Decision -
making Process
High Cost of
Investment
Dri
ve
rs
Restr
ain
ts
Re
str
ain
ts
Demand Response – Europe Market Potential
Smart Grid : Level of Demand Response Forecast in UCTE Countries (Europe), 2008
4.00
6.00
Dem
and in
Gig
aW
att (
GW
)
Demand Response greatly increases the ability to manage the unreliable renewable resources
DR is dedicated to help in reducing overall energy use and cutting peak load.
8
0.00
2.00
2008 2010 2013 2015 2020
Italy France Spain Netherlands Greece Germany Belgium Hungary Montenegro Luxemburg
Source: Study by Union for the Co-ordination of Transmission of Electricity (UCTE) and the European association of Transmission System Operators (TSOs)
Year
Dem
and in
Gig
aW
att (
GW
)
Move towards enabling end-user participation – A vital step for effective Smart Grid Implementation
• Early adopters (Italy, Denmark, Finland, Norway, Sweden
and Luxembourg), rollouts have been completed or almost
completed
• Mandated rollouts and limited pilots (The United Kingdom,
the Republic of Ireland, France and Spain), strict timeline
for smart meter deployment have been imposed by the
national regulators and governments: France (2016),
Spain (2018), UK (2020), pilot projects are happening here
• No mandated rollouts and limited pilots (Belgium, the
Smart Metering to Drive Demand Response in Europe
9
• No mandated rollouts and limited pilots (Belgium, the
Netherlands, Germany, Poland, the Czech Republic,
Austria, Slovenia and Latvia), no specific implementation
deadline for smart metering systems, but thousands of
smart meters have been installed by in experiments led by
local utilities
• Inactive countries (Hungary, Slovakia, Lithuania, Estonia,
Bulgaria Romania and Greece), budget constraints stops
launching even small pilot projects
Smart Grid Solutions – Implementation Examples
&
&
&
&
10
&
&
&
&
&
European Smart Grid Market Characteristics Summary
The early stages of market development have been largely hardware and technology driven. Green drivers are
strong due to the need for integration of renewables.
The early stages of market development have been largely hardware and technology driven. Green drivers are
strong due to the need for integration of renewables.EuropeEurope
Based on the European Commission’s proposal, in March 2007 the Council endorsed the following targets:
• reducing greenhouse gas emissions by at least 20.0% (compared with 1990 levels) by 2020;
• improving energy efficiency by 20.0% by 2020;
• raising the share of renewable energy to 20.% by 2020;
• increasing the level of biofuels in transport fuel to 10.0% by 2020.
Smart Grid: Key Market Characteristics by Region (Europe), 2010
11
Source: Frost & Sullivan
Integration of
Renewables
Grid Infrastructure
Needs
Power Demand
Exceeding Supply
Europe
Low High
1 52 3 4
Smart Grid
Drivers
Downstream Energy
EfficiencyDemand Response
Low High Low High Low HighLow High
1 52 3 4 1 52 3 4 1 52 3 41 52 3 4
Smart grids are about building, expanding, operating and maintaining the electricity networks of the future in a way which will also help meet
the EU’s 20/20/20 climate change objectives.
Smart Grid: Relative Impact of Main Drivers by Region (Europe), 2010
Next Steps
� Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. ([email protected])
� Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth occurring in London on 17 – 18 May 2011. (www.gil-global.com)
12
� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news)
Your Feedback is Important to Us
Growth Forecasts?
Competitive Structure?
What would you like to see from Frost & Sullivan?
13
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by rating this presentation
Frost & Sullivan’s Growth Consulting can assist with your growth strategies
Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter
http://www.facebook.com/FrostandSullivan
http://www.linkedin.com/companies/4506
14
http://twitter.com/frost_sullivan
http://www.linkedin.com/companies/4506
http://www.slideshare.net/FrostandSullivan
For Additional Information
Chiara Carella
Corporate Communications Director Europe
+44 (0) 207 343 8314
Katarzyna Owczarczyk
Senior Research Analyst
Industrial Automation and Process Control, Europe
+48 (0) 22 244 08 66
15
Sivakumar Narayanaswamy
Program Manager
Industrial Automation and Process Control, Europe
+91.44.6681.4177
Muthukumar Viswanathan
Research Director - Europe
IPC and M&I
+44 20 7915 7804