IEC- Israeli Smart Grid Vision & Plans

1. Israeli smart grid visionIsraeli smart grid vision
and plansand plans
1
Mr. Yasha Hain
Senior Executive Vice President
Israel Electric Corporation Ltd.

2. Smart grid: BackgroundSmart grid: Background

3. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 322/05/2013
Transformation of the gridTransformation of the grid
Source: By M. Rosenfeld, IBM. http://www.generatinginsights.com/whitepaper/the-smart-
grid-and-key-research-technical-challenges.html
Traditional Energy Value Chain Transformed Energy Value Chain

4. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 422/05/2013
Transmission system challengesTransmission system challenges
Current and imminent challengesCurrent and imminent challenges
Over the last years, the complexity of transmission
system operation has increased significantly.
 The main challenges are the integration of renewable
energy sources - particularly wind and photovoltaic (PV)
- and large-scale energy trades across wide-areas.
 Consequences are frequently changing load flow
situations and huge load flows.
 The power system is operated ever closer to its security
limits.
 Therefore congestion management and management of
critical grid situations are major tasks for the
transmission system operator (TSO) to ensure system
security.
Source: Current and imminent challenges for the Transmission System Operator in Germany. J. Vanzetta and
Ch.Schneiders, IEEE

5. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 522/05/2013
Transmission system challengesTransmission system challenges
Vision of a 21 st Century Transmission SystemVision of a 21 st Century Transmission System
Seamless, cost-effective electricity system, from generation to
end-use, capable of meeting all clean energy demands and
capacity requirements, while allowing consumer participation
and electricity use as desired:
 Significant scale-up of renewable energy;
 Allows 100% consumer participation and choice (including distributed
generation, demand side management, electrification of transportation, and‐
energy efficiency);
 100% holistically designed (including regional diversity, AC-DC transmission
and distribution solutions, microgrids, and centralized-decentralized control);
 Accommodates two-way flows of energy and information;
 Reliable, secure (cyber and physical), and resilient.
Source: Electricity Transmission Workshop (DOE), November 1, 2012

6. Smart grid: DefinitionsSmart grid: Definitions

7. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 722/05/2013
Smart grid definitionSmart grid definition
The smart grid brings togetherThe smart grid brings together
the idea of grid modernizationthe idea of grid modernization
and the closer integration of alland the closer integration of all
actors in our electricity system.actors in our electricity system.
Source: Global Smart Grid Federation 2012 REPORT (http://www.globalsmartgridfederation.org/
documents/May31GSGF_report_digital_single.pdf)

8. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 822/05/2013
Smart grid: Evolution or RevolutionSmart grid: Evolution or Revolution
The progress to date of smart grid projects funded by the
American Recovery and Reinvestment Act and the U.S.
Department of Energy, as well as various other smart grid
implementations across the United States, has taught the
utility industry one clear thing: smart grid is all about
evolution, not revolution.
It will be … a kind of evolution, but withIt will be … a kind of evolution, but with
revolutionary results..revolutionary results..
… see the transformation to smart
grids not as an evolution solely based
on new techniques but as a
revolution based on the involvement
of customers…
Smart Grids do not emerge
overnight but require a continuous
retrofitting of grids over several
years to make them fit for future
supply functions.

9. Smart grid: VisionSmart grid: Vision

10. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 1022/05/2013
Smart Grid VisionSmart Grid Vision
A smart grid is a form of electricity
transmission and distribution network
that helps realize the stable flow of
electricity, while taking in account
changes in generation sources as well
as trends to the ongoing market
acceptance of electric vehicles and all-
electric-powered “smart” housing.

11. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 1122/05/2013
The vision of the future smart gridThe vision of the future smart grid
infrastructureinfrastructure
Smart
Market
Smart
Customer
Smart
Utility
Authorized cost recovery
Protocols, standards
Real-time pricing, link to
market prices, locational
pricing
Communications
Sensor technologies
Self-healing grid
Efficient pricing
Value added services
Smart appliances, home
automation networks
Changed consumer behavior
Distributed energy and storage
Electric vehicle
Social networking
Source: On Using ADALINE Algorithm for Harmonic Estimation and Phase-Synchronization for the Grid-Connected Converters in Smart
Grid Applications. Yang Han, 2013

12. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 1222/05/2013
Smart Grid BenefitsSmart Grid Benefits
can be categorized into five groupscan be categorized into five groups
 Power reliability and power quality. Providing a reliable power supply with
fewer and briefer outages, “cleaner” power, and self- healing power systems, through the
use of digital information, automated control, and autonomous systems.
 Safety and cyber security benefits. Continuously monitoring to detect
unsafe or insecure situations that could detract from its high reliability and safe operation.
Higher cyber security is built in to all systems and operations including physical plant
monitoring, cyber security, and privacy protection of all users and customers.
 Energy efficiency benefits. Providing reduced total energy use, reduced peak
demand, reduced energy losses, and the ability to induce end-users to reduce electricity
use instead of relying upon new generation.
 Environmental and conservation benefits. It helps reduce greenhouse
gases (GHG) and other pollutants by reducing generation from inefficient energy sources,
supports renewable energy sources, and enables the replacement of gasoline-powered
vehicles with plug-in electric vehicles.
 Direct financial benefits. Operations costs are reduced or avoided. Customers
have pricing choices and access to energy information. Entrepreneurs accelerate
technology introduction into the generation, distribution, storage, and coordination of
energy.
Source: Estimating the Costs and Benefits of the Smart Grid. EPRI, 2011

13. Smart grid: Current statusSmart grid: Current status
in Europein Europe

14. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 1422/05/2013
Status on roll-out of Smart Metering in EU.Status on roll-out of Smart Metering in EU.
Directives 2009/72/CE, 2009/73/CE - 13 July 2009
 Member States (MSs) shall ensure the implementation of
intelligent metering systems that shall assist the active
participation of consumers in the energy supply market.
 May be subject to an economic assessment of long-term
costs and benefits – by 03.09.2012.
 MSs shall prepare a timetable with a target of up to ten
years for the implementation of intelligent metering systems.
 When is assessed positively, the provision for electricity
states that at least 80% of consumers shall be equipped
with intelligent metering systems by 2020.
Source: Status on the roll-out of Smart Metering in the EU. Manuel Sánchez. Eurelectric and ESMIG event, Brussels, 6 Dec 2012

15. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 1522/05/2013
Status on roll-out of Smart Metering in EU.Status on roll-out of Smart Metering in EU.
Cost Benefit Analysis and planning of roll-out
Source: Status on the roll-out of Smart Metering in the EU. Manuel Sánchez. Eurelectric and ESMIG event, Brussels, 6 Dec 2012
Cost Benefit Analysis
Roll-out plans for smart
electricity metering systems

16. Smart grid: Current statusSmart grid: Current status
in Israelin Israel

17. Smart city pilot (IEC):Smart city pilot (IEC):
general descriptiongeneral description

18. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 1822/05/2013
Pilot project dataPilot project data
 Binyamina and Giv’at Ada
 14,000 residents
 3,100 three-phase meters
 1,300 one-phase meters
 Total annual consumption
– 50 GWh
 Average consumption per
household - 10,800 kWh
Orot Rabin
Power Plant

19. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 1922/05/2013
Smart City Pilot TargetsSmart City Pilot Targets
GeneralGeneral CustomersCustomers
BusinessBusiness
processesprocesses
TechnologyTechnology
Creating a
positive image for
the company and
basis for
promoting the
project
Examining
customer
response to
technological
changes
Formulating and
designing new
work processes
Computing
architecture of
smart grid
development
Lessons towards
to future
implementation
stages
Further
improvements
feedback
Regulation of
maintenance
processes and
organizational
work
arrangements
Technological
experiment of
communications
infrastructures
and meters

20. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 2022/05/2013
Phase 2: Extended pilot (30K)Phase 1: Binyamina (4.5K) Phase 3: Project roll-out
Project stagesProject stages
Technology study
Formulation and study of new
business processes
Learning of customer reaction and
behavior
Planning of organizational and
business processes
Finish of IT infrastructure preparation
Selection of the best technology for
wide deployment
Completion of planning and logistics
preparation for roll-out
Improvement of business processes
Starting a process of business
oriented changes
Smart meters roll-out
Full integration
Advanced services to customers
Completion of business
transformation
Relatively small project with wide
technology range
Not finalized functional requirements
Limited integration with IT systems
Medium-size project, concentrated
technologically
Finalized functional requirements
Realization of advanced integration
schemes with IT systems
Large project – 2.5 million meters and
supporting IT system
Realization of final integration with
communication systems
TargetsApproach

21. Smart city pilot :Smart city pilot :
pastpast

22. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 2222/05/2013
Date Activity
08/2010 CEO decision to initiate smart grid pilot
12/2010 CEO approval of Binyamina-Giv’at Ada pilot and
preliminary SOW
03/2011 Start of specification preparation
11/2011 Finish of specification preparation.
Steering committee approval for tender issuing
30/11/2011 Publication by MNI of position paper on Smart
metering development plan
08/03/2012 Decision to include options to the tender
09/05/2012 Tender publication
02/12/2012 Technical proposal submission
05/2013 Decision to freeze the tender till Pilot finish
Project MilestonesProject Milestones

23. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 2322/05/2013
Project problemsProject problems
 Non-recogniton of project costs by PUA
 Budget is not approved for the project
 Schedule delays

24. Smart city pilot :Smart city pilot :
presentpresent

25. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 2522/05/2013
 Implementation of the pilot by IEC;
 Integration of the pilot by IEC;
 Pilot results as a basis for business
initiative abroad;
 Use of existing MDM system – ITF.
Smart City PilotSmart City Pilot
Recent Conceptual ChangesRecent Conceptual Changes

26. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 2622/05/2013
 IES is planning – as a part of roll-out
evaluation – to prepare CBA for smart
meters deployment;
 Preliminary estimation shows that roll-out
economically feasible for national
economy*. Break-even point: 4% of energy
efficiency and 10% peak shaving, but small
customers are problematic.
Implementation of Cost-Benefit AnalysisImplementation of Cost-Benefit Analysis
*Source: M.Ben-Yair, PUA 2.1.2013 ‫הרגולטור‬ ‫בראי‬ ‫חכמה‬ ‫רשת‬

27. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 2722/05/2013
Source: Central Bureau of Statistics, Israel
Consumption expenditure per householdConsumption expenditure per household
Electricity, gas and fuel for dwelling
(about 3.6% or ~400 NIS per month)

28. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 2822/05/2013
 CBA will be prepared according to
acceptable guidelines;
 CBA will include all benefits: direct
expenses, deferred investments,
environmental issues, social benefits etc.
Implementation of Cost-Benefit AnalysisImplementation of Cost-Benefit Analysis
Sources:
Guidebook for Cost/Benefit Analysis of Smart Grid Demonstration Projects .Revision 1, Measuring Impacts and
Monetizing Benefits. EPRI, 2012
Guidelines for conducting a cost-benefit analysis of Smart Grid projects. JRC, European Commission, 2012

29. Smart grid: Future in IsraelSmart grid: Future in Israel

30. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 3022/05/2013
 Completion of the pilot
100% customers by the end of Feb, 2014
Pilot operation (6 months duration)
Lessons learnt (2014)
 Tender continuation (2014)
Pilot lessons including
Other necessary changes
 Preparations to full deployment
Smart Grid Project – next stepsSmart Grid Project – next steps

31. Smart grid: SummarySmart grid: Summary

32. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 3222/05/2013
Smart city vs Smart gridSmart city vs Smart grid
Correlation between smart cities and smart grids is strong.
Smart grid investments provide an intelligent energy
infrastructure that links together different elements of city
operations. Conversely, smart city initiatives can help build
consumer awareness of energy efficiency initiatives.
Huge investment being made in smart meters will provide cities
with a platform for energy efficiency improvements, new customer
services, and network optimization.
Cities also provide important pilot environments for smart grid
innovations, incl. the integration of distributed renewable energy,
support for EV charging, and demand management programs.
Both city planners and utilities need to take a holistic view
of these diverse developments.
Smart city with Smart gridSmart city with Smart grid

33. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 3322/05/2013
Smart city with Smart gridSmart city with Smart grid (cont’d)(cont’d)
The biggest challenge is to extend the pilots into
citywide deployments.
This is where the unified thinking shown in pilots
can start to fall apart.
Large-scale programs must be tied in to utilities’
deployment plans, which in turn are often
determined by industry regulators and national
government policies, making city concerns a
secondary consideration.
Only by working together can city officials, utilities,
industry regulators and politicians create fuller
consumer engagement and ensure that there is
adequate energy infrastructure for the needs of a
smart city.
Sources: Why Smart Cities Need Smart Grids. Eric Woods — March 8, 2013

34. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 3422/05/2013
Smart Grid’s Major ComponentsSmart Grid’s Major Components
Nerves - AMI (meters and network)
- Advanced grid sensing and visualization technology
Brains - Demand Response (through dynamic pricing)
- Building energy management systems
- Meter Data Management Systems
- End-use energy efficiency
Muscle - Distributed generation from renewable, CHP, and other
sources
- Energy storage technologies
Bones - New transmission lines (HVDC, superconducting)
- New transformers and substation equipment
Source: ELECTRIC EVOLUTION. Issues Posed and Opportunities Presented by the Emergence of the Smart Grid.
D. Fribush, S. Parker, S. Enterline. VEIC Consulting Division, 2010
A smart grid is a modernized electrical grid that uses information and
communications technology … but first of all it is a huge infrastructure project.

35. Y.Hain. Israeli smart grid vision and plans / Israeli Smart Energy Association Conference 3522/05/2013
Smart Grid FinancingSmart Grid Financing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
R
&D
D
em
onstration
D
eploym
ent
Tariffs/Private National/Regulated EC
0
500
1000
1500
2000
2500
3000
3500
D
SO
Energy
com
pany
Service
provider
TSO
O
ther
MEUR
Source: Overview of EU smart grid projects and activities of the Institute for Energy and Transport on Smart Grids. G.F. De Santi,
Director, Institute for Energy and Transport. European Commission’s Joint Research Centre. Brussels, 2011
Budget across leading organizationFunding by stage of development
Distribution System
Operators
are the main investors

36. Thank youThank you