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Smart Grids: from
innovation to deployment
                p y

     Manuel Sánchez Jiménez, PhD
            Policy Officer
        European Commission
             DG ENERGY
Smart Grids
    A Smart Grid is an electricity network that can cost efficiently integrate
    the behaviour and actions of all users connected to it - generators,
    consumers and those that do both – in order to ensure efficient,
    sustainable power system with low losses and high levels of quality and
    security of supply and safety. S
           y      pp y           y Seamless integration
                                          l   i t   ti
                                                          of new applications

                                                                                End user real time
                                                                                Information &
Central &                                                                       participation
dispersed
sources
                                                                                Central & dispersed
                                                                                intelligence


                Smart
                materials
                and power
                    p                  Multi-directional
                electronics            ‘flows’

     Dr. Manuel Sánchez Jiménez. European Commission. DG ENER                                |   2/12
                                                                                                        2
.   Policy drivers
     20-20-20 targets


.
- Integration of renewables into the grid
- Need to increase grid and consumption efficiency
     Security of supply


.
- Increase grid robustness and resilience
- Integration of large centralised and small distributed generation
     Market development
- Empowerment of consumers
- Better management of supply (generation, load) and demand
- New market opportunities

These drivers call for the restructuring of the grids, e.g.
the structure of generation, market and the use of electricity


Dr. Manuel Sánchez Jiménez. European Commission. DG ENER        |     3/12
.
 Legal framework
   Energy Efficiency Directive (2006/32/EC, Annex3)
has identified smart meters as one of the main measures,


.
contributing to the overall energy efficiency improvement.

   Renewables Directive (2009/28/EC, Art16) views
Smart Grids as an enabler for integration of increasing
renewable energy into the grid and obliges the Member
States to develop transmission and grid infrastructure


.
towards this aim.

   3rd package for the internal energy market
(Directive 2009/72/EC and Directive 2009/73/EC)

 Dr. Manuel Sánchez Jiménez. European Commission. DG ENER   |   4/12
EU activities for development
and deployment of Smart Grids
     Technology push
     T h l         h
-    RTD&D projects since 2003, more than €300 Million EU support
-    European Technology Platform, launched in 2006
           p              gy
-    Strategic Energy Technology Plan – European Electricity Grids
     Initiative, launched in June 2010

     Market
     M k t push
              h
-    Market regulation: 3rd energy package, adopted in August 2009
-    Task Force for Smart Grids, November 2009 – June 2011
-    European Infrastructure Package, November 2010 and October 2011
-    Communication on Smart Grids, COM(2011)202 - 12 April 2011
-    Energy Efficiency Action Plan and revision of ESD on 21 June 2011

     International cooperation
-    EU-US Energy Council
-    International Grid Action Network (ISGAN), under the Clean Energy
     I t    ti    l G id A ti N t    k (ISGAN)    d th Cl       E
     Ministerial Conference.
Dr. Manuel Sánchez Jiménez. European Commission. DG ENER         |   5/12
Task Force for Smart Grids
   T kF       f S     t G id
                         Florence                               London
                          Forum                                 Forum

                                             European
                                            Commission


Regulators                TSOs                      DSOs      Consumers   T h l
                                                                          Technology
                                                                            Supply
                                   High Level Steering Committee 


                        •Ad-hoc expert working groups

   Dr. Manuel Sánchez Jiménez. European Commission. DG ENER                    |   6/12
Smart Grid projects in Europe




Dr. Manuel Sánchez Jiménez. European Commission. DG ENER   |   7/12
Obstacles to SG deployment
  Obstacles to SG deployment
 Why has large-scale deployment not
    y       g          p y
 happened yet?
 - Limited pilot experiences so far and limited
   statistical quantification of benefits achieved in
   these experiences
 - Existing uncertainties regarding the level of
   required global investments, market models and
     q       g                    ,
   the technology needed
 - Data privacy, change of behaviour and other
   consumer’s concerns
 - Definition of expected services, functionalities
   and need of standards
     d      d f      d d
Dr. Manuel Sánchez Jiménez. European Commission. DG ENER   |   8/12
COM (2011)202 – challenges/actions
                 h ll     / ti
                Challenges                                           Actions

Consumer engagement at all                                   Developing Smart Grid
         levels                                                    standards
                                                           Addressing data privacy and
    Protection, handling and                                     security issues
        security of data
                                                              Developing regulatory
        Standardisation and                                 incentives for Smart Grids
          interoperability                                         deployment
                                                            Guaranteeing competitive
  Regulatory framework and                                   Smart Grids services to
         incentives
         i     ti                                                  customers
                                                              Continuing support for
  Infrastructure investments
                                                             innovation and its rapid
          and roll out
                                                                   application
Dr. Manuel Sánchez Jiménez. European Commission. DG ENER                           |    9/12
COM (2011)202 - Proposed actions
        Action                                                                                   Task
Smart Grids                  With the help of the Task Force, the EC will monitor the implementation of the work programme established in the mandate with the 
                             view to ensure timely adoption of the standards. If in the course of 2011 is not sufficient, the EC will intervene to ensure that the deadline 
Standards                    is met and the necessary standards are set.
                             The EC will also follow the development of ICT standards at the European and international level to facilitate the implementation of Smart 
                             Grids

Data privacy and             The EC will monitor the provisions of national sectoral legislation that might apply to take into account the data protection specifities of 
                             Smart Grids
                             Smart Grids
security of data
                             The ESOs will develop technical standards for Smart Grids taking the “privacy by design” approach
                             The EC will continue bringing together the energy and ICT communities within an expert group to assess the network and information 
                             security and resilience of Smart Grids as well as to support related international cooperation

Adjust the existing          The EC will develop regulatory incentives for the deployment of Smart Grids, for example in the application and revision of Energy 
                             Th EC ill d l           l t    i    ti    f th d l         t fS     t G id f          l i th       li ti      d    ii     fE
                             Services Directive and/or through the development of a network code or implementing act on tariffs
regulatory 
                             The EC will establish guidelines to define a methodology for the smart meter implementation plans of Member States, as well as for their 
framework for                (possible) cost‐benefit analyses
Smart Grids
                             Beyond the targets for smart meters in the Third Package, the EC will request Member States to produce action plans with targets for the 
                             Beyond the targets for smart meters in the Third Package, the EC will request Member States to produce action plans with targets for the
                             implementation of Smart Grids
                             Through its role in the Regional Initiatives an its involvement in ENTSO‐E, the EC will encourage and promote coordinated action towards 
                             the deployment of Smart Grids at European and regional level

Guarantee                    The EC will introduce, through revision of the Energy Services Directive, minimum requirements for the format and content of 
                             information provision for customers, and for access to information services and demand management (e.g. in‐house control of 
competitive Smart            consumption)
Grids services to            The EC will monitor the implementation of the Third Package requirements needed to create a transparent and competitive retail market 
customers                    for the development of services (e.g. time‐of‐use and demand response) based on Smart Grids and metering. If the requirements are not 
                             implemented or not effective, the EC may take further actions, possible in its review of the Energy Services Directive

Support               During 2011, the EC will propose additional new large‐scale demonstration initiatives for rapid Smart Grids deployment, taking into 
                      account the needs identified in the EEGI. They will include ways to leverage financing, in line with the Energy Infrastructure Package and 
innovation and        as requested by the European Council of 4 February 2011
                                                                                                                                                | 10/12
rapid application Sánchez Jiménez. European Commission. DG ENER
        Dr. Manuel
                      The EC will also launch the initiative Smart Cities and Communities in 2011
COM (2011)202 - Proposed actions
  Policy                                   Regulation         Innovation


    • Package for                             • Revision of     • SET Plan –
      Standards                                 Energy            European
      by end 2012                               Services          Electricity
                                                Directive         Grid Initiative
    • Privacy by
      design                                  • Guidelines      • Smart Cities
                                                and CBA           and
    • Cyber-                                                      Communities
                                                                  C        iti
      security                                • Regional
                                                Initiatives     • Energy
                                                                  Infrastructure
                                                                  Package




Dr. Manuel Sánchez Jiménez. European Commission. DG ENER                    | 11/12
manuel.sanchez-jimenez@ec.europa.eu
http://ec.europa.eu/energy/gas_electricity/s
         martgrids/taskforce_en.htm
         martgrids/taskforce en.htm



Dr. Manuel Sánchez Jiménez. European Commission. DG ENER   | 12/12

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Jimenez

  • 1. Smart Grids: from innovation to deployment p y Manuel Sánchez Jiménez, PhD Policy Officer European Commission DG ENERGY
  • 2. Smart Grids A Smart Grid is an electricity network that can cost efficiently integrate the behaviour and actions of all users connected to it - generators, consumers and those that do both – in order to ensure efficient, sustainable power system with low losses and high levels of quality and security of supply and safety. S y pp y y Seamless integration l i t ti of new applications End user real time Information & Central & participation dispersed sources Central & dispersed intelligence Smart materials and power p Multi-directional electronics ‘flows’ Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 2/12 2
  • 3. . Policy drivers 20-20-20 targets . - Integration of renewables into the grid - Need to increase grid and consumption efficiency Security of supply . - Increase grid robustness and resilience - Integration of large centralised and small distributed generation Market development - Empowerment of consumers - Better management of supply (generation, load) and demand - New market opportunities These drivers call for the restructuring of the grids, e.g. the structure of generation, market and the use of electricity Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 3/12
  • 4. . Legal framework Energy Efficiency Directive (2006/32/EC, Annex3) has identified smart meters as one of the main measures, . contributing to the overall energy efficiency improvement. Renewables Directive (2009/28/EC, Art16) views Smart Grids as an enabler for integration of increasing renewable energy into the grid and obliges the Member States to develop transmission and grid infrastructure . towards this aim. 3rd package for the internal energy market (Directive 2009/72/EC and Directive 2009/73/EC) Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 4/12
  • 5. EU activities for development and deployment of Smart Grids Technology push T h l h - RTD&D projects since 2003, more than €300 Million EU support - European Technology Platform, launched in 2006 p gy - Strategic Energy Technology Plan – European Electricity Grids Initiative, launched in June 2010 Market M k t push h - Market regulation: 3rd energy package, adopted in August 2009 - Task Force for Smart Grids, November 2009 – June 2011 - European Infrastructure Package, November 2010 and October 2011 - Communication on Smart Grids, COM(2011)202 - 12 April 2011 - Energy Efficiency Action Plan and revision of ESD on 21 June 2011 International cooperation - EU-US Energy Council - International Grid Action Network (ISGAN), under the Clean Energy I t ti l G id A ti N t k (ISGAN) d th Cl E Ministerial Conference. Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 5/12
  • 6. Task Force for Smart Grids T kF f S t G id Florence London Forum Forum European Commission Regulators TSOs DSOs Consumers T h l Technology Supply High Level Steering Committee  •Ad-hoc expert working groups Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 6/12
  • 7. Smart Grid projects in Europe Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 7/12
  • 8. Obstacles to SG deployment Obstacles to SG deployment Why has large-scale deployment not y g p y happened yet? - Limited pilot experiences so far and limited statistical quantification of benefits achieved in these experiences - Existing uncertainties regarding the level of required global investments, market models and q g , the technology needed - Data privacy, change of behaviour and other consumer’s concerns - Definition of expected services, functionalities and need of standards d d f d d Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 8/12
  • 9. COM (2011)202 – challenges/actions h ll / ti Challenges Actions Consumer engagement at all Developing Smart Grid levels standards Addressing data privacy and Protection, handling and security issues security of data Developing regulatory Standardisation and incentives for Smart Grids interoperability deployment Guaranteeing competitive Regulatory framework and Smart Grids services to incentives i ti customers Continuing support for Infrastructure investments innovation and its rapid and roll out application Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 9/12
  • 10. COM (2011)202 - Proposed actions Action Task Smart Grids  With the help of the Task Force, the EC will monitor the implementation of the work programme established in the mandate with the  view to ensure timely adoption of the standards. If in the course of 2011 is not sufficient, the EC will intervene to ensure that the deadline  Standards is met and the necessary standards are set. The EC will also follow the development of ICT standards at the European and international level to facilitate the implementation of Smart  Grids Data privacy and  The EC will monitor the provisions of national sectoral legislation that might apply to take into account the data protection specifities of  Smart Grids Smart Grids security of data The ESOs will develop technical standards for Smart Grids taking the “privacy by design” approach The EC will continue bringing together the energy and ICT communities within an expert group to assess the network and information  security and resilience of Smart Grids as well as to support related international cooperation Adjust the existing  The EC will develop regulatory incentives for the deployment of Smart Grids, for example in the application and revision of Energy  Th EC ill d l l t i ti f th d l t fS t G id f l i th li ti d ii fE Services Directive and/or through the development of a network code or implementing act on tariffs regulatory  The EC will establish guidelines to define a methodology for the smart meter implementation plans of Member States, as well as for their  framework for  (possible) cost‐benefit analyses Smart Grids Beyond the targets for smart meters in the Third Package, the EC will request Member States to produce action plans with targets for the  Beyond the targets for smart meters in the Third Package, the EC will request Member States to produce action plans with targets for the implementation of Smart Grids Through its role in the Regional Initiatives an its involvement in ENTSO‐E, the EC will encourage and promote coordinated action towards  the deployment of Smart Grids at European and regional level Guarantee  The EC will introduce, through revision of the Energy Services Directive, minimum requirements for the format and content of  information provision for customers, and for access to information services and demand management (e.g. in‐house control of  competitive Smart  consumption) Grids services to  The EC will monitor the implementation of the Third Package requirements needed to create a transparent and competitive retail market  customers for the development of services (e.g. time‐of‐use and demand response) based on Smart Grids and metering. If the requirements are not  implemented or not effective, the EC may take further actions, possible in its review of the Energy Services Directive Support  During 2011, the EC will propose additional new large‐scale demonstration initiatives for rapid Smart Grids deployment, taking into  account the needs identified in the EEGI. They will include ways to leverage financing, in line with the Energy Infrastructure Package and  innovation and  as requested by the European Council of 4 February 2011 | 10/12 rapid application Sánchez Jiménez. European Commission. DG ENER Dr. Manuel The EC will also launch the initiative Smart Cities and Communities in 2011
  • 11. COM (2011)202 - Proposed actions Policy Regulation Innovation • Package for • Revision of • SET Plan – Standards Energy European by end 2012 Services Electricity Directive Grid Initiative • Privacy by design • Guidelines • Smart Cities and CBA and • Cyber- Communities C iti security • Regional Initiatives • Energy Infrastructure Package Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 11/12
  • 12. manuel.sanchez-jimenez@ec.europa.eu http://ec.europa.eu/energy/gas_electricity/s martgrids/taskforce_en.htm martgrids/taskforce en.htm Dr. Manuel Sánchez Jiménez. European Commission. DG ENER | 12/12