Grid4EU Kick-off meeting

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1 November 22nd 2011 Press Kit Grid4EU Kick-off meeting ERDF Press Department

2 Summary 1. Press release Grid4EU: A European Smart Grids Project Grid4EU: 27 partners from 12 European Union Member states Grid4EU Local projects, interactions and synergies The six DSOmembers of Grid4EU ERDF ERDF Demonstration Project ENEL ENEL Demonstration Project IBERDROLA Iberdrola Demonstration Project CEZ CEZ Distribuce, a.s. Demonstration Project VATTENFALL Vattenfall Demonstration Project RWE RWE Deutschland AG Demonstration Project

3 1. Press release 22nd November 2011 The electricity grids of the future GRID4EU: a major European project coordinated by ERDF On Tuesday 22nd November in Paris, Michèle Bellon, Chairman of the Board of ERDF (Electricité Réseau Distribution France), announced the launch of the European smart grid demonstration project: GRID4EU. As a major player in the smart grid arena, ERDF has been selected to coordinate this European project. Designed in response to a call for projects from the European Commission, the project lays the groundwork for the development of tomorrow's electricity grids. Financed to the tune of 25 M by the European Commission, and costing 54 M overall, it is the biggest smart grid project to be funded by the European Union. The GRID4EU project brings together a consortium of 6 European energy distributors (ERDF, ENEL, IBERDROLA, CEZ, VATTENFALL and RWE). It will test the potential of smart grids in areas such as renewable energy integration, electric vehicle development, grid automation, energy storage, energy efficiency and load reduction. Grid4EU consists of six projects, which will be tested over a period of four years in each of the European countries represented in the consortium. The emphasis will be on fostering complementarity between these projects, and on promoting transversal research and sharing results between the different energy distributors involved. GRID4EU also draws on the know-how of other industrial and scientific partners, thereby bringing together thirty or so partners from around ten different EU countries. 3

4 2. Grid4EU: A European Smart Grids Project Lead by 6 DSO (Distribution System Operators) covering more than 50% of the metered electricity customers in Europe. 27 partners (Utilities, manufacturers, energy suppliers, research institutes, Universities) Duration : 4 years (november november 2015) Project Coordination : ERDF Technical Director : ENEL Chairman of General Assembly : IBERDROLA 4

5 3. Grid4EU: 27 partners from 12 European Union Member states 5

6 4. Grid4EU Local projects, interactions and synergies 6

7 5. The six DSO 1 members of Grid4EU 5.1. ERDF ERDF Électricité Réseau Distribution France - was established on 1st January, It is a fully-owned subsidiary of the EDF group and manages the electricity distribution networks across 95% of mainland France. The company, which employees 36,000 people, is in charge of running, developing and maintaining 1, 3 million km of power lines supplying electricity to 34 million customers. As such, it handles numerous tasks including connections to the grid, commissioning, repairs and supplier switches. France s electricity distribution network is one of the most efficient in Europe and continued modernisation is an ERDF priority. Since 2008, investment has risen by more than 50%. Network investment in 2011 reached 2.8 billion. It went into optimising and upgrading the network, enhancing reliability and implementing leading-edge technologies that will streamline the operation and efficiency of the electricity grid and the development of new uses of electricity. The communicating meter Linky or Linky metering system is the first step towards the smartgrids of the future. Its new functions, such as remote management, will offer ERDF customers new benefits: The bill is calculated on actual consumption, response times are cut from 5 days to less than 24 hours, replacing the meter is free. In the event of a power cut, diagnosis is easier. Faults can be repaired and power restored more quickly, customers have real-time information to help them manage consumption ERDF Demonstration Project The Demonstrator of ERDF is part of NICE GRID" project presented as part of the Call for Interest organized by the French Agency ADEME. Located in Carros, town part of a major sustainable development project near Nice in France, NICE GRID aims to develop a demonstrator of "smart solar district" combining innovative networks features in an area with high penetration of photovoltaic panels. NICE GRID purpose is to validate a new approach of distribution network planning, operation and management at the local and regional level in an area characterized by the fragility of its electrical system. It includes: - Distributed intermittent small generation assets (PV): Smart PV district. - Storage capacities, smart metering infrastructure (500 to 1500 Smart meters), network control systems and active demand tools. - Customer s acceptance of their new ability of becoming active. 1 DSO : Distribution System Operators 7

8 - Impacts on the roles of the various actors of this electric system and on their business model: consumer, generator, retailer, aggregator, DSO, TSO NICE GRID is a four year project with three main objectives: - Design a Smart Grid in a district with a high level of solar generation, electricity storage and load management capabilities, and test different situations of local optimization of the MV/LV network including local safe islanded operations to face emergency situations - Study how customers are becoming active and adapt their consumption / generation of electricity to face distribution network or global electricity system s constraints, especially at peak hours - Assess the costs and benefits of the smart district for the various players involved Under the coordination of ERDF (Electricité Réseau Distribution France), this Smart Grid demonstration project brings together ALSTOM GRID, EDF, ARMINES and other actors. The demonstrator will be set up in the municipality of Carros which is member of the District Planning Authority of Nice Côte d Azur in the South-East region of France. This area of Carros suits perfectly the purposes of the Demonstrator thanks to an exponential increase of PV connections requests to the distribution network (MV and LV) and the fragility of the electrical system in this area of South East of France 8

9 5.2. ENEL Enel Distribuzione S.p.A. is a Distribution System Operator (DSO) and a subsidiary of the Enel Group. With over 32 million customers and more than 1,100,000 km lines, Enel Distribuzione is the second largest DSO in Europe. As well as providing power distribution services to its household and business customers, the company runs R&D activities with the aim to constantly improve supply services to customers. Enel Distribuzione is involved in important RD&D projects, both at national and international level. In the Smart Grids area, the company is part of the European Electric Grid Initiative EEGI (www.smartgrids.eu) which is one of Europe s Strategic Energy Technologies (SET) Plan Initiatives, and also acts as coordinator of the 7th Framework Program project ADDRESS (www.addressfp7.org) aimed at enabling the active participation of customers in the smart grids of the future. At the European level, Enel Distribuzione S.p.A. is also involved in the project Green emotion (www.greenemotion-project.eu) for the mass deployment of electric mobility across Europe. The Enel Group Enel is Italy s largest power company and Europe s second listed utility by installed capacity. It is an integrated player, active in the power and gas sectors. Enel today operates in 40 countries worldwide, has about 96,000 MW of net installed capacity and sells power and gas to around 61 million customers. Enel is also strongly committed to the development of renewable energy sources and to the implementation of new environmental friendly technologies. Today about 48% of the power generated by Enel globally is carbon free. In 2001, Enel was the first utility in the world to start replacing traditional electromechanical meters with modern electronic devices to its 32 million domestic customers. This new metering makes possible, among other things, to take meter readings in real time and manage contractual relationships remotely. This innovation, which is key to the development of smart grids, has attracted interest from many utilities around the world. In Spain, Enel through its subsidiary Endesa is installing 13 million electronic meters to its customers and installation is expected to be completed by In Romania Enel will roll out smart meters to around 5 million customers, in Brazil the company started a pilot project and is also training technicians from Chilectra to bring this technology to Chile. Moreover, Enel supplied 4 million meters to all major utilities in Italy which have adopted its metering solution. Enel s smart meter technology has been certified in 8 countries. 9

10 5.2.1 ENEL Demonstration Project GRID4EU: ENEL TO FURTHER DEVELOP SMART GRIDS IN ITALY 8.2 million euro demo project launched in the Emilia Romagna Region. The aim of the project is to enhance network capacity in order to accommodate increasing distributed generation. Today, Enel Distribuzione is taking another step in the implementation of a truly smart grid in Italy. The Enel Group s Distribution Network operator is launching an 8.2 million euro demo smart grid project in the Forlì-Cesena area, Emilia Romagna region. The demo project, led by Enel and implemented in partnership with Ricerca Sistema Energetico (RSE), Selta, Siemens and Cisco, will also benefit from EU financial contribution. The demo is one of the core activities of the wider EU project Large Scale Demonstration of Advanced Smart Grid solutions with wide Replication and Scalability potential for Europe (GRID4EU). The need for a smart grid distribution system has been spurred by the development of distributed generation, in most cases coming from renewable sources, which is subject to random fluctuations due to weather conditions or the alternating of day and night. Therefore, the Italian demo project will introduce the active control of distributed generation facilities connected to the medium voltage network in order to maximize the integration of renewable generation within such network. The core of the project is an advanced control system, which will communicate through a broadband communication system with the renewable generators and with all the relevant facilities of the medium voltage network, including storage devices. The resulting system will therefore be able to control power flows and voltage levels to properly integrate distributed generation in the network, as well as testing different solutions for energy storage. The project will involve two primary substations, around 30 medium voltage lines, approximately 160 medium voltage/low voltage substations and some distributed generation facilities. The renewable facilities, for a total installed capacity of around 2 MW, are located in the Forlì-Cesena area. Furthermore, Enel Distribuzione has received requests to connect further 13 MW of generation capacity in that area. Overall, 45,000 low voltage customers will benefit from the project s implementation, even though they will not be directly involved in the experimentation. The GRID4EU project represents the first important step in the implementation of the European Electricity Grid Initiative (EEGI) Roadmap and we are convinced that it will become a reference for the development of Smart Grids in Europe and beyond Said Marco Cotti, Head of Smart Grids Development at Enel. Other initiatives launched by Enel Distribuzione in the smart grid field include a 10 million euro pilot project in Isernia. Also in that case, the technology installed will make it possible to optimally regulate the bi-directional flow of electricity generated from renewable resources on low and medium-voltage networks and will enable new uses of energy. Over more, Enel is currently implementing a 10-year restructuring plan for its entire distribution network (over 1 million kilometres), coordinated with 10

11 programmes for encouraging the introduction of smart grids launched by the European Commission. As with digital metering, Enel Distribuzione is a leader in applying innovative solutions to improve network efficiency and the quality of the service offered to customers. 11

12 5.3 IBERDROLA Iberdrola is a private company with a global footprint and expertise garnered over a history stretching back more than 150 years. The group has around 33,000 employees in over 40 countries on four continents and serves some 30 million customers. Having embarked on a major growth and international expansion in 2001 entailing investment of 67 billion by the end of 2010, Iberdrola is now the largest Spanish energy group, the world leader in wind energy and one of the world s five largest utilities by market capitalisation. Thanks to various important corporate transactions entered into in recent years particularly the integration with ScottishPower and the acquisition of Energy East in the US-, and our strong presence in Mexico and Brazil, where we have just bought distribution company Elektro, the group has cemented its leadership on both sides of the Atlantic, where we plan to continue growing. In 2010, the company posted a record profit of 287 billion and boasted installed capacity of 45,400 megawatts due to its diversified, well-balanced and efficient generation mix enabling it to meet the challenges of any energy scenario. Of this amount, 12,800 megawatts come from renewable energy sources, mostly wind farms. All of these assets helped the group reach a record output of over 154,073 gigawatt hours in 2010, half of which were emissions-free. The company will continue to expand its clean energy business and distribution networks as well as improve efficiency, all of which are the cornerstones of its activity in the coming years. In this regard, Iberdrola plans to invest nearly 16 billion in

13 Iberdrola Demonstration Project Iberdrola Distribución has started a Smart Meters implementation in Spain, following a Government mandate. This demonstrator is building up from that initiative, going forward with a two-fold objective: Improve quality of service to customers, by enhancing network observability and control. Allow customer better information on their consumptions, in order to optimize them The selected Spanish city where the demonstration will be developed is Castellón (Valencia Region), a city of inhabitants. Rationale and approach: Remote meter reading requires communications from the meter to the central systems. Provided the topology of the network in Spain, with large concentration of customers downstream each secondary substation (SS, which transforms high voltage to low voltage), the approach to be followed is to use PLC communications (communications on the electrical LV lines), and to include a concentrator in the SS, that manages meters downstream. Once the SS is communicated, this offers an excellent opportunity to enhance visibility and control not only regarding metering, but also for the HV and LV networks themselves. Areas to be covered are: - Usage of intelligent meters information for better knowledge of the LV network status (immediate knowledge of outages, of electrical magnitudes out of limits, quality of wave) - Monitoring, at the SS, the LV lines, to evaluate overloads, unbalances, etc (nowadays they are not monitored) - Evaluate losses (technical and non-technical) by comparing SS totals with the accumulated of the customers, hour per hour - Reinforce HV network control by monitoring electrical magnitudes and implementing effective fault detection (that will allow effective action on the network to restore faults) - Give customers better knowledge of their consumption and saving opportunities, and inform them about network situation (ex. disturbances) - All the above will require enhancements to the control system and the metering system Participants : Iberdrola Distribution (coordinator), Iberdrola Generation (customer support), Siemens (control system), Itron (metering system), ZIV, Ormazabal and Current (intelligent equipment at SS and meters) and L&G (customer equipment) Budget : 6 MEuro 13

14 5.4.CEZ ČEZ Distribuce, a.s. is a part of CEZ Group. CEZ Group is an established, integrated electricity conglomerate with operations in a number of countries in Central and Southeastern Europe and Turkey, headquartered in the Czech Republic. Its principal businesses encompass generation, trading, and distribution of power and heat, as well as coal mining. Joint stock company ČEZ Distribuce, a.s. was founded by the fusion project which was approved by the only shareholder in a frame of general meeting on 12th July ČEZ Distribuce, a.s. is a holder of the power distribution license and it is also a distribution system operator. The main mission of the company is to distribute electric power to individuals and legal entities and continuous quality improvement and reliability of supply to all consumers. The goal of the company is to provide fully functional role of the asset executive administrator of distribution system in its sphere of action. ČEZ Distribuce, a.s. aims to become a prestigious company on European level which will be classified as top company from the economic performance point of view and long-term stability in the electricity distribution asset management area. The company priority task is to provide fully functional role of the efficient asset administrator of distribution system in the supply area of CEZ Group, generating the profit from regulated activity of the power distribution and while complying the conditions of Energy Law and Energy Regulatory Authority rules CEZ Distribuce, a.s. Demonstration Project The demonstration project Smart Region is a part of large collaborative project on EU level. The project aims to prove the smart grid concept in distribution network in Vrchlabi town, Czech Republic. The smart grid concept within in the project involves new model of distribution grid capable of integration and management in an effective and smart manner of the renewable generation, e-mobility and consumer active role. The main objective of the Smart Region project is to demonstrate new efficient, sustainable, economic, secure and reliable electricity supply. Several tasks contribute to achieve the overall goal of the project: (i) automation of the existing MV and LV grids, (ii) implementation of smart metering and active customer approach, (iii) electro-mobility and (iv) automatic island operation. The Smart Region project is implemented in a partnership with four companies, stakeholders within the smart grid sector: ABB Czech Republic, CISCO Czech Republic, Current Technology International and Siemens Czech Republic. These 14

15 companies are delivering know-how and innovative technologies necessary for implementation of demonstration project. ČEZ Distribuce, a. s. is mainly responsible for coordination and management, R&D and innovation activities, islanding testing activities and operation. ČEZ, a. s. as a parent company of CEZ Group is a leader on Czech electricity market. ČEZ, a. s. is mainly responsible to support coordination, management, R&D, demonstration activities, islanding testing activities and to build CHP unit and e- mobility charging stations in the Smart Region. ABB Czech Republic is leading company in area of distribution network technologies. In the framework of Smart Region project, ABB supplies cutting-edge distribution network technologies essential for the implementation of new and innovative approach to power grid management and administration. Cisco Czech Republic is the worldwide leader in networking that transforms current methods of connection, communication and collaboration. In the framework of Smart Region, CISCO will be responsible for communication and network architecture, monitoring and overall IT security. CURRENT is a leading innovator of core smart grid infrastructure and software solutions that enable Connected Intelligence for utilities around the world. In the framework of the Smart Region project, CURRENT will be responsible for delivering intelligent sensing and analytics solutions together with communications infrastructure. Siemens Czech Republic is leading company in the area of distribution management system. Within the Smart Region project, Siemens will supply advanced management system for innovative/smart power grid management. 15

16 5.5. VATTENFALL Vattenfall Distribution is a part of Vattenfall Group, which have business in production distribution and sales of electricity, heat and gas. Vattenfall Distribution is a electricity distribution company have about 4,5 million of customers in Germany, Sweden and Finland. The company operates regional grids as well as local grids, with voltage levels from 130/220 kv to 0, 4 kv. The customers includes almost all kinds of customers, from feed in customers like large hydro power producers and wind power parks to out put customers like large pulp and papers industries to small cabins in sparsely-populated areas. Vattenfall work with most aspects of Smart Grids from large group wide coordinated R&D programmes to tangible investments in our grids like remote control and supervision, better utilization of wind power, smart substations e.g Vattenfall Demonstration Project Vattenfall s demonstrator in the GRID4EU project, called DEMO 2, will validate that the control of the Low Voltage distribution networks using AMM (Automatic Meter Management) and intelligent equipment in the Low Voltage Network allows for more distributed generation while improving customer power quality. During the last years the demands on the Low Voltage Network, its control and monitoring and ability to distribute supply reliably, have increased considerably in regard to deregulation, DG installations, changes in customers consumption patterns and consumers increasing demand for high power supply availability. Implementation of the Automatic Meter Management technology is one significant consequence as well as taking a necessary first step towards controllable and supervised Smart Grids. With installation of Smart Meters, possibilities have occurred for monitoring the fluctuating power flow in the Low Voltage networks due to local generation as well as for consumers to control their demand actively. In a highly competitive environment, Vattenfall has embarked on the road towards controllable and monitored Smart Grids on the LV level in carefully chosen steps in order not to disappoint consumer demands or to exceed available investment funds. In this context Vattenfall and its Partners has chosen to extend the utilisation of AMM since new possibilities of this technology have been identified to properly monitor and control the LV network. In the project scope is also to install intelligent equipment in the secondary substations. These facilities in combination with a branch leading system support for installed equipment and data collections will serve as a guideline 16

17 for further implementation in Europe in its way to full fill the European Unions ambition in the 20/20/20 goal. In the demonstration project, Vattenfall and it s partners will show how to monitor and control the Low Voltage network to enable Active Demand, Distributed Generation and Energy Efficiency ambitions. The demonstration area will take place in the city of Uppsala, close to Stockholm. GRID4EU DEMO 2, Sweden,Vattenfall Eldistribution AB, ABB, Emeter,Telvent, Royal Institute of Technology Project budget = 3,7 M, (154 person-month). Vattenfall Communication contact Mr Roger Lindmark Office:

18 5.6 RWE RWE Deutschland AG (RWE DAG), based in Essen, is the operating company for electricity grids, gas and water supply, sales and energy efficiency in the RWE Group. The company owns one of the largest distribution grids in Germany. RWE Deutschland has subsidiaries for sales and distribution grid operation, grid services and gas storage facilities. Other owned companies pool the energy efficiency activities, including electro mobility, and the development and operation of smart systems metering energy consumption. RWE Deutschland has interests in 70 regional and municipal energy utilities.the company has 21,000 employees (incl. subsidiaries). Two of RWE DAG's 100% subsidiaries are RWE Westfalen-Weser-Ems Verteilnetz GmbH (RWE WWE VN) and RWE Westfalen-Weser-Ems Netzservice GmbH (RWE WWE NSG) which are involved in this project as third parties mainly for operational tasks (see demo description for details).for the operation of their electricity, gas and water grids, the municipal partners rely on the technical expertise of RWE Deutschland AG. Based on wide-ranging experience, the company is well familiar with the complex technical and regulatory requirements of operating electricity and gas grids. Within the project: RWE DAG as the demonstration leader focuses on approaches for advanced MV-grid operation due to an increasing number of DER. Smart solutions are needed to avoid unnecessary grid-reinforcements as well as outages. RWE DAG is actively (Project Leadership) involved in several R&D projects related to the Smart Grid subject: Energy Marketplace of the Future (E-DeMa); ICT Gateway as a bridge between power grids and Internet (Customer). (http://www.e-dema.com). One out of six governmental supported demonstration region, which develops innovative core technologies and schemes for an internet of energy (intelligent consumption, generation, trading etc.) Grid for the future (Netze für die Stromversorgung der Zukunft); Based on the challenges for the task of energy supply for a DSO, different topologies will be considered. The target is to find the best technical solution for a certain grid to ensure a safe and economical provision of energy. One out grid architecture has been built up and tested under real conditions (10/ /2011) Grid-4-Vehicle : This project will work out a roadmap which describes the grid structure of the future which works efficiently under a mass market penetration of mobile electricity customers (EV and PHEV) 18

19 5.6.1 RWE Deutschland AG Demonstration Project This demonstration project is led by RWE and located in Germany, around the municipality of Reken (North-Rhine-Westphalia region) is focussed on the improvement of surveillance and advanced control of the medium voltage (MV) grid. Due to the expected increasing integration of decentralized energy resources (DER) in MV networks as well as in the subordinated LV networks the medium-dated necessity of an advanced network surveillance and a network control in the MV level is foreseeable. Currently there is neither a surveillance of the MV network installed nor remote controllability for switches and transformers in RWE s MV network. The grid around the municipality of Reken has been chosen for different reasons. Amongst others there is already almost a balance between installed generation power (predominantly PV and wind) and maximum load. Furthermore there is a massive increase of decentralised generation expected for the upcoming years. Implementation of autonomous multi agent systems for surveillance and automated control of MV networks is a potential solution to a better utilisation of MV networks. In the field of a classical enhancement of the networks and a full-value SCADAsystem (Supervisory Control and Data acquisition) in RWE-Demo an alternative and cost-efficient approach should be pursued. Autonomous working agents will be installed in a distributed way at critical locations in the grid. The agents themselves communicate amongst each other as well as with sensors which could be e.g. smart meters, to figure out the current state of the MV network. Deriving from all available data the agents make their own decisions, e.g. how to switch or to adjust transformers or DER to operate the MV network in an optimized way. The decisions will not be made independently from other agents but will be negotiated amongst the agents. The agents give commands to actors like remote controllable switches at disconnection points. Decisions and commands of the agents will be sent to a control centre which fulfils surveillance purposes and which could also intervene or overrule the agents commands. For safety reasons the control centre is able to block particular gridsections for the agents to adjust. Hence the control centre always knows about the current grid topology. The added value of the proposed agent system in comparison to a conventional system is their robustness and low need for maintenance. Any central approach needs excessive maintenance in case of system modifications. In comparison to that fully distributed agents detect their environment themselves and draw their conclusions for actions from this environment. This means the agent system adapts itself to changing system conditions. This increases the robustness significantly. 19

20 Besides different RWE departments the demonstration will be performed in collaboration with two partners: ABB AG, Germany and Technical University of Dortmund, Germany 20

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