SMART GRIDS AS ENABLERS FOR ENERGY EFFICIENCY Michele de Nigris ISGAN Chairman

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1 SMART GRIDS AS ENABLERS FOR ENERGY EFFICIENCY Michele de Nigris ISGAN Chairman

2 INITIATIVES OF THE CLEAN ENERGY MINISTERIAL (CEM) 16-Nov-14 2

3 ISGAN IN CONTEXT A mechanism for bringing highlevel government attention and action to accelerate the development and deployment of smarter electricity grids around the world. 16-Nov-14 3

ISGAN PARTICIPANTS(25) Contracting Parties (25) Invited to Join the IA Brazil, Denmark, Israel, Turkey, Mongolia Forschungszentrum Jülich GmbH Government of Belgium Norwegian Ministry of Petroleum

4 ISGAN PARTICIPANTS(25) Contracting Parties (25) Invited to Join the IA Brazil, Denmark, Israel, Turkey, Mongolia Forschungszentrum Jülich GmbH Government of Belgium Norwegian Ministry of Petroleum and Energy Swedish Energy Agency Government of United Kingdom Tekes(Finnish Funding Agency for Technology and Innovation) Sustainable Energy Authority of Ireland Russian Energy Agency Government of Korea European Commission Government of the Netherlands, Ministry of Economic Affairs, Agriculture and Innovation Government of Canada U.S. Department of Energy Government of France Government of India New Energy and Industrial Technology Development Organization (NEDO) Swiss Federal Energy Union Fenosa Distribucion Office of Ministry of Science and Market Energy Technology Authority Department of High and Ricerca sul Sistema Energetico (RSE S.p.A.) New Technology Development and Industrialization Government of Mexico Government of Austria South African National Energy Development Government of Australia 16-Nov-14 Institute (SANEDI) 4

5 THE DRIVERS FOR A CHANGE Market liberalisation: New business models Prosumers as an actor in the energy scene Reduction of CO 2 emissions Integration of renewables Energy efficiency

6 A DEFINITION OF SMART GRIDS A SMART GRID is an electricity network that can cost efficiently integrate the behavio ur and actions of all users connected to it generators, consumers and those that do both in order to ensure economically efficient, sustainable power system with low l osses and high levels of quality and security of supply and safety. (Source-EuropeanCommission,SGExpertGroup1)

7 PARADIGM SHIFT FOR THE SYSTEM (EEGI) FROM GENERATION FOLLOWS LOAD TO LOAD FOLLOWS GENERATION

8 RES INTEGRATION IN ITALY 2012INSTALLED POWER IN ITALY: MW INSTALLED POWER OF PV PLANTS NUMBER OF PV PLANTS LOCATION OF PV PLANTS OVER THE ITALI AN TERRITORY SOURCE GSE 16-Nov-14 8

9 EFFECTS OF DG ON LOSSES Small amounts of DG typically causes a reduction in losses. If DG penetration increases, losses reduction is less intense. If DG increases significantly, losses can be even higher than with out DG Many exceptions could be identified due to several factors: DG size, technology, connection point, etc. 9

10 DEMAND-RESPONSE PERSPECTIVE LOAD: 105 MW MAXIMUM POTENTIAL OF NETWORK 100 MW SOME USERS ARE PAID TO REDUCE BY 5 MW THE LOAD TO ENSURE NEWTORK BAL ANCE Changes in electric usage by end-use customers from their no rmal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to in duce lower electricity use at times of high wholesale market pri ces or when system reliability is jeopardized. 10

11 DEMAND RESPONSE AIM: Modification of the load curve Flattening the peak of the load curve Filling-in the valleys of the load curve Move and reshape loads Modify load technology balances (electr. Vs heat)

12 DEMAND-RESPONSE: AMI Second generation energy meters: Bi- directional communication Open communication protocols Multimetering capabilities Opening to multiple actors to enhance the market effi ciency

13 12 COUNTRIES DRIVERS AND CONDITIONS 3 APPROACHES: FEEDBACK Information PRICE-BASED CAPACITY BASED: actions based on user preferences ISGAN CASE BOOK -DSR

14 DEMAND-RESPONSE THROUGH TARIFFS ToU(Time Of Use) TARIFFS Critical Peak Price TARIFFS Real Time TARIFFS COMPLEXITY Direct Load Control es. tariffa TEMPO EDF: 7.6 > 51.2 c /kwh + Smart meter + Local Load Control (Enel SmartInfo)

15 HOME ENERGY MANAGEMENT Local Energy & Power Manager Combines signals received from DSOs (network signals), retailers (tariffs) and user preferences to manage power flowing to and from the network within limits that may even change every hour. Display for Energy Savings Consumption and cost curves Simplest but effective possibility to improve use of energy (increase of awa reness) Easy installation even in existing buildings

16 HOME ENERGY MANAGEMENT PRICE SIGNALS Segnale di prezzo STORAGE Accumuli LOADS Carichi Energy Manager & gateway GENERATORS Generazione Segnale di NTWK rete SIGNALS HEATING Riscaldamento

17 SOLUTIONS AND APPROACHES REPORTED 16-Nov-14 17

18 LOAD FLEXIBILITY

19 POTENTIAL OF H.E.M According to on-going experiments, there is a real possibility of a reduction in energy con sumption ranging between 10-15% through t he activation of the final consumer Baum Consulting FINSENY project

20 POTENTIAL OF H.E.M According to on-going experiments, real possibilities exist for electricity consumptio n flexibility and displacement towards the most favorable conditions for the networ k, the user, the society, the wallet. Even if domestic load shift is limited, the ener gy saving potential is equivalent to that of residential and industrial sectors +/- 10 % Baum Consulting FINSENY project

21 ELECTRIC MOBILITY AND D.R. 250 Senza controllo della ricarica Trafo 160kVA Ricarica controllata attraverso la Smart Grid Trafo 160kVA

22 ISGAN Website ISGAN Secretariat ISGAN Smart Grid Glossary Beta : Needs addition of content from around the world. Wiki platform easy to edit and augment. CEM Website: IEA page on Implementing Agreements: ISGAN RESOURCES 16-Nov-14 22

INTERNATIONAL SMART GRID ACTION NETWORK (ISGAN)

INTERNATIONAL SMART GRID ACTION NETWORK (ISGAN) Achievements and prospects IEA CHP/DHC Workshop, Paris 27-28 May Yonghun Jung, Secretary General Bo Diczfalusy, Vice-Chair Clean Energy Ministerial 5 (CEM5)