ENERGISE Accessing synergies between Energy and Telco Sector. European Utility Telecom Conference, Frankfurt
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1 ENERGISE Accessing synergies between Energy and Telco Sector European Utility Telecom Conference, Frankfurt
2 ENERGISE Project overview / Introduction Framework: CSA Coordination and Support Action for the Horizon 2020 Call on Low Carbon Energy LCE Distribution grid and retail markets Project Partners: TÜV Rheinland Consulting WIK Consult General Questions: How will the future ICT infrastructure for smart grid applications look like? Timeline: Start: 01/2015 end: 03/2017 Strategic Partner: EUTC Funded by: EUROPEAN COMMISSION Directorate General for Communications Networks, Content and Technology Sustainable and Secure Society Smart Cities and Sustainability 2
3 ENERGISE Context 1. Starting Point 2. Arising Problem 3. Core Question New applications are increasing the demand for communication and data exchange in grids. Differences between sectors make synergies hard to exploit. How can cooperation between energy and communications sector be achieved? 3
4 ENERGISE Goal 4. Solution Concept Identification of the relevant stakeholders Provide information and support the decision making processes Analysis of the current state of play and assessment of case studies and best-practices Support the exchange of hands-onexperience 4
5 ENERGISE Timeline Final tool database Establishing Contact with Stakeholders Survey on co-operation Case Study Collection Tool Development Consultation 1st Year 2nd Year 5
6 ENERGISE European Coverage Use-Case Survey Case Studies DSO and Telco Company DSO or Telco Company No DSO or Telco Company Case Study already conducted Case Study in process No Case Study so far 6
7 ENERGISE Use Case Survey Results I Statistics Respondent Groups: - DSOs - TSOs - Utilities - Communications Providers - Manufacturers, Research, Other Number of responses: 294 Number of DSO & Telco participants: 130 Engagement in Smart Grid projects: >75% Smart Grid project in the future: >88% (99% of DSOs) Key Findings Sector borders continue to blur - DSOs becoming active in the field of communication - Telcos providing energy services Technological issues are not the driving problem No perceived political demand for co-operation Organisations which don t have any smart grid activities seem to underestimate the importance of criticality of infrastructure Various asymmetries between the main industrial actors - Perception of competition - Pace of innovation implementation There are various hurdles but also huge potential when considering co-operation and infrastructure sharing between the different sectors 7
8 ENERGISE Use Case Survey Results II Co-Operation Reasons - Faster Implementation - Synergy effects during deployment - Synergy effects during operation - Financial Pressure - Increased customer access (DSOs) - Strategic strengthening (Telcos) Hurdles - Unclear regulatory responsibilities - Difficult liabilities and responsibilities - Unclear market design Infrastructure Sharing - Better utilization of existing infrastructure - Synergy effects during operation - Synergy effects during deployment - Financial pressure - New revenue options Separation - Criticality of infrastructure - Data security - Clear liabilities and responsibilities Cooperation is highly preferred Shared infrastructure is preferred (exception: security and system control) 8
9 non-cooperative Type of Operation cooperative ENERGISE Does Co-operation imply Shared Networks and vice versa? Assessment of Use Cases All respondents Distribution System Operators Telecommunications Providers Grid Operation Related Use Cases dedicated shared Usage of Infrastructure Findings - High correlation between shared and co-operative approaches - Different perception between DSO and Telcos - Grid related use-cases less likely for shared and co-operative solutions 9
10 ENERGISE Case Study Example I Starting point Huge amount of outages due to weather impact etc. Lines are mostly in wood trenches -> huge amount of outages Crown snow-load has bent a tree onto overhead lines. Current Situation: Motivated by the need to ensure electricity supply, which is critical for a modern society as well as by investment deficit The distribution network must be planned, built and maintained so that the failure of the network as a result of a storm or snow does not cause a power outage of more than 6 hours to customers in urban areas and more than 36 hours to those in other areas. Set requirements for the security of supply for the transmission grid and high-voltage distribution networks. A general obligation of preparedness will also be set for grid owners in case of disturbances and emergencies. The standard compensation payable to customers for power outages will be increased. Legal obligation to weather prove the grid. Result is a huge activity to replace overhead lines with cables (approx. 200 km of trenches per month and an increased invest) Overall 15 contracts with ICT providers to operate the grid and smart meter readout Percentage of the power lines located in forests. Solution approach: Goal is to have one provider with a turnkey solution for all communication demands. Sources: ENERGISE; Kim Forssén, Aalto Univesity 2016 after Tapio; Kaleva.fi,
11 ENERGISE Case Study Example II Starting point: Demand for communication connections in remote areas Encountered problems: Service level agreements (SLA) are focused on mobile customers, not operators of critical infrastructures - Unscheduled downtimes and service interruptions for maintenance - Long response times, especially during non-working times Changing coverage range from mobile cells depending on the number of connected clients No, or not reliable, redundancy of connection lines and equipment Missing financial incentives for smart investments (CAPEX favoured over OPEX) - Additional investment in secondary equipment with different depreciation periods - Additional training for technicians is required DSO as a customer not attractive enough, to justify adapted services Solution approach: Implementation of communication services entirely in-house. Current telco services and products do not fulfil the DSO s demand 11
12 Full ownership Asset ownership No own assets ENERGISE Results from the Case Studies Analysis Degree of envisaged asset ownership is key for decisions Asymmetric Valuation of Commercial Services and strategic lock in effects affect decisions Strong lock-in effect N / A Communication as a service small customer, high requirements Failure due to communication infrastructure or service Traditional approach Operator model own Operation 3rd party Loss for DSO Loss for Telco Provider 12
13 ENERGISE Tool and Benefits General approach for the toolkit Feedback from the stakeholders on the actual demand: Lack of information / examples what is working and what not. People concerned with the topics usually know very well the technical possibilities and theoretical solutions. Technology is not the problem, but the context (legal / regulatory, commercial) in which a technical solution is used. There is a strong tendency to prefer already existing solutions rather than trying something new. Where are the actual problems? The needed information (about working commercial solutions) is not available. Even if information is shared, presentations are often focused on technical issues and are not very profound. What would help the companies? Source of examples beyond the ever repeating projects that everybody already knows. Specific details why these solutions are working under the given circumstances. 13
14 ENERGISE What is the ENERGISE Toolkit? Comprehensive compilation of existing and feasible solutions for cross sector cooperation on a European scale The purpose is to provide tangible and practical guidance for the respective industries for solutions regarding coordinated usage and deployment of communication infrastructure Case study based representation of the existing implemented solutions (25-30 cases) Analysing the drivers for specific solutions and factors that determine best practices 14
15 ENERGISE Case Studies Excerpt Case Study Case Study 1 Case Study 2 Case Study 3 Country / Organisation Netherlands - DSO Latvia - DSO Application type Solution for Smart Meter Roll-out needed Asset strategy No TelCo assets No TelCo assets No TelCo assets Mother owns TelCo assets Communication becomes crucial factor Control is needed Communication becomes crucial factor Risk avoidance Communication becomes crucial factor Future networks are meshed Decision criteria BUT: Focus on core competences as DSO, not TelCo Does not want to be the owner of data communications infrastructure Cooperation with Mobile Operator is needed Find balance between level of control and access to TelCo knowledge Effective operator market to deploy smart meters at reasonable cost needed In the past Mobile operators have not met the expected SLAs Solution description Licence ownership, Ownership of infrastructure (antenna s, masts, core systems, etc.); Operated by telco operator Source as a Service from private MVNO, in combined contract for MVNO and DSO only owns Sim-cards Mother company has TelCo license, SLAs with mother company for Smart Meter operation 15
16 ENERGISE Toolkit Functionalities Different analyses and cases database Morphologic Analysis Case study database Decision tree 16
17 ENERGISE Contact Details Next Steps Collection of additional case studies Fact finding mission Portugal : - 27 th 28 th October: Workshop on Optimization Challenges in the Evolution of Energy Networks, Coimbra Fact finding mission Spain : - 15 th 17 th November: European Utility Week, Barcelona 16 th 17 th March: Final ENERGISE Dissemination Workshop, Brussels Information about the project Webpage ( Project leaflet Direct contact Daniel Schöllhorn Project Manager ENERGISE Uhlandstraße Berlin Mobile: Phone: daniel.schoellhorn@de.tuv.com 17
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