GLOBAL SMART GRID DRIVERS

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1 GLOBAL SMART GRID DRIVERS IEA/SEAI, DUBLIN IRELAND COLIN MCKERRACHER 12 SEPTEMBER 2012 GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

2 CONTENTS Smart grid: a global market Smart grid drivers Case studies GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

3 SMART GRID DRIVERS Need for new generation investment Energy security Ageing infrastructure System reliability / quality of service Climate change / environmental drivers Peak demand constraints Increasing distributed energy resources Demand growth and new loads Increasing renewable generation Note: 26 responses received; total 114 votes cast. New loads = electric vehicles, heat pumps etc. Source: BNEF Pre-Forum Survey. GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

4 DRIVERS: WIND PENETRATION (% OF INSTALLED CAPACITY) Poland USA France China Belgium Italy UK Sweden India Greece Netherlands Ireland Germany Spain Portugal Denmark Rest of world Europe 0% 5% 10% 15% 20% 25% 30% 35% Source: Bloomberg New Energy Finance. GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

5 DRIVERS: SYSTEM AVERAGE INTERRUPTION INDICES BY COUNTRY US Spain UK Austria France Italy Netherlands Denmark Germany Duration index Frequency index Note: 2007 data. Duration Frequency Source: CEER, Bloomberg New Energy Finance. GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

6 DRIVERS: TRANSMISSION & DISTRIBUTION LOSSES IN G20 NATIONS, 2009 (% OF POWER GENERATED) Germany Japan South Korea Australia China France US Italy Canada South Africa UK Indonesia Russia Saudi Arabia Turkey Argentina Brazil Mexico India NON-TECHNICAL LOSSES South Africa: $600m/yr Turkey: $895m/yr Brazil: $5.1bn/yr India: $5bn/yr 0% 5% 10% 15% 20% 25% Source: METI, various national sources, Bloomberg New Energy Finance. GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

7 SMART GRID DRIVERS AND PROJECT TYPES Increasing renewable generation Improved grid reliability Reduce non technical losses AMI Distribution automation HEMS/ BEMS Energy storage Demand response EV integration Rising peak demand Ageing infrastructure Source: Bloomberg New Energy Finance.. GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

8 CONTENTS Smart grid: a global market Smart grid drivers Case studies GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

9 CASE STUDY- AUSTRALIA T&D INFRASTRUCTURE INVESTMENTS (AUD M) ActewAGL (ACT) Aurora Energy (TAS) ETSA (SA) Jemena (VIC) CitiPower (VIC) United Energy (VIC) SP Ausnet (VIC) Powercor (VIC) Essential Energy (NSW) Endeavor Energy (NSW) Ausgrid (NSW) Ergon Energy (QLD) Energex (QLD) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Current regulatory period Previous regulatory period Regulated asset base Source: Bloomberg New Energy Finance.. GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

10 SMART GRID DRIVERS: US VS. EUROPE KEY DRIVERS FOR INVESTMENT 1 ECONOMIC $4.5bn stimulus Job creation Tech companies 1 CLEAN ENERGY Efficiency RE and DER Electric vehicles 2 OPERATIONS 3 RELIABILITY Reduce opex Improve asset mgmt Improve SAIDI/SAIFI Manage major storms 2 LIBERALIS- ATION 3 MARKETS / INTEGRATION Deregulation Competition Service innovation European power markets European super-grid 4 ENERGY SECURITY Energy efficiency Peak load management Integrate RE / EV 4 OPERATIONS Reduce opex Improve asset mgmt GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

11 BUT, THE PICTURE CAN CHANGE GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

12 STATES AND COUNTRIES WITH OPT-OUT PROVISIONS FOR CONSUMERS TO REFUSE SMART METERS Canada United States Europe In place Proposed Note: No opt-out programme in UK, but regulator has clarified that consumers cannot be forced to have a smart meter. Australia opt-out is for TOU only. Australia Source: Bloomberg New Energy Finance GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

13 COPYRIGHT AND DISCLAIMER This publication is the copyright of Bloomberg New Energy Finance. No portion of this document may be photocopied, reproduced, scanned into an electronic system or transmitted, forwarded or distributed in any way without prior consent of Bloomberg New Energy Finance. The information contained in this publication is derived from carefully selected public sources we believe are reasonable. We do not guarantee its accuracy or completeness and nothing in this document shall be construed to be a representation of such a guarantee. Any opinions expressed reflect the current judgment of the author of the relevant article or features, and does not necessarily reflect the opinion of Bloomberg New Energy Finance. The opinions presented are subject to change without notice. Bloomberg New Energy Finance accepts no responsibility for any liability arising from use of this document or its contents. Bloomberg New Energy Finance does not consider itself to undertake Regulated Activities as defined in Section 22 of the Financial Services and Markets Act 2000 and is not registered with the Financial Services Authority of the UK. GLOBAL SMART GRID DRIVERS, 12 SEPTEMBER

14 GLOBAL SMART GRID DRIVERS COLIN MCKERRACHER MARKETS Renewable Energy Carbon Markets Energy Smart Technologies Renewable Energy Certificates Carbon Capture & Storage Power Water Nuclear SERVICES Insight: research, analysis & forecasting Industry Intelligence: data & analytics News & Briefing: daily, weekly & monthly Applied Research: custom research & data mining Knowledge Services: Summit, Leadership Forums, Executive Briefings & workshops Subscription-based news, data and analysis to support your decisions in clean energy, power and water and the carbon markets

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