Mod. C004 v. 00 A SNAPSHOT OF SMART GRIDS ACHIEVEMENTS IN ITALY

Transcription

1 A SNAPSHOT OF SMART GRIDS ACHIEVEMENTS IN ITALY

2 KEY NATIONAL FIGURES TOTAL AREA: 301,340 km 2 LAND AREA: 294,140 km 2 TERRAIN TYPE: mostly rugged and mountainous; some plains, coastal lowlands POPULATION: 61,482,297 (July 2013 est.) URBAN POPULATION: 68% of total population (2010) RATE OF URBANIZATION: 0.5% annual rate of change ( est.) GOVERNMENT TYPE: Republic GDP (official exchange rate): $2.014 trillion (2012) GDP PER CAPITA: $30,600 (2012) INFLATION RATE: 3.3% (2012) (source CIA World Factbook ITALY ENERGY MIX (2011) (source GSE KEY ENERGY FIGURES ELECTRICITY PRODUCTION: billion kwh (2011) INSTALLED GENERATION CAPACITY: million kw (2011 est.) ELECTRICITY CONSUMPTION: billion kwh (2011) OVERALL LOSSES: 6.2% ELECTRICITY USES: o AGRICULTURE: 1.81% o INDUSTRY: 44.67% o TERTIARY: 31.07% o HOUSEHOLD: 22.44% electricity imports other sources THE PRIORITIES OF THE ITALIAN ENERGY STRATEGY 1. Foster Energy Efficiency: save an additional 20 MTOE of primary energy by 2020 (rising the national target to more than 25% - i.e. well above the European benchmark 2. Promote a competitive gas market, integrated with European markets and with prices aligned them, and with the possibility of becoming the main southern European hub 3. Sustainably develop renewables, exceeding the European targets for 2020, keeping energy bills under control, aligning incentives, selecting technologies. 4. Develop an electricity market fully integrated with the European market, gradually removing all distortions and absorbing current surplus production capacity, develop the electricity grid, to reduce congestions and bottlenecks, limit market inefficiencies and distortions, by rationalizing the system charges present in electricity bills, review the special conditions granted to specific categories of users. 5. Restructure the refining industry and the fuel distribution network, in order to achieve a more sustainable system with European levels of competitiveness and service quality. 6. Sustainably raise national hydrocarbons production, which will bring major economic and employment benefits, while observing the highest international standards in terms of safety and environmental protection. 7. Modernise the system of governance of the sector, with the aim of making decision-making processes more effective and more efficient.

3 KEY FIGURES OF RENEWABLES INTEGRATION IN ITALY In Italy, support schemes for RES-E are managed by GSE - Gestore dei Servizi Energetici. Several incentive schemes have been developed and applied since The following figure shows the most recent schemes and their development over time. CV (Certificati Verdi - Green Certificates): the mechanism is based on the obligation of conventional type electricity generators/importers to fulfill a minimum quota of energy produced from RES. If this cannot be fulfilled with actual plants, CV can be purchased on a trading platform. FVx (Conto Energia - Photovoltaics schemes): different schemes have been set up since 2005 to motivate the development of a PV bulk and distributed generation portfolio. The incentive scheme is based on a feed-in premium mechanism, in which a premium is awarded to the energy produced, in addition to the revenue from the energy injected into the grid TO (Tariffa Omnicomprensiva - All inclusive feed-in tariff): is applied to all small RES plants (< 200kW wind or < 1MW other). Cannot be applied to PV. The energy injected into the grid is purchased at incentive prices inclusive of energy granted incentive and value AD (Accesso Diretto Direct access): dedicated to micro RES plants (<60kW wind, 50kW hydro, 200kW biomass, 100kW biogas etc.). The incentive scheme is similar to the TO, except for the quantitative level of the incentive. REG (Registro piccolo impianti Qualified list of plants): dedicated to mid-size RES (60kW-5MW wind, 100kW-5MW biogas, 200kW-5MW biomass, 50kW-20MW hydro etc.). Incentives are allowed until the allowed quota of installed power is reached, depending on technologies. The incentive scheme is similar to the TO, except for the quantitative level of the incentive for plants < 1MW; a negative of the incentive modulation based on local hourly electricity price is applied on plants with higher ratings. AST (Aste Auctions): dedicated to plants with higher ratings (> 5MW wind, biomass, > 10MW hydro, > 20MW geothermal). Only qualified plants can access this scheme. Yearly (or six monthly) auctions bases are fixed, based on technologies. Plants are ranked based on the discount offered on the auction base. Admitted plants are incentivized based on the resulting price (auction base-discount offered). As a result of these incentive schemes, a very rapid growth of RES has been observed in the recent years: PV: the installed power of photovoltaic plants in 2012 was MW (3.470 in 2010), based on plants; the energy contribution from PV peaked from GWh in 2010 to GWh in 2012 Wind: the installed power of wind plants in 2011 was 6.936MW (5810 in 2010), based on 800 plants; the energy contribution from wind increased steadily from 6500 GWh in 2009, to 9100 GWh in 2010 and to 9800 in 2011 THE LIBERALISATION PROCESS OF THE ELECTRICITY SYSTEM Before the liberalization the electricity system was a virtual monopoly with a single vertically integrated national and public operator: Enel; The liberalization process started in 1988 with the publication of the National Energy Plan (PEN) and its actuation decree in 1991 (lgs 9/1991). This was initially applied through the CIP6 rules allowing every industrial operator to build plants having a power > 3MW based on renewables or assimilated and obliging Enel to dispatch the energy produced, recognizing a baseline energy price and additional incentives. This mechanism ended the monopoly of Enel. In 1995 the Regulatory Agency for Electricity and Gas (AEEG) was created In 1999 the decree 79/99 imposed the unbundling of vertically integrated companies which had to be separated into Generation, Transmission, Distribution and retail companies In 1999 Enel was privatized In 2007 the retail market was fully privatized: any customer can sign contracts with any electricity supplier; there is the possibility for household customers to keep a status of higher safeguard, where the contracts are managed by Acquirente Unico (AU), based on the price indications from the AEEG

4 THE STRUCTURE OF THE NETWORK Voltage levels: o 120/150 kv o 220 kv o 380 kv Line length (2011) o 120/150 kv: km o 220 kv: 3744 km o 380 kv: km Substations (2011): o 120/150 kv: 173 o 220 kv: 158 o 380 kv: 153 Total transformation power: MVA TRANSMISSION 380 kv DISTRIBUTION Voltage levels: o LV: 400 V o MV: 15/23 kv Line length (2011) o LV: km o MV: km Substations (2011): o HV-MV: about 2000 o MV-LV: more than Total transformation power: o HV-MV: MVA o MV-LV: MVA THE MAIN ACTORS OF THE ELECTRICITY SYSTEM Power producers: mostly private companies, no operator can own more than 50% of the installed power, they sell to wholesale operators or directly to the clients Importers: mostly private companies, they have an interconnection capacity and they arbitrate the power flows between Italy and the neighboring countries Transmission: a national monopoly. TERNA ( is the national transmission system operator, operating under concession and regulated by AEEG. TERNA owns over 98% of the transmission grid and is responsible of planning, operating and maintaining the transmission system. TERNA s major stakeholder is a public institution. Distribution: local monopolies. 140 DSOs operate the electricity distribution networks in Italy (49 DSOs with less than customers) and 1 main distribution company: ENEL Distribuzione ( is the first national DSO, covering the 86% of Italy's electricity demand. The most important local operators are A2A ( ACEA ( IRIDE, DEVAL, HERA; Retailers: mostly private companies, they buy energy from generators and they sell it to final users Regulator: Autorità per l Energia e il Gas (AEEG): establishes and updates the base electricity tariffs, the related parameters and the reference elements, proposes schemes for the renewal and the variation of licenses, supervises the compliance to competiveness rules, acts to protect the final user ( Electricity market manager: Gestore del Mercato Energetico (GME): manages the electricity exchange market, dispatches power plants and sets their remuneration, manages energy efficiency certificates and emission trading shares ( Operator for the higher safeguard customers: Acquirente Unico (AU): acts as the intermediate between the market and the household customers not willing to access the free market: buys on the wholesale market at conditions defined by the AEEG and delivers, through the local distribution companies Energy services operator: Gestore dei Servizi Energetici (GSE): promotes the development of renewable energy sources and energy efficiency by granting economic incentives and supporting the policy makers. Is the head company for GME, AU and RSE ( Research operator: Ricerca sul Sistema Energetico (RSE): carries out the research activities of general interest in the frame of the Ricerca di Sistema (RdS) framework. (

5 Massive roll-out best practice: Enel Distribuzione projects Enel Distribuzione SpA has already deployed a set of innovative smart grid tools in its industrial management procedures (> 2.5 billion investments) ranging from the smart metering, to the remote control and automation of the MV distribution network, the Work Force and the Asset Management. In particular, under the Telegestore project, the Automated Meter Management (AMM) System for low-voltage (LV) concentrators and remote meter management was deployed by Enel since 2001, before the mandatory installation programme of electronic meters set by the Italian Regulatory Body in The implementation of the project has led to the installation of more than 32 million smart meters, allowing to periodically collect data on voltage quality and interruptions, daily consumption, active and reactive energy measurements, and to remotely manage contractual activities. Meters are able to transmit data regarding consumption, receive updates of the contractual parameters and remotely manage the supply connectivity. Today with over 99% of electronic meters already installed in Italy, Enel is well ahead of the timetable fixed by the European Commission, of at least 80% by In 2011 more than 400 million remote readings and more than 9 million remote operations were performed. The Telegestore project, being completed in 2006 with duration of five years, has allowed approximately 500 million euro of yearly savings with reference to the following areas: Customer services: Remote reading, invoicing, customer information, bad payers management Company revenue protection: thefts and failures, self-consumption management, timely checks on meters Purchasing and logistics: purchasing standardization, warehouses, internal transportations Field operations: intervention on failures, activation/deactivation of customers, meter readings, installation and recovery, equipment replacement, access to the installation The installation of smart meters in the MV/LV substations has allowed energy balance activities to value energy losses and fraud detection. With the energy balance data from the AMM system, the success rate of the meter verification activity has increased from 5% (before the AMM) to 60%. Moreover, approximately 30,000 tons of CO2 emissions were estimated to be reduced from remote execution of customer management activities and meter readings in Furthermore, in late 2000, Enel launched the Remote Control and Automation project aimed at improving the quality of service, reducing the operating costs and updating the technology of network components. By integrating conventional electromechanical solutions with ICT ones in the MV distribution network operation, the Enel s Remote Control and Automation project has developed powerful techniques for real time monitoring and remote control of the most relevant nodes on the distribution network alongside solutions to automatically isolate faulty sections and restore the electric service. In fact, MV network automation allows to detect the grid section affected by a fault, to isolate it and to resupply the healthy sections located upstream the faulty one without any human operation. The Remote Control and Automation project, one of the most relevant worldwide by dimension, has involved HV/MV Primary Substations and over MV/LV Secondary Substations out of about Significant improvements of the average time delays to perform the first attempt of fault selection on a feeder have been achieved by the above described technique. In fact, while a traditional fault detection and isolation supported by field crews (i.e. manual) required on average about 50 min to resupply 95.4% customers, the remote control together with automation have shortened such delay down to about 4 min (over 90% less) and even better performances have been achieved over the years. With reference to the MV network automation, a key element was the contemporary implementation by Enel of a new grounding system in its MV network, for automatic earth fault isolation, which has allowed reducing the number and the average duration of outages due to earth faults on MV networks. Remarkable innovation has been introduced by Enel though the Work Force Management system (which significantly improved the logistic support to the Enel s crews by means of cartographic support available directly on board and interfaced through mobile applications), together with the Asset Management (based on cartographic census of network assets, database of network events, such as power outage notification, fault detection,etc. ) and optimization of network investments based on a risk analysis). The development of the AMM system within the Telegestore, as well as remote control and automation of more than 100,000 MV/LV substations, the Work Force Management system and the optimization of asset management led to a drastic cost per customer reduction and an improved quality of service. The systems implemented are in continuous evolution and new features, technologies and flexibility are tested and introduced towards a larger smart grids development.

6 KEY SMART GRIDS FACTS AND FIGURES TRANSMISSION NETWORK SMART GRIDS FEATURES DISTRIBUTION NETWORK SMART GRIDS FEATURES ELECTRIC VEHICLE CHARGING STATIONS SMART METERS FACTS: reactors FACTS: capacitors FACTS: phase shifters P.M.U. (million) Plant Control and Remote Operation Systems (SCTI): an integrated platform for remote monitoring and operation of transmission plants; Distributed grid Management based on space technologies (SPACE4ENERGY): manage grid configuration and protection, power flow planning and forecasting of production from RES; Development and use of advanced digital tools for Dynamic Network Simulation (SICRE), Operation network simulation (CRESO), Dynamic security assessment (DSA) Advanced equipment asset management (MBI): trends equipment conditions and operation, based on on-line monitoring of transformers, CTs, VTs, circuit breakers. Experiments of dynamic line loading, including the use of composite conductors 4 HVDC lines in operation STORAGE LAB: test of technological mix capable of optimizing the cost/benefit ratio of storage systems 100% HV/mv substations (> 2000) remotely controlled; 25% MV/LV Secondary Substations (> MV/LV SS) are remotely controlled; several thousands poletop MV Switches are remote controlled; few installations of remote control of lv breakers. Standardised solutions adopted. Improved neutral grounding system Automatic fault clearing procedures implemented on 70% of Mv lines; Remote management of MV fault detectors Installed in the deep of MV network; Web-based functions for network automation: on-line newtork schemes, real-time access to interruptions data, network consistency and management data, GIS and real time supply situation and access to AMI data; Planning tools for system expansion taking into account DG, RES forecast (MAGO), EVs, storage (7 trial applications: up to 2MVA, 2 MWh), demand response; Trial applications of advanced voltage control algorithms to manage high penetration of DG; 420 EV public charging stations installed in 60 provinces (out of these 300 are installed by ENEL); Quick/Slow charging (3 KW and 22 KW) and fast charging (43 KW) have been developed Fast charging (AC 43 KW and DC 50 KW) under test (to be initially used in gasoline filling station); 2500 EVs introduced in 2012 (mostly light duty quadricycles); Agreements with regions and municipalities to foster electric mobility (infrastructure); Focus on interoperability between energy operators. Number of Smart meters installed (more than 32 million); PLC communication between meter and concentrator (MV/lv substation), 2G/3G towards AMI system control center. Open communication protocol: Meters and More Enabled functionalities: remote reading and load profiles, remote customer and contract management; Additional devices to enable active demand and energy management, through enhanced bidirectional communication.

7 SMART GRIDS RESEARCH AND DEMONSTRATION PROJECTS Research projects of general interests RdS (Ricerca di Sistema): The RdS program is the research and development programme aimed at the technical and technological innovation of general interest for the electricity system in view of an enhancement of competitiveness, security and environmental compatibility, ensuring for the country conditions for a sustainable development. The necessity for financing this type of research activity emerged at the start of the liberalization process, to avoid a sudden drop in research activities of general interest and a prevailing of the competitive research activities. The financing of this activity is achieved through a levy on the electricity bill of each electricity consumer (with the present rules, the levy for an average household consumer dedicated to the RdS scheme is around 0.35 /year). Research programmes dealing with smart grids amount to 6-8 M /year and consider: integration of distributed generation, energy storage, active distribution network control, automation and related communication needs and technologies, power electronics, user network integration and system aspects of demand response, DC distribution, measuring and metering, modeling. The research activities on smart grids in the frame of RdS is carried out by RSE Ricerca sul Sistema Energetico. All results, reports, papers produced in the framework of RdS are public and can be consulted and downloaded from Demonstration projects awarded by the Energy Regulator (AEEG): In view of a wider understanding of the possible future regulatory mechanisms for motivating the distribution system operators to adapt their network to the fast changing conditions the Italian Regulator AEEG has adopted a series of measures for initiating pilot projects on the distribution/transmission networks in three different areas: AEEG 39/10: Increasing the hosting capacity for DG of active distribution networks: Pilot projects aimed at demonstrating the effectiveness of network smart grids measures to increase the hosting capability of distribution networks in presence of DG at a level that produces a reverse power flow from the distribution network back to the transmission network, at least for a portion of the year. Pilot projects are financed by means of a tariff-based incentive (+2% increase of the WACC - weighted average cost of capital for 12 years with respect to ordinary remuneration). Pilots projects must satisfy a certain number of criteria: The projects, consisting of advanced network automation and control, must consider portions of a real, working, medium voltage network, including distributed generation, with backward power flux for at least 1% of the time during the year; the project must use open-type technologies and communication protocols and the power quality regulation must be strictly followed; The evaluation/ranking criteria for selection includes the parameter Psmart (i.e. the increase in DGproduction that can be connected to the grid in safe conditions thanks to smart investments on the grid without reinforcing the electrical infrastructure). 8 projects have been awarded, namely: A2A Lambrate _MI, A2A Gavardo - BS, ACEA Malagrotta RM, Enel Distribuzione CP Carpinone IS; Deval Villeneuve AO; ASM Terni TR; ASSM Tolentino MC; ASSEM San Severino Marche MC. All projects consider at least one HV/mv substation and the mv system supplied, where distributed generation is present; the functionalities to be applied include: modernization of the medium voltage network supervision system using on-line remote controlled switching devices, reliability of the generation Interface Protection System using a fail-safe remote tripping approach to avoid unwanted islanding operation, advanced fault detection systems with increased logical selectivity to maintain an adequate level of system availability, innovative voltage control to allow the fulfillment of all power quality parameters, ICT infrastructures and systems using open protocols, interaction between DSO and TSO. Some of the projects also include demand response and smart electric vehicles charging management systems. The total budget for the projects is around 16.5 M AEEG 242/11: business models for EV public recharge infrastructure: Pilot projects aimed at demonstrating in real cases the possibility to implement different business models for the public re-charging of EVs: namely the DSO model, the LSP (Licensed Service Provider) model and the CSP (Competitive Service Provider Model). Normally, the investments for the setting up of public charging points are remunerated only based on the energy delivered including no remuneration for the investment in the RAB (remunerated asset base). In this specific pilot programs, a remuneration of max 728 /point/year (for 5 years) is awarded. 5 projects have been selected: DSO model: ENEL Distribuzione with 310 charging points, LSP model: A2A with 52 charging points, Parma with 200 charging points, CSP model: ENEL Energia with 26 charging points, Class Onlus with 150 charging points.

8 SMART GRIDS RESEARCH AND DEMONSTRATION PROJECTS (continued) AEEG 288/2012: Energy storage systems (ESSS) demonstration projects: Pilot projects aimed at demonstrating in real cases the possibility to reduce the curtailments on RESs production due to congestions, for at least 150 charge/discharge cycles/year, providing primary frequency regulation and managing reactive power flow; the projects must be applied on well-identified portion of the national transmission grid (equipped with dynamic thermal rating) subject to RESs penetration with temporary criticalities. 6 projects have been awarded, for a total of 72MWh and 10.8 MW. Projects are located on 2 portions of the 380 kv system of TERNA. Cost-benefits analysis have been conducted (and resulted the most critical aspect with the present state of technology). Interregional Operative Programme on renewables and energy efficiency awarded by the Ministry of Economic Development (MiSE): This program funds infrastructure enhancements aimed at energy efficiency and renewables integration in four regions of Southern Italy, namely: Calabria, Campania, Puglia and Sicilia). Funds are a combination of national resources and European resources for the development of Southern regions. Enel Distribuzione has been awarded under 3 programmes: Enhancing medium voltage networks to host renewables: the programme (with 4 independent regional projects), whose budget is 123 M for the period , focuses on distributed generation (with particular attention to PV plants with peak power between 100 kw and 1 MW) in view of maximizing the green energy produced (reduction of the curtailment of generation). The aim of the programme is to trial test solutions for reinforcing electrical infrastructures to allow the development of new production plants, with a view of a rational use of the territory and of a reliable electricity supply service. 30 new HV-mv substations (8 in Puglia, 4 in Campania, 7 in Calabria, 11 in Sicilia regions) are planned with all related connections and lines on the high voltage and medium voltage sides. New technologies are used for power and communication equipment as well as for the remote control of the plants. Additionally, the programme includes also the empowerment of 30 already existing HV/MV Primary Substations. Intelligent medium voltage networks: the programme (with 4 independent regional projects) whose budget is 77 M for the period , focuses on distributed generation (with particular attention to PV plants with peak power between 100 kw and 1 MW) in view of maximizing the green energy produced (reduction of the curtailment of generation). The aim of the project is to trial test solutions for the network management in a transition phase between passive distribution networks and passive/active networks. Special focus is given to voltage regulation on the medium voltage nodes also in case of tripping of DG avoiding unwanted islanding conditions, dispatching of the energy produced by DG and the use of meshed distribution network operating conditions using an advanced communication (wide band) and control between substations, generators and loads, and the refurbishment of central remote-control centers, remote terminal units, protections, fault detection systems and generator/user interfaces. Energy Storage Systems: 3 energy storage systems in HV/MV primary Substation are being installed in Sicilia, Puglia and Calabria to mitigate intermittency in renewable energy production. FP7 funded demonstration projects In the framework of the FP7 EU Programme, the GRID4EU project has been launched in 2011 with duration of 4 years. The project, coordinated by ERDF has technical management of Enel, will implement 6 demonstration projects in 6 EU countries (Italy, France, Germany, Sweden, Spain and Czech Republic), proposing solutions that go beyond the existing limits for electricity networks through the large scale integration of distributed generation, the improvement of energy efficiency, the enabling and integration of active demand and new electricity uses. In particular, Enel demonstration project in Italy (Demo4) aims at increasing the Medium Voltage (MV) network's hosting capacity for Distributed Energy Resources (DER, in particular solar), by introducing Active Control and Demand Response of MV generators, controllable loads and storage system, which will be tested under real operating conditions. In particular, for implementing the Active Control and Demand Response of DER, the project will adopt an advanced control system communicating with all the network relevant nodes (MV generators, HV/MV and MV/LV substations, and a storage facility), through an always on IP standard-based communication solution. The demonstration will be carried out in the Emilia Romagna Region, area of Forli-Cesena, characterized by a high penetration of solar generation and relatively low consumptions Smart cities projects: Many cities in Italy have initiated projects to enable the progressive transformation towards a smart city. Nearly all projects comprise, among the different chapters related to general welfare and efficiency (remote medical care, e-management, better use of soil and space, traffic control, air quality monitoring, waste and water management, telecommunication and cultural growth etc.) an energy chapter. In particular, attention is given to energy efficiency of buildings (wall insulation, integration of renewables, district heating, distributed tri-generation, energy management and integrated communication, telemetering, remote control, safety, home energy management etc.) with particular reference to public buildings, historical buildings and social buildings; most programs also consider smart grids as integral parts of the planning: in particular for what these technologies can give in terms of integration of renewables, energy monitoring and efficiency and electric mobility. Genova smart city project: includes also specific measures to electrify the harbor, thus reducing the pollution from ships diesel engines while ashore; Torino smart city project: focuses on a common information platform available for the integration of all the information to develop smart city applications; Bari smart city project: focuses on the European integration and related interoperable solutions, with special focus on the dramatic enhancement of the water supply and collection. Moreover, in Bari and Cosenza a project funded by the Italian Ministry of University and Research (MIUR) has been launched in 2012, referred as RES NOVAE, focusing on the development of smart grid technologies for LV network and innovative applications for energy management. Milano smart city project: focuses on industrial reconversion, use of biomass, children care, arts and tourism Other Smart City projects at a first stage have to be mentioned in Italy, such as Bologna, Pisa, Piacenza and L Aquila Smart City.