Enel s experience on smart grids

Enel s experience on smart grids Projects and Strategy Shenzhen, September 2014

Agenda Enel profile Overview of smart grid technologies Smart Grids and Smart Cities projects in Italy and Europe 2

Enel: an international energy operator Presence in 40 Countries Generation capacity 98,916 MW Annual production 286 TWh Sales of electricity 296 TWh Distribution of electricity 404 TWh Electricity lines 1,863,524 km EBITDA 17.0 Bln Customers 61 million 3

Enel Distribuzione: the largest Italian DSO Business Size The Company Headcount: 17,748 people EBITDA: 4,000 M Customers: Distributed Energy: Passive Customers connected (Y2013): Distributed Generators Connected (Y2013): Market share - Customers: Public Lighting Spot Lights: 31.7 M 227.2 TWh 3.0 GW 2.0 GW 85% 2 million The Grid MV Lines: 345,000 Km LV Lines: 767,000 Km Primary Substations: 2,134 Secondary Substations: 430,000 Active Meters: 31.7 M Second Largest DSO Customers (M) Grid Size (Million of meters) 1.105 4

Enel profile Overview of smart grid technologies Smart Grids and Smart Cities projects in Italy and Europe 5

Distribution Business is at a Crossroad because of emerging technological and market trends It will also require reconsidering of the role of DSOs. In particular it needs to be ensured that their regulated activities are limited to tasks which are best performed by a natural monopoly and that new services made possible by new technologies are developed in competitive markets. EC communication on internal energy market 6

Smart Grids technologies Enel s first generation : 2001-2010 Automatic Meter Management Network control and automation Work Force Management Asset Management Telegestore is fully operational on 32+ Million Customers Leading Technology Excellence in operation HV and MV network remotely operated More than 100.000 MV substations remote controlled Automatic fault clearing procedures 5.200 vehicles equipped Logistic support to Enel crews GIS cartography of Enel network available on board All processes through mobile applications Connection from field to the centre for Enel crews Cartographic census of network assets Database of network events (power outage notification, fault detection,etc) Optimization of network investments based on a risk analysis 7

Important results achieved Opex ( /Customer) Enel Distribuzione Performance 80 60 40 130 2001 (128 min; 80 /Customer) 2002 2003 80 2004 2005 2006 2007 2008 2009 2010 2012 (45 min; 52 /Cust) 30 Electric Tariff - Average cost (c /kwh) 18,93 12,08 Distribution -32% 2001 2013 Quality of Service SAIDI (minutes per year) Continuous Improvement 8

Smart Grids technologies in Enel Distribuzione Smart Metering Infrastructure: Remote meter reading and mgt LV monitoring and Outages Mgt Fraud detection and balancing Reliable billing Fast switching Data validation and settlement Active Demand and VAS enabled (Smart Info) SMART METERING INFRASTRUCTURE SMART GRID PILLARS EV charging infrastructure Mgt: Monitoring and control of charging process Interoperable and Multivendor EV charging Vehicle-to-Grid and VAS enabled Load Shaping, load flexibility Network Management: Remote Control and Automation Monitoring in real time Planning and Maintenance Information Exchange with the TSO Information Exchange with PA NETWORK MGT DER Integration: DER DER monitoring Forecasting Information Exchange with INTEGRATION the TSO DER control Voltage regulation Local Dispatching Storage 9

DER INTEGRATION SMART GRID PILLARS DER Integration ACTORS 10

The massive growth of DG from RES in Italy A changing environment with new challenges The ambitious national support schemes for Low-carbon generation has led to a significant market penetration of distributed generation (DG) from renewable energy sources Non-RES Hydro Bio&Waste Solar 25,5 2,2 1,0 2,4 16,1 DG Connection to the Enel s Network HV: AT: 5,1 GW MV: MT: 15,1 GW LV: BT: 5,3 5,3 GW GW 25,6 25,5 23,8 19,1 27,1 28,5 29,8 31 Wind 3,8 2,4 3,1 4,7 6,4 9,1 Connection as of January 2014 (GW) The increased share of RES connected urgently requires the evolution of the distribution network management 11

requires Smart Integration and management of DG by the DSO RES control Increased interaction between TSO an DSO RES forecast Storage

New active grid functionalities under testing in Enel pilot projects 13

Access options Which scenario for the future? 14

Focus on a real Smart Grid component The Smart Termination Upgrade a classical MV grid to a real Smart Grid Increase the measurement points on the MV grid Retrofit existing MV switchboards (RMU and AIS) Suitable, simple and cost effective solution. 15

Focus on a real Smart Grid component The Smart Termination Line current and voltage signals, for Enel 揜 GDM? Smart Grids devices. polyphase and phase-to-ground faults voltage absence metering I, V, P and Q on the MV line metering voltage and current THD driving the circuit breaker opening and closing interfacing with the MV grid generators 16

Focus on a real Smart Grid component The Smart Termination 3M has developed a fully innovative solution integrating Pre-calibrated High Accuracy Current and Voltage Passive Sensors with Cold Shrink MV Accessories design. The 3M TM Sensored Termination and Plug-in connector are suitable for fast and easy retrofitting a large variety of existing MV switchgears without upgrading structures. 17

Focus on a real Smart Grid component The Smart Termination High Measurement Accuracy 1. Existing std termination Passive sensors No need for field calibration One piece Plug & Play Cost effective Retrofit solution Easy and fast installation No intervention on the MV switchboards structure Single solution for different cable types and size 2. Cable cutting 3. Cable preparation 4. Plug and install 18

Focus on a real Smart Grid component The Smart Termination Pilot installation Very satisfactory performance of the sensor + electronics system. Suitable for the most commonly used MV cable types and sizes Quickandcosteffectiveupgradeofalargevarietyof existing MV switchboards High accuracy sensors Separate electronic and sensors supply No intervention on the MV switchboards structure 19

SMART METERING INFRASTRUCTURE SMART GRID PILLAR Smart Metering Infrastructure ACTORS 20

Not only energy metering Back MEASUREMENT Measurement of Active/Reactive Energy and average power, Office Bi-directional function (prosumers) Flexibility: a huge spectrum of possible tariff schemes (including Time Of Use and prepayment) GSM/GPRS Concentrator BREAKER EMBEDDED Activation/deactivation, power control, power reduction (bad PLC payer management) QUALITY OF SERVICE Storage of up 10 voltage interruptions and related information Sampling of voltage slow variation according to European Standard EN 50160 Low Voltage Line FRAUD DETECTION Fraud detection functions to protect revenues of supplier and system (anti tamper, capillary energy balance, load curve control) Key measurement device with all the main electrical parameters at the customers premises 21

Frauds detection LV energy balance - TR balance TR Balance smart meter (GET4S-GISS) GSM CBT/LVC AMM BTS 1. Remote Energy Balance at secondary substation level 2. Remote readings to check the customer consumption profile 3. Global LV energy losses estimation 4. Chromatic geo referencing and mapping of the energy losses distribution Customers smart meters 22

Fraud detection Through the use of Big Data and Machine Learning 23

Enel s Smart Info Customer awareness Fully exploiting a consolidated smart metering infrastructure, Enel has developed a new generation of solutions Enel smart info Ensures customers have easy access to complementary information in real time and historical energy consumptions allowing detailed selfchecks 1. Plugged into any electricity sockets in the house 2. Makes consumption or generation data available 3. Univocally associated to customer s own meter Certified metering data are made easily accessible to market players in a not discriminatory way to provide new services and implement energy efficient improvement measures (e.g. in-home automation, active demand, etc.) 24

SMART GRID PILLARS Electric Mobility ACTORS 25

About 2000 EVs charging stations installed in Italy and Spain Pole station Fast Recharge Box Station Open DSO multivendor infrastructure 26

Charging Infrastructure Remote Management Enabling market players in providing services to the customers www.eneldrive.it App for ipad, iphone, Android Reservation services 27

NETWORK MGT SMART GRID PILLARS Network Management 28

Enel profile Overview of smart grid technologies Smart Grids projects in Italy and Europe 29

Enel s smart grid experience A complete set of Smart Grids projects already launched in Italy Included in PCI list - Call expected in 2014 GreenMe Duration: 2015-2019 Budget: 230 Mln Funding: CEF ELECTRIC MOBILITY Agreement with ENI Agreement with RER Agreement with ACEA Poste Italiane National Mobility Plan Duration : 2011-2015 Budget : 54M, Demo4 8,2M Funding: FP7 Duration: 2011-201 Funding: E@H Proposal under evaluation PUGLIA ACTIVE NETWORK Duration: 2014-2018 Budget: 170 Mln Funding: NER300 Duration : 2011-2015 Budget : 42 M Funding : FP7 Duration : 2009-2013 Budget : 16,1 M Funding : FP7 Duration: 2012-2015 Budget : 24 M Funding: MIUR PROGETTO ISERNIA Duration: 2011-2015 Budget : 10 M Funding: +2% WACC (AEEG) PIANO OPERATIVO INTERREGIONALE Duration : 2012- Budget : 4,1 M Funding : FP7 Duration : 2011-2014 Budget : 4,2 M Funding : FP7 Duration: 2013-2016 Funding : EC Budget : 7.9M Duration : 2009-2014 Budget : 123 M Enhancing MV networks to host RES; 77 M Intelligent MV networks Funding : Structural Funds 30

Some challenges need to be addressed for further Smart Grids development what is needed now are the right regulatory and market conditions, financial incentives and a common vision to press ahead with large-scale projects Standardization and integration Business case and Financing European/international interoperability and technology integration not only technology innovation Huge investment needs and large demonstrators need to be supported to accelerate Smart Grids development Fundamental bringing the customer on-board Difficult to accelerate Smart Grids deployment without revising the regulatory frameworks Public awareness and acceptance Market and Regulation 31