Seizing the smart grid opportunity: An industry wide view...

Seizing the smart grid opportunity: An industry wide view on how to overcome the

barriers to smart grid development

Tuesday 16 April 2013

Welcome and Opening Remarks

Julian David, Director General,

Intellect

Setting the scene: Smart Grid today and Smart Grid tomorrow

David Smith, Chief Executive,

Energy Networks Association (Chair)

Hannah Nixon, Senior Partner – Distribution, Ofgem

Valerié Lorgé, Programme Manager,

EU Commission – Smart Grid Task Force

Smart Grid development in Britain

Hannah Nixon, Senior Partner

Ofgem

6

The industry is facing unprecedented change

De-carbonisation

Security of Supply

Ageing Assets

Affordability

ELECTRICITY NETWORKS

GAS

NETWORKS

• Renewables / new generation

• Smart Grids

• Electricity storage

• Electric vehicles

• Different network patterns

• Electrification of heat

• Energy efficiency

• Local generation

• Demand Side Management

• Carbon Capture and Storage

• Biomethane

• HVDC

• Skills shortages

7

RIIO-ED1 key challenge

standard asset life

2020 targets

ED1 ED2

Driving factors •Feed-in tariffs •RHI •Other incentive mechanisms •Local planning rules •Technological developments & reductions in cost

Facilitating factors

• Investment to expand and reinforce the distribution network

•Greater use of smart grid technology & DSR to maximise network flexibility at minimum cost

uncertainty around the characteristics, rate and

location of take-up of these technologies

Issues to consider for ED1

• DNO approach to developing business plans – scenarios and investment justification

•Outputs DNOs are required to deliver – longer term?

•Barriers to DNOs adopting commercial arrangements to manage demand and generation output

•Incentives and uncertainty mechanisms

Ensure low carbon technologies can connect in appropriate time at appropriate cost

10

Development of Smart Grids encouraged through:

= + +

Core price control

incentives

Giving third parties a greater

role in delivery

Innovation

stimulus package

Taking Smart Grids forward: RIIO framework

Revenue Incentives Innovation Outputs

• RIIO - A new way of setting revenue earnings for network companies paid for by charges levied on network users over 8 year period

• Networks will need to be smarter, integrate intermittent sources and encourage customers to manage their demand

• The shape of the low carbon future is unclear and companies will need to innovate and consider smart grid solutions

11

High level framework - Outputs & Incentives

• The efficiency incentive (sharing factor) will make DNOs consider the most efficient response

• DNOs incentivised to use Smart Grids where it can maintain reliability or connect new

customers more quickly and at lower cost • LCNF today (NIA/NIC in the future) will allow development of new Smart Grid

solutions

12

Timing

RIIO-ED1

Key Parameters:

• CoE: 6.0–7.2%

• CoD: Indexed

• Gearing: will be based on assessment of cash flow volatility, business plans, CoE, and RoRE

• Asset lives: 20 to 45 years, transition as required

• RoRE: upside to provide potential for double-digit returns on notional equity; downside at or below CoD

Key Issues:

• Timely & cost-effective connection of new low-carbon technologies

• New types of generation

• New and unusual demand

• Uncertainty of take up of new technologies (e.g. local generation, heat pumps, electric vehicles)

• Consider tools like smart grids

13

Currently over £165m of customers’ money invested in LCN Fund trials exploring Smart Grid solutions

Companies must engage with partners, collaborators and service providers

Learning being produced and feeding into RIIO-ED1:

• Knowledge dissemination • Annual LCN Fund Conference • Smart Grids ENA Portal • Closedown reports • IPR arrangements

Expect DNOs to utilise learning in ED1 business plans. Smart Grids likely to be useful to DNOs in 2 ways:

1. Act as lower cost alternative to accommodate new load or generation 2. Can delay the need to take investment decision until there is greater

certainty

Smart Grids and the Low Carbon Networks Fund

14

Smart Grid Forum

• Established by DECC & Ofgem in May 2011

• Brings together DNOs, NG, suppliers, technology providers, consumer groups, academics, Government and Regulator

• 2nd year work programme consisted of 5 work streams

Work stream Details

WS1 Developed DECC low carbon scenarios

WS2 - closed High level Smart Grids evaluation framework

WS3 DNOs model building on evaluation framework

WS4 Identifying closing doors

WS5 Ways of working – learning dissemination

WS6 Regulatory & commercial issues

Year 3 work programme and potential new work steams to be considered by the forum at its next meeting on 25 April

15

Incentives on customers to actively engage

Costs of accommodating additional load and generation at existing domestic premises continue to be socialised until sufficient smart metering data is available

Recognise that this may reduce incentive for engaging with DNOs as means of reducing costs

Number of separate issues being progressed

1. Achieving upfront notification of where new low carbon technologies are connecting

2. Ensure that there is an incentive on customers to engage with Smart Grids and to manage electricity usage

There are a number of options to address (2) including DUOS charges, load limiters, automated response, other market solutions

16

Work stream 6 – further programme

Develop a number of options for the development of and consumer engagement with Smart Grids Stage 1

A B C D

Roles and relationships for relevant parties under different options & trigger points for these roles

Stage 2

Commercial /regulatory arrangements for each option to effectively discharge roles & identify barriers to and enablers for these arrangements

Stage 3

Output

Defined roles and relationships with supporting commercial/regulatory arrangements across a range of options & trigger points

Energy

Energy

EU Support and

Actions towards

Smart Grid

Development

Seizing the Smart Grid opportunity:

Industry view on how to overcome

barriers to development

Valérie Lorgé

European Commission, DG ENER

London, 16 April 2013

Energy

Significant change of energy systems

Decarbonisation objectives

Single Market by 2014

Technological progress

Energy Roadmap 2050: + 35-40% electricity

Energy

20

Smart Grids: a complex but effective solution !

Energy

21

6 Ways Smart Meters Benefit Consumers

1. Energy Savings more accurate and frequent consumption data demonstrably

help consumers reduce their consumption and save money

2. Energy Efficiency more detailed consumption measurements help consumers

identify opportunities for energy efficiency improvements

3. Innovative

Services

smart meters are indispensable for smart home

solutions/home automation, reducing energy costs

4. Empowerment switching suppliers, modifying contractual terms, etc.

becomes easier, faster and cheaper

5. Sustainability use of local renewable sources and storage potential (micro-

grids), electromobility become easier

6. Distribution

System Efficiency

management of the distribution systems becomes cheaper

and more effective, leading to lower distribution costs

Energy

Smart Grids: multi-piece puzzles for many players

22

System Complexity?

Investment

Needs?

Industry

Incentives?

Consumer

Involvement?

Energy

We tackle key Smart Grid challenges

23

System

Complexity

•Standardization

•Seeking & promoting Energy/ICT/Telecom synergies

Industry

Incentives

• Priority to Smart Grids within regulatory framework, including in

Connecting Europe Facility

Consumer

involvement

• Consumer oriented retail market models promoted

• Smart meters: functionalities to benefit consumers

• Data Protection and Security

• Retail price regulation to be assessed by full impact on demand

response, energy efficiency, consumer benefit, sector impact

http://www.123rf.com/photo_11578852_high-resolution-3d-render-of-construction-sign-message-board-and-cones--we.html

Energy

Driving forces for Smart Grids

Third Energy Package

Energy Efficiency Directive

Communication on Smart Grids

Regulation on guidelines for trans-European

energy infrastructure

Standardisation Mandates

M/441 Smart Meters M/468 Electric Vehicles M/490 Smart Grids

Recommendation on preparations for the roll out:

- Cost Benefit Analyses

- Common minimum functionalities

- Data protection, privacy, security

Energy

25

Cost Benefit Analysis and planning of roll-out

Energy

Roll-out plans for smart electricity metering systems

Sweden 2003 2009 Completed

Italy 2001 2011 Completed (ENEL: 2001-2006)

Finland Mandated 2009 2013

Malta Mandated 2009 2013

Spain Mandated 2011 2018

Austria Mandated 2012 2019

Poland Under Discussion 2012 2020

Estonia Mandated 2013 2017

Romania Under Discussion 2013 2020

Greece Mandated 2014 2020

UK Mandated 2014 2020

France Mandated (timetable TBC) 2014 2020

Netherlands Mandated (timetable TBC) 2014 2020

Denmark Mandated (1.5mn SM already installed) ? 2020

Luxembourg Mandated 2015 2018

Ireland Mandated 2016 2019

Electricity Smart Meters Roll-Out Timelines in MS (at least 80% coverage)

Energy

Smart Grids Task Force

European Commission

Technology

Supply

Consumers DSOs TSOs Regulators

•Ad-hoc expert working groups

Florence

Forum London

Forum

High Level Steering Committee

Energy

Smart Grids Task Force 2012-2013 http://ec.europa.eu/energy/gas_electricity/smartgrids/taskforce_en.htm

EG1: Standards Validation of M/490 work programme

1st and 2nd set of standards

Interoperability and Conformance testing map

Coordination with other mandates

EG2: Data Protection and Security

DPIA template

Cyber security assessment framework

Consultation minimum security requirements

EG3: Regulation Identification of data handling options

Implications for regulatory framework

EG4: Infrastructure PCI identification process

Organisation of structures and procedures

EG5: Industrial Policy Identification of conditions for investment and

speeding up technology deployment

Energy

Calls for a collaborative approach of policy-makers, industry and

regulators for consumers' benefit.

Opens doors to win-win situation:

Security of supply through better local balancing

Involvement of consumers in the market (micro-generation, etc.)

Empowerment of consumers through demand response => savings

Cost-efficiencies for DSOs & suppliers, new business opportunities for 3rd parties

Success depends on criteria decided largely by Member States:

Smart Meters functionalities (include those also benefiting consumers)

Retail market competition to breed innovative solutions and lower costs

Commission presently assessing CBAs prepared by MS

Assessment and benchmarking under way > Benchmarking report planned for 2013

Successful roll-out of smart metering is key

Energy

Thank you for your attention!

[email protected] 30

mailto:[email protected]

Setting the scene: Smart Grid today and Smart Grid tomorrow

David Smith, Chief Executive,

Energy Networks Association (Chair)

Hannah Nixon, Senior Partner – Distribution, Ofgem

Valerié Lorgé, Programme Manager,

EU Commission – Smart Grid Task Force

Coffee and Networking Break

Setting standards for the future

Dr Howard Porter, Chief Executive, BEAMA (Chair)

David Johnson, Steering Group Member,

CEN/CENELEC and ETSI – Smart Grid Coordination

David Spillett, Engineering Policy & Standards

Manager, Energy Networks Association

Richard Schomberg, VP Smart Energy Standards,

EDF Group and Chairman of IEC’s Strategic Group

on Smart Grid

Smart Grid Coordination Group

European Standards for the Smart Grid

Where are we today?


David JOHNSON

CEN-CENELEC-ETSI Smart Grid Coordination Group

2013-04-16© CEN-CENELEC-ETSI


Mandate M/490

Mandate parallels M/441 (smart metering)

Mandate calls for:

- Reference architecture A technical reference architecture, which will represent the functional information data flows between the main domains and integrate

many systems and subsystems architectures.

- Sustainable processes Sustainable standardisation processes and collaborative tools to enable stakeholder interactions, to improve the two above and adapt them to new requirements based on gap analysis, while ensuring the fit to high level system constraints such as interoperability, security, and privacy, etc.

- Set of consistent standards A set of consistent standards, which will support the information exchange (communication protocols and data models) and the integration of all users into the electric system operation.

David JOHNSON , 2013-04-16 - © CEN-CENELEC-ETSI 36


SG-CG – Who are we?

David JOHNSON , 2013-04-16- © CEN-CENELEC-ETSI 37

SMART GRID Coordination Group

(established June 2011)

JTC 1 SC 27

CO

JTC 1 SC 27

CO

TC ITS TC ERM

TC M2M TC BRAN

TC TISPAN Board

TC SCP

TC PLT

TC 287

TC 57 SM - CG

SM - CG TC ATTM

TC 8X

TC 247

TC 13 TC 205

TC ITS TC ERM

TC M2M TC BRAN

TC TISPAN Board

TC SCP

TC PLT

TC 287

TC 57 SM - CG

SM - CG TC ATTM

TC 8X

TC 247

TC 13 TC 205


Organisation during 2011-12


Mandate Scope

Smart Grid

Coordination

Group(former JWG)

EC

Reference

Group

Process

Team

Security

Team

First Set of

Standards

Team

Architecture

Team

Steering

Committee

Further

Tasks

• Report 2.0

• Liaisons

• Promotion

New joint WGs

Existing WGs

• NIST

• JISC

• China

• Etc.

TC LevelTC Level

SGSG--CG LevelCG Level

EC LevelEC Level

New joint WGs

Existing WGs

New joint WGs

Existing WGs

New joint WGs

Existing WGs

M/441

M/468

coordination

Setup

• Successor of Joint Working Group (JWG) on standards for Smart Grids (May 2010-June 2011)

• 4 Working Groups with more than 300 experts (First Set of Standards, Reference Architecture, Sustainable Processes and SG Information Security)

Main tasks

• To coordinate and manage the whole work process concerning the smart grid mandate M/490

• To keep and drive contact with other regional and international activities

23.10.12

Plenary


Expectations


Easy to use

Give guidance - Support implementation

Inclusive

Include all stakeholders

Comprehensive

Show available and coming standards

Future proof

Open to include new developments

International outreach

Promote European Approach

Distribution System

Operators, Energy suppliers,

Consumer organisations

European Commission,

Regulators

Standardisation

Organisations

Technology suppliers,

manufacturers,

system integrators

Transmission System

Operators,

ICT / Telcos


Systematic approach

SG-CG process for First set of standards

1. Start with typical industry arrangements

• Entry point: “Systems” = typical industry arrangements

2. Identify related functions

• List of use cases supported and implemented by “system”

3. Map to architecture model

• Identification of interfaces on component, communication and information layer

4. Identify standards

• Identification of list of standards ready for implementation



Entry Point


First set of standards systems…

• cover all domains of the Smart Grid plane

• cover all actors of the Smart Grid

• support the high level services and functions as defined by the EC

List of systems covered


Smart Grid Architecture Model


Mapping to interoperability layers

Mapping to SGAM (Smart Grid Architecture Model)

• SGAM provides common base for all stakeholders

• Description of interoperability layers business, function, information, communication and component

• Typical representation of the system on SGAM

• Identification of interfaces on component, communication and information layer


First Set of Standards

List of standards

• Description of ‘available’ and ‘coming’ standards for each specific system

• Available standards: published by July 2012

• Coming standards: currently in progress in European standards organisations

• Average of 10-20 standards per system


Layer S tan dard Comments

Informat ion EN 61970-1

EN 61970-2

EN 61970-301

EN 61970-401

EN 61970-453

EN 61970-501

Energy ma nagem ent system Applicati on

Program Interface

Comm unication IEC/TR 62325 Framework market com muni cat ion

Comm unication EN 60870-5-101

EN 60870-5-104

EN 60870-6

Telecontrol protocols

Informat ion IEC/EN 61850 (al l parts) See substat ion autom at ion system in 8.3.1

Informat ion IEC 62351 Security - all pa rts

Informat ion (guidel ines) IEC 62357 Reference architecture power system

inform ation exchange

Informat ion IEC 62361 Harm oniza tion of qu ality codes

Standards per system

Example list of standards


First Set of Standards – cont’d

Focus on existing industry arrangements

• 24 systems described in detail with functions, use cases, architectures and relevant standards

• More than 80 tables and figures

Selection guide for all market players

• Guidance for use of standards in implementation

plus

• 5 horizontal issues, including security etc.

• Preview of coming standards

• Work programme for new standards


Work programme for 17 topics


Overview of SG-CG output in 2012

Overall Process

• Framework document (SGCG/M490/A_Framework for Smart Grid Standardization)

Set of Standards – Selection Guide

• First Set of Standards (SGCG/M490/B_Smart Grid Set of Standards)

Conceptual Model, SGAM, Functional & Comm. Arch.

• Reference Architecture (SGCG/M490/C_Smart Grid Reference Architecture)

Use Case Management e.g. Flexibility

• Use Case Management (SGCG/M490/E_Smart Grid Use Cases Management Process)

Information Security, Privacy, Toolbox

• SGIS (SGCG/M490/D_Smart Grid Information Security)

Weblink

• http://www.cencenelec.eu/STANDARDS/HOTTOPICS/SMARTGRIDS/Pages/default.aspx


http://www.cencenelec.eu/STANDARDS/HOTTOPICS/SMARTGRIDS/Pages/default.aspx


Current work

Mandate iteration

• Extension for 2013-14

Four workstreams

• Smart Grid Consistent Set of Standards

– updating FSS, gaps

• New Applications & Methodology

– refinement of SGAM, use cases

• Interoperability

– interoperability testing methodology, conformance testing map

• Information Security (SGIS)

– smart grid security standards, information security, privacy, updating of smart grid toolbox



Mandate Scope

Updated working group structure

Smart Grid

Coordination

Group (former JWG)

EC

Reference

Group

New Appl.

and

Methodology

Information

Security

Consistent

Set of

Standards

Inter-

operability

Steering

Committee

Further

Tasks

• Report 2.0

• Liaisons

• Promotion

New joint WGs

Existing WGs

• NIST

• JISC

• China

• Etc.

TC Level

SG-CG Level

EC Level

New joint WGs

Existing WGs

New joint WGs

Existing WGs

New joint WGs

Existing WGs

M/441

M/468

coordination

Structure of SG-CG: 2013-14


Conclusions

Achievements in 2011-12

• Consensus approach

• Deliverables on time

• International acknowledgement

• Systematic standardisation process in place

• Overview of available and coming standards

• Selection guide available - easy entry for all stakeholders

• Current industry applications are supported by standards

• Work programme provides timetable for new standards

• Future requirements can be easily included in systematic framework



d

THANK YOU FOR YOUR ATTENTION


www.cen.eu www.cenelec.eu

www.etsi.org

http://www.cen.eu/

http://www.cenelec.eu/

http://www.etsi.org/

Energy

Networks

Association

Insert presentation

title here Name Position Date

Energy

Networks

Association Smart Grid Standards

‘An ENA Perspective’

David Spillett Engineering Policy & Standards Manager 16 April 2013

The Voice of the Networks

51 Energy Networks Association

ENA

Global Standards – Smart Grids

First Set of Standards - Work Programme

European DSO Response

Main areas of progress on smart grid standards in

Europe

Implications for smart grid development in GB

EU Network Codes

Next steps

Agenda

Energy

Networks

Association

Insert presentation

title here Name Position Date

ENA

5


Energy Networks Association (ENA)

is the voice of the networks,

representing the ‘wires and pipes’

transmission and distribution

network operators for gas and

electricity in the UK and Ireland

ENA aim to influence…

•Regulation and the wider representation in UK, Ireland and the rest of Europe.

•Cost-efficient engineering services and standards.

•Safety, health and environment across the gas and electricity industries.


Key International Organisations – IEC ISO CEN CENELEC

National Organisations – ANSI, NIST, JIST, CNIS, KATS, ANSI, BSI

IEC & CENELEC 1996 Dresden Agreement

BSI - L/13 Committee - Smart Grid Policy

ENA – member of 64 BSI Electro-technical committees

ESO Smart Grid Co-ordination Group

Global Standards – Smart Grids


First Set of Standards Work Programme

8 Domains or Functions

24 types of Smart Grid systems

>400 standards referenced

(Available/Coming)

Average of 10-20 standards per system

50 Technical Committees (IEC/CENELEC)

Work Programme

http://www.cen.eu/cen/Sectors/Sectors/Utili

tiesAndEnergy/SmartGrids/Pages/default.a

spx


Timetable


Dashboard Example – Gaps 11-12

Gap ID

Gap nb 11-12 SDO leader1 Update date 27-Feb-12

Gap ref Gen-4 and Gen 5 TF leader

CENELEC TC8X WG3

CENELEC TC8X WG5

IEC TC95

IEC TC38

IEC TC64

IEC TC82

IEC TC57

IEC TC88

IEC TC13

Standard status

Standard title SDO

Technical

body Standard reference

Target std

type

Expected

work

Impact on

Standard

starting

status

(mandate

start)

requirements for connection of micro-generators to

the LV gridCENELEC TC8X WG3 EN 50438 Ed 2 EN Boost Revision

DC with

received

requirements for connection of DER to the LV grid CENELEC TC8X WG3 TS 50549-1 TS Boost RevisionCD with

received

requirements for connection of DER to the MV grid CENELEC TC8X WG3 TS 50549-2 TS Boost RevisionCD with

received

Smart Grid User Interface, Part 2: Domain Side

Energy Source Interconnection with the GridIEC TC8 IS Launch Creation not started

Low-voltage generating sets and other

requirements if neededCENELEC TC64 HD 60364-5-551 and another parts if neededHD Boost Revision not started

IEC 61850 object models for photovoltaic, storage,

and other DER invertersIEC TC57 IEC 61850-90-7 TR Launch Creation initiated

Key information from main EU smart grid projects

for standardization purposesCENELEC TC8X WG5 TR Launch Creation TR

Use case collection ( process under resp of

SGCG/SG sustainable processes)CENELEC TC8X WG5 contribution to use case collection

Action plan and follow-up

Main steps Steps content who (Body) who (people) Status When

1

To provide with key information from EU smart grid

projects TC 8X/WG5 John Sinclair Dec-11

2

To provide with one or two Use cases (e.g. extract

one related to VPPs functioning) TC8X WG5 Mar-12

TR in

circulation

3

Define generic material (functions, glossary,

actors, …)

TC8XWG5

and (aligned with SGCG-SP team work)

4

To specify requirements for micro-generators

connected to the LV grid EN 50438 TC8X WG3 Dec-12 Sep-12

To specify requirements for connection of DER to

the LV grid TS 50549-1 TC8X WG3 Sep-11 Jun-12

prTS voted

negatively 15-Feb

To specify requirements for connection of DER to

the MV grid TS 50549-2 TC8X WG3 Sep-11 Jun-12

prTS voted

negatively

7

Liaison with IEC TC8 for connection to the (smart)

grid TC8X S Botton continous work 15-Feb

8 To adapt installation rules TC64 E. Tison ref to Gap 25 - Ind 5 15-Feb

Open investigation on product standards to

specify the protective functions which may be

needed, when considering DER connection to the TC95 Serge Volut Nov-11 Nov-11 Open

10

Establish a liaison between TC57 and TC95 for

data modelling of the communicating interface,

related the connection of DER-related function TC95 Serge Volut Mar-12

IEC TC95 is going to propose to set a

Chairman Advisory Group. The purpose

of this CAG is to consider the smart grid

Serge VOLUT

draft TR

use and update IEC TC8 Template

Waiting for comments on TR

step status update

Information

Gap title

Gap details

Involved

bodies

Current

targetted

Involved

standards

Harmonize/adapt electrical connection to the grid

and installation rules

Provide with use cases addressing the operation

of the grid in presence of high ratio of DER.

Provide with requirements and product standards

for specific protective devices, if nece

Standard for electrical connection and installation

rules to ensure energy availability and security, in

presence of high ratio of DER and allowing

connected generators to participate to new ways

of operating grid (e.g. associated in VPPs or micro

grids)

Initial targetted date

62786-2 work (Smart Grid User Interface -

demand side enegery source

cooperation with Entsoe re-established -

MoU between ENTSOE and Cenelec

under discussion - 1st raw draft

(principles) circulating

idem

liaison with TC82 probably needed -

proposal is made - a TC82 NP is under

preparation on specifying interconnection

of PV inverters with the Grid

In progress but not yet established


• http://www.eurelectric.org/publications/?page=2

European DSO Response

Smart Grid Functionality & Service

List of Standards

Smart Network Management

•Electronic compatibility & power quality •Advanced network operation and control (eg faster fault identification and self healing capabilities advanced network automation volt var/watt control. •Smart metering and power line communication

IEC 61000 series IEC 61968/61970/62325 (CIM) IEC 61850 series, IEC 60870 series IEC 62689 series IEC 62351 series IEC 60255 series

Smart Integration of DG & e-mobility

•Integration of DG •Integration of Evs •Integration of new usages such as storage heating & cooling

EN 50438 IEC 61850 series TS 50549-1 & 2 ISO/IEC 15118 IEC 62786 IEC 61851

Smart Markets and Active Customers

•Enable DSO to act as market facilitator and grid optimiser •Develop demand response and demand side management programmes •Aggregate distributed energy resources and e mobility •Baance the power grid

IEC 61968/61970/62325 (CIM) IEC 62056 (DLM/COSEM) IEC 61850 series SEP 2.0, Open ADR, ...

• SG Standards will not be

rolled out in a single

swoop

•A multitude of standards

are required must act

rapidly

•Timely availability of

standards

•DSOs must act rapidly to

ensure they are heard

•Ongoing discussions with

EU Task Force

•Cognisance of ENTSO-e

Network codes


Smart Meters

ICT

DG Connections

EVs

Cyber Security

R&D & Innovation - >200 SG projects in Europe

Main areas of progress on smart grid

standards in Europe


Perceived lack of engagement by GB

Technical Committee stakeholder representation.

International and European

Certain Member states driving the European SG agenda

Need to avoid gold plated standards

Standards not fit for GB – IEC/EN

Changing GB policy to suit Europe policy ( why fix what

is not broken)

Need more of GB practice into Europe/International

standards (LCNF projects)

Implications for smart grid

development in GB


EU Network Codes

RFG

DCC

https://www.entsoe.eu/


Insufficient resources (experts)

– Smart Grid Consistent Set of Standards

– New Applications & Methodology

– Interoperability

– Information Security (SGIS)

Avoid the potential for “gold plated” Standards

BSI L/13 – Policy committee? - JESG for Standards

Ofgem Low Carbon Networks Fund – Use out put to develop standards

DECC/Ofgem SGF – Actively engaged in SG Standards

Next steps


Thank you

‘An ENA Perspective’

Setting standards for the future

Dr Howard Porter, Chief Executive, BEAMA (Chair)

David Johnson, Steering Group Member,

CEN/CENELEC and ETSI – Smart Grid Coordination

David Spillett, Engineering Policy & Standards

Manager, Energy Networks Association

Richard Schomberg, VP Smart Energy Standards,

EDF Group and Chairman of IEC’s Strategic Group

on Smart Grid

Lunch and Networking Break

The Future: Regulation driving innovation, consumer benefits and commercial opportunities

Lawrence Slade, Chief Operating Officer, Energy UK

(Chair)

Dora Guzeleva, Head of Distribution Policy, Ofgem Mark Thompson, Project Delivery Manager,

Energy Innovation Centre Professor Harriet Bulkeley, Durham Energy Institute Dr Howard Porter, Chief Executive, BEAMA

Regulation driving innovation and consumer benefits

Dora Guzeleva, Head of Networks Policy

Ofgem

68

Smart Grid Forum

• Established by DECC & Ofgem in May 2011

• Brings together DNOs, NG, suppliers, technology providers, consumer groups, academics, Government and Regulator

• 2nd year work programme consisted of 5 work streams

Work stream Details

WS1 Developed DECC low carbon scenarios

WS2 - closed High level Smart Grids evaluation framework

WS3 DNOs model building on evaluation framework

WS4 Identifying closing doors

WS5 Ways of working – learning dissemination

WS6 Regulatory & commercial issues

Year 3 work programme and potential new work steams to be considered by the forum at its next meeting on 25 April

69

Smart Grids Forum – Work Stream 6 – last year

• We have examined regulatory and commercial barriers to deploying smart grids incl. DSR

Conclusions on barriers to DSR for DNOs

1. There are relatively few – DNOs already using it!

2. Some technical specifications may need updating – ER P2/6

3. Connection charging rules may need slight amendment

• We have also identified a need to assess barriers and the need for commercial enablers from a broader perspective

70

Work stream 6 – further programme

Develop a number of options for the development of and consumer engagement with Smart Grids Stage 1

A B C D

Roles and relationships for relevant parties under different options & trigger points for these roles

Stage 2

Commercial /regulatory arrangements for each option to effectively discharge roles & identify barriers to and enablers for these arrangements

Stage 3

Output

Defined roles and relationships with supporting commercial/regulatory arrangements across a range of options & trigger points

71

How this fits with wider DSR work

Smart Grids Forum (WS6)

EU policy / codes

Use of smart metering data

Smarter markets DSR

project

Structure of charges:

socialisation & price signals

Evaluating the benefits of smart

grids (WS3 model)

Utilising learning from

LCNF

72

Stages

Stage 1 Production for the development of and consumer engagement with Smart Grids

Stage 2

Roles and relationships required between industry parties and consumers

Identification of trigger points for each option

Stage 3 Commercial and regulatory arrangements for each option

Stage 4 Commercial and regulatory barriers and enablers for each option

Stage 5 Conclusion

Project will be broken down into distinct stages which will mostly run in series to each other. In most cases, learning from one stage will feed into the next stage which will build upon it

(Summer) 2013

(Winter) 2013

(Spring) 2014

(Autumn) 2014

(Winter) 2014

73

Areas of work for this year

Assessment of Options Including impact of current policy reforms on development of market options

Learning from Smart Grids LCN Fund trials Research and international experience on smart grids including DSR

Roles and relationships of parties in the value chain for each option Trigger points to move to certain roles and relationships

Summary Report Consultation

Stage 1 Stage 2

Generation of Options

74

Consumer Engagement - Examples of LCNF Trials

Customer Led

Network Revolution

DUoS price signals, a number of innovative time of use, restricted

hours and direct control tariffs, provided through suppliers, as

well as industrial and commercial DSR

Low Carbon London Time of use DUoS tariffs with domestic customers and demand

response trials with industrial and commercial customers

BRISTOL A variable tariff to encourage electricity use at times of high PV

generation

Capacity to

Customers

Demand response contracts which will reduce the consumption

following system faults as well as new connections customers

offered managed contracts for a reduced connection charge

FALCON Commercial agreements with industrial and commercial

customers who have the ability to control load in short periods of

time

New Thames Valley

Vision

Automated demand response in commercial premises

Innovation Squared Automated control of electric vehicle charging

75

Two Examples of Projects

Customer-led Network Revolution

(Northern Powergrid)

Low Carbon London (UKPN)

Innovation to facilitate low carbon technologies into urban and suburban networks. Leverages London’s low carbon initiatives.

Trialling of smart meters and customer-side interactions with new network technologies (such as storage).

LESSONS LEARNED SO FAR ARE SHARED ACROSS THE INDUSTRY

Learning emerging – 2013 key year for 1st year projects trials

Learning Outcomes Customer led network revolution

What are the current & emerging demands on the network

How flexible are customers

What are the optimum solutions to resolve network constraints

What are the most effective means to deliver these solutions

Low Carbon London

What smart metering data DNOs require

How do customers respond to price signals

What strategies are required to deal with connection of HP & EV

How do you combine commercial & technical arrangements for network management

DSR in the Low Carbon Networks Fund

Engaging Consumers with Smart Grids

Initial Findings from the Customer-Led Network Revolution project

Harriet Bulkeley

Durham University

A quest for the holy grail?

• Realising consumer benefit is recognised as central to making the case for smart grids

• The engagement of consumers is also recognised as critical to their successful implementation

• Yet there is a persistent sense that consumers lack the understanding to participate in the smart grid

• And that we know little about what shapes consumer engagement with the use and provision of energy

Understanding energy use

As easy as ABC … … or need for a new language?

“For the most part, social change is thought to depend upon values and attitudes (the A), which are believed to drive the kinds of behaviour (the B) that individuals choose (the C) to adopt” Shove 2010: 1274

• Values and attitudes are not held by individuals but shaped by social conditions/context

• Technologies, artefacts and material conditions shape both what we do and how/why we choose to do it

• Agency – the ability to act – is not held by individuals, but socially and materially structured (e.g. school runs, working days, reheating food)

Understanding energy use

Consumer engagement with energy is not about Attitudes, Behaviour and Choice

Instead the challenge is to understand why/how different practices are adopted and why/how they change

Social Science Methodology

• Survey of participants in the CLNR Trial

▫ Approximately 600 domestic customers

▫ Approximately 150 SME customers

• In-depth interviews and site visits

▫ Approximately 150 domestic interviews (including some repeats as trial progresses)

▫ Approximately 50 SME interviews

LO1 Initial Findings: Understanding

current consumption and generation

• Domestic transitions: household change, compaction and multiple living arrangements may shape how we can understand ‘average’ household consumption

• Home economies: we find active energy management

in many households, often based on ‘know how’ rather than formal knowledge and use of multiple resources

• Shadows of technologies past: people use new

technologies with a memory of their old systems, in turn shaping how effective and efficient their energy use is

Managing the home energy economy

Cooking Chores

“I might do my frozen veg for 4 or 5 mins (in the micro) but that’s me lot really. I think I use more gas than electric really, because when I do my cooking and froze it I'll heat it up on the hob. I take it out in the morning, leave it out to thaw, then heat it up in the hob. Very, very rarely use the microwave. It’s using electricity, it’s cheaper to leave it out on the kitchen top. I mean I do use it of I've forgotten to leave it out."

"Well, I usually wait until its quite a bit then I'll wash, There's a lot of things that can be dried in the drier but not everything like jeans and some t-shirts with pictures on, I don’t want to spoil'em. I dry my towels in there because when you hang them out they go rock hard but that’s something that does take a lot I think, the drier.” “"With this good weather I've had everything washed, jackets and trousers. These last few days it’s been washing mad, so suddenly the good weather has made me use the washer - but not the drier."

LO2 Initial Findings: understanding

customer flexibility • Rhythms and routines: energy load curve is driven by

habitual routines and daily rhythms • Thresholds: energy peaks are related to coming into/leaving

households – e.g. showers, putting the kettle on, meals

• Flexibility is evident: changes made to when/where energy using practices take place, to the way in which the services provided by energy are achieved (e.g. fuel switching, using other resources), and through the curtailment of practices

• Engagement is central: issues of trust, of contributing to a collective good (‘the grid’), and of personal benefits (not always financial) are important

Examining (in)flexibility

Cooking – less flexible Chores – more flexible

“We're quite traditional, lunch is at 12, tea is 5. … Its based around work. There will be times when you get in late but its not that often” "I just thought if I can save the environment at my age then yeah I'll do my bit. It has learnt 'us a lesson in one respect in that I used to just fill the kettle up and plonk it on. Now when I see that little thing go orange I just think no … I just put enough in for a cup. Because you can be very neglectful with things you know."

“Now that we got that (tariff) my wife’s been putting a wash in after 8 o clock at night, and before she goes to work she’ll hang it out.”

“Things like laundry, putting the dishwasher on. We used [to] put it on after tea, now it’ll get left ‘til the next morning, or after 8.”

Enabling flexibility: early findings

• Dual fuel households have more Load Flexibility due to their ability to fuel switch away from electricity when required.

• Where there are households for whom 9-5 working is not the norm, there is the possibility of greater Practice Flexibility

• Active use of timers on white goods enables Practice Flexibility where households are aware of this functionality.

• Engagement with the IHD appears to encourage and provide affirmative feedback on TOU related flexibility.

Fostering engagement: early findings

• Experience of the ‘workings’ of the grid whether through previous interruptions / strikes or through proximity to visible infrastructure is associated with greater openness to flexibility and engagement.

• Effective communication of the challenges facing the grid from a trusted individual has a positive effect on flexibility and may create the opportunity for a more interactive relationship between customers and bodies representing or liaising with ‘the grid’.

• The absence of sales messages builds trust with customers which may then create possibilities for engagement.

Summary

• We need a new vocabulary – the language of ‘consumers’ may mean we are not looking in the right places for solutions

• We find that there is significant variation between different practices in terms of drivers and the factors that shape the extent to which they are (in)flexible

• Our research suggests that many households have a great deal of practical ‘know how’ about their energy use – this could be a resource for smart grid development

• Engaging households with smart grids will require a different set of relationships between the providers and users of energy – the supplier/consumer relationship may not be adequate for this task

For further information:

[email protected]

http://www.networkrevolution.co.uk

mailto:[email protected]

http://www.networkrevolution.co.uk/



A Smart Grid for the end consumer Innovation and market opportunities

Dr Howard Porter, BEAMA CEO

Seizing the smart grid opportunity, British Academy, 16th April

A strong investment case for Smart Grids

UK manufacturing and opportunities for oversees markets

We need to fulfil the innovation and export potential of the industry to develop smart grid solutions

The UK have an opportunity to take a lead in the international market for Smart Grids

Customer engagement will be key

The Commercial Opportunity

27 million electricity meters and 23 million gas meters in UK homes by 2019

Enabling Smart Grid applications - the first step in developing a domestic market

What will Smart Metering provide?

In home displays

Data

Automated and accurate billing

Consumers to gain a better understanding of their consumption

Smart Metering - Catalyst for customers to take action

Customers will start to demand services rather than receive them

Designing a smart grid with the customer in mind - what are the benefits?

A big educational challenge – how do we engage and educate the customer?

Smart Meter Rollout

Data Communications

Companies (DCC)

GAS METER ELEC METER

DCC WAN

IHD

Space

heating

Security

Hot

water

Healthcare

Communication

s Hub

Smart Meter HAN

Smart Home HAN MANDATED

NON REGULATED

REGULATED

NOT MANDATED

EV

charging PV/other

Third party service/Green deal

providers

White

applianc

es Heating/

lighting

controls

Trusted Gateway

Heat

pumps

Installation of low carbon

technologies requiring

notification to networks

CAD

Heat

Meter

Gas

Meter

Electricity

Meter

Water

Meter

Hub

IHD (In

House

Display)

DCC (Data & Communication Company)

HAN Home area

network

WAN

Regulated energy

use: eg EV point?

CAD (Customer

Access

Device)

Energy

Suppliers

Internet, Satellite GSM etc

PV

Heat

pump

heating lighting media comms security Monitor & control

← Load

← Peak load

← Power factor

← frequency

SMART Meter roll-out

© Legrand Electric Limited 2012

Interoperability of smart home technologies

CAD – critical to engaging the customer and enabling automation

A big educational challenge – for the customer and the installer

DSR trials in UK

Conclusions

The Future: Regulation driving innovation, consumer benefits and commercial opportunities

Lawrence Slade, Chief Operating Officer, Energy UK

(Chair)

Dora Guzeleva, Head of Distribution Policy, Ofgem Mark Thompson, Project Delivery Manager,

Energy Innovation Centre Professor Harriet Bulkeley, Durham Energy Institute Dr Howard Porter, Chief Executive, BEAMA

Coffee and Networking Break

The Policy Challenge (open panel discussion)

Lord O’Neill, Chairman, SmartGrid GB (Chair)

Ben Wilson, CFO and Director of Strategy and

Regulation, UK Power Networks Laurence Carpanini, Director of Smart Metering and

Smart Grids, IBM United Kingdom Limited Richard Dick, Chairman, Lucy Switchgear (EMS) Ltd Lawrence Slade, Chief Operating Officer, Energy UK

Closing Remarks

Lawrence Slade, Chief Operating Officer,

Energy UK

Seizing the smart grid opportunity: An industry wide view...

Documents

Transcript of Seizing the smart grid opportunity: An industry wide view...