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The concept of Energy Grid Services

How DSO’s can contribute to

customers empowerment European Utility Week 2014 Amsterdam

peter.hermans@stedin.net

(food for thought)

The Energy Transition: what’s potentially in for the customer ?

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•  Good service, competitive prices

•  Empowered and engaged

•  In control: independent or fully serviced

•  Enhanced offerings, tailored to his needs, receiving value

•  Transparancy (know what you get)

•  Protected (privacy, vulnerability)

•  Feel good awareness by contributing to climate objectives

The electricity system will change fundamentally… Reflection…

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•  The end of the “copper plate”: traditional grid expansion becomes a (too) costly solution with high integration rates of DER & EV, meaning:

•  Interaction between electricity market and regulated DSO/TSO (grid capacity)

•  Increasing need for flexibility on demand side to cope with reducing controllability of supply due to DER (PV Wind) integration

•  Customer: from “passive load consuming” to an “active actor” in the electricity system/market (prosumer)

•  Digitalization of the energy business (data & ICT will make the difference)

Demand Supply Electricity Market

Grid Capacity

Demand

Supply (DSO/TSO)

Significant impact for DSO’s… Outside in: defining the interaction…

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•  Strongly shifting focus: o  From asset management

to customer & market interaction o  Facilitating the market

•  Digitalization of customer & market interaction requiring to define its services portfolio

A services portfolio which: •  Enables existing & new

market actors, while maintaining level playing field

•  Fuels new bussiness models

•  Enables consumer integration in the system ,while protecting (data) privacy

Prosumer Market Parties

DSO/ TSO’s

Smart markets

Smart grids (regulated)

Services offered & used

Digital interaction

Portfolio of services What is the services portfolio of a DSO ?

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1.   Grid access services To    customers  (delivering  grid  connec2ons  to  the  grid)    

2.  Market facilitation services: To  market  par2es  (enabling  supplier  switch,    delivering  metering  data,  alloca2on  &  reconcilia2on  services)  

3.  System operator services To  market  par2es  (balancing  services)  

4.  Energy grid services To  customers  via  market  par2es    (WS  product,  decoupling  grid  usage  from  infrastructure)

Grid Infrastructure

Energy Grid Services

Energy Services (from markets)

Customers

Regulated DSO/TSO

Commercial Markets

Layered approach

To add value, knowing the (customer) context is important

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Telecoms: What is the value of one byte ? •  In a rented video •  In a pacemaker, sending a

message to the hospital

•  Multiple end user services (eg VOIP, video, whatts-ap, services etc.)

•  Supporting wholesale transport services (eg DSL, FttH, VPN )

Energy: What is the value of an electron ? •  Charging a car •  Powering a TV when watching the final

of world football championship •  Powering a burglar alarm system

•  Multiple energy services, (supply, D/R, esco services, etc.) from markets parties

•  Supporting wholesale energy grid services (from DSO’s; to be defined)

Defining Energy Grid Services from a customer perspective

(learnings from the business transformation in the telecom sector)

3 The customer context as starting point

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End customer behavior

Shiftable generation

Physical Grid

End customer behavior is driven by:

•  Customers life style

•  Customers own energy capabilities

•  Used market services This behavior is reflected in his grid usage

Energy Services from Market Parties

Market Parties offerings, today grid status unaware...

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End customer behavior

Shiftable generation

Energy Service xx yy zz

Physical Grid

Market parties offerings: •  Tailored to

customers needs

•  Energy supply

•  Energy handling (flexibility, D/R)

•  Empowering

customers (acces to markets)

•  New business models, New market actors (eg. aggregators)

•  Grid status unaware

? ?

Energy Grid Services closing the (information) loop

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•  Defining the market- grid interaction via well defined Energy Grid Services

•  Feeding into market

propositions, focussed on end-customers needs

•  Delivering data / energy grid service to market parties, (suppliers, aggregators)

•  DSO’s safeguarding level playing field

•  Thereby fueling market development & market growth

Energy Services from Market Parties

End customer behavior

Basic Grid Service

DG Grid

Service

Shiftable Load Grid

service

Shiftable DG

Grid service

service definition, tariffing

service definition, tariffing

service definition, tariffing

service definition, tariffing

Energy Grid Service related interaction & data

Energy Service xx yy zz

Physical Grid

example

3 Energy Grid Services, supporting end-customers

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1.  Basic Energy Grid Service: Supporting basic consumption, incl D/R

2. Feed-in Energy Grid

Service: Accomodating DER integration

3. EV charging Energy Grid

Service: Enabling smart EV charging

•  Different Service

Specifications

•  Services separately managed & metered

(metering point-> energy grid services acces point)

Energy Services from Market Parties

End customer behavior

Basic Grid Service

DG Grid

Service

Shiftable Load Grid

service

Shiftable DG

Grid service

service definition, tariffing

service definition, tariffing

service definition, tariffing

service definition, tariffing

Energy Grid Service related interaction & data

Energy Service xx yy zz

Physical Grid

example

DER integration

EV charging

Existing basic distribution, incl D/R facilitation

example

Benefits  for  all  stakeholders  

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For  Customers:  •  More    enhanced  products  •  More  choices:  Simultaneous  offerings  from  different  market  

par:es  (suppliers/  aggregators)  on  one  connec:on  •  More  control:  enabling  independent  customer  communi:es  •  Clear  Energy  service  specifica:ons:  “you  know  what  you  get”  •  Protec:ng  vulnerable  customers  (balancing  societal/  individual  

costs)  •  Contribu:ng  to    customer  data  privacy  protec:on  

For  Market  parAes  •  New  business  models  &  product  proposi:ons  ,  based  

 energy  grid  services  •  Enlarged  addressable  market  (more  par:es  ac:ve  on  one  

customer)  •  Enabling  aggregators  next  to  suppliers  in  a  transparant  way  

(solving  the  issue  on  measurement  /  verifica:on    i.r.t.  BRPs)  •  A  transparant  level  playing  field  through  well  defined  market  

facilita:ng  services  

For  policymakers/regulators:  •  Addi:onal  instrument  for  EU  market  

development:  o  Possibility  for  applying  different  

regula:on  for  different  energy  grid  services  (  eg  tariffs,  service  obliga:on)  

o  Implemen:ng  the  cost  causality  principle  via  grid  tariffs,&  investments  

For  DSO’s:  •  More  precise  &  op:mal  grid  capacity  planning  •  Improved  &    “services  focussed“  grid  

opera:ons  •  Suppor:ng  an  evolu:onary  approach    (saving  

costs)  to  integra:on  of  DER  &  PV,  by  having  the  possibility  to  apply  different  tariff  schemes  for  different  energy  grid  services  

 

Implementation: The smart meter roadmap… an opportunity for meter & ICT vendors

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Today (meter centric approach) •  Basic Energy Grid Service & Feed-in Energy

Grid Service: seperately metered, not yet managed

•  EV charging Grid Service: Partial seperately metered & managed (via seperate fysical connection point)

•  Standard meter for all residential customers •  à multiple meters à space problem Future (ICT platform centric approach) •  Óne meter with multiple energy grid services

access points (metering points) •  Supporting near real time communication •  Interactive with customer energy gateway/

appliances/ DER •  Enhanced meter: only for customers with DER/

EV capabilities and/or participating in DSM, D/R programmes

apps

ICT platform

Smart Meter

2.0

Basic

Feed-in

EV charging

Data Communication

Fysical grid

Grid Operations (DMS)

Metering Operations (incl. Alloc. & Recon.)

D/R facilitation

DSO

Data Communication

Market Parties Prosumer Energy Gateway/ Appliances DER

Multiple meters (basic, PV, EV, Heat pump) Austrian example

Conclusions

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In this way DSO’s can contribute to the empowerment & engagement of customers, participating in the future energy system

1.  A well defined interaction with customers & market parties (outside in approach) is essential for a

well functioning energy system of the future in which the customer plays an active role. This requires the definition of the DSO services portfolio, including energy grid services.

2.  The energy grid services concept will enable new business models, new offerings, new actors and increases the adressable market. This will lead to more dynamic competition in the EU market.

3.  When adopted, the energy grid services concept can act as a valuable instrument for future regulation on grid tariffs, market-grid interaction and market development.

4.  Current smart meters provide already some capabilities for implementing energy grid services, and the energy grid services concept provides clear input for meter/ICT vendors future roadmaps .

DSO’s

Market parties (suppliers, aggregators, esco’s etc)

Regulators

Meter & ICT vendors

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http://ec.europa.eu/energy/gas_electricity/smartgrids/doc/xpert_group3_energy_grid_services.pdf

Download on website EU taskforce smart grids (EG3) “The Concept of Energy Grid Services”

Thank you…