CRU Presentation Committee On Climate Action 19 December 2018 www.cru.ie
Mission Protecting the public interest in Water, Energy and Energy Safety Vision Energy supplied safely A sustainable, reliable and efficient future for energy and water Empowered and protected customers paying reasonable prices A secure, low carbon future www.cru.ie 1
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Who the CRU Regulates Safety Networks Retail Generation www.cru.ie 3
A Low Carbon Future – How CRU Will Contribute Connection • Enduring connection policy • ECP1 – facilitating 2020 targets • ECP2 – facilitating RESS • Renewable gas – connections and safety www.cru.ie 4
A Low Carbon Future – How CRU Will Contribute Networks • 5 year price controls for gas and electricity networks • Interconnectors - integration of renewables • Gas and Electricity integration into transport and heating • Water – support resilience, conservation and adaptation www.cru.ie 5
A Low Carbon Future – How CRU Will Contribute Wholesale Markets • SEM supports flexible units & roll-out of renewable tech • SEM supports flexible demand and storage • SEM ensures the most efficient use of interconnectors • DS3 programme accommodate higher levels of renewables • CEP requires further changes to support low- carbon future www.cru.ie 6
A Low Carbon Future – How CRU Will Contribute Retail Markets • Protect and empower customers • Enable customers to benefit from competition & new tech • Support active engagement in energy markets (prosumer) • Smart Meters facilitate renewables • Smart Meters support microgeneration • Encourage energy efficiency through price signals www.cru.ie 7
Smart Meter Upgrade Project Background & Overview The smart meter upgrade is a project of strategic national importance for • More choice and information to consumers Empoweri • Eliminates need for estimated readings Ireland’s energy future ng • New products & services e.g. time-of-use Established by the Commission for Regulation of Utilities (CRU) and the tariffs will allow customers shift consumption Customers to times of the day when electricity is DCCAE cheaper Multi-stakeholder project for the deployment of upgraded meters and the • Rich information to consumers Energy delivery of smart services to electricity and gas customers • Price signals to encourage energy efficiency Efficiency • Tamper alerts to detect theft Important element of DCCAE’s ‘Transitioning Ireland to a Low Carbon Energy Future’ Smart Metering Supportin Central role to the European Commission’s Clean Energy for All package of • Facilitate development of more renewable power g in the system legislation which ensures energy consumers are entitled to a smart meter • Supporting microgeneration and the development Renewabl of the ‘prosumer’ and a dynamic price contract es • Essential first step to development of smart grid Smart • Managing effective demand Grids • Improving security of supply www.cru.ie 8
Smart Meter Upgrade Costs & Benefits: Avoided costs of manual meter -9.93% reduction in ‘peak time’ readings consumption as a result of time- Avoided costs of site visits for meter works of-use Avoided costs of network End of estimated bills reinforcements Theft reduction Reduction in call volumes due to Reduced generation capacity estimated bill queries requirements Reduction in switching related costs 1.3% reduction in the System Reduction in costs related to Marginal Price due to peak customer debt shifting of consumption www.cru.ie 9
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Thank You www.cru.ie 11
Appendix www.cru.ie 12
Major Projects to be Delivered: 2019-2021 • Deliver five year price controls for both the gas and electricity networks • Progress and make decisions in relation to the Greenlink and Celtic interconnector applications • Oversee the start of the roll out of Smart Meters including updating retail market and customer protection policies • SEM – implementation of remaining aspects of the third package and the CEP • Develop revised arrangements for the calculation of the PSO Levy • Ensure preparedness and resilience with a focus on SoS, Brexit and the CEP www.cru.ie 13
A Low Carbon Future – How CRU Will Contribute • Ensure market and utility network policies support a low carbon future while supporting competitiveness and security of supply • Introduce gas from renewable sources to the network and grow the level of fuel switching from high carbon fuels to gas, in both heating and transport • An enduring electricity connection policy that supports climate targets • Review network tariff structures to ensure they are suitable for a decentralised generation world with smart metering, smart grids and distributed generation • Critical public-interest infrastructure, including electricity interconnection, is supported, in line with the NDP and the Climate Change Mitigation Plan www.cru.ie 14
A Low Carbon Future – The Role of Wholesale Markets • Implementing revised arrangements brings the SEM in line with EU Target Model Balancing market sends strong signals for flexible units (incl. batteries & demand response), ensures the most efficient use of electricity & supports further roll-out of renewable technologies Implementation of market coupling ensures the most efficient use of interconnectors • DS3 programme increases system ability to accommodate higher levels of renewables • CRU will provide strategic advice and support to DCCAE regarding the design of the RESS Auctions, sharing experience delivering SEM Capacity Auctions • CEP will require significant changes to the SEM to facilitate a low-carbon future www.cru.ie 15
A Low Carbon Future – The Role of Bio-Gas, CNG and other RNG • Renewable gas (RNG) introduced to the network from 2019 will initially be biogas Biogas is a potentially carbon neutral fuel most commonly produced by anaerobic digestion of organic farm/household waste and sustainable crop/grass production • Guarantees of origin will allow industry (heat & power) and transport companies to prove green origins, thus providing support for biogas developments • GNI target: 20% of gas demand levels to be met with RNG by 2030. CRU approved €13M innovation allowances to supports GNI’s Causeway Project: 1 biogas injection facility (2019) and 14 CNG stations • Other RNG: RES-E could be utilised to create ‘green’ hydrogen. Can be blended with natural gas, used itself or combined with CO 2 to create synthetic methane www.cru.ie 16
A Low Carbon Future – The Role of Interconnection Electricity Interconnectors can bring potential benefits, including: • Reduce the curtailment of renewable electricity • Facilitate further integration of renewable electricity generation • Reduce the need for subsidies to support renewable electricity • Reduce GHG emissions due to lower curtailment (more efficient use of existing renewable electricity plants) and also replacement of thermal generation www.cru.ie 17
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