Pablo A. Simn ENDESA, EURELECTRIC DAY 1: SM ART GRIDS TABLE 2: - - PowerPoint PPT Presentation

pablo a sim n endesa eurelectric
SMART_READER_LITE
LIVE PREVIEW

Pablo A. Simn ENDESA, EURELECTRIC DAY 1: SM ART GRIDS TABLE 2: - - PowerPoint PPT Presentation

European cooperation Network on Energy Transition in Electricity Pablo A. Simn ENDESA, EURELECTRIC DAY 1: SM ART GRIDS TABLE 2: REGULATORY CHALLENGES AND BUSINESS OPPORTUNITIES ASSOCIATED WITH THE DIGITIZATION PROCESS, DEM AND SIDE RESPONSE


slide-1
SLIDE 1

European cooperation Network on Energy Transition in Electricity

Pablo A. Simón ENDESA, EURELECTRIC

DAY 1: SM ART GRIDS TABLE 2: REGULATORY CHALLENGES AND BUSINESS OPPORTUNITIES ASSOCIATED WITH THE DIGITIZATION PROCESS, DEM AND SIDE RESPONSE (DSR) AND RES INTEGRATION

INTERNATIONALSUM M ER SCHOOL “SM ART GRIDSAND SM ART CITIES” Barcelona, 6-8 J une 2017

slide-2
SLIDE 2

2

Introduction Old roles vs new roles of DSOs What’s new Conclusion

slide-3
SLIDE 3

3

(2) Energy transition  Legal tools: Directives + regulations  (First) Package (2003/ 54)  Second Package (2009/ 72)  Winter Package (Clean Energy for all Europeans) (3) Framework and (main) key principles:  RES integration  Consumer-centric approach  Competitive market based mechanisms  No discrimination (1) Issues/ targets:  Climate change  Fuel dependency

slide-4
SLIDE 4

4

…in energy transition: (E)volution instead of (re)volution.

(1) Keeping the targets of the activity:

  • High standards of quality
  • Cheapest price (cost effectiveness)

(2) DSOs’ adaptation:

  • Planning and operation distribution network
  • Neutral/ Independent market facilitator: no interferences in the

market

slide-5
SLIDE 5

From vertically integrated undertakings…

slide-6
SLIDE 6

6

(* ) The utility of the future. J .I. Pérez Arriaga

… to democratization of the energy.

slide-7
SLIDE 7

7

Question 2: How will the existing top-down energy distribution electricity infrastructure cope with all the foreseen changes? Question 1: How do the new roles stem from the existing DSO’s structure?

(* ) The Future Role of DSOs. A CEER Conclusions Paper Ref: C15-DSO-16-03 13 July 2015

slide-8
SLIDE 8

8

According to some authors, changes are envisaged in:

  • (1) DSOs’ business environment
  • (2) DSOs’ role
  • (3) DSO’s ownership
  • (4) DSO’s regulatory framework
slide-9
SLIDE 9

9

DERs (Distributed Energy Resources)

  • Flexibility

services/ active costumers (to support network

  • peration) (* )
  • Small scale/ dispersed RES generation
  • Self consumption
  • Transport electrification/ EV & Cold ironing (* )
  • Electric Storage (* )
  • Power to heat
  • Energy efficiency services

Issues:

  • Ownership & management of metering equipment
  • Data handling
  • TSO/ DSO coordination (* )
slide-10
SLIDE 10

10

How do DSOs cope with all of these disruptions?

  • Off-grid installations / grid defection
  • Demand uncertainty
  • Technology / standards
  • Regulatory risks
  • M icrogrids, nanogrids
  • Local energy communities
  • Organized prosumers
  • Real estate developers
  • Residential and industrial facility managers
  • PV producers / retailers / suppliers, aggregators
  • J
  • int ESCOs
  • EV Charging operators
  • Platforms and apps developers

Business model

vs

technical feasibility  Network codes

slide-11
SLIDE 11

11

Implementation (Clean Energy Legislative Package):

  • Prohibition on DSO ownership/ operation of energy storage
  • Prohibition on DSO ownership/ operation of electric vehicles’ charging

infrastructure

  • Network planning and coordination (TSO/ DSO planning and operation

coordination) Further clarification/ debate and some provisions must be explored.

slide-12
SLIDE 12

12

(* ) European Energy Regulators’ White Paper # 3 Facilitating flexibility

Sources of flexibility (top box) include power generation, storage and changes in demand, such as the turning down of consumption upon request.

slide-13
SLIDE 13

13

Flexibility available options :

  • market-based procedures
  • direct contracts
  • connection agreements
  • network tariffs/ rules-based

Only when network reinforcement is proven less efficient M arket standard products would be defined Regulators should ensure that DSOs incentives are not distorted

slide-14
SLIDE 14

14

M arket impact Quality of supply impact

slide-15
SLIDE 15

15

M arket price impact

slide-16
SLIDE 16

16

Voltage regulation Substation Voltage regulation Substation

G C

Self-consumption Sparse generation

  • Flex. demand

Product quality impact

slide-17
SLIDE 17

17

For the time being, DSOs must continue to manage their systems prudently and in the interest of their customers Accordingly, acquisition of any services be done by business-as-usual DSO procurement under NRA scrutiny TRANSPARENCY must be on the root of all the investment decision process 5 STEP PROCESS:

  • 1. DSO identifies local distribution grid need
  • 2. The DSO details the location, technical requirements (specification)
  • 3. Following discussions with the NRA a tender/ procurement process

may be launched.

  • 4. If the market procurement is successful and cost effective,

contractual agreements will be established within the regulatory framework.

  • 5. If the market procurement is not successful, DSOs will have to

address/ assess different alternatives such as network expansion, other flex assets, including developing storage facilities of their own.

slide-18
SLIDE 18

18

Three pillars to achieve of Electro-M obility development

(1) Public support: T

  • reduce economic risks (customer and

companies) for EVs and infrastructure (2) Standardization and interoperability: Common standards for infrastructure and vehicles connection Interoperability/ roaming of energy bills (3) Charging infrastructure Increase the numbers of charging stations Build them in public, private and semi-public places DSOs could (as in some countries already do):

  • Implement charging stations in

those countries where there is no market for mobility providers yet

  • Only for public stations (fast and

slow)

  • Be the owner, the technical
  • perators and providers of

metering services This should be

  • nly temporarily
slide-19
SLIDE 19

19

Smart EV charging: Actors and resource flows

(* ) Driving integration. Regulatory responses to electric vehicle grow. Lab RM I.

slide-20
SLIDE 20

20

Basic framework: (1) There should be a better network planning and coordination between network operators. (2) No submission but agreement in a regulated framework: coordination with each other. (3) M utual exchange of operational and contractual data Technical coordination in safeguarding cross border internal electricity market: transmission

 Network codes impacts:

RfG / DCC / HVDC

slide-21
SLIDE 21

21

M AIN TAKEAWAYS: (1) DSOs are ready to be the market facilitator (2) When the market does not exist, DSOs can contribute to its initial development (3) Clear regulatory framework should be enforce so as to minimize business risk (4) NRAs must have room enough to adapt the rules to every single M S.

slide-22
SLIDE 22

22 Pablo A. Simón pablo.simon@enel.com Regulación ENDESA, S.A.