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
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Introduction Old roles vs new roles of DSOs What’s new Conclusion
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(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
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…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
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From vertically integrated undertakings…
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(* ) The utility of the future. J .I. Pérez Arriaga
… to democratization of the energy.
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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
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According to some authors, changes are envisaged in:
- (1) DSOs’ business environment
- (2) DSOs’ role
- (3) DSO’s ownership
- (4) DSO’s regulatory framework
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DERs (Distributed Energy Resources)
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 (* )
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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
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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.
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(* ) 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.
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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
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M arket impact Quality of supply impact
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M arket price impact
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Voltage regulation Substation Voltage regulation Substation
G C
Self-consumption Sparse generation
Product quality impact
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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.
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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
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Smart EV charging: Actors and resource flows
(* ) Driving integration. Regulatory responses to electric vehicle grow. Lab RM I.
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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
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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.
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22 Pablo A. Simón pablo.simon@enel.com Regulación ENDESA, S.A.