Smart Grids opportunities and challenges for the industry Rada - - PowerPoint PPT Presentation

Smart Grids –

• pportunities and challenges

for the industry

Confidential Property of Schneider Electric

Rada Rodriguez SVP Schneider Electric

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Smart Grids could be Europe’s shale gas…

Maros Sefcovic, Vice President for Energy Union European Commission

− Power generation becomes increasingly volatile − Power transmission increased bi-lateral − Electricity prices are key for the competitiveness of the industry − New technologies are developing fast, business models are changing and increasing the pressure on some energy sectors − Cyber security becomes a major topic

Smart grids play a key role in addressing these challenges.

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What is a Smart Grid?

Managing volatile power generation

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− 700 TWH renewable energy consumption in 2014 (EU 27) − Germany has > 40% installed generation capacity from renewables − EU target 2030: > 27% share of renewable energy consumption

• 24/7 demand response
• Time-based pricing
• Monitor, shift and balance load,

save kWh and peak load

• Trade the savings on the energy

market

The Smart Grid contributes to the competitiveness of the manufacturing industry

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Electricity prices for industrial consumers in Germany

In EU the improvements in energy efficiency have not fully offset the energy price increase.

Complex landscape of technologies, regulatory systems and new business models (actors)

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Source: ESMAP Report June 2015

− Investment in a new power grid − Increased flexibility  Digitization of the grid  Energy management and demand side management − Operational strategies New business models Cyber security − Adjustment of the regulations

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• “privacy by design”
• cost-benefit reconciliation
• regulation of the data traffic

Electricity becomes digital

Digitization is providing the 2-way communication, which is the characteristic of the Smart Grid. The digitization of the grid is the main enabler for efficiency and reliability of the grid and a priority for the development of the grids in Europe.

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ADMS global architecture

156 control centers in 72 utilities worldwide supplying 90.4 million customers

Energy management is the core of all energy efficiency programs

Schneider Electric’s Advanced Distribution Management System (ADMS) integrates

• energy efficiency
• demand response and
• distributed resources technologies

to enable grid operators to make intelligent decisions that help them to run the grid more efficient, reliable and at a lower cost.

Confidential Property of Schneider Electric

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Cyber security plays a key role for the realization of the digital energy grid

− Smart cyber assets are adding new risk layer − Very large no. of stakeholders is adding complexity − “Security by design” − Standardization

New business models

The Smart Grid is pushing the “consumer centric” business models, leading to potential gains for all actors involved, incl. the manufacturing industry.

− Product-oriented services: traditional sales of products but with additional services − User-oriented services: traditional products but leased, rented, shared

• r pooled

− Result-oriented services: delivery

• f results and services no products,

like the mobility service instead of the car

(Tucker and Tischner)

Next steps towards the European Smart Grid

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• Improve the security standards
• Invest in innovative technologies
• Smart utilities
• European network