Smart Grids, customers at the heart of tomorrows network

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Smart Grids and local generation

Jean-Baptiste Galland, Director Strategy

22nd October 2013 | SFEN - Paris

Generation

Transmission

Distribution

regulated

deregulated

deregulatedSupply

& Trading

> 10 suppliers:

EDF, GDF Suez,

E-on, Poweo, …

RTE

Mainly ERDF

(+ 157 locals)

EDF, GDF Suez,

Direct Energie,

Poweo… (19)

35 000 000 customers

250.000 producers

Contracts with local authorities :

IIII Connect end-users to the network

IIII Design and build electrical distribution

networks

IIII Operate and maintain network

IIII Provide services to customers or

suppliers : meter reading, connection to network..

IIII Control electric flows for the market :

security of supply, losses procurement

France : Electricity market is open since 2007

22nd October 2013 | SFEN - Paris

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Turnover

13,3 Mds€

Investment

3 069 M€

Field interventions

11 millions

Concession contracts

762

1 047 local sites

1.3 million km of LV and MV network

Staff hiring

2145

Outage duration

71 mn

employees

35 711

ERDF 2012

22nd October 2013 | SFEN - Paris

Quality: significant improvement for the last 20 years

30 Control room24/24

Medium voltage 604,000 km(41% underground)

Primary substations (HV/MV)2,200

SAIDI

300

mn

73

mn

105,000 remote controlled devices

The System Average Interruption

Duration Index (SAIDI) is commonly

used as a reliability indicator by electric

power utilities. SAIDI is the average

outage duration for each customer

served, and is calculated as:

SAIDI is measured in units of time, often minutes or

hours. It is usually measured over the course of a year,

and according to IEEE Standard 1366-1998 the median

value for North American utilities is approximately 1.50

hours

105,000 remote controlled devices

22nd October 2013 | SFEN - Paris

KPMG barometer

According to KPMG, France is ranking 1st for quality and availability of

electricity

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Rank Note (100)

continents rank

22nd October 2013 | SFEN - Paris

France Energy mix scenarios – UFE 2011

0,0 GW

10,0 GW

20,0 GW

30,0 GW

40,0 GW

50,0 GW

60,0 GW

70,0 GW

80,0 GW

90,0 GW

100,0 GW

2015 2030 Sc. I

2030 Sc. II

2030 Sc. III

64,7 GW 66,3 GW

40,7 GW

15,7 GW

41,2 GW

70,0 GW

83,0 GW

97,0 GW

21,0 GW 23,0 GW

39,0 GW

59,0 GW

Nucléaire

Renouvelable

Thermique

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A wide range of scenarios (IEA, EC, UFE...)

Relative prices of energy

Electrical energy mix

Gains made by energy efficiency measures

Penetration of new uses

Few certainties

Energy prices will increase

Constant urbanization

Need to reduce CO2 emissions

Increasing share of intermittent renewable energy

France to the year 2030

0 Md€

50 Md€

100 Md€

Isolation tthermique Bâtiments

Changement moteur

industrie

90 Md€

57 Md€

3 Md€30 ans

10 ans 15 ans

Efficacité Energétique

Investissements

Temps de retour Return (years)

Energy Efficiency

Energy Mix UFE scenarios - 2010

Nuclear

Renewable

Thermal

Investment

Thermal insulation of buildings

Low power lighting

Engine change in the industry UFE - 2010

22nd October 2013 | SFEN - Paris

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2020 forecast : 1 million installations

IIII Wind generation mainly connected to the

MV network

IIII PV generation mainly connected to the LV

network

As a whole > 90% connected to distribution

Challenges

IIII Difficulty to forecast the generation

level

IIII Management of bidirectional flows

1st Challenge : Development of intermittency

PV connected to distribution Wind connected to distribution

installations connected at the end of 2012 installations connected at the end of 2012

22nd October 2013 | SFEN - Paris

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2nd Challenge : Amplitude of peak demand

– By 2030 : 4M to 20M EV + HRV

– By 2020, in all the countries the temperature gradient should increase

– 2012 : EC temperature gradient was 5.2 GW

22nd October 2013 | SFEN - Paris

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3rd Challenge : Deployment of consumer flexibility management technologies

‒ By 2020, 80% of EC consumers to be equipped with smart meters

‒ How to create conditions for consumers to embark the action?

22nd October 2013 | SFEN - Paris

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4th Challenge : Communities increased focus on sustainable development

Community expectations

The Energy Territorial Climate Plan (PCET): a sustainable territorial development plan whose primary purpose is the fight against climate change.

22nd October 2013 | SFEN - Paris

By 2020, ERDF will be in position to cope with main technical challenges

Remote meter reading and services

Act remotely through Linky meter

Act quicker on the network Better invest

Balance Generation / Consumption

Linky ConcentratorInformation

System

CUSTOMERS PRODUCERS

detection

diagnosis intervention

Self-healing

III data collection (Linky)

and data analysis

III risk management

III predictive

maintenance

22nd October 2013 | SFEN - Paris

Smart Grid project explore

new interactions between players in

the electrical system and new

business models available ...

... that rely on a distribution network

more observable and controllable ...

... through the deployment of

telecommunications infrastructure

linking all the elements of the

network and information systems

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ERDF Smart Grids project to prepare the future

22nd October 2013 | SFEN - Paris

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15 demonstrators to prepare the industry

22nd October 2013 | SFEN - Paris

Working on a European description of Use Cases

IEC method, enriched by the work

done in M/490 mandate of the

European Commission to describe

each use cases with a common and

shared method.

www.grid4eu.eu 1422nd October 2013 | SFEN - Paris

Smart grid applications can be classified into four groups with different functionalities

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Lesson 1 : Wide range of benefits for the French electrical system. However shared among many stakeholders …

DSOs : performance of MV and LV networks improvement

Customer, supplier: satisfactionenhancement

Asset managementNetworks infrastructure Operations

• Deferred investment

• Peak requirements reduction

• Disruption reduction and

lower cost of management

• Quality of voltage

improvement

• Meter reading cost reduction

• Reduced maintenance costs

• Life enhancement

(solicitation of assets,

preventative maintenance)

• Increased remote actions

• Energy saving offers

• Easier supplier changes

• Reduction of commercial losses

• Reduced ancillary services and system

reserve costs

• Reduction of congestion costs

• Deferred investment in production capacity

to transport

First lessons learnt

Electrical system: performance improvement

22nd October 2013 | SFEN - Paris

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In the absence of regulatory incentives, the split of efforts and benefits of Smart Grids among agents will be highly unbalanced, with consumers getting most of the value

Source : McKinsey & Company

WITHOUT RAB RECOGNITION

▌Active local system management

▌Market enabler

▌Energy data manager

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Lesson 2 : New Business Model for DSOs

First lessons learnt

22nd October 2013 | SFEN - Paris

Thank you for your attention

22nd October 2013 | SFEN - Paris