2. How the electricity system contributes to energy efficiency Yves Bamberger EDF Executive VP Research & Development Member of the French Academy of technology

3. EDF R&D3 1 - The electricity system, an asset for Europe 2 - How to evaluate the sustainable “energy efficiency” ? 3 – The lack of global approach for regulation … the need for research !

4. EDF R&D4 The system yesterday SUBSTATION COGENERATION DSO Operation centre TSO Operation centre

5. EDF R&D5 The system in 2020 SUBSTATION DSO Operation centre Aggregator or ESP Operation centre Load interface DER interface Market place

6. EDF R&D6 SUBSTATION DSO Operation centre Aggregator or ESP Operation centre DER interface Load interface Market place The system in 2020

7. EDF R&D7 The electricity system, an asset for Europe French energy consumption : an increase of electricity use ! 1840 Residential (heat) Agriculture 1945 Industry Residential (heat) 2000 Transport Industry Residential (heat) 2040 Transport Industry Residential (heat) Residential (electr.) Main uses of energy : Primary energy – tep/hab Electricity – tep/hab et kWh/hab 0,4  -  0,9  - 8,5 4,5 1,6 - 7500 ?6,4 ?2,8-13000

8. EDF R&D8 … For optimising use of energies >> globally, the electricity system helps to integrate several primary energies and to optimise their relative uses Small and big hydro, nuclear, solar energies, windfarm, gas, STEP … >> interconnected system allows to smoothen demand, store energy. In the future, it will allow – thanks to new information technologies – remote control of power demand … And to more precisely adjust precisely supply and demand without wasting energy ! The electricity system, an asset for Europe

9. EDF R&D9 Needed primary energy : water heating + electricity Hand washing 680 Dish washer 540 A dish washer uses less energy than hand washing ! Less hot water, often wasted when rinsing If all french people were equipped with dish washer, estimated cut of electricity consumption : 2 TWh/year ! (en kWh énergie primaire par an et par ménage, d’après ARENE, université de Bonn ) How to evaluate the sustainable « energy efficiency » ? Dish washer

10. EDF R&D10 Heating Primary energyFinal energyNeeded energy With gas 132 125 100 With electrical convectors 210 105 In the name of global « energy efficiency », which energy forbiding ? Or promoting ? 100 With heat pump 80 40 100 How to evaluate the sustainable « energy efficiency » ?

11. EDF R&D11 Urban transport system Primary energyNeeded energy Traditional : fuel  internal combustion engine (global efficiency = 0,33) 300 100 Hybrid (Prius) : fuel  electricity  engine (global efficiency = 0,40) 250 Electricity for energy efficiency of transport 100 How to evaluate the sustainable « energy efficiency » ?

12. EDF R&D12 1.Global energy efficiency 2.Environmental efficiency 3.Scarcity : energy resources 4.Direct ( Energy, infrastructures, equipments ) and indirect costs ( anticipating scarcity, environment ) Sustainable energy efficiency How to evaluate the sustainable « energy efficiency » ?

13. EDF R&D13 Challenges for 2040 : Scarcity of fossil energies, fuel and gas Need for reducing CO2 emission Need for important financial helps Access to electricity for all Some answers : Generalisation of cogeneration (and micro- CHP) using gas « Society of hydrogen » Electrification to be generalised : transport generation : distributed generation, renewables such as photovoltaic, biomass… How to evaluate the sustainable « energy efficiency » ?

14. EDF R&D14 Merit orderS of generation plants Access to interconnexions Coordinations between system operators Changing support to renewable sources with weak relations to “sustainable” energy efficiency The lack of global approach for regulation

15. EDF R&D15 Effects of non coordinated actions on the markets in Europe O 350 SL B I UK 154 / 280 D 250 NL 1599 CH 160 E 61 P (2.8) via RWE (2.8) via EON F 1000 (0) Spot price at 12h00 - 11/08/03 (Euros/MWh) (0.12 ) (0.15) The lack of global approach for regulation

16. EDF R&D16 The electricity system as national integrator The electricity system as an european optimizor for generation and use RESEARCH ! For the European Commission and the governements For the utilities and players of the energy market For european industries (cars, white goods …) 26 mai 2005