EDP’s SmartGrid Development: Project InovGrid Lisbon, 7 th of July 2010

Recently 6 reports were published with proposals towards a sustainable European Energy Policy through 2050… 1 These reports were developed aiming to support the revision of the European Energy Policy expected to be debated by

Electric power technologies have higher efficiency than alternative tecs Commercially available “zero- emission” technologies Energy policies enhanced implementation …having in common a growing weight of electricity consumption in the total energy consumption… 2 OCDEUE United Kingdom Source: Key World Energy Statistics 2009 (IEA) average= 48 Electric power consumption over total consumption %, Higher efficiency Lower impact in CO2 emmissions Main drivers

…and to an increased contribution from renewable sources Average = United Kingdom Weight of Renewables within overall electricity generation within EU %,

Hours Need for: Flexibility Storage DSM Back-up Supply patterns % Demand patterns GW Increased penetration of intermittent renewables will call for flexibility and storage 4

5 … technologies Cross-border interconnections Intermittency is managed within different… Available technologies There is a set of technological options to provide the needed flexibility and storage – important role of smart grids Flexible thermal generation and hydro Complementary seasonalities of renewable technologies Demand-side management supported on smart grids Distributed storage (e.g., electric vehicles) Centralized storage (e.g., pumping, compressed air energy storage) … regions … time frames

Transformers 399 Substations 6 million consumers Power plants There’s already “intelligence” at this level The challenge is to increase “intelligence” at this level Renewable energy Distributed generation and electric vehicle SmartGrids are the key to meet the challenges of more renewable energy, increased microgeneration and electric vehicles 6 HV network MV network LV network

It is feasible: The World is becoming instrumented “The transistor, invented 60 years ago, is the basic building block of the digital age. “ 1 b transistors/ person each costing € 4 b mobile phones 30b Rfid tags Trillions of connected instrumented things: cars, appliances, cameras, roadways, pipelines... even pharmaceuticals and livestock.

“We have to get better in believing the impossible” 8 Web 1.0 Web 1.5 Web 2.0 Web 3.0 “A Single Global Machine” 2 b people connected 100b clicks/day 55T links 5% Word electricity hours no stop It is feasible: The World is becoming instrumented

Power layer Communications layer Application layer HAN Future Apps & Services Smart Charging & V2G Distributed Generation & Storage Grid Optimization AMI A Smartgrid has to be built using independent layers Phase 1 Phase 2 Smartgrids should be built in phases Phase 3

EDP developed an innovative SmartGrid project allowing to integrate consumers and network in an unique infrastructure Transformers MV/LV Ponto de entrega EB DTC Consumer/ producer Central Technical System WAN HAN PLC, GPRS, … … EB Commercial system EB Internet EB PT Distribution network MV/LV 10

This Project will benefit consumers by offering a technological leap forward in distribution network service level and capabilities… Higher capacity to integrate renewable energy Increased penetration of microgeneration Greater support to electric mobility Increased capacity to detect consumption frauds Better customer management Better quality of service Remote network management Network O&M cost reduction Greater operational efficiency Increased control over the energy flow in the network allowing increased losses mitigation Higher energy efficiency More renewable energy and the electric vehicle 11 DSO point of view

…while enhancing the development of new and better energy services Based on remote reading and real time consumption Today Tomorrow Based on quarterly manual meter readings combined with energy estimation Billing Acess to the information Increased flexibility through an access to the energy profile using internet, displays, PDA, etc. Avaliable by internet only and based on the last meter reading Sevices All contract changes can be performed remotely Contract changes typically need to be scheduled and performed on location Tariffs Capacity to inform consumers by different channels including social networks Energy management kits Value added services Limited value added services Increased flexibility in pricing and tariffs. Fewer price plans and tariffs 12 client point of view

After completing the technological evaluation we now move on to a pre-commercial evaluation in Évora - the 1 st Iberian SmartCity Évora Lisboa VISEU Viana do Castelo Cantanhede Évora Technical evaluation National rollout Open platform to retailers and energy service companies Emphasis on information capabilities Cost –benefit validation of smart grids Integration and evaluation of all initiatives in a single site: New energy services New price plans Efficient public lighting Distributed generation and Electric Vehicle 13

The first step is to install the platform in the distribution network of the City of Évora - Unesco World Heritage Monument 1.This SmartGrid Project will impact inhabitants in Évora InovCity 2.The investment includes: Installation of smart meters one in each consumer house 341 DTC installed in each MV/LV transformer Integration of IT systems Setting up the communications infrastructures Installation of the remote network control systems 3.Coordination with the Portuguese electric vehicle charging network 1.This SmartGrid Project will impact inhabitants in Évora InovCity 2.The investment includes: Installation of smart meters one in each consumer house 341 DTC installed in each MV/LV transformer Integration of IT systems Setting up the communications infrastructures Installation of the remote network control systems 3.Coordination with the Portuguese electric vehicle charging network 14

SmartGrids are capable of offering Retailers and Energy Service Companies a better platform to serve their clients Distribution network Retailers Energy service companies Improved network Value added services New tariffs 15

A large number of Portuguese and international players have joined EDP in this project DSO’s Industrial companiesTechnological companies Academia 16

Évora InovCity will be a smart grid “living lab” where we will push for increased technology standardisation and integration 17 Open Meter Standards specification for smart metering Open Meter Standards specification for smart metering Open Node Transformer controller specification Open Node Transformer controller specification PRIME Network communication technology specification PRIME Network communication technology specification Participation in other projects Évora EDP SSE Alliander Union Fenosa PPC EVN ORES,EAN DIS RST Energinet

Thank You! 18