Inovgrid and new challenges for smart grids on urban environments Ricardo Prata Network Planning Dept. EPP PhD Student at IST Lisbon, 18th Nov. 2014

EDP … From a local electricity incumbent to a global energy player with a strong presence in Europe, Brazil and considerable investments in USA UK USA Canada Portugal Angola Spain Italy France Belgium Poland Romania China 中国 Brazil Key Figures: Top World level Electric Sector in Dow Jones Sustainability Index #3 World wind energy company #1 Portuguese industrial group EBITDA 2013: Portugal 44% Other 56% Wind Power 26% of EBITDA IPO in Jun‐08 Wind Power: 8.0 GW Spain 17% of EBITDA (Excl. Wind) Presence since 2001 # 2 in gas distribution Brazil 16% of EBITDA Presence since 1996 Power generation: 2.2 GW (from which 1.8GW is hydro) 2 electricity distribution concessions Portugal 41% of EBITDA (Exc. Wind) Privatization in 1997 (IPO) Single electricity distributor

Smarter grids are the key to meet the new challenges faced by DSOs, in a world moving towards a decarbonised economy Renewable Energy Electric Mobility Smart grids Energy efficiency

The main elements in the InovGrid architecture cover the LV network and provide access to commercial & technical data Distribution Network HV network MV network LV network Retailer/ Consumer Production Transmission Station Substation Secondary Substation EB WAN LAN HAN Central Systems (commercial & technical) Distribution Transformer Controller (DTC) Energy efficiency EDP Box (EB) Electric Mobility Renewable Energy

Évora Inovcity main characteristics New public lighting solutions 8 Évora has been selected as the living lab for the Inovgrid project: the InovCity 30k EDP Boxes and 340 DTCs were installed on the municipality, serving 50k inhabitants Évora Inovcity main characteristics InovCity showroom DTC installed in all secondary substations EV charging points Enhanced microgeneration integration Energy efficiency case studies Évora InovCity has the scale, the network diversity, the costumers and the context that enable a deep evaluation of the Inovgrid solution. New public lighting solutions New products and services

8 The project developed a strong involvement of local stakeholders and population Involvement of the Town Hall and other local public authorities Client research and Social studies Presence in the local press Newsletter to all energy professionals in Évora region Mailing and information to Évora Clients Energy Bus in Évora InovCity Showroom in City Centre Collaboration with Évora University In-home displays in selected clients Test of new products and services Smart Grids conferences and meetings in Évora InovCity website

The business case is clearly positive for InovGrid, but there is an unbalanced distribution of costs and benefits Main quantified benefits Illustrative Cost-Benefits Analysis Society Net Value Distribution System Operator Energy Efficiency 3.9% energy reduction InovCity C&T Losses Reduction expected between 2% and 4% Field Operations Large majority will be done remotely Custom. CAPEX DSO OPEX Costs Benefits

InovGrid deployment schedule Government decision pending EDP Distribuição, is deploying the concept in other locations, to consolidate knowledge and test different technologies InovGrid deployment schedule Key drivers: New technologies (PLC PRIME, RF Mesh); Different social and environmental characteristics; Different grid conditions; New smart grids applications; Increasing business process integration... 2010 2011 2012 2013 2014 ... 2020 30k EBs (Évora InovCity) +150k EBs (6 new locations) +200k EBs (keep expansion) 6M EBs (full rollout) Rollout date tbd Government decision pending

Conclusions EDP Distribuição focus on value creation in customer centric services and involving local stakeholders active participation developing a future-proof solution in a project commercially tested, enabling innovative smart services, as demonstrated in Évora – the 1st Iberian InovCity strongly aligned with EDP group strategy aiming at Europe’s goals involved in European Initiatives, Institutions and Projects focused on knowledge sharing and dissemination

Thank you! ricardo.prata@edp.pt