Andrea Ricci - ISIS Brussels, 12 April 2012 Smart Grids: Overview of the study and main challenges 1

What is a Smart Grid? An electricity network that can intelligently integrate the behaviour and actions of all users connected to it - generators, consumers and those that do both – in order to efficiently deliver sustainable, economic and secure electricity supplies. Source: The European Technology Platform SmartGrids 2

What is smart in a Smart Grid? Better use of technologies and solutions better plan and run existing electricity grids intelligently control electricity generation enable new energy services and energy efficiency improvements 3

Preparatory study Overview on: – the scientific and technological state of the art on smart grids, and preliminary insights on future developments – the existing research initiatives under the European framework – the most relevant challenges and needs of EU regulatory provisions for the deployment of smart grids 4

The 6 basic challenges (1) 1.How far may smart grids enhance the potential for RES and increase their share in the European generation mix, by reducing the intermittency and increasing the capability to provide ancillary services? at what extra costs? where is the optimal trade-off? 2.What is the magnitude of the potential impacts of smart grids on peak load shaving and electricity demand mitigation? at what extra costs? 3.What is needed from a political and policy perspective for the deployment of an EU smart grids network aimed at enhancing the customers' services and efficiently contributing in matching the EU energy and climate targets? 5

The 6 basic challenges (2) 4.In view of the deployment of an EU smart grids network, what are the promising business models for all parts of the value chain from generators, over transmission and distribution operators, to consumers in order to minimise total costs? 5.What are the financial and regulatory implications on smart grids deployment due to the liberalisation in the European electricity sector and the evolution from energy and services offered by integrated companies to energy and services offered by unbundled companies? 6.What measures can be envisaged for a full compliance of smart grids and, more specifically, smart metering systems with privacy and data protection legislation? 6

Draft: 15/03/ p + ann. Final: 15/05/12 7

The report 1.Techno-economic issues 2.Non technological challenges 3.The value chain business models 4.Financial and regulatory implications 5.The policy perspective, and the societal involvement required to steer and rule the smart grids deployment 6.Conclusions and way forward 8

Workshop agenda 9