1. Frankfurt (Germany), 6-9 June 2011 1 The 21° International Conference and Exhibition of Electricity of Distribution Round Table Smart grid development programs in different countries Interregional Operational Programme (I.O.P.) “Renewable Energies and Energy Saving” 2007-2013 CAPRA – IT – RT.xy. Ministry of Economic Development Department of Energy GENERAL DIRECTORATE FOR NUCLEAR ENERGY, RENEWABLE ENERGIES AND ENERGY EFFICENCY

2. Frankfurt (Germany), 6-9 June 2011 2 INTERREGIONAL OPERATIONAL PROGRAMME I.O.P. The Interregional Operational Programme (I.O.P.) "Renewable Energies and Energy Saving“ - EFRD 2007-2013 co-financed by National Resources and the EU Structural Funds, is jointly planned by the Ministry of Economic Development (MiSE), the Ministry of Environment (MATTM), the economy and social Partnership and 4 Italians Regions (‘Convergence’ Objective). Budget: 1600 M€. Objective: “Increase the share of energy consumption derived from renewable sources and improve energy efficiency, promoting local development in the Convergence Regions” Convergence Regions: Calabria Campania Puglia Sicilia

3. Frankfurt (Germany), 6-9 June 2011 3 THE INTERREGIONAL OPERATIONAL PROGRAMME STRATEGY The I.O.P. objective is implemented facing up the bottlenecks which hamper the success of policies (i.e. Energy Networks weakness). The I.O.P. strategy has to be distinguished from the financial needs. Programme keystone: 1. Complete the ordinary policy Incentives Scheme. 2. Lead financial resources to new generation, consumption and research models, able to strengthen economic and employment system to promote the general acceptance and convenience for the implementation of interventions.

4. Frankfurt (Germany), 6-9 June 2011 4 THE ROLE OF MINISTRY OF ECONOMY AND DEVELOPMENT (MiSE) Ministry of Economy Development (MiSE - DGENRE) is responsible for a relevant part of the Programme with particular reference to the following activities: AxisActivitiesBudget(M€) I. ‘Energy Production from renewable sources’ 1.3 Actions supporting Energy production from renewable sources with reference to the construction sector and to public energetic or public use equipments.50 I. ‘Energy Production from renewable sources’ 1.4 Innovative measures for the use of geothermic energy source.190 II. ‘Energy Efficiency and the upgrade of energy system’ 2.4 Interventions for the strengthening and innovation of transmission network to improve the use of renewable sources and small & micro co-generation.208 III. ‘Technical Assistance and accompanying actions’ 3.2 Technical Assistance to Joint Technical Committee (CTCA). Technical Assistance to Interregional Operation (O.I.).13,5 Total Budget MiSE - DGENRE 461,5

5. Frankfurt (Germany), 6-9 June 2011 5 Objectives: Objectives: Upgrade energy transmissions networks in order to promote the use of the distributed generation from RES and small & micro co-generation. Actions Goals: R Actions Goals: Remove obstacles deriving from the lack of solid infrastructure; Design actions strictly related to the exploitation of potential renewable sources and to the spread of small & micro co- generation; Be functional to the needs and perspective of industrial system and territory. Target: Target: Public Administrations and managers of energy transmission networks. Activity 2.4 - PROJECTS

6. Frankfurt (Germany), 6-9 June 2011 6 Activity 2.4 - PROJECTS Project 2.4.1 SMART GRID Executor (implementing) Enel Distribuzione S.p.A, which is assignee (sole agent) of distribution service, covering 99,5% of Convergence Regions users. ProjectDescription Carrying out 4 projects to maximize MV grid receptivity also by means of innovative grid management with a mixed active/passive customer type. ImplementationAwarded to Enel Distribuzione S.p.A. by an Agreement (Convention) signed on 2010, 25 th January. BudgetPuglia (12,7 M€) Caserta (21,4 M€) Trapani e Palermo (26,9 M€) Reggio Calabria (16 M€) Overall budget (4 projects): 77 M€

7. Frankfurt (Germany), 6-9 June 2011 7 PROJECT 2.4.1: INNOVATIVE DISTRIBUTION Sub- Project Sub-Project Description Degree of Innovation CIRED 2011 Paper Ref. P1 Minimize transient interruptions’ effects through self-healing functionalities. MEDIUM-- P2 On-off dispatching of MV-connected generation facilities. MEDIUM-- P3 Advanced voltage management in MV network with distributed generation. HIGH465 P4 Design, construction and operation of a closed-ring MV network. HIGH1037

8. Frankfurt (Germany), 6-9 June 2011 8 Activity 2.4 - PROJECTS Project 2.4.2 INCREASE AND STRENGHTEN FOUR REGIONS’ GRID Executor(Implementing) Enel Distribuzione S.p.A, which is assignee (sole agent) of distribution service, covering 99,5% of Convergence Regions users. ProjectDescription Regional administrations investments planning are aimed at adaptation and strengthening of local-based network, even in a logic of anticipation of needs. ImplementationProjects are defined with Agreements between each Region, MiSE - DGENRE and Enel Distribuzione S.p.A, signed in 2010, 13 th December. BudgetProjects value (about): 29 M€ Sicilia: 10 HV/MV Substations (New); 27,3 M€ Campania: 6 HV/MV Substations (New + Repowering); 35 M€ Puglia: 8 HV/MV Substations (New); 31,6 M€ Calabria: 7 HV/MV Substations (New). Overall Budget: 123 M€

9. Frankfurt (Germany), 6-9 June 2011 9 EXPECTED RESULTS Foster the development of Distributed Generation by anticipating future needs and supporting innovative management of transmission and distribution grid 2.4 MISE – DGENRE CONTRIBUTION TO I.O.P. STRATEGY

10. Frankfurt (Germany), 6-9 June 2011 10 International Smart Grids Action Network - ISGAN ISGAN launched at the Clean Energy Ministerial meeting on July 2010, with Italy and Korea co-founder. ISGAN is an Implementing Agreement of the International Energy Agency. ISGAN provides a framework for high-level government coordination to enable Smart Grid development. ISGAN implements a high-priority recommendation in the MEF‘s Smart Grid Technology Action Plan. Facilitate the global Smart Grid implementation period through Peer Review·Standards Cooperation.

11. Frankfurt (Germany), 6-9 June 2011 11 ISGAN – MAIN PROJECTS 1) Establishing an international inventory of smart grid enabling policies and resulting deployment outcomes. 2) Creating case studies using a common framework to highlight key results from emerging smart grid pilots. 3) Establishing benefit-cost methodologies to support regulators and utilities that are assessing smart grid investment options. 4) Regularly synthesizing insights from the emerging work of ISGAN for consideration by high-level policy makers.

12. Frankfurt (Germany), 6-9 June 2011 12 Priorities for the Italian System 2010-2012 Incentives for Smart Grids pilot investments of Distribution companies on MV active distribution networks with RES/storage (Italian Regulator). Italian breaktrough technological initiatives: Smart meters and related communication technologies. Electrical storage management systems. DMS – Distribution Management Systems. Identification of suitable transmission grid architectures. Validate monitoring and control methodologies.

13. Frankfurt (Germany), 6-9 June 2011 13 MARKET AND REGULATION ISSUES Current tariff schemes do not provide sufficient incentives to support investments in Smart Grids. Tariffs should provide incentives for future investments in smart solutions. Example: Italian Regulator approved an additional 2% WACC on investments related to Smart Grids and Energy Efficiency. Del. 39/10 to refund DSO’s Smart Grid related investments, such as voltage control and DG dispatching on MV grid. Clear regulatory and legislative rules should be set for full roll-out and replication of demonstration projects.

14. Frankfurt (Germany), 6-9 June 2011 14 THANK YOU Department of Energy GENERAL DIRECTORATE for NUCLEAR ENERGY, RENEWABLE ENERGY and ENERGY EFFICIENCY Mr. Marcello Capra Tel. +39 06 47053550 e-mail: marcello.capra@sviluppoeconomico.gov.it marcello.capra@sviluppoeconomico.gov.it Mrs Simonetta Piezzo Responsible for realization of I.O.P. “Renewable energies and energy saving” Tel. +39 06 47052417 e-mail: simonetta.piezzo@sviluppoeconomico.gov.it simonetta.piezzo@sviluppoeconomico.gov.it