1. 25 April 2013 MEETING THE ENERGY DEMAND Towards decentralised energy systems Dr. Winfried Hoffmann President EPIA Member of the Supervisory Board of SMA Solar Technology AG and Management Representative to the EPIA

2. Current Situation 2 Decentralised energy systems are nothing new Solar and Wind capacity additions exceeded any other LCOE of wind AND solar below 10 €ct/kWh PV + wind = 28,4 GW (power) ~=~ 50 TWh (annual energy)

3. Challenge 3 Absence of real competitive retail electricity markets (regulated prices) Household consumers still too passive Intelligent investments needed at the distribution level Discussion about grid and market integration challenges focusing too much on a top-down approach Aggregator TSO/DSO

4. What is needed 1.Empower consumers Through self-consumption of PV electricity Develop Time-of-use electricity tariffs Deploy enablers: DSM, storage, smart meters 2. Unlock the potential of aggregation 3. Take a fresh look on how to manage distribution grids Better investment planning strategies Use capabilities of micro-generators in system operation Increase visibility on DER 4. A 2030 binding RES target Will be needed to drive the systemic transition Low Carbon-only approach will not deliver the necessary signals!

5. European Photovoltaic Industry Association Renewable Energy House Rue d’Arlon 63-67, 1040 Brussels - Belgium T +32 (0)2 465 38 84 - F +32 (0)2 400 10 10 info@epia.org - www.epia.org www.epia.org THANK YOU FOR YOUR ATTENTION This document was prepared by Alexandre Roesch and presented by Dr. Winfried Hoffmann