Frankfurt (Germany), 6-9 June 2011 ENEL Group Italian core European base Worldwide strategy Italy’s largest power company. Europe’s second installed capacity listed Presence in continents countries 40 utility by on ENEL Distribuzione: 33 million Customers 2nd largest DSO in Europe over 1.100.000 km lines 260 TWh Energy Distributed 2 million spot-lights in Public Lighting Jon Stromsather – Italy – Round Table 6a – 0832 4 Frankfurt (Germany), 6-9 June 2011 Italian Regulatory Framework and electricity market Full liberalization of retail electricity market from 1 July 2007. Distribution activities are regulated: Tariff and QoS regulation. Currently under Third Regulatory Period (2008-2011). 2010: AEEG approved 2% additional WACC on selected Smart Grids pilot projects. TERNA (HV) Enel Distribuzione (>85%) Big Municipalities (Acea, etc.) Municipalitie s Customers Italy Network market structure 14% 9% 16% 61% Generation Distribution 10% Transport Metering 2% Commercial Act. 0,5% System charges Taxes 100% TOTAL* Jon Stromsather – Italy – Round Table 6a – 0832 Price of electricity components (%) in Italy 2011-1Q Frankfurt (Germany), 6-9 June 2011 Role of DSOs in open electricity market DSOs enable new market of services. DSOs should not enter market of services Play an active role in standardization, key for open electricity market to develop. DSO could play role of “neutral and transparent information hub” to enable demand response. Jon Stromsather – Italy – Round Table 6a – 0832 Frankfurt (Germany), 6-9 June 2011 Role of DSOs in Smart Grids DSOs are strategic enablers of new Smart Grid scenario: Manage Smart Metering infrastructure and data (Telegestore) Enable Active Demand Define DER connection criteria to ensure network QoS and reliability, possibly enable ancillary services from DG and take a role in dispatching DG on the distribution network. Guarantee controllability of EV charging by managing/owning EV charging stations (DSO model) or by defining connection criteria (other models) Possibly operate storage facilities for the management of distribution network Jon Stromsather – Italy – Round Table 6a – 0832 Frankfurt (Germany), 6-9 June 2011 TELEGESTORE Experience Project perimeter 85 % of Electricity Distribution market in Italy 127 Geographical operating units 33.000.000 LV Meters Field devices 358.000 LV concentrators (LV-C) 8.000 palm-PC during massive meters replacement Telegestore ® Project Team: 250 resources Resources 120 ICT Project technicians More than 3500 third-party installers Jon Stromsather – Italy – Round Table 6a – 0832 Frankfurt (Germany), 6-9 June 2011 Other ENEL Smart Grid Projects Europe Italy Integration of DER Energy Consumption / efficiency POI Progetto Isernia Smart Info Electric mobility e-mobility Italy Jon Stromsather – Italy – Round Table 6a – 0832 GRID4EU (under negotiation) Frankfurt (Germany), 6-9 June 2011 Expectations for the future Increased need of DSOs to continue upgrading power grid infrastructure. Increased interaction with TSOs, suppliers, generators, and market operators. Increased role of DSOs in facilitating DER integration, enabling Active Demand and controlling EV charging. Increased communication efforts with customers to “sell” benefits of Smart Grid. Jon Stromsather – Italy – Round Table 6a – 0832