Renewable Energy and Fossil Fuels in 2020 and Beyond? The view of Enel Distribuzione Milan, January 21, 2014 Francesco Amadei Head of Engineering and Standardisation Infrastructure and Networks Division Distribution Business is at a Crossroad because of emerging technological and market trends Examples for Italy EU “green” guidelines and directives Tightening energy efficiency targets Growing distributed generation 2020 Energy efficiency targets (MTEP) -20% -5% 209 167 158 2020 BAU 2020 EU 2020 SEN Distributed Generation (GW) 25 35 6 Increased complexity in grid management and obligation of ensuring the security of supply New trends fostering the electricity vector, convergence of infrastructures (e.g. optical fiber, multiservice metering) and new services for energy retailers and customers Bidirectional communication with customers Possible long-term penetration of electric vehicle and distributed storage 2009 2012 2020 Prosumers (k#) 5.000 50 450 2009 2012 2023 Electric Vehicles (k#) 1.500 0 10 2009 2012 2 2023 The massive growth of DG from RES in Italy A changing environment with new challenges The ambitious national support schemes for Low-carbon generation has led to a significant market penetration of distributed generation (DG) from renewable energy sources 25,5 Non-RES Hydro Bio&Waste Solar DG Connection to the Enel’s Network 2,2 1,0 2,4 HV: AT: 5,1 5,1 GW GW MV: 15,1 MT: 15,1 GW GW LV: BT:5,3 5,3GW GW 16,1 19,1 Wind 3,8 2,4 3,1 4,7 6,4 23,8 25,5 25,6 27,1 29,8 28,5 9,1 Connection as of January 2014 (GW) The increased share of RES connected urgently requires the evolution of the distribution network management 3 31 Smart Grids Smart Metering Electricity Gas Heat Broadband Communication Electro-mobility Vehicle-to-Grid Fast-Charge Load Shaping Distributed Storage Secondary Substations as Data Hub Sensor Networks Big Data Urban, Environmental and Energy Data Active Demand Market Services Smart-Info Energy-Box Load Balancing Renewables Integration Dispatching Network Automation Forecast Storage Distribution System Operator as enabling factor 4 4 Energy investments by 2020 Generation 500 B€ RES : 350B€ Transmission 200 B€ Electricity: 130B€ Gas: 70 B€ Distribution 400 B€ 400 B€ needed to replace and modernize the Distribution Networks in Europe up to 2020 Source: EC communication on Energy Infrastructure priorities for 2020 and beyond, Nov 2011 based on PRIMES calculations EU Multiannual Financial Framework 2014-2020 Heading 3-7 Security, Global Europe, Administration and Compensations – 153 B€ Heading 2 Sustainable Growth: Natural Resources - 420 B€ Heading 1a Competitiveness for Growth and Jobs – 142 B€ Heading 1b – Cohesion Policy Economic, social and territorial cohesion – 367 B€ It includes Horizon 2020 (80B€) bridge the gap between research and the market (5B€ on energy topics) Connecting Europe Facility (33B€)* supporting the development of trans-European networks in the field of energy, telecommunications and transport (6 B€ on energy infrastructures) It includes Regional Convergence 185 B€ Corresponds to less developed regions, whose GDP is less than 75 % of the EU average. Funding is made available through the European Regional Development Fund and the European Social Fund Smart Inclusive Growth Source: EC Commission website, EC Infoday 2013 *Total Connecting Europe Facility budget is 33 B€ due to 11B€ for Transportation allocated in Cohesion Policy 6 Enel leadership in Grid Innovation Network Automation and Integration of RES Smart Metering Demand Side Management Smart Cities Electro-mobility Investments exceeding 2,5 B€ Enel Distribuzione Performance Opex (€/Customer) 2001 (128 min; 80 €/Customer) 80 80 Average cost (c€/kWh) 2002 2003 18,93 2004 2005 60 40 Italian Tariff evolution 130 12,08 60 2006 2007 2008 2009 2010 2013 (41 min; 52€/Cust) 40 80 Distribution 3,32 - 32% 2001 2013 30 Quality of Service SAIDI (minutes per year) Continuous Improvement 2,16 7 Smart Metering The Italian experience Back Telegestore Project (2001 – 2006) Office Concentrator Low Voltage Line PLC Bi-directional Data Flow GSM/GPRS Number of Meters installed 30.9 M units Cumulated CAPEX 2,100 M€ Key figures – Y2013 Customers 31.7M Monthly Based Readings 420M Switchings 3.8M 8 Integration of Renewables Italy (GW from HV network) h0.00 h12.00 h24.00 Reverse power-flow Puglia (GW from HV network) h0.00 h12.00 h24.00 Dispatching (% of AT/MT section with with reverse power flowing more than 5% of the year) +157% 18% Renewable Integration TSO-DSO Interaction Forecast Storage 7% 2010 2012 Italy: 540,000 Distributed Generators for 25.5 GW 9 9 Demand Side Management “Member States shall […] provide incentives for grid operators to make available system services to network users permitting them to implement energy efficiency improvement measures in the context of the continuing deployment of smart grids.” Energy Efficiency Directive, 2012/27/EU Smart Info Technological solutions to the customer in order to: 500,000 Prosumers Enhance customer awareness on the energy use Enable in-home energy management Assure real time information on energy consumptions Enable an Active role in the Energy Market Enable a bidirectional communication with the network operator CHECK OBSERVE Energy efficiency solutions also for SMEs EXAMINE ANALYSE Innovative solutions for more efficient electricity energy uses 10 Electro-mobility Our Vision A charging infrastructure managed by the DSO guarantees: 1. Monitoring of the charging loads. 2. Controlling of the recharge, accounting for network’s real-time capability. 3. The option to opt for a kWh-based invoice system, optionally involving real-time pricing. Smart grid integration of the charging systems will enable: 1. Flexibility of the charging according to energy availability (distributed generation). 2. Storage of possible energy overproduction. 3. Voltage control assuring the quality of service. Solutions based on smart-metering experience Ready for integration into Smart Grids scenarios 11 Electro-mobility Enel Projects in Italy Enel-RER Agreement Rome, Milan, Pisa Bologna, Reggio Emilia, Rimini, Piacenza, Ferrara, Ravenna, Forlì, Cesena Firs Pilot Project in Italy Interoperability with Hera e–mobility Italy Recharging infrastructure testing, EV rental, “Enel Drive” energy contract Roma Capitale-Enel-Acea Agreement Rome Interoperability with Acea Smart Cities Bari, Genova Electric Mobility for Smart Cities European Project Electric Car Rental Rome, Milan Electric “last mile” project Enel - Poste Italiane Pisa (pilot) “Zero emission” mail delivery Manifesto for Electric and Sustainable Mobility Perugia 2,000 Charging Infrastructures in Europe 12 Smart Cities Expo 2015 Fondazione Torino Smart City Comune di Bologna Comune di Genova Comune di Pisa San Patrignano L’Aquila Smart City Associazione Bari Smart City Comune di Cosenza 13 Enel’s smart grid experience A complete set of Smart Grids projects already launched in Italy Included in PCI list - Call expected in 2014 GreenMe Duration: 2015-2019 Budget: 230 Mln€ Funding: CEF Proposal under evaluation Duration : 2011-2015 Budget : 54M, Demo4 8,2M€ PUGLIA ACTIVE NETWORK Funding: FP7 ELECTRIC MOBILITY •Agreement with ENI •Agreement with RER •Agreement with ACEA •Poste Italiane •National Mobility Plan Duration: 2014-2018 Budget: 170 Mln€ Funding: NER300 Duration: 2011-201 Funding: E@H Duration : 2011-2015 Budget : 42 M€ Funding : FP7 Duration: 2012-2015 Budget : 24 M€ Funding: MIUR PROGETTO CARPINONE Duration : 2009-2013 Budget : 16,1 M€ Funding : FP7 Duration: 2011-2015 Budget : 10 M€ Funding: +2% WACC (AEEG) PIANO OPERATIVO INTERREGIONALE Duration : 2011-2014 Budget : 4,2 M€ Funding : FP7 Duration: 2013-2016 Funding : EC Budget : 7.9M€ Duration : 2009-2014 Budget : 123 M€ Enhancing MV networks to host RES; 77 M€ Intelligent MV networks Funding : Structural Funds 14 Main reasons to support Smart Grids development Achievement of European Goals Green Jobs Higher Quality and more Added Value Improvement in quality life Potential growth for the whole Europe 15