Presentation on theme: "Electricity Systems are evolving"— Presentation transcript:
1 December 12th, 2012 Smart Grids in Italy: situation and perspectives Michele de Nigris
2 Electricity Systems are evolving SOURCE I.E.A.Smart Grids can be described as an upgraded electricity network characterized by a high level of flexibility and self-adaptability fostered by a two-way digital communication between supplier and consumer, intelligent metering and monitoring systems.2
3 THE SITUATION IN ITALY - THREATS HIGH ENERGY PRICESUNFAVORABLE ENERGY MIXHIGH COSTS OF NATURAL GAS - CONTRACTSHIGH INCENTIVES TO R.E.S. – THE HIGHEST IN EUROPESYSTEM INEFFICIENCIES AND BOTTLENECKS – COUNTRY TOPOLOGYDEPENDENCE FROM IMPORTS82% PRIMARY ENERGY IS IMPORTEDLIMITED ENERGY PORTFOLIO – FOCUSED ON FOSSIL FUELSINSUFFICIENT SYSTEM RESILIENCY TO EXTERNAL STRESSES (E.G. GAS)DIFFICULT FINANCIAL SITUATIONOVERCAPACITY PRODUCTION GAS PLANTS – REDUCTION OF ENERGY DEMAND, OVER-PERMITTING, COMPETITION FROM RESTYPES OF GAS ACQUISITION CONTRACTS (LONG TERM TAKE OR PAY)COMPETITION FROM FAR EAST (REFINING)SOURCE MiSE
4 THE SITUATION IN ITALY - OPPORTUNITIES ENERGY INTENSITY 15% LOWER THAN AVERAGE EUROPEANHIGH ENVIRONMENTAL STANDARDSITALY IS IDEALLY LOCATED IN THE MEDITERRANEAN REGIONGEOGRAPHICAL POSITIONTHE POWER QUALITY SCORES ARE AMONG THE BEST IN EUROPEVERY HIGH QUALITY OF SERVICENATIONAL REGULATOR IS PROACTIVE IN MOTIVATING NETWORK OPERATORS TO INTRODUCE INNOVATIONADVANCED REGULATORY FRAMEWORKCOMPETITIVE AND ADVANCED INDUSTRIAL SECTOREXCELLENT TECHNOLOGICAL LEVELSOURCE MiSE
5 A RAPID GROWTH IN RES INTEGRATION WIND [GWh]PHOTOVOLTAIC [GWh]SOURCE GSE
6 ITALY’S PRESENT SITUATION ON SMART GRIDS Distribution operator among the most advanced worldwide – 33 Million smart meters and wide system automation;Medium and small size industry developing and proposing advanced or breakthrough technologies: power electronics, DMS, small storage, DG control, ICT solutions;Regulator allowing for incentives to smart grids innovation pilots;Public research centers and universities active in house and internationally.
7 APPLIED RESEARCH PROGRAMS 15-20 M€ dedicated to smart grids R&DScenarios for the development of the Italian network;Active networks: costs and benefits;Control systems and tools of active networks;Interconnections with neigbouring countries;Security of the infrastructures;Power quality issues;Technologies and components: power electronics, ICT and protocols, HTS applications, metering;E-mobility;Funding scheme based on a fee on the electricity bill of each customer, dedicated to national strategic research activities in the field of the electricity system. Activities regulated according to the Decree of the Ministry of Industry, trade and handicraft dated 8 March 2006
8 INCREASING THE RES HOSTING CAPACITY IN DISTRIBUTION 8 projects awardedSeveral regions concernedProjects started January 2011 – 3 years demonstrationTotal 16.5 M€ (higher ROI rate)Transformation of portions of HV/MV substations and medium voltage network already experiencing reverse energy flux;Management of DG (dispatching, protection, supervision, automation, voltage regulation, communication);Pre-requisite: high replicabilityARG/ELT 39/10 25/3/2010: Incentives for smart grids investments of Distribution companies
9 ELECTRIC MOBILITY: REGULATOR’S INITIATIVES COLOURCOMPANYCHARGING POINTSA2A75ENEL310MUNIC. PARMA200ENEL ENERGIA26CLASS ONLUS150INSTALLATION AND OPERATION OF SLOW OR QUICK E.V. CHARGING POINTS, TESTING DIFFERENT BUSINESS MODELS: TECHNICAL ASPECTS, INTEROPERABILITY, BILLING, ROAMING, ETC. – 5 projects - < 728 €/pointPROBLEMS: NUMBER OF E.V.s : 350 IN 2011 – 2500 INCLUDING FLEETS AND LIGHT E.V.sARG-242/10
10 ELECTRIC STORAGE: REGULATOR’S INITIATIVES ARG - 288/2012/R/eelPilot projects on transmission network, using electrochemical storage technologiesUp to 3 projects (based on CBA) – incentives: WACC+2% for 12 yearsSize sufficient to demonstrate real increase of large scale VRES integration including dynamic network control systemsBenefits calculated on:Reduction of production curtailmentEfficiency of charging/discharging cyclesCosts of energy – based on benchmarksCosts includeCAPEX, OPEX including dynamic rating evaluation systemsWidespread dissemination of results
11 CONCLUSIONSAs in many other fields, Italy reacts to structural difficulties with creativity and intelligence.In the case of energy, the enlargement of the national mix to include renewables is a must, together with the energy efficiency measures and the load flexibility.The geographical topology of the country and the limited margins of the network require intelligent solutions of network modernisation.Stakeholders are joining forces to facilitate this transformation and to leverage national competences.
12 CONCLUSIONSSynergies and collaboration are made possible between research and operators to facilitate the smartgrids developments and deployment.Smart grids technologies are demonstrated in the field thanks to national research programs, operators investments and regulatory intelligence.The results of the pilots and demonstration activities are shared among stakeholders and leverage national competences .Italy wants to remain at the forefront of the smart grids developments and applications and will participate actively in all European and worldwide smart grids collaborative efforts.