Smart grid project - interim report - Interim report for the 6th Steering Group Meeting of the Priority Area 2 Budapest,13 June 2013 The project is supported by the European Union. (VOP )

Project objectives Prepare an assessment of the demand for smart grid solutions in the Danube Region countries Provide forum for the parties to discuss their experiences and future plans in smart grid development Identify possible common issues in the field 2

Activities 1.Budapest workshop 2.Identification of DSO, TSO, regulatory agency representatives in the Danube Region countries 3.Questionnaire developed and distributed 4.Regional workshop prepared for 26th June

1. Budapest workshop 8th April 2013 attended by the representatives of: ‣TSO ‣3 DSOs ‣Hungarian Energy Office ‣Ministry of National Development ‣Other stakeholders 4

Main conclusions developing smart grids (SGs) is not a goal in itself: SGs are means to tackle network related problems as far as alternative solution concerned, energy efficiency is a “smart option” and should receive high priority many existing network investments are not labelled as „smart grid” project albeit they are such developments (e.g. automation) the challenge of smart grid development: a gradual process where the use of the different elements is contingent upon the other system components and the behaviour of various actors the deployment of RES-E is likely to be the prime drive behind the smart grid development of many countries smart grid and smart meters presuppose each other but smart meters differ in the services they provide (remote metering versus remote utility management) 5

Main conclusions (cont.) smart meter choice should depend on the planned use: no need for advanced meters if the aim is to reduce theft the reduction of electricity theft and the automated service stop and start procedures can be a potential driver behind SM rollout (ENEL) the behaviour of consumers to dynamic tariffs is very much country specific (relative share of utility cost in income, environmental consciousness or lifestyle) but the penetration of smart appliances in the households improves the responsiveness of consumers CEE region is not likely to be a forerunner on SG technology and should use the advantage of latecomers from already developed standards, more mature and cheaper technologies. priority should be given to “smart regulation” that is innovative solutions that reduce the cost of system balancing and tackle the voltage problems on the distribution networks due to the penetration of distributed/renewable generation 6

Hungary-specific conclusions major smarting is envisaged in distribution networks but only if RES-E deployment speeds up considerably with the current deployment of intermittent RES-E, the grids do not need major development and until then the attention of DSOs is focused on reliable grid operation while transmission is already automated, the upshot of balancing needs due to RES-E would be the main concern of the TSO 7

2. Identification of stakeholders persons from all the DR countries representatives of DSOs, TSOs, ministries and energy regulatory angencies based on the screening of past SG project activities (conferences, workshops, presentations) as much as possible 8

3. Questionnaire Question blocks: ‣General policy framework and regulatory environment ‣Benefits and barriers ‣Smart meter rollout ‣System flexibility ‣Integration of distributed generation ‣Efficiency of day-to-day grid operation ‣Power quality and security 9

4. Regional workshop Planned for 26th June 2013 Programme prepared 3 presenters already confirmed ‣„The European policy perspective on smart grids” European Commission – Ádám Szolyák ‣„The consequences of high RES-E penetration on the transmission and distribution grids” EnBW - Christian Schorn ‣„Incentivising smart grid pilots – regulatory experience in Italy” Luca Lo Sciavo - AEEG little interest to participate 10

Planned final report and issues to be tackled Planned content of the final report: ‣brief literature review on the current smart grid policies of the DR countries ‣results of the survey ‣summary of the regional workshop Issues to be tackled in project implementation: ‣Limited interest so far Regional workshop application Questionnaire response rate 11

Thank you for your attention! 12