1. Enabling DSOs to Adapt Europe’s Rapidly Changing Electricity Market
The Annual European POWER GENERATION STRATEGY SUMMIT Wednesday 26 November 2014
Enabling DSOs to Adapt Europe’s Rapidly Changing Electricity Market
CEO Tapani Liuhala
Elenia – Finland

2. The future in our hands in the regulated business
ELENIA’S PATH
WHY AND WHAT NEXT?
The future in our hands in the regulated business
Link

3. 293.7 M€ 377 412,000 12% Elenia today Elenia Group
Elenia Oy, electricity distribution company, DSO
Elenia Lämpö Oy, heating company
Elenia Finance Oyj, financial company
Owned by Ilmarinen, Goldman Sachs and 3i.
Turnover
293.7 M€
Employees
377
Customers
412,000
Market share
12%
Partnerships and partners’ personnel
Electricity network services
Electricity metering
Data transfer services
Administrative services
700–800 person-years
160 meters of lines/customer
Total power lines of 60,000 km
Cable stretch 1.5 times around the world
Electricity network management ISO and PAS 55 certification
Occupational Health and Safety Management System OHSAS 18001
Environmental Management System SS-EN ISO 14001
Tekijä, esitys, pvm

4. Business- and customer-driven distribution services
Energy, in its various forms, is a prerequisite for modern everyday life
As a DSO we help our customers’ everyday life to flow smoothly
A modern DSO runs its services and business like any company in a competitive market enabled by modern regulation
The Energy Authority is using the customer’s voice in Finnish distribution markets
Regulation enables capital-intensive distribution services

5. Market development from liberalization to transparency
After the energy market liberalization in Finland 1995 the role of energy companies has been changing
In the beginning focus was on the sales companies and sales competition
Now the focus has turned towards enabling transparent and competitive electricity markets
As market enablers DSOs are strengthening their role
Growing demands of the society consolidate the markets

6. WIN Elenia and regulation CUSTOMER SOCIETY ELENIA BETTER SERVICES
SECURITY OF SUPPLY
BUSINESS OPPORTUNITY
Elenia
Operational efficiency in both opex and capex
Customer-oriented business processes with new smart services
Service production based on a flexible business network
Regulation
DSO having a clear role enabling the electricity market
Finland having a strong role as one of the forerunners in the electricity markets
Reasonable prices and security of supply

7. ELENIA’S PATH
From then to now

8. Elenia’s path
1997
2001
2006
2013
2028
Establishment of contracting markets
Information services during outages
Smart metering
Weatherproof networks

9. Elenia’s path
1997
2001
2006
2013
2028
Establishment of contracting markets
First step 1997, next steps 2002 and 2007
In the beginning only a few service providers
Today fully functioning markets with several actors
Establishment of contracting markets
Information services during outages
Smart metering
Weatherproof networks

10. Elenia’s path
1997
2001
2006
2013
2028
Establishment of contracting markets
Information services during outages
Smart metering
Weatherproof networks

11. Elenia’s path
1997
2001
2006
2013
2028
Establishment of contracting markets
Information services during outages
Automatic information services during outages
Customers’ growing demands towards transparency and trust since Janika storm 2001
Over customers without electricity in Finland
Elenia established web map service and SMS service for customers 2008
Demands for proactive outage information into the Finnish Electricity Market Act 2013
Smart metering
Weatherproof networks

12. Elenia’s path
1997
2001
2006
2013
2028
Establishment of contracting markets
Information services during outages
Smart metering
Weatherproof networks

13. 1997 2001 2006 2013 2028 Elenia’s path Smart metering
Our pilot for smart meters 2002
Smart meters also enable a more real-time electricity market
Mass roll-out 2004–2008 to install smart meters for all customers
Hourly-based measuring enables a better electricity market
Consumption-based invoicing started
The Electricity Market Act demands for smart meters from 2009.
Consumption-based invoicing
Network losses are measured hourly and purchased based on measurements.
Today 97% of all customers in Finland have smart meters
Remote disconnecting and reconnecting to improve market efficiency
Smart metering systems enable smart services for customers like Elenia Mukana mobile application
Quality monitoring also at a level of 0.4 kV
1997
2001
2006
2013
2028
Establishment of contracting markets
Information services during outages
Smart metering
Weatherproof networks

14. Elenia’s path
1997
2001
2006
2013
2028
Establishment of contracting markets
Information services during outages
Smart metering
Weatherproof networks

15. 1997 2001 2006 2013 2028 Elenia’s path Weatherproof networks
Establishment of contracting markets
Information services during outages
Weatherproof networks
Research project for “weatherproof networks” 2006–2009
Decision to build only cable network in 2009
Large investment program for the period 2013–2028
Cabling rate in %, today 30%. Target in 2028 is 70%
Growing demands of the security of supply changed the Electricity Market Act in 2013
Smart metering
Weatherproof networks

16. WHAT NEXT?
Role of DSO

17. DSO as market facilitator
CUSTOMER
Security of supply
Weatherproof network
Self-healing network
Demand response
Smart grids
Energy efficiency and renewables
Customer awareness
Improving energy efficiency
Enabling renewables to markets
Electrical vehicles
Energy Markets
Services improving market activity
Innovative services for customers
WHY?
Requirements of modern society
WHY?
Reductions in fossil fuels as energy source
WHY?
Effective use of resources
By enabling the functional electricity markets, DSOs have a key position in fighting against climate change

18. Thank you for your interest! Tapani Liuhala
Role of DSO
SMART ENERGY
MARKET
Thank you for your interest! Tapani Liuhala