1. Business Plan: Balancing the electrical grid load by remote control of electrical consumers Student: Gregor Androjna Email address student: g.androjna@gmail.com (Version: 26 March 2012)

2. Bullet point Electricity customers are charged for electricity delivery and their bills can be lowered if they could and would participate in the remote consumption regulation i.e. in electricity grid load regulation. The electricity grid operator has to adapt the grid regulation model and The electricity customers have to equip their consumers with switching equipment (Relays).

3. Business idea

6. Market Total Slovenian customer potential counts approximately 920.000 electricity users. – At this point there are approximately 180.000 electricity users (20%) engaged in the smart grid system and growing to reach 80% until 2020. The market is available only if the grid operators accept and the idea. The pilot project could be prepared in one year.

7. Market The financial potential is mainly based on reduction of existing electricity system reserve (~30 mio /year). The investment on switching equipment until even point after 3 years is estimated on ~0.5 mio /year. There is a question how high is the alternative el. system regulation potential. Nevertheless we can say much higher than existing system reserve providers can provide for 2 million.

8. Business future The idea was discoursed with the one grid operator and one electricity trailing company. The detailed business plan with technical and economical research has to be prepared. It is to be presented to the grid operator association. The private company establishment for relay financing, implementation and maintenance is to be made. The pilot project is to be done.

9. Thank you. Quetions

10. Functional fact Certain consumers can be switched off when the grid is overloaded without any or minor functional degradation. How much does it cost when the consumer is remotely switched off Ø. How much does it cost when the consumer is on stand by to be remotely switched on Ø. Certain consumers can be switched on when the grid is not overloaded and e.g. the cheaper electricity tariff is available.

11. Business idea The business idea is to balance electricity grid load (consumption) i.e. to reduce load peaks by switching off (on) small or medium electrical consumers. The point is that there are a lot of consumers which can operate with hysteresis and its postponed operation means no additional costs or functionality degradation. So the intention is to invite the electricity users (customers) to participate in grid system regulation by allowing remote control of some electrical consumers. Therefore the consumers are to be equipped with cheap and effective relay equipment and connected to the smart grid systems regulated by the distribution companies. The costumers equipping is to be performed by the new private business company including also financing and maintaining of the relay equipment and consumption consultancy.

12. Added value When customers participate in remote consumer control there are several positive effects related to electrical grid load stability and efficiency. It is about a significant reduction of electricity grid load peaks and therefore: – Less capacity of el. grid system reserves is needed. That means significant fixed and variable cost reductions related to lease and usage of the auxiliary (reserve) generators, so fewer investments in auxiliary generators are needed. – We have lower power transmission capacity, so less transmission loses These positive effects reflect to lower subscription expenses on the bill of electrical users i.e. customers.

13. Private business goals So the idea is practically to upgrade the functionality of smart grid There is no such solution in Slovenia as proposed in this business plan. The private business would be possible for consulting selling, implementing and maintaining in-house equipment. – Since the upgrade can be realized only by the cooperation of Slovenian grid operator (ELES) and the distribution operators as the main business holder. The idea is to finance (actually own) this equipment, to make profit from part of the costumers discounts, gained by participating in the alternative grid regulation and to save the costumer of any expense or technical burden.

14. Market Potential The potential is mainly based on the existing electricity system reserve (80MW +348MW), expenses which are in Slovenia roughly around 30 million on the yearly bases. Further the system reserve will have to be almost doubled in 2015 when the 550MW coal power plant under the construction shall be connected to the grid and furthermore the intense studies are being executed for potential construction of second Nuclear Power Plant from 1100 and up to 1600MW of electrical power. In general that means that in future the alternative system reserve model could not be just the alternative for system reserves but because of needed capacity the essential basic grid system reserve.

15. Market Nevertheless, the potential is mainly based on the existing electricity system reserve (80MW +348MW), expenses which are in Slovenia roughly around 30 million on the yearly bases. Further the system reserve will have to be almost doubled in 2015 when the 550MW coal power plant under the construction shall be connected to the grid and furthermore the intense studies are being executed for potential construction of second Nuclear Power Plant from 1100 and up to 1600MW of electrical power. In general that means that in future the alternative system reserve model could not be just the alternative for system reserves but because of needed capacity the essential basic grid system reserve.

16. Finance For this model presumption case the expenses for alternative system reserve in house relay equipment for remote consumers regulation are lower than 2mio/year for 40% (350.000) electricity users. It is to be analysed how much alternative reserve power (MW) and energy (kWh) can provide 350.000 (40%) customers by the detailed business plan Nevertheless we can say much more than existing system reserve providers can provide for 2 million.

20. Example – Water heating for average family (4 persons) = 2680 kWh/year – Ecectriceth price 0,062 for high and 0,031 for low tarif – VT 0,062 x 2680 = 166 – MT 0,031 x 2680 = 83 – Delta 83 /leto