1. Andrea Ricci - ISIS Brussels, 12 April 2012 Policy conclusions and way forward

2. Contents Technological challenges and key issues Regulatory requirements New business models and value chains Economics, costs and benefits Societal challenges, barriers and enablers 2

3. Technology Integrating individual technologies into a multi- layer, multi-actor service framework Not only energy technologies: market applications and above all ICT Trends and critical issues for peak load shaving: – Advanced thermal solutions – Off-grid solutions and small scale local networks: grid parity 3

4. Regulation A stable, long-term policy framework to guarantee the mobilization of resources – Adequate incentives to major investors, i.e. utilities (TSOs and DSOs) – prerequisite for a healthy and effective downstream market play Equitable sharing (allocation ) of costs, benefits and risks From “volume-based” to “efficiency-based” business models 4

5. Business Customer participation models to support energy efficiency and demand response Lowering market entry barriers through – Increased aggregation of distributed energy resources (e.g. market platforms) – Simplified market transactions Fully exploiting the potential of pilots to stimulate behavioral changes 5

6. Economics Investments required in both conventional and smart grids Devices (meters, sensors, storage) + infrastructure (IT and communication, computational capacity) Targeted approach to CBA – different litetimes – time-related value of energy – Macro-economic effects Externalities and the socialization of investment costs 6

7. Society Putting customers at the centre of the transition: – Visible and credible savings (> 10%) – Ease of use – Retaining control – Two-way communication campaigns Privacy and security issues (not only for customers…): – Regulation, combined with – Customers empowerment through cooperative approach 7

8. Thank you Andrea Ricci aricci@isis-it.com www.isis-it.com 8