Bonafede aeeg ev_recharging_infrastructure_in_italy_2010 oct-19th_milano_mobilitytech_eng

THE DEVELOPMENT OF RECHARGING SYSTEMS FOR ELECTRIC VEHICLES

IN ITALY

Considerations on opportunities and concerns for the electricalsystem in managing with the spread of electric mobility

Daniele Bonafede

Italian Authority for Electricity and Gas 5a edition

MOBILITY TECH Palazzo GiureconsultiMilan, 19th October 2010

Conference “Città Elettriche”, session on “New Energy for the movement”by CEI-CIVES: Electric vehicles for mobility in cities or not: from mirage to reality

The employee of the Authority involved in conferences, seminars and debates takes care to point out the personal nature of expressed views (Code of Ethics Authority, 10.3)

The Italian Regulatory Authority for Electricity and Gas – D. Bonafede 2

What is and what it does in Italy, the

Autorità per l’energia elettrica e il gas

The Italian Authority for Electricity and Gas Authority (AEEG) is an independent administrative authority, established by Law 481/95, with the task of:

• Tariffs, conditions of access and provision regulation for service users in natural monopoly

• Promotion of competition in the liberalized

• Promotion of efficiency in the end-use energy

• Consumer and users of regulated services protection

in the liberalized sectors of electricity and gas.

The Italian Regulatory Authority for Electricity and Gas


DEVELOPMENT OF RECHARGING SYSTEMS FOR ELECTRIC VEHICLES

• Introduction to Electric Mobility

• Classification of recharging systems

• Recharging Services for the mobile electric consumer

AGENDA:1. General items

• Adjustment of the recharging systems

• Trials and pilot projects

• Summary and outlook

2. Regulatory items


ELECTRIC VEHICLES: WHY?

• Types: BEV, PHEV, EREV (electric range >60 km)• Reduced urban pollution (CO, NOx, HC, benzene C6H6, SO2, heavy metals, combustion nanoparticulates, etc.).

• Maximum refueling flexibility (missing only the last meter)• Diversification of energy mix (safety of supplies) to produce electricity can be used some sources unconditional

• Reduced CO2 emission/energy efficiency (just 38%)• Potential tools for energy storage and network optimisation for larger use of renewable sources

• Electric system sustainability also in mid-long term• Sustainable mobility with electric vehicles is a"win-win strategy" because the sum of:– Environmental benefits to economic ones– Stimulus for economic growth to urban livability


EUROPEAN STRATEGY FOR ELECTRIC VEHICLES /1

• European Strategy– Strategy “Europe 2020”: promoting green vehicles by encouraging research, establishing common standards and developing the necessary infrastructure

• European regulation framework– Directive 2009/33/CE16 on the promotion of clean and energy efficient road transport, which aims to reduce emissions of greenhouse gases and improve air quality (particularly in cities)

– Regulation (EC) No 443/2009 setting emission performance standards for new passenger cars by 2015 (it will be reviewed by 2013 to the target of 95 g/km CO2 to 2020)


• EU Commission Communication "A European Strategy for clean vehicles and energy-efficient" COM (2010) 186 final. April 28th, 2010:– It indicates lines of action for green vehicles – among them electric vehicles

– Support for research and innovation (recovery of European competitiveness – occupational profiles)

– Available incentives are too diversified between Member States

– Standardization of vehicle interface/network (in terms of communication/negotiation)

– Upgrading of recharging infrastructure (Commission's commitment to "take the lead" and to define forms of financing for investment)

– Integration of pro-renewables

EUROPEAN STRATEGY FOR ELECTRIC VEHICLES /2


WHAT FUTURE FOR POWER NETWORKS?

• Europen aims 20-20-20

• Complex scenario with many variables– Effective development of distributed generation – Stability of the electrical system in the face of intermittency – Energy efficiency initiatives (end-use and losses) – Possible participation of the widespread demand – Carbon-market prices and trends in CO2– Technology development, storage, etc.. – New electrical applications: eg. electric vehicles– Taxation

• European framework– “SET-Plan ” innovation & technological development (2007)– “III package ” domestic energy market (2009)– “Strategy Europe 2020 ” for the European growth (2009)


PROJECT LENS – OfgemSCENARIOS FOR IMPACT ON NETWORKS

Scenario 1 Scenario 2 Scenario 3 Scenario 4

www.ofgem.gov.uk/Networks/Trans/ElecTransPolicy/lens/Pages/lens.aspx


THE RECHARGING INFRASTRUCTURE ROLE

“With the entry into the market of electric vehicles, consumers can start charging them from existing power points.

However, publicly accessible charging points will have to be provided to meet consumers’ needs on battery charging. An adequate electric charging network will require significant investment and definition of standards on safety, interoperability and payment. ”

European Commission COM(2010)186 final., April 2010

A European strategy on clean and energy efficient vehicles


SEVERAL KIND OF RECHARGE /1

TBD, may cover 50-600 V DC;may cover up to 400 A;may cover up to 240 kW

Storage: optional and static

Not defined yet but they might do so, might cover

AC Three phase

MV, peak, No StorageNetworks concerns?

LEVEL 3

200-450 V DC;max 200 A;max 90 kW

240 V AC Single phase;max 80 A;

max 19.2 kWLEVEL 2

200-450 V DC;Current <= 80 A;

power <= 19.2 kW

120 V AC Single phase;max 16 A;

max 1.9 kWLEVEL 1

DC

CHARGING

AC

CHARGING

Servicelevel

An international classification



Type of current

Technology,batteries, safety

Solution available.

Developments.

No immediate concern

Technical concerns

Under testing: Intern. Consortium

CHAdeMO

More than 20 in Europe (single and multiple charging stations)

Pilot projects number

Outside, largeOn board the vehicle Battery charger

Not now Standard connector in the short

(by 2011) Standardisation

20 – 5 minsFlexibility

60 – 30 mins6 – 3 hrs

Efficiency Time to recharge

20 kWh

50-500 V

>50/250? kW

400 V

22/43 kW

230 V

3,3 – 6,6 kW

Voltage andMaximum Power

Fast Charge Areas

(Fast Charging)

Quick charge in public places

Trickle charge in private places

Services

Features



SLOW RECHARGING

IN PRIVATE PLACES

• 120-150 km range with a recharge of one night at 3.3 kW (slow level 2)

• No problems with the electrical system unless a large local volumes

• Obstacles at regulation level (i.e. permissions by Assembly building)

• "Right to the outlet“• Rates and taxes

SPEEDY/FAST CHARGING

IN PUBLIC PLACES

• Several business models

• Regulatory issues such as dispatching (mobile POD or fixed POD multi-vendor)

• Issues of competition in the supply/sale of electricity

• Impact on the network in relation to power (speedy Level 2 and if without storage fast Level 3)

• Data exchange vehicle-outlet (required European standards)


DIFFERENT KINDS OF SERVICE /1 Fast charge in direct current(DC FC Level 3)

… service in a few minutes …

Vehicles arriving within 2 years

2012-2015: 85 kWh~300-500 km

2011-12160 km

Available compatible vehicles

2010: 15-25 kWh 150-160 km2015: 35-55 kWh ~2-300 km?


DIFFERENT KINDS OF SERVICE /2

AC supply trickle charge (> 3hrs) or AC supply quick (1 hr) in public places

Cars ready: all


DIFFERENT KINDS OF SERVICE /3

Trickle AC charging in private places >3hrs


VEHICLE: A SECURE QUICK INNOVATION /1

• Vehicles side very high rate of innovation for values such as: average specific consumption, autonomy, storage by battery.

• High risk of obsolescence if it will be invested only in the recharging infrastructure network-dependent for low-power services.

• Quickly unuseful (5 years?) or impractical with respect to vehicles requirements and especially to mobile electrical consumers.

3,602,42161,5442193 L260 kmSìSì20125+2

Options: FC: Fast Charging <1h – BS: Battery Swap – L: self-limited speed. 2 + C: Light Commercial Vehicle Calculations by AEEG based on data announced by the manufacturers (2010). (*) Energy commodity price: 0.15 € / kWh

193 L

212 L

140130

150145

150130

100 L

Max Speed (km/h)

3,752,34156,2525160 kmNoNo20112+C

5,332,66177,5035,5200 kmNoSì20115

5,402,7018036200 kmNoNo20124

12,752,66177,0885480 kmSìSì20125+2

2,481,90126,9216,5130 kmNoNo20122

2,401,71114,2916140 kmNoSì20104

3,602,2515024160 kmNoSì20105

3,752,34156,2525160 kmSìSì20125

7,952,48165,6353320 kmNoNo20082

€/100 km (*)

€/Full charge

(*)

Consump.(Wh/km)

Capacity (kWh)

Range

(Km)BSFCYear

Type

(pax)


VEHICLE: A SECURE QUICK INNOVATION /2

• The data in the shown table also indicate that will result an even suburban use for the announced electric vehicle.

• They are known trials funded in USA, Japan and some European countries (Portugal, Spain, United Kingdom, the Netherlands and Ireland) to begin to equip nodes with high traffic in urban areas and recharge areas, about each 60 km as the existing areas of service, fast roads/bypass and highways with equipment supply for fast recharge direct current (CHAdeMO or DCFC level 3).

• Areas can be optimized with storage and little production from renewable sources in order not to overburden the local network, where not available.

• The above, together with the other basic elements, allows a real, but also necessary for the well-known climatic constraints, use of electric vehicles, practical and with no compromises.


RECHARGING IN PUBLIC PLACES: THE DIFFERENT ASPECTS

• The choice of model does not relate to decisions of the regulator – must be part of a wider choice of public policy as regards issues such as:

• Environmental • Road system (Congestion Charge, and location systems ZTL)

• Urban planning (permission to recharge areas) • Transport terms (requirements and review vehicles)

• Tax (differential taxes and subsidies)


TFL – Guidance for implementation ofelectric vehicle charging infrastructure

http://www.london.gov.uk/electricvehicles/docs/EVCP-guidance-version-1-Apr10.pdf


THE REGULATION ROLE

“The level of uncertainty about the futurerole and direction of networks is unprecedented, at least since privatisation.

… we think it is important to keep optionsopen wherever possible, to encourage networks to innovate and to ensure thepolicy and the regulatory frameworks aresufficiently flexible to adapt to changes over time”

Ofgem, LENS Report, 2008


� RECHARGING IN PRIVATE PLACES

• "PUBLIC" RECHARGING POINTS

• SMART GRID and SERVICES VEHICLE-to-GRID (V2G)

RECHARGING INFRASTRUCTURES REGULATION


RECHARGING IN PRIVATE PLACES

AEEG decision ARG/elt 56/10 (April 2010)

• “Measures of connections to power [...] electric vehicles. [...]”

• Up to yesterday: uniqueness of the site for client

• Today: possible additional delivery points, with a counter dedicated, for:

• Families

• Condos (condominium regulations concerns?)

• Company Parking

• Energy transport charge: LV other purposes

• Price of energy: market (also “greater protection”)


RECHARGING IN PUBLIC PLACES: POSSIBLE DIFFERENT BUSINESS MODELS

1. Recharging as after-sales service

� free activity

2. Recharging as extensive distribution infrastructure� regulated activity

3. Recharging as a separate network service� Unrelated activity to the electricity system

4. Battery-swap� industrial activity

• The model chosen must always be compatible with the retail electricity market liberalization


"PUBLIC" RECHARGING POINTS /1

First solution

Recharge as after-sales service– Case similar to natural gas for vehicles

– The station is the final customer for the electricitysystem

– The owner of the charge area agree with the reseller/s

– Competition between the recharge areas such as service stations in classic fuels

– Role of provider limited to connect and measure upstream of the recharging area

– Free activity, with some regulated aspects


Second solution

Recharging area: expanded role of the DSO– Recharging area is included in the distribution asset forthe area of the concession (recharging facilities in RAB)

– The DSO as a provider must allow access to all authorized dealers in Italy

– Competition between different brands in the same area– A specific dispatching regulation is needed for amodest amount of energy

– A regulatory is needed on technical characteristics andspread (similar case to the public phone booth?)

– Activity under administrative concession and fully regulated

"PUBLIC" RECHARGING POINTS /2


RECHARGING IN PUBLIC PLACES: DIFFERENT BUSINESS MODELS

Possible criteria for evaluating the different models:

a) Competition (in different markets)

b) Support for infrastructure development

c) Innovation vs. Standardization d) Ease of experimentation

e) Convenience for the mobile electric consumerf) Risks about:

• Goldplating• Stranded costs (obsolescence)


RECHARGE POINT PUBLIC IN VIEW:

• From the coming months and probably over the next two years will be a gradual clarification of the institutionaland regulatory framework at all levels

• As mentioned, the choice of model is not guided by thedecisions of the regulator, covering very different subjectsand aspects involving different decision-makers

• Final decisions on the type of model for the public recharging service certainly depend on technological developments and what are the business models preferred by the market (service providers and consumers), and the results of experiments

• It is desirable that the trials may be the most diverse intype, technology, organization, though limited in time.

• It is important that it starts a first shrewd starting of infrastructure, easily adaptable to standards agreed at least a continental level when available.


OBJECTIVES OF THE PROVISIONS: ACCOMPANYING THE EXPERIMENTS

• The Authority’s decision no. ARG/elt 136/10, approved on 2010/09/02, introduces special and interim provisions for testing trial public recharging systems. The interim provisions include: a) Regulated tariffs for transmission, distribution and metering services; b) Energy settlement

• The public recharging infrastructure are defined as:“a fee recharging infrastructure open to the public with non-restricted access”.

• Tariff of recovery of costs as calculated in accordance with the energy (price in €/kWh), valid for all business models and actors in the pilot projects.

• The interim regulatory regime enables and encourages the establishment and dissemination of pilot projects. However a medium-term stable framework for technological solutions andindustrial and managerial plans has yet to be defined.

• The decision also enables many different parties to carry out pilot projects in their roles as:Service providers Electricity distribution companies (DSOs)


GENERAL PRINCIPLES FOR THE SPECIAL PROVISIONS

• Principles of AEEG decision ARG/elt 136/10:

– Non-discrimination between subjects and technical andorganisational solutions

– Parties use open and existing industry standards

– Commitment to comply with European or international performance standards when available

– Transparency in the criteria for allocation of costs

– Certainty of tariff structure

– Correlation between the degree of socialisation of costand level of information made publicly available

– Minimize the managing burden in contractual relationships between the various entities in the regulated sector


DEMONSTRATION PROJECTS AND INCENTIVES FOR SMART GRIDS

• Electric vehicles matter intersects with the development of electricity networks on issues such as:– Storage services necessary for

decoupling the vehicle recharging network commitment

– Integration with intermittent-sources of production

– into perspective, the VE are resources for balancing the local network and for the energy market zones (V2G)

• Incentives for smart grids – Demonstration Projects in the current III regulatory

period (AEEG decision ARG/elt 39/10)– Making arrangements in the IV regulatory period


RECHARGING SYSTEMSSUMMARY AND OUTLOOK

� Private recharging points – Already settled• Dedicated points of delivery and meters• Transport tariff: LV other uses

� Public recharging points – Start testing• Implementation of a range of business models• During the testing phase, a recharging service can

be offered both by the local distribution operator(DSO) and by industrial service provider or other company;

• the Authority will publish a consultation document seeking views from to all stakeholders

• Provision by November 2010

In both cases:• Energy Price Model: Market price (IPEX)


FINALLY, TWO UNANSWEREDQUESTIONS ALWAYS OPEN…

How smart is smart enough?It merits investigation whether there are less expensive alternatives that could provide nearly equal benefits.

fonte: OECD, February 2010

Innovation, although good and simple, is hard to spread... because:

“All truth passes through three stages: First,it is ridiculed; Second, it is violently opposed;Third, it is accepted as self-evident.”

(A. Schopenhauer)


Thank you for your attentionand comments

[email protected]

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This presentation does not constitute an official document by the Authority. All official documents can be

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Please visit the website of the Association of European Energy Regulators CEER/ERGEG:

Automotive

Bonafede aeeg ev_recharging_infrastructure_in_italy_2010 oct-19th_milano_mobilitytech_eng