Grayson Heffner - Smart Grids and Smart Customer Policies for Asia

8/6/2019 Grayson Heffner - Smart Grids and Smart Customer Policies for Asia

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OECD/IEA 2011


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OECD/IEA 2011

Topics IEA snapshot

Evolution of smart grids

Role of smart grids in addressing climate change andpower sector challenges

What is needed to create smart grids?

Smart grid initiatives in Asia and elsewhere The need for smart customers

A note on ISGAN


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OECD/IEA 2011

IEA Snapshot

An autonomous body of the OECD founded in 1974

An energy policy advisor and think tank

28 Member countries Asia Pacific: Japan, South Korea, Australia & New Zealand

North America: USA, Canada

Europe: UK, Ireland, Germany, France, Belgium, Luxembourg, Spain,Portugal, Italy, Austria, Denmark, Netherland, Greece, Finland,Sweden, Czech Rep, Hungary, Slovak Republic, Turkey, Switzerland,Norway, Poland

Decision making body: Governing Board: Director-Generals of Member countries

Standing Committees review IEA programs and work

Secretariat: 220 engineers, economists and statisticians


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OECD/IEA 2011

Electricity Systems are evolving

Smartening the grid is not a one time event


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OECD/IEA 2011

Smart Grid Technologies

Smart grid technologies are applied across the

entire electricity system


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OECD/IEA 2011

How smart grids enable the 450 ppm scenario

GHG emissionsreduction

Mechanisms

Improved end-userbehaviour

From consumerfeedback

Facility efficiency

improvement

Optimization of

systemsPower systemoperations

Demand response

Cleaner transport Deployment of EVs

Improved networkefficiency

Voltage control &network optimization

Integration ofdistributed energy

Bidirectional flows

Integration of variableenergy sources

Through storage &demand response

Smart Grids have the potential reduce global CO2

emissions by over 2 gigatonnes per year by2050

Direct and enabled emission reductions

Direct reductions: energy savings from peak load management, continuous commissioning of service sector loads,

accelerated deployment of energy efficiency programs, reduced line losses, and direct feedback on energy usageEnabled reductions: greater integration of renewable and facilitation of EV and PHEV deployment

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2015 2030 2050

World

GtCO

2

/yr


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Over half of this CO2 emissions reduction

potential is in Asia

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2015 2030 2050

China

GtCO2

/yr

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2015 2030 2050

India

GtCO2

/yr

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2015 2030 2050

Other Developing Asia

GtCO2

/yr


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Smart grids will help accommodate demand

growth, variable generation, and new end-

uses especially in developing Asia


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Forecast Electricity Demand by Region2007 Electricity

demand [TWh]

2050 BLUE Map

Electricity demand

[TWh]

BLUE Map Percent

growth 2007 to 2050

World 16 999 36 948 117%

OECD North America 4 664 6 252 34%

OECD Europe 3 136 4 071 30%

OECD Pacific 1 681 2 311 37%

Economies in Transition 1 149 2 348 104%

China 2 856 9 500 233%

India 567 3 453 509%Other Developing Asia 853 2 822 231%

Africa 521 1 691 225%

Latin America 808 2 062 155%

Middle East 594 2 437 310%

Note: Electricity demand equals generation minus losses.


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Half of global growth in electricity demand

to 2050 will be in Asia


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Variable electricity generation will increase rapidly

to 2050, but less so in Asia than elsewhere


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EVs and PHEVs will be transformative for

both the transport and power sectors

2010 global production: 50 million PVs


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What is needed to create smart grids?Technology Integrated commercial-scale demonstrations, including sustainable business

models

Global technology standards to accelerate deployment and reduce costs

Seamless integration with existing electricity infrastructure

Policies and regulation New regulatory framework to address changing system needs and new

technologies

Practical approaches to accommodate system integration and sharing ofsmart grid costs and benefits.

Resolve cyber security issues

Create smart customers through proactive consumer protection, newservice and pricing options, retail and wholesale market integration, enablingtechnologies


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Smart grid initiatives in Asia and elsewhere

China Government-sponsored water and power network investments, including a substantial

investment in smart grids.

Incorporation of smart grids into high-voltage networks in order to accommodate expansionof renewable generation . Smart grids investments will reach at least USD 96 billion by 2020.

India USAID-supported development of a Smart Grid Vision for Indias Power Sector

Private sector development of a Smart Grid Customer Demonstration Centre (SGCDC) inHyderabad

Italy Telestore project - over 2.1 billion invested in national deployment of 33 million smart

meters, automation of 100,000 MV/LV distribution substations, and smart management ofnetwork operations

Japan Development of an urban integrated energy approach through the communities/smart citiesconcept

Korea Has announced plans to implement smart grids nationwide by 2030

USA USD 4.5 billion was allocated to grid modernisation through stimulus funding


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Smart customers should be part of smart grids

Passive, uninformed Customers

Smart Customer Model

Smart grids can provide end-users with access to data on

consumption data & market

Customer-focused policies are

needed for end-users to benefit

from smart grids

Mobilizing customers through

smart pricing and other options

will help manage demand growth

and improve efficiency Including smart customer

policies will help build consensus

on the benefits of smart grids for

everyone


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Smart Customer Policy Needs

Consumer Protection

Policies

Customer Feedback

Policies Smart Pricing Policies

Transitional Policies

Smart Grid RegulatoryPolicies

Enabling Technology

Policies


18/21 OECD/IEA 2011

International Smart Grid ActionNetwork (ISGAN)A mechanism for bringing high-level governmentattention and action to accelerate the development anddeployment of smarter electricity grids around theworld.

Current Participants and expressions of interest:

Plus more


19/21 OECD/IEA 2011

Global Smart Grid Inventoryof smart grid-enabling programs and policies1

Smart Grid Case Studiesusing a common framework and metrics2

Benefit-Cost Analyses and Toolkitsto inform smart grid regulatory and investmentdecisions3

Synthesis of Insights for Decision Makersmaking projects results accessible and useful4

19

ISGAN inception projects


20/21 OECD/IEA 2011

Smart grids:

Accelerating electricity system evolution to achieve

shared goals for energy security, economic

development and climate change mitigation.


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For more information:

www.iea.org/roadmaps

[email protected]

[email protected]

Thank you
http://www.iea.org/roadmapsmailto:[email protected]:[email protected]:[email protected]:[email protected]://www.iea.org/roadmaps

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Grayson Heffner - Smart Grids and Smart Customer Policies for Asia