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The SmartGrids ETP Objectives and Strategies Maher Chebbo, PhD Energy VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome, May 29th 2008

The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

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Page 1: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

The SmartGrids ETP Objectives and Strategies

Maher Chebbo, PhD EnergyVP Utilities industry for EMEASAP

SmartGrids ETP Advisory Council Member,Chairman of « Demand and metering » WG3

Rome, May 29th 2008

Page 2: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 2

Reasons for Networks failuresReasons for BlackoutsWeather, Sudden increase of demand, Operational errors, Human error, MS-Border operability,

Plant Breakdown & Accidents, Cables failure, Power Line Slides, etc

Page 3: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 3

from toRegulated Deregulated

from toPublic & National Private & European

from toTraditional DER and RES

What makes Energy look Smarter ?

European member states have to reach 2020 Energy goals. 1000 b€ investments by 2030European Commission SmartGrids Technology Platform defined the roadmap to 2020+

from toReactive Assets Mgt Predictive (RCM & Risk Management)

from toElectrical 1-way DER Electronic 2-ways

from toPassive Grid Smart internet like

from toPassive DER

Active Market Communication

from toReading Meters Smart Meters & AMI

from toEnterprise centricCustomer centric

Competitive Market

1

2

3

4

5

6

Electricity & Gas

Generation - Exploration

Transmission

Distribution

Metering Operations

Supply – Retailing Euro

pean

Smar

tGrid

s20

/20/

20 in

202

0

C

Page 4: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 4

European Energy policy goals (20/20/20) for 2020 : The roadmap of SmartGrids Advisory Council (con‘t)

Regulation ofMonopolies

Innovation andCompetitiveness

Low Prices And Efficiency

Primary EnergySources

Reliability andQuality

CrossBorder

Support

AmenityPreservation

ClimateChange

Kyoto andPost-Kyoto

Inte

rnal

Marke

tSecurity of Supply

Environment

20/20/20

Euro

pean

Smar

tGrid

s20

/20/

20 in

202

0

Page 5: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 5

European SmartGrids will be the Intelligent Value Chain that will optimize, control, secure and sustain the procurement and supply of Cleaner Distributed Energy anticipating increased demand till 2050

Distributed Energy Supply Chain Optimization

Generation Transmission Distribution Metering Customer

European SmartGrids is the missing piece to making the European 20/20/20 Energy goals a reality

SmartGrids is mandatory to Optimize the 2050 Distributed Energy Supply Chain (con’t)

Page 6: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 6

SmartGrids goals (TSO vision)

1. Sustainable grid expansion

2. Facilitate massive penetration of Renewables

3. Increased robustness

4. Integration of European electricity markets

5. Increased observability, better understanding and predictability of the power system state

6. Utilization of active distribution grid

7. Better and more reliable utilization of existing grid

8. Virtual European TSO

9. Advanced simulation and analysis tools and methods

Page 7: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 7

European Electricity & Gas market fully liberalized since July 2007 leading to segments Unbundling

TransmissionMining*Construction*Generation

TraditionalNuclearRenewable

Metering Operations

Distribution Supply & Retailing

Electricity

GasTransportExploration &

Production*Purchasing & Trading*Storage*

Metering Operations

Distribution Supply &Retailing

WaterTransportExploration

PreparationMetering operations

Distribution Supply & Customer Service

Infrastructure Assets Energy services

2 3 4 5 61

to Deregulated

Page 8: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 8

Utilities Privatization requires Peer Financial Performance (con’t)

100120140160180200220240

2000 2001 2002 2003 2004 2005 2006

Operating revenue (2000 = 100)

Gross Profit Margin (%)

Avg from Nuon, Essent, Eneco, Delta, Vattenvall and RWE Delta Industry best

0

5

10

15

20

2000 2001 2002 2003 2004 2005 2006

EBIT Margin (%)

Vattenfall

50

75

100

125

150

175

200

2000 2001 2002 2003 2004 2005 2006

Collection Period (Days Sales Outstanding)

RWE0%

10%

20%

30%

40%

50%

DELTAVatte

nfallEneco

Nuon

RW E

Essent

to Private & European

Page 9: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 9

2005 2007Research

Product Definition Deployment

European Market Harmonization

European IDEX Product Portfolio

European Market Convergence Asymptote

National Law changes

to Private & European

Deregulation National requirements will be harmonized with time and become European

Page 10: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 10

Visionary Danish Energy policy 2025 : 50% Wind electricity (EcoGrid)

to RES & DER

DistributedGeneration :

Requirement for non-discriminatory and fair grid connection rules

Adjustment of active power reserves (balancing markets)

Voltage & reactive power management enhancements

Losses

Page 11: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 11

Evolving to Preventive and Reliability Centered Maintenance (con’t)

to Proactive

Page 12: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 12

Evolution of Asset Management towards ReliabilityCentered and Risk Management per Role

Equipment and Asset Information Mgt; Document Mgt; Inventory Mgt

Maintenance Planning and Execution

Preventive Maintenance and Emergency Repairs

Advanced Procurement and Contractor Management

Advanced Project and Resource Mgt (Shutdown planning)

Conditioned-based Maintenance

Reliability Centered Maintenance

Operational Risk Analysis

Equipment and Asset Information Mgt; Document Mgt; Inventory Mgt

Maintenance Planning and Execution

Preventive Maintenance and Emergency Repairs

Advanced Procurement and Contractor Management

Advanced Project and Resource Mgt (Shutdown planning)

Conditioned-based Maintenance

Reliability Centered Maintenance

Operational Risk Analysis

66

55

77

88

33

11

44

22

65

78

3

1

4

2

Fina

ncia

l Ret

urn

0%

40%

Roadmap EAM

Long-term financial returns increase through the EAM roadmap

6655

7788

33

11

44

22

Fina

ncia

l Ret

urn

0%

40%

Roadmap EAM

Long-term financial returns increase through the EAM roadmap

to Proactive

Role Management, Outsourcing & SLA between :

Asset Owner

Asset Manager

Service Provider

Page 13: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 13

G GGeneration

Transmission

Distribution Demand

Traditional one-way supply system

G

Generation

G

Bi-directional supply system

Supply

Generation

Future requirementsFlexible : user-centric, service oriented & designed for future

Accessible : connect all users

Real Time: Adaptive Demand and Supply

Reliable: security of supply in a digital age

Economic: best value -> innovation, efficiency & competition

SmartGrids 2 ways communication “internet like” (con’t)

to Electronic 2-ways

to Smart internet like

Page 14: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 14

Internet like, Networks will need to “speak” to consumers

to Electronic 2-ways

to Smart internet like

Integration of large scale Distributed Energy Resources and internet like communication

Page 15: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 15

Assets (Grid)

Customer

GeneratorGenerator

Assets (Plant)

TraderTrader

Deregulated Energy MarketSolarEnergy

RetailerRetailer

Retailer

MeterOperator

MC

Call Center, @

CC

CC: Customer Communication MC: Market CommunicationAMI: Advanced Metering Infrastructure

CustomerRelationship

AMI

TechnicalCommunication

Smart Meter

Appliances

P

DSOMC

to DER & Active Market Communication

System Architecture in Deregulated MarketsIndependence of Metering increases complexity

Page 16: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 16

to Smart Meters & AMI

Status on Smart Metering developments in the EU-15 countries (con’t)

Page 17: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 17

North American Smart Metering marketestimated at 1.4 b$ by 2010 grows 19.4% p.a.

Source: Gartner Energy & Utility Industry Advisory Service Project Report, 2006

AMI Total Market Size & Forecast: North America (U.S. & Canada)

to Smart Meters & AMI

Page 18: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 18

Top 7 reasons for Smart Metering(CRE French regulator studies) (con’t)

1. Improved Competition through more competitive tariffs Supplier switch enabled by Smart Metering (50% instead of 5%)

2. Decrease of Non Technical lossesNon Technical Losses avoided (50% instead of 2.5%)

3. Decrease of Residential ConsumptionUp to 5%

4. Peak Shaving avoiding unnecessary investmentsPeak Shaving Consumption Reduction: 1 to 2%

5. Peak Shaving avoiding use of non optimal resourcesPeak Hours per Year: 427 Hours

6. Decrease of CO2 EmissionsCO2 Savings: From 0,5% to 5%

7. Remote Meter CollectionComplaint Reduction due to Smart Metering: From 50 to 75%

to Smart Meters & AMI

Page 19: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 19

ROI Smart Metering : Expected savings(French regulator CRE studies) (con’t)

1. Improved CompetitionExpected Savings when Changing Producer: 5%Percentage of Changes per Year: 4%Percentage of Changes linked to Smart Metering: 50%Average kWh for Residential Customer: 0,1 Euro

2. Decrease of Non Technical Losses. Producer SavingsNon Technical Losses for LV network: 2,5% or 5.2 TWhNon Technical Losses avoided through Smart Metering: 50% or 2.6 TWhProducer kWh Selling Price: 0,078 Euros/kWhProducer Gross Margin: 15%

3. Decrease of Residential ConsumptionResidential Consumption: 150 TWhAverage kWh for Residential Customer: 0,1 EuroEstimated Savings from 0.5% (Pessimistic Case) to 5% (Optimistic Case)

to Smart Meters & AMI

Page 20: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 20

ROI Smart Metering– Demand Side Management (French regulator CRE studies) (con’t)

4. Peak Shaving avoiding unnecessary investmentsResidential Consumption during Peak Load: 56 760 MWInvestment Required per MW

Gaz: 0.5 MEURFuel: 1 MEURCoal: 1.5 MEUR

Peak Shaving Consumption Reduction: 1 to 2%

5. Peak Shaving avoiding use of non optimal resourcesResidential Consumption: 150 TWhPeak Hours per Year: 427 HoursResidential Average Consumption during Peak Load: 50 000 MWSourcing Additional Cost: 70 EUR per MW

to Smart Meters & AMI

Page 21: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 21

ROI Smart Metering(French regulator CRE studies) (con’t)

6. Decrease of CO2 EmissionsAverage CO2 Emission: 669 gCO2/kWhCO2 Cost: 25 Euros/TonShare of CO2 Emission: Gaz 33%, Fuel 33%, Coal 34%CO2 Savings: From 0,5% to 5%

7. Remote Meter CollectionWork Force ReductionCustomer Management

Complaint Handling for Incorrect Collection, Cost per Call: 18.6 EurosComplaint per Year and per Meter: 0.1 for Cyclical Collection, 0.06 perDisconnection, 0.01 per ConnectionComplaint Reduction due to Smart Metering: From 50 to 75%

to Smart Meters & AMI

Page 22: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 22

Technology supporting end-to-end integrated AMI processes enables Real Customer Value Added Services (con’t)

“Smart”Meter

LocalArea

Network(LAN)

Concentrator

WideArea

Network(WAN)

AMIHead End

EndpointDevices

HANHome

AutomationNetwork

+ Meter & Communications Infrastructure+ Meter&Event Data Management= Advanced Metering Infrastructure (AMI)

BillingDeterminantsGeneration

CISCustomer Interface

Demand Response

Mgmt

Outage Mgmt

DistributionPlanning &Operation Load

Forecast &

Settlement

Install.&

Maint.

RevenueProtection

Load Forecasting& Settlement

System

Demand Response

MgmtSystem

Asset Mgmt & Install. Planning; Field Order Mgmt

Systems

GIS; Field Order Mgmt

System

OutageMgmt

System

Meter Data Repository

MDUS *

Marketing&SalesCustomer Service

BillingRetail

ConsumerProducts

SAPUtilities

Extensions “IS-U”

SAP Generic

Applications

Enterprise Management

& Business Support

EnterpriseAsset

Management

CustomerRelationshipManagement

& Billing

EnergyCapital

Management

SAP for UtilitiesBusiness Process Platform

Customer

Internet, CTI, IVR,

Call Center

Meter DataUnification & Synchronizat.

System

Premise EquipmentHome Area Network

Multiple clients read demand and energy data automatically from customer premisesUtility detects tampering or theft at customer siteCustomer reduces demand in response to pricing eventCustomer reads recent energy usage and cost at siteCustomer uses pre-payment servicesDistribution operator curtails customer load for grid managementDistribution operator locates outage using AMI data and restores serviceUtility procures energy and settles wholesale transactions using data from the AMI system

18 Value Added Services (scenarios) enabled by AMI

to Smart Meters & AMI

Page 23: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 23

System Architecture in Deregulated MarketsInteroperability of Systems Through Meter Data Unification & Synchronization (MDUS) and AMI Services (con‘t)

AMIHeadendSystem

AMIHeadendSystem

C

C

C

C

OutageManagement

Realtime ApplicationsDemand Response, Dynamic Pricing,

Distributed Generation

SAPPremise & PoD Mgmt

& Grid Billing

GridManagement

Enterprise Role: Distribution Service Operator

SAP IDEIntercompany

Data Exchange

SA

P E

DM

OtherUtilities

EnergyRetailers

SAPEnterprise Asset

Management

MDUSMeter Data

Unification &Synchronization SAP

Applications onEnergy Capital Mgmt

3rd PartyApplications on

Energy Capital Mgmt

1:1

datatransfer

to Smart Meters & AMI

Page 24: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 24© SAP 2007 / Page 24

AMI (Automated Metering Infrastructure) US Lighthouse project

AM

I Lig

htho

use

Cus

tom

ers

Text

Utility detects tampering or theft at customer site

Contract meter reading for other utilities

Customer has access to and reads recent energy usage and cost at his or her site

External clients use the AMI system to interact with customer devices

WebAnalytics

Distribution operator curtails/limits customer load for grid management

Distribution operators optimize network based on data collected by the AMI system

Customer provides distributed generation

AMI system recovers after power outage, communications or equipment failure

Utility installs, provisions and configures AMI system

Utility manages end-to-end life-cycle of the meter system

Utility upgrades AMI system to address future requirements

Utility remotely limits or connects/disconnects customer

Billing & Customer Service

Customer Interface

Delivery Energy Procurement

Field Service & System Recovery

Installation & Maintenance

Multiple clients read demand and energy data

Real-time operations curtails/limits load for economic dispatch

Customer reduces demand in response to pricing and/or grid

Customer uses prepayment services

Distribution operator locates outage using AMI data and restores service

Utility procures energy and settles wholesale transactions using AMI system data

Text

Text

Text

Text

Text

Source of Use Cases:http://www.sce.com/PowerandEnvironment/smartconnect/TechDevelop

to Smart Meters & AMI

Text

Page 25: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 25

How customer participation will evolve ? (con’t)

Visibility, transparency, customer empowerment, Devices losses, buildings losses, etc

(analytical tools, AMR)

Better real time prices (price signals)(Connected devices, DR, ICT, AMI)

Automatic decision support system(Intelligent automation, benchmarks, forecasting, AMI)

Prosumer & active retailing(bi-directional trade, AMI)

eEnergy(electronic marketplace, virtual …)

… from passitve to active transactions in the marketplace to saveconsumer’s energy and balance load

Stakeholders involved Customer participation aspects

Pan EuropeanEnergy

Data M

anagement

European Union, Governments and Utilities

Consumers acting as Power Suppliers

Suppliers, Consumers, Technology & Service Providers

Retailers to Consumers

Consumers

to Competitive Customer centric

Page 26: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 26

How electronic transactions will evolve in the marketplace ?

…Towards an Electronic European Energy Marketplace (e-Energy)

to Competitive Energy Market

Page 27: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 27

Customers

Retail Operations

Call Center

Sales/Marketing

Active Distribution Networks

Hundreds of customer segments

HQ/Finance

Demand Side

Demandresponse

management

Planning

Electric Production

Large Distributed generation

Distribution

Customer driven markets

E-Energy

Primary resources

Generation

Operations

Transmission

Mi ni and Micro Turbines

Smart AssetsManagement

Value Added Services

Multi-metering

Storage and Demand response

Active Houses

Imptroved power flows

FACTS, WAMS, WAPS

Power

electronics

technology

ICT & embedded systems

Portfolio Management :

Traditional, Nuclear, hydrau, renewables (CO2

redution)

AMI

Tailored tariffs

Flexible contracts

Sensors, monitoring,

RFID

Where Smart R&D and deployment investments are needed (examples) (con’t)

Large deployment of

RES

Page 28: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 28

EU investment needs 2030: 1000 billion

Demand

Growth 2%/year = +1250 TWh by 2030

Generation

Replacement & expansion 900 GW needed by 2030

RES 500 GWpeak needed by 2030

Transmission & Distribution

Ageing assets, expansion and RES+DG integration

500 billion € until 2030 needed

Markets, Regulation and Customer Services

Data + information need > 20 billion € investment

(conservative figure based on 100€ per connection)

Page 29: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 29

Funding options for SmartGrids(con’t)

EC Research & Development funding

- Seventh Framework Programme

- ERA-NET

National Funding opportunities

- Vary according to each Member State (numerous)

Regulator allowances for innovation

- UK; the IFI (innovation funding initiative) and RPZ (registered power zone)

Private Funding options

- industry

Page 30: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 30

Progress to align EU, national and regional research programs

European Technology Platform SmartGrids

ERA-net SmartGrids

- 80% of the public RTD budgets come from these national programmes

- the grid issues have no MS

- grid issues are dealt with, differently in each MS (often limited effort)

- the grid is key (facilitator) to an affordable, reliable and sustainable energy supply

SmartGrids Association

Page 31: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 31

isSmart PowerClean, Distributed

Competitive

isSmart PowerSecured &

Harmonized

isSmart Generation Linked to Demand Side Management

Conclusion

Smart is Customer focused, Collaborative, Real Time, Integrated, Flexible, Service Oriented, Communicating Networks to Customers through interactive Value Added Services

areSmart Assets Decision oriented

isSmart Transmission Bi-communicatingLarge scale acsess

isSmart Transmission Interoperable-Internet

isSmart Distribution Standard Market Communication

areSmart Meters Gateway Customer Communication

isSmart Supply & RetailingCustomers Value Added Services

1

2

3

4

5

6

Electricity & Gas

Generation - Exploration

Transmission

Distribution

Metering Operations

Supply – Retailing

Wha

tis

Smar

t ?

Page 32: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 32

SmartGrids and Smart Metering innovation is a Smart Formula

Page 33: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

Thanks for your attention : Questions ?

[email protected]

Page 34: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 34

BACKUP

BACKUP

Page 35: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 35

Why a European Centre for Electricity Networks?

Existing RTD organizations not designed to manage such complex and intricate RTD pan-European projects

Existing RTD teams need to work together at EU level to satisfy the most urgent pan-European RTD needs

Existing R&D financing models are inappropriate at EC level to address the R&D funding requirement

Heterogeneous legal structures and too restrictive Intellectual Property rights in current proprietary research hamper fast adoption of results in practice

Need to design and fund an ad-hoc European Centre for Electricity Networks(ECEN)

Page 36: The SmartGrids ETP Objectives and Strategies€¦ · VP Utilities industry for EMEA SAP SmartGrids ETP Advisory Council Member, Chairman of « Demand and metering » WG3 Rome,

© SAP 2008 / EMEA Utilities – FP7 IP Address kickoff – Rome on May 29th 2008 - Maher Chebbo Page 36

European Research Projects

P1 Voltage Level as Information Carrier in Smart Distribution Networks

Gunnar Kaestle, Karlsruhe, Germany

P2 Summary poster content IEE RESPOND project

Frits van Oostvoorn, ECN Energy research Centre of the Netherlands, ZG

Petten, The Netherlands

P3 Summary Poster content FP6 SOLID-DER project

Frits van Oostvoorn, ECN Energy research Centre of the Netherlands, ZG

Petten, The Netherlands

P4 REMPLI – Real-time Energy Management via Power Lines and Internet

Dr. Thilo Sauter, Österreichische Akademie, Wiener Neustadt, Austria

P5 Opera 2. PLC for Power Utilities

Javier Simón, Opera Project Iberdrola, Madrid, Spain

P6 Control of variable speed wind turbines for network support

Ramtharan Gnanasambandapillai, The University of Manchester,

Manchester, UK

P7 A Framework for the Study of Multi-Energy Networks

Patrick Favre-Perrod, ETH Zürich, Zürich, Switzerland

P8 R&D for Distributed Power Generation and Smart Grids in Austria

Michael Hübner, BMVIT FFG, Vienna, Austria

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European Research Projects

P9 Islanded Multi-MicroGrids Operation – a Key Issue for the Development

of the SmartGrid Concept

Nuno Gil, ESTG - Inst. Politécnico de Leiria INESC Porto, Campus da FEUP,

Porto Porto, Portugal

P10 The FRIENDS project

Dr. Vlastimir Glamocanin, FEIT, Cyril & Methodius University Center of

Excellence Skopje, Skopje, Macedonia

P11 Integration of combined heat and power micro units into the low voltage

network by using a grid oriented operation mode

Magnus Pielke, TU Braunschweig, Braunschweig, Germany

P12 Implementation of an electronic energy market place –

a cluster approach

Dr. Erlend Randeberg, International Research Institute of Stavanger - IRIS,

Stavanger, Norway

P13 SUSPLAN - Development of regional and Pan-European guidelines for

more efficient integration of renewable energy into future infrastructures

Bjorn Bakken, SINTEF Energy Research, Trondheim, Norway

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European Research Projects

P14 Market Based Demand Response: End User involvement and technology

experiences from Norwegian pilots

Bjorn Bakken, SINTEF Energy Research, Trondheim, Norway

30.10.2007

P15 Medium term Strategic Development of the Gas and Electricity

Infrastructure in the UK

Modassar Chaudry, University of Manchester, Manchester, Great Britain

P16 Assessment of thermodynamic Processes for smal scale caes

Daniel Wolf, Fraunhofer Institut für Umwelt, Sicherheits- und Energietechnik

UMSICHT, Oberhausen, Germany

P17 Advanched Architectures and Control Concepts for More Microgrids

Nickolas Hatziargyriou, PPC Greece & Professor NTUA, Greece

P18 An innovative ICT-infrastructure for intelligent energy nodes in smart

electrical distribution networks

Bernhard Schowe-von der Brelie, Forschungsgemeinschaft für Elektrische

Anlagen und Stromwirtschaft (FGH) e.V., Mannheim, Germany

P19 DENISE Project

Antonio Castellanos, Endesa S.A., Madrid, Spain

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European Research Projects

P20 Voltage Control in MicroGrids

Bieshoy Awad Boutros Awad, University of Manchester, Manchester, Great

Britain

P21 The Concept of Interactive Customer Interface

Pertti Järventausta, Tampere University of Technology, Tampere, Finnland

P22 Improvement of the Social Optimal Outcome of Market Integration of

DG/RES in European Electricity Markets (IMPROGRES)

Martin J. J. Scheepers, ECN Energy research Centre of the Netherlands, ZG

Petten, The Netherlands

P23 Operational control of wind farm clusters for transmission system

operators

Dr. Kurt Rohrig, Institut für Solare Energieversorgungstechnik (ISET) e.V.,

Kassel, Germany

P24 Evaluation of the feasibility of using energy storage technology to

increase the utilisation of existing assets, and to eliminate the

requirement for network reinforcement

Marc Bartlett, PB Power, Manchester, Great Britain

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European Research Projects

P25 The objective of FENIX is to boost DER (Distributed Energy Resources)

by maximizing their contribution to the electric power system, through

aggregation into Large Scale Virtual Power Plants (LSVPP) and

decentralized management

Maria Sebastian-Viana, IDEA - GIE Bat. Ensieg / Leg, Saint Martin d´Hères

cedex, France

P26 Intelligent Power Systems - Research Activities at the Eindhoven

University of Technology -

Dr. Johanna Myrzik, Technische Universität Eindhoven Electrical Power

Systems, Eindhoven, The Netherlands

P27 DIMAT technological capabilities

Miquel Serra, DIMAT (ZIV group), Barcelona, Spain

P28 Wind Power Management System with extended features and new areas

of application

Dr. Kurt Rohrig, Institut für Solare Energieversorgungstechnik (ISET) e.V.,

Kassel, Germany

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European Research Projects

P29 Integration of power market and transmission network analysis for

expansion planning and security assessments

Kjetil Uhlen, SINTEF Energy Research, Trondheim, Norway

P30 Smart Asset Life Management

Christophe Gaudin, Moret sur Loing, France

P31 The potential of heat storage for micro cogeneration

Dr. Marco Bakker, ECN Energy research Centre of the Netherlands, ZG

Petten, The Netherlands

P32 Real-Time Utility Enterprise

Stamatis Karnouskos, SAP AG CEC Karlsruhe, Karlsruhe, Germany

P33 European Network of Excellence of DER Laboratories and Pre-

Standardisation

Dr. Thomas Degner, Institut für Solare Energieversorgungstechnik (ISET) e.V.,

Kassel, Germany

P34 Development of multiprocessor real-time hybrid modelling complex for

fully-variable dynamic simulation of power systems and advanced

operator training simulator

Dr. Alexander Badelin, New Wind s.r.o., Prague, Czech Republic

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European Research Projects

P35 Application of narrow band Power Line Communication technology to

Distribution Automation (DA)

Norberto Santiago, Grupo ZIV MEDIDA, Vizcaya, Spain

P36 Automation Technologies to be applied in the "substation of the future"

Norberto Santiago, Grupo ZIV MEDIDA, Vizcaya, Spain

P37 Creating an intelligent network - Siemens

Sascha Maier da Fonseca, Siemens AG, Power Transmission and

Distribution, Group Communications, Erlangen, Germany

P38 ENARD: International Action in Electricity Networks R&D

John Baker, ENARD, EA Technology, Capenhurst, Chester, UK

P39 ENARD: The IEA Implementing Agreement on Electricity Networks

Analysis, Research and Developement

John Baker, ENARD, EA Technology, Capenhurst, Chester, UK

P40 UK Centre for Sustainable Electricity and Distributed Generation

Dr. Graeme M. Burt, Institute for Energy & Environment, University of

Strathclyde, Glasgow, UK

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European Research Projects

P41 EPSRC SuperGen 3 Highly Distributed Power Systems

Dr. Graeme M. Burt, Institute for Energy & Environment, University of

Strathclyde, Glasgow, UK

P42 Massive DER implementation issues into the existing European grids:

challenges and affordable solutions

Dr. Marc Stubbe, Head of Power Consulting, SUEZ-Tractebel, Brussels,

Belgium

P43 Experimental validation of the large scale aggregation of micro CHP

units in the German electricity system

Dr. Michael Laskowski, RWE Energy AG, Germany

P44 Advanced Power Converter for Universal and Flexible Power

Management in Future Electricity Network

Roger Bassett, AREVA T&D UK Ltd., UK