European regulators views on regulating smart distribution networks
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Authors - Gareth Evans (Ofgem), Riccardo Vailati(AEEG), Karstein Brekke(NVE), Werner Friedl(E-Control), Hugo Schotman( Energiekamer NMa), Matthias Steiner(E-Control), Math Bollen(EI), Tahir Kapetanovic(E-Control), Ferruccio Villa(AEEG)

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European regulators’ views on regulating smart distribution networks

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European regulators views on regulating smart distribution networks

Authors - Gareth Evans (Ofgem), Riccardo Vailati(AEEG), Karstein Brekke(NVE), Werner Friedl(E-Control), Hugo Schotman(EnergiekamerNMa), Matthias Steiner(E-Control), Math Bollen(EI), Tahir Kapetanovic(E-Control), Ferruccio Villa(AEEG)

Presented by Gareth Evans, Head of Profession - Engineering, Ofgem

European regulators’ views on regulating smart distribution networks


European regulators views on regulating smart distribution networks

Presentation – Key Issues

  • Consultation objectives

  • Role of the Regulator

  • Regulatory priorities

  • Conclusions and recommendations

  • Further work

Gareth Evans – GB – Session 6 – Paper ID 0978


European regulators views on regulating smart distribution networks

Consultation objectives

  • Collect the views of all stakeholders to assist regulators in understanding how smart grids can benefit network users

  • Explore ways in which smart grids deployment, where cost effective, can be encouraged

ERGEG “Position Paper on Smart Grids” published 10 June 2010

Gareth Evans – GB – Session 6 – Paper ID 0978


European regulators views on regulating smart distribution networks

Role of the Regulator

  • Technology neutral

  • Smart grids are a means to an end not an end in themselves

  • Better value for customers, including indirect benefits

  • Key facilitator, identifying and removing barriers – finding solutions that balance all stakeholders’ positions

Gareth Evans – GB – Session 6 – Paper ID 0978


European regulators views on regulating smart distribution networks

Regulatory priorities

Three main priorities identified

  • Focus on the performance of network companies in terms of the outputs delivered;

  • Encourage innovation while protecting consumers’ interests; and

  • Encourage co-operation amongst stakeholders, with special care to standardisation and to identify possible barriers to smart grid deployment.

Gareth Evans – GB – Session 6 – Paper ID 0978


Conclusions from the position paper

Conclusions from the Position Paper*

  • Significant challenge

  • Better understanding of smart grids needed

  • Clarity of stakeholder roles/responsibilities

  • Significant number of stakeholders want a step change in activity

  • Attention to encouragement of innovation

  • Focus on regulation of outputs/performance

  • Development of cost/benefit analysis vital

  • Stakeholders co-operate to address barriers

*Summarised text


Recommendations 1

Recommendations* (1)

R-1: Ensure regulatory stability and reasonable rate of return for grid investments

R-2: Consider decoupling between grid operators’ profits and volumes of electricity they deliver

R-3: Pursue regulation of outputs as a mechanism to ensure value for money paid by network users

R-4: Promote improved awareness of consumers about their electricity use and market opportunities and an improved engagement of network operators with their network users

R-5: Encourage deployment of smart grid solutions, where they are cost-efficient and find ways of incentivisinginnovative network solutions where beneficial

*Summarised text


Recommendations 2

Recommendations* (2)

R-6: Evaluate costs and benefits of demonstration projects and to take decisions/provide advice based on societal cost-benefit assessment

R-7: Ensure public dissemination of results/lessons learned from demonstration projects (co-)financed by grid tariffs or from public funds

R-8: Participate in ‘smart grids’ discussions and cooperation activities among stakeholders and especially to achieve interoperability of smart grid devices and systems

R-9: Clarify the difference between regulated grid activities and market opportunities for new services under a competitive regime

R-10: NRAs to continue to exchange expertise at European level, in order to learn as soon as possible from best regulatory practices.

*Summarised text


European regulators views on regulating smart distribution networks

Furtherwork

  • Work is currently underway to collect more detailed views and information from Regulators relating to smart grids

  • A report summarising this process is planned to be published later this year.

Gareth Evans – GB – Session 6 – Paper ID 0978


European regulators views on regulating smart distribution networks

Thank you for your attention

Gareth Evans – GB – Session 6 – Paper ID 0978


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