Rolands Irklis, Chairman Public Utilities Commission, Latvia
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1 The energy customer: The Changing Energy Market and its Regulations (Prosumers, End user Pricing, Changing Role of the DSOs) www. erranet.org Rolands Irklis, Chairman Public Utilities Commission, Latvia
2 Panelists Ilka Lewington, Principal Consultant, DNV GL Energy, Germany Ion Lungu, Chairman, Romanian Electricity Supplier s Association, Romania Zoltán Nagy, Energy Manager, Middle East and Central- & Eastern- Europe at Linde Group, Hungary Ellen Nowak, Second Vice President, National Association of Regulatory Utility Commissioners (NARUC);Chairperson, Wisconsin Public Service Commission, the USA Hando Sutter, CEO, Eesti Energia, Estonia September 25-26, 2017 Astana, Kazakhstan 2
3 Major trends changing the Energy Industry September 25-26, 2017 Astana, Kazakhstan 3
4 Major trends changing the Energy Industry Environment Technology Customer Increasing legislative pressure on nonrenewable energy Challenging waste targets Increasing production cost Challenging waste targets Rise of cyber-threats and terrorism (Industrial) Internet of Things Smart Grids and Smart Metering Micro- and local energy generation Micro- Innovations and local energy in generation renewable tech Big data & analytics Values freedom of choice Is online, mobile, connected Expects customized/ personalized service Consumers > prosumers Expects synergies between different products September 25-26, 2017 Astana, Kazakhstan 4
5 Renewables integration September 25-26, 2017 Astana, Kazakhstan 5
6 Renewables integration in the market Flexibility as a key flexible generation, storage, demand response, interconnection and balancing Traditional High RES September 25-26, 2017 Astana, Kazakhstan 6
7 Role of users September 25-26, 2017 Astana, Kazakhstan 7
8 Users in the energy market 94 million (33%) electricity consumers out of 283 million in the EU have smart metres* The goal to be reached by 2020 deployment of smart metres for almost 72% of European electricity consumers Mass deployment of smart metres in Western EU countries (Italy, Sweden, Denmark front runners) *EU 28 + Montenegro, Serbia, year 2016 September 25-26, 2017 Astana, Kazakhstan 8
9 EUR Costs and benefits for smart metering point implementation SK DK PL LU SE NL AT IE IT PT EE GR UK LV DE LT RO September 25-26, 2017 Astana, Kazakhstan Source (2014) 9
10 New technologies September 25-26, 2017 Astana, Kazakhstan 10
11 New technologies E vehicles Batteries Micro and local generation Innovations on renewable technology Digital solutions virtual power plants September 25-26, 2017 Astana, Kazakhstan 11
12 Opportunities for prosumers Average battery pack price $ per kwh Installation costs and solar module price, $/W Source: MxKinsey &Company, 2017 Electrifying insights: How automakers can drive electrified vehicle sales and profitability Source: International Ltd: Is solar power cheaper than coal? 02 August, 2017 September 25-26, 2017 Astana, Kazakhstan 12
13 More questions than answers? Let s find them out together September 25-26, 2017 Astana, Kazakhstan 13
14 Question 1 Who should take the action for the energy market digitalization? DSOs, regulators, suppliers, consumers? September 25-26, 2017 Astana, Kazakhstan 14
15 Question 2 What tariff structure should be designed to cover costs for innovative and intelligent technologies, keeping the tariff design fair to all consumers? How has each country handled reverse electricity flows and what changes have you made with respect to tariffs? September 25-26, 2017 Astana, Kazakhstan 15
16 Question 3 How costs can be compensated for prosumers for their produced energy from renewables? Fixed purchased price or market price + the premium (subsidies)? Is the net-metering system sustainable? September 25-26, 2017 Astana, Kazakhstan 16
17 Question 4 Who might be prosumers? Only those who produce energy from renewables or other technologies micro-chp, batteries? Do criteria need to be developed to set the status prosumer? September 25-26, 2017 Astana, Kazakhstan 17
18 Question 5 The significance of energy market openness during the time of new technologies development. Does the regulated price in the retail market can have an impact on the entry of new technologies into the market? September 25-26, 2017 Astana, Kazakhstan 18
19 Question 6 What is the role of regulators in the changing energy market? Regulatory tasks rules for the grid access, licensing and monitoring the market of renewables? September 25-26, 2017 Astana, Kazakhstan 19
20 Question 7 How will the electromobility make an influence for the grid? How do DSOs need to plan their future growth based on the development of electromobility? The rise of electric cars Source: Tom Randal, Here s How Electric Cars will cause the next oil crisis, 25th February, 2016 September 25-26, 2017 Astana, Kazakhstan 20
21 Question 8 Any experience with an energy storage in your country? September 25-26, 2017 Astana, Kazakhstan 21
22 Question 9 Should prosumers or DSOs handle the issue by making development of isolated grid systems? Should the isolated grid be regulated? September 25-26, 2017 Astana, Kazakhstan 22
23 THANK YOU FOR YOUR ATTENTION! Rolands Irklis, Public Utilities Commission of Latvia W Web: www. erranet.org 23
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