SMART GRIDS, THE FUTURE OF DISTRIBUTION POWER NETWORK

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SMART GRIDS, THE FUTURE OF DISTRIBUTION POWER NETWORK François HENIMANN on behalf of EDF International Networks CICED 2014 23rd September 2014 - Shenzhen

AGENDA 1. INTRODUCTION 2. TRADITIONAL DISTRIBUTION NETWORKS 3. 21ND CENTURY : A NEW CONTEXT WITH GREAT IMPACT ON ELECTRICAL POWER SYSTEM AND DISTRIBUTION SYSTEM OPERATORS 4. SMART GRIDS AS THE FUTURE : REVOLUTION OR EVOLUTION? 5. THE EDF GROUP s INTRODUCTION OF SMART GRIDS IN FRANCE, WITHIN A EUROPEAN CONTEXT 6. CONCLUSION EDF International Networks 09/2014 2

TRADITIONAL DISTRIBUTION NETWORKS Traditionnally, the role of distribution networks was to transfer the electricity delivered by large power plants trough transmission network to end users, Design kept as simple as possible, on a «fit and forget» principle, in order to get robustness and reliability, Lifespan of networks reach currently 30 40 years, with new electrical equipment introduced cautiously to avoid generic defects and very few electronical devices, apart from primary substations, Since 1980 1990, to improve quality and reduce the time of outages, new functions and equipment have been developped, such as MV remotely controlled switchs and Supervisory Control and Data Acquisition (SCADA) But the low voltage (LV) network remains dumb and unmonitored (some exceptions, like the 175 Hz system implemented in France to remotely control 12 million water heaters and public lightning) Distribution companies called «Distribution Network Operators» (DNOs) EDF International Networks 09/2014 3.

21 ND CENTURY : A NEW CONTEXT WITH GREAT IMPACT ON ELECTRICAL POWER SYSTEM AND DNOs QUALITY AND RELIABILITY NEEDS FOR ELECTRICITY POWER ARE INCREASING Because of more and more urbanized life, development of industrial electrical process, and emergence of «communication society» (internet, ) LIBERALIZATION OF ELECTRICITY MARKETS Distribution companies, legally unbundled, get a new role to allow the competition electrical market to work effectively : that leads to a much more complex system to be managed. WORLD-WIDE ENERGY AND ENVIRONMENTAL CHALLENGE Ambitious targets for CO2 emissions reduction, renewable energy sources and energy savings To achieve CO2 emissions and renewable targets, the electrical system and the distribution network will have to : cope with a huge development of distributed generation with renewable energy sources cope with a development of new uses of electricity, like heat pumps and electrical vehicles actively manage a peak shaving process Distribution system will also have to foster consumers to optimize their energy consumption (see illustration on Fig 1) SMART GRIDS : SOLUTION FOR DISTRIBUTION SYSTEM TO MEET THESE CHALLENGES Fortunately, these needs are coming when new information and communication technologies (NICT) become available, allowing the distribution grid management to be smart and DNOs to become DSOs. There is no doubt that distributors will have to develop smart grids, but conditions have to be met. EDF International Networks 09/2014 4

FIG 1 : TRIGGERING ELECTRICAL USES FROM INFORMATION DELIVERED BY SMART METERS «smart home» with energetic system global optimisation, according to present and future tariff, intelligence of electrical devices, weather, local generation, EDF International Networks Titre de la présentation 04/2014 5

SMART GRIDS AS THE FUTURE : REVOLUTION OR EVOLUTION? A technological revolution, but time needed to integrate it into the existing network system : NICT with short lifespan to be integrated into heavy existing equipment with long lifespan (> 30 years) Huge investments required : estimated 40 billion euros per year worldwide during 15 to 20 years (200 to 300 per delivery point, out of this more than 50 % for smart meters), Market conditions, legislation and regulation must be in place before commitment to invest Several conditions have to be met, before to engage a complete roll out : Mature and proven technologies available. Sufficient standardization, to achieve interoperability and economies of scale. Find the way to make secure the big data transmission and management. For each use case, prove of benefits for all stakeholders, plus acceptable cost / benefit ratio Find effective business models, plus adapted regulation in order to get commitment to invest. Need to train DSO employees, as smart grid evolution is a business transformation that affects all parts of a distribution company. An efficient roadmap to implement smart grids in a country would be : Launch demonstrators and industrial pilots in parnership with various stakeholders, including customers Use synthesis of results obtained from these experiments to get a shared vision of the future system design EDF International Networks 09/2014 6

THE EDF GROUP s INTRODUCTION OF SMART GRIDS IN FRANCE, WITHIN A EUROPEAN CONTEXT ERDF has implemented in field advanced remote controlled operation functions, including self healing functions on Medium Voltage grid (see Fig 2) : Since 2006, ERDF has also been developing an AMM implementation project (the Linky project, see Fig 3) : 280.000 meters deployed in 2010 2011 in a rural area and an urban area (Lyon), Deployment process a success, and economic assumptions confirmed Architecture upgradable and interoperable with products of several manufacturers Next step : 3 million meters to be deployed in 2015 2016, with development of final information system, improved functionalities, and a new generation of Power Line Carrier (G3 PLC) Since 2012, ERDF have been testing smart grids solutions in partnership with more than 100 partners and pilots 18 demonstrators, including one European, GRID4EU (see Fig 4 to 7) : Most smart grids functionalities are being tested through French and European demonstrators The results will be available in 2016-2017, in order to shape the future distribution grids design Industrial pilot of above design in an area where Linky meters already deployed (100,000 to 200,000 meters) EDF International Networks 09/2014 7

FIG 2 : A MEDIUM VOLTAGE GRIDS THAT IS ALREADY «SMART» EDF International Networks 09/2014 8

FIG 3 : THE LINKY PROJECT ARCHITECTURE EDF International Networks 09/2014 9

FIG 4 : ERDF AT THE HEART OF DEMONSTRATORS EDF International Networks Titre de la présentation 09/2014 10

FIG 5 :PARTNERS OF ERDF IN FRENCH DEMONSTRATORS EDF International Networks 09/2014 11

FIG 6 : ERDF COORDINATES AN EUROPEAN PROJECT EDF International Networks 09/2014 12

FIG 7 : MOST SMART FUNCTIONALITIES ARE COVERED TROUGH FRENCH AND EUROPEAN DEMONSTRATORS (1) Following the EPRI approach (Intelligrid method) the demonstrators are cross checked with a list of smart grids functionalities. Comprehensive coverage of Functionalities as well as of most of the technical objects EDF International Networks 09/2014 13

FIG 7 : MOST SMART FUNCTIONALITIES ARE COVERED TROUGH FRENCH AND EUROPEAN DEMONSTRATORS (2) EDF International Networks 09/2014 14

CONCLUSION Traditional distribution networks were dumb, and had the only role to distribute electricity from centralized power generation plants through transmission network to connected customers. Until now, 21st century creates a new context with great impact on electrical power system, such increasing needs for quality and reliability of electricity power, liberalization of the electricity markets, and, last but not the least, worldwide energy and environmental challenge. Fortunately, to enable these challenges to be met, new information and communication technologies becomes available, which will allow the implementation of smart grids and the transformation of DNOs into «Distribution System Operators (DSO s). There is no doubt that distributors will have to develop smart grids, but the implementation of smart grids has to be progressive, and certain technical, commercial and regulatory conditions have to be met. Customer involvement in the process is essential. EDF Group deploys smart meters industrial pilot and is involved in18 smart grids demonstrators in partnership with many different players to make smart grids a reality in France. EDF International Networks 09/2014 15

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