Roadmap for high RES penetration in Greek Non Interconnected Islands

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Roadmap for high RES penetration in Greek Non Interconnected Islands European Forum on Clean Energy for Islands Prof. Nikos Chatziargyriou Chairman Naxos,9-11 of July 2018

Who we are and what we do 7,000 employees 7,5 million customers Total network length 238,000 HEDNO was established in May 2012 after the spin off of the Distribution Department of PPC S.A. Turnover is 900 million (2017) Average Annual Investment is 190 million (2016-2017) RES capacity: 3,728 plants, 60 ΜW HEDNO is among the 10 largest Electricity Distribution Operators in EU (based on the number of consumers and the total length of its network)

What we do Delivering uninterruptible electricity to 7,47 million consumers across the country through Medium and Low Voltage networks. Managing the High Voltage networks in Attica and the Islands. Our fundamental tasks are to ensure: The efficient Operation, Maintenance & Development of the country s Distribution Network The management of the Non- Interconnected Islands electricity systems Unhindered access to our Network by all energy consumers and dispersed generators Facilitate the smooth operation of electricity supply market

Our vision and strategy Vision Our VISION is to become one of the top 10 Distribution Network Operator in Europe achieving the optimal combination of QUALITY and LOW-COST SERVICES, respecting ENVIRONMENTAL PROTECTION. Investment Plan Vision Investment Plan Our 5 year INVESTMENT PLAN foresees a total budget of 1,2 billion and includes projects for reinforcing and modernizing the Distribution Network with a core of 13 fundamental strategic projects. HEDNO S Strategy Strategies Goal Strategy Our STRATEGY aims to the integration of modern technologies ( Smart Grids, Remote Metering, Remote Services, Automations etc) Goal Our GOAL is to modernize the Distribution Network and transform it into a Smart System that will continually optimize the management of the connected consumers and producers, covering their emerging needs by an optimal techno-economical way.

The road to our digital transformation Monitoring of MV substations and Network 2014 Transforma tion Plan Remote Control GIS planning Customer Service Smart Islands Smart Meters Strategic 13 strategic Projects projects Cyber security 2021 Projects Concluded EV Internet of things Start Ups 2030 Continuing our digital transformation Interactive market Energy comm unities New services Internet of things

HEDNO is the electrical System Operator of the Non Interconnected Islands (NII) Market Operator 60 Islands -32 Electrical Systems They account for almost 14% of total national annual electricity consumption Manager and Operator of Energy Control Centers Distribution System Operator Transmission System Operator

Non Interconnected Islands (NII) structure Host 15% of the Greek population and account for almost 14% of the total national annual electricity consumption (~43,000 GWh/year)* Data based in 2017 32 Electrical Systems (ES) 11 ES consisting of 39 interconnected islands 21 ES consisting of autonomous islands - 31 Isolated Microgrids - 1 Small Isolated System (Crete) Categorized by Average Peak Demand (APD) [last 5 years] Large (APD > 100MW): 2 ES Medium (5MW < APD 100MW): 14 ES Small (APD 5MW): 16 ES

Installed RES in NII 1 Biogas 0.5 MW 5219 PV 162 MW (4779 MW) (485 MW) (1845 MW) (485 MW) 1 Small Hydro 0.3 MW 97 Wind Parks 322 MW 8

NIIs within HEDNO s transformation BEFORE Power plant Transmission Distribution Adaptation to the upcoming challenges of HEDNO s role as NIIs Electrical System Operator (ESO). Power plant NOW Transmission Wind integration Distribution PV integration Active network management Energy storage EV charging Demand side participation

HEDNO s major goals in the NIIs Adopting an economic and an environmental approach of operation and management of NIIPS, that guarantees the secure operation of the systems Compliance with Domestic and EU Guidelines and Regulations Reduction of CO2 emissions of thermal power stations Minimization of operational cost of thermal units. Increase of RES penetration.

HEDNO s major challenges in NIIs Islands of different size, population and distance from the Mainland, without easy access at any time especially by the sea Isolated ES, without energy exchange ability, with direct effects on ensuring the availability of energy supply Due to lack of interconnections with electrical systems of high inertia, NIIs ES face problems of voltage and frequency stability

HEDNO s major challenges in the NIIs High fluctuations of demand on daily and monthly basis. Difficulties in Generation Planning, possible need for capacity assurance mechanisms Monthly Load 2015 2016(Aug) of NIIPS

HEDNO s major challenges in the NIIs Common characteristic of all NIIs is the seasonal peak demand due to tourism. Need to operate with excessive thermal capacity installed throughout the year and in some cases to add emergency power capacity in order to meet peak demand. Large ES: Crete (2015-2016) Small ES: Astypalea (2015-2016)

( /MWh) HEDNO s major challenges in the NIIs 400,0 350,0 Data based in 2017 Average Variable Cost (AVC) substantially higher (up to 6 times) than the average System Margin Price (SMP) of the mainland Grid 300,0 250,0 200,0 150,0 100,0 50,0 0,0 124,51 54,68 Weighted AVC of ES ( /MWh) Weighted AVC of NIIPS ( /MWh) SMP ( /MWh)

Interconnection of ES-NIIs to the Mainland HEDNO in cooperation with ADMIE (IPTO) and RAE is conducting feasibility studies for the interconnections of the NIIS to the mainland aiming at reducing the operational cost and increasing RES penetration In progress Cyclades Interconnection in 3 phases Crete 2 Interconnections in 2020 and 2022

NIIs within Strategic Projects HEDNO s Core Infrastructure HEDNO s Core Infrastructure Modernize Network Control Centers Further implementation of Smart Metering Set up Geographic Information System (GIS) Set up electronic Customer Service System (Call Centers) Upgrade Network Planning Re-organize Supply Chain Integrated System for Digitalization and Data Management 16

Roadmap for NIIs 2021 HEDNO s Core Infrastructure NII s Infrastructure Methodological Infrastructure Metering Infrastructure for generation units NIIs Infrastructure (2 projects) Energy Control Centers (ECC) Development of the IT System for NII Implementation of pilot Smart Islands (tender 2018) European Forum on Clean Energy for Islands 17

Energy Control Centers Projects in Progress Tender for the implementation of central ECC (Athens) and local ECC (Rhodes) Implementation of SCADA-EMS in 27 ES Benefits ES operation optimization and cost reduction Increase of RES penetration Facilitate market operation with more transparency

Energy Control Centers (ECC) Central ECC (Athens) MMS Load/RES forecasting RDAS DS Corporate Infrastructure: (IMS, Data Warehouse, Helpdesk) Local ECCs MMS (Backup) EMS (Real-time dispatch) Rhodes

Smart metering in NIIs Smart Metering in NIIs Smart Metering in Production Units All RES units (except PVs) metering Completed Thermal units metering Under Progress Smart Metering in Customers MV and large LV customers metering Completed All LV customers metering On-going, Business Model

Roadmap Thinking ahead 2030 Thinking Ahead NII s Infrastructure Implementation of storage HEDNO s Core Infrastructure Deploying and effectively managing dispatchable RES Demand side management Innovative solutions for very small NIIPS European Forum on Clean Energy for Islands

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