Smart Electricity Grid Security and Interoperability Gianluca Fulli - 25/10/16, Rome

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1 Smart Electricity Grid Security and Interoperability Gianluca Fulli - 25/10/16, Rome

2 The five dimensions of the Energy Union Including a New deal for consumers based on: Market reform Access to information Consumer choices Interoperability 2

3 JRC smart electricity systems & interoperability Assess BENCHMARKING SMART-METERING DEPLOYMENT GUIDELINES FOR SMART GRID COST- BENEFIT ANALYSIS Simulate and Test RENEWABLES INTEGRATION AND SECURITY STUDIES INTEROPERABILITY TESTING AND REAL TIME SIMULATION Observe SMART GRID LABS INVENTORY SMART GRID PROJECT OUTLOOK ses.jrc.ec.europa.eu 3

4 How consumers get electricity today 4

5 How a smart grid might look like Key challenges: integration and interoperability of components, information, systems and applications

6 Member States target different smart grids applications: Demand response Smart network mgmt Distr. gen. & storage Large scale RES Others DG JRC, 2016 provisional

7 Smart grid investment: more than 5 B over last decade (excl. smart meters) DE, UK, FR top smart grid investors ( 2.3 B) But SI, DK lead investments per capita or consumed energy DG JRC, 2016 provisional

8 Projects' stage of development Almost thousand projects: 58% R&D Budget: 65 % Demonstration Smart Network Management, Demand Side Management: leading applications DG JRC, 2016 provisional

9 Large-scale roll-out plans of electricity smart meters by 2020: 195 million meters, 35 B ~ 72% EU consumers 22 Cost-Benefit Analyses, 17 Member States DG ENER, JRC, 2014

10 Electricity security as multi-faceted problem: scales, threats, dimensions, Geopolitical dimension Market and regulation dimension Source dimension VERY LONG- TERM (up to decades) LONG-TERM (up to years) Infrastructure dimension Scarcity of backup capacity, Nuclear energy phase-out, MID-TERM (up to days/weeks) SHORT-TERM (up to seconds/mins) Short circuits, unplanned outages,.. Cyber attack to control centre, Unplanned reverse power flows,.. Threats: natural, accidental, malicious, system Fulli PhD work

11 Smart grid information/cyber security standardisation initiative Standards key to develop and integrate information security into smart grids Risk management for technical, process and people viewpoints Privacy concerns (misuse of remote functionality or private data) and interoperability? 11

12 Why do we test interoperability? Standards: might feature overlapping, interrelated requirements and options Technologies/functionalities might be incompatible (esp. at their interfaces) Regulatory issues might prevent functions and interface implementations Few standards have been tested against interoperability European Interoperability Centre for Electric Vehicles & Smart Grids 12

13 Smart grid interoperability - International Lab Cooperation EU Smart Grid Interopera bility Lab Aachen University POLITO DENERG Power Systems Engineering Centre EV-Smart Grid IOP Centre 13

14 Who is investing in smart grids? DSOs top investors Research & academia active in more projects Emerging actors and ICT platforms for flexibility and demand response (e.g. municipalities, housing associations) DG JRC, 2016 provisional 14

15 Smart grid projects Italy (budget-organisations) DG JRC, 2016 provisional

16 Funding sources Private resource and tariffs main source: 45% EC funding: 25% In all countries, public support (EU and national) still key for smart grid investments DG JRC, 2016 provisional

17 EU funding instruments ( ) CP - Cohesion Policy, aiming at 'economic, social and territorial cohesion' and 'reducing disparities - 3 funds: European Regional Development Fund (ERDF) European Social Fund (ESF) Cohesion Fund (CF) CEF - Connecting Europe Facility, trans-european infrastructure of highest European added value EFSI - European Fund for Strategic Investments, Mobilising private financing for strategic investments (RES, infra, ) Horizon 2020, 17

18 JRC support to Cohesion Policy through smart specialisation Smart specialisation: precondition ('ex-ante conditionality') for Cohesion Policy funding Smart specialisation Energy priority JRC helping answering questions: What my region/country is best at? How to be competitive using our strengths? Can efforts of regions/countries be combined? Bottom-up participatory process rather than topdown approach 'Entrepreneurial discovery' with all relevant stakeholders 18

19 JRC support to Connecting Europe Facility via Projects of Common Interest Smart grids (distribution-transmission): JRC proposing the reference methodology (costbenefit analysis) to assess smart grids Projects of Common Interest Trans-European energy infrastructure (transmission): JRC supporting the EC regional groups in assessing and ranking transmission Projects Of Common Interest 19

20 Final messages EU leader in smart grid investments but non-eu economies catching up Selecting and updating security standards and measures crucial for European smart grid reliability Smart grid will only work if all conditions are right (technology, regulation, consumers, business value, etc) Need to investigate and test systemic integration of different solutions under real-life conditions and their interaction with end-users (interoperability) Funding key to support the smart grid R&D and demonstration activities 20

21 Gianluca FULLI

22 Areas of work Microgrids & Distributed Energy Resources Advanced Metering Infrastructure e-mobility Grid Management & Automation Smart Home Demand Response 22

23 Ispra Smart Grid Interoperability Laboratory Energy Recovery System 160kW ICT infrastructure Power Amplifier 90 kva Smart Meters IEDs, protection, automation PV 60kW/10kW BSS 225kW/75kW Communications & control RTS Charging station 22kW/60kW EVs 23

24 Specific regions/cities are investing more in smart grids R&D and pilots Local circumstances and features steer investments DG JRC, 2016 provisional 24

25 Cohesion Policy Based on EU Treaty and aiming at 'economic, social and territorial cohesion' and 'reducing disparities' Major reform for the period and alignment with Europe 2020 goals Three funds: European Regional Development Fund (ERDF) European Social Fund (ESF) Cohesion Fund (CF) Total of 352 billion over concentrated in less developed regions DG REGIO 25

26 European Regional Development Fund - Thematic Objectives inclusive sustainable smart 1. Research and innovation 2. Information and Communication Technologies 3. Competitiveness of Small and Medium-Sized Enterprises 4. Shift to a low-carbon economy 5. Climate change adaptation and risk management & prevention 6. Environmental protection and resource efficiency 7. Sustainable transport and removal of key bottlenecks 8. Employment and support for labour mobility 9. Social inclusion and poverty reduction 10. Education, skills and lifelong learning 11. Increased institutional capacity and effectiveness of public administration DG REGIO 26

27 Cohesion Policy How it works Commission and Member States agree on Partnership Agreements at national level and Operational Programmes (OPs) - targeting specific Thematic Objectives - at national/regional level. Programmes managed by Managing Authorities at national/regional level. EU funds always complemented by public or private funding national, regional level or EIB. Member States alone select and implement projects in line with priorities of the OPs (principle of 'shared management') but for major projects. Monitoring Committees (MCs) monitors implementation of OPs, Commission participates in advisory capacity. DG REGIO 27

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