The Regolatory framework for Smart Grids in Italy

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Insieme per crescere

Infrastruttura di rete e smart grid in ItaliaTorre Intesa San Paolo, Torino

26 maggio 2016

The regulatory framework for the implementation of smart grids in ItalySvenja Bartels, Rechtsanwältin and Avvocato

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03

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02 State of the Art: Energy Efficiency

State of the Art: RES

State of the Art: Personal consumption (grid-connect ed)

04

05 State of the Art: Smart Grids

06 The future of smart grids in Italy

Summary

04 State of the Art: System security

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1. State of the art: RES

New decree with incentives for RES will be issued in a few days (all kinds of RES except for pv)

The incentives scheme is similar to the one in force and will apply until 31.12.2016/2017 forhydropower

Plants located in other EU countries can paritcipate in tariff-auctions

Focus on hydropower plants, biomass and thermodynamic solar plants, in general incentives aregiven rather for mini- or microgeneration and distributed generation will keep growing

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2. State of the Art: Energy Efficiency

Energy efficiency

Private Sector

Energy Service

Companies(ESCo)

Public administrations

Associationsof RES

producers

GSE

Associations

Industry

ENEA

Apartmentblockowners

Energy Manager

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2. State of the Art: Energy Efficiency

EE is subsidized with several measures:

• Mainly for energy efficiency improvements in existing buildingHeating account (Conto termico)

• Mainly for energy efficiency restructuring of existing buildingsTax reductions (Detrazioni fiscali)

• Tradable titles issued on the basis of primary energy savingsWhite certificates (Certificati Bianchi)

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3. State of the Art: Personal Consumption (grid-connected)

Energy supplier

HeatSelfproduction with cogeneration plant :

Remaining energy: Feed-in into the grid

Energy exceeding consumptionFeed-into the grid

Energy supply (if necessary)

Energy selfproduction

© SMA

© SMA

Energy selfproduction

Sistemi efficienti di utenza - SEU

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3. State of the Art: Sistemi Efficienti di Utenza (SEU) 2016

Power plant “A”

IMPIANTO DI CONSUMO 1

Power plant “B”

Power plant “C”

One producer manages:

IMPIANTO DI CONSUMO 2

Single finalcustomer

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3. State of the Art: RES and personal consumption

• In 2015 more than 20.000 requests for personal consumption• RES still growing, national target 20% RES by 2020

Source: GSE Report 2015

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4. RES and System Security

2006-2014: Huge increase of RES production in ItalyJeopardizes system security

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4. Measures to preserve System Security

Since 2015, all Medium Voltage Plants can be disconnected remotely through a simple but secure SMS-based device at the TSOs request

One of the goals outlined in a document for public consultation is to reduce disconnectionorders improving the observability

A wind energy plant can apply for an indemnification in case of disconnection ordered by TERNA (MPE, Mancata Produzione Eolica)

Strategic Plan 2015-2017: New rules for the balancing of the system, for those users thatcontribute to the stability of the system

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5. State of the Art: smart grids

There is no specific and complete regulation by AEEGSI related to smart grids, but only regulation limited to some aspects

Smart metering(now 2.0) Storage

Pilot project of single smart grids, selected

by AEEGSI and subsidised

In the near future there will be a more substantial regulation of smart grids

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5.1 Smart metering 2.0

European definition of “smart metering system” (DIR 2012/27/UE (EE Directive)

• “smart metering system” means an electronic system that can measure energy consumption, providing further information than a conventional meter, and can transmit and receive data using sort of electronic communication

Implementation in Italy: Art. 9 co. 3 D.Lgs. 102/2014 and Min. Dec. 24.03.15

• Smart metering as energy efficiency measure• Duty to periodically check the status of the meters

Incentives: AEEGSI decision 87/2016

• Foresees the implementation of incentives for the replacement of meters• Still some unanswered questions: who will be the beneficiary? How will the

incentives be granted?

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5.2 Storage

• AEEGSI decisions 574/2014, 642/2014, 360/2015• Determine the method of connection to the grid in medium

and low voltage, the performance characteristics and the fields of application of electrochemical storage systems, also combined with power generation plants from renewable sources (especially PV)

Storage systems are

regulated

• Tax deductions for new or old storage systems of PV systems in deduction regime (50%, 20 kWp, max € 96,000)

• For energy withdrawals related to ancillary services such as storage systems or pumping systems – limited to the energy needed for their operation (max 10% of total energy used) -no transmission fee, nor distribution fee, nor the system charges (oneri generali di sistema)

Storage systems are subsidized

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5.3 Smart Grid Pilot Projects in Italy

Experimental Projects selected by AEEGSI in 2011

Incentives until 31.12.2015

Pilot Projects

A.S.SE.M. S.p.A.

A2A Reti elettriche S.p.A. (Gavardo BS)

A2A Reti elettriche S.p.A. (Lambrate MI)

ACEA Distribuzione S.p.A.

ASM Terni S.p.A.

DEVAL S.p.A.

ENEL Distribuzione S.p.A.(Carpinone IS)

More info: http://www.grid4eu.eu/

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5.3 Smart Grid Pilot Projects in Italy

Experimental Projects selected by AEEGSI in 2011

The incentives lasted until 31.12.2015

Pilot Projects

A.S.SE.M. S.p.A.

A2A Reti elettriche S.p.A. (Gavardo BS)

A2A Reti elettriche S.p.A. (Lambrate MI)

ACEA Distribuzione S.p.A.

ASM Terni S.p.A.

DEVAL S.p.A.

ENEL Distribuzione S.p.A.(Carpinone IS)

Medium voltage line with automation

Monitoring of the low and medium voltage grid

New criteria of management of the medium voltage grid

e-car & storage

Detailed analisis of primary cabins

Exact position of transitionproblems can be found

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6. The future of smart grids in Italy

The Pilot Projects outcome was analyzed by AEEGSI, who issued a document for public consultation (DCO 255/2015) with several opinions and thoughts about the future regulation of smart grid in Italy.

Shortly after, AEEGSI issued another document for public consultation (DCO 416/2015) and outlined the future regulation and proposals concerning smart metering.

Let’s have a look…

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6.1 The future of smart grids in Italy

Smart grids Smart Distribution Systems

system = grid system= grid + enabled users

• users of the grid that are part of a communication link capable of exchanging information/useful messages to coordinate their behavior and actions according to the needs of the network and/or system

Enabledusers

From “Smart Grids” to “Smart Distribution Systems”

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6.1 The future of smart grid in Italy

Outlook for 2016:• The liberalization of the energy markets affects also the metering: there

shall not be a monopoly in the counter’s market• Final implementation of a competitive smart metering system also for the

gas market

Smart metering 2.0: what’s next?

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6.2 The future of smart grid: incentives


Introduction of an output based incentive mechanism (instead of an input-based): quality instead of simple renewalclear calculation method needs to be definedthe baseline has to be determined

The incentive should pay the result achieved in terms of improved network performance, with a bonus-malus system (for the first 3 years of operation of the incentive mechanism, AEEGSI suggests to exclude any malus)

At least in a first phase AEEGSI suggests to use a selective approach instead of a reference baseline: in other words, to identify the "areas" towards which the new investment shall be made (e.g. voltage regulation of the HT grid)

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6.2 The future of smart grid: incentives


The Authority describes only one possible concrete scenario

• Energy distribution companiesBeneficiaries

• Euro/MW di generazione da fonti rinnovabili nonprogrammabili distribuita sottesa alla cabina primaria per lafunzionalità di osservabilità ./. Euro/MW Erzeugung aus nichtplanbaren Erneuerbaren Energien, die nicht zumUmspannwerk gelangen, weil die „Überwachung“ erfolgt

• Euro/MW per di trasformazione primaria per la regolazione ditensione sulle reti MT ./. Euro/MW für die primäreUmwandlung zur Regelung der Spannung desMittelspannungsnetzes

Calculation method

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Your Contact

Rödl & Partner PaduaVia F. Rismondo, 2/EI-35131 PaduaTel.: +39 (049) 80 46 911Fax: +39 (049) 80 46 [email protected]

Svenja BartelsAttorney-at-LawPartner

Areas of practice: M&A, Energy Law, Real Estate, legal aspectswith regard to renewable energy and energy efficiency projects

Education and professional background: Svenja Bartelsstudied Law in Germany, in Switzerland and attended theUniversity of Administrative Sciences in Speyer. She is member ofthe Düsseldorf and Milan Bar.

After practicing for some years in an international law firm in Milan,she joined Rödl & Partner in Padua in 2005 and is partner since2010. She has developed wide experience in advising foreigninvestors, banks and investment funds for investments in Italy andprimarily advises companies which operate in the field of energy,renewable energy and energy efficiency with regard to projectdevelopment, execution, financing and all regulatory aspects ofsuch projects.

Svenja Bartels is speaker in many international conferencesconcerning renewable energy

Languages: German, English, Italian.

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The Regolatory framework for Smart Grids in Italy

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