Jean-Baptiste GALLAND, the Director Strategy at ERDF, concluded the morning with a lecture about Smart Grids and local production, by exposing the associated challenges and the ERDF Smart Grid projects to prepare the future.

1. Smart Grids, customers at the heart of tomorrows network
Smart Grids and local generation
Jean-Baptiste Galland, Director Strategy
22nd October 2013 | SFEN - Paris
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2. France : Electricity market is open since 2007
deregulated
> 10 suppliers:
EDF, GDF Suez,
E-on, Poweo, …
RTE
Generation
Transmission
regulated
Mainly ERDF
(+ 157 locals)
Distribution
Contracts with local authorities :
IIII Connect end-users to the network
deregulated
EDF, GDF Suez,
Direct Energie,
Poweo… (19)
Supply
& Trading
IIII Design and build electrical distribution
networks
IIII Operate and maintain network
IIII Provide services to customers or
35 000 000 customers
250.000 producers
suppliers : meter reading, connection to network..
IIII Control electric flows for the market :
security of supply, losses procurement
22nd October 2013 | SFEN - Paris

3. ERDF 2012
employees
Turnover
13,3 Mds€
35 711
Concession contracts
762
Field interventions
11 millions
1.3 million
1 047 local sites
km of LV and MV network
Outage duration
Staff hiring
2145
22nd October 2013 | SFEN - Paris
71 mn
Investment
3 069 M€
3

4. Quality: significant improvement for the last 20 years
300
mn
Primary substations
(HV/MV)
2,200
The System Average Interruption
Duration Index (SAIDI) is commonly
used as a reliability indicator by electric
power utilities. SAIDI is the average
outage duration for each customer
served, and is calculated as:
30 Control room
24/24
Medium voltage
604,000 km
(41% underground)
105,000 remote
controlled devices
105,000 remote
controlled devices
SAIDI
SAIDI is measured in units of time, often minutes or
hours. It is usually measured over the course of a year,
and according to IEEE Standard 1366-1998 the median
value for North American utilities is approximately 1.50
hours
22nd October 2013 | SFEN - Paris
73
mn

5. KPMG barometer
continents rank
According to KPMG, France is ranking 1st for quality and availability of
electricity
Rank
22nd October 2013 | SFEN - Paris
Note (100)
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6. France to the year 2030
A wide range of scenarios (IEA, EC,
UFE...)
97,0 GW
100,0 GW
90,0 GW
83,0 GW
80,0 GW
Relative prices of energy
70,0 GW 64,7 GW
70,0 GW
66,3 GW
59,0 GW
60,0 GW
Electrical energy mix
50,0 GW
Gains made by energy efficiency
measures
40,0 GW
Penetration of new uses
30,0 GW
41,2 GW
40,7 GW GW
39,0
21,0 GW
Nuclear
Nucléaire
Renouvelable
Renewable
Thermique
Thermal
23,0 GW
15,7 GW
20,0 GW
10,0 GW
0,0 GW
Few certainties
2015
Energy Mix mix scenarios – UFE- 2011
UFE scenarios 2010
France Energy
Energy prices will increase
Energy Efficiency
Efficacité Energétique
Constant urbanization
Need to reduce CO2 emissions
Increasing share of intermittent
renewable energy
22nd October 2013 | SFEN - Paris
2030 Sc. 2030 Sc. 2030 Sc.
I
II
III
100 Md€
50 Md€
90 Md€
57 Md€
30 ans
10 ans
15 ans
3 Md€
0 Md€
Isolation
Thermal
insulation of
tthermique
buildings
Bâtiments
Low Changement
Engine
power moteur in
change
lighting industrie
the
industry
Investissements
Investment
Temps de retour
Return (years)
UFE - 2010
6

7. 1st Challenge : Development of intermittency
PV connected to distribution
Wind connected to distribution
installations connected at the
end of 2012
2020 forecast : 1 million installations
IIII Wind generation mainly connected to the
MV network
IIII PV generation mainly connected to the LV
network
As a whole > 90% connected to distribution
22nd October 2013 | SFEN - Paris
installations connected at the end of 2012
Challenges
IIII Difficulty to forecast the generation
level
IIII Management of bidirectional flows
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8. 2nd Challenge : Amplitude of peak demand
– 2012 : EC temperature
gradient was 5.2 GW
– By 2020, in all the
countries the
temperature gradient
should increase
– By 2030 : 4M to 20M
EV + HRV
22nd October 2013 | SFEN - Paris
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9. 3rd Challenge : Deployment of consumer flexibility management
technologies
‒ By 2020, 80% of EC consumers to be equipped with smart meters
‒ How to create conditions for consumers to embark the action?
22nd October 2013 | SFEN - Paris
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10. 4th Challenge : Communities increased focus on sustainable
development
Community expectations
The Energy Territorial Climate Plan (PCET):
a sustainable territorial development plan
whose primary purpose is the fight against
climate change.
22nd October 2013 | SFEN - Paris
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11. By 2020, ERDF will be in position to cope with main technical
challenges
Act remotely through Linky meter
Linky
Concentrator
Balance Generation / Consumption
CUSTOMERS
Information
System
Remote meter reading and services
Better invest
Act quicker on the network
(Linky)
and data analysis
III data collection
III risk
III
detection
Self-healing
diagnosis
22nd October 2013 | SFEN - Paris
intervention
management
predictive
maintenance
PRODUCERS

12. ERDF Smart Grids project to prepare the future
Smart Grid project explore
new interactions between players in
the electrical system and new
business models available ...
... that rely on a distribution network
more observable and controllable ...
... through the deployment of
telecommunications infrastructure
linking all the elements of the
network and information systems
22nd October 2013 | SFEN - Paris
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13. 15 demonstrators to prepare the industry
22nd October 2013 | SFEN - Paris
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14. Working on a European description of Use Cases
IEC method, enriched by the work
done in M/490 mandate of the
European Commission to describe
each use cases with a common and
shared method.
22nd October 2013 | SFEN - Paris
www.grid4eu.eu
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15. Smart grid applications can be classified into four groups with
different functionalities
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16. First lessons learnt
Lesson 1 : Wide range of benefits for the French electrical system. However shared among many
stakeholders …
DSOs : performance of MV and LV networks improvement
Networks infrastructure
• Deferred investment
• Peak requirements reduction
Customer, supplier: satisfaction
enhancement
• Increased remote actions
• Energy saving offers
• Easier supplier changes
• Reduction of commercial losses
22nd October 2013 | SFEN - Paris
Asset management
Operations
• Reduced maintenance costs
• Life enhancement
(solicitation of assets,
preventative maintenance)
• Disruption reduction and
lower cost of management
• Quality of voltage
improvement
• Meter reading cost reduction
Electrical system: performance
improvement
• Reduced ancillary services and system
reserve costs
• Reduction of congestion costs
• Deferred investment in production capacity
to transport
16

17. In the absence of regulatory incentives, the split of efforts and
benefits of Smart Grids among agents will be highly unbalanced,
with consumers getting most of the value
WITHOUT RAB RECOGNITION
Source : McKinsey & Company
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18. First lessons learnt
Lesson 2 : New Business Model for DSOs
▌Active local system management
▌Market enabler
▌Energy data manager
22nd October 2013 | SFEN - Paris
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19. Thank you for your attention
22nd October 2013 | SFEN - Paris