- Smart Grid market drivers in Finland, Germany and Italy - Regulatory frameworks - In the end more detailed info about the models

1. THE EVOLVING REQUIREMENTS FOR
SMART SECONDARY SUBSTATIONS
IN THREE EUROPEAN REGULATORY
MARKET ENVIRONMENTS
MASTER OF SCIENCE THESIS
Tuomas Vanhanen

2. THE EVOLVING REQUIREMENTS

3. THE EVOLVING REQUIREMENTS

4. SMART SECONDARY SUBSTATIONS

5. REGULATORY MARKET ENVIRONMENTS

6. REGULATORY MARKET ENVIRONMENTS

7. REGULATORY MARKET ENVIRONMENTS

8. RECENT DEVELOPMENT
CASE EV BATTERIES

9. EXAMPLE
WHAT WAS FORECASTED IN 2013?
• ”Just recently a Japanese chemical company announced … to
liR the operaSng radius of EV to 600 kilometers … Mass
producSon … could start in 2015. (Electric Vehicle News
2013)”
• EV range in 2013:
– Chevrolet Volt ~60 km
– Mitsubishi i-MiEV ~100 km
– (Tesla Model S, up to 480km)

10. What we know in 2016
• Volkswagen to launch $40k electric
car with 600km range in 2020

11. THANK YOU
THE EVOLVING REQUIREMENTS FOR
SMART SECONDARY SUBSTATIONS
IN THREE EUROPEAN REGULATORY
MARKET ENVIRONMENTS
MASTER OF SCIENCE THESIS
Tuomas Vanhanen
Twifer: @TumuVanhanen

12. REGULATORY MARKET ENVIRONMENTS

13. REGULATORY MARKET ENVIRONMENTS

14. REGULATORY MARKET ENVIRONMENTS

15. REGULATORY MARKET ENVIRONMENTS

16. REGULATORY MARKET ENVIRONMENTS

17. REGULATORY MARKET ENVIRONMENTS
• Finland
– Medium reliability: SAIDI for MV/LV grid 138 min (2007 – 2009)
– All the DSOs have to show plans to stick to the roadmap every two
years. (Goal 2028)
Maximum outage in
urban areas
Maximum outage in
other areas
0
50
100
150
200
0 36 72 108 144 180 216 252 288
Repayment in % of the annual bill
Outage in hours
Repayment to the customer of the annual bill
due to outage hours
6 12

18. REGULATORY MARKET ENVIRONMENTS
§ Germany
§ High reliability: SAIDI for MV/LV grid 15.31 min (2011)
§ Regulation focuses heavily on investment effectiveness à lower
cost e.g. per feeder km
-300000
-250000
-200000
-150000
-100000
-50000
0
50000
100000
0 20 40 60 80
Outage Cost
Outage Cost
From 1% bonus to 8 % penalty (6 MEUR Revenue)
2013/2014 2017/2018
Influencable costs Allowed revenue - end of 2nd
regulation period
Allowed revenue - beginning of 2nd
regulation period
Momentary non
influencable costs
Permanently non
influencable costs
Permanently non
influencable costs
Momentary non
influencable costs
-1,5%
Max 40%
Min 60%

19. REGULATORY MARKET ENVIRONMENTS
§ Italy
§ Medium reliability (vs. FI, DE) , SAIDI ~49min (2009)
§ Good incentives for grid reliability and for automation.
§ New mechanisms further incentive crucial areas and e.g. 25% of
the secondary substations for investments in next years.