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FOCUS ENERGY – Smart Grid, the revolution of intelligent grids

FOCUS ENERGY (Third episode) – The future belongs to new generation intelligent energy networks that can reduce electricity consumption and increase efficiency – But to fully develop Smart Grids, 70 billion euros are needed by 2050: an impressive sum that requires creative solutions – The role of Enel and that of Terna

FOCUS ENERGY – Smart Grid, the revolution of intelligent grids

Le Smart Grid are innovative networks designed and built to manage the processes of production, distribution and consumption of electricity in an "intelligent" way. The liberalization of the market and the disruptive development of renewables (RES), supported by EU energy policies, have thrown into crisis the "historical" electricity grids that accompanied the industrial revolution throughout Europe and which now need to be redesigned.

Traditional networks were, and are, designed to transport electricity from a few plants – medium and large power plants – to a very high number of residential, commercial or industrial users. The flow of energy is unidirectional and goes from where energy is generated to where it is consumed. The diffusion of distributed generation, i.e. from very small to medium-sized plants that are almost always renewable, undermines the historical model: a building that in the past could only consume energy today, with solar panels or mini-wind power, can also become a small production plant. But even a stable or an agricultural activity, the roof of a shed or a small stream are transformed into producers.

In short, the picture becomes much more complicated: not only is the flow bi-directional but it is also often difficult to predict and, by its nature, more unstable and insecure. Here the historical model enters a deep crisis: the need emerges to connect a plurality of subjects who can be both producers and consumers (the so-called prosumers) and whose behavior cannot be reliably predicted. All of this requires the development of telecommunications infrastructures capable of coordinating production with electricity consumption in a very rapid and efficient way. The Smart Grid they are precisely "intelligent networks" that fulfill this purpose.

Bad Smart Grid they can also perform other important functions. By simplifying the theme, the following profiles can be highlighted:

La Smart generation, is  optimizes the dispatching of the various sources of generation based on the conditions of the grid and the specific characteristics of consumption. Fundamental is here Smart Inverters (essential for renewables which are notoriously discontinuous) with which, remotely, it is possible to disconnect the production plant via dedicated IT systems.

Lo Smart Networks, which guarantees thereliabilitynetwork quality and security.

Lo Smart metering, that is, a system through which the consumer – thanks to an “intelligent meter” – can communicate directly with the producer or with the network when he himself becomes a producer.

In summary, the Smart Grid:

– They make it easier connection to the network of generation plants (of all sizes and technologies);

– Allow consumers to take part inoptimization of the system;

– Make more available to the consumer information for the choice of the supplier;

– They reduce theenvironmental impact of the entire supply system;

– They improve thereliability , safety of service.

Furthermore, the predominantly local nature of Smart Grids allows for reduce electricity transport costs also for the minor dispersions in the distribution processes. Don't forget that 10% of the energy produced is lost before it reaches the end user.

The first pilot projects have long since emerged from university research centers and are becoming industrial realities able to accompany the change in production and consumption models; thus the possibility of reducing electricity consumption and increasing energy efficiency would seem to emerge. Therefore, a real technological revolution of network architecture is outlined which is characterized by a strongly integrated system which is based on awaited strategic planning, on decentralization processes and on a strong differentiation of the systems. That is, it is essential that the technological solutions (Smart generation, Smart Networks e Smart metering) develop in complete synergy with each other. The systemic vision is also necessary to guide the activity of operators in the sector in a logic of relative certainty. And, in the same way, specific legislation capable of providing clear indications to ensure the connection between the various system technologies appears to be necessary.

But this revolution certainly may have modest costs while, for many observers, it is not certain that the benefits are as significant. According to reliable estimates the need for financial resources is around 5,5 billion euro by 2020. But the full implementation of the Smart Grid in Italy, also considering the investments already made, it requires investments around 70 billion euros by 2050. It is clear that these figures are very significant and would ultimately be borne by the users. To deal with an onerous and complex process, operators require specific provisions containing constraints and incentives.

In this smart revolution what will they be the protagonists? To date, the most active operators are certainly the electricity distribution companies. Enel is, for example, the world leader in the installation of smart meters. It is natural to assume that such companies will assume an increasing role in the construction, management and exploitation of such networks. However, it cannot be hidden that - to a certain extent - historical networks compete with smart grids since they generate a significant rent for those who own them and this can slow down the development process. In the same sense, the dynamics described could lead to the creation of private intelligent grids, i.e. developed independently by Terna, to satisfy local needs probably at much lower costs. It is clear that this possible evolution constitutes an element of instability of the system also from the perspective of the regulator, the AEEG.

Returning to the actors, various Utilities  are developing at least partial projects of Smart Grid. The project is worth mentioning Smart Dome Grid of A2A Electricity Networks. Approved in December 2011 and partially financed by the Ministry of Economic Development, it is a prototype of a Demand-Response solution for experimenting with the interaction between the electricity grid and domestic or small business users. It concerns a few hundred users in a district of Brescia with a budget of around 2,3 million euros.

ll GRID4EU project, funded by the European Community, aims to implement in six EU countries (Italy, France, Germany, Spain, Sweden and the Czech Republic) as many demonstration projects, which propose concrete solutions to the technical problems associated with distributed generation, All 'increase in energy efficiency andsystem activation active demand. The project involves a consortium of 27 partners including Enel – which has the technical direction – Cez, Rwe, Erdf, Iberdrola, Vattenfall. In particular, Enel, in partnership with RSE (Ricerca Sistema Energetico), Selta, Siemens and Cisco, has launched a demonstration project in Emilia Romagna, in the Forlì-Cesena area (estimated budget: 8,2 million euros). The main objective is the integration of RES plants into the medium voltage network by creating an advanced control system capable of communicating, thanks to a broadband connection, with the energy generators.

In conclusion, le Smart Grid they are a response, very often obligatory, for optimizing electricity production and consumption models based on the diffusion of small-scale, often discontinuous and non-programmable production units across the territory. The challenge has many faces: technological, economic, cultural, competitive, regulatory. With resolution 84/2012 – named Urgent interventions relating to electricity production plants, with particular reference to distributed generation, to guarantee the security of the national electricity system – the Authority is starting to address the problem. It is no coincidence that the resolution stems from Terna's request to prepare the "minimum requirements for connection and parallel operation of photovoltaic plants with the HV grid".

But in our opinion the challenge of challenges is to create innovations such as Smart Grid without adding to your bill which today constitutes a very heavy ball and chain for the development of the country. Indeed, if anything, it should be lightened. To do this you need imagination and also courage: the development of private local networks could perhaps be an interesting solution to achieve these objectives.

THE NEXT ISSUE OF FOCUS ENERGIA will be published on Saturday 29 September

THE FIRST AND SECOND INSTALLMENTS were published respectively on 8 and 15 September

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