IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

PV global utility business

models and trends

Pius Huesser
IEA PVPS Task 1 Switzerland
Director Nova Energie GmbH
Vice Chairman Swiss Solar Professional Association

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

The old utility world

Central production
One way
transmission to
customers
Load control by
some simple
communication
means

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

The old utility world

Monopoly
Average selling price covers
investment independent of
usefulness and risks
Production was close to federal and
regional governments (or was
owned by the government)

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Next step: Market liberalization

Stock market for electricity: Investment in new
production capacity becomes riskier.
Transmission lines as bottleneck

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

The future
Customers added value:
Producer
Storage provider
Increase in energy
demand
Dispatchable loads
also for residential
houses

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Example New York

The state of New York set up working
groups to design the future of the
electricity and energy services:
Reforming the energy vision REV.
The following 2 slides are from the PVPS Workshop
Electricity Systems of the Future held in Golden, Colorado 21st April 2015,
Author Lena Hansen, Rocky mountain institute

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Example New York

REV Regulatory Policy Order
Utilities, and this Commission, could respond to [the challenges facing
the industry] by clinging to the traditional business model for as long as
possible, relying on protective tariffs, regulatory delay, and other
defenses against innovation.
Alternatively, we can identify and build regulatory, utility, and
market models that create new value for consumers and support
market entrants and this new form of intermodal competitionin
other words, embrace the changes that are shaking the
traditional system and turn them to New Yorks economic and
environmental advantage.
We decisively take the latter approach.

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Press comment:

In one of the most promising moves in the

energy sector in years, New York State is
proposing a way to get a head start on, and
perhaps help lead, a revolution in the world
of electricity generation
May 12th, 2014

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Threads for utilities

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Grid defection
With lower costs for
PV and storage, the
grid can become
optional in certain
areas of this world
Average electricity
price in Hawaii:
35 47 UScents/kWh

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Opportunities: Swiss case

Average electricity consumption of a
household:
4000 6000 kWh/a
Grid connection:
3 phase 400 V, 25 or 40 A
-> 17 to 27 kW

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Change of heating system

Before:
1500 Liters of Oil
New:
5000 kWh/a of
electricity

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

New PV System
7 kWp
7000 kWh/year
70% in Summer

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

New mobility standards

15 000 km/a
20 kWh/100km
3000 kWh/a
for 1 Tesla
(+ 100 kWh/a for an
E-Bike)

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

The future Prosumer

Before:
Heat Pump:
PV System:
EV (Tesla):
Total:

5000 kWh/a
+5000 kWh/a
- 7000 kWh/a
+ 3000 kWh/a
6000 kWh/a from Grid

Self consumption of PV: max. 5000 kWh/a

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

The new utility/DSO

Service provider for prosumers:
Installer for PV systems
Extended metering services
(Smart Meters/load management)
Managing the electricity flow at their
customers premises
Maintaining the PV systems

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

The are many more

opportunities in the new
electricity markets
Thank you for your attention