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OECD/IEA 2011

Topics
IEA snapshot
Evolution of smart grids Role of smart grids in addressing climate change and

power sector challenges What is needed to create smart grids? Smart grid initiatives in Asia and elsewhere The need for smart customers A note on ISGAN
OECD/IEA 2011

IEA Snapshot
An autonomous body of the OECD founded in 1974
An energy policy advisor and think tank 28 Member countries
Asia Pacific: Japan, South Korea, Australia & New Zealand North America: USA, Canada Europe: UK, Ireland, Germany, France, Belgium, Luxembourg, Spain, Portugal, Italy, Austria, Denmark, Netherland, Greece, Finland, Sweden, Czech Rep, Hungary, Slovak Republic, Turkey, Switzerland, Norway, Poland

Decision making body:


Governing Board: Director-Generals of Member countries Standing Committees review IEA programs and work

Secretariat: 220 engineers, economists and statisticians


OECD/IEA 2011

Electricity Systems are evolving

Smartening the grid is not a one time event


OECD/IEA 2011

Smart Grid Technologies

Smart grid technologies are applied across the entire electricity system
OECD/IEA 2011

How smart grids enable the 450 ppm scenario


GHG emissions reduction Mechanisms

Direct and enabled emission reductions


1.20

World

Improved end-user behaviour


Facility efficiency improvement

From consumer feedback


Gt CO2 / yr

1.00

Optimization of systems

0.80

Power system operations


Cleaner transport Improved network efficiency Integration of distributed energy Integration of variable energy sources

Demand response
Deployment of EVs Voltage control & network optimization Bidirectional flows Through storage & demand response

0.60

0.40

0.20

0.00 2015 2030 2050

Smart Grids have the potential reduce global CO2 emissions by over 2 gigatonnes per year by 2050

Direct reductions: energy savings from peak load management, continuous commissioning of service sector loads, accelerated deployment of energy efficiency programs, reduced line losses, and direct feedback on energy usage Enabled reductions: greater integration of renewable and facilitation of EV and PHEV deployment
OECD/IEA 2011

Over half of this CO2 emissions reduction potential is in Asia


Other Developing Asia
0.40 0.35 Gt CO2 / yr Gt CO2 / yr 0.30 0.25 0.20 0.15 0.40 0.35 0.30 0.25 0.20 0.15 0.15 0.40 0.35

India

China

Gt CO2 / yr

0.30
0.25 0.20

0.10
0.05 0.00 2015 2030 2050

0.10
0.10 0.05 0.00 2015 2030 2050 0.05 0.00 2015 2030 2050

OECD/IEA 2011

Smart grids will help accommodate demand growth, variable generation, and new enduses especially in developing Asia

OECD/IEA 2011

Forecast Electricity Demand by Region


2007 Electricity demand [TWh] World OECD North America OECD Europe OECD Pacific Economies in Transition China India Other Developing Asia Africa Latin America Middle East
Note:

16 999 4 664 3 136 1 681 1 149 2 856 567 853 521 808 594

2050 BLUE Map Electricity demand [TWh] 36 948 6 252 4 071 2 311 2 348 9 500 3 453 2 822 1 691 2 062 2 437

BLUE Map Percent growth 2007 to 2050 117% 34% 30% 37% 104% 233% 509% 231% 225% 155% 310%

Electricity demand equals generation minus losses.


OECD/IEA 2011

Half of global growth in electricity demand to 2050 will be in Asia

OECD/IEA 2011

Variable electricity generation will increase rapidly to 2050, but less so in Asia than elsewhere

OECD/IEA 2011

EVs and PHEVs will be transformative for both the transport and power sectors

2010 global production: 50 million PVs

OECD/IEA 2011

What is needed to create smart grids?


Technology
Integrated commercial-scale demonstrations, including sustainable business

models Global technology standards to accelerate deployment and reduce costs Seamless integration with existing electricity infrastructure

Policies and regulation


New regulatory framework to address changing system needs and new

technologies Practical approaches to accommodate system integration and sharing of smart grid costs and benefits. Resolve cyber security issues Create smart customers through proactive consumer protection, new service and pricing options, retail and wholesale market integration, enabling technologies
OECD/IEA 2011

What is needed to create smart grids? continued


Consensus
Build awareness and improve understanding of electricity system issues and

solutions by customers and stakeholders

Global collaboration
Share knowledge and proven practices in technology, policy, regulation and

business approaches Understand and act on the strong linkages between electricity and other sectors Expand tailored smart grid approaches to accommodate developing country applications, e.g., rural electrification, island systems and loss reduction

OECD/IEA 2011

Smart grid initiatives in Asia and elsewhere


China
Government-sponsored water and power network investments, including a substantial investment in smart grids. Incorporation of smart grids into high-voltage networks in order to accommodate expansion of renewable generation . Smart grids investments will reach at least USD 96 billion by 2020. USAID-supported development of a Smart Grid Vision for Indias Power Sector Private sector development of a Smart Grid Customer Demonstration Centre (SGCDC) in Hyderabad

India

Italy
Telestore project - over 2.1 billion invested in national deployment of 33 million smart meters, automation of 100,000 MV/LV distribution substations, and smart management of network operations

Japan
Development of an urban integrated energy approach through the communities/smart cities concept

Korea
Has announced plans to implement smart grids nationwide by 2030

USA
USD 4.5 billion was allocated to grid modernisation through stimulus funding
OECD/IEA 2011

Smart customers should be part of smart grids


Smart grids can provide endusers with access to data on consumption data & market Customer-focused policies are needed for end-users to benefit from smart grids Mobilizing customers through smart pricing and other options will help manage demand growth and improve efficiency Including smart customer policies will help build consensus on the benefits of smart grids for everyone
Passive, uninformed Customers

Smart Customer Model

OECD/IEA 2011

Smart Customer Policy Needs


Consumer Protection

Policies Customer Feedback Policies Smart Pricing Policies Transitional Policies Smart Grid Regulatory Policies Enabling Technology Policies
OECD/IEA 2011

International Smart Grid Action Network (ISGAN)


A mechanism for bringing high-level government attention and action to accelerate the development and deployment of smarter electricity grids around the world.

Current Participants and expressions of interest:

Plus more
OECD/IEA 2011

ISGAN inception projects


1
Global Smart Grid Inventory
of smart grid-enabling programs and policies

Smart Grid Case Studies


using a common framework and metrics

Benefit-Cost Analyses and Toolkits


to inform smart grid regulatory and investment decisions

Synthesis of Insights for Decision Makers


making projects results accessible and useful

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OECD/IEA 2011

Smart grids:

Accelerating electricity system evolution to achieve shared goals for energy security, economic development and climate change mitigation.

OECD/IEA 2011

For more information: www.iea.org/roadmaps david.elzinga@iea.org grayson.heffner@iea.org

Thank you
OECD/IEA 2011

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