Welcome to the X Smart Grid Forum Latin America 2017 & I Smart Grid World Forum

Transcription

1 Welcome to the X Smart Grid Forum Latin America 2017 & I Smart Grid World Forum São Paulo, November 28 th & 29th, 2017 Cyro Vicente Boccuzzi President, Smart Grid Forum Latin America 1

2 Smart Grid: Dramatic Electricity`s Sector Technological Transition Traditional Industry New 21st Century Industry Declining Technologies Emerging Technologies - DERs

3 Traditional Industry New 21st Century Industry

4 21st Century Energy: Distributed Energy Resources Better Practices over: Energy efficiency Demand side management Renewable small scale and distributed generation Co generation Back up power - CHP Building & Processes Automations Micro grids Energy Storage & Demand Flexibility Other coming tools & disruptive technologies... Fast Development & Grow Massive Investments & faster than expected market penetration Technology evolution, convenience and market prices speeds up client s adoption Penetration will change dramatically the traditional utility business model based on scale and permanent growth = Desintermediation The combined use of DER technologies provides leveraged and much faster return of investments compared with individual cost benefit assessment

5 Smart Grid Forum Latin America Pioneer initiative in 2007 / Open periodic and systematic information exchange and policy formulation focus on articulation and synthesis. Collaboration with other similar initiatives around the world. Neutral, independent and inclusive (non exclusive) vehicle to include the broader possible matrix of stake holders on the debates. Seeks for modernization achievable in a sustainable way considering technical, economical, environmental, political, legal and societal aspects. No fees: meetings are self sustainable, by the annual meeting or case by case. Our Forum is the unique to complete Edition number TEN!!

6 Smart Grid Forum Latin America Business oriented perspective for technology deployment Up to date worldwide progress review More focus on the next steps rather than on past achievements No easy answers or silver bullets: the Forum commits to raise and debate the fundamental basic questions for the next building blocks to move forward in the LA region The work does not finishes after the Conference - it really starts every Conference is a new set up of the relevant questions for the region s next year s debate and progress This 10 th edition is focusing the Utilities of the Future & Regulatory Models

7 New Renewable Generation Costs are Becoming More Capital Intensive Source: adaptted from EIA US Annual Energy Outlook 2015 Compared with conventional fossil generation or even hydro generation, wind and solar renewables have much lower variable costs and higher cost of capital. The growth of the market share of renewable generation implies that total costs will be targeted by most anticipated investment capital than for variable costs such as fuel and maintenance. 7

8 New ecosystem: collaborative work! DERs will have to be managed individually and collectively. Prosumers produce part or all of their energy and work collaboratively, meeting local needs in a coordinated way through intelligent applications that coordinate real-time production, reserve (storage or demand management), and consumption in the neighborhood, on the block or in the entire neighborhood. Synchronism will be distributed, with transparency and visibility, and at marginal costs close to zero, using the network of distributors as a transactional medium and paying for this use. New agents and providers will play an important role in this new world of collaborative work and sharing.

9 Significant Increase in Utilities` Operating Complexity Each customer is no longer just a consumer, but a "prosumer" with efficient connected equipment that needs to be individually controlled Controlling complex systems involves addressing: A large number of sensors and / or endpoint control; High Complexity; Heterogeneity of nodes; Multiple Operating Scales; Pervasive Computing / Standalone Mode Need for flexible architecture and / or auto configuration. The new platforms should be: Integrable, Flexible, Scalable, Resilient and Applicable..

10 What do these factors mean for businesses? What do these factors mean for traditional Utilities? Sales and Peak Demand Growth Stranded Assets and additional investment needs for the automation, management, integration and hosting of renewables Changes on business models: Source: Cyro Vicente Boccuzzi A grande mudança de paradigma do setor de energia

11 Changing Utilities` businesses models... New scope: serving customers and their resources on a large scale: Offer products as services: manage energy flows, mining usage data, supporting with analytics, working algorithms, apps and all services that can leverage aggregate efficiency at all stages of the customer's productive chain The vast majority of traditional business groups have realized this and started energy service companies to learn the new skills and build partnerships in this disruptive market.

12 Strategy: migrate closed and centralized systems to open and collaborative platforms Traditional Companies think of products and maximize sales and profits using closed systems, controlling any operation. Modern organizations offer much more value to customers by developing a platform-based strategy and working to build complementary service networks, from sharing systems and partnersde gestão. Platform-oriented companies create and dominate arenas in which buyers, sellers, and a variety of third parties are connected in real-time: digital platforms enable developers to create applications that make it easier and faster than ever to collaborate, stream and value between industries and geographies.

13 Rethinking the business, main steps: 1. Redefine the scope of work 2. Look for new (and hidden) sources of value 3. Build the business with "light" assets 4. Develop the product as a service 5. Reinvent products as platforms 6. Embrace the Big Date and Artificial Intelligence 13

14 Main challenges in the short term: 1. Integrated Resources Planning 2. Active Network Management Systems 3. Light assets solutions instead of traditional expansion decoupling & smart tariffs 4. Integrated Operation on Platforms instead of centralized and verticalized command 14

15 Thank You! And Welcome to the X Smart Grid Forum Latin America 2017 & I Smart Grid World Forum! cyro.boccuzzi@smartgrid.com.br