WG4: DIGITALISATION OF THE ELECTRICITY SYSTEM AND CUSTOMER PARTICIPATION TERMS OF REFERENCE

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1 WG4: DIGITALISATION OF THE ELECTRICITY SYSTEM AND CUSTOMER PARTICIPATION TERMS OF REFERENCE Chairs: Maher Chebb (SAP), C-Chairs: Miguel Sanchez-Frnié (IBERDROLA), Esther Hardi (ALLIANDER) - Advisr: Carl Trnelli (RSE) Wrking Grup established 09/12/2016

2 Backgrund fr all Wrking Grups In September 2015, the Eurpean Cmmissin issued the SET-Plan Cmmunicatin 1, addressing innvatin in the cntext f the strategy f the Energy Unin. Amng the pririties highlighted, f particular interest fr the energy netwrks cmmunity is the pririty "Number 4 Increase the resilience, security, smartness f the energy system" 2. The Eurpean Technlgy and Innvatin Platfrm fr Smart Netwrks fr the Energy Transitin (ETIP SNET) was set-up t reflect the increasing need t cnsider the smart grids as an integral part f the energy system. The missin f the Platfrm is t guide research and innvatin activities t supprt Eurpe's energy transitin. The ETIP SNET will elabrate a visin and a Radmap fr R&I activities (and the assciated Implementatin Plans) fr smart netwrks, strage and ther surces f flexibility, and integrated energy systems, engaging all stakehlders. It will als lk at custmer participatin and the impact f digitisatin. It will identify innvatin barriers, ntably related t market design, regulatin and financing. A number f permanent Wrking Grups and a Member States/Regulatrs Grup were set up in the ETIP SNET t ensure the invlvement and cntributin f all the stakehlders f the energy system as a whle, prviding visin, inputs, guidance and cntinuus feedback fr the develpment f the integrated R&I Radmap. The Wrking Grups are set up t ensure the mst adequate balance between the effectiveness f their wrk n the planned deliverables and the penness twards new subjects and new issues which may appear. The fllwing Wrking Grups are established: WG1: Reliable, ecnmic and efficient smart grid system WG2: Strage technlgies and sectr interfaces WG3: Flexible Generatin WG4: Digitalisatin f the electricity system and Custmer participatin WG5: Innvatin implementatin in the business envirnment WG6: Natinal Stakehlders Crdinatin Grup WG1 t WG4 are dedicated t the different aspects f develpment f the energy system alng its different main develpment paths, while WG5 is mre fcussed n technlgy transfer, applicatin and market uptake. The WG6 Natinal Stakehlders Crdinatin Grup, invlves Gvernments and Regulatrs t ensure that the all ETIP utcmes ptimally cmplement natinal cnditins and innvatin directins, and t facilitate the uptake f ETIP utcmes int lcal/natinal plicy. The fllwing figure illustrates the main fields f activities f WG1 t WG4: Dmain Wrking grups System Technlgy Market Sciety WG1: Reliable, ecnmic and efficient smart grid system WG2: Strage technlgies and sectr interfaces WG3: Flexible Generatin WG4: Digitalisatin f the electricity system and Custmer participatin 1 Twards an Integrated Strategic Energy Technlgy (SET) Plan: Accelerating the Eurpean Energy System Transfrmatin" (C(2015)6317). 2 Other pririties, such as pririties ne and three fr instance, will als impact the energy system transfrmatin.

3 Missin f the ETIP Wrking Grups WG1 t WG4 Experts acting in the Wrking Grups ( WG Members ) will aim at prviding strategic guidance abut RD&I pririties and activities, ensuring the interactin and invlvement f the entire expertise needs raised by the integratin issues f the electricity system int the wider Eurpean energy system. The Wrking Grups (WG) will als exchange with the ther ETIPs (radmap and implementatin plans) and the ther Eurpean r Internatinal R&I crdinatin activities (e.g. ERA-Net SG+, GSGF, CEM initiatives, Missin Innvatin, IEA TCPs such as ISGAN, DSM, HTS, 4E etc.). The Wrking Grups will act in clse crdinatin with the Eurpean CSA assisting the ETIP SNET in the develpment f the RD&I Radmap and implementatin plans (fr the perid Oct Sept the CSA is INTENSYS4EU). The Wrking Grups are set-up n the principle f aviding verlaps amng their gals and activities carried ut. WG1 fcuses n bth technlgical and market slutins fr the Eurpean electricity netwrks as well as n the integratin f generatin, cnsumptin, strage, and interfaces t ther energy netwrks. This integratin shuld make the pwer system sustainable, reliable, secure and affrdable. The WGs 2, 3 and 4 fcus n prviding the main different technlgical and market slutins t ensure the flexibility f the pwer system. Thrugh this fcus n system integratin and flexibility t meet system needs, they supprt the system apprach in WG 1 and f the entire ETIP SNET. The mapping between the ptential scpe f each Wrking Grup (WG1 t WG4) and the Functinal Objectives f the (existing) Radmap is presented Annex 1. Additinal Functinal Objectives prvided by ther stakehlders than thse invlved in the develpment f the present Radmap will be mapped by the respective Wrking Grups. The Wrking Grups (WG1 t WG4) shuld fcus n: Delivering a visin (verarching gals and cnstraints) fr the Eurpean energy system and respectively f the cntributin f varius technlgies t this system by 2030, 2040 and beynd, guiding the preparatin and update f the RD&I Radmap in the directin f the specific pririties f the Eurpean Energy Unin addressed; Reviewing the mnitring reprts f the implementatin f RD&I activities at Eurpean, natinal/reginal and industrial levels, prduced by n-ging research and demnstratin activities with the gal t establish the state f the art (e.g.: analysis f recent success stries / innvatin actins in the area f expertise f the wrking grup, analysis f the results frm the utstanding prject's demnstratrs, analysis f the ptential f scaling up and replicatin, analysis f the cverage f each functinal bjective within the scpe f the WG by past and nging R&I prject achievements); Reviewing the relevant BRIDGE reprts that identify the ecnmic, scial, technical, legal, etc. barriers which may slw dwn business mdel deplyment (impacting scaling, replicatin, deplyment); Creating inputs t and reviewing utput f the knwledge sharing activities at pan-eurpean level rganised by a) INTENSYS4EU thrugh inputs t reginal wrkshps r the prductin/review f cntents fr the Knwledge Sharing Platfrm (KSP) and b) by ERA-NET SG PLUS by its Knwledge Cmmunity. Preparing a cnslidated stakehlder views abut the Research and Innvatin activities t meet bth Eurpean and Natinal/Reginal Energy Plicy rientatins, als cntributing t the prcess f develpment, review and validatin f a cmmn RD&I radmap; Cntributing t validate, integrate and priritize the Research and Innvatin activities in the updated RD&I radmap and the related yearly implementatin plans;

4 Identifying the lng term challenges, disruptive technlgies, slutins t be addressed by the future R&I activities and the innvatin barriers t be remved t favr the deplyment f new knwledge in their area f expertise; Estimating the financial resurces need t carry ut the prpsed RD&I activities and ptential financing mechanisms t be used (EU, Natinal / Reginal Funding, financial cntributins by prject participants). Cntribute r lead discussin / analysis n specific themes in their area f expertise that are f wider interest and call fr the supprt f stakehlders in identifying steps frward. Organisatin f the ETIP Wrking Grups WG1 t WG4 The WGs gather experts representing the widest cmmunity f stakehlders related t their area f expertise. The WG is crdinated by a Chair assisted by ne r mre vice-chairs. The ETIP SNET Chairs will present t the Gverning Bard a shrt list f candidates f WG chairs and vice-chairs taking int accunt a balanced view f representativeness f different stakehlders in the ETIP Executive Cmmittee. The ETIP Gverning bard apprves the chair and membership f each WG based n their expertise and representativity. The WG Secretariat functin is assured by the INTENSYS4EU prject and prvides a permanent lgistical supprt t rganise meetings, taking minutes and interacting with the Chairs n a permanent basis as well as fllwing-up the executin f decisins taken. WG members are recruited thrugh a call fr experts addressed t the entire stakehlder cmmunity. Experts cntribute t the WG n a vluntary basis and n reimbursement f expenses is freseen. Decisins in the WG are nrmally taken by cnsensus (r thrugh majrity vte in cases cnsensus are nt reached) and utcmes frm the WG are reprted t the ETIP SNET gverning bard by the Chairs. Specific Objectives WG 4: Digitalisatin f the Electricity System and Custmer Participatin WG4 (Digitalisatin f the Electricity System and Custmer Participatin) addresses the use and impact f the Infrmatin and Cmmunicatin technlgies as a pervasive tl alng the entire value chain f the pwer generatin, transprtatin and use. The cmmunicatin layer is ne f the pillars f the smart energy system, enabling system bservability, mnitring, cntrl and prtectin and specifically enabling a radical change in the relatin between the final user and the energy system: advanced meters and mdern appliances trigger the ptential f active demand-respnse and enable new services fr the energy user f the future. Custmer participatin in all stages f the develpment and expansin f the energy system is als favured by digital tls ranging frm Participative gegraphical systems t web prtals r scial netwrks. Internet f Things (IT) and the related data analysis and cmputatin tls (data mining, big data etc.) applied t the energy system can be disruptive fr the develpment and management f the energy system, thus changing its planning and peratin and transfrming the energy market. The widespread use f digital technlgies hwever needs t be accmpanied by suitable measures fr data and infrmatin prtectin frm malicius intrusins and attacks (cybersecurity) and frm uncntrlled use f custmers data (data privacy) In particular, WG4 fllws n The full digitalizatin f bth the transmissin and the distributin netwrks with new ICT infrastructures with their assciated sftware layers. Cybersecurity issues Use f big data, IT and High Perfrmances Cmputing t manage the entire value chain alng the energy system;

5 ICT infrastructures and technlgies that will allw the invlvement f the end custmers and the retail market players prviding new energy services, defining the interactins (market and regulatins) between the different market players and the netwrk and flexibility peratrs; The retail electricity markets empwering custmers (favurable envirnment t chse electricity suppliers and t better cntrl cnsumptins thrugh new services prvided by new market players). The Imprvement f public awareness f lng-term energy challenges and the need t build and prtect transmissin infrastructure t increase the scial benefit f energy use Radmap pints, as described in Annex 2. Key targets and perfrmances Indicatrs TBD with the WG chair Year 1 activities TBD with the WG chair

6 Annex 1: Mapping f the Radmap Functinal bjectives with the ptential scpe f each Wrking Grups WG1 t WG4 The starting pint f WG1 t WG4 shuld be, amngst the Functinal Objectives f the R&I radmap adpted by the ETIP SNET end f 2016, thse relevant t the tpic f the wrking grup. The areas f expertise f the wrking grups WG1 t WG4 are illustrated by the table belw as a functin f the functinal bjectives f the R&I radmap Clusters and functinal bjectives WG1 WG2 WG3 WG4 Distributin Cluster C1 -Integratin f smart custmers and buildings D1 Active demand respnse D2 Energy efficiency frm integratin with smart hmes and buildings Distributin Cluster C2 - Integratin f DER and EV, strage, ther netwrks D3 DSO integratin f small DER D4 System integratin f medium DER D5 Integratin f strage in netwrk management D6 Infrastructure t hst EV/PHEV Electrificatin f transprt D7 Integratin with ther energy netwrks Distributin Cluster C3 - Netwrk peratins D8 Mnitring and cntrl f LV netwrk D9 Autmatin and cntrl f MV netwrk D10 Smart metering data prcessing and ther big data applicatins D11 Cyber security (system apprach) Distributin Cluster C4 -Planning and asset management D12 New planning appraches and tls D13 Asset management Transmissin Cluster C1 Mdernizatin f the netwrk T1 Optimal grid design T2 Smart asset management T3 New materials and technlgies T4 Envirnmental challenges and stakehlders Transmissin Cluster C2 Security and system stability T5 Grid bservability: PMU, WAM, Sensrs, DSO infrmatin T6 Grid cntrllability: frequency and vltage stability, pwer quality, synthetic inertia T7 Expert systems and tls: expert systems, decisin-making supprt tls and advanced autmatic cntrl T8 Reliability and resilience: defense and restratin plans, prbabilistic apprach, risk assessment, self-healing

7 T9 Enhanced ancillary services fr netwrk peratin Transmissin Cluster C3 Flexibility f pwer system T10 Strage integratin, use f strage services T11 Demand respnse, tls fr using DSR, lad prfile, EV impact T12 Imprved RES frecasting and ptimal capacity peratin T13 Flexible grid use: dynamic rating equipment, pwer electrnic devices, use f intercnnectrs T14 Interactin with nn-electrical energy netwrks Transmissin Cluster C4 Ecnmy and efficiency f pwer system T15 Market/grid peratin integratin T16 Business mdels T17 Flexible market design Transmissin Cluster C5 ICT and digitalizatin f pwer system T18 Big data management T19 Standardizatin, prtcls fr cmmunicatin, and data T20 New technlgies, Internet f Things T21 Cybersecurity

8 Annex 2: Mapping f the Radmap Functinal bjectives with the ptential scpe f Wrking Grup 4 (fr the start) The fllwing subjects can be cnsidered fr starting the wrk f WG4 Full digitalisatin in bth transmissin and distributin netwrks: Develpment f tls fr the mnitring, autmatin and cntrl, cybersecurity issues Use f big data, IT and HPC t manage the netwrk Address the use f IT and data mining techniques (big data) t develp smart asset management strategies, manage the netwrk, clser t its physical limits; Crdinate and participate in standardizatin activities fr cmmunicatin and data exchanges between the different stakehlders f the electricity value chain. Develp scalable slutins t address large-scale data management (custmers, equipment, netwrk, market) issues in the pwer system. Ensure the physical and cyber-security f the digital substatins. Cybersecurity issues: Identify and define the cyber security issues (cnfidentiality, integrity, vulnerability and availability f infrmatin flw) by cnsidering the different layers f the SGAM (Smart Grid Architecture Mdel); Identify the existing security standards and the pssible gaps s as t prvide ptential imprvement fr the specific case f the smart grids; Explre pssible cyber security R&D issues that shuld be addressed fr the specific case f smart distributin grids (n tp f the existing activities in ther sectrs such as the banking sectr); Leverage knwledge f cnsumer data: Efficient data mining algrithms fr varius applicatins ranging frm generatin/lad frecast t cnsumer behaviur but als failure/ageing mdels fr netwrk cmpnents. Efficient data mining algrithms fr market players (prsumers, retailers, aggregatrs, ESCOs, traders, etc.) t bst retail electricity markets and create new business pprtunities, in cnnectin with the DSOs. Address data privacy cncerns, while ensuring a transparent and nn-discriminatry access t the data fr all market players. Develp standard systems fr editing smart meter data with different custmer interfaces (e.g. PC, TV, custm displays, etc.) and cnnected t smart appliances Cnsumer invlvement in the develpment and peratin f the energy system: Imprve public awareness f lng-term energy challenges and the need t build and prtect energy infrastructure t increase the scial benefit f energy use. Assessment f new envirnmental challenges and imprvement f the energy infrastructure land use and envirnmental integratin. Explit new channels fr the public cnsultatin prcesses.

9 Annex 3: Key input dcuments Strategic Energy Technlgy Plan - Twards an Integrated Radmap: Research and Innvatin challenges and needs f the EU energy system [ Cmmunicatins f the EC COM(2015) 80 final: A Framewrk Strategy fr a Resilient Energy Unin with a Frward-Lking Climate Change Plicy [ Cmmunicatins f the EC C(2015) 6317 final: Twards an Integrated Strategic Energy Technlgy (SET) Plan: Accelerating the Eurpean Energy System Transfrmatin [ SET Plan Declaratin n Strategic Targets in the cntext f an Initiative n Energy Systems [draft]

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