Klima-, Energi- og Forsyningsudvalget 2019-20
KEF Alm.del Bilag 456
Offentligt
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Smart Energy Systems
21 September 2020
Copenhagen
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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smartEn Introduction
smartEn is the association of market players driving digital and decentralised
energy solutions.
Our mission is to:
Promote system efficiency through the advanced management and integration of electricity demand and supply in homes and
buildings, transportation, businesses and decentralised energy projects.
Empower energy users by enabling them to participate in the energy market through flexible demand, storage, self-generation and
the participation in community projects, and giving them control of their energy data.
Encourage innovation and diversity by enabling new market players and energy service offers that provide attractive choices for
consumers and allow for healthy competition.
Drive the decarbonisation of the energy sector through the cost-effective integration of renewable sources and smart electrification
of heating, cooling and transport.
To do so, we:
create a cross-sectoral single voice for innovative market players driving digital, decentralised and decarbonised energy solutions,
advocate smart energy solutions with policymakers to realise supportive regulatory conditions,
communicate the benefits and potential of smart energy solutions to all relevant stakeholders,
produce crucial expertise that supports the business of our members and promotes our objectives to policy makers,
act as the central network for smart energy solutions for our members and other constituents.
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KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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Integrating the solutions for the clean energy transition
New
business
models
Opening up
markets to
flexibility
(Local)
flexibility
markets
Smart
Buildings
and Homes
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Opportunities for
every company,
car, and building
to support a
more variable
energy system
Smart
financing
E-mobility
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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Who is smartEn?
Executive Members
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Regular Members
Associate Members
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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Smart Energy Systems
The Prosumers
Four different types of prosumers that conform the Smart Energy
Systems from the demand side
Different objectives:
Self-consumption
Reduction of tariffs
Stable energy prices
Autonomy and resiliency
Community engagement
Social aspects, e.g. contributing to decarbonisation
Financial drivers to facilitate those objectives:
Feed-in tariffs
Regime of taxes and network charges (linked to the needs
of the grid)
Access to markets for aggregated and flexible loads
Benefits for society and energy system:
Decarbonisation
Reducing overall system costs (less infrastructure needed)
Increasing energy security and resiliency
Raising awareness (e.g. your neighbours solar panels or
Tesla)
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KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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Smart Energy Systems - Network Tariffs and Taxes
Market barrier: They make or break most
business cases for prosumers. One of the
main barriers for flexibility services.
Prices do not reflect needs of the grid,
congestion etc., not allowing customers to
properly valorise their flexibility.
Time-of-use tariffs are a key enabler. But
with a very limited impact if only applied to
the energy component, and if not linked to
the physical needs of the grid.
Time-of-use pricing if only applied to the
energy component and not the network
tariff, can provide contradictory signals,
raising the actual cost.
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Taxes play a similar blunting role: They are
high and they are constant, not linked to
energy usage and to the energy source (CO2
taxing).
Source: The smartEn Map Network Tariffs and Taxes 2019
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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Smart Energy Systems
Access to the Markets
Have a real market: both for DSO and
TSO products
Cohesive and interconnected markets to
not waste flexibility
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Low market entry barriers (e.g. lower
requirements for independent
aggregators)
Real Tech ology eutral (i cludi g the
technical prequalification in different
products)
Value-reflecting monetisation of
Demand Response: Include in the
remuneration the avoided costs and the
source.
Source: The smartEn Map European Balancing Markets Edition 2018
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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Value from system flexibility in 2030 (GB)
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Source: Imperial College for
Committee on Climate Change
2015
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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System value from smart charging in 2040 (GB, FR, ES, IT)
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Source: Batteries on wheels: the
role of battery electric cars in the
EU power system and beyond,
Element Energy, 2019
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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Way forward
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Reworking of Network Tariffs and Taxes: Link them to the problem they we are
trying to solve
Dynamic taxing (not only time-of-use, which can create congestion problems)
Link to the physical condition of the network and the energy source (dynamic CO2
taxing)
Time-of-use contracts are important, but it has to be applied both to the energy
component as well as to the tariff (especially when linked to the kWh consumed)
Market prices should reflect the real value of electricity, scarcity prices must be
possible, and the full value of flexibility should be reflected in electricity prices.
Create local flexibility markets: Take advantage of the Distributed Energy
Resources where congestions can happen (e.g. EVs).
TOTEX Based incentives for regulated actors (DSOs): Procure flexibility as an
alternative to network reinforcements. Switch from exclusive CAPEX
remuneration.
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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Smart Energy Systems
Going forward: Sustainable Prosumer Models 11
Identify the value prosumers
bring to society:
Decarbonisation
Lowering system costs
Energy security and
resiliency
Increased competition
Awareness and
engagement
Innovation
Inclusiveness
Do potential
prosumers have
access to all the
relevant information?
e.g. Price certainty
and transparency
How can prosumers
monetise the value
they bring to the
energy system
How can a smart
tariff and taxes
system support our
goals?
How do prosumers
interact with the grid,
their supplier or
ESCO?
Provide certainty
about the source of
their electricity
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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De
ark’s stre gths
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Electricity prices provide big incentives for prosumers
No governmental support mechanisms needed (feed-in tariffs or net-
metering)
Distributed Energy Resources expected to grow even without those
support mechanisms (Solar rooftop PV projected to grow by 100% in the
next three years, Source: SolarPower Europe GMO 2020)
Already experienced with dynamic tariffs
Innovative players already operating in the country (e.g. Nuvve)
First class knowledge and research teams on Smart Energy Systems at the
Technical University of Denmark (DTU)
KEF, Alm.del - 2019-20 - Bilag 456: Præsentationer fra høring om Smarte Energisystemer og sektorkobling mandag den 21/9-20
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Thank you for listening!
For further questions please contact:
[email protected]
For the full reports visit:
www.smarten.eu/mapping-the-
markets/