CED E C Gert De Block Secretary General

1. Electric Vehicles ConferenceBrussels, January 16th 2012Challenges of integrating electric vehiclesinto the energy infrastructureFocus on DSOs requiring smart grids for optimal EV integration CEDEC Gert De Block Secretary General

2. CEDEC Missions • Representthe interests of local and regional electricity and gas companies in Europe • 2000 companies • 100 billion € total turnover • 250.000 employees • 75 million customers & connections • Exchangeexperiences and best practices on the different processes in the electricity and gas market • Seat in Brussels, since 1992 – www.cedec.com

3. Characteristics of CEDEC companies • Essential players in competitive energy markets : No competition without competitors • Active in every part of the value chain, striving for citizen’s value : Generation, network operation, metering systems, supply, energy (efficiency) services • Small and medium sized energy companies with local shareholders: Key actors for regional economic development, local investments and jobs • Partners in the realization of environmental objectives : Investments in local sustainable electricity production, efficient and smart grids, and energy efficiency services

4. Challenges of integrating electric vehiclesinto the energy infrastructure OUTLINE • DSO as the enabler of Smart Grids • EU initiatives • Charging concepts for EV – Impact on distribution • DSO initiatives in practice • Conclusions

5. What comes first : Cars or infrastructure? 5

6. 1. DSO as the enabler of Smart Grids • EU targets for 2020 and 2050 : CO2 reduction !  Ambitious targets for Energy efficiency & Renewables  Decentralized generation (wind / PV / …) ! + Storage ? • DSO must guarantee grid stability & quality of supply  Demand side management by DSO needed  DSO operates grids and meters, and manages data  DSO is the enabler of the Smart Grid development. • Link between Smart Grids and EV : DSO needs detailed information on EV charging (through metering) & impact on EV charging (through control over charging infrastructure) to manage load peaks.  Avoid inefficient expensive investments in distribution grid !

7. 2. EU Initiatives • CARS 21 Latest report of December 2011 refers to FTF 2. Future Transport Fuels (FTF) • FTF = part of Clean Transport Systems (CTS) initiative Objective : reduction of CO2 of 80-95% by 2050  Accelerating market uptake of alternative fuels & vehicles in all transport modes • Mandate of the Expert Group : • Assess market potential, technological issues, economic viability, industrial implications, (…) of different fuels considered; • Systematically consider factors that could affect long term viability of alternatives including security of supply (…); • Recommend actions and policy measures towards full substitution of oil as transport fuel.

8. Expert Group on Future Transport Fuels (FTF) 1st report of Expert Group - April 2011 - Extracts Potential of electricity as a transport fuel : • Decrease CO2 emissions of transport given the continuing increase of RES in EU power generation mix; Transport mode : • Electric drive technology has the greatest potential for sustainable short to medium distance road transport over the long term Economics : • EV supply needs grid connection points for charging at different power. • Infrastructure for slow-charging (most at home) not very expensive; • Small number of additional fast-charging points required (…)

9. Expert Group on Future Transport Fuels (FTF) 1st report of Expert Group - April 2011 - Extracts Legislation : • Harmonized standards for plugs, batteries, power transfer and information exchange between EV and electricity grid to be established and implemented EU-wide; • Infrastructure for charging EV could be built up EU-wide to encourage the market take-up of electric vehicles and allow free circulation in Europe. R&D support : • Key components of electric vehicles : batteries, on-board power management, systems for vehicle-grid interaction and infrastructure impacts should be supported in research and integrated demonstration projects.

10. Expert Group on Future Transport Fuels (FTF) 2nd report of Expert Group – Infrastructure for Alternative fuels December 2011 - Extracts What policy options would be most suitable? • Market forces alone will not deliver the required public infrastructure because for the moment, no commercially viable market models are being identified; • During the transitory phase of market development, it might be advisable that the DSOs play a central role in this effort in order to ensure a minimum coverage; • Once market maturity is reached, a careful assessment of the regulatory models across Europe is needed to ensure an effective and efficiently functioning market for the charging infrastructure.

11. Expert Group on Future Transport Fuels (FTF) 2nd report of Expert Group – Infrastructure for Alternative fuels December 2011 - Extracts What standards need to be developed ? • Common standards to allow all battery EV to be charged and to communicate with the grid and with all types of chargers in EU; • (…); • single interface solution to be adopted by all market players (including DSOs), to ensure interoperability and connectivity ; • a binding target for a minimum coverage of charging points to be based on this common interface. • Standardizing communication protocols, enabling data communication, safety issues, billing/payments, (…) need to be intensified

12. 3. Charging concepts for EV – Impact on distribution Impact of EV charging on management of smart distribution grids : • Energy consumption - Charging of EV allows and requires flexibility : • Shift the charging in time • Vary the charging power • Charging time <= max charging time & <= parking time • Energy storage – “Vehicle to grid” Will commercial initiatives for charging infrastructure guarantee geographical coverage ? Will commercial initiatives for charging infrastructure and their pricing policy take into account the punctual needs for grid stability ?  Central role for DSOs in developing charging infrastructure ?

13. 3. Charging concepts for EV – Impact on distribution Positive impact of linking EV & DSO with smart grids :  Use renewable energy source when available : • Reduce impact of excess renewable energy (local / national) • Increase renewable sources installed • Reduce variation in centralized electricity production • Contribute to security of supply on distribution grid • Limit investments in additional grid capacity • Extend lifetime of distribution grid infrastructure (transformers / cables)

14. 4. DSO initiatives in practice 4.1. The Netherlands : national initiative by DSOs – « E-LAAD » 4.2. Germany : city initiative, accompanied by DSO 4.3. Belgium : « Linear » – R&D project

15. 4.1. The Netherlands : « E-LAAD »

16. Tasks of parties involved Government Formula-E team Connect & meter responsible Placing chargepoints Buying electricity Selling charging-cards Arrangements with local government Exchange data Foundation e-laad.nl Gridcompanies Branche organisation Netbeheer Nederland Brancheorg. Energie Nederland Developingmarket model Standardisationagreements Cooperativedevelopment generation & supply 16

17. Criteria Only public terrain (local authorities, Ministry of Transport, Public Works and Water Management) Chargepoints are for everyone accessible One chargepoint per 10,000 inhabitants 10/15 major cities frontrunners Chargepoint follows car (8,000) One charging card per Electric Vehicle (€100/y) 17

18. Current market model Production / Balancing /Retail € Consument E € TSO / DSO € Chargepoint Customer E € E Metering E

19. Provider model Customer Chargepoint owner Production / Balancing /Retail € € E E € Chargepoint Operator TSO / DSO ID € € E Provider € Metering E Periodic settlement ID check Clearing and settlement 19

20. 4.2. Germany : city initiative, led by DSO • Modelstadt Aachen : City of Aachen, in close cooperation with local utility Stawag • Smart grid : managed by Stawag • Smart meter : open to competition • Charging station : open to competition

21. 4.2. Germany : Stadtwerke Aachen

22. 4.3. Belgium – Linear Project • Linear = Local Intelligent Networks and Energy Active Regions • Large scale research project on smart grids in Flanders (2009 – 2014) : • Link with Smart Meter projects of DSOs • Deals (also) with charging of electric and plug-in hybrid EV connected to residential distribution grids; • EV are deployed as flexible loads to balance electricity supply and demand; • collect knowledge on the EV electricity demand (Energy, Power, Time)  design smart charging strategies. • Goal : balance supply and demand, increase self-consumption of locally generated renewable energy and guarantee power quality.

23. 5. Conclusions • DSO plays central role in the development of smart grids :  DSO needs detailed data on consumption (including EV charging) and on production (including EV storage);  DSO plays crucial role in metering and data management. • Role for DSOs in development of EV charging infrastructure ? Will only private initiatives guarantee geographical coverage and energy-efficient pricing policies ? • Need for a clear legislative and regulatory framework, combined with European standards • Need for transparent exchange of results of EU funded research and demonstration projects, and exchange of best practice