Roles and Responsibilities in Smart Grids Deployment: ETSI Expert Group 3 Insights

1. EU Commission Task Force for Smart GridsExpert Group 3: Roles and Responsibilitiesof Actors involved in the Smart Grids Deployment SamiaBenrachi-Maassam BouyguesTelecom ETSI TC M2M deleguate ETSI representative in EG3 Smart Grids Support : Margot DOR ETSI June 2010

2. Summary EG3 Status • Introduction, scope of work • Roles & responsibilities – currentstatus • Interfaces & Interactions • Benefits, criteria & recommendation for funding of Smart Grids • Roles & responsabilities – recommendation on scope, policy & regulation directions • Needs for new regulation -------------------------------------------------------------------------------------------------- ETSI Vision of Smart Grids

3. EG3 Introduction, Tasks & scope of work • Scope of work • Expected benefits from Smart Grids for their own organisation • Smart Grids features provided by their own organisation • Smart Grids features needed from other actors; • Defined decision criteria for the deployment of specific Smart Grids features; • Roles & responsibilities within their organisation relating to Smart Grids deployment; • Anticipated (or already identified from current/previous Smart Grid deployment) interfaces and interaction with other actors in the electric power supply chain required for Smart Grids deployment • The key deliverables • Development of recommendations on the roles and responsibilities of all involved actors in the implementation of Smart Grids • Definition of criteria and recommendations for the funding of Smart Grids deployment

4. Current State Influencers Grid User Customer Consumer Regulator Standard. Bodies EU and national authorities Financial Sector undertakings EnergyMarket Place Power Exchange/ Balance Responsible Party Clearing & Settlement agent/ Trader/Supplier/Aggregator GridUsers, Customers Generators, Suppliers, Retailers, Customers/Consumers: Industrial customer, Transportation customer, Buildings, Home customer • Providers of Technologies, Products and Services • Electric Power Grid Equipment vendors, • Ancilliary Services providers • Metering Point Service Providers • Metering Point Service Operators • Information & Communication Technology (ICT) service providers • Gridcommunicationsnetworkproviders • Home Appliancesvendors • Building Automation / Energy Management providers • Electric Transportation / Vehicle Solutions providers ETSI Network Operators Distribution System Operator (DSO), Transmission System Operator (TSO) Grid communication canbeensuredby TSO, DSO or ICTs 4

5. Interfaces & Interactions 1/2 • Electric Supply Chain: • Importance of the interaction between TSO and DSO • DSO interacting more frequentlythantodaywithTSOs, consumers and generator • Storage: • includeelectricalbatteryconnected to the grid • Interface between DSO and « Storage Owners » • Interface & interaction relation to Smart Metering(following3rd ElectricityDirective) • More flexible products: • higher flexibility and volatility in the electricity supply chain Most of roles & responsabilities are within the DSO Domain

6. Interfaces & Interactions 2/2 • Recommendations: • 9 recommendations has been endorsed by EG3 • 1 recommandation added by ETSI to emphasizethe roleof ICT and Communication Networks… • « Interfaces Recommendation #7: EG3 recommends interfaces to be specified between either of these entities and communication service providers:TSO, DSO, Agregators, Grid Users, BRP, Storage Owners. Theses interfaces are typical user to network interfaces and specify the agreed service level agreements which have a legal and technical part (QoS, security level, privacy, etc.)”

7. Benefits, Criteria and Recommendation for Funding of Smart Grids Deployment • Proposed process for elaboration of recommendations for funding • The EU Smart Grids has defined six priorities for the Smart Grids deployment in the Strategic Deployment • EG1 has adopted the key elements of this definition, describing them as the “high-level Smart Grids services” • A. Enabling the grid to integrate users with new requirements • B.Enhancingefficiency in day-to-day grid operation • C. Ensuringgrid security, system control and quality of supply • D. Better planning of future grid investment • E. Improving market functioning and customer service • F. Enabling and encouraging stronger and more direct involvement of consumers in their energy usage • 6 Recommandations have been endorsed by EG3

8. Roles & responsabilitiesrecommendation on scope, policy & regulation directions Influencers Grid User Customer Consumer & Smart Meters Regulators Standard. Bodies EU and national Legislation authorities Financial Sector undertakings GridUsers, Customers Generators SuppliersRetailers, Customers/ConsumersIndustrial customer, Transportation customer, Buildings, Homecustomer • EnergyMarket Place • Distributed Energy Resources • supplying customers that produce some of their electricity as well • new load profiles / flexibility measures should help retail suppliers to optimize their procurement from the energy market. EnergyMarket Place Power Exchange/ Balance Responsible Party Clearing & Settlement agent/ Trader/Supplier/Aggregator • Providers of Technologies, Products and Services • Electric Power Grid Equipment vendors, • Ancilliary Services providers • Metering Point Service Providers • Metering Point Service Operators • Information & Communication Technology (ICT) serviceproviders • Gridcommunicationsnetworkproviders • Home Appliancesvendors • Building Automation / Energy Management providers • Electric Transportation / Vehicle Solutions providers Providers of Technologies, Products and Services No clearactorsdefinedwithclear scope, howevernicestatements have been made: i.e « In addition, communication service providers will have to offer services addressing the electricity industry needs. Given the critical role of the electricity supply, communication service provides must ensure that their services deliver the required quality,security, privacy and reliability. This is specially requested under emergency conditions that may arise. Grid Services need to rely on maximum accessibility and coverage” NetworkGridOperators Distribution System Operator (DSO), Transmission System Operator (TSO) Need to futherdefineroles& actors in Providers of technologies, Products and Services 8

9. Need new regulation? • State of play of the EU Task force (expert Group) activities: findings and roadmap: • Thereis a needforstandardization, harmonizedapproachto all issues (technical, privacy / dataprotection, organisational, cross-issuesbetweenenergyand ICT, etc); veryimportant: INTEROPERABILITY • ThereisnoneedfornewDirectivesor Regulation but instead a needforharmonizedandeffectiveimplementationofthe 3rd Package • A rangeofconsumerrelatedissuesneedtobeaddressedaccordingly, mainly on implementing 3rd Package, includingappropriatemarketinstrumentsand: easierswitchingofsupplierorenergy form, consumerprotection, standards, dealingwith environmental issuesandputtingbenefitsofthattotheconsumers, etc; a particularlyimportantissueisa principleofprivacyby design implemented in the European law (e.g. dataminimization (useonlydatayouneedforapplication), deadlinesforstorageofthedata, proceduresofdeletingthedata, anonimization) • Strengten Support for RIGHT and SMART investmentandensureadquatereturn • Need to LEGALLY enable TSOs and DSOs tofulfilltheirduties (also mainlyimplementing 3rd packageandsometimescorrecting national framework)

10. EU Commission Task Force for Smart GridsETSI Vision of Smart grids SamiaBenrachi-Maassam: Bouygues Telecom ETSI TC M2M deleguate/ EG3 representative Omar Elloumi Alcatel-Lucent TC M2M Vice chair/ EG1 ETSI representative June 2010

11. Cross –Plane functions: E2E QoS & Security Management Functions M2M Architecture Smart grids concept – m2m architecture • Service Plane • Billing • e-Commerce • Data models • Subscription management and activation • Applications • Business processes • Connectivity plane function: • OAM-style functions (sanity checking of sensors) • Traffic engineering, protection and restoration, virtualzation, routing • Access technologies • Energy control plane function: • Substation automation, condition monitoring/diagnosis, supervision and protection • Time synchronization • Metering Service IP network Control & connectivity Aggregation, deaggregation • Energy Plane: • Sensors • Electric storage and interconnection • Transmission and Distribution Power Systems, etc. Energy

12. Involvementlevel of actors in Smart Grids Increasinglevel of Involvement