Claire Bergaentzlé Université Grenoble- Alpes PACTE-EDDEN, CNRS

1. FROM SMART TECHNOLOGY TO SMART CONSUMERS: FOR A BETTER SYSTEM RELIABILITY AND IMPROVED MARKETS EFFICIENCY. Claire Bergaentzlé Université Grenoble-Alpes PACTE-EDDEN, CNRS 32d USAEE/IAEE North American Conference July 28-31 2013, Anchorage, AK. claire.bergaentzle@upmf-grenoble.fr

2. Smart grids are alwaysdesigned in response to the specificenergy objectives faced by the countries. No unique model. • The scope of regulators in setting the regulatoryframework for smart gridsinvestmentswilldependuponorganizational structure issues. • Whatisrecognized as best regulatorymechanisms by the litteratureisrarelyadopted. This canlead to inefficiencies in the process of adopting the technology

3. 1/ Four examples to illustrate four smart grids objectives 2/ Organizational issue and the scope of the regulator 3/ Confronting real world regultorymechanisms to best practices

4. 1/ Four examples to illustrate four smart grids objectives : the drivers for SG investments • California • Illinois • UK Germany DSM Remote control and monitoring DSM & Smart meters Remote control and monitoring Smart meters Remote control and monitoring Remote control and monitoring DSM

5. 2/ Organizational issue and the scope of the regulator

6. California Illinois Integrated distribution and retailsupplyactivity Integrated distribution and retailsupplyactivitywithopenretailmarket Germany UK • Supply & meteringactivitiespartiallyseparated • Supply & meteringactivitiesfullyseparated

7. 2/ Organizational issue and the scope of the regulator • California • Illinois • UK Germany DSM Remote control and monitoring DSM & Smart meters Remote control and monitoring Smart meters Remote control and monitoring Remote control and monitoring DSM

8. 3/ Main elementscharacterizing a smart gridsorientedregulation: • 1: Classicalroles of regulation : • Provideincentive for enhanced productive/innovativeefficiency • Extract part of the efficiencyrent (limit the impact of information asymetry) • Enhance the quality of the utility. • 2: Smart grids objectives-relatedregulation : coherencebetween the regulatoryframework and the first drivers for SG investments • Energyefficiency in California, • RES and DG integration in Gremany • The adoption of smart meters for RTP in Illinois • The elimination of DNOsforclosue and the stimulation of retailcompetition in the UK

10. Concludingremarks: It is paramount to have a stable long term smart grid strategy and to keep a coherence between the stated objectives and what is implemented. Questions the role of politics over the different mandates. Tradeoff between incentives to invest and incentives to reach a higher level of efficiency. With the multiplication of countries adopting SG technology, more stringent efficiency incentives should be implemented as regulators obtain feedbacks and learning effects. Smart grids technology, independently from its first purpose of adoption is likely to enhance the performance and quality of the grid. This should in turn translate into strengthened performance-based financial incentives. Avoid too numerous and burdensome metrics. The question of smart grid technology « behind the meter » has to be studied through its effects on new entrants, particularly on countries where the process of market opening is underway (California).

11. FROM SMART TECHNOLOGY TO SMART CONSUMERS: FOR A BETTER SYSTEM RELIABILITY AND IMPROVED MARKETS EFFICIENCY. Claire Bergaentzlé Université Grenoble-Alpes PACTE-EDDEN, CNRS 32d USAEE/IAEE North American Conference July 28-31 2013, Anchorage, AK. claire.bergaentzle@upmf-grenoble.fr