New Technologies: Threat or Opportunity?

1. Do We See New Technologies as a Threat or an Opportunity? Špindlerův Mlýn, 17.4.2013 Martin Michek

2. Energetics - an Integral Part of the Present „Energy is what setseverything in motion.” Aristotle Energy is the driving force behind progress

3. From Where Do We Gofrom a historical point of view, energy is a very young invention • 1799 – inventionofthefirstbattery – Alesandro Volta • 1881 - first public bulblighting was installed in England and the USA • 1887 - first urban lighting in the Czech Republic – JindřichůvHradec and shortly afterwards Písek • 1919 - act of power companies establishment. Formation of 20 power companies • interconnected transmission system - western and eastern cooperation • 1963 – entry of Czechoslovakia into the system called MIR • 1995 - interconnection with Western European system after meeting a number of technical conditions for the operation of the grid and change the principle of regulation of turbines in power plants Currently, electricity is a common and essential part of people's lives.

4. Where Are We?direction from a small decentralized energetics into a centralized system great resources transmission system customer distribution system central control of balance in power system

5. Where Are We Going?What are the influences on the power system in the Czech Republic? • SuperGridconstruction (Europe, Asia, Africa) • reduction of control performance EHV and HV • local production increase/ RES • e-mobility, cooling systems, control systems • electricity storage • retreat from the energy-demanding appliances Logan CHP unit designed to produce electrical current (19 to 240 kWe) and heat (34 to 374 kWt) Škoda Octavia Green E Line Siemens containers for electricity storage

6. What Are WeAfraid of? What are the requirements for the delivery of EE? ASEK Supply and quality guarantee is ensured by network operators EE's competitivenesswith other energies RES - unstableproduction / not guaranteed buildingofanyresources in the basic and the peak band unpredictableoverflowofelectricityfromabroad increasing trend of blackoutsrisk

7. Electric Energy – Guaranteed Service- rising of supply quality

8. Influences of the EU The solution for the Czech Republic - goingits own way, setting its own meaningful concept focus on savings 20/20/20 liberalization of the electricity market today - the green lobby, decarbonisation      - growth of energy prices (ETS, RES, CCS, ...) National studies AMM (Directive No. 72/2009/ES and No. 73/2009/ES) Energy Efficiency Directive (2012/27/EU) pressure to increase the RESshare (30%)

9. My Point of View ? Do only those steps that will bring us added value buildingintelligent systems as an integral part of network systems benefits for the whole sector - balanced approach pricesof new technologies are falling, prices ofoldtechnologies are rising quality of new technologiesgrows the existence of a certain degree of standardization (interoperability ....) standardization of the wholesolutioncan not beexpected

10. Balanced Environment? - benefits for the whole energy sector • PUBLIC • blackoutprevention • enviromentalbenefits • DISTRIBUTOR • reducing negative impacts on the DN • increasing operational efficiency DN • ENERGY REGULATORY • AUTHORITY • implementation of EU directives and ASEK • higher targeting accuracy and control • CUSTOMER • higher quality and stability of supply • new possibilities for Smart Home • ELECTRICITY MARKET OPERATOR • higher data granularity • higheraccuracy, TDD compensation • DEALER • new business tariffs • new approaches to changing population DN = Distribution network

11. Problematic Area of AMM Implementation in the Czech Republic • reliability of the technical solution under conditions for the Czech republic • ensuring full compensation / cooperation with HDO • ensuring the security of the transmission and dataprocessing • solving of power problem ofdelivery points • improving mobile operators´network / guarantee • uniform standard of measurement and communication technologies / interoperability

12. Which Way Forward? change of engineers´ thinking, customers raise public awareness dynamic management of LV, MV, HV suspensible power management, cooling, e-mobility, storage shift in management onto meters into smaller geographic units, greater decentralization local / island operation installation of important points DSN- DS, production, nodal points preparation for future implementation of AMM under suitable conditions for the Czech Republic

13. Condition ofBuilding a Linked Central Management System

14. Implementation of Intelligent Systems in Substations 2013 1920 2010 1950 1990 manual operation with continuous process monitoring service, implementation of new technologies simulation of optimal operation / service support operation automatization with supervision of theoperators automatic operation

15. What Will ItGive Us / What CanWe Achieve ? Short-term horizon distributionsystemmonitoring at nodalpoints optimization of load area network elements identification of weakpoints prediction of failure status higher operational efficiency of distributionsystem Long-term horizon simulation ofconditions in distributionsystem suitablelevelof operationalautomation

16. Impacts on the ElectricityIndustry • NEGATIVE • consumtioncontrolfor EHV • consumtioncontrolfor HV • static takeoffcontrol • financialcompetitiveness • localproduction • energyoverflows • resourcerecovery • resourcemixture • unbundling • energysavings • POSITIVE • localcontrol • electromobility • newtariffs (SM) • LV dispatching • monitoring • simulation • highersupplyquality

17. Is It Time ??? higher targeting ofcapital expenditures reducingthe range of operatinginterventions higher efficiency and quality ofsupplies increasingofreturn on invested capital