Exploring Smart Grids for Sustainable Energy: Pilot Projects by ČEZ Group

1. PILOT PROJECTS OF THEGROUP ČEZ IN THE FIELD OF SMART GRIDS ENERGY FOR THE FUTURE New energy for life 1

2. TABLE OF CONTENT • Visions • Expectations • Reality

3. SMART GRID CONCEPT TRADITIONAL POWER STATIONS (Non-renewable sources) WIND POWER ST. (Renewable sources) HYDRO-POWER ST. (Renewable sources) PHOTOVOLTAICS (Renewable sources)

4. WHAT IS A SMART GRID? • It is a next evolutionary step of DISTRIBUTION SYSTEMS evoked by new requirements – decentralised generation, e-mobility, …, which elicited the necessity of new functionalities of DS to ensure the implementation of such new requirements while providing reliable and safe operation of DS … • This was implemented many years ago through the Control Centre of the Power System at the level of VHV, HDO [power supply with ripple control] also at the level of LV • SO WHERE IS A PROBLEM? • It concerns a system change – not a gradual technology development at the level of individual components – it requires huge financial sources & long time • Task definition: what functionalities are meaningfulor economically beneficial in the Czech Republic and in what time – from the perspective of the whole society and not from the perspective ofgrid operators • What is the extent and reasonable schedule of Smart Grid implementation?

5. CONDITIONS FOR MEANINGFUL DEVELOPMENT OF SMART GRIDS • Definition of realistic goals (in the form of service parameters), including the assessment of impact on power prices for end consumers • Harmonisation of requirements and options of customers, market environment, subjects of regulation … and related laws of physics • Acquirement of know-how and experience • … • Definition of realisticimplementation program – balancing of capacities, financial funds, agricultural terms, … • Creation of the national concept of meaningful development of Smart Grids within the current situation of the Power System of the Czech Republic

6. SMART GRIDS ARE JUST A VISION ? • Development of integration of renewable sources in the Czech Republic • e-mobility projects • Praha (Municipality) • PRE, ČEZ, E.ON (Utilities) • Possible future development in heating industry • Implementation of co-gen units

7. ČEZ IMPLEMENTS TWO SMART GRID PILOT PROJECTS Smart Region Smart Metering – AMM • Implementation of smart monitoring and automated elements in DS • Connection of various renewable energy sources and co-gen units • Tests of grid control concepts, island operation mode, e-mobility, active role of customer, etc. • Implementation in 2010 - 2015 • Implementation of 32,000 units of Smart Meters • Implementation of AMM infrastructure, connection with ICT systems of the Group ČEZ • Basis for nation-wide feasibility study • Implementation in2010 – 2013 +

8. PILOT PROJECT OF SMART METERING - AMM

9. Situation of smart meter implementation in CZ • Initial situation in the Czech Republic differs from other EU countries in many aspects : • Remote reading of 60 % of all power consumption is in use at 38,000 industrial power consumers equipped with so called “continuous” electricity meters [meters with averaging of respective power output within a specified metering interval; data are transferred automatically] • HDO system [power supply with ripple control] is widely in use in the Czech Republic since 1980-ties • HDO system serves for daily load diagram balancing - by shaving power consumption peaks; this system has been implemented by ČEZ Distribution for its 1.1 million household power consumers • This system is in use for those consumers which utilise power for heating and hot service water preparation – various preferential [low] tariffs are available for such consumers • Quality and reliability parameters of power distribution grid are at high-standard level

10. What are the goals of AMM pilot project • The purpose of AMM pilot project is to test a new technology in a real environment and to get answers to the following questions: • Smart meters: how will they be accepted by customers? • What is the potential of customer behaviour change? • Newly offered products and services: how will they be accepted by customers? • Possible total implementation of AMM in CZ: what will be its impact on logistics and processes? • What are the real benefits and costs of complete solution? • What implemental, operational or safety risks can emerge? • Can we get real and credible data or information for future decisions?

11. PILOT PROJECT SMART REGION

12. Why a Smart Region at Vrchlabí? • Adequate size and extent of the region for the pilot project purpose • Possibilities to include several co-gen plants and potentially also some small hydro power plants • With its close distance to Krkonoše Natural Park and stress on environment conservation, Region Vrchlabí is ideal for the concept of e-mobility • Synergic effect of high voltage level unification (change from 10 → 35 kV) • Helpfulness of Municipal Council and Mayor of Vrchlabí • Potential to include local industry (Teplo Krkonoše [a heating provider], nkt cables)

13. What are goals and orientation of Smart Region Project?

14. Pilot project Smart Region • Research and development study • Implementation of smart meters • Transformation of distribution grid in the region (in particular HV and DTS) including their unification • Deployment of charging stations for e-mobility • Implementation of new automation and monitoring elements • Control system with implementation of Smart Grid elements • Inclusion of co-gen plants • Island operation mode testing within the locality Liščí Kopec • 2010 - 2012 • 2010 - 2011 • 2011 - 2015 • 2011 - 2013 • 2011 - 2014 • 2013 - 2015 • 2012 - 2015 • 2014 - 2015 What is the planned project development?

15. What was done by ČEZ within Smart Region project during previous year? Cooperation with universities and research institutions • ČVUT Praha / FEL • VŠB – TU Ostrava / FEI • EGE České Budějovice • Technical studies: • Final architecture of technological solution • Automated grid elements • Dynamic model of grid performance • Island operation mode • LV protection - full automation • LV protection - partial automation • Final concept of ICT solution

16. What was done by ČEZ within Smart Region project during previous year? Laying of new high-voltage cable line

17. What was done by ČEZ within Smart Region project during previous year? Implemented operation of e-vehicles and e-buses

18. What was done by ČEZ within Smart Region project during previous year? Installation of smart meters

19. Smart Region in 2012 • Power generation units • Installation and putting in operation of co-gen units • 800 kW in former AZ plant • 1600 kW in nkt cables for power supply of Liščí Kopec – for creation and testing of island mode operation • 1600 kW in nkt cables for plant operation • E-mobility • Deployment of charging stations for quick and standard charging

20. Smart Region in 2012 • Continuing HV cable replacement • Laying of LV cables at Liščí Kopec • Installation of LV splitting boxes with remote automation and control elements • Installation of new transforming stations at Liščí Kopecwith remote automation and control elements

21. GRID4EU Large-Scale Demonstration of Advanced Smart GRID Solutions with wide Replication and Scalability Potential for EUROPE European Smart Grid Projectstarted on 1.11.2011 Under the leadership of 6 distributors who cover more than 50 % of consumers in Europe 27 partners (suppliers of technology, universities, research institutions) Schedule: November 2011 - November 2015 Project coordinator: ERDF

22. GRID4EU – LOCAL DEMONSTRATIONAL PROJECTS

23. CONCLUSION • To cope with future (not virtual) reality, it is necessary to maintain visions sufficiently ahead of time and set real expectations adequately. • Smart grids are not only a technological layer – they should be perceived as new functionalities / services at the level of whole society • It is the task of society to define a meaningful and economically viable scenario of development • It is the system matter – it is necessary to keep the dialogue of all participating players • Even when having a very conservative view on the matter, it is necessary to start concept activities TODAY