ENERGISE Telecom & Energy Collaborating to Power the ......2 28.02.2017 ICT-based ENERgy Grid Implementation –Smart and Efficient (ENERGISE) Agenda 1 Overview ENERGISE 1.1 General

ENERGISE

Telecom & Energy Collaborating to Power the

Smart Grids for Digital Growth

Expert Group Meeting

ITU Headquarters, Geneva, Switzerland, 28.02.2017

28.02.20172 ICT-based ENERgy Grid Implementation – Smart and Efficient

(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1

Survey among Telcos & DSOs1.2

Case Study examples1.3

ENERGISE toolkit2

Overview2.1

Functions & Usability2.2

Data content overview2.3

Implemented analysis 2.4

Conclusions & outlook3


(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1



ENERGISE toolkit2

Overview2.1





ENERGISE – Project Overview / Introduction

4

Framework:

CSA – Coordination and Support Action for the Horizon 2020

Call on Low Carbon Energy LCE 7 - 2014 - Distribution grid

and retail markets

General Question:

ENERGISE considers the relationship between utility owned and

operated telecommunications infrastructure and the use of

commercial services. Thus, the main question is: how will the

future ICT infrastructure for smart grid applications look like?

Timeline:

Start: 01/2015 – end: 03/2017

Project Partners:

TÜV Rheinland Consulting

WIK

ICT-based ENERgy Grid Implementation – Smart and Efficient

(ENERGISE)

Funded by: EUROPEAN COMMISSION

Directorate General for Communications Networks, Content and Technology

Sustainable and Secure Society

Smart Cities and Sustainability

28.02.2017

Project outcome:

• A decision support toolkit was developed to sum up and

analyze all data and the case studies collected during the

project. It consists of 50 application cases from 16 different

countries.

New applications are increasing the

demand for communication and data

exchange in grids.

ENERGISE – Context


(ENERGISE)

5

1. Starting Point 2. Arising Problem

Differences between sectors make

synergies hard to exploit.

3. Core Question

How can cooperation between energy

and communications sector be

achieved?

28.02.2017

ENERGISE – Objectives


(ENERGISE)

6

4. Solution Concept

Identification of the relevant

stakeholders

Analysis of the current state of play

and assessment of

case studies and best-practices

Provide information and support the

decision making processes

Support the exchange of

hands-on-experience

28.02.2017

ENERGISE – Timeline


(ENERGISE)

7

Establishing Contact with Stakeholders

Survey on co-operation

Case Study Collection

Tool Development

Consultation

1st Year 2nd Year

Final tool

database

28.02.2017

ENERGISE – European Coverage


(ENERGISE)

8

Use-Case Survey Case Studies

DSO and Telco Company

DSO or Telco Company

No DSO or Telco Company

Case Study already conducted

No Case Study so far

Case Study in process

28.02.2017


(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1



ENERGISE toolkit2

Overview2.1





Use Case Survey Results I

Key Findings

Sector borders continue to blur

- DSOs becoming active in the

field of communication

- Telcos providing energy services

Technological issues are not the driving problem

No perceived political demand for co-operation

Organisations which don´t have any smart grid activities seem

to underestimate the importance of criticality of infrastructure

Various asymmetries between the main industrial actors

- Perception of competition

- Pace of innovation implementation


(ENERGISE)

10

There are various hurdles but also huge potential when considering

co-operation and infrastructure sharing between the different sectors

Statistics

Respondent Groups:

- DSOs

- TSOs

- Utilities

- Communications Providers

- Manufacturers, Research, Other

Number of responses: 294

Number of DSO & Telco participants: 130

Engagement in Smart Grid projects: >75%

Smart Grid project in the future: >88% (99% of DSOs)

Use Case Survey Results II

Co-Operation

Reasons

- Faster Implementation

- Synergy effects during deployment

- Synergy effects during operation

- Financial Pressure

- Increased customer access (DSOs)

- Strategic strengthening (Telcos)

Hurdles

- Unclear regulatory responsibilities

- Difficult liabilities and responsibilities

- Unclear market design


(ENERGISE)

11

Infrastructure

Sharing

- Better utilization of existing infrastructure

- Synergy effects during operation

- Synergy effects during deployment

- Financial pressure

- New revenue options

Separation

- Criticality of infrastructure

- Data security

- Clear liabilities and responsibilities

Shared infrastructure is preferred

(exception: security and system control)Cooperation is strongly preferred


(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1



ENERGISE toolkit2

Overview2.1





Case study example I

13

Starting point

Huge amount of outages due to weather impact etc.

Lines are mostly in wood trenches -> huge amount of outages

Current Situation:

Motivated by the need to ensure electricity supply, which is critical for a modern society as well as by investment deficit

The distribution network must be planned, built and maintained so that the failure of the network as a result of a storm or snow does not cause a power outage of more than 6 hours to customers in urban areas and more than 36 hours to those in other areas.

Set requirements for the security of supply for the transmission grid and high-voltage distribution networks. A general obligation of preparedness will also be set for grid owners in case of disturbances and emergencies.

The standard compensation payable to customers for power outages will be increased.

Legal obligation to “weather prove” the grid. Result is a huge activity to replace overhead lines with cables (approx. 200 km of trenches per month and an increased invest)

Overall 15 contracts with ICT providers to operate the grid and smart meter readout

Solution approach:

Goal is to have one provider with a turnkey solution for all communication demands.


(ENERGISE)

Percentage of the power lines located in

forests.

Crown snow-load has bent a tree onto

overhead lines.

Sources: ENERGISE; Kim Forssén, Aalto Univesity 2016 after Tapio; Kaleva.fi, 2013

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Case study example II

14

Today, spectrum is the key to escape the no “electricity/no telecommunications” vicious circle

Starting point:

Infrastructure for Smart Grids & mission critical services

Encountered problems:

Utilities (especially DSOs) need telecommunications services that are : Reliable, Secure, Cost effective,

Resilient

Additional requirements are added for mission critical services, e.g.: Coverage (important RTUs even in remote

areas), Latency (for safety reasons), Security (physical separation of critical data), Resilience (to escape the

vicious circle “no electricity/no telecommunications”)

Geospatial asymmetries between DSO and Telcos

Solution approach:

Operation of a private 70 MHZ radio network in addition to the mobile phones used by technicians on the field.

Today, it is the key to escape the no “electricity/no telecommunications” vicious circle

Systems suitable for Smart Grids, e.g. to include at least the following essential criteria: very high link

availability, >30km link lengths, priority access, stringent end-to-end latency requirements, coverage to remote /

unpopulated areas, licensed self-managed spectrum in a variety of bands (e.g. 400 MHz [including the FIXED /

MOBILE sub-bands that have a European Common Allocation for Mobile systems and] 1400 / 1500 MHz)

Sources: ENERGISE; ENEDIS


(ENERGISE)

Case study example III

15

“Current telco services and products do not fulfil the DSO´s demand”

Starting point:

Demand for communication connections in remote areas

Encountered problems:

Service level agreements (SLA) are focused on mobile customers, not operators of critical infrastructures

- Unscheduled downtimes and service interruptions for maintenance

- Long response times, especially during non-working times

Changing coverage range from mobile cells depending on the number of connected clients

No, or not reliable, redundancy of connection lines and equipment

Missing financial incentives for “smart” investments (CAPEX favoured over OPEX)

- Additional investment in secondary equipment with different depreciation periods

- Additional training for technicians is required

“DSO as a customer not attractive enough, to justify adapted services”

Solution approach:

Implementation of communication services entirely in-house.


(ENERGISE)

28.02.2017


(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1



ENERGISE toolkit2

Overview2.1






(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1



ENERGISE toolkit2

Overview2.1





What is the ENERGISE Toolkit?


(ENERGISE)

The purpose is to provide tangible and

practical guidance for the respective industries

for solutions regarding coordinated usage and

deployment of communication infrastructure

Case study based representation

of the existing implemented solutions

(25-30 cases)

Analysing the drivers for specific solutions

and factors that determine best practices

Comprehensive compilation of existing

and feasible solutions for cross sector

cooperation on a European scale

Five relevant fields of activity for cooperation between telecoms and utilities

Smart metering

(electricty) Network

operation

Infrastructure sharing

Joint deployment

Development ofnew productsand services

28.02.201719

Relevant fields of cooperation to cluster application cases for utilities


(ENERGISE)


(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1



ENERGISE toolkit2

Overview2.1





ENERGISE – Toolkit Description

Tool Structure

All project outputs

Use cases description with additional background

information

Morphologic analysis and decision tree

Additional reports and general background

information


(ENERGISE)

21 28.02.2017


Case Database

Select an use case

By number

Or filter by country / characteristics…

Edit the selected use case

Ad a new use case

Print the selected use case


(ENERGISE)

22 28.02.2017


Case study

Country specific Factors

General information

Energy regulation

Telecommunication regulation

Smart grid and smart metering policy

Company Specific Factors

Use Case specific information


(ENERGISE)

23 28.02.2017


Use case additional information

Additional detailed information

Explanation of the chosen characteristics


(ENERGISE)

24 28.02.2017



(ENERGISE)

25

Description of search function

Search for any specific factors / items / content

(e.g. show all application cases for “smart metering”

Link various search options

(e.g. show all application cases for “smart metering” in

countries that match certain criteria)

Analyse the relative similarity of one implemented

solution with others

28.02.2017


(ENERGISE)

26 28.02.2017


(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1



ENERGISE toolkit2

Overview2.1





Toolkit – Data available per Case Study (Overview)

28

Country specific factors


(ENERGISE)

Data categories

1. General aspects

2. Country specific sector information Energy

3. Smart Meter Framework

4. Smart Grid Framework

5. Country Specific Sector Information Telco

Data sub-categories (example)

- Smart meter roll-out

- Smart meter roll-out market model

- Expected diffusion rate of smart meters by 2020 (%)

- Responsible party - implementation & ownership

- Financing of roll-out

- Share of metering points equipped with smart meters

- Metering data-model

28.02.2017


29

Company specific factors


(ENERGISE)

Data categories

1. General data

2. Company size

3. Degree of Vertical Integration (Telco)

4. Degree of Vertical Integration (energy)

5. Organizational structure

6. Market activity


- Own Infrastructure (telco)

- Network Operator (telco)

- Content Services (telco)

- Retail and Distribution (telco)

28.02.2017


30

Application specific characteristics


(ENERGISE)

Data categories

1. Application types

2. Starting point

3. Decision criteria (for the selected solution)

4. Solution Description


- Type of Cooperation/interaction

- Implemented solution

- Main obstacle

- Mitigation strategies

- Cooperation Addressee 1&2

- Partner within the same Company group

28.02.2017


(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1



ENERGISE toolkit2

Overview2.1





Results from the toolkit analysis

32

Degree of envisaged asset ownership is key for decisions


(ENERGISE)

Traditional approach:

- Own infrastructure

- Operated with own staff

Operator model:

- Own ICT-infrastructure

- Operated by 3rd party

Communication as a Service:

- No own infrastructure

- Operated by 3rd partyOperation

3rd partyown

No

ow

n

assets

Fu

ll

ow

ners

hip

As

se

t o

wn

ers

hip

Operator model

Communication as

a service

Traditional approach

N / A

28.02.2017

Results from the toolkit analysis

33

How important are utilities for telco‘s revenue? Asymmetric Valuation of Commercial Services

and strategic lock in effects affect decisions


(ENERGISE)

Strong „lock-in“ effect

„small customer“, high requirements

Failure due to communication

infrastructure or service

Loss for Telco Provider

Loss for DSO

Telecom operator 1 Telecom operator 2

Voice Voice + Data DSO

Revenues for telecoms

28.02.2017

34

Toolkit Analysis: Criteria for technology evaluation

4 3 2 1 0

Standardization Fully Good Reasonable Hardly Not

Spectrum Available high probability balanced low probability Not available

Life time > 15 years 10-15 years 7.5-10 years 5-7.5 years 5 years

Ecosystem > 10 6-10 2-5 1 0

Coverage 99-100% 90-99% 80-90% 50-80% < 50%

CAPEX Very low Low Average High Very high

OPEX Very low Low Average High Very high

Reaction time Fast Good Reasonable Slow Too Slow

Control DSO full DSO good DSO reasonable DSO hardly DSO not

Vendor Lock-in Very low Low Average High Very high

Applications > 10 6-10 2-5 1 0

Availability Excellent Good Reasonable Moderately Very bad

Scalability Excellent Good Reasonable Moderately Very bad


(ENERGISE)

35

ENERGISE – Toolkit Analysis: criteria for technology evaluation

Most relevant for critical infrastructure

4 3 2 1 0

Standardization Fully Good Reasonable Hardly Not

Spectrum Available high probability balanced low probability Not available

Life time > 15 years 10-15 years 7.5-10 years 5-7.5 years 5 years

Ecosystem > 10 6-10 2-5 1 0

Coverage 99-100% 90-99% 80-90% 50-80% < 50%

CAPEX Very low Low Average High Very high

OPEX Very low Low Average High Very high

Reaction time Fast Good Reasonable Slow Too Slow

Control DSO full DSO good DSO reasonable DSO hardly DSO not

Vendor Lock-in Very low Low Average High Very high

Applications > 10 6-10 2-5 1 0

Availability Excellent Good Reasonable Moderately Very bad

Scalability Excellent Good Reasonable Moderately Very bad


(ENERGISE)

28.02.2017


(ENERGISE)

36

Private MVNO

Full Public MVNO

Build and operate

own MVNO

Solution for Smart

Meter roll-out needed

Own TelCo assets

No TelCo assets

Challenge: roll out of large

volume of smart meters with

long term contract (~15 yrs)

lock in effects Low level of control on telco

solution vs. high level of control on telco solution

existing assets vs. degree of envisaged asset

ownership

Source as a

Service from

MVNE

Strategic factors &

regulatory

environment

Commercial aspects

SLAs for operation

Commercial agreements (market based)

Cost-wise thresholds to build own infrastructure

Maintenance

(operational price levels)

Toolkit Analysis: Exemplary Decision tree trees including the criteria to map all

potential options

28.02.2017

Toolkit Analysis: Morphological Analysis


(ENERGISE)

37

Statistical analysis

Morphologic AnalysisProvision of all existing

combinations of data

Analysis of most taken paths

Analysis of dependencies long the

most taken paths


(ENERGISE)

Agenda

Overview ENERGISE1

General aspects1.1



ENERGISE toolkit2

Overview2.1





ENERGISE – Key Learnings

Blurring and merging of markets leads to significant challenges for regulation

There is an increasing interdependency between Infrastructures and the involved sectors

Rising demand for new (m2m) communications solutions

Exchange and cooperation between NRAs from both sectors is perceived as driver for more collaboration

net neutrality und data security

No clear common understanding of what is a critical application / what are the minimum communication requirements

- Which ratio of expected outside performance vs. in house supply

- Geospatial dimensions count

- 5G standards aim to include all stakeholders and requirements, but no major joint input from DSOs yet

Cooperation is hard to achieve but possible and economically viable

Growing number of examples of cooperation that originate in other fields of cross-sectoral cooperation, e.g. joint

deployment

39 ICT-based ENERgy Grid Implementation – Smart and Efficient

(ENERGISE)

28.02.2017

Session 3: Telecom and

Energy Operators’ view

Session 2: Telecom

Regulators Perspective

on Collaboration with

Energy Sector

Outlook to sessions


(ENERGISE)

Energy Telco

NRAs

Business

actors

National

Regulatory

bodies

National

Regulatory

bodies

DSOs

Producers

Retailers

Telecoms

MNOs

Carrier

Sectors

Ac

tors

• Existing ENERGISE Focus on

mapping demand from DSOs

• E.g. Implementation of Cost

saving directive is perceived to

lack joint regulatory realm

between telco & energy NRA

• Add perspective from NRAs &

telcos

• Main obstacles on case studies

level “other sector doesn’t

understand our business”

Necessity to collaborate

Session 4: Open discus-

sion on identified issues

Session 5: ENERGISE

Toolkit – Way Forward

ENERGISE – Contact Details

Next Steps

16th – 17th March: Final ENERGISE Dissemination Workshop, Brussels

Information about the project

Webpage (www.project-energise.eu)

Project leaflet

Direct contact


(ENERGISE)

41

Opportunities€Lock inSLA

http://www.project-energise.eu/

Back Up


(ENERGISE)

42

A telecoms perspective on DSOs and vice versa

28.02.2017 Corporate Presentation43

Hurdles for cross-sectoral co-operation from a

telecoms perspective

Energy Sector Telecommunications Sector

Regulatory Driven Customer Driven

Energy Sector

Be

twe

en

se

cto

rs

Different ICT-standards per region

Within

se

cto

r

Inconsistent management of investment

plans

incentive to generate huge CAPEX to get

it covered from the grid tariffs

Clear market driven incentives for cost-

saving

security of network operation that can

only be realised in a private dedicated

ICT network

best knowledge of security issues and

secure data procession.

DSOs perspective

• No Service Level Agreement for telecommunication

solutions removes the electricity operators responsibility

for his service quality

• DSO's and TSO's need to retain control of

telecommunications networks and their uses for smart

grid/critical operational telecoms

• Public telecommunications solutions provided by

commercial operators are not appropriate for critical

applications due to lifecycle issues

• Non-critical applications are not an issue.

• SLAs are not enough. What is required: proof of no

SPOF [single point of failure] (not only when the is

service designed but during its whole life)

Documents

ENERGISE Telecom & Energy Collaborating to Power the ......2 28.02.2017 ICT-based ENERgy Grid Implementation –Smart and Efficient (ENERGISE) Agenda 1 Overview ENERGISE 1.1 General