ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute

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ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
ELECTRICITY DISTRIBUTION NETWORK – IN THE CENTER OF
                             THE ENERGY TRANSITION
        „The European Green Deal post COVID-19 and the Bulgarian Energy Transition“

                              Ivanka Dilovska
                      Member of the Management Board
                        Energy Management Institute
ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
TOPICS

                  1                                   2
The Green Deal & the distribution   National features and perspectives for
network                             the distribution network
ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
1                               2
The Green Deal & the distribution   Разпределителна мрежа:
network                             национални тенденции
ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
DISTRIBUTION NETWORK

In Bulgaria
                                                         Shares of distribution length power lines per type
• Length: 154 000 km or 1,5% of the distribution                   (LV, MV and HV) for each MS
  network of Europe
• Number of customers: 4,9 mln or 1,8% from all
  the customers in Europe
• Distributed energy: 26 TWh or 0,9% from the
  distributed energy in Europe

In Europe
• Length: 10 mln km (10 times the distance from
  the Earth to the Moon and back)
• Number of customers: 260 mln
• Distributed energy: 2 700 TWh
ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
THE GREEN DEAL IS BECOMING
                               MORE AND MORE AMBITIOUS

• On 17th September the European Counsil proposed the GHG-emissions to be
  reduced by at least 55% (ЕP – 60%)

                                              The EU RES target(38-40%)

• This will lead to a higher levels of:        The EU Energy Efficiency target

                                              The national contribution (integrated
                                              NECPs)

• By June 2021, the EC will review and propose amendments to relevant policy
  instruments to achieve further emission reductions
ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
THE DISTRIBUTION NETWORK
                                      AND THE GREEN DEAL

                                    RES generation

Intelligent measuring systems                               Modernisation

                                Distribution network
Energy storage                                                     Resilience

                   Digitalisation                Electrification
ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
THE FUTURE IS ALREADY DECIDED.
                                       WHERE DO THE CHANGES START?
       Current regulatory                            A new (proactive)
           approach                                regulatory approach
                                                                                             “Our proposals will help turn
 Defining specific activities                 Setting targets and requirements   Britain's streets green putting in place the
                                                                                 wires and technology for families to travel in
                                              Determining remuneration/          electric vehicles and heat their homes and
 Determining costs and their short
                                              bonuses linked to performance      businesses with clean energy. The green energy
 term reduction
                                                                                 transformation is not just about putting more
                                                                                 cooper in the ground. We need a modern,
 Looking at reduction of                      Looking ahead - incentives for     digital grid…
 ongoing investment                           innovation                         Local electricity grid will at the forefront of
                                                                                 eliminating harmful carbon emissions…, so it’s
                                Ensuring fair returns                            vital they have the investment to do this whist
                                                                                 keeping cost as low as possible for consumers.”

                                                                                 Jonathan Brearley, CEO at Ofgem,
                                                                                 30/07/2020, at the presentation of the design of the five‐
The Member States and the National Regulatory Authorities                        year price controls for electricity distribution (RIIO‐ED2)
determine how electricity distribution networks will develop!                    detailed sector methodology that will start in April 2023.
ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
THE ELECTRICITY INDUSTRY:
                                    THE REGULATION IS NOT IN STEP WITH
                                               THE ENERGY TRANSITION

The first three necessary changes are:

1. New design of network tariffs to ensure that the new entrants / the decentralized generation
   pay a price commensurate with the network costs they cause

2. The micro-networks, local energy communities and prosumers should be subject to the same
   responsibilities as other network operators

3. Rapid introduction of IMS and dynamic tariffs to provide maximum incentives for flexibility
   and optimization of system costs

                   Source: “Where does change start if the future is already decided?“, an EY report with technical support from Eurelectric, 2019
ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
1                             2
Зелената сделка &         National features and perspectives for
разпределителната мрежа   the distribution network
ELECTRICITY DISTRIBUTION NETWORK - IN THE CENTER OF THE ENERGY TRANSITION - Ivanka Dilovska Member of the Management Board Energy Management Institute
THE NETWORK TARIFFS DECREASED
                                                           BY 25% FOR THE PERIOD 2007-2019
  Evolution of the generation and network components in the regulated electricity price
                        for clients, connected to LV grid, 2007-2018
                                                                                                                    +91,35%
                                                                                                                                 Where does the
                                                                              +19,04%   +2,19%
                                                                                                                    108,46 lv.
                                                                                                                                 reduction of network
                                                                                                  -8,57%   +1,04%
                                                                                                                                 tariffs come from?
                                                          +19,96%   -1,68%
                    +52,81%                                                                                                      The technicall losses of energy
                                                 +4,91%
                                        +5,87%                                                                                   at distribution level are
 56,68 lv.                    -15,53%
                                                                                                                                 reduced 2,5 times – from 21%
                                                                                                                                 to 8%
                    +5,49%
                              -6,43%    -4,40%   +0,72%   +3,85%
                                                                    -13,53%
64,70 lv.
                                                                                                  +3,25%   +1,12%   48,09 lv.    What is the result?
                                                                                        +26,25%
                                                                              -37,85%                                            30 million MWh energy savings
                                                                                                                                                =
                                                                                                                    -25,67%      electricity consumption in the
                                                                                                                                     country for one year
             2007    2008      2009     2010     2011      2012      2013      2014      2015     2016     2017       2018
                                                                                                                                                              Source:
                                          network costs              generation costs                                             “2007-2019: HIGHER GENERATION COST,
                                                                                                                                      LOWER NETWORK COST”, EMI, 2019
NECP:
  PERSPECTIVES TO THE DSOs

«Development of electricity transmission and
distribution infrastructure, of smart networks, of
storage facilities and interconnectors in the period
2021-2030 »

«Introducing a simplified procedure for grid connections
when installations of renewables self-consumers and
demonstration projects that use renewable energy with
an electrical capacity of 10.8 kW or less are to be
connected to the electricity distribution networks»

                                                           10
NECP:
                                                    PERSPECTIVES TO DSOs
• As regards measures for reducing technical losses in electricity transmission and distribution via
  the electricity distribution network, the network operators carry out the following activities:
      Reducing technical losses in electricity transmission and distribution by means of:
        − building new transformer units to reduce the length of outlets of low voltage networks and/or
          redistribute power loads;
        − replacing installed power transformers by new ones, with lower losses of energy in no-load
          condition and short circuiting;
        − thermal imaging audit of transformers, medium and low voltage units to detect problem areas with
          rising temperature;
        − increasing the cross-section of medium- and low-voltage conductors in cable and overhead
          networks.
• Increasing the reliability of measuring the quantity of electricity that is received in or leaves the
  electricity distribution grid and limiting the option for its unauthorised use through:
    replacement of commercial metering devices
    securing and re-locating commercial metering devices on the boundary of ownership
    building SMART GRID networks
NECP:
                                                                    REGULATORY PRINCIPLES
EWRC is guided by the following general principles:
• In terms of energy efficiency (EE)
     promoting the increase of energy efficiency in the production, transmission, distribution and final consumption of energy and natural gas
     creating incentives for transmission and distribution system operators to provide system services to end customers, which enable the
      implementation of measures to improve EE by introducing smart grids, taking into account the costs and benefits associated with each measure,
      while ensuring system security
• In terms of demand optimization
     The prices for transmission and distribution shall allow increasing the participation of end customers in improving the efficiency of the electricity
      system by demand optimization
     to encourage transmission and distribution system operators to offer system services for the optimization of electricity consumption, energy
      management and decentralized generation within organized electricity markets and to improve efficiency in the design and operation of
      networks, in particular:
      − load shift from peak hours to non-peak hours by end customers, taking into account the availability of energy from renewable energy
        sources, cogeneration and decentralized generation
      − energy saving by optimizing the consumption from decentralized generation sources by combining the provision of energy efficient services
        and participation in the balancing electricity market
      − reduction of consumption through energy efficiency measures implemented by energy efficient services providers
      − connection and dispatching of energy sites for MV and LV power generation
      − connection of energy facilities for electricity production, located closer to the points of consumption
      − providing access to the networks of energy storage facilities
                                                                                                                                                        12
NECP:
                                     INVESTMENTS 2021 – 2030

               NECP: Investments in electricity sector
                                        5%
                                                    20%

                                         15,3             10%
                                         mln. €

                                   65%

RES   Network (transmission & distribution)       New nuclear capacity   Others (incl. storage)
INVESTMENTS IN ELECTRICITY
                                                  DISTRIBUTION NETWORK 2021-2030

                      Average annual investments in distribution network, MEURO

               OUTLOOK (2021-2030)*                                92
    *the total NECP investments in network are
reduced with those for the transmission network
         according to the ESO’s Ten-year plan

      HISTORICAL PLAN (2015-2017)                                                        108

                                                  80    85    90        95   100   105         110

   2030 investment perspectives below their historical level!
For more information…

              www.emi-bg.com
              emi@emi-bg.com
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