Activity Report 2012 - Eurelectric

The EU is currently looking into how best to
roll out smart meters and grids in Europe.
Should it adopt a model in which DSOs act as
market facilitators? We ask Jan PÁNEK, Head of
Unit Retail Markets, Coal & Oil at the European
Commission’s DG Energy, and Ari KOPONEN,
Vice-Chairman of the EURELECTRIC DSO Directors’
Gathering, to argue their case.
JP Earlier this year, the Commission relaunched its Task
Force Smart Grids to look into the various issues
surrounding smart grids in Europe. Within this task force,
Expert Group 3 aims to define a number of reference
options for the deployment of smart meters and grids. We
are currently discussing three models: ‘DSO as market
facilitator’, ‘third party market facilitator’ and ‘data access
point manager’. I would like to stress that the purpose
of this work is not to hold a beauty contest and crown a
winner, but to analyse a few parallel alternatives to
empower consumers, while keeping data privacy and
security of the processes involved.
Ak It makes sense for the Commission to investigate
several models because of different conditions in different
member states. nevertheless, EURELECTRIC strongly
supports the model in which DSOs act as neutral ‘market
34 eurelectric activity report 2012
debate
DSOs are best suited to provide
data to the market players
Ari koPonEn, EURELECTRIC
facilitators’ and enablers of active demand. The core of
this model is a standardised data hub where DSOs store
the data related to their supply and demand points and
from which the market parties collect the customer data
they need to offer innovative ‘active demand’ services
to customers.
JP The three alternatives analysed represent the
minimum three models of data handling on which to build
viable business cases. They basically represent different
political choices towards the roll-out of smart metering
and the deployment of smart grids solutions. One of
the key questions is where we draw the line between
the regulated business and the market, and what that
means in terms of the definition of a DSO as a natural
monopoly. Should DSOs really be exclusively in charge of
data transmission and data services? Customers tell us
they worry about supplying all the data to the DSO and
‘not getting anything for it’.
Ak It is about value creation on the top of smart grids.
The value does not come from the data as such but from
the new services that could be created thanks to these
data. A smart infrastructure will open up new business
opportunities for suppliers, aggregators and ESCOs. The
DSO as a market facilitator model enables all market
EU Network Codes: Getting DSOS Involved
network codes will lay down the necessary rules to complete the Internal Energy Market by 2014.
While the EnTSOs are in charge of drafting the codes, appropriate engagement of stakeholders such as
generators and DSOs throughout the process is important to make sure the final codes reflect their needs
and are technically sound. In particular, the codes should concentrate on issues that may have an impact
on overall system security and cross-border trade, leaving DSOs the freedom to manage their system
intelligently in the context of growing amounts of distributed generation and flexible loads. EURELECTRIC
DSOs have therefore been pushing for closer involvement in the drafting process of the codes on grid
connection, balancing and system operation, which are in different stages of development. Following
a joint push by EURELECTRIC and DSO associations CEDEC, GEODE and EDSO4SG, EnTSO-E agreed to
establish DSO advisory groups for all relevant network codes. This sets a good baseline for TSO-DSO
cooperation at the European level.