Development smart grids Spain - Futured

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Development smart grids Spain. FutuRed - BCGl Indirect benefits: they derive from direct benefits. They include the reduction of thecosts derived from blackouts and down times, and the impact of the improvement inthe system’s quality and reliability on society.The present value of the direct benefits derived from deploying smart grids in Spain amountsto €19,000M. If indirect benefits are added up, the figure totals €36,000M.Direct benefits virtually double (x1.9) the average investment required for their deployment(€10,200M). Direct and indirect benefits in total would be 3.5 times higher than the investmentrequired.Figure 4: Cost-benefit ratios of smart grids in SpainSource: The Boston Consulting GroupSmart grids are essential to attain the objectives related to renewable energy deployment for2020 and effectively integrate other applications into the system, like the electric vehicle. Achievingthese objectives will contribute to generating a value of €3,100M a year and creating morethan 200,000 jobs. These benefits have not been included in the cost-benefit analysis for thedeployment of smart grids, since they have been integrated into the Renewable Energies Plan2011-2020.16
3. Drivers of smart griddevelopment in SpainAll stakeholders should be adequately involved to ensure that the effective deployment ofsmart grids in Spain is a success and allows the country to develop and improve the power systemas well as national industrial and technological sectors.With this in mind, it is vital to implement measures that help organize all the stakeholdersinvolved in the value chain around three main dimensions: align energy and industrial policies,encourage development incentives and strengthen institutional support.3.1. Align energy and industrial policiesThe following initiatives should be tackled in order to adequately align energy and industrialpolicies:l Design an appropriate compensation model.l Assign roles and responsibilities to the different stakeholders.l Create mechanisms that encourage a reduction in energy intensity.There is an asymmetry between the cost incurred and the benefits reaped from the deploymentof smart grids. Whereas most part of the investment is made by grid companies, the main beneficiariesare end consumers, the technological and industrial sectors, national competitiveness andsociety as a whole. For this reason, the new compensation scheme should align the investments andefforts made with the benefits generated for each stakeholder, including innovation incentives.A clear assignment and definition of roles and accountabilities will make it possible to collectall potential benefits from smart grids, introducing, for example, mechanisms that help manageintermittent sources of production.It is fundamental to foster end consumers’ active participation, since a significant part of thebenefits provided by smart grids depends on consumers’ direct involvement in the power system.17
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Page 34: About the authorsMagín Yáñez is

Development smart grids Spain - Futured

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