Development smart grids Spain - Futured

Development smart grids Spain. FutuRed - BCGSmart grids will make an effective inclusion of new applications easier and make the powersystem more efficient. The grid will be more automatic and it will integrate distributed energy resources,increasing customer participation in the system, making distributed generation managementmore flexible and making it easier to include new agents like storage or the e-vehicle.These new applications and efficiencies will generate €1,100M to 1,800M a year in profits forthe power system as a whole from increased supply reliability and quality, more efficient operationand maintenance of the system, greater power performance, optimized use and a longer lifeof the assets, lower energy intensity and a flatter demand curve.Smart grids are a necessary condition to meet the renewable energy deployment targets for2020 and the effective integration of other applications into the system (like the e-vehicle),which will contribute to generating more than €3,000M in value a year and creating 200,000jobs. These extrinsic benefits have not been considered in the smart grids’ cost-benefit analysis.For those benefits to materialize, smart grid development needs to be carried out correctly.Political and industrial policy needs to be aligned to increase incentives for development andstrengthen institutional support.Correct energy policy should include a fitting compensation model that aligns investments andefforts with the profits for each stakeholder in the system, as well as mechanisms to incent efficiencyand reduce energy intensity. Industrial policy needs to be developed to consolidate and boostdriving companies, and favor creation of new companies to capture smart market opportunities.Development incentives should promote R&D projects in real conditions, consumers’ accessto demand management systems through financing programs, and training in new smart technologiesfor future industry professionals in universities and technical training centers.At the institutional level, Spanish companies’ access to international markets needs to be boostedand awareness raising and educational programs need to be created for all consumers aboutsmart grids and their potential benefits.Smart grid development in Spain is profitable in itself and generates a number of benefitsfor customers and for the sustainable development of the country’s economy.6