merrion street

Thank you for the invitation to speak at today’s important conference.

As we know, smart grids are critical for the implementation of EU energy policy. The 2003 US Northeast Blackout illustrates the very damaging consequences of grid failure. Power generation, communications, transportation, industry and water supply are all disrupted with detrimental impacts on society.  Today smart network development, which can protect society from such disruption, is becoming a reality. It is also becoming a necessity due to high penetrations of distributed generation, the reliance of modern economies on the quality and security of electricity infrastructure and the demands of integrating new technologies including electrified transport systems.  Real time monitoring and active network control offer huge benefits in facilitating renewables and improving the cost effectiveness and performance of networks. 

The desire to improve energy efficiency, to move to renewable generation and to improve the experience of energy customers is driving the development and adaption of smart metering and smart grids and new technologies across Europe. EU Directives such as the Third Energy Package have set down clear targets around the roll out of these technologies while the Climate and Energy Package with the 20-20-20 objectives which set binding targets for all our Member States will require the adoption of new modes of operation from electricity producers, transporters and end users. In terms of generation, 44% of new generation globally in 2011 was renewable. This involved investment of US$280 billion in 2011 compared to US$54 billion in 2004.

Huge investment is clearly necessary to "smarten" the grid with Pike Research estimating a cost of €56 billion within the EU by 2020 and the US Electric Power Research Institute estimating the cost of upgrading US utilities alone to be US$165 billion over two decades.  This necessary worldwide investment in grid improvement is resulting in a global business opportunity of potentially huge importance for Europe.

However, one of the biggest impediments to the adaption of these new technologies has been the lack of proper standards for the adoption of new technology. A lack of standards adds significant risk to technology selection, leads to increased costs, increases the risk of security issues arising and can place significant commercial risks on utilities and customers. Smart grid standards are essential for smart–grid interoperability — to ensure that information can be exchanged between systems and applications, and for smart-grid security — so that information remains secure. The Commission recognised this problem and issued standardisation mandates such as M441 (Smart Meters), M460 (Smart Grids) and M468 (EV Charging). These mandates directed the relevant standards organisations to evaluate, update and propose new standards to fill any gaps. I know this has been a major task involving not just the Commission and standards organisations but also other stakeholders such as the manufacturers, regulators, consumer organisations and utilities themselves.

The outcome of this work to date will be welcomed by all stakeholders as it should enable speedier adaption of smart metering and smart grid technologies. The target to roll out smart meters to 80% of all electricity customers by 2020 should be easier to meet. For example in Ireland we are currently designing the roll out of smart meters following a very successful customer trial run by the Irish DSO (ESB Networks) and the Irish Energy Regulator (CER). I have seen how smart meters can benefit customers if properly designed. I am sure the stakeholders in Ireland will benefit from this work. Within the EU, as we know, most utilities don’t have the technical resources or the market power to develop standards on their own. Therefore, for example, utilities rolling out smart meters – such as those in my own country – will welcome these developments.

Standards will be critical for ensuring that we build a secure, reliable, flexible and economic grid for the future that will support our targets for energy efficiency and the use of renewable energy. I am aware that standards work is a continuous and painstaking process. I welcome the final reports of the joint smart grid standardisations groups (released January 23rd and launched at the conference today), which present the distribution system operator perspective on next steps in this area.  The work by the European standardisation groups has been comprehensive and delivers a basis which utilities, like our own in Ireland, are embracing in both policy and practical network development endeavours.

Of course hand in hand with the development of standards, deployment must continue. In Ireland we have already connected renewables that at times equate to up to 60% of our total electricity demand, requiring curtailment. I am also aware of similar issues are emerging across Europe with the growth in photovoltaic power.   This is further driving the need for innovation and in Ireland we have seen great advances on delivering smart networks projects in wind integration, networks automation and control, energy efficiency, communications infrastructures, and Smart System Operational Frameworks to increase the integration of renewables.  Through developing, deploying and integrating leading edge systems, our work highlights the gaps in standards and where they can aid more cost effective system development.

Standardisation of electric vehicle charging is an area which the Commission has prioritised. It is important that industry can standardise both vehicle and charge point connections, communication protocols, and charging processes ensuring that the user experience is simple, safe and functional no matter where in Europe drivers re-charge their vehicles.

Of course, the most widely debated issue has been the type of “plug” to be used in public chargers. The problem here of course has not been a lack of standards but too many - which of two approved plugs should be used? I was pleased to note that in the Draft Directive on “Clean Power for Transport” issued last Thursday by Vice President Kallis the Commission has sought to end the controversy by opting for one of them.

Hardware standardisation is only one aspect. Possibly of even more significance is the standardisation of data structures. If an electric vehicle driver wants to connect to a charge point owned by someone other than his own normal operator there needs to be a transfer of data regarding his identification and the details of the charging event. For this to be possible the operators, whether in the same country or internationally, must all use a common structure for this data.

Many countries have initiatives to achieve national interoperability and there are a number of EU-funded projects such as Green eMotion and Mobi–Europe also active in this space. We, in Ireland have already achieved interoperability with Northern Ireland but have done that by using a common operating system. While it is of course technically and administratively easier to do it in this way it demonstrates our commitment to interoperability for electric vehicle drivers.  Many groups involved with electromobility across Europe are together trying to voluntarily agree on data structures and systems but this work needs full and fast support by standards.

It is with some pride that I can say my country Ireland will be the first country to trial an electric vehicle IT platform that will facilitate international roaming and seamless charging across Europe.

Smart grid standardization is not just an EU issue. Policymakers globally are encouraging standards setting activities. Beyond the EU, US work is been driven by government institutions such as the U.S. Department of Energy, The National Institute of Standards and Technology and Industry research labs such as Electrical Power Research Institute (EPRI). In the US great attention has been paid to the security issues around smart metering and smart grids. Within the EU there is now an increasing focus on the development of a comprehensive set of security standards for the smart grid. It is clear that across the world that all utilities are facing the same standardisation challenges.  We are also engaging with manufacturers and those in industry who will deliver the technologies complying with new and developing standards, particularly in the areas of active network control and cyber security. Many challenges lie ahead. As different countries in the EU have differing requirements for smart meters and smart grids this creates a challenge of trying to keep standards as flexible as possible while at the same time achieving the harmonisation and consolidation necessary to deliver the true benefits of the smart grid. It is important that the Commission and standards bodies provide strong leadership, and continue with the work that will be presented today. This work is essential to achieve a modern grid, based on high speed telecommunications and sophisticated ICT, and worthy of the name “truly smart". While this is easier said than done, in that very substantial technical and regulatory challenges have to be overcome, nevertheless the prize for a successful outcome is very significant in terms of reducing Europe’s dependence on fossil fuels with greater levels of penetration of renewable energy, and also improving all electricity customers day to day experience.

Thank you.