PUBLIC
Європейський досвід SAP в областіреформування ринку електроенергетики. Уроки та рекомендації
Андреас ФлікНезалежний експерт з питань енергетики
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 3© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Agenda
1. Energy Transition
2. Current regulation in the EU
3. Market-opening and Competition in Germany
4. Future EU planning
5. New electricity market law in Ukraine
6. Energy Trading and Procurement in Germany
7. Digital revolution - Changes in the Utilities value chain
8. Energy Transition facts – conventional Generation and Renewables
9. Virtual PowerPlant and Demand Side Management
10. New Business for Power-to-X and Sector Coupling
11. Unbundling of the Transmission Grid
12. DSO-development for the next 10 years
13. Energy Transition facts in the Sales Segment
14. Digitalization of Measurement
15. Energy Service Provider
16. Shared Economy and a comprehensive look into the future
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 4© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Atmospheric CO2 levels are 40% higher than they were in 1750
Greenhouse Gas has the dominating role
Greenhouse gas acts in the atmosphere for 100 years
Damage due to climate change till 2050 (Munich RE-insurance):
➢ Global: 5 - 20% of annual GDP (currently: US $ 2,200 - 9,000 bn), with effective
climate protection measures: 1% (currently US $ 450 bn)
➢ Germany: 800 billion €
➢ Incomplete estimates: 0.2 to 2% income loss at 2 ° C additional warming
Social and technological, in some cases disruptive changes have a huge leverage,
so cost projections are not very reliable Source: Munich RE 2016
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 5© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
The Energy-Transition – the largest structural change in thehistory of German Energy Industry
Future aims of the Energy Transition in Germany➢ Complete phase-out of nuclear Energy till 2022
➢ Ambitious targets exist for the decarbonization
of Energy Generation
➢ Zero net anthropogenic greenhouse gas emissions
to be reached during the second half of the 21st century
The Decentralization of Energy Supply will be solved by➢ Installing dezentralized Renewables (Wind, Solar, Biogas,
Water,..)
➢ Changing the existing grid to the future autonomous
and intelligent Grid (Smart Grid)
➢ Market-opening especially in the sales area
➢ New storage concepts
Changing from the old Energy World
to the new Energy Supply
<2˚m(1,5 ˚) -
target by UN
till 2100
80%
Renewables
till 2050
Minus 40%
Greenhouse-
gas till 2030
IPCC: Intergovernmental Panel on Climate Change
27%
Renewables
till 2030
27%
Energy-
Efficiency till
2030
Emissions Trading and
coupling of cross-border
transmission capacity
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 7© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
History of legislation for the internal EU market
➢The liberalization of the energy market in the EU
started in 1996 with the Directive on the electricity
internal market 96/92/EC followed by the corresponding
gas directive 98/30/EC in 1998 (" the 1. Package")
➢This was followed by the so called "Accelaration
Directives" in 2003: 2003/54/EC for electricity and
2003/55/EC for gas
➢Ending up so far in the "3th package" today consists of 5
directives / regulations
➢ACER Regulation (EC) 713/2009, forces reporting
mechanisms (REMIT, EMIR, MiFID)
➢Electricity Cross-Border Regulation (EC) No 714/2009
➢Gas Cross-Border Regulation (EC) No 715/2009
➢Electricity Directive 2009/72/EC
➢Gas Directive 2009/73/EC
1. Separate grid
operation from
supply and
generation
2. Unbundle
Transmission
3. Strengthening
customer rights
4. Smart Meter
Rollout
5. Basic supply of
Electricity and
Gas
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 8© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
General Situation in the EU
➢Markets for C&I are all open; for household customers to a very far extend.
Germany has liberalized metering too (UK and NL to some extend as well)
➢Switching rate completely different, mainly due to still regulated prices for
household customers
➢Rules for market processes and communication differ from country to
country.
➢only one common approach among the members of the ebIX-group with
different implementation per country (only CH is using 100% „pure“ ebIX).
➢nordics countries decided to harmonize their rules so far (until 2015)
➢Suppression of RES feed-in by grid-companies not possible
➢ leads to compensation
➢grid investments to be done (good climate for RES investment based on priority
dispatch rules)
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 9© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Market-opening and Competition in Germany
National sales
▪ Deregulation to
the Utilities value
chain
▪ Sales
organization
– Industrial
approach for
sales activities
▪ Branding and
segmentation
DeregulationProcesses & Systems
▪ Co-determination
of market rules
▪ On top of IT-
System, clear
SAP-usage
strategy
▪ Struggling with
Smart-Devices
▪ How to live
Unbundling
Market CompetencePlatform strategy
“getting smart “
• Realization
of efficiencies in
partnerships
• Beginning of
digital
Transformation
• StandardizationProcess / IT-
Integration
▪ Privatization
▪ Full vertical
integration
▪ Market
Liberalization
Privatization
- 2004 - 2010 Tomorrow < 2000 - 2017
Smart X
Smart-X Business
▪ Industry 4.0
▪ Cloud
▪ Mobility
▪ Virtualization
▪ Autonomy
▪ AI
▪ Robotics
▪ Big data analytics
▪ Social Layering
▪ Sharing Economy
T D G S Market efficiency
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 11© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
The „Winter-Package“Clean energy for all Europeans
➢Focus on distributed generation, „Prosumage“,
local energy communities / networks
➢ Incentives to innovate
➢Estabish Regional Control Centers/ROC
for TSO‘s and DSO-TSO cooperation
➢Discussion on capacity markets vs regional balancing
➢Coupling of sectors energy, Heat, Transport & Logistic, eMobility
➢No more price regulation for households / vulnerable customers
➢New „DSO-entity“
➢Billing transparency, cyber security
➢Standaridized market communication across EU
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 13© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
New electricity market law in Ukraine
Key issues and expected outcomes
➢Liberalizing and restructuring of Electricity market in compliance with the
requirements of the “EU Third Energy Package”
➢Establishment of free market and competition in production, supply and
trade segments of the electricity market, which should be unbundled from
network activities. New entries are expected to these segments of the market.
➢Stabilization of regulatory framework for renewables, and embracement of the
responsibility for imbalances
➢Bankability of renewable projects to be enhanced as PPAs (power purchase
agreements) will become possible at early stages of development projects
(“guaranteed buyer”)
➢Electricity market to open up for international cross-border trade and
exchanges, and to continue synchronization with neighboring markets and
integration into the European regional power system
➢ Investments to be more readily raised for the network upgrade and development,
including through the privatization of energy assets
Source: CMS
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 14© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Structure of the new electricity market in Ukraine
Liberalized electricity market
on 1st of July 2019
a) Market of bilateral
contracts
b) Day ahead market (DAM),
c) Intraday market (IDM)
d) Balancing market (BM)
e) Market for ancillary
services
f) Retail market
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 15© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Basic business model of energy trading
(after liberalization in 1997)
➢ Power plant operators and small
generators supply electricity to
traders and large consumers
➢ The choice of electricity supplier is free
➢ Trader and plant operators are part of a Balancing group or are
Balancing group managers
➢ App. 9000 balancing areas care for the grid-stability in Germany
The Energy Trade
➢ balances the energy portfolio across different markets
➢ Is interface in international markets
➢ Fair market price through the trade (not only by regulative intervention)
➢ Trading can be done physical and derivative, via trading instrument
Trading and procurement including balancing group
managers Energy Trade
Generation SalesTradingTrading
Wholesale
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 16© SAP Utilities Info Day - Ukraine IEAC/A. Flik
The energy trade
➢ takes place in various marketplaces, on exchanges and outside
exchanges via OTC-markets (Over-the-counter)
➢ OTC offers freely negotiable contracts
➢ optimizes the sales and procurement portfolio
Utilities see the energy trading market as a reference value for energy the
next day in the spot market or for the future in the Derivates market
➢ Plant operation is based on real options
(adaptation of assets to a changed corporate environment in order to
optimize performance)
➢ the physical electricity trading is used for procurement optimization
(using one's own power plants)
Trading and procurement including balancing group managers
Energy Trade / Optimization and Dispatching
€
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 17© SAP Utilities Info Day - Ukraine IEAC/A. Flik
The different markets
➢ Spot-market: Short-term purchase of shortages (open or close trading
positions) strong volatile character
➢ Derivates market: Reduction of price and volume risks in the
procurement
Process for investment-decision:
➢ Power plant operator opts for new investment if variable
(eg fuel costs, emission certificates) and fixed costs
(new construction) are lower than expected revenues
➢ For existing investments, profit contribution and marginal
costs are calculated, if long-term negative:
➢ owner can decide for plant switch off
➢ Closes open trading-positions at the spot-market
➢ This leads to Risc-Management
Trading and procurement including balancing group managers
Different markets and Investment decision
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 19© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Trading and procurement including balancing group managers
Trade relations and physical compensation
Trading
physical Layer
Seller Stock Market Buyer
Clearing
House CCP
Grid operators Grid operatorsFeed-In Extraction
Grid-Service
Balance Regulation
Balancing energy in
the case of deviation
byTSO
Balancing energy in
the case of deviation
byTSO
anonym
Central Counterparty (CCP Clearing)
European Commodity Clearing AG for EEX
EMIR: European Market
Infrastructure Regulation
Support an minimize the credit risk, eg by margin payment members side, price forward curve
e.g. Power failure
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 20© SAP Utilities Info Day - Ukraine IEAC/A. Flik
➢ Falling wholesale prices
➢ Increasing regulatory demands
➢ Challenges in declining electricity prices, caused by
surplus capacity in the market (RES)
➢ Accelerated Grid Expansion
➢ Increasing Digitization
Leads to unprofitable power plants and makes „Make-or-Buy“ principle
dominating.
Trading and procurement including balancing group managers Future major Risks
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 22© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Digital revolution has hit the Energy IndustryDigitalization of Energy Industry by law
Changing the rules for the Utilities
Value Chain
➢ Multi-Channeling to the customer
➢ Customer with access to relevant
informations
➢ Individual offerings of services
➢ Complex demand behavior
➢ Mobile devices and fast internet
➢ New technologies
➢ Access of non-Utility suppliers, Start-
Ups
➢ Web 2.0 and the Internet of Things
➢ Big data to capture customer foot-
➢ Changing regulatory environment
Challenges
➢ Bidirectional Energy-flow
➢ Direct Marketing
➢ Digitized Measurement
➢ Decentralization RES
➢ Customer Proximity
➢ Volatility
➢ Price
comparison
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 23© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Changes in the Utilities Value Chain
Customer Centric perspective
Transmission
Distribution
Generation
Storage
Measurement
Trading
Wholesale
Sales/Delivery
Marketing
Services &Value-addedBusiness
Virtual Powerplant, P2P/P2X-Storage
Industry 4 & digitized Plant-Management
Predictive Maintenance
Digitized Network Planning, mobile
Automatization technical Fieldservice
Smart Metering
Merging of consumption and customer data
Precise forecasting
Realtime Transaction Planning
Big data, Customer Analytics, Customer
Segmentation, Social Media, Smart Home
Multi-Channel, Funding, Smart Cities
TelCo, eMobility, Smart Logistics, M2C-providing,
Energy-related Services, dig. Process HR, FI
Customer-
Proximity
B2C, C&I
Prosumer
Digital
Culture
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 25© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Energy Transition Facts
„Generation“
› Drop in prices of wholesale trade
https://www.eex.com/en/
(current spot-price)
› No improvement of the situation in sight:
prices expected for future below 30€/MWh,
Unpredictable events in addition
› Conventional generation is going down
› Gas-fuelled PP are predictably not economically
viable due to negative contribution. Lower
margins for coal-fuelled PP from 10-15€/MWh
to 0-5€/MWh - New buildings would refinance
only to 50% of the market allow
PhysicalElectricityIndex Jan. toOct. 2016 on average:27,18€/MWh
https://www.epexspot.com/de/marktdaten/elix/index-table/2016-12-31/EU
!Wind + Solar
Temper., shortage
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 26© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Energy Transition Facts„RENEWABLES“
› 32,6% in 2015 (2014: 25,8 %, 2000:
6%) of gross electricity generation is
based on renewables.
Stagnation in 2016!
› The amount of renewables will
increase up to 80% of generation
till 2050. The grid-extension has to
fulfill the needs.
› Every 55th German is statistically an
energy producer. We have 450
conventional PP and 1,5 Mio. dec. IPP
(Solar, Biomass, Wind)
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 27© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
The Energy Transition is confronting the operators of conventional
power plants with challenges in different areas
Challenges for conventional Powerplants
The Powerplant Ressource Sheduling has to
fulfill new and complex influence factors
The requirements for Powerplant Operations in
terms of Flexibility will increase dramatically
New Energy Markets will potentially exist and the
structures of the Energy Markets get more
complex
No Protection of Economic Viabilitywithout handling these challenges
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 30© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Energy Transition
Requirements for Flexibility, basic principle
➢ Load shifting potentials in Smart
Grid lets renewable feed-in rise
independent if Energy price climbs
or falls
➢ Based on Virtual PowerPlant-
concepts, the „Prosumer“ can
benefit from the energy transition
with his own flexibility and load
➢ The regulation of Demand could be
done by Energy Service
Providers
➢ Renewables-capacities has to increase to reach CO2-emission-target 2050
➢ International agreements, national laws and regulations force to act
➢ New market designs are obligatory: Smart Grid, Smart Market, Load Mgnt.
➢ Sector coupling based on Storage, eMobility, P2H,… increases electricity
demand additionally
➢ Capacities makes load-shifting possible, based on flexible energy
logistics and management of grid bottlenecks
RE-
generation
residual
fossil generation
RE-shortfall
app. 550(TWh/a 2015)
250 190
110
Germany 2050
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 31© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Demand Side Management (DSM)
Challenges
• To enable the “Energiewende” and integrate volatile renewable energy sources
DSM is required
• Residential customers need to be included on a large scale
• The DSO needs to act as a market facilitator and as an active system operator
Value
• In Germany DSM
can shift up to
19GW load (peak
load is about
80GW)*
• Annual cost savings
are estimated to be
about 500m €*
• DSM helps to
minimize necessary
investment into
additional grid
capacity. * Source: Institute for Energy Economics and the Rational Use of Energy (IER), University Stuttgart
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 32© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Virtual Power Plant Management as a future
Core-competence, Meter2Cash for Prosumers
Reference: http://srren.ipcc-wg3.de/report/IPCC_SRREN_Ch08.pdf
The Virtual Power Plant is managing an intelligent,decentralized and flexible power supply
➢ Fluctuating production(Wind, PV)
➢ Controllable plants (CHP & Bioenergy)
➢ Storage concepts➢ Flexible consumers
are connected together to ensure a stable power supply
VPP
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 33© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Virtual power plant ManagementRevenue potential by marketing of balancing power and the scheduled operation
• Targeted control of electricity demand
• System flexibility for load shifting in times of higher electricity prices (e.q. to pick intraday price fluctuations)
• Generation and demand fluctuations can be compensated in the power grid
Electric power generation on demand
• Ensure stable power frequency (49,5 to 50,2 Hz)
• TSO demand on positive and negative balancing power for primary balancing power, secondary balancing power and minute reserve requested
• Controllable, renewable energy and CHP suited to offer minute reserve and secondary balancing
Balancing Power
• Compensation for the mere provision of flexibility
Revenue potential for power plant operator
Requirements for participantsC&I-customer and producers:
➢ Completely ramp up and down within 15min
➢ Temporal shifts within the production process
➢ Supervizingmarket prices(intraday,day-ahead, bal.)
➢ VPP-Management-System(Experienced Energy Service)
➢ Technical & Oper.restrictions
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 34© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Basics for storage system operators (eg natural gas)
Legal unbundling is obligatory if storage is part of vertical integrated
company (competitive)
Regulative situation exists…
➢if access to the installation necessary, in order to grand technical and
economic access to the grid regarding customer supply
➢if its the task fulfillment of the grid operator (eg for maintaining the grid
stability)
Access to storage facility has to be done non-discriminatory
Guidelines with good practice for Storage System Operators (SSO) exists
for standardization of access conditions at EU level
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 35© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Power-to-Heat Technology
➢Resistance- or Electrodes hot water boiler
➢short response times
➢negligible operating costs
➢exceptionally flexible to cover short-term load peaks
➢Heat Pump
➢higher specific investment costs
➢ less dynamic in the control behavior
➢much higher energy efficiency
➢ lower variable costs
➢ to prefer with constant base load requirement
Demand and compensation of balancing energy determine the profitability of
the plants substantially
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 36© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Power-to-Heat, cross-sector system solution
➢Hybrid generation of heat from surplus power and fossile fuel possible
➢Demand side can respond more flexible to stock offers and balancing energy
market
➢Preferrable if sum of electricity purchase costs, grid charges, levies and taxes
below costs of fossile–based heating
Measures
Effectsbalancing group
management
Surplus
Electricity
Offer >
Demand
(nationwide)
Grid
Bottleneck
(regional)
planned
unplanned
Distribution
Grid
Transmission
Grid
Spot-Market
Balancing
Energy
Neg. prices
Negative
balancing
Energy
Feed-In
Management
Day-After
Trading
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 37© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Power-to-Heat / Importance as a system service provider
Business-Case:
➢ Several installations in Germany are existing in the range between 5MW to
100MW.
➢ Base load of a district heating network is approximately 10% of the peak load
of the coldest day of the year
➢ Maximum efficiency in the case that base-load is identical to the Energy
surplus.
➢ Easy storage capabilities of heat can take over Energy surplus
Total performance of district-heating facilities in Germany exceeds 28GW
Based on appraisal, thermic Potential of about 28 x 10% = 2,8GW exists for
facilities
➢ No exemption from power-to-heat and power-to-gas grid fees as energy is
not taken from the same grid and feed back into it (Power-to-power, by
contrast, complies with the facts)
➢ Combined sector-coupled storage, such as high-temperature storage HTS,
where energy can be partially fed back into the same grid complies
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 38© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Different Storage Technologies for different applications
Forward Market
Day Ahead Market
Intra Day Market
Balancing Market
Lithium
Lithium-Iron-Phosphate
Advantage Lithium:
• Fast response
• Quick Service
• 80% DOD
• High Power
• Efficiency > 95%
• No Memory
effect
• Highest energy
density
• 15 to 20 years LT
Lithium Lead
Carbon (LC)
Disadvantage:
High Cost
Size: 0,1 - 10MWh
Advantage LC:
• Large storage
• 50-70% DOD
• High power
• Lower cost
• Efficiency > 85%
• 10-15 years LT
Disadvantage:
Medium Energy Density
High Weight
Efficiency 80%
Size: 0,1 - 10MWh
Redox Flow
(RF)
Advantage RF:
• Large storage
• 50-70% DOD
• High Power
• Lower cost
• No memory effect
• 15 to 20 years LT
Disadvantage:
Low Energy Density
No fast response
Efficiency < 80%
Size: 1 - 10MWh
High Temp Storage
(HTS)
Advantage HTS:
• Very large
storage
• 80% DOD
• Electricity, heat
and AC
generation
• Lowest Cost
• Minimum space
• 50 years LT
Disadvantage:
No fast response
E-Efficiency 40%
H-Efficiency 40%
Size: 3 - 500MWh
Copyright© 2016 RES All Rights Reserved
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 40© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Increased requirements for Transmission Grid Operators
in the Energy Act 2011
➢Federal Network Agency Germany works for thorough
implementation of behavior regulation
➢One of the factors which made ownership of transmission
subsidiaries less attractive
➢Leads power companies to decide to sell their transmission
subsidiaries (ownership unbundling)
➢EnBW and RWE kept their Transmission Business within the group
as an Independent Transmission Operator (ITO)
➢Advantages in influencing the financial invest, keeping the overall
Rating
➢Profitable transmission business
➢Leverage of external synergies
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 41© SAP Utilities Info Day - Ukraine IEAC/A. Flik
The last step: Based on the EU 3rd package there exist 3 principal
unbundling options for Transmission
Generation
TSO
(Ownership +
Operation)
Sales / Trading
Generation
Gridowner
Sales / Trading
Generation
ITO
Sales / Trading
Independent
grid operator
1 2 3Ownership Unbundling Independent System
Operator (ISO)The Third Way (ITO)
› Keeping the grid assets
› Systemmanagement and investment
decissions by independent ISO
› ISO plans grid extensions and enforces
the grid owner to do the investments
› In principle loss of ownership
› Independent decissions by ITO
› Restrictions in HR
› Option for independent financing
› no Shared Services (IT,
Controlling)
› strict Management Unbundling
› Ownership unbundling
› TSO must not have control of
generation and sales;
› No common management;
› No common financing
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 43© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Energy Transition Facts Germany
„Grid Segment“
› 35 TKm of Transmission Grid length maintained by 4 Operators
› Depending on technology 3500km of new high-voltage tracks are
required (grid bottleneck north to south)
› DSOs are operating more then 1,1m Km of Low-Voltage and more the
500.000 Km of Medium-Voltage
Power Grid
› Since 2011 Federal Network
Agency planned to expand
the Distribution Grid
by 8-10 TKm annually
(up to 195 Tkm)
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 44© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Energy Transition Facts
„Grid Segment“
Wholesale market
State allocations- Tax (54% in 2016)
Net usage fee
- Start of newregulatory Period 2016
Primary Electricity Supply
- End user
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 46© SAP Utilities Info Day - Ukraine IEAC/A. Flik
DSO – the next 10 years?
Demand side participation - Rural and Remote(*) - Urban
Business Drivers
➢ Customer and Community Expectations
➢ Distributed Energy Resources
➢ State and local planning
➢ Environmental Policy
➢ Smart Logistics and eMobility
➢ Shared Economy
➢ Network Performance
➢ Asset Renewal
➢ Data Management, Sensorik 4, remote
Monitoring and Control
➢ Regulatory Influence and Incentives
➢ Aging Workforce
Key Operations and Roles
➢Energy Transition
Project Manager
Supporting Roles
➢Customer Service and Connections
Service Agents
➢Network development
Network Planner
➢Asset Management
Asset Designer, Asset Manager
➢Supply restauration
Field Crew Member
➢Smart-X, VPP
Controller / Dispatcher / Operator
(*) Rural embrace od Microgrid, DER, onsite Energy storage, Solar PV
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 47© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Various requirements exists
which have to be solved(examples)
Customer requirements toquality and quantity
- Frequency ofoutages
- Efficiency ofdistributioninfrastructure
- Responsivenessof maintenance
- Relative impact of outages on customers and system
-…
RegulatoryRequirements
- 3rd package
- ACER Regulation (EC) 713/2009 (REMIT, EMIR, MiFID)
- Electricity & Gas Cross-Border Regulation (EC) No 714-715/2009
- Electricity & Gas Directive2009/72+73/EC
Profitability / Margin
- Competitiveness
- Sustainability ofcost levels/tariffs
- Cash flowmanagement
- Control of theftand accountedlosses
- Ability to billconsumers
Physical„wearing out“ offacilities
- PredictiveMaintenance
- Planning & Investment Strategie
- Smart Grid
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 49© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Measurement / Meter Operator
Digitalization of Measurement
Development of the legal framework in Germany
➢3. EU Internal Market Package (2009)
Implementation of smart metering systems to be implemented by 80% of final
consumers by 2020
➢EnWG amendment (2010, 2011 and 2012)
Legal anchoring of the EU installation obligation in Germany
➢Cost-Benefit Analysis (KNA) 2013
The cost-benefit analysis prepared on
behalf of the BMWi comes to a positive
business case for a partial rollout
in Germany
➢Draft act on the Digitalization of the
Energiewende (4 November 2015)
Existing laws and regulations are being
adapted by 15 individual articles in
the new MsbG.
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 50© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Important points and rollout
specifications
➢Time staggering of the rollout obligation
according to customer groups
➢ Introduction of staggered price
caps for metering fees
➢ Introduction of a minimum rollout rate
of 10% in the first three years
➢ Introduction of a fundamentally
responsible Measuring
point Operators (fMO)
➢Separation between DSO
(MO) and (fMO)
Source: BSI
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 52© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Energy Transition Facts
„Sales Segment“
› Re-municipalization: since 2007, more than 60 new municipalities were founded
➢Change in the competitive landscape: increasing market share of new competitors since 2002 by 20% to 50%. Upcoming competition – a challenge ?➢ New independent retailers (Ikea, Yello, Greenpeace, procurement organizations) - Sales
➢ “Energiegenossenschaften” (>1000 in DE, Prokon with 537MW cap.) – Building new RES-Plants
➢ “Schwarmenergie” , Lichtblick – Intelligent Energy, local balancing for VPP
➢ Google (RES – map) – Identification of solar potential at home
➢ Sonnenbatterie, DE – Energy storage concept for VPP
➢ Tesla, BMW – Energy storage concepts
➢ https://www.reddit.com/r/slockit/comments/4b0zcj/rwe_slockit_reveal_blockcharge_video_electric/
› Change in customer expectations and behavior : churn rates have risen steadily. Statistically, every 4th Industrial- and private customers changes the supplier this year
› No margin in classic B2B-customer segment, B2C Prosumer with B2B-requirements
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 53© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Digital transformation (Smart-X-world)
The utilities relationship to the customer is being redefined
Customer UtilityChange !
Business closer to Real Time
➢ dynamic pricing per 15/30/60 min interval; curtailments on short notice
New Customer Services leveraging AMI and Home Automation
➢ Dis/reconnection, on demand read, demand side mgmt
New Energy Efficiency Products
➢ Time of use/day rates; price signals, rebate incentives for energy savings
Consumer-owned Generation
➢ self-usage/trading, local/remote, settlement
New Business Models
➢ generation/supply contracting; selling of ancillary/settlement/admin services
E-Mobility
➢ Managing demand, plug-in versus battery-swap, billing
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 55© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Background EU:
➢ Energy Efficiency Directive (2006/32 / EC)
➢ Reduction of energy consumption
➢ Promotion of the market for energy services
Definition of an energy Service Provider:
Combines energy with energy-efficient technology and / or provides the necessary
operational, maintenance and control activities.
The basis is a contractual relationship, e.g. to provide light or heat.
Interaction between suppliers, device manufacturers, IT and software
companies and measurement service providers takes place.
Provides individual, specialized and assembled services instead of products.
Energy Service Provider
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 56© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Energy Service Provider
Typical aggregator task „Direktvermarktung“
The Market Premium is to replace the difference between the fixed EEG remuneration and the monthly
average price on the exchange determined ex-post
Market Premium
Exchange
RevenuesEnergy
Marketing of balancing
energy
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 58© SAP Utilities Info Day - Ukraine IEAC/A. Flik
Turnover doubling over the next 3 years
➢ Energy management and digitalization for the systematic monitoring of
energy flows and their automatic control
➢ Process analysis together with customer finds out service areas
with value-added
➢ Customer proximity and partner management, and detailed customer-
segmentation
➢ Contract-Management with clear responsibilities, shedules. fulfillment of
legal requirements
➢ Linking with products outside the energy sector (Alerting, Repair-
Services, Travel-Management, Insurance,…)
Energy Service Provider
Opportunities for growth
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 60© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Based on action framework of past and ongoing IT-activities, the IT
becomes a core-competency and relevant success-factor for German
Utility-companies
2004 2006 20081998 2000 2002 2010
Merge
Liberalisation,
Customer
Processes
Regulation New Products
Productivity
Bu
sin
ess
Replacement ofLegacy billingSystems
Setup of Yello Systems
Setup of Energy
Logistics
Market Processes
Informational
Unbundling
Smart Meter
Retail
Products
Geographical
Information Systems
Employee
Self Services
Consolidation of Data
Centers
SAP Introduction
Expert-systems
Operation-
Systems
IT
load-variable tariffing
Regu
lation
§7AGEnWG
GPKEGELIG685
Systemsplit
ITO
2012 2014
§
Pro
jec
ts WiMUNICODE B2C
Platform C&I-
Sales
Analytics
IDEX
Template
Billing
Core-
Template
CRMCCC for
Deregulation
SEPA
Smart-Bus.
SM Rollout
3rd party
Home-
Connection
Consolidation
SAP Usage
Strategy
EDM
DMS/
Archiving
Core-IntegrationWorkforce
Energytrade
M&A
New Business
models
2016
g/wMSB
Social Layer
Meter Operator
Law
Feed-In
processes
WiM
MsbG
Gabi Gas 2
MaBis 2.0Neues EEG
Strom NZV
2018
Multi-
Channel
§
Challenges:
Complexity
Costs
Flexibility
Agility
Lifecycle
Service
Cloud
Media
Mobility
Analytics
IT-spend
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 61© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
Sharing Economy
Smart Contracts
Smart Devices
➢New Business Models
without intermediaries
➢Decentral storage of
transaction-data increases
the safety level
➢ Lots of use-cases are
possible:
Payment, Digitalization of
Contracts & Content
➢ Physical factors (Energy-
Transactions)
➢ Payment in Crypto-Currency
➢Regulatory boundary
conditionsCentral Decentral
De
ce
ntr
al
Ce
ntr
al
Energy Sales
(classical Utility)
e.q. MotelOne, Sixt
Trading Platform
e.q. Airbnb, Uber
Energy
Distribution
(pure sales
company)
Smart Contracts
decentral
documentation
of decentral
transactions
Service Delivery
Tra
ns
ac
tio
n
pa
ym
en
t
Source: PwC
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 63© SAP Utilities Info Day - Ukraine IEAC/A. Flik
© A. Flik
A comprehensive look into the future
➢ The business model of the classic energy provider no longer
exists
➢ All players are connected via a digital energy network
➢ Commodity processes are standardized and automated across
the enterprise in the cloud
➢ Agile product innovations and comprehensive market
intelligence are critical success factors in the new energy world
➢ New technology (e.g. In-memory) allows drastic efficiency gains
and new business models through forward-looking, self-
optimizing processes
Source. SAP/S. Engelhardt
Top Related