Emerging Challenges

for DSOs –and NRAs-

in evolving energy
markets
Manuel Sánchez, Ph.D.
Team Leader Smart Grids
Directorate General for Energy
European Commission

Berlin 6 February 2015

Energy
 Low carbon economy requires
significant changes of energy systems

Dr. Manuel Sánchez Jiménez © European Commission 2013 manuel.sanchez–jimenez@ec.europa.eu 2/9

 Open model for consumption data flow
dynamic data access (kWh/minutes)
ESCO

Customer

Supplier
DER Power
Manuel Sanchez © 2011

Power
kWh/period
Secure Data
Gas Transmission DSO/SMO
Hot Water Interface

Historical data access (kWh/period +24hours)

Dr. Manuel Sánchez Jiménez © European Commission 2015 manuel.sanchez–jimenez@ec.europa.eu 3/9

 New roles for data management
one size does
not fit all

4
Dr. Manuel Sánchez Jiménez © European Commission 2015 manuel.sanchez–jimenez@ec.europa.eu 4/9
 Interoperability and open standards

Energy
Management /
Providing flexibility
Smart Grid
Connection
Point

Ref.: SWD(2014)189 accompanying the Smart Metering Benchmarking Report (COM(2014)356)

Dr. Manuel Sánchez Jiménez © European Commission 2015 manuel.sanchez–jimenez@ec.europa.eu 5/9

 SGTF-EG3

WP III
Regulatory and Incentives,

WP II
WP I
Flexibility commercial mechanism &
arrangements structure
Issues:

Topics to cover:

Deliverables

"Regulatory and commercial challenges of smart

2014 grids in energy markets"
To be structured into three sequential phases

WP I
WP II
WP III
Dr. Manuel Sánchez Jiménez © European Commission 2015 manuel.sanchez–jimenez@ec.europa.eu 6/9
SGTF-EG3
Possible relations between market roles

Commercial domain - Supply

Generator
Prosumers

Supply
&flexibility
Supplier BRP

Information Financial adjustment Power exchange

Flexibility
exchange mechanism market
purchase
contract
Aggregator BRP

Commercial domain - Flexibility

Flexibility Distribution network

procurement constraint
management

Balancing
DSO TSO Market /
Grid access & Ancillary services
Generation
management
Mutual exchange of operational
and contractual data Regulated domain

Dr. Manuel Sánchez Jiménez © European Commission 2015 manuel.sanchez–jimenez@ec.europa.eu 7/9

 Draft recommendations
SGTF-EG3
to remove barriers
Consumer perspectives Market Regulation
Clear framework for Integration of new actors Transparent data
protection and rewards with access to wholesale management to guarantee
and Info and clear benefits and balance markets new services: Smart
aggregator while take into metering functionalities,
account BRP rules and interoperability and
responsibilities standards

Dynamic prices signal to Fair commercial Incentives to network

incentivise (pending arrangements: cost, operators: CAPEX/OPEX
business model) and smart benefits, symmetry, etc.
appliances
Privacy and secure by Adjustments rules Further DSO/TSO
design cooperation: platform on
data management, tasks
and network codes and
investments
Dr. Manuel Sánchez Jiménez © European Commission 2015 manuel.sanchez–jimenez@ec.europa.eu 8/9
 Thanks
for your attention

http://ec.europa.eu/energy/en
http://ec.europa.eu/energy/en/topics/mark
ets-and-consumers/smart-grids-and-
meters

Dr. Manuel Sánchez Jiménez © European Commission 2015 manuel.sanchez–jimenez@ec.europa.eu 9/9