1. Challenges for the smart gridsdeployment in the Basque Country: Bidelek Sareak - the Smart Grid of Bilbao Txaber Lezamiz Angel Daz Technology Development Manager Smart Grids Manager EVE - Ente Vasco de la Energa TECNALIA www.eve.es www.tecnalia.com1

2. INDEXIntroduction and project scope in the context of the BasqueCountry energy development plan1. Definition2. Legal Basis3. Overall Objective4. Partners Contribution5. Project Objectives6. Investment and creation of employment in SmartGrids7. Business DevelopmentBidelek Sarea technical overview8. Project Scope9. Deployment of the Smart Grid Smart metering Secondary substations, HV/MV substations Innovative energy management applications10. Conclusions2 3. Introduction and projectscope in the context ofthe Basque Country energy developmentplan Txaber Lezamiz Technology Development Manager EVE - Ente Vasco de la Energa www.eve.es3 4. 1. Smart GridsSmart grids are essentially distribution networksequipped with technology for providing electricitysuppliers and users with information to optimise theuse of energy 4 5. A Smart Grid is atechnologicalenhancement of thepower distributionsystem, combiningtraditional facilities withstate-of-the-artmonitoring, informationand telecommunicationtechnology5 6. 2. Legal basisDirective 2009/72/EC of the European Parliament states that80% of consumers shall be equipped with intelligentmetering systems by 2020Under Royal Decree 1110/07, Spanish law states that allmeters will be equipped with hourly discrimination andremote management technology prior to December 31,2018Smart Technologies require SMART LEGISLATIONBoth Iberdrola and the Basque Government believe thatcompliance with this legislation represents an opportunity toconduct a much more ambitious and far-reaching project6 7. 3.Overall Objective of Bidelek Sareak ProjectThe Basque Government (through EVE) and Iberdrola, on thebasis of their common interest in the matter, have taken theinitiative to equip both Bilbao and the town centre ofPortugalete with smart grids to ensure an efficient, safe andsustainable power supply, with a view to extending thisinitiative to other areas of the Basque Country in the future. 7 8. 4.Partners ContributionIn addition to financial support, EVE will contribute its visionand know-how on energy saving and efficiency andimprovements to demand management for end users.Iberdrola will lead the Smart Grid Projectfrom the technological perspective,with a view to ensuring that certain selectedareas are recognised as reference areas onaccount of the quality and efficiency of their electricitygrids, both on a national and international scale.Joint investment will be in the order of 60,000,000 euros overthe next 3 years. 8 9. 5.Project Objectives (I) I. Objectives for users To improve the quality of power supply To improve customer service with respect to incidentmanagement and modifications to contracts To provide information and enable customersto manage consumption and invoicing in amore efficient manner Invoicing based on real meter measurements9 10. 5. Project Objectives (II) II. Objectives for society at large and in a social and economic context Greater safety level in facilities and operations Greater integration of renewable energies, small power plants and of electric vehicles The development of an innovative project in new technologies, validating and extending the use of these technologies to other activity areas and making this a reference project worldwide To generate investment and financial activity in the field of energy-related infrastructure To reduce CO emission levels by improving energy efficiency10 11. 5. Project Objectives (III) III. Objectives for the power distribution system To progress towards compliance with the regulationon the replacement of electricity meters To improve service quality and reduce network losses Active and optimal operational management of grid resources and improved planning11 12. 6. Investment and employment of Bidelek Sareak ProjectProjects on a national levelInvestment : 5,500 million eurosCreation of around 25,000 jobs for highlyqualified personnelBidelek Sareak ProjectInvestment: 60 million eurosCreation of around 300 jobs for highlyqualified personnel 12 13. 7.Business Development Iberdrola as a driver of projects focused on modernising electricity grids Many Basque companies with the capacity to supply the required technology An opportunity for Basque companies to boost their position as leaders in the fieldof technology, positioning the Basque Country as the Electronic Power Valley ofSmart Grids Other leading industrial sectors in the Basque Country (automobile, renewableenergy, ICTs, home appliances, etc.) can also benefit from this projectSMART GRIDS is designed to be a reference project worldwide and a driverproject for energy companies and infrastructure13 14. Bidelek Sarea project.A technical overview Angel Daz Smart Grids Manager TECNALIA www.tecnalia.com 14 15. 8. Bidelek Sareak Project: ScopeCombination of urban and rural networksUrban environment In Bilbao 30 & 13 kV distribution over a wide area In Portugalete - 13 kV distribution over a concentratedarea.Rural environment: New rural sub-station in Lea-Artibai Upgrading of the Lekeitio rural sub-station Upgrading of the Markina rural sub-stationReplicability to other Basque Country municipalities15 16. 9. Deployment of the Bedelek Sareak Project:ActionsI. Roll out of smart metersII. Secondary substantions (remote management, monitoring and automation)III. New concept of HV/MV substationTo: Integrate distributed generation Integrate electric vehicles Develop innovative energy managementapplications 16 17. 9. Deployment of the Bedelek Sareak Project:Actions I. Roll out of smart meters: Existing meters will be replaced by new smart meters 200,000 meters for 360,000 people (Bilbao) 27,000 meters for 50,000 people (Portugalete) 17 18. Smart meter PRIME solutionsAdvantages of an open and public solutionvendors providersPRIME protocol 18 19. 9. Deployment of the Bidelek Sareak Smart GridProject: Actions II. Smart secondary substations: 1,100 secondary substations will be upgraded to provide the following services: 235 with remote management 700 with remote management and monitoring 165 with remote management, monitoring and automation. 19 20. Strategy for MV monitoringLevel 1Level 2 Level 3and automation basicmonitoring automationremote metering level 1 level 2Secondary substation+ +segmentation.Remote MV metering Bidirectional control + fault detection+ LV meteringautomation Alarmsjustification by law opportunityefficient operation Dispatching Scada and DMSIEC-104IP comm. Remote metering systemMV monitoringVccR, S, T, N IEC-104Vcc Automation20 21. 9. Deployment of the Bidelek Sareak Smart GridProject: ActionsIII. Upgrading of HV/MV substation in rural areas Compact modular rural sub-station demonstration project in Lea-Artibai Existing substations in Lekeitio and Ondarroa to beupgraded and equipped with smart technology: modulararchitecture, 61850 protocol.21 22. 9. Deployment of the Bidelek Sareak Smart GridProject: Actions IV. Development and start-up of the following applications: A Smart Metering portal Algorithms for automatic grid reconfiguration A platform for the management of electronic equipment A platform for grid information management Cable monitoring 22 23. 10. Conclusions of Bidelek Sareak Project1. Smart grids combination of traditional facilities with state-of-the-art ICTs technology2. Compliance with legislation = opportunity3. 60 M project investment Roll out of (200,000+27,000) smart meters HV/MV/LV: 1,100 secondary substations and 3 ruralprimary substations Integration of DG and EVs4. Improved energy and environmental efficiency5. Driver project for Basque companies6. Reference project worldwide 23 24. SMART GRIDS Bidelek SareakPROJECT Many thanksCopenhaguen, 20th March 2012Txaber LezamizAngel DazTechnology Development Manager Smart Grids ManagerEVE - Ente Vasco de la Energa TECNALIAwww.eve.es www.tecnalia.com 24