ISGAN ANNEX 7 SMART GRIDS TRANSITIONS

ERA-NET SG+ Knowledge Community, Vienna, 19.5.2015 Klaus Kubeczko, Austrian Institute of Technology (AIT)

On Institutional Change

Focus of Annex 7

• Institutional Change and its Orchestration

• Strategic long-term thinking in alternative transformative pathways

• Distributed grids – Low-, Medium Voltage Levels

Task 1: Transition Processes and Pathways • Learn from past transitions (e.g. historical cases of electricity grid transition)

• Understand and model the dynamics of transitions (Agent Based Modelling, interdisciplinary concepts)

• Design and evaluate transition pathways towards alternative smart socio-technical energy systems built on smart grids (encourage the use of participatory methods for stakeholder involvement)

Task 2: Smart Reflexive Governance • Systematic information collection and analysis of policies supporting socio-technical transitions

• Developing a Strategic Research Agenda for Smart Governance - Investigating the evidence base for a Smart Grid Foresight

• Developing a design for a participatory Smart Grid Foresight pilot (e.g Austrian SRA-Intelligent Energy Networks)

Participants to the Annex 7

Country Name Organization

Austria Klaus Kubeczko

Manfred Paier

AIT Austrian Institute of Technology GmbH, Innovation Systems

Department (Vienna)

Belgium Erik Laes VITO (Flanders)

France Regine Belhomme EDF R&D, Economic and Technical Analysis of Energy Systems

Department (Paris)

Italy Andrea Ricci ISIS Institute of Studies for the Integration of Systems (Rome)

Netherland

Geert Verbong Eindhoven University of Technology, Department of Technology

Management, Technology and Sustainability Studies (Eindhoven)

Sweden

Harald Rohracher

Björn Sanden

Linköping University (Linköping)

Chalmers University (Gothenburg)

Germany Ludwig Karg B.A.U.M. Consult AG (Munich)

Canada Ian Rowlands University of Waterloo, Waterloo Institute for Sustainable Energy

(Waterloo)

United States Tbd. U.S. Department of Energy

LinkedIn - Discussion Group

The purpose of SMART GRID TRANSITION is to establish and maintain a network of researchers and practitioners dealing with smart grid deployment in the wider context of a long-term socio-technical transition towards a low-carbon economy. The Smart Grid Transition Group is open to qualified smart grid policy leaders, decision-makers, researchers, economists, analysts, students and journalists. Fellows at professional, technical & scientific societies; national academies; government, foundation & university programs are also welcome! The group covers current issues related to the socio-technical transition of energy systems based on Smart Grid solutions, policies, institutions, law, regulation, strategy, models, research, reflexive governance and orchestration processes. It does not cover technological issues independently of the socio-economic and institutional context.

ANNEX 7 SMART GRID TRANSITION – ON INSTITUTIONAL CHANGE

Smart Institutional Structures

Smart Governance

Processes Smart Actors

Smart Grid Technologies

Smart Grid Transition

Transition Governance

6

7. Replication

Orchestration

Institutional Change

SG visions of actor groups

e.g.

Grid operators CEER

Electrotechnical industry ICT sector

Cyber security Storage providers?

Electricity grid Directive 2009/72/EC SGAM

Power of cognitive frames

• What is in the centre of most Smart Grid representations? – SCIAC Cyber security -> Blackbox (ICT / electricity grid) – Metering International -> Smart meters in small households – Semiconductor Professionals -> Electricity Production – SG Technology Platform -> “the market” – AEG Grid Power -> The grid control – CLP Power Hong Kong -> end user and prosumer

• What is common to most Smart Grid representations? – All see Storage/Conversion as a key component

• How is the Storage-function positioned in Standardisation? – But it is in SGAM “hidden” as part of DER

• How is the Storage – function regulated in Directive 2009/72/EC? – No mention – not defined !

© 2010 CLP Power Hong Kong Limited

© SMARTGRIDS Austria

Smart Grid Architecture Model (SGAM)

Missing Storage / conversion domain

Priority areas of policy change (1)

Through a survey of ISGAN national delegates, research on the key challenges of transitioning to a smart grid, and the Smart Grid Transition Workshop in Shanghai 2015, Annex 7 identified the following 3 priority areas of policy change: 1 – Strategies & Policies for the Smart Grid Transition • Intensifying the coordination of policymakers and stakeholders across policy

fields (energy, climate, mobility …) and sectors (ICT, mobility, district heating …) in reaction to the increased complexity of both technological and socio-economic components of smart grids

• Overcoming short-term policy orientation with a movement towards long-term plans that are politically robust (e.g. resilient to disappointment cycles, adaptive to changing framework conditions)

• Setting up a new institutional framework for smart grids including – market rules (e.g., allowing for new actor groups to emerge), – consumer protection protocols/laws, and – data security

• Incentivizing institutional change, such as by supporting new business models for efficient use and storage of electricity from distributed energy resources

Priority areas of policy change (2)

2 – Orchestration of the Smart Grid Transition

• Applying a new approach of actor coordination and systemic thinking in linking previously unconnected stakeholder groups, research disciplines and sectors as well as local communities (e.g., developing and adapting integrated visions, roadmaps, and action plans for smart grids in the territorial context of smart cities)

• Intensifying the involvement of stakeholders in energy transitions and establishing an effective information exchange platform, being more inclusive of civil society organizations

• Creating a monitoring and assessment framework for the replicability of demonstration projects and socio-economic effects of new technologies

• Improving data availability and developing relevant indicators for monitoring smart grid transitions

• Generating knowledge and capacity building about the human factor, including a differentiated view on needs, values and social practices of citizens, customers and consumers

Priority areas of policy change (3)

3 – Innovation & Transition Process Support

• Fostering new initiatives for capacity building and training, including new curricula for smart grid engineers and transdisciplinary research teams

• Developing user oriented business models for demand side management and the integration of renewable energy sources

• Developing and implementing innovative financial models for re-/investment in new infrastructure and risk reduction in turbulent times, e.g. investor forums

• Replicating and upscaling innovative smart grid solutions effectively and quickly through new business models and institutional innovations

• Speeding up innovation processes – including incentive structures and action spaces, e.g. living labs allowing exemptions from regulatory restrictions to test new business models

• Setting up customer outreach and communication programs

We need to more bold thinking

OA Contact

KLAUS KUBECZKO

Research Coordinator - Transition Governance

Innovation Systems Department

Research, Technology and Innovation Policy

AIT Austrian Institute of Technology GmbH

Donau-City-Straße 1 | 1220 Vienna | Austria

T +43(0) 50550-4566 | F +43(0) 50550-4599

klaus.kubeczko@ait.ac.at | http://www.ait.ac.at

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