PILOT PROJECTS OF THE GROUP ČEZ IN THE

PILOT PROJECTS OF THE GROUP ČEZ IN THE FIELD OF SMART GRIDS ENERGY FOR THE FUTURE New energy for life 1

TABLE OF CONTENT § Visions § Expectations § Reality

SMART GRID CONCEPT PHOTOVOLTAICS HYDRO-POWER ST. (Renewable sources) WIND POWER ST. TRADITIONAL POWER STATIONS (Renewable sources) (Non-renewable sources)

WHAT IS A SMART GRID? § It is a next evolutionary step of DISTRIBUTION SYSTEMS evoked by new requirements – decentralised generation, e-mobility, …, which elicited the necessity of new functionalities of DS to ensure the implementation of such new requirements while providing reliable and safe operation of DS … § This was implemented many years ago through the Control Centre of the Power System at the level of VHV, HDO [power supply with ripple control] also at the level of LV SO WHERE IS A PROBLEM? § It concerns a system change – not a gradual technology development at the level of individual components – it requires huge financial sources & long time § Task definition: what functionalities are meaningful or economically beneficial in the Czech Republic and in what time – from the perspective of the whole society and not from the perspective of grid operators § What is the extent and reasonable schedule of Smart Grid implementation?

CONDITIONS FOR MEANINGFUL DEVELOPMENT OF SMART GRIDS § Definition of realistic goals (in the form of service parameters), including the assessment of impact on power prices for end consumers § Harmonisation of requirements and options of customers, market environment, subjects of regulation … and related laws of physics § Acquirement of know-how and experience §… § Definition of realistic implementation program – balancing of capacities, financial funds, agricultural terms, … § Creation of the national concept of meaningful development of Smart Grids within the current situation of the Power System of the Czech Republic

SMART GRIDS ARE JUST A VISION ? § Development of integration of renewable sources in the Czech Republic § e-mobility projects § Praha (Municipality) § PRE, ČEZ, E. ON (Utilities) § Possible future development in heating industry § Implementation of co-gen units

ČEZ IMPLEMENTS TWO SMART GRID PILOT PROJECTS Smart Region Smart Metering – AMM § Implementation of smart monitoring and automated elements in DS § Connection of various renewable energy sources and co-gen units § Tests of grid control concepts, island operation mode, e-mobility, active role of customer, etc. § Implementation in 2010 - 2015 § Implementation of 32, 000 units of Smart Meters + § Implementation of AMM infrastructure, connection with ICT systems of the Group ČEZ § Basis for nation-wide feasibility study § Implementation in 2010 – 2013

PILOT PROJECT OF SMART METERING - AMM

Situation of smart meter implementation in CZ Initial situation in the Czech Republic differs from other EU countries in many aspects : § Remote reading of 60 % of all power consumption is in use at 38, 000 industrial power consumers equipped with so called “continuous” electricity meters [meters with averaging of respective power output within a specified metering interval; data are transferred automatically] § HDO system [power supply with ripple control] is widely in use in the Czech Republic since 1980 -ties § HDO system serves for daily load diagram balancing - by shaving power consumption peaks; this system has been implemented by ČEZ Distribution for its 1. 1 million household power consumers § This system is in use for those consumers which utilise power for heating and hot service water preparation – various preferential [low] tariffs are available for such consumers § Quality and reliability parameters of power distribution grid are at high-standard level

What are the goals of AMM pilot project The purpose of AMM pilot project is to test a new technology in a real environment and to get answers to the following questions: § Smart meters: how will they be accepted by customers? § What is the potential of customer behaviour change? § Newly offered products and services: how will they be accepted by customers? § Possible total implementation of AMM in CZ: what will be its impact on logistics and processes? § What are the real benefits and costs of complete solution? § What implemental, operational or safety risks can emerge? § Can we get real and credible data or information for future decisions?

PILOT PROJECT SMART REGION

Why a Smart Region at Vrchlabí? § Adequate size and extent of the region for the pilot project purpose § Possibilities to include several co-gen plants and potentially also some small hydro power plants § With its close distance to Krkonoše Natural Park and stress on environment conservation, Region Vrchlabí is ideal for the concept of e-mobility § Synergic effect of high voltage level unification (change from 10 → 35 k. V) § Helpfulness of Municipal Council and Mayor of Vrchlabí § Potential to include local industry (Teplo Krkonoše [a heating provider], nkt cables)

What are goals and orientation of Smart Region Project? Smart grids Customers Technology Power generation • Modernisation of DS in • Possibility of monitoring • Deployment of • Erection of local power compliance with new requirements of both customers and producers • Two-way communication between DS and customers • Addition of new functionalities to DS, e. g. charging stations for e-vehicles of actual power consumption using smart meters • Better information on power consumption for customers • Testing of unique multiutility metering for households • Optimisation of power consumption control using smart meters charging stations and implementation of operation of e-vehicles • Automation and monitoring of components at the level of both high and low voltage • Local control system of DS with ability to act quickly in case of disturbances • Testing of wireless IT technologies for long distance data transfer generation sources – co-gen units • Supply of power to DS and supply of heat to central heating system • Power generation sources for testing of emergency grid conditions – e. g. island operation mode

What is the planned project development? Pilot project Smart Region § Research and development study § 2010 - 2012 § Implementation of smart meters § 2010 - 2011 § Transformation of distribution grid in § 2011 - 2015 § Deployment of charging stations for e- § 2011 - 2013 § Implementation of new automation and § 2011 - 2014 § Control system with implementation of § 2013 - 2015 § Inclusion of co-gen plants § 2012 - 2015 § Island operation mode testing within § 2014 - 2015 the region (in particular HV and DTS) including their unification mobility monitoring elements Smart Grid elements the locality Liščí Kopec

What was done by ČEZ within Smart Region project during previous year? Cooperation with universities and research institutions § ČVUT Praha / FEL § VŠB – TU Ostrava / FEI § EGE České Budějovice § Technical studies: § Final architecture of technological solution § Automated grid elements § Dynamic model of grid performance § Island operation mode § LV protection - full automation § LV protection - partial automation § Final concept of ICT solution

What was done by ČEZ within Smart Region project during previous year? Laying of new high-voltage cable line

What was done by ČEZ within Smart Region project during previous year? Implemented operation of e-vehicles and e-buses

What was done by ČEZ within Smart Region project during previous year? Installation of smart meters 18

Smart Region in 2012 Power generation units § Installation and putting in operation of co-gen units § 800 k. W in former AZ plant § 1600 k. W in nkt cables for power supply of Liščí Kopec – for creation and testing of island mode operation § 1600 k. W in nkt cables for plant operation E-mobility § Deployment of charging stations for quick and standard charging

Smart Region in 2012 § Continuing HV cable replacement § Laying of LV cables at Liščí Kopec § Installation of LV splitting boxes with remote automation and control elements § Installation of new transforming stations at Liščí Kopec with remote automation and control elements

GRID 4 EU Large-Scale Demonstration of Advanced Smart GRID Solutions with wide Replication and Scalability Potential for EUROPE European Smart Grid Project started on 1. 11. 2011 § Under the leadership of 6 distributors who cover more than 50 % of consumers in Europe § 27 partners (suppliers of technology, universities, research institutions) § Schedule: November 2011 - November 2015 § Project coordinator: ERDF

GRID 4 EU – LOCAL DEMONSTRATIONAL PROJECTS DER Active Demand Storage Electric Vehicle Innovation Power Management at MV Innovation Power Management at LV level Micro-grid (Islanding) Climate Population Density Cold & Stormy Continental/Oceanic Mild Mediterranean Moderate Continental Dry Mediterranean Cold Continental Warm & stormy Mediterranean Urban Semi-urban Rural Semi-urban / urban

CONCLUSION To cope with future (not virtual) reality, it is necessary to maintain visions sufficiently ahead of time and set real expectations adequately. § Smart grids are not only a technological layer – they should be perceived as new functionalities / services at the level of whole society § It is the task of society to define a meaningful and economically viable scenario of development § It is the system matter – it is necessary to keep the dialogue of all participating players § Even when having a very conservative view on the matter, it is necessary to start concept activities TODAY