Discover the content (full Report here or by clicking on the picture on the right hand side) of the inventory of Smart grid and smart metering projects in Europe for 2014: it includes 459 smart grid projects from all 27 European Union countries and more.

You can check below highlights, dynamic infographics and a movie presenting selected figures from the Report just released. 

In summary

This report presents the latest analyses and insights from the most comprehensive database of smart grid projects across the European Union (EU) Member States. This rolling review, carried out on a periodical basis by the European Commission Joint Research Centre (JRC) in tight cooperation with the European Commission Directorate-General for Energy (ENER), builds upon the previous two smart grid project inventorying exercises published since 2011^a.

The 2014 edition of the inventory features also some highlights from the forthcoming "Benchmarking smart metering deployment in the EU-27 with a focus on electricity" and accompanying Staff Working Documents, prepared by DG JRC and DG ENER. The 3 documents provide an overview of progress of smart metering roll-out in the EU along with detailed Country-specific information on investments and costs assumptions adopted in national CBAs.

The current edition of the survey includes a total of 459 smart grid projects, launched from 2002 up until today, amounting to €3.15 billion investment. This study goes hand in hand with brand new interactive visualisation tools allowing the user to generate customisable maps, graphs and charts to track progress on smart grid projects realised in the 27 EU Member States (EU-27), plus UK, Switzerland and Norway.

Background and context

The anticipated benefits stemming from smart, digital grids cannot materialise without  guaranteeing appropriate levels of interoperability - i.e. the ability of smart grid actors, components and applications to work together by exchanging data and information.

The next-generation electricity grid is expected to integrate interoperable technologies – particularly in the energy, transport, information and communication fields, including: electric mobility solutions, demand response techniques, distributed ledger technologies / blockchains, storage devices, distributed energy generators – with the aim to increase reliability, affordability and sustainability of grid and market operations. 

As an example, the rated power of fast chargers, their expected operation during peak hours, their clustering and interoperability raise significant concerns. On one hand standards are required for power quality, especially harmonic distortion due to the use of power electronics connecting to high loads. On the other hand, infrastructure dimensioning and design limitations for those investing in such facilities need to be considered. 

A unified approach towards a European framework for developing interoperability testing specifications is still missing. To this end, in our laboratories we systematically test and quantify the digital grid interoperability through real world implementations. The establishment of an integrated distributed laboratory will facilitate the modelling, testing and assessment of power systems beyond the capacities of each single entity, enabling remote access to software and equipment anywhere in the EU.

Role

Against this background:

• We established a Smart Grid Interoperability Laboratory within a European Interoperability Centre for Electric Vehicles and Smart Grids. The Smart Grid Interoperability Laboratory, deployed in the JRC Ispra (IT) and Petten (NL) sites, supports the development of EU policies by testing of the interoperability of devices and systems according to the applicable standards and with reference to relevant architecture and use cases.

• The Smart Grid Interoperability Laboratory: tests the interoperability of solutions, from the market and from research projects; promotes the use of a common interoperability testing methodology based on the CEN-CENELEC-ETSI framework; networks with other European laboratories and research centres for common initiative; networks with European industrial actors in various sectors; disseminates the results of testing campaigns.

• We look into interoperability issues between the electric vehicles and the charging infrastructure, covering hardware and information exchange protocols. In particular, we assess EV fast charging devices' performances in different conditions and scenarios. Exposing electric vehicles to extreme temperatures limits their driving and charging performances. For the foreseen adoption of EVs not only it is important to study the technology behind it, but also the environment it will be inserted in. In Europe, temperatures ranging from -30 °C to +40 °C are frequently observed and the impacts on batteries are well known. However, the impact on the grid due to the performance of fast chargers under such conditions also requires analysis, as it affects both on the infrastructure’s dimensioning and design. 

• We compiled best practices in a unified smart grid interoperability testing methodology, comprising of activities, inputs and outputs, and considering a wide range of smart grid implementations. We propose a detailed test set up, by designing an extensive template for the Basic Application Interoperability profile to be used as an interoperability testing protocol. The test specifications are created to guide the stakeholder through a step by step process by setting the Equipment under Test (EUT), the System under Test (SUT) and the control/measuring equipment. The whole process will be automated through a database, which will be made open source to be used as a common reference.

• We realised the first test case addressing interoperability in the context of Demand Side Management. The two steps indicated in the Interoperability Testing Methodology have been followed: First, the Demand Side Management test bed was built and tested from scratch. We have realised and tested an end-to-end small scale system in the lab from the customer to the energy provider and the DSM concept has been followed by achieving communication between consumer-energy provider. Remote load control has been accomplished. Afterwards, the first interoperability test was carried out by embedding a new smart meter. Three interoperability layers have been tested. The importance of a DSM program has been highlighted and its feasibility has been proved emphasizing on the customers' involvement and active participation in reducing consumptions.

• We study the opportunities and challenges of deploying blockchains and distributed ledger technologies in the energy sector. These tehcnologies indeed promise to support several European Union’s climate-neutrality and sustainability policies, thanks to their potential to drastically change the market rules, and streamline the decision-making processes and the system management mechanisms. Among the main challenges for regulating the blockchain deployment in the electricity sector, one can consider the following ones: to balance technical innovation with the scalability of solutions, to define and allocate decentralised responsibilities of electricity supply and distribution; to incentivise consumers to invest in flexibility technologies; to find a balance between consumer empowerment (self-responsibility) and protection.
   

2021 - Blockchain Technology Applied to Energy Demand Response Service Tracking and Data Sharing

In this study we applied distributed ledger (DLT)/blockchain technology to securely track Demand Response provision, focusing on the validation aspect, assuring data integrity, origin, fast registry, and sharing within a permissioned system, between all relevant parties. We propose a framework for DR registry and implemented it as a proof of concept on Hyperledger Fabric, using real assets in a laboratory environment, in order to study its feasibility and performance.

The lab set up includes a 450 kW energy storage system, scheduled to provide DR services, upon a system operator request and the corresponding validations and verifications are done, followed by the publication on a blockchain. The performance of the implementation showed scalable results, which enables real world adoption of DLT in supporting the development of flexibility markets, with the advantages of blockchain technology.

2021 -The integration of dynamic demand in electricity markets: Blockchain 3.0

Microgrid level operated energy markets have specificities well served rather by autonomous instead of aggregated approaches. Ancillary services and peer-to-peer energy exchange also could be organized at the aggregator level but on each prosumer level using blockchain 3.0 solutions. Blockchain 3.0 provides operational advantages such as reduced transaction costs due to the absence of a trusted authority and the lack of single point of failure but it requires relatively increased computational resources and enhanced measures to safeguard privacy. Existing blockchain implementations include Bitcoin, Ethereum, Hyperledger, Corda, Tendermint, Chain Core, Quorum. Each one of these demonstrates different characteristics and they have better fit to different energy market applications. Blockchain energy markets could be organized on Implementation, System Local and Entities level. This chapter provides the relevant bibliography and analyses Blockchain 3.0 technology giving emphasis to storage and demand management microgrid applications.

2018 - Smart grid interoperability testing methodology

This report proposes a methodological framework for interoperabilty testing in the smart grid field. Smart grid interoperability is an important enabling aspect of electricity technology deployments. It involves all parts of the smart grid from generation to transmission and from distribution to consumption. Testing interoperability requires producing detailed test cases describing how smart grid components are intended to interact with each other.

A systematic approach for developing smart grid interoperability tests may facilitate the dissemination of innovative solutions, the stability and resilience of the smart grid. This report provides an analysis of the methods applicable to smart grid interoperability tests. It comprises the body of methods and principles associated with smart grid interoperability and it proposes a methodology offering theoretical underpinning to the necessary set of methods and best practices for developing successfully smart grid interoperability testing specifications.

2018 - Distributing Load Flow Computations Across System Operators Boundaries

This paper proposes a novel distributed load flow solver enabling for better cross border flow analysis and fulfilling possible data ownership and confidentiality arrangements in place among the actors. The upward trends in renewable energy penetration, cross-border flow volatility and electricity actors’ proliferation pose new challenges in the power system management. Electricity and market operators need to increase collaboration, also in terms of more frequent and detailed system analyses, so as to ensure adequate levels of quality and security of supply.

The model exploits an Inexact Newton Method, the Newton–Krylov–Schwarz method, available in the portable, extensible toolkit for scientific computation (PETSc) libraries. A case-study illustrates a real application of the model for the TSO–TSO (transmission system operator) cross-border operation, analyzing the specific policy context and proposing a test case for a coordinated power flow simulation. The results show the feasibility of performing the distributed calculation remotely, keeping the overall simulation times only a few times slower than locally.

2018 - NB-PLC channel: Estimation of periodic impulsive noise parameters and mitigation techniques

This paper proposes a method to estimate the occurrence and duration of the dominant category of noise, the periodic impulsive noise, which greatly degrades the signal quality. Narrowband Power Line Communication (NB-PLC) plays a key role in the deployment of smart grid, since it is a widely spread technology for smart grid applications and systems, like the Advanced Metering Infrastructure (AMI) system. In this paper, we study the characteristics of the NB-PLC channel and noise. A technique is proposed to mitigate the noise effect, with the use of Luby Transform (LT) codes. The proposed scheme exploits the features of the dominant noise on the NB-PLC channel and mitigates its effect especially in highly noisy environments. An estimation algorithm of the burst time occurrence and its duration is introduced. The system can estimate these parameters with an accuracy in the range of 10−4 and it can work even without channel state information. The proposed scheme is compared to two popular NB-PLC technologies, namely the PRIME and G3-PLC, whereas the results show that it can be very effective under severe noise conditions.

2018 - Smart Meter Traffic in a Real LV Distribution Network

This paper examines the smart meter traffic that needs to be accommodated by a real distribution system. Parameters such as the message size and the message transmission frequency are examined and their effect on traffic is showed. Limitations of the system are presented, such as the buffer capacity needs and the maximum message size that can be communicated. For this scope, we have used the parameters of a real distribution network, based on a survey at which the European Distribution System Operators (DSOs) have participated. For the smart meter traffic, we have used two popular specifications, namely the G3-PLC–“G3 Power Line communication” and PRIME–acronym for “PoweRline Intelligent Metering Evolution”, to simulate the characteristics of a system that is widely used in practice. The results can be an insight for further development of the Information and Communication Technology (ICT) systems that control and monitor the Low Voltage (LV) distribution grid. The paper presents an analysis towards identifying the needs of distribution networks with respect to telecommunication data as well as the main parameters that can affect the Inverse Fast Fourier Transform (IFFT) system performance. Identifying such parameters is consequently beneficial to designing more efficient ICT systems for Advanced Metering Infrastructure.

2018 - A DSM test case applied on an end-to-end system, from consumer to energy provider

This paper describes a small scale system, built and tested in our lab, which represents a real end-to-end system from the consumer to the energy provider. Real-time informed consumers can offer the needed flexibility through modifying their behaviour or by engaging with Demand Side Management (DSM) programs. The latter requires the intervention of several actors and levels of communication management which makes this task difficult from an implementation perspective. We programmed the system according to the Object Identification System (OBIS) specification to obtain consumers’ consumption through smart meters with high frequency (one minute). This allows remote control of their appliances in order to reduce the total neighbourhood consumption during critical time periods of the day (peak time). These results and the realisation of a realistic end-to-end system open the way to more complex tests and particularly to the possibility of benchmarking them with other lab tests.

2018 - Power Quality Performance of Fast-Charging under Extreme Temperature Conditions

This paper analyses six different fast-chargers while charging a full battery EV, under four temperature levels (−25 °C, −15 °C, +20 °C, and +40 °C). Exposing electric vehicles (EV) to extreme temperatures limits its performance and charging. For the foreseen adoption of EVs, it is not only important to study the technology behind it, but also the environment it will be inserted into. In Europe, temperatures ranging from −30 °C to +40 °C are frequently observed and the impacts on batteries are well-known. However, the impact on the grid due to the performance of fast-chargers, under such conditions, also requires analysis, as it impacts both on the infrastructure’s dimensioning and design. The current total harmonic distortion, power factor, standby power, and unbalance were registered. Results show that the current total harmonic distortion (THD_I) tended to increase at lower temperatures. The standby consumption showed no trend, with results ranging from 210 VA to 1650 VA. Three out of six chargers lost interoperability at −25 °C. Such non-linear loads, present high harmonic distortion, and, hence, low power factor. The temperature at which the vehicle’s battery charges is crucial to the current it withdraws, thereby, influencing the charger’s performance.

2017 - Fast charging diversity impact on total harmonic distortion due to phase cancellation effect

This report analyses performances and impact on power quality of different fast chargers for electric vehicles.

Full charging cycles were performed in the studied chargers and THDV and THDI were observed. From the measurements it can be observed that the phase angles vary within a preferential range, i.e. remain within a range which is actually <90˚of amplitude.

Two of the Chargers, working individually, failed to comply with the standards. Charger A barely makes it in terms of TDD and Charger C is out of the limit. In terms of individual harmonics also Charger A and Charger C are out of the limit of 4.5% for the 11th and 13th harmonics.

The next step of the research will be to obtain the statistical distribution of each of the phase angles for all Chargers and perform simulations with different scenarios. Results so far suggest that stand alone Chargers with low short circuit values are recommended to have filters <13% THD.

2017 - Multi-site European framework for real-time co-simulation of power systems

This paper describes a framework for virtual integration of laboratories enables co-simulation and joint experiments that include hardware and software resources hosted at geographically distributed laboratories. The underlying concept of such framework is geographically distributed real-time (RT) co-simulation. To this end, digital RT simulators are interfaced over long distances via shared communication network such as the Internet. This study proposes an architecture for a modular framework supporting virtual integration of laboratories that enable flexible integration of digital RT simulators across Europe. In addition, the framework includes an interface that enables access for third parties via a web browser. A co-simulation interface algorithm adopted in this study is based on representation of interface quantities in form of dynamic phasors. Time delay between RT digital simulators is compensated by means of phase shift that enables simulation fidelity for slow transients. The proposed architecture is realised for the integration of laboratories across Europe that are located at RWTH Aachen University in Germany, Politecnico di Torino in Italy and at European Commission Joint Research Centres in Petten, Netherland and in Ispra, Italy. The framework for virtual integration of laboratories presented in this study is applied for co-simulation of transmission and distribution systems.

2016 - A European Platform for Distributed Real Time Modelling & Simulation

This report presents the proposal for the constitution of a European platform consisting of the federation of real-time modelling and simulation facilities applied to the analysis of emerging electricity systems. Such a platform can be understood as a pan-European distributed laboratory aiming at making use of the best available relevant resources and knowledge for the sake of supporting industry and policy makers and conducting advanced scientific research.

The report describes the need for such a platform, with reference to the current status of power systems; the state of the art of the relevant technologies; and the character and format that the platform might take. This integrated distributed laboratory will facilitate the modelling, testing and assessment of power systems beyond the capacities of each single entity, enabling remote access to software and equipment anywhere in the EU, by establishing a real-time interconnection to the available facilities and capabilities within the Member States.

2016 - Smart Grid Interoperability lab at the JRC

This paper presents the scope of the Smart Grid Interoperability lab of the JRC. The lab is a testing facility on the interoperability of smart grid systems and its aim is to assess technological implementations according to proposed standards, use cases and processes in conjunction with applicable reference architectures. The goal is to contribute to policy making and industrial innovation regarding the modernization of the electricity grid.

The lab will work on the verification of the interplay among grid components, benchmarking of different solutions, and identification of gaps and challenges. The work is performed in collaboration with industry and research institutions.

The paper presents the latest research activities of the lab, focusing on interoperability and assessing new technologies as well as on the integration of its simulation facilities with other European smart grid labs with the aim to develop a pan-European platform for testing and simulation for power systems analysis. Emphasis is given to the European political context.

2015 - Grid harmonic impact of multiple electric vehicle fast charging

This paper reports results from four sets of measurements performed during the complete charging cycle of an EV, and analyses individual harmonic’s amplitude and phase angles behaviour. In addition, the voltage and current Total Harmonic Distortion (THD) and Total Demand Distortion (TDD) are calculated and the results compared with the IEEE519, IEC 61000/EN50160 standards. Additionally, two vehicles being fast charged while connected to the same feeder are simulated and an analysis is carried out on how the harmonic phase angles would relate. The study concludes that TDD is a better indicator than THD, since the former uses the maximum current (IL) and the latter uses the fundamental current, sometimes misleading conclusions, hence it is suggested it should be included in IEC/EN standard updates. Voltage THD and TDD for the charger analysed, were within the standard’s limits of 1.2% and 12% respectively, however individual harmonics (11th and 13th) failed to comply with the 5.5% limit in IEEE 519 (5% and 3% respectively in IEC61000). Phase angles tended to have preferential range differences from the fundamental wave. It was found that the average difference between the same harmonic order phase angles was lower than 90°, meaning that when more than one vehicle is connected to the same feeder the amplitudes will add. Since the limits depend on the upstream short circuit current (ISC), if the number of vehicles increases (i.e. IL), the standard limits will decrease and eventually be exceeded. The harmonic limitation is hence the primary binding condition, certainly before the power limitation. The most binding limit to the number of chargers is not the power capacity of the upstream power circuit but the harmonic limits for electricity pollution.

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JRC study on Smart Grid projects in Europe:
 
1 - Map of Smart Grid projects
2 - Full JRC Report
Read also the JRC Press release
Initiatives on Smart Grids are growing in number, participants and scope. Before 2011, no inventory of Smart Grid projects in Europe was available and the sharing of project experiences was limited.
Following a request from DG ENER, the JRC Smart Electricity Systems Action carried out an independent assessment of smart grid projects throughout Europe. We launched a survey to collect smart grid experiences in Europe and support analysis on trends and developments in Smart Grids implementation.
Summary information from all the collected projects is now available online via a new mapping tool. This map represents the first comprehensive inventory of Smart Grid projects in Europe.
The Reference Report on smart grids, co-authored by DG ENER and JRC, is also downloadable. It includes detailed analyses of the smart grid landscape and assesses in which direction Europe is moving in the field of smart grids.
As a next step, we are working at developing a complete cost-benefit analysis for smart grids.

Background and context

We work with several customers and partners, on different projects and networks. We are also strengthening cooperation with EU and international stakeholders on smart transmission and distribution grids.

The JRC plays an active role in fostering international and cross-regional networks to help tackle pressing concerns in a harmonised and effective manner. This work is important for promoting knowledge transfer and for establishing international standards, for instance for a common electrified transport system in the whole of Europe and on the other side of the Atlantic, which is also able to incorporate energy from renewable sources.

The JRC has strong partnerships with the Member States not only at national, but also at regional level. It cooperates closely with them to facilitate the establishment of closer links between the European scientific community and the Commission through partnerships with universities, national academies and other umbrella research organisations.

The JRC's partnerships with key industry associations are also crucial as they provide opportunities for exchange on research and technological developments.

More in detail, we work with: European Commission and national policy makers; National governments and agencies; Industrial partners; Research organisations; Academia.

Our international cooperation activities over the last years focused on a few selected countries including USA, Brazil, China, Africa and India.

International cooperation

Learn more about some of our international cooperation initiatives and outputs with US, China, Brazil, India...

2018 - Submarine power cable between Europe and North America: A techno-economic analysis

This article addresses the potential of interconnecting electricity systems to geographically aggregate remotely located variable power sources. Increasing the deployment of power generators using variable renewable power sources, such as wind and solar, brings power balancing challenges in electricity systems. One mean to achieve power balancing and to share balancing resources, is to interconnect.

The article provides insights for electricity trading through a submarine power cable between Europe and the eastern part of North America. While such ambitious power interconnection concepts appear in recent literature, this article is the first to present a techno-economic analyses. This article concludes that, a 4000 MW cable between Europe and North America could bring an annual socio-economic benefit of 177 M€ in 2030. In addition to the differences in generation costs, mutual benefits from electricity trading between Europe and North America derive from different daily peak demand times, low correlation in generation from renewable energy sources, and in seasonal demand variations. The results of the cost-benefit analysis indicate that the benefit for society is sufficient to cover the investment costs. Thus, the proposed interconnector is welfare improving.

2017 - A China-EU electricity transmission link

This report looks at the potential routes for a future power interconnection between EU and China. China has launched in 2016 the idea of transmitting electricity as far as Germany via an Ultra High Voltage Direct Current (UHVDC) link. China intends to exploit its RES from north-eastern regions both for domestic use and for export. The country has the capabilities to project and build long and powerful systems to transmit electricity across the country for thousands of kilometres.

Three route scenarios are considered and analysed, all starting in RES-rich areas in western China and heading towards Europe on three different paths. High voltage direct current technology is considered and its potential is assessed.

The renewable energy sources in the countries along the potential routes as well as the power sector and power grid in the countries crossed are analysed.

2017 - Science for the AU-EU Partnership - Building knowledge for sustainable development

This report focuses on the African dimension of the partnership. It explores the opportunities and challenges arising from the fact that Africa has over twice the population of the EU, is the world’s most youthful continent, has an economy that is growing faster than that of the EU, is almost seven times larger geographically, yet is vulnerable to diverse internal and external stresses.

People, planet, prosperity and peace are four priorities shared by Africa and Europe, and areas where opportunities for beneficial cooperation abound. Over the past three decades, the JRC has worked with many organisations and institutions across Africa.

This report and its accompanying interactive online service ‘Africa StoryMaps’ present the key findings from this collaboration, and set out options the decision-making, research and education communities may consider. Our contribution was mainly centered on the energy systems and infrastructure challenges for Africa.

2016 - Benefit Analysis of Smart Grid Projects: White Paper 2014-2016

This paper, in which the JRC produced the European section, reviews and compares the US, Chinese and European approaches towards assessing benefits of smart grid pilot projects. It analyzes experiences to highlight their differences, advantages, and disadvantages. In the U.S., we assess projects at two sites: the University of California, Irvine campus (UCI); and the Navy Yard (TNY) area in Philadelphia. In China, we cover several smart-grid aspects of the Sino-Singapore Tianjin Eco-city (TEC) and the Shenzhen Bay Technology and Ecology City (B-TEC). In Europe, we look at a benefit analysis of a pilot smart grid project in the Malagrotta area west of Rome, Italy.

The Irvine sub-project benefit analyses use the U.S. DOE Smart Grid Computational Tool (SGCT), which is built on methods developed by the Electric Power Research Institute (EPRI). The TEC sub-project benefit analyses apply Smart Grid Multi-Criteria Analysis (SG-MCA) developed by the State Grid Corporation of China (SGCC) based on the analytic hierarchy process with fuzzy logic. The B-TEC and TNY sub-project benefit analyses are evaluated using new approaches developed by those project teams. JRC has adopted an approach similar to EPRI's but tailored to the Malagrotta distribution grid.

2014 - Paths Toward Smart Energy: A Framework for Comparison of the EU and China Energy Policy

This paper presents the concept of “smart energy” as a way to embrace the target to meet commitments to the world's sustainability, and performs a comparison of the energy policies of two key-world players, the EU and China, is undertaken in this context.

National decisions and behaviors are strictly interdependent and each of them may affect the whole planet; hence, the harmonization and coordination of the policy are the key issues. This is particularly true in the energy sector, where scarce resources, which are presently unevenly shared by the various nations with the possibility of conflicts arising need to be allocated to keep the pace with economic growth and in a manner compatible with the preservation of the environment. 

A framework for quantitatively assessing the effectiveness of various specific policy tools is proposed. The policies are defined and analyzed with reference to the general goals, the tools to pursue those goals and their outcomes, possibly in a quantitative manner resorting to a set of meaningful metrics.

2014 - Redes Elétricas Inteligentes Diálogo Setorial Brasil-União Europeia

This report is a final product of the Sectorial Dialogue EU-Brazil 2014 in the area of Smart Grids, where JRC is the main EU counterpart.

The document presents an extensive overview of the Smart Grid related activities in Brazil and EU and in particular, covers the following topics: i) Identification of projects in Brazil and Europe in the area of Smart Grids; ii) Information on manufacturers / suppliers of equipment of Smart Grid infrastructure in Brazil and Europe; iii) Identification of public and private institutions in Brazil and Europe, such as: research centers, universities and institutes involved in the area of Smart Grids and iv) analysis of industrial, science and technology policies in Brazil and Europe.

The report addresses relevant issues associated with the smart grid topic in Brazil and EU and provides support for the development of public policies in Science, Technology and Innovation and Industrial policies in Brazil. It is expected that this report, coordinated by the Brazilian Ministry of Science, Technology and Innovation will mobilize actions of other government actors as well as business and academics in Brazil.

2012 - Assessing Smart Grid Benefits and Impacts: EU and US Initiatives

This report aims to find common ground between EU and US assessment approaches on Smart Grid projects. This joint work was carried out in the framework of the EU-US Energy Council, which intends to deepen the transatlantic dialogue on strategic energy issues such as policies to move towards low carbon energy sources while strengthening the on-going scientific collaboration on energy technologies.

In the last few years, initiatives on Smart Grids have been growing in number and scope on both sides of the Atlantic. A variety of projects has been deployed throughout Europe and US with different aims and results. Substantial public and private investments have been committed to research and development (R&D), demonstration and deployment activities. At this stage, there is a need to evaluate the outcome of implemented projects and share experiences and lessons learned. Effective project assessment and knowledge sharing is instrumental to prioritize policy initiatives, unlock market investment potentials and instil trust and understanding in consumers.

The report first assesses correspondences among definitions, terminology and methodological approaches, in order to clarify commonalities and differences. Secondly, it tries to strengthen cooperation on assessment frameworks and on sharing data collection experiences, project results and lessons learned.

Background and context

Smart and digital grids are enablers of the European strategy toward a low-carbon energy future. Their deployment requires that significant investments are mobilized.

What is for consumers in this digital grid revolution? Why market players should invest resources on technologies and solutions for renewed power system configurations? Who are the beneficiaries of smart electricity system developments? How winners and losers can be anticipated in the changing regulatory framework? What are the instruments and methodologies to capture all the possible benefits and costs?

In order to gauge the implications of the anticipated paradigm shift for the electricity system, new reference architectures and assessment methodologies shall be developed to properly capture the interactions between the different actors and technologies to value and allocate the costs and benefits of such transformation. A fair allocation of (predominantly) shorter term costs and (generally) longer term benefits among different players is a precondition for reducing uncertainties and incentivise investments. 

Specific provisions in the Third Energy Package foster smart meter deployment wherever benefits outweigh costs. The 2016 Clean Energy Package proposal goes beyond this and states that all consumers should be entitled to request a smart meter from their suppliers.

Our role

Against this background, over the last seven years, we made efforts towards identifying, defining and applying assessment strategies and approaches for optimal decision-making on smart electricity systems. More in detail, we informed the policy decision making through the following studies and products:

• Guidelines for cost-benefit analysis of smart grid projects. We developed a comprehensive assessment framework of smart grid projects centered on a cost-benefit analysis.

• Guidelines for cost-benefit analysis of smart metering infrastructure. The EU aims to replace at least 80% of electricity meters with smart meters by 2020 wherever it is cost-effective to do so. To measure cost effectiveness, EU countries conducted cost-benefit analyses based on guidelines we contributed to develop.

• Examples of applications to smart electricity projects and demonstrators. We applied our assessment approach to smart grid pilots and larger scale projects (e.g. covering the whole city of Rome).

• Comparison of international assessment approaches and frameworks. In particular, we partnered with US, Chinese and Brazilian actors to find synergies and differences in our evaluation methodologies and identify strengths and weaknesses. 

• Analyses on smart grid projects of common interest. We developed a multi-criteria assessment framework including: a) a checklist to verify that project proposals meet the requirements set out by the Regulation; b) a techno-economic assessment based on Key Performance Indicators able to capture the key features of each project; c) a Cost Benefit Analysis of each project.

2018 - Cost-benefit analysis of Smart Grid projects: Isernia

This report presents the results of the application of the JRC cost-benefit analysis methodology to the ENEL smart grid project in Isernia. The Isernia project was chosen for the wide range of smart grid technologies covered in a real-world user environment. The project, which is funded by the Italian regulator, started in 2011 and ended in 2015.

The goal of this report is twofold: a) to gather insights on the real costs and benefits of a smart grid pilot project, including the societal ones, collecting crucial information for replication at large scale of the solutions tested; and b) to continue implementing the JRC cost-benefit analysis methodology on real projects, in order to build a solid case for its application to the most diverse smart grid projects as a decision-making tool for public and private investors in smart grid.

In addition, useful metrics to monetise smart grid benefits have been provided in this report, thus contributing to the definition of evaluation criteria that could be used in further applications.

2018 - Smart (Electricity) Grids for Smart Cities: Assessing Roles and Societal Impacts

This paper first discusses the main impact that smart grid deployment has, in  different  respects, in smart cities and then presents a methodology for an extended cost benefit analysis, able to go beyond the strictly financial aspects. It is based on previous developments at the European level.

Smart energy and electricity networks are a crucial component in building smart city architectures; their consistent and harmonized inclusion in the smart city design should be carefully considered through a detailed analysis of the impacts (environmental, energy, economic, societal) and the implementation of cost benefit analysis, not only in terms of managing the grid itself but also in a wider perspective that includes environmental, security, and social aspects.

The methodology conceptually illustrated can  naturally be extended to the assessment of proposals for the development of smart cities.

2017 - Assessment framework for Projects of Common Interest in the field of Smart Grids

This report presents an update of the assessment framework to evaluate smart grid projects of common interest, in line with Regulation (EU) 347/2013 on guidelines for trans-European energy infrastructure. In this context, every 2 years the European Commission establishes an EU-wide list of projects of common interest (PCIs), consisting of key energy infrastructure projects in the EU. These are essential for deepening the interconnection of Europe's internal energy market and reaching the EU’s energy policy objectives of affordable, secure and sustainable energy.

The assessment framework for smart grid PCI candidates is based on Annex V to the Regulation and it consists of: i) a checklist to verify project compliance with the general criteria, set out by the Regulation in Article 4(a) and (c); ii) a cost–benefit analysis to argue the economic viability of the project; and iii) an analysis based on Key Performance Indicators (KPIs) for evaluation of the non-monetary impacts. The assessment methodology is intended to guide project promoters in preparing their project proposals and assist the Smart Grid Regional Group in proposing smart grid projects of common interest.

2016 - Benefit Analysis of Smart Grid Projects: White Paper 2014-2016

This paper, whose European section was authored by the JRC, reviews and compares the US, Chinese and European approaches towards assessing benefits of smart grid pilot projects. It analyzes the three experiences to highlight their differences, advantages, and disadvantages. In the U.S., projects at two sites are assessed: the University of California, Irvine campus (UCI); and the Navy Yard (TNY) area in Philadelphia. In China, we cover several smart-grid aspects of the Sino-Singapore Tianjin Eco-city (TEC) and the Shenzhen Bay Technology and Ecology City (B-TEC). In Europe, we look at a benefit analysis of a pilot smart grid project in the Malagrotta area west of Rome, Italy.

The Irvine sub-project benefit analyses use the U.S. DOE Smart Grid Computational Tool, which is built on methods developed by the Electric Power Research Institute (EPRI). The TEC sub-project benefit analyses apply the Smart Grid Multi-Criteria Analysis developed by the State Grid Corporation of China based on the analytic hierarchy process with fuzzy logic. The B-TEC and TNY sub-project benefit analyses are evaluated using new approaches developed by those project teams. The JRC, instead, tailored an approach similar to EPRI's to the Malagrotta distribution grid case.

2015 - A smart grid for the city of Rome

This report, drafted by the JRC in collaboration with Rome's electricity Distribution System Operator (ACEA, now Areti), assesses the merits of deploying smart grids all over the city of Rome. For the first time, the JRC's Smart Grid Cost-Benefit Analysis (CBA) has been applied to a full-scale smart grid urban project, rather than to a small-size pilot only. The overall outlook for Rome's smart grid project turns out to be positive from both the private investor’s and the societal perspective. This report shows how the JRC's smart grid CBA methodology can be used to assess the financial and economic viability of real Smart Grids projects and help the investment decisions of Distribution System Operators.

The ACEA Smart Grid Project tests novel automation, monitoring and remote control solutions on different sections and voltage levels of the distribution grid. The project includes three sub-projects: Automation; Medium/Low voltage Monitoring; New Network Management Criteria. After a preliminary analysis of the pilot project in the district of Malagrotta (Rome), the study extends its focus to the whole grid of Rome, which connects more than a million electricity users. The CBA is conducted from both the private investor’s and the societal perspective, followed by a comprehensive sensitivity analysis to test the robustness of the results to variations (especially adverse) in the influential parameters.

2014 - Assessment framework for projects of common interest in the field of smart grids

This report presents the methodology elaborated by the JRC within the Smart Grids Task Force, Expert Group on Smart Grid Infrastructure Deployment (Expert Group 4).

The Regulation 347/2013 on guidelines for trans-European energy infrastructure provides for the establishment of a EU-wide list of "Projects of Common Interest", a label identifying key energy infrastructure projects in EU. Within this framework, Expert Group 4 had the mandate to define an evaluation framework for project proposals in the field of smart grids.

On the basis of its experience on Cost Benefit Analysis of smart grid projects, the JRC developed a multi-criteria assessment framework including: a) a checklist to verify that project proposals meet the requirements set out by the Regulation; b) a techno-economic assessment based on Key Performance Indicators able to capture the key features of each project; c) a Cost Benefit Analysis of each project.

2013 - Evaluation of Smart Grid projects within the Smart Grid Task Force

This report presents the outcome of the evaluation of smart grid energy infrastructure project proposals carried out by Expert Group 4 (EG4) of the Smart Grid Task Force. This process was carried out using the assessment framework developed by EG4 for Projects of Common Interest (PCI) in the field of smart grids. This latter and the present document shall serve as guidance for the regional groups when proposing and reviewing PCI, under the trans-European energy infrastructure Regulation (EU) 347/2013.

Project promoters will be asked to demonstrate the project’s economic viability and cost-effectiveness in accordance with the trans-European energy infrastructure regulation (Art. 4(1) (b)), by explaining how potential benefits will outweigh the project costs, and will support their case with a societal cost-benefit analysis (CBA) and qualitative appraisals of benefits that cannot be reliably monetised.

Fulfilment of the technical requirements is a precondition for further evaluation of a project proposal, according to the policy and economic criteria.

2012 - A business case for smart grid technologies: a systemic perspective

In this paper, we present a systemic perspective aimed at establishing technical and economic synergies that may improve the business cases of individual different Smart Grid technologies and contribute to reverse the consumption-driven paradigm of the electricity sector. 

The digitalization of the electricity grid opens the way to bundle value added services to the electricity commodity, and possibly shift business value to electricity services in line with the notions of efficiency, conservation and sustainability. In this context, market forces should be mobilised within the boundaries of energy policy goals to contribute to the massive investments that are required to fulfill the smart grid vision.

Our analysis is supported by evidence from applications in the electric vehicle and smart meter ecosystems. Throughout the paper, an EU perspective is primarily considered.

2012 - Assessing Smart Grid Benefits and Impacts: EU and US Initiatives

This report aims to find common ground between EU and US assessment approaches on smart grid projects. This joint work was carried out in the framework of the EU-US Energy Council, to deepen the transatlantic dialogue on strategic issues such as policies to move towards low carbon energy sources while strengthening the on-going scientific collaboration on energy technologies.

In the last few years, initiatives on Smart Grids have been growing in number and scope on both sides of the Atlantic. A variety of projects has been deployed throughout Europe and US with different aims and results. Substantial public and private investments have been committed to research and development, demonstration and deployment activities. At this stage, there is a need to evaluate the outcome of implemented projects and share experiences and lessons learned. Effective project assessment and knowledge sharing is instrumental to prioritize policy initiatives, unlock market investment potentials and instil trust and understanding in consumers.

The report first assesses correspondences among definitions, terminology and methodological approaches, in order to clarify commonalities and differences. Secondly, it tries to strengthen cooperation on assessment frameworks and on sharing data collection experiences, project results and lessons learned.

2011 - Guidelines for cost-benefit analysis of smart grid projects

This report provides guidance and advice for conducting cost benefit analysis of Smart Grid projects. We present a step by step assessment framework based on the work performed by EPRI (Electric Power Research Institute) on cost-benefit analysis and provide methodological guidelines and best practices. Modifications to fit the European context have been proposed wherever necessary. This work draws on the existing collaboration between the EC and the US Department of Energy in the framework of the EU-US Energy Council.

A European smart grid project has been selected from the JRC catalogue and used as a case study to test and illustrate the proposed assessment framework. The analysis is supported by a thorough reference to existing literature on cost-benefit analysis and on concrete results of available cost-benefit analysis carried out on the field.

On the basis of this exercise, we provide guidelines to tailor assumptions to local conditions, to identify and monetize benefits and costs, and to perform sensitivity analysis of most critical variables. The report also discusses the identification of indirect benefits (externalities) and social impacts that can result out of the implementation of smart grid projects but that cannot be easily monetized and factored in the cost-benefit computation.

2011 - Guidelines for cost-benefit analysis of smart metering deployment

This report presents a step by step assessment framework based on the work performed by EPRI (Electric Power Research Institute), and we provide guidelines and best practices. Several additions and modifications to fit the European context have been proposed. This work draws on the existing collaboration between the EC and the US Department of Energy (DoE) in the framework of the EU-US Energy Council.

The assessment framework is structured into a set of guidelines to tailor assumptions to local conditions, to identify and monetize benefits and cost, and to perform sensitivity analysis of most critical variables. It also provides guidance in the identification of externalities and social impacts tha can result from the implementation of smart metering deployment but cannot be easily motetized and factored into the cost benefit computation.

This study represents the application to the specific case of smart metering deployment of the general guidelines for conducting a cost benefit analysis of Smart Grid projects.

Here below you can see an example of how we supported the policy making on monitoring progress and assessing merits of smart grids deployment:

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