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Governance of smart grids

Accelerating the implementation of smart grid technologies

Imke Lammers/Maarten Arentsen University of Twente, The Netherlands

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Governance

 governance refers to ordering of actors, their decisions, activities and interactions in specific societal domains.

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Problems smart grid from a governance perspective

 Emerging phenomenon, no consolidated understanding  No clear location/positioning in the energy system

 Emerging and diversified types of technologies  Too many stakeholders in certain settings

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Ideal model as benchmark for improvement decision making

 Analogy engineering sciences  Problem

 modelling logical optimal solution with mathematics  Design, test and scale technology

 Social world is not only ruled by logic of problem solving

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Emerging phenomenon

Smart Grid is a concept and vision that captures a range of advanced information, sensing, communications, control, and energy technologies. Taken together, these result in an electric power system that can intelligently integrate the actions of all connected users—from power generators to electricity consumers to those that both produce and consume electricity (“prosumers”)—to efficiently deliver sustainable, economic, and secure electricity supplies.

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Lack of positioning

Wiley Interdisciplinary Reviews: Energy and Environment

Volume 2, Issue 2, pages 121-139, 17 OCT 2012 DOI: 10.1002/wene.53

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Inefficient decision making: example residential planning NL

 Broad invitation to stakeholders  Brainstorm options

 Scenario’s

 Adjustment idea and ambition (1……..n)  Feasibility studies/cost calculations

 Searching for money

 Political decision making (1………n)  Formal procedures/objections

 Investments  Implementation

Time Ambition

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Step 1: Setting: Residential energy planning

Medium and low parts of the grid

End consumer appliances

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Step 2: Starting with the right questions in the right order

1. Who is the owner of the problem? 2. Who is going to pay?

3. What is the budget?

4. What technology can we buy that is currently on the market? 5. Who should be involved?

 Legal perspective (responsibility and obligations)  Technological perspective (technical realization)

 Financial perspective (arrangements with financial institutions)  Societal perspective (acceptance)

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Step 3: Architecture decision making process

 Set of participants  The positions

 The set of allowable actions  The potential outcomes

 The level of control over choice  The information available

 The costs and benefits of actions and outcomes

 Who

 Boundary rule: who participates  Position rule: establish positions  How

 Authority rule: actions assigned to positions and participants

 Aggregation rule: level of control exercised in a position

 Information rule: information processing and how its influences

knowledge-contingencies  What

 Payoff rule: division of costs and benefits of outcomes

 Scope rule: potential outcomes that can be delimited

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Arrangement for design

and implementing

smart grid

technologies

1. Who is the owner of the problem? 2. Who is going to pay?

3. What is the budget?

4. What technology can we buy that is currently on the market?

5. Who should be involved?

 Legal perspective (responsibility and obligations)

 Technological perspective (technical realization)

 Financial perspective (arrangements with financial institutions)

 Societal perspective (acceptance)

 Who

 Boundary rule: who participates  Position rule: establish positions

 How

 Authority rule: actions assigned to positions and participants

 Aggregation rule: level of control exercised in a position

 Information rule: information processing and how its influences

knowledge-contingencies  What

 Payoff rule: division of costs and benefits of outcomes

 Scope rule: potential outcomes that can be delimited

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Step 4: Design of the smart grid: content wise

 Technology and system integration  Organisation and management  Finance and business model  User profiles and training  Monitoring and maintenance

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Step 5: Implementation

 Democracy: Political legitimation  Legal obligations: license to operate  User training

 Implementation, testing and approving technology  User feedback and improvement

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Conclusion: Benchmark

 Broad invitation to stakeholders

 Brainstorm options

 Scenario’s

 Adjustment (1……..n)

 Feasibility studies/cost calculations

 Searching for money

 Political decision making (1………n)

 Formal procedures/objections

 Investments

 Implementation

 Step 1: Decide setting

 Step 2: Ask right questions

 Step 3: Architecture decision making

 Step 4: Design smart grid

 Step 5: Implement design

 Step 6: Operate

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