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CRU Presentation Committee On Climate Action 19 December 2018 www.cru.ie Mission Protecting the public interest in Water, Energy and Energy Safety Vision Energy supplied safely A sustainable, reliable and efficient future for energy


  1. CRU Presentation Committee On Climate Action 19 December 2018 www.cru.ie

  2. Mission  Protecting the public interest in Water, Energy and Energy Safety Vision  Energy supplied safely  A sustainable, reliable and efficient future for energy and water  Empowered and protected customers paying reasonable prices  A secure, low carbon future www.cru.ie 1

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  4. Who the CRU Regulates Safety Networks Retail Generation www.cru.ie 3

  5. A Low Carbon Future – How CRU Will Contribute  Connection • Enduring connection policy • ECP1 – facilitating 2020 targets • ECP2 – facilitating RESS • Renewable gas – connections and safety www.cru.ie 4

  6. A Low Carbon Future – How CRU Will Contribute  Networks • 5 year price controls for gas and electricity networks • Interconnectors - integration of renewables • Gas and Electricity integration into transport and heating • Water – support resilience, conservation and adaptation www.cru.ie 5

  7. A Low Carbon Future – How CRU Will Contribute  Wholesale Markets • SEM supports flexible units & roll-out of renewable tech • SEM supports flexible demand and storage • SEM ensures the most efficient use of interconnectors • DS3 programme accommodate higher levels of renewables • CEP requires further changes to support low- carbon future www.cru.ie 6

  8. A Low Carbon Future – How CRU Will Contribute  Retail Markets • Protect and empower customers • Enable customers to benefit from competition & new tech • Support active engagement in energy markets (prosumer) • Smart Meters facilitate renewables • Smart Meters support microgeneration • Encourage energy efficiency through price signals www.cru.ie 7

  9. Smart Meter Upgrade Project Background & Overview  The smart meter upgrade is a project of strategic national importance for • More choice and information to consumers Empoweri • Eliminates need for estimated readings Ireland’s energy future ng • New products & services e.g. time-of-use  Established by the Commission for Regulation of Utilities (CRU) and the tariffs will allow customers shift consumption Customers to times of the day when electricity is DCCAE cheaper  Multi-stakeholder project for the deployment of upgraded meters and the • Rich information to consumers Energy delivery of smart services to electricity and gas customers • Price signals to encourage energy efficiency Efficiency • Tamper alerts to detect theft  Important element of DCCAE’s ‘Transitioning Ireland to a Low Carbon Energy Future’ Smart Metering Supportin  Central role to the European Commission’s Clean Energy for All package of • Facilitate development of more renewable power g in the system legislation which ensures energy consumers are entitled to a smart meter • Supporting microgeneration and the development Renewabl of the ‘prosumer’ and a dynamic price contract es • Essential first step to development of smart grid Smart • Managing effective demand Grids • Improving security of supply www.cru.ie 8

  10. Smart Meter Upgrade Costs & Benefits:  Avoided costs of manual meter  -9.93% reduction in ‘peak time’ readings consumption as a result of time-  Avoided costs of site visits for meter works of-use  Avoided costs of network  End of estimated bills reinforcements  Theft reduction  Reduction in call volumes due to  Reduced generation capacity estimated bill queries requirements  Reduction in switching related costs  1.3% reduction in the System  Reduction in costs related to Marginal Price due to peak customer debt shifting of consumption www.cru.ie 9

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  12. Thank You www.cru.ie 11

  13. Appendix www.cru.ie 12

  14. Major Projects to be Delivered: 2019-2021 • Deliver five year price controls for both the gas and electricity networks • Progress and make decisions in relation to the Greenlink and Celtic interconnector applications • Oversee the start of the roll out of Smart Meters including updating retail market and customer protection policies • SEM – implementation of remaining aspects of the third package and the CEP • Develop revised arrangements for the calculation of the PSO Levy • Ensure preparedness and resilience with a focus on SoS, Brexit and the CEP www.cru.ie 13

  15. A Low Carbon Future – How CRU Will Contribute • Ensure market and utility network policies support a low carbon future while supporting competitiveness and security of supply • Introduce gas from renewable sources to the network and grow the level of fuel switching from high carbon fuels to gas, in both heating and transport • An enduring electricity connection policy that supports climate targets • Review network tariff structures to ensure they are suitable for a decentralised generation world with smart metering, smart grids and distributed generation • Critical public-interest infrastructure, including electricity interconnection, is supported, in line with the NDP and the Climate Change Mitigation Plan www.cru.ie 14

  16. A Low Carbon Future – The Role of Wholesale Markets • Implementing revised arrangements brings the SEM in line with EU Target Model  Balancing market sends strong signals for flexible units (incl. batteries & demand response), ensures the most efficient use of electricity & supports further roll-out of renewable technologies  Implementation of market coupling ensures the most efficient use of interconnectors • DS3 programme increases system ability to accommodate higher levels of renewables • CRU will provide strategic advice and support to DCCAE regarding the design of the RESS Auctions, sharing experience delivering SEM Capacity Auctions • CEP will require significant changes to the SEM to facilitate a low-carbon future www.cru.ie 15

  17. A Low Carbon Future – The Role of Bio-Gas, CNG and other RNG • Renewable gas (RNG) introduced to the network from 2019 will initially be biogas  Biogas is a potentially carbon neutral fuel most commonly produced by anaerobic digestion of organic farm/household waste and sustainable crop/grass production • Guarantees of origin will allow industry (heat & power) and transport companies to prove green origins, thus providing support for biogas developments • GNI target: 20% of gas demand levels to be met with RNG by 2030.  CRU approved €13M innovation allowances to supports GNI’s Causeway Project: 1 biogas injection facility (2019) and 14 CNG stations • Other RNG: RES-E could be utilised to create ‘green’ hydrogen.  Can be blended with natural gas, used itself or combined with CO 2 to create synthetic methane www.cru.ie 16

  18. A Low Carbon Future – The Role of Interconnection Electricity Interconnectors can bring potential benefits, including: • Reduce the curtailment of renewable electricity • Facilitate further integration of renewable electricity generation • Reduce the need for subsidies to support renewable electricity • Reduce GHG emissions due to lower curtailment (more efficient use of existing renewable electricity plants) and also replacement of thermal generation www.cru.ie 17

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