Apresentação ministrada pelo Sr. João Lampreia, Gerente de negócios da Carbon Trust no Brasil, exibida durante a Semana Brasil-Reino Unido de Baixo Carbono, realizada no Rio de Janeiro entre os dias 22 e 23 de março de 2016.

1. UK’s Smart Grids policy landscape
and reflections for Brazil
João Lampreia
Manager, Carbon Trust Brazil

2. 1. Introduction to the Carbon Trust and this project
• Summary of our work
• Our Smart Grid experience
• Introduction to the SG project with FCO Brazil
2. RESULTS: Main insights brought by the UK’s Smart Grids experience
3. Reflections for Brazil
Agenda
2

3. ADVICE
Business Advice
Helping businesses capture
the opportunities in a
sustainable low carbon
world
Government Advice
Providing cutting-edge
policy advice and insights on
the transformation of
markets
Public Sector Advice
Enabling the public sector to
cut costs and emissions
FOOTPRINTING
Measuring
Understanding the
environmental impact of
an organisation, product or
service
Certifying
Providing independent
verification of
organisational or product
footprints to endorse
sustainable leadership
TECHNOLOGY
Implementation and Finance
Providing expertise and
support to businesses to put
energy efficiency plans into
action
Innovation
Partnering with companies
and governments seeking to
create value from the clean
technology revolution
We help our clients benefit from the opportunities
of sustainable, green growth

4. 1. Introduction to the Carbon Trust and this project
• Summary of our work
• Our Smart Grid experience
• Introduction to the SG project with FCO Brazil
2. RESULTS: Main insights brought by the UK’s Smart Grids experience
3. Reflections for Brazil
Agenda
4

5. We have delivered 14 projects to date in Brazil, such as:
›Time of use electricity pricing assessment
›Electricity system resilience assessment for Rio Olympics
›Energy efficiency leadership by the public sector
›Impact assessment manual and training course for energy policy
appraisal
›Distributed energy policy
›Best practice in energy efficiency finance
›UK best practice for low carbon technology innovation strategy
›Building performance labelling
ORGANISATION PROJECT TOPIC
›Designing a Product Footprinting and Certification Scheme

6. We have worked extensively with Smart Grids and
smart meters in the UK:
6
Informed the UK
Government’s
decision to roll-out of
advanced meters
1- We ran the UK’s first large scale smart meter trial in 2011
Demand responseMineral heat storageSmart meter innovators
Trial of half-hourly
metering in
580
smaller businesses
Average savings
identified of
£1,000/year
per site
Potential annual cost
saving of
£300 million
but poor business case
for DNOs to invest
2- We incubated and/or invested in several innovative SG companies

7. We have worked extensively with Smart Grids and
smart meters in the UK:
7
Informed the Government’s
expenditure of a
£1.3 billion budget
along 4 years
3- We helped the government prioritize areas for innovation
Defined 10 national
innovation priority
areas including Energy
Networks and Storage
• 8 Govt. Departments
• 4 Innovation organisations
• Ofgem
• Science Research Council
4- We were selected to assess the impact of the
Low Carbon Networks Fund
5- We assessed the potential for innovative
business models for smart meters

8. We have worked extensively with Smart Grids and
smart meters in the UK
8
6- We have carried out a large joint industry project on storage
7- We are analysing best options to enhance flexibility in the UK grid
• Roadmap for sector development
• UK system needs and business case
• Strategic policy recommendations
• Energy storage could save £2.4 billion/year system wide by 2030
• If regulatory hurdles are overcome this could rise to £7 billion/year
• Systems modelling
• Optimal level of flexibility across range of energy
futures (DSR, Storage, CCGT and Interconnectors)
• Policy recommendations
https://www.carbontrust.com/resources/reports/technology/energy-storage-report/

9. 1. Introduction to the Carbon Trust and this project
• Summary of our work
• Our Smart Grid experience
• Introduction to the SG project with FCO Brazil
2. RESULTS: Main insights brought by the UK’s Smart Grids experience
3. Reflections for Brazil
Agenda
9

10. We are currently concluding a project on
Smart Grids for 4 Brazilian organisations
Objective: Synthesise insights from the UK’s experience of Smart Grids to
support smart grid policy, regulation and technology development in Brazil.
10
FinancierImplementers
Contract-based
grant
Beneficiaries:

11. 1. Introduction to the Carbon Trust and this project
• Summary of our work
• Our Smart Grid experience
• Introduction to the SG project with FCO Brazil
2. RESULTS: Main insights brought by the UK’s Smart Grids experience
• Strategic level: A roadmap for smart grids - what did the UK want to reach?
• Policy level: Policy & regulation to make the strategy become a reality
• Ground level: Practical barriers and ground solutions
3. Reflections for Brazil
Agenda
11

12. 1. Introduction to the Carbon Trust and this project
• Summary of our work
• Our Smart Grid experience
• Introduction to the SG project with FCO Brazil
2. RESULTS: Main insights brought by the UK’s Smart Grids experience
• Strategic level: A roadmap for smart grids - what did the UK want to reach?
• Policy level: Policy & regulation to make the strategy become a reality
• Ground level: Practical barriers and ground solutions
3. Reflections for Brazil
Agenda
12

13. Smart grids consist of a collection of
technologies which enable greater control and
flexibility of the electricity system…
13

14. Smart chargers
(e.g. for EVs)
Smart
appliances
Home Energy
Management
Systems (HEMS)
Consumer
access
devices
(CAD)
Distributed Generators
(e.g. rooftop PV)
Smart invertors
(+ other back-
flow tech)
Small storage
(e.g. cells)
Advanced/
smart metering
Demand side Network
Advanced
distribution (HDVC
cabling, converters,
platforms, capacitors)
Supply side
Advanced transmission
(cabling, converters,
platforms, capacitors)
Active Network Infrastructure (Virtual
power plants, IT controllers, aggregators)
Centralized Generators
(e.g. Hydro plant)
Large
storage (e.g.
compressed
air storage)
Battery management
systems
Storage
Network
storage (e.g.
lithium-ion
batteries)
Smart grid development has applications
across the entire value chain…

15. The long term drivers for smarter grids in
the UK are:
15
Carbon
reduction
Energy
security
Affordability

16. While immediate drivers and challenges on
the ground are:
Traditional grid
› Centralised generation
› Inflexible demand
› Uni-directional power flows
› Reactive decision making
› Passive networks
16
Electrification of
heat
Electrification of
transport
Greater DG
connections
Increase in
intermittent gen
Smarter grid
› Distributed generation
› Flexible demand
› Dual power flows
› Real time decision making
› Active networks
Energy gets
cheaper
Energy-related
emissions
decrease
Grid becomes
more flexible
and resilient
New business
models give rise
to new
opportunities
RESULTS:TRENDS:

17. There is a growing evidence base to show that
Smart Grids will bring benefits
17
“Deploying storage could
deliver cost savings of up
to £7 billion in 2030” –
(Carbon Trust, DECC, Ofgem, 2016)
“Interconnection, Storage, and
Demand Flexibility could save
consumers up to £8 billion a year
by 2030” –
(National Infrastructure Commission, 2015)
https://www.carbontrust.com/resources/reports/technology/energy-storage-report/
https://www.gov.uk/government/news/a-smart-power-revolution-could-save-consumers-8-billion-a-year-adonis

18. To overcome the challenges and reap the benefits,
the UK has developed a strategic roadmap in 2014
to support smart grids…
18
Carbon
reduction
Energy
security
Affordability
Lack of regulatory &
commercial arrangements
Lack of coordination
and engagement
Lack of technology and
supply chain
development
Overarching drivers
Challenges for Smart Grids
Roadmap
Develop clear regulatory
frameworks and
commercial support
Foster engagement
between all key
stakeholders
Support technology
innovation and develop
strong supply chain
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/285417/Smart_Grid_Vision_and_RoutemapFINAL.pdf

19. With significant progress made in the last
two years in all strategic roadmap areas
19
› RIIO evolution
› Cash out reforms
› Capacity market – DSR
and storage
› Smart meters and HH
settlement
› New products from
National Grid (EFR,
STOR-R)
› Smart Grid Forum
› Energy Innovation Centre
– Open Innovation
› Consumer flexibility
› Network automation
› LV network monitoring
› Storage
› Support for big data in
networks
› Smart meters
› Demand side flexibility
› Flexible DG
connections
Develop clear regulatory
frameworks and
commercial support
Foster engagement
between all key
stakeholders
Support technology
innovation and develop
strong supply chain

20. UK Smart Grid Forum is a successful model
of driving strategic smart grid development
20
PURPOSE & AIMS:
• Overcome coordination issues (14 DNO members)
• Bring stakeholders together (Gov + industry + others)
• Support transformative action for Smart Grids
uksmartgrid.org

21. UK Smart Grid Forum is a successful model
of driving strategic smart grid development
21
ORGANISATIONAL STRUCTURE:
Chair:
Shared by DECC/Ofgem
Core members:
Small group representing all
stakeholder groups
Work
stream 1
Work
stream n
Work
stream 8
Flexible structure, members chosen
for specific skills
~20 core members, chosen by open
letter for individual expertise &
influence across value chain
First two work streams funded by
DECC, to show value to DNOs.
Currently funded by DNOs
• WS 1: Assumptions and scenarios
• WS 2: Evaluation framework
• WS 3: Developing networks for low carbon
• WS 4: Closing doors (smart meters)
• WS 5: Ways of working
• WS 6: Commercial and regulatory issues
• WS 7: Whole system design
• WS 8: Vision and Routemap

22. 1. Introduction to the Carbon Trust and this project
• Summary of our work
• Our Smart Grid experience
• Introduction to the SG project with FCO Brazil
2. RESULTS: Main insights brought by the UK’s Smart Grids experience
• Strategic level: A roadmap for smart grids - what did the UK want to reach?
• Policy level: Policy & regulation to make the strategy become a reality
• Ground level: Practical barriers and ground solutions
3. Reflections for Brazil
Agenda
22

23. Price control regulations have evolved to
enable greater support for SG technologies…
23
RPI-X DPCR 5
RIIO
Revenue = Incentives+
Innovation + Outputs
› Deliver services as
cheap as you can
› Establishment of
£500m Low Carbon
Network Fund (LCNF)
› Establishment of
Network Innovation
Competitions (NIC)
› Revenue earned from
investing in
technologies that
reduce the cost to
consumers
2008 2015

24. and a suite of connected policies have been
introduced to encourage innovation and deployment
24
Smart Grid
innovation
policies
Low Carbon
Network Fund
(LCNF)
Network
Innovation
Competition
(NIC)
Network
Innovation
Allowances
(NIA)
Energy
Entrepreneurs
fund
EPSRC / TSB -
Localised
Energy System
Projects
EPSRC –
Low-carbon
Vehicle
Research
Projects
DECC –
Energy Storage
Demonstration
Competition

25. 25
+ -
-
+ -
-
DISTRIBUTIONNETWORK
 6MW/10MWh li Ion battery connected to distribution network
 First UK large-scale battery trial to demonstrate technical and
commercial implications to the network
 Peak shaving to defer network reinforcement, ancillary
services (operating reserve, frequency response, TRIAD
avoidance)
 Key in driving policy and regulatory change to enable
unlocking system benefits of storage to enable deployment
and commercial viability
 Lead acid batteries installed across households having rooftop
PVs integrated with energy management systems and able to
receive signal from network
 Energy bill reduction enabled by Time of Use (ToU) together
with battery storage and PV to shift usage more effectively
 Powering lighting and USB appliances directly through
installed battery/PV (DC circuits) proved a valuable resource of
consumers
 Distributed batteries offers opportunities to defer network
assets reinforcement
CONSUMPTIONEND
Source - UKPN, Poyry, WPD
Example of policy results: innovation policies have
already supported successful smart grid trials

26. 26
High voltage direct
current
(convertors, offshore
substations)
Information and
Communication Technologies
(virtual power plant, cyber
security, big data)
CATAPULTS LCNF
ENTREPRENEURS
FUND
INNOVATIVE UK
COMPETITIONS NIC/NIA
POLICIES
STRENGTH AREAS
COMPANIES
Example of policy results: innovation policies have
already supported the global development of UK firms

27. 1. Introduction to the Carbon Trust and this project
• Summary of our work
• Our Smart Grid experience
• Introduction to the SG project with FCO Brazil
2. RESULTS: Main insights brought by the UK’s Smart Grids experience
• Strategic level: A roadmap for smart grids - what did the UK want to reach?
• Policy level: Policy & regulation to make the strategy become a reality
• Ground level: Practical barriers and ground solutions
3. Reflections for Brazil
Agenda
27

28. However there are many practical challenges
for deploying smart grids successfully…
28
FIT for DG
example
• Policies are
effective (but hard
to predicted)
• Result on the
ground level is the
creation of new
challenges for
continued DG
uptake
THIS CAN’T KEEP GOING UP THIS
QUICKLY BECAUSE THE NETWORK
CANNOT ACCOMMODATE IT!

29. The UK has made significant progress in solving
a number of practical barriers to DG uptake
29
1. High volumes of
connection applications
2. Inadequate
customer services
3. Approaching
network capacity limits
4. Poor network
visibility
5. Disproportionate
reinforcement costs
6. DG installation
financing costs
7. Lack of incentives to
innovate
8. Incomplete policy
coordination
9. Safety and quality
concerns
Barriers Solutions
Pre-application filtering Queue management
Forum to connect
DNOs/customers
Incentives for
engagement in RIIO
Flexible connection
offers
Smart grid
technologies
Smart-registers
National charging
review
Finance schemes
LCNF NIC/NIA
Low carbon strategy
Microgeneration
certification scheme

30. 30
1. High volumes of
connection applications
2. Inadequate
customer services
3. Approaching
network capacity limits
4. Poor network
visibility
5. Disproportionate
reinforcement costs
6. DG installation
financing costs
7. Lack of incentives to
innovate connecting
8. Incomplete policy
coordination
9. Safety and quality
concerns
Barriers Solutions
Pre-application filtering Queue management
Forum to connect
DNOs/customers
Incentives for
engagement in RIIO
Flexible connection
offers
Smart grid
technologies
Smart-registers
National charging
review
Finance schemes
LCNF NIC/NIA
Low carbon strategy
Microgeneration
certification scheme
• Increased public information (e.g. online maps of grid availability
used to reduce impractical applications)
• Study to make queue system transparent and stakeholder workshop
on new queue options
• Smart Grid Forum to bring together DNOs and connect them with
customers
• Explicit incentives in RIIO price controls for DNOs to improve
customer engagement
The UK has made significant progress in solving
a number of practical barriers to DG uptake

31. 31
1. High volumes of
connection applications
2. Inadequate
customer services
3. Approaching
network capacity limits
4. Poor network
visibility
5. Disproportionate
reinforcement costs
6. DG installation
financing costs
7. Lack of incentives to
innovate connecting
8. Incomplete policy
coordination
9. Safety and quality
concerns
Barriers Solutions
Pre-application filtering Queue management
Forum to connect
DNOs/customers
Incentives for
engagement in RIIO
Flexible connection
offers
Smart grid
technologies
Smart-registers
National charging
review
Finance schemes
LCNF NIC/NIA
Low carbon strategy
Microgeneration
certification scheme
• Novel commercial arrangements offered for customers in
constrained network areas = interruptible/flexible offers
• Active Network Management technologies installed to
control flexible offer systems
• LCNF flexible connection project demonstrated 37%
increase in customers accepting offers (over 50MW extra)
The UK has made significant progress in solving
a number of practical barriers to DG uptake

32. 32
1. High volumes of
connection applications
2. Inadequate
customer services
3. Approaching
network capacity limits
4. Poor network
visibility
5. Disproportionate
reinforcement costs
6. DG installation
financing costs
7. Lack of incentives to
innovate connecting
8. Incomplete policy
coordination
9. Safety and quality
concerns
Barriers Solutions
Pre-application filtering Queue management
Forum to connect
DNOs/customers
Incentives for
engagement in RIIO
Flexible connection
offers
Smart grid
technologies
Smart-registers
National charging
review
Finance schemes
LCNF NIC/NIA
Low carbon strategy
Microgeneration
certification scheme
• Feed-in-tariff projections not well coordinated with real
network limits / not well discussed with DNOs
• New framework in price control (RIIO-ED1) to coordinate
better between policy and networks in the future (e.g.
government & DNOs estimate DG growth rates together)
The UK has made significant progress in solving
a number of practical barriers to DG uptake

33. 33
The UK is also looking at challenges for the
future of DG connections
Active Network
Management
solutions to control
this whole system
in real time
International
standardisation to
open borders for
technologies
Increased DG
penetration
affecting
transmission
network

34. 1. Introduction to the Carbon Trust and this project
• Summary of our work
• Our Smart Grid experience
• Introduction to the SG project with FCO Brazil
2. RESULTS: Main insights brought by the UK’s Smart Grids experience
• Strategic level: A roadmap for smart grids - what did the UK want to reach?
• Policy level: Policy & regulation to make the strategy become a reality
• Ground level: Practical barriers and ground solutions
3. Reflections for Brazil
Agenda
34

35. UK’s experience thus far in smart grids offers
many interesting insights across policy,
regulation and technology for Brazil
35
1
2
3
4
Drive innovative culture Cost effective innovation incentive programs such as
LCNF have been successful in strengthening broad “innovation” culture across
the network incumbents beyond just technology
Creating the right incentives Incentives in the price control mechanisms for
DNOs to continuously improve on their DG connection process means they can
earn from deploying innovative solutions
Cross industry leadership Smart grid forum is a critical entity bringing together
the government and industry and addressing challenges for policy & regulatory
planning and technology deployment
Integrated design Smart grids extend across energy policy, regulatory design,
infrastructure development and climate change policy, therefore it requires
consideration beyond network design and planning

36. Whilst reasonable steps have been taken to ensure that the information
contained within this publication is correct, the authors, the Carbon Trust, its
agents, contractors and sub-contractors give no warranty and make no
representation as to its accuracy and accept no liability for any errors or
omissions. All trademarks, service marks and logos in this publication, and
copyright in it, are the property of the Carbon Trust (or its licensors). Nothing in
this publication shall be construed as granting any licence or right to use or
reproduce any of the trademarks, services marks, logos, copyright or any
proprietary information in any way without the Carbon Trust’s prior written
permission. The Carbon Trust enforces infringements of its intellectual property
rights to the full extent permitted by law.
The Carbon Trust is a company limited by guarantee and registered in England
and Wales under company number 4190230 with its registered office at 4th
Floor Dorset House, Stamford Street, London SE1 9NT.
Published in the UK: 2014.
© The Carbon Trust 2014. All rights reserved.
Thank you for your attention!
João Lampreia
Manager, Carbon Trust Brazil
joao.lampreia@carbontrust.com