Smart Grid Development Incentives

Regulatory Authority for Electricity and Gas sets out the procedures and criteria for the selection of investments admissible for incentives, defined in the transmission code, in the amount of an increase in the remuneration of capital of 2%. The procedures also define the technical requirements that pilot projects relating to medium voltage grids must meet to satisfy requirements for the promotion of smart grids and for receiving incentives. Regulatory order ARG/elt 199/11 establishes remuneration for network and distribution networks during the fourth regulatory period (2012-2015). Key features of smart grids demonstration projects are: Real grid: A real case in existing distribution networks: real grid, real customers and real generators /Focus on DG integration in MV networks [1-35 kV]: 75% of DG power. Active grid: the selected MV network has to be characterized by a reverse power flow/ At least 1% of yearly time with reverse power-flow from MV level to HV. Automated & controlled grid: the selected MV network has to be controlled (voltage limits / anti-islanding)/Real time control system at MV level. Open grid: non-proprietary communication protocols only minimize customer costs at the network interface. Eexpected benefits are: replicability of the pilot projects on a large scale. Innovation in distribution network management. Increase of electricity production that can be accepted by the distribution grid.

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