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The Basque specialisation Experience

EnergiBasque Case Study: Bidelek Sareak Project

A “LIDERA” Project for EUSKADI

Bilbao, 27 March 2012

Co-Financed by European Regional Development Fund and made possible by the INTERREG IVC Programme

Content:

1. Reference framework of the European and National Energies Strategies

2. The technology strategy of EnergiBasque

3. Case Study: Bidelek Sareak Project

1. EnergiBasque in the framework of the European and National Energies Strategies

EUROPE SPAIN BASQUE COUNTRY

Bodies

Energy strategies

PANER

3E2020

Technology plans

affecting energy

PCTI 2015

E4

The Energy Strategy for Europe (Energy 2020)

20% reduction in greenhouse gas emissions

20% of total energy demand covered by energy from renewable sources

20% reduction in energy consumption

Estrategia Energética Europea

Technological energy and climate policies Research coordinated by public administration, companies and scientific & technological agents Development of a portfolio of low carbon emission technologies Budget estimate of 67,000 million euros (2010-2020)

EnergiBasque is part of the Basque Energy Strategy (3E2020)

Commitment to renewable energies Development of strategies for demand management and to promote the T&D electricity grid and Smart Grids

Commitment to research, innovation and technological & industrial development

Basque Energy Strategy 2020

EnergiBasque is a comprehensive strategy designed to position the Basque Country as a benchmark of knowledge and a leader in industrial development

Seven selected areas: power generation and consumption and storage as an enabling technology.

Wave

Solar thermoelectric

(STE)

Wind

Management of energy services

(MES)

Electromobility (ELM)

Storage

Smart grids (SG)

Offshore

Unconventional gas exploration

(UGE)

PRIMARY ENERGY

General Objectives of EnergiBasque

First. To consolidate driver companies in the Basque Country as leaders in the field of technology

Second. To develop business activities in emerging fields of energy

Third. The investment made through 3E2020, to generate new energy-related markets and opportunities.

Drivers Positioning

Gamesa (6th ranking worldwide) and Iberdrola Renovables (3rd ranking

worldwide)

Iberdrola (5th ranking energy utility company worldwide) and various

medium-size niche market leaders

Sener, a world leader in central receiver technology competing

throughout the world

Smart grids

Wind

Solar thermoelectric

First: To consolidate Driver companies

Second: New business activities in emerging fields of energy

BIMEP is an ocean infrastructure for research, testing, demonstration and operation of wave energy. The main objective is to attract promoters and technologists, around the marine energy sector .

Research laboratories and premises Initial research focused on the field of electrical and thermal energy storage

Wave energy Storage

Third: New energy-related markets and opportunities within the framework of the 3E2020 strategy

Promoting the activities of IBIL, the company operating the power transmission system, and encouraging the participation of Basque companies.

Launching pilot projects for contracting energy services in central public administration buildings (Plan 2000 ESE)

Electromobility

Management of energy services

Developing a domestic offer of products and services, enabling full advantage to be taken of any investment made should any exploitable resources be discovered in the Basque Country.

Unconventional gas exploration

10 R&D Business Units

Organisation: The sector is supported by a solid infrastructure of scientific and technological agents.

5 international Centres of Excellence

Sector energético en Euskadi

44,206M€

Some key figures on the energy sector in the Basque Country.*

356

Basque energy companies

Total turnover

68,625

Total no. of employees

15,469M€

… in the Basque Country

… in the Basque Country

324M€

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Scientific and technological agents (universities, research centres, etc.)

Total expenditure on R&D

2,948

Total no. of employees working in R&D

188M€

1,905

… in the Basque Country

… in the Basque Country

35% 58%

65%

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R&D Business Units

Sector energético en Euskadi

* 2008 data

24,378 36%

Conclusions:

o EnergiBasque is a comprehensive strategy to position the Basque Country as a benchmark of knowledge and a leader in industrial development.

o To consolidate driver companies in the Basque Country as leaders in the field of technology.

o To develop business activities in emerging fields of energy o To generate new energy markets and opportunities through the 3E2020

Strategy o Selected areas: Power generation, Transport & Distribution,

Consumption, Primary Energy and Storage. o The Basque Energy sector is supported by a solid infrastructure of

scientific and technological agents. o In conclusion, we are ready to create our future.

14 Redes Inteligentes -

CONTENT:

1. Definition 2. Legal Basis 3. Overall Objective 4. Partners’ Contribution 5. Project Objectives 6. Project Scope 7. Deployment of the Smart Grid

Actions: Meters, Transformer Stations, Substations, Distributed Generation, Electric Vehicles, Development and Start-Up.

8. Investment and creation of employment in Smart Grids 9. Business Development 10. Conclusions

Case Study: Bidelek Sareak Project

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Smart Grids are essentially distribution networks equipped with technology for providing electricity

suppliers and users with information to optimise the use of energy

1. Smart Grids

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A Smart Grid is a technological enhancement of the power distribution system, combining traditional facilities with state-of-the-art monitoring, information and telecommunication technology

1. Smart Grids (II)

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2. Legal basis

Directive 2009/72/EC of the European Parliament states that 80% of consumers shall be equipped with intelligent metering systems by 2020 Under Royal Decree 1110/07, Spanish law states that all meters will be equipped with hourly discrimination and remote management technology prior to December 31, 2018 Smart Technologies require SMART LEGISLATION Both Iberdrola and the Basque Government believe that compliance with this legislation represents an opportunity to conduct a much more ambitious and far-reaching project

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3.Bidelek - Overall Objective

The Basque Government (through EVE) and Iberdrola, on the basis of their common interest in the matter, have taken the initiative to equip both Bilbao and the town centre of Portugalete with Smart Grids to ensure an efficient, safe and sustainable power supply, with a view to extending this initiative to other areas of the Basque Country in the future.

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4.Bidelek Partners’ Contribution In addition to financial support, EVE will contribute its vision and know-how on energy saving and efficiency and improvements to demand management for end users. Iberdrola will lead the Smart Grid Project from the technological perspective, with a view to ensuring that certain selected areas are recognised as reference areas on account of the quality and efficiency of their electricity grids, both on a national and international scale. Joint investment will be in the order of 60,000,000 euros over the next 3 years.

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6. Bidelek Project: Scope The project will be developed in the following geographical areas:

Urban environment • In Bilbao – 30 & 13 kV distribution over a wide area • In Portugalete - 13 kV distribution over a

concentrated area.

Rural environment: • New rural sub-station in Lea-Artibai • Upgrading of the Lekeitio rural sub-station • Upgrading of the Markina rural sub-station

Extendable to other Basque Country municipalities

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7. Deployment of the Bidelek Project: Actions

I. Installation of smart meters II. Transformer stations (remote management,

monitoring and automation) III. New concept of substation

To: • Integration of distributed generation • Integration of the electric vehicle • Development and start-up of applications

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I. Installation of smart meters: Existing meters will be replaced by new smart meters

• 200,000 meters for 360,000 people (Bilbao)

• 27,000 meters for 50,000 people (Portugalete)

7. Deployment of the Bidelek Project: Actions (I)

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7. Deployment of the Bidelek Project : Actions (II)

II. Smart Transformer Stations: 1,100 transformer stations will be set up to provide the following services:

• 235 with remote management • 700 with remote management and

monitoring • 165 with remote management, monitoring

and automation.

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7. Deployment of the Bidelek Project : Actions (III)

III. Electricity sub-stations in the rural environment

• Compact modular rural sub-station demonstration project in Lea-Artibai

• Existing substations in Lekeitio and Ordarroa to be upgraded and equipped with smart technology

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7. Deployment of the Bidelek Project: Actions (IV)

IV. Distributed Generation • Integration of 7 medium voltage CHP plants

• Integration of 50 low voltage power plants

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7. Development of the Bidelek Project: Actions (VI)

V. Development and start-up of the following applications:

• A Smart Metering portal

• Algorithms for automatic grid reconfiguration

• A platform for the management of electronic equipment

• A platform for grid information management

• Cable monitoring

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8. Investment and employment

Projects on a national level • Investment : 5,500 million € • Creation of around 25,000 jobs for

highly qualified personnel Bidelek Sareak Project • Investment: 60 million € • Creation of around 1,370 jobs for

highly qualified personnel

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9.Business Development • Iberdrola as a driver of projects focused on modernising electricity grids

• Many Basque companies with the capacity to supply the required technology

• An opportunity for Basque companies to boost their position as leaders in the field of technology, positioning the Basque Country as the “Electronic Power Valley” of Smart Grids

• Other leading industrial sectors in the Basque Country (automobile, renewable energy, ICT’s, home appliances, etc.) can also benefit from this project

SMART GRIDS is designed to be a reference project worldwide and a driver project for energy companies and infrastructure

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10. Conclusions 1. Smart grids combine traditional facilities with state-of-the-art monitoring,

information and telecommunication technology 2. Compliance with prevailing legislation represents an opportunity 3. Project investment of €60,000,000 4. The objective is to equip the municipalities of Bilbao and Portugalete with

smart grids 5. Low voltage (200,000+27,000) smart meters 6. Medium/ high voltage: 1,100 transformer stations and 3 rural substations 7. Integration of Distributed Generation and of the Electric Vehicle 8. Benefits for users, the system, society at large and in the social and

economic context 9. Improved energy and environmental efficiency 10. Demand management 11. Driver project for Basque companies 12. Reference project worldwide

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Many thanks www.eve.es

Bilbao, 27 March 2012

Strategy Plan 2015 – Consensus and Priorit isation Internal Analysis

EnergiBasque Case Study: Bidelek

Sareak Project