Chebbo_Modern Energy Review 25/02/2010 13:19 Page 92
Recommendations of the SmartGrids ICT Consultation Group
to the European Commission
a report by
Maher Chebbo
Vice President, Utilities Industry for EMEA, SAP AG,
Chairman, EU SmartGrids ‘Demand and Metering’, and Co-Chairman, ICT Consultation Group SAP/EUTC
The information and communication technologies (ICT) sector The consultation group ‘ICT for Smart Distribution Networks’, which
ransmission & Distribution
T
currently accounts for 2% of global emissions (in the UK, the ICT involves leading specialists from the European technology,
sector is responsible for up to 20% of carbon emissions generated communications and IT community, has been working as a task force
by government offices). This is on a par with civil aviation. The real since June 2008 to identify the effect of smart grid ICT technologies
gains from green ICT will come from developing energy-efficient on energy saving. The goal is to recommend to the European
solutions that affect the other 98% of global emissions. The ICT Commission ways in which the ICT sector can play an important role
sector is a contributor to global warming, but more importantly is in reaching European energy goals by 2020 in terms of a 20%
key to monitoring and mitigating its effects. energy saving.
The International Telecommunications Union (ITU) stressed that the The approach we have adopted for European Commission ICT smart
ICT sector is also part of the solution to climate change, and could grids consultation is to investigate the ICT impact across the whole
help curb emissions by anything from 15 to 40%. The Smart 2020 energy value chain, from generation to retailing and end consumers,
leading to the identification of an exhaustive portfolio of ICT areas
contributing to energy savings:
The information and
communication technologies
ICT for smart energy consumption processes;
ICT for behaviour management of smart small and medium users;
sector currently accounts for
ICT for behaviour management of smart large users;
2% of global emissions.
ICT for generation and grid infrastructure readiness; and
ICT for breakthrough industry transformation.
study has estimated that smart technology could reduce global It is easier to save energy if one can monitor consumption as
emissions by 15%. If directed to sustainable uses, the ICT sector accurately and quickly as possible. Consumers need information that
could increase energy efficiency in all areas of the economy while helps them to make more sensible use of energy. If we can save
continuing to account for 40% of Europe’s productivity growth. energy, we can see the benefit directly as lower energy bills.
Moreover, we will slow down climate change, according to the
Global energy demand is predicted to increase by 60% over the next
30 years. Without action, the EU’s energy consumption is expected
to rise by as much as 25% by 2012, which would increase EU
The consultation group ‘ICT
emissions despite renewable energy targets. EU energy dependency
for Smart Distribution Networks’
could rise by 50–70% by 2030.
has been working as a task
Getting from the energy-inefficient present to the energy-optimised
force to identify the effect of
future will be a major challenge. According to the International
Energy Agency (IEA), €1,000 billion will be spent to deploy smart
smart grid information and
grids by 2030 (average of €45 billion per year, representing a capital
communication technologies.
expenditure [CAPEX] of 11% based on €400 billion annual turnover
of the power sector), 50% spent on generation and the other 50%
on transmission and distribution. Utilities allocate 2–6% of their Finnish Environment Institute (SYKE), which launched the Household
turnover to IT spending (average of 4% when investing intensively in Energy Awareness Technologies (HEAT) aimed at developing a new
market liberalisation and smart-grid deployment), representing an method of measuring electricity consumption and new user services
additional investment of €176 billion by 2030 to reach €352 billion for households that want to improve their energy efficiency.
of total ICT spending by 2030.
The heating, cooling and lighting of buildings accounts for more
Energy generation and distribution uses one-third of all primary than 40% of European energy consumption. The ICT sector could,
energy. Electricity generation could be made more efficient by 40% for instance, provide consumers with realtime updates on their
and its transport and distribution by 10%. The ICT sector could not energy consumption to stimulate behavioural changes. In Finland,
only make the management of power grids more efficient but also this smart metering encouraged consumers to increase energy
facilitate the integration of renewable energy sources. efficiency by 7%.
© TOUCH BRIEFINGS 2010
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