Potential carbon impacts of smart grid development in six European countries

This paper examines reports on work carried out for the European Commission to devise a methodology for estimating the potential impact of smart grids on carbon emissions. It first identifies functionalities that enable carbon benefits to be realised. Each functionality on the demand side is assumed to be mirrored on the supply side, as when dynamic peak shifting ‘replaces’ flexible peak generation. Metrics are developed to describe the state of markets and to estimate customer response to demand response initiatives. Quantitative analysis identifies where the greatest scope for emissions reduction lies, while qualitative assessment indicates where to expect more or less impact from smart grid deployment. The impact of smart grid functionalities by 2020 is then modelled for six representative EU markets (Austria, France, Germany, Great Britain, Portugal and Spain), using a detailed pan-European market model and also a high-level ancillary services model. Three scenarios are developed: baseline, in which no smart grid rollout is assumed; feasible, based on what could be achievable in the light of technology developments and with supportive legislation; and an intermediate expected scenario, in which new technologies are introduced but nothing else changes. The findings indicate the potential for emissions reductions by 2020. They also show that the potential is very unlikely to be reached without regulatory support for user engagement in demand response and demand reduction, along with enabling technology and programmes. Development of regulatory frameworks that allow full advantage to be taken of the new technologies emerges as a challenge for smart grid development.