TECHINITALY EXCELLENCE IN ITALIAN INDUSTRY
N.1 / 2015
TECH IN ITALY N.1/2015
CONTENTS Editor’s Note / Technological Italy Exports Quality
Editor-in-Chief Emanuele Martinelli Advisory Board Marcello Capra, Raffaele Di Stefano, Diego Gavagnin Editorial Staff Marta Mazzanti Alessandro Seregni Advertising email: comunicazione@energiamedia.it Tel: 02/78622540
Emanuele Martinelli..............................................................3 Column / Italy. Stronger System for Competitiveness Abroad Marcello Capra, Ministero Sviluppo Economico ..................5 Featured Stories / A Great Deal of Subway Line Construction Sites Are Italian Alessandro Seregni...............................................................8 Italian Stories / Editorial Staff.......................................................................12 People / ANIE. Italy With Its Technologies Looks at the World Marta Mazzanti....................................................................18
Energia Media srl Via San Marco 46 20124 Milano Tel. 02/78622540 Fax. 02/78622540 email: redazione@energiamedia,it Websites www.industriaenergia.it www.smartcityitalia.net www.acquaoggi.it www.cybersecurityenergia.it
Research & Innovation / Exporting the Smart Grids in Middle East Alessandro Bertani, CESI.....................................................22 Energy focus / WEC Recommendations on the EU-Framework for Climate and Energy Policies 2030 Paolo D’Ermo, Wec Italia.....................................................26 Betting on Italy / Smart Infrastructures Manuela Di Fiore, Siemens Italia.........................................32
For sustainable energy.
Tech in Italy is edited by Energia Media in cooperation with the International Affairs Department of Federazione ANIE and WEC Italia. i
THE ITALIAN ELECTRICAL AND ELECTRONIC INDUSTRY IS…
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www.anie.it
www.italiantech.com ii
EDITOR’S NOTE/
TECHNOLOGICAL ITALY EXPORTS QUALITY Emanuele Martinelli*
*Tech in Italy Editor-in-Chief
Tech in Italy comes from two main objectives: to consolidate the role and position of Italian System in the world from the innovation and research perspective; to give the benefit of the resources – currently, above all human resources – that this country reserves for international players who invest or will invest in Italy. Enterprises, institutions, universities and research centers in Italy, in the middle of the Mediterranean, are key players in the world of evolution in the strategic sectors such as energy, public utility services, mobility and industrial automation. This evolution is the result of the historic ability to "do business" as well as of a good training level that in the past distinguished the education system, particularly universities; these two aspects have remained at the center of the social and economic situation which despite difficult circumstances have been able to stay alive and to keep pace with the evolution of a series of increasing phenomena. Thinking in terms of for instance, the issues of Smart: Grids, Buildings, Industry or Cities, Italian enterprises, along with researchers, consultants or regulators, have already had an impact on the systems of the countries with the highest growth rate in the world, in that it has exported the know-how and vision. Therefore Tech in Italy will be a Magazine of Italy's revival, the creativity coupled with technologies, the capacity to “do” and to solve problems, responding with strong personalization to different needs of international markets. It will be a journey that we will make especially in cooperation with the International Affairs Department of Federazione ANIE and with the Italian branch of World Energy Council, involving local institutions in the progress. The aim of providing high quality information to operators and international institutions goes hand in hand with the quality of projects, but above all with the ideas that we are going to present in every issue, every month. Italy will rely on this quality for a new Renaissance, combining the capacity to do business and research, (environmental and economic) sustainability of the projects, proactive attitudes to preserve and enhance the “beauty” of the country’s heritage with a higher life quality of the citizens.
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COLUMN/
ITALY. STRONGER SYSTEM FOR COMPETITIVENESS ABROAD Marcello Capra Ministero dello Sviluppo Economico Senior Advisor
Research, innovation and long-term (industrial) policies. In order to respond better to the global challenges, to carve out its place in the international markets (particularly the emerging ones) and to compete with other world players, Italy may not do without these elements – especially, if a sector of strategic importance such as that of energy is considered.
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In this respect, participation in tenders to obtain European funds is an interesting litmus paper. During the recent Framework Programme, Italy obtained 12% of the funds' total, which is quite a good result if it is compared to the Seventh Framework Programme, when it had not reached a 8%. This itself demonstrates that enterprises related to the energy sector are proactive and ready to invest time and resources in designing valuable projects. Critical issues, if any, regard the attitude to this kind of initiatives (and opportunities) which is still too connected with the logics of economic situation and sometimes of emergency aspects. The goal thus consists in taking an approach that would be more strategic, more cultural, more structural – courageous, I daresay – the one that would enable us to make more long-term commitments, at the European and global level. And our country has all the capacities and resources to make it. This direction is also reflected in the National Energy Strategy (NES). A section of the document is dedicated to the need of dealing with Italian energy policies from a structural and forward-looking perspective, especially in the field of research and innovation projects. Therefore a more structured approach, supported by long-term policies, could lead to create solid and wideranging strategic systems. Currently, we have been gathering interesting experiences, but they are not systemic yet. In turn we have to undertake to develop a capacity to make integrated systemic agreements; also because this is what Europe asks us for. But it is not only this. In order to be a real leader in the Green Economy, a global vision is necessary, also to stand a chance of winning in the large-sized supranational markets. It is unthinkable that a single enterprise, no matter how big and strong, could take this task upon itself. It is necessary to abandon the logic of fragmentation and individualism and to reinforce integration and cooperation among various Italian competencies including the industry-, science- and research-related capacities, as well as the public and private ones. Our action should aim at the strongest players related to the so-called “Made in Italy”. And the NES identified some sectors where research investments could be focused and maximized, insisting, above all on a more consi-
stent contribution of the private sector. Although the percentage rate of GDP spent on R&D in the public sector is basically in line with the average EU level, private investments in turn are clearly lower. What bodes well is the flourishing of a great deal of interesting Smart City projects been launched along the Peninsula in the recent years. It is a composite galaxy of – large-sized or smaller – initiatives that entail liveliness, dynamism, and readiness to create something innovative by institutions (local ones in this case) and private entities. Still, as it is a galaxy, it does not have the properties of a system. Thinking in terms of maximization of results and managing to exceed national borders, the priorities are: attaining coordination, agreed actions or at least an efficient information exchange (data banks and best practices for all of them) among the cities that have decided to take a “smart” path. Undoubtedly, Italy is able to compete at the international level. It has the tools, the expertise, the know-how and the power to do this. It has been observed for years that in the sector of component technologies Italian products are chosen due to their quality and inherent innovative value. What we still have to improve is the capacity to compete in a continuous manner, especially in terms of major deliveries, such as “turn-key” plants. Currently, big national players such as ENI and ENEL manage to do it. But the challenge has by no means been completed yet.
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FEATURED STORIES /
A GREAT DEAL OF SUBWAY LINE Alessandro Seregni
For the time being, Italian Salini Impregilo is constructing seven large-sized subway stations in the same number of countries in Europe and outside the continent: from Denmark to Greece, through Saudi Arabia, Qatar, Australia, the U.S. and Chile. The enterprise, which has been operating in the construction and infrastructure sector for over 100 years, achieves an annual turnover of around â‚Ź 4 billion and a portfolio of orders of â‚Ź 29 billion. The company is involved in civil engineering works, among others, in building numerous subway lines, including the uncompleted line 4 in Milan and line B1 in Rome.
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Europe In Denmark, to be more precise in Copenhagen, with the most advanced European public mobility system, the works that began in January 2011, are underway. The Cityringen project worth € 1,500 milion was awarded by Metroselskabet I/S and it encompasses construction of a new ring road in the city center with two tunnels that are 17.4 km long each. There will be 17 stations located 30 m deep under the city's roads. The new line will be completely automated and operative for 24 hours a day, ensuring rapid transit of 130 milion passengers a year. A new construction site opened also in Thessaloniki, Greece, where a line of around 9.6 km running below the main road links and central areas of the city has been built since 2006. The project also includes construction of 13 stations, besides all the necessary space for depot and maintenance of the line's equipment and for administrative offices. The total value of the works is € 1,104 milion with an allocated quota of € 295 million. Every day, the trains will transport 18,000 passengers/hour in each direction, with a frequency of 90 seconds during peak hours.
The World In turn Line 3 in Riyadh will be stretching 41.58 km. It will be the longest line of a sizeable project of the new subway network in the capital city of Saudi Arabia. Indeed, it will consist of 6 lines of a total length of 180 km, worth $ 23.5 billion. It has been commissioned by the Riyadh Development Authority, and the cost of civil engineering works is € 3,720 million. Qatar Railways Company has invested € 1,803 million in the “Red Line North Underground” in Doha, which will be 13 km long and it will have 7 underground stations. The project, along with other three ones for the same number of subway lines, is part of the “Qatar National Vision 2030” – the National Development Plan until 2030, which provides for completion of a new infrastructural mobility system sponsored by Qatar. No less important are the projects in Australia and the United States. In the northwestern area of Sydney, the works began in January this year. The project is expected to last 36 months and its aim is to connect the Chatswood station with Cudgegong Road.
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North West Rail Link is the name of the project, which is the most sizeable of all the infrastructural undertakings in public transportation in Australia. It will include construction of 8 new stations, 4,000 parking lots and putting into operation of fast and completely automated trains for the first time. In turn in San Francisco, the works undertaken in the framework of the “Central Subway” project, have been underway already since March 2012. Their aim is to extend the current network of surface trains which crosses the city center. The trains will run through two single truck trains of a total length of 5 km, created with the help of a couple of Tunnel Boring Machines (TBM) of a diameter of 6.4 meters. Lately, construction sites have opened in Chile, where in Santiago, in March last year, Metro de Santiago – Metro S.A. contracted works worth € 124 million. The undertaking consists in building lots 1 and 2 of the new Line number 6. The project includes opening of six new stations, underground digs with variable sections between
70 m2 and 180 m2 of a total length of 7.6 km as well as 10 construction pits. Also in this case, like in other projects, the works are part of a more complex plan to extend the capital city's subway, which is currently the largest in South America – with 108 stations, 5 operative lines and 2,300,000 passengers transported every day. The construction of Line 6 will significantly contribute to redistribute flows of urban traffic, reducing congestion on Line 1 and allowing 870 thousand inhabitants from 8 different municipalities to travel more rapidly and less chaotically.
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ITALIAN STORIES / Editorial Staff
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ITALIAN STORIES /
Norway, a € 140 million worth contract awarded to Condotte d’Acqua Società Italiana per Condotte d’Acqua has been ranked first in the “Drill and Blast” tender procedure. It regards provision of a series of works, among others, two 1.2 km long single-track tubes, including the transfer getaways and the diversion in the tube of the Alna River, Norway. The work to be performed by the Italian company is part of the railway project Follo Line, the main infrastructural undertaking which is currently being developed in Norway. The contract signed is worth about € 140 million. Moreover, it is an EPC contract and thus Condotte will be in charge of both engineering and construction activities. The works are particularly complex and comprehensive: a triple-track tube that combines the two tracks of the new Follo Line and a track of the Østfold line; two singletrack tubes of the Follo Line with the transfer getaways
of a length of about 1.2 km; a single track tube dedicated to the Østfold line; a deviation of a river in the tube, that is the Alna River which will be captured by the new tunnels; the access system from the existing road tunnel (single access to the entire construction site); a pumping station; a southern portal of the single-truck tunnel of the Østfold line; a new ventilation chimney intended for oil deposits in the cave and a new railway bridge. Società Italiana per Condotte d'Acqua is a historic company. It was founded on April 7, 1880 and since then it has executed, in Italy and in the rest of the world, dams, hydroelectric power plants, roads and highways, railways and undergrounds, ports and maritime works, hydraulic works and irrigation projects, airports, underground works, civil engineering works for thermal and nuclear power stations, construction operations in the segments of housing, administration, sports, industry and hospitals, as well as the works aimed to protect the environment and cultural heritage. Italian software adopted by English hospitals English hospitals like an innovative medicines management system, aimed to avoid the wastage in health care and the clinical risk, patented by Ingegneria Biomedica Santa Lucia, a company of Giglio Group based in Piacenza.
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The software called “Sofia” will be adopted by the university clinic of Leicester. This is a public hospital with 1,800 beds which upon completion of a two-year long evaluation has given the nod to the system installation. The automatized process ensures personalized administration of medicines to the patients, reducing the risk of errors to zero and diminishing the wastage of medications. To the enterprise based in the region of Emilia-Romagna, the value of the fully operational system, the subject of the procurement, amounts to around £ 2 million a year. And, above all it is a pilot project that may open numerous business opportunities in the entire Europe and elsewhere. This is the possibility of expansion coupled with the great results of Ingegneria Biomedica Santa Lucia, with a constantly growing turnover which has reached € 134 million and which on the basis of the development plan is expected to reach € 180 million in 2016. The system has already been installed in various Italian hospitals, from San Martino in Genoa to San Camillo Forlanini in Rome. The services of management of unit dose medicines and traceability of medical devices, supported by the traditional activities such as clinical enginee-
ring and energy management, are coordinated from the headquarters of Santa Lucia through the creation of technological instruments which operate directly in the relevant hospitals, with their staff and the company's employees. Peru, $ 100 million worth contract awarded to Alenia Aermacchi Alenia Aermacchi, a company of Finmeccanica group, has been awarded a contract for another two C-27J Spartan aircrafts to be delivered to the Fuerza Aerea (FAP) of Peru. The airplanes constitute the second order thanks to which the fleet of C-27J, at the disposal of the Ministry of Defense of this South American country, has increased to four. The contract signed with Peruvian government amounts to € 100 million. The plants engaged in the production are based in Capodichino and Nola, both in the vicinity of Naples. The first one produces and assemblies the fuselage of the C-27J. The second plant in turn produces machined parts. It also manufactures metal sheets and assemblies the panels in the high level industrial integration and automation processes. Alenia Aermacchi will also provide logistic support and technical assistance. The products of the Italian compa-
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ny were preferred over the foreign ones. They were singled out in the selection that lasted three years. In December 2013, a contract of $ 121 million was signed pursuant to which the first two military cargo aircrafts C-27J were ordered. The Air Force selected them for their operational features that are suitable for the geographical and topographical scenario of Peru characterized by the high Andes and the Amazonian forests in the southeastern part of the country. The first two aircrafts, ordered in December 2013, will be delivered in the first months of 2015, whereas those included in the second order will be delivered in 2016 and 2017. They will be used not only in military missions, but also in emergency preparedness and rescue actions. The Peruvian fleet renewal process may regard altogether up to 12 aircrafts. Apart from Peru, a total of 80 aircrafts C-27J Spartan has already been ordered by the air forces of Italy, Greece, Bulgaria, Lithuania, Romania, Morocco and Slovakia, as well as the United States, Mexico, Australia. Mexico, new gas pipeline “speaks” Italian Mexico is about to inaugurate a large-sized energy infrastructure that is the first segment of a gas pipeline of over 117 kilometers. The work, defined as “Los Ramo-
nes” includes two compression stations. The investment value is $ 2.5 billion. The contractors who take part in the operations also encompass Bonatti SPA which has invested $ 30 million in this operation. The first already inaugurated gas pipeline segment, starts from Aguadulces (Texas) and ends in Los Ramones, in the state of Nuevo Leon (Mexico). In any case, Bonatti SPA will participate in building of the second gas pipeline segment of 738 kilometers, which should be completed by December 2015. The execution of this work was possible owing to the energy reform which President Henrique Pena Nieto enacted in January last year. Besides Bonatti, another Italian company SAIPEM will be presented. Thesan builds 6 photovoltaic power plants in Ecuador Thesan, a company set up in Piedmont in 2007 with the aim of developing the business of photovoltaic power plants, has completed six new photovoltaic plants of a total capacity of around 7 MW in Ecuador Overall, it is the most important project related to photovoltaic power that has ever been completed in Ecuador. It is an in-
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vestment worth $ 18 million which is the result of a mix of the shareholders' equity, local incentives and long-term investments as well as loan issuing banks that are paid with the cash flows from the sale of the produced energy. The know-how of metalwork fabrication from Savio Group (the parent company), operating in the sector of aluminum joinery for over 100 years, has allowed Thesan to obtain great results, especially in international markets. In 2011 90% of the turnover of the company from Piedmont based in the Susa Valley was generated in Italy, whereas in 2013, 95% of the profit was gained from the activities developed abroad. The company undertook its internationalization strategy in 2013. It was marked by the construction of six photovoltaic power stations in Romania, of the capacity from 1 to 2.5 MW each, of a total of 9 MW. This investment was worth the equivalent of over â‚Ź 13 billion. CRIF, the group seated in Bologna to enter the UAE CRIF, the group based in Bologna, specialized in the credit and business information systems enters the market of the United Arab Emirates. Indeed, a partnership with AECB, Al Etihad Credit Bureau, which manages the information system of seven emirates that opened an international call for its implementation two years ago. This is an important success, because the Emirates are currently the main end market of the Italian companies in the Arab world, being the seventh country among the extra-EU destinations of the Italian production, with the exportation value that has exceeded $ 5.5 billion. These figures explain a great interest of CRIF: in October last year it was awarded the acquisition of Dun & Bradstreet UAE, the main data and business information provider in the area, able to provide information on about 400 thousand local companies. CRIF is already present in different countries in the world, among others in Asia, Central America, Eastern Europe and Africa. The group has around two thousand employees, and last year its turnover reached 305 million.
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PEOPLE /
ANIE. ITALY WITH ITS TECHNOLOGIES LOOKS AT THE WORLD Marta Mazzanti
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Interview with Mr. Claudio Andrea Gemme, ANIE President*
Q: Mr. Gemme, could you please briefly describe what ANIE Federation is about? ANIE, with over 1,200 member companies and the sector's aggregate turnover of â‚Ź 56 billion, is a Federation which for seventy years has been representing within Confindustria (General Confederation of Italian Industry) electrical engineering and electronic companies operating in Italy. The system of the ANIE member companies provides technologies for public and private infrastructure in strategic markets such as energy, transport, industry and constructions. The Italian electrical engineering and electronic industry includes an advanced technology offer. To be more precise, the industrial sectors represented by ANIE are as follows: technologies for power production, transmission and distribution, electrified transport, industrial automation, motion and power transmission systems, cables, electronic components, technologies for lighting, components and devices for electrical installations, household appliances and catering equipment, lifts and escalators, security.
Q: How would you briefly portray the Italian electrical engineering and electronic industry represented by ANIE? How does it compare with the Italian and European manufacturing industry? In the international market the image of Made in Italy is generally associated with the traditional sectors such as those related to Food, Fashion and Furniture. Along with these sectors, the Italian industry also encompasses technologically advanced and highly specialized sectors such as those represented by ANIE, which significantly contribute to the growth in the Italian manufacturing industry. The electrical engineering and electronic industry generates on the whole 7% of the aggregate turnover, 10% of export and 7% of the total employment in the Italian manufacturing sector. The Italian electrical engineering and electronic industry plays an important role also in the European industrial scenario, standing in the second place in terms of the total turnover after Germany. Compared to the European industry, the production structure in Italy is marked by big operators along with a wide range small and medium enterprises. The typical flexibility of small and medium enterprises allows them to operate in innovative market niches reaching a high level of the offer customization.
Q: In the recent years the international macroeconomic scenario has changed a great deal. What are the main effects related to the evolution in the industry sectors represented by ANIE? In the recent years the international macroeconomic scenario where the companies operate has been marked by profound changes. The center of gravity of the global trade has shifted towards new markets, and in nowadays over half of the global trade comes from the emerging economies. Whereas a decade ago the European area represented the main destination market for the Italian export, now the companies have considerably increased their presence in extra-EU markets, i.e. a strong presence in the Middle East, North Africa and Latin America. Technological innovation has played an important role in this transformation process in that it has accounted for new applications and it has created new market
*ANIE - Italian Federation of Electrical Engineering and Electronic Industry
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niches. Opening up to the foreign markets has become a vital element of the strategies adopted by the Italian companies. Thus at the end of 2014 in the sectors represented by ANIE export accounted for 55% of the turnover (vs. slightly more than 40% hardly a decade ago), with a trade balance of over 15 billion euros. It is little known that in the Italian manufacturing industry the segments of electrical engineering and electronic are the sector's leaders in terms of a high export-total turnover ratio. Q: How has the presence of the Italian electrical engineering and electronic industry changed in the foreign markets? Globalization imposes increasing challenges on the Italian companies, especially on the smaller ones. Due to the fact that nowadays there is a great deal of the global growth poles, in the recent years many Italian enterprises have changed radically by renewing the techno-logy offer and adopting new organizational models. The results of a recent survey aimed at the ANIE member companies have shown that also in 2014 over 65% of the small and medium electrical engineering and electronic companies have undertaken internationalization actions. The development activity of small and medium enterprises associated in ANIE in the international markets features increasing diversification of the served markets and the use of more structured internationalization instruments with respect to a simple activity of export, such as establishing of joint ventures and other types of industrial and trade partnerships, opening of representation offices and production units on the spot. Q: Mr. Gemme, what are the main actions of ANIE in terms of internationalization? What are your future plans? It is crucial that the relevant role of the Italian industry – that of a qualified technology supplier – should be recognized in the foreign markets. Thus international activities of ANIE have concentrated on this mission, which is the promotion of "Made in Italy" technologies in the foreign markets. Since 2009, ANIE has intensified its internationalization actions aimed to support the enterprises operating in the sector. It has arranged for about 50 inter-
national initiatives, among others, business missions and international exhibition participations in a total of 30 countries that have been reached out through international promotional actions and over 500 participating companies. The program of international activities of ANIE for 2015 is very rich and it will embrace all the continents. These actions are performed in cooperation with the main Italian and international institutions in charge of internationalization. Last but not least, it is worth reminding that 2015 will be an important year for Italy as a country that will host the EXPO in Milan. This event will be an important opportunity for ANIE to host the meetings with foreign delegations.
Q: Another crucial issue for the Italian electrical engineering and electronic industry has always been innovation. What is the value of research and development activities for the sector's future? The sectors represented by ANIE are the leaders in terms of inclination to innovate within the Italian manufacturing industry, as they invest on average 4% of total turnover in research and development activities. In recent years, innovation conducted by the enterprises has opened new frontiers for demand. The new technologies are essential in the modernization process of the existing infrastructure and they play a key role in a country's development of competitiveness. Thinking in terms of energy, for instance, implementation of the smart grids is an important challenge. Another significant aspect is to redefine the mobility in a sustainable key, without overlooking, in wider terms, the added value that the electrical engineering and electronic technologies offer for the creation of smart cities.
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RESEARCH & INNOVATION /
EXPORTING THE SMART GRIDS IN MIDDLE EAST Alessandro Bertani CESI Consulting, Solutions & Services Division Smart Grids Project Director
In 2030 Saudi Arabia could become one of the world’s largest producer of renewable energy, with a revolution that will completely change the country’s profile and perception. The Electricity and Cogeneration Regulatory Authority (ECRA) of KSA, aware of the complexity of the challenge, collaborated with key players in the national energy sector to launch a series of initiatives aimed at studying possible solutions to cope with the changes. In 2013 Saudi Arabia chose the Italian CESI as its technology partner to make this happen.
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The objective was to quantify the potential of smart grids, develop a global strategy for their introduction and analyze available technologies and possibilities for applying them. The study aimed at defining an integrated portfolio of network technical solutions, spread across the whole electricity value chain and including the central and distributed generators, the high-voltage network and distribution grids, the industrial users and building automation systems, and the end-use customers with their appliances and other household devices. The study demonstrated that the introduction of smart grids can bring significant contribution to address energy challenges that can be summarized in the following categories: • Network reliability and power quality. The smart grid provides a reliable power supply with real time information on network status, detection of power quality deficiencies, voltage control and network automation. • Energy Efficiency. The smart grid is more efficient, providing a more optimized energy supply balance, through reduced total energy use and peak demand, decreased energy losses and the ability to induce end-users to lower the electricity use.
• Cost optimization. The smart grid drives significant cost efficiency for electricity operators, through reduced system losses and outages, improved load factors, asset utilisation, reduced costs of manual network operation and meter management. • Environmental support. The smart grid facilitates an improved environment, supporting the reduction of greenhouse gases (GHG) and other pollutants through optimum use of valuable fuel sources and enabling the development of alternative energies. • Market unbundling. The smart grid supports unbundling and opening of the electricity sector, providing enhanced data on customer accounts and usage, advanced tariff structures, and the ability to switch supply contracts easily. Such benefits are distributed among all the key stakeholders of the electricity systems, as indicated in the following schema. Along the above objectives, the designed smart grids for Saudi Arabia include a portfolio of solutions: • HV network: automation, transmission line sensors, FACTS devices such as SVCs, STATCOMs and short current circuit limiters for lines and substations, with related communication and IT infrastructure, cyber-security and management systems.
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• MV networks: automation, identification and recovery of network faults, voltage / current sensors along lines for voltage control, smart meters, smart inverters, intelligent reclosers and switches, SCADA and DMS systems, with related communication and IT infrastructure, cyber-security and management systems. • Generation: new generator’s adaptation to new technical developments (such as synthetic inertia, low voltage ride through, 4 quadrants inverters, frequency response…) required by technical standards or grid codes. The Business Case for smart grids in KSA highlighted that, according to specific assumptions, there is a positive cost-benefit based on direct costs. There will be also indirect benefits, reflecting savings to the national economy, but these are not required to justify the deployment in Saudi Arabia. After the completion of this successful assignment, whose final report has been published on the web site of the Regulatory Authority of KSA (www.ecra.gov.sa), at the beginning of 2014 the Dubai Electricity and Water Authority (DEWA) launched a tender for consultancy services aimed at implementing and managing the distributed renewable resources into Dubai electrical grid. Also DEWA chose CESI as its technology partner. The project started with the revision of the renewable standards and the connection rules. The regulations al-
ready developed at the international level, particularly in United Kingdom, Germany and Italy, have been assessed in order to tailor the proper recommendations for Arab Emirates. CESI specified the protection system for RRGUs (Renewable Resource Generating Unit), focusing on the interface protections able to ensure that the connection of these units will not impair the integrity or degrade the safety of the distribution network. On the other side, for the security of the entire electrical system, precise prescriptions have been defined to give RRGUs the ability to stay connected to the grid during transients and to predict the behaviors of the network’s parameters, providing consequently the necessary active and reactive power. Moreover, specific schema have been developed in order to allow all the RRGUs connected the network to participate in voltage control with the purpose of limiting over and under-voltages caused by the RRGUs themselves. The next step to deal with is represented by the necessary facilities for monitoring, remote control and information exchange of the RRGUs, through the analysis of the available communication media and the most suitable protocols. At the end of this two-year project, a further piece the Italian smartness for designing the electrical network of the future will be applied in Middle East.
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ENERGY FOCUS /
WEC RECOMMENDATIONS ON THE EU-FRAMEWORK FOR CLIMATE AND ENERGY POLICIES 2030 Paolo D’Ermo World Energy Council Italy - WEC Italia Energy Studies and Analyses Manager
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Introduction In the framework of the EU-Climate and Energy Policy Package 2030, The European Committees of the World Energy Council (WEC Europe*) contributed to the EU debate with a position paper highlighting a few crucial issues and addressed to the Commissioners of the European Union for Climate Action and Energy. For this purpose, WEC Europe set up a Task Force composed by experts coming from seven Member Countries representing both Eastern Europe and Western Europe areas. In particular, experts from French, Czech Republic, Germany, Italy, Poland, Romania and Sweden worked in order to convey the view of the whole European WEC-Member Committees regarding the EU-Framework 2030. The suggestions formulated by the task force are based on the written contributions from 23 European WEC-Member Committees, as well on the major findings of the global World Energy Council studies widely approved by participants to the 22nd World Energy Congress held in South Korea, in October 2013. Learning the lessons from the EU Energy and Climate Package to 2020 (20-20-20) At the present, the EU environmental and energy policies aim to three objectives to be reached by 2020: a reduction of CO2 emissions by 20%, in comparison to 1990 levels; an increase of the renewable energy cosumption up to 20% on the final gross consumption, including a minimum share of 10% from renewable in road transport consumptions; a non-binding increase of energy efficiency able to reduce by 20% the EU final consumption (a total decrease equal to 368 Mtoe). These targets have been agreed by the EU Member States having in mind a future of increasing fossil fuel costs. The achievement of the three targets would have ensured a technology leadership to Europe, based on innovation, thus a more secure, competitive and sustainable energy by 2020. To this end, in the last decade the EU Member states developed several mechanisms and policies favouring energy efficiency and the production and consumption of renewable energies in the electricity, transport and residencial-commercial sectors. At the same time, the European Commission launched the Emission Trading Scheme involving more than 12,000 medium
and large factories in a cap-and-trade system aimed to incentivise the reduction of CO2 emissions in the electricity generation, refinery, chemistry and manifacturing businesses.To date, the outcome of the current European energy policy based on the Energy and Climate Package 2020 (20-20-20) has been effective with measurable results. In particular, it has promoted the development of innovative technologies in the field of energy efficiency and backed a large deployment of technologies for the production of renewable energies that in several EU countries reached an unprecedented share in the electricity consumption. Although being effective, the 3-target package 20-20-20 has not always been very efficient. While it has increased the security and sustainability dimensions of the EU Energy Trilemma (security, sustainability and equity), it has increased energy prices lowering the competitiveness of the European economy. The interaction and overlapping between more than one target produced unwished side-effects, in particular on the decommissioning of efficient CCGTs plants due to the unfair competition from renewable energies and the decrease in energy demand, the latter driven by the economic crisis and efficiency measures. This issue is to be carefully considered by Member States as it can also impact on the security of the system operation in the near future. In addition, the decrease in energy consumption did not favour an adequate level of CO2 price on the ETS market that would have incentivised the switch from coal to natural gas in the power generation. In contrast the European power generation from coal has increased in the last years. Keeping in mind the lessons learnt, at present an absolute majority of the WEC European Member Countries considers the three-target-system as overburdened and would prefer a more simplified system. The challenges ahead: balancing the European Energy Trilemma Since 2008 the economic situation and energy landscape have dramatically changed. The findings of the WEC World Energy Trilemma presented and discussed at the World Energy Congress in South Korea (October 2013) have confirmed that one of the most important challenges, today, is to manage the balance of energy trilemma amongst energy security, environmental sustai-
*All the EU Member States are also members of the World Energy Council, with the exception of Malta.
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nability and energy equity. In addition, as highlighted by the report World Energy Issues Monitor 2014, the main concerns for the European energy leaders are global recession and energy costs and prices in the EU. The global energy landscape is continuing to change with the increasing US-energy autonomy and steady rise of Chinese impact on the global economic scene that are also definitively changing energy geopolitics. Among others, shale gas and oil developments have lowered energy costs in other regions of the world whilst continuing to increase in Europe. The new situation and economic crisis have challenged the European economies’ competitiveness and raised awareness about the impacts of an ambitious European climate policy on the consumers’ energy bill or on public debt. At present, Europe needs to identify new diversified geopolitics approaches including access to energy sources from other regions of the world. For example, the recent discoveries of significant natural gas resources in the South-East of
the Mediterranean Sea (e.i. offshore of Cyprus and the Israeli coast) and the perspectives of the LNG export from the U.S.A. represent new important options to diversify supplies and to ease their costs. In this framework, Europe has to really think about the most efficient contribution to fight climate change also considering that its CO2 emissions have a share of only 11% in the world emissions today, and it will continue to decrease in the mid-long term. In particular, the International Energy Agency foresees an EU share of about 8% in the world CO2 emission by 2035, with the biggest part of the global emissions coming from the developing Countries. Thus, what is the best use of one euro when the impact of an emitted ton of CO2 is the same, in Europe or elsewhere, but the abatement costs are quite different? European Union really needs to question the reality of its leadership in climate change policies as well its exemplarity and the rational of its stringent approach. In order to contribute to this debate, the WEC Europe Task
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Force has firstly put in perspective the energy Trilemma dimensions (energy security, sustainability and equity) identifing European needs and conditions, namely: - to enhance security of energy supply, both on domestic and external sides, including system adequacy; - to fight effectively against climate change, one of the most important environmental challenges; - to lower energy prices, thus reducing fuel poverty and increasing the EU’s competitiveness, economic growth, employment and social welfare. In the short to mid-term, there are not new challenges for
generally, there are serious concerns about the over-targeting and too many political targets and policies, which do not fit well with national realities. A critical issue to be addressed is the cost of these policies. In the past years, energy policies had a negative impact on the consumer prices, deteriorated the competitiveness of the European industries and aggravated fuel poverty. Today, it is widely recognised that EU-Member States have differing views and potentials on how to reach targets in an efficient and flexible manner: “one-size-fits� policies are thus very costly and inadequate and, in so-
Europe; but there is a new order of priorities, even in the political agenda: competitiveness having being neglected in the past is now at the very top. In December 2013, WEC requested its European Member Countries, to proceed with a more detailed national assessment on how successfully the EU energy policies have been implemented including expected improvements of the critical energy trilemma issues: sustainability, energy security trends and awareness about energy price increases. The WEC European Members have identified some difficulties in the implementation of EU energy policies, namely the unefficient renewables integration, lack of new investments and, the distortions in energy markets. More
me cases, could lead to detrimental results. WEC Europe recommendations Looking to the negotiations underway on the post-2020 climate and energy policies, the European Member Countries of the World Energy Council agree on the suggestion to reduce the number of binding targets to a unique overall CO2 target for Europe beyond 2020, with energy efficiency considered as a possible second target; mandatory renewable targets were least preferred. The single-CO2 goal should be associated to the structural reform of the EU Emission Trading System (ETS), where there is the need for strong signal with a view to retur-
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ning to robust prices on the carbon credit market. In fact, adeguate prices would provide the right incentives to invest in energy efficiency and low carbon technologies. However, it is worth noting that without reaching a global agreement on Climate Change goals, it will certainly be difficult to recover the competitiveness of European economy against the US and Asia/Latin America emerging economies. At the EU level, it should be up to the Member States to decide and deploy appropriate measures, to achieve CO2 target, provided that these measures are compatible with the internal market rules, by looking for the correct balance between subsidiarity and EU competences. As such, the EU ETS should fulfill an important role and remain the major tool for EU climate policy implementation. In the non-ETS sectors, the potential for decarbonisation and energy efficiency improvements is enormous, here, more policy and market solutions should be deployed, especially in transport and building sectors.
Moreover, to implement a successful EU Energy and Climate policy, WEC Europe Members also insist on some sine qua non conditions: • More focus on efficiency. On the demand side, we need more investments, innovation, incentives and stronger technical standards, to improve energy efficiency. On the supply side, a technology neutral approach should be pursued in identifying the best solutions in each Member state that contributes to lower CO2 emissions in the energy sector and economy. • Investments. A long-term predictable, stable and favourable climate for investments has to be set up: this includes targeted regulations, political stability, and avoidance of retroactive measures which negatively affect previous investments. There is also a crucial need to adapt risk and return allocation between investors, consumers and other stakeholders, to the new power market context. New rules and approaches are needed where public acceptance is required, in parti-
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cular for the development of strategic energy infrastructure projects. • Finance. Access to financing and capital at fair costs remain crucial for investments. Some new finance mechanisms have to be explored in particular for financing building renovation programs and infrastructure. As an example we may indicate the use of some European funds, the development of new finance mechanisms or some “breakthrough” ways of thinking about financing (for example, a direct refinancing of cost efficient measures by the European Central Bank, in view to facilitate energy efficiency investment, and that at very low interest rate). • Research, Development and Deployment. New technologies to improve energy efficiency and reduce CO2 emissions will result from dynamic R&D investments and financial support to R&D. The entire portfolio of options should be explored (private funding, public support, public-private partnerships, etc). Smart solutions may include synergies between the sectors with the highest potential for low carbon technologies (energy, transport, buildings, etc). More attention should focus on the overall system-integration studies. Considerations on the WEC Europe recommendations and the need to focus on R&D The thorough debate developed by the WEC Europe task force and the analyses from the 23 Member Committees confirmed that energy industry in the EU feels uncomfortable with side effects produced by the EU policy Package 20-20-20. In particular, the present situation of the European electricity sector strongly addressed the focus of the task force on the ETS sector issues. To give an example, in Italy between the 2006 and the 2012 the power capacity increased by 38% while the demand for electricity decreased by 3.8%. A mix of conditions above-mentioned (i.e. renewable energies incentives, efficiency measures and economic crisis), has favoured these contrasting trends. In this framework, the WEC Europe Members suggest a thorough revision of the ETS scheme and a clear single target for CO2 reduction in the future, with a technology neutral approach that let the companies to choose the right instruments to reduce emissions.
However, the WEC Europe task force has also recognised that in non-ETS sector the technology neutrality alone could not be effective in favouring the move of energy production and consumption towards low-carbon and renewable energies. In addition, it is worth noting that these sectors (namely transport and building-commercial sectors) have the biggest potential for CO2 reduction and could help achieve the 2020 goals through solutions that have lower abatement costs. In fact, the analyses produced from several European institutions and organisations on the consistency of the EU energy and climate polices adopted by the Member states for the year 2020, highlighted that the promotion of renewables in the residential sector and alternative fuels in transport sector is the optimal way to reach and overcome the overall 20-20-20 goals. In particular, in the transport sector innovative solution such as advanced biofuels, electric cars and natural gas (CNG/LNG) fuelled-vehicles should be supported with a set of fiscal measures and incentives to R&S initiatives able to back the deployment of proper technologies in different segments (e.g. electric cars and compressed natural gas in the urban mobility, liquefied natural gas in long range maritime and road transport etc.). However, in order to exploit these potentials and, at the same time, improve the EU industrial competitiveness, Member Countries should divert financial resources from mere incentives to the use of energy and technologies to mechanisms able to support R&D programs and innovative activities. To this end, the next developments of WEC Europe as well as EU debate should focus on this important issue keeping in mind that the best way to conjugate competitiveness and environmental sustainability are the development and deployment of innovative technologies in those industrial fields where Europe has first class capabilities and expertise.
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BETTING ON ITALY /
SMART INFRASTRUCTURES MILAN: GLOBAL COMPETENCE CENTER FOR ELECTRIC MOBILITY Manuela Di Fiore Siemens Italia Ecar Solution Global Sales Expert
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Focus on e-mobility Climate changes, global population growth and the worldwide rise of urbanization go hand in hand with the continuous growth of energy demands and with the need for modernization of electrical infrastructure. From an economic and environmental point of view, this growing need for dynamism and for a sustainable distribution of energy joins the concept of electric mobility. Electric vehicles will represent an important part of the electricity distribution grids of the future; for this reason it is fundamental to develop charging infrastructures in accordance with the Smart Grid paradigm. It is also important to take into account the potential impact that electric vehicles will have on the distribution network. The impact has to be assessed not only as additional loads, as in the near future they could contribute to guarantee optimal distribution network operations as energy storages. Since 2009 Siemens Smart Grid Division worked in this contest: when the electric mobility still seemed a futuristic theme, the Division realized the E-car Operation Center (E- car OC), an IT technological platform entirely de-
veloped in Italy. The platform’s goal is efficient and integrated management of the charging infrastructure and the recharging process of electric vehicles. Thanks to this innovative solution the Italian Smart Grid Division has been recently appointed as Global Competence Center for E-car software development. Since October 1st, 2013, the Italian team is responsible for the Solution Lifecycle Management of the E-car OC platform and for managing worldwide the related business. The Italian Smart Grid Division employs today 165 people coming from all over the world. The R&D center and the sales and strategy departments are based in Milan. What is the E-car Operation Center The Siemens E-car Operation Center is a system based on Cloud Technology. It controls and manages the infrastructure which enables the recharging of electric vehicles, both in public or semi-public and private areas. At the same time, the Operation Center is able to provide
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services to final customers and to all the stakeholders involved in the charging process. The software is associated with remote control systems of electricity distribution networks. It is also designed to send recharging data (such as consumption, authorizations, etc.) to systems for reporting or invoicing to final customers. Moreover, the software enables the complete interoperability among various charging infrastructures by using Roaming features similar to the ones used in the past in the world of mobile telecommunications. The Ecar OC main features are: • Multiclient The system is able to-host, on the same hardware and software platform, different stakeholders (energy distributors, operators of charging infrastructure, energy vendors, energy service providers, etc.). These stakeholders usually operate in the market with different business models. • Connection to the electric network The system is able to communicate through remote
control systems to the distributor system operator. This feature allows the realization of load management operations, thus increasing the flexibility of distribution networks. • Recharging infrastructure management The system allows the configuration of the recharging infrastructure, by geolocalizing the charging units and displaying in real time their operational state. It also acquires and analyzes diagnostic data of the charging units and monitors the whole system from remote. Furthermore, the Ecar OC supports alarm management, meter reading of charging units, software updating from remote and reservation management of charging units. • Contracts and services management The user can set up and manage contracts and their parameters, can also require new RFID cards’ emission, blocking them in case of theft or loss. It is also able to manage user contracts and the release of different kind of reports.
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• Roaming functionalities Thanks to the management of a clearing house engine for the dispatching of charging information (for instance, the information of the charging unit and its POD, the amount of the energy provided, the information about final customers and their specific contracts), the OC Ecar provides to the different stakeholders the information needed for billing purpose. The objective is to manage billing processes through linking – if requested – different Operation Centers (the roaming platforms supported are listed into the Green Emotion and Hubject consortium) ensuring the interoperability of several charging infrastructures. • Web and mobile applications Access to the OC functionalities is possible through the web portals or smartphone apps which can help to identify the closest charging unit as well as to book it and verify the details of charging processes operated and the kWh provided. Present and future projects All started in 2009 with the pilot project E-mobility, promoted by Enel and Daimler. Siemens Italy, as technological partner, developed his first release of the current system. Siemens’ efforts in sustainable mobility continued in 2011 with the participation to the “Green E-Motion” consortium, an European Project to promote the electric mobility in Europe. This project involved 42 partners from different sectors: industries, car manufacturers, utilities, municipalities, universities as well as R&D institutes. The main goal of “Green E-Motion” was to develop processes and standards which allow electric vehicles to access in an easy and seamless way to the charging infrastructures and to related services, ensuring Roaming functionalities at an European level. In 2012, with the Bee Green Mobility Sharing project promoted by the Energy Service Company NHP, Siemens provided its technology and expertise to an innovative and completely sustainable car sharing service. Thanks to the E-car Operation Center, it was possible to manage NHP electric vehicles in Naples. It was also possible to manage final users’ contracts and all the services related to the "Green Mobility Sharing" concept. Among the-
se services the realization of the charging infrastructure was included as well. The “green” mobility service permitted to reduce significantly CO2 emissions and traffic jams in some cities’ districts. The E-car Operation Center is also part of the project of the Smart Polygeneration Microgrid, installed at the University Campus in Savona. The Smart Polygeneration Microgrid was inaugurated on February, 12th 2014 and comprises two charging units for electric cars, controlled by the system E-Car OC, connected to the DEMS (Decentralized Energy Management System), Siemens energy management platform. The solution is able to predict global consumption of the site, power generation from renewable sources, as well as to carry out the planning and the real time control of the microgrid’s operations, verifying the already available generation units and optimizing the charging and discharging cycles of the storage systems in order to appraise the production from renewable sources. Since 2010, with the increase of the E-car OC reference projects, the team has quickly grown up with sales success, spread not only in Italy, but also in Europe and South America. Thanks to the experience collected in these years, the team of engineers dedicated to the development of the software realized a complete and intuitive platform. For instance: smartphone and tablet apps which can be integrated with electric mobility services; custom web services for dashboards able to provide environmental monitoring of the urban area, reports, statistics and maps of the charging points as well as specific portals for the supervision of the service. The aim of the Centre is to become an international landmark for the development of interoperable solutions for e-car charging infrastructures. The Leitmotif of all the activities carried out so far is the know-how and highly innovative spirit which defines the Centre.
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ENERGIAMEDIA Energia Media – EM was established in Milan in 2013, based on almost 20-year experience that its founders gathered in the field of information and relations in the energy, utility and Smart City sectors EM develops communication strategies, elaborates contents and information as well as facilitates relationships.
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