There has been a lot of talk about the benefits of smart grids for the last few years – but how many consumers are actually benefiting from the innovations they offer? Livio Gallo explains Enel SpA’s €2.5bn investment into the largest AMM system in the world, with more than 32 million smart meters running on one system.

The New Economy: What is Enel’s vision for sustainable development of the energy industry and what is the contribution of smart grids?

Livio Gallo: Enel is significantly involved and focused in implementing effective measurable programmes and plans with the objective of contributing to National and European community targets, for reducing in-house green house gas omissions, increasing energy efficiency and for integration renewable energy resources. To this extent, with transformation of electricity network into a smart grid, is considered to be the enabling factor for implanting key measures to achieve these objectives. The smartness of an electricity grid mainly consists in a large amount of distributed intelligence needed to first maintain the electricity distribution safely and reliably, also in the presence of distributed energy resources. Secondly to provide an efficient operation in reducing C02 commissions. Thirdly, to enable new services and enable reactive participation of several reactors, customers, to the electricity market. Finally, to address a higher complexity of Eneto management due to the need to collect an analyse an increasing amount of dispersed information.

The New Economy: How can smart grids help meet the EU’s 2020 objectives on green house gas omission reduction and renewable energy?

Livio Gallo: Smart grids enable to achievements of the 2020 European objectives, as proposed in the technological plan plan of the European commission. Only a single, stronger and smarter European electricity grid is able to accommodate the result in massive deployment of renewable and decentralised energy sources, to reach European energy and climate change targets. To this extent we work with other European distribution companies in the development markets on a European scale to avoid unnecessary duplication of efforts, to promote the replication of new developments and the exchange of best practices amongst new member states. Enel has joined the EDSO (European Distribution System Operators) for smart grid association which, together with the ENTSO- E association, the European network of transmission system operators plays an important role in European grid initiative. It is a 9 year European research and development and demonstration programme, aimed to accelerate innovation and the development of electricity networks for future renewal.

The New Economy: What are the key elements for developing a successful smart grid?

Livio Gallo: Enel has already taken the first steps to a smart grid with implementation of innovative solutions for the automatic meter management. Based on the deployment of the largest AMM system in the world with more than 32 million smart meters up and running in 1 system. With installing and managing a network remote control and automation solution, implementing War force Management Systems and advanced asset management. Thanks to this investment of more than 2.5 billion euros the innovation described above led, and will lead, to a dramatic reduction of cash costs per customer and an increase in quality of service.

The New Economy: Looking ahead, that are Enel’s objectives and goals in the next 3 to 4 years?

Livio Gallo: We see our group in the next coming years as a strong International, world leading group, generating and distributing and selling energy around the world. From a DSO, Distribution System Operators, perspective we see ourselves as a lean DSO company, excellent in processes, in planning and managing the network, applying its best practices in all the grids we manage world wide. A strong collaboration with the other DSOs in order to modernise the European grid and in a potion to be able to explore, and exploit, new business opportunities.

The New Economy: Livio Gallo, thank you

Livio Gallo: Thank you to you.