Guy Block Lawyer at the Brussels and Paris Bars LEGAL CHALLENGES AND SOLUTIONS CHOSEN FOR ELECTRIC VEHICLES IN BELGIUM Electric Vehicles Conference: Electromobility.

Présentation au sujet: "Guy Block Lawyer at the Brussels and Paris Bars LEGAL CHALLENGES AND SOLUTIONS CHOSEN FOR ELECTRIC VEHICLES IN BELGIUM Electric Vehicles Conference: Electromobility."— Transcription de la présentation:

1 Guy Block Lawyer at the Brussels and Paris Bars LEGAL CHALLENGES AND SOLUTIONS CHOSEN FOR ELECTRIC VEHICLES IN BELGIUM Electric Vehicles Conference: Electromobility for Europe –Overcoming Technical, Economical and Legal Challenge, Brussels, 16 th November 2012 1

2 OVERVIEW I.UE policy framework II. Electric vehicles (EV): legal challenges in Belgium 1.Legal qualification 2.Use of renewable energy for EV recharging 3.EV recharging and smart grids III.Conclusion 2

3 Directive 2009/28/EC of the European Parliament and of the Council of 23 th April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ l140 of 5.6.2009)  Article 3.4: “ Each Member State shall ensure that the share of energy from renewable sources in all forms of transport in 2020 is at least 10 % of the final consumption of energy in transport in that Member State. ” Directive 2009/30/EC of the European Parliament and of the Council of 23 th April 2009 amending Directive 98/70/EC as regards the specification of petrol, diesel and gas-oil and introducing a mechanism to monitor and reduce greenhouse gas emissions and amending Council Directive 1999/32/EC as regards the specification of fuel used by inland waterway vessels and repealing Directive 93/12/EEC (OJ L140/88/2009)  Article 7a: “ Each Member State shall ensure that the share of energy from renewable sources in all forms of transport in 2020 is at least 10 % of the final consumption of energy in transport in that Member State. ” I.UE Policy Framework 3

4 Communication of 28 th April 2010 of the Commission to the European Parliament, the Council and the European Economic and Social Committee : A European strategy on clean and energy efficient vehicles (COM(2010)0186)  “ Electric vehicle technology has significant potential to radically address a number of challenges facing the European Union, such as global warming, dependency from fossil fuels, local air pollution and storage of renewable energy in vehicle batteries through smart grids. ” European Parliament Resolution of 6 th May 2010 on EV (2011/C81E/17))  “ The European Parliament calls on the Commission and the Council to take joint action on: i. international – wherever possible – or at least European standardization of infrastructures and charging technologies, including smart grids, open communication standards and on-board metering technology and interoperability; these imply the use of new technologies in the development of the necessary interoperable infrastructure in Europe for cross-border electric mobility, ii. (…) iii. improvement of electric networks by introducing smart grids, and the introduction of sustainable generation capacity with low carbon intensity, particularly through renewable energy sources, iv. (…) v. coordination of national support measures and incentives for the electric vehicle, vi. promotion of measures to ensure the competitiveness of the energy-efficient, clean vehicle industry”. 4

5 5 White Paper: Roadmap to a Single European Transport Area - Towards a competitive and resource efficient transport system (COM(2011)144final, 28. 3.2011)  Point 2.5. Ten Goals for a competitive and resource efficient transport system: “ (1) Halve the use of ‘conventionally-fuelled’ cars in urban transport by 2030; phase them out in cities by 2050; achieve essentially CO2-free city logistics in major urban centers by 2030 ”.

6 6 What is Electricity ? Direct current (DC) or alternating current (AC)? Directive 2009/72/EC of the European Parliament and of the Council of 13 th July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC (directive 2009/72/EC) :  No definition of electricity Law of 10 th March 1925 relative to electric energy distributions ( M.B., 25 th April 1925):  No definition of electricity Royal Decree of 11 th February 1927 establishing typical specifications for the electrical energy distribution :  Article 7, 11: « La fréquence du courant sera fixée à 50 périodes par seconde. (…) ». (The current frequency will be set by 50 periods per second). II.Electric vehicles (EV): legal challenges in Belgium

7 7 Royal Decree of 19 th December 2002 establishing a grid code for electricity transport networks and for access to networks (article 62):  Article 62: « Une unité de production doit pouvoir fonctionner en mode synchrone avec le réseau sans limite dans le temps si la fréquence du réseau est comprise entre 48.5 Hz et 51 Hz ». (« A production unit must be able to operate in synchronous mode with the network without time limit if network frequency is set between 48.5 Hz and 51 Hz”).  Electricity is not defined as such;  Available criteria are only applicable to AC;  Is DC electricity?

8 8 Service Supply of electricity Public distribution system Private distribution system 1. Recharging of EV: legal qualification?

9 9 1 st hypothesis: recharging of EV seen as supply of electricity Directive 2009/72/CE article :  Article 2: “19° “supply”: sale, including resale, of electricity to customers”. Law of 29 th April 1999 relative to the organization of electricity market as modified by the Law of 8 th January 2012 :  Article 2: « « fournisseur » : toute personne physique ou morale qui vend de l'électricité à un ou des client(s) final(s); le fournisseur produit ou achète l'électricité vendue aux clients finals ». (““ supplier”: any person or entity that sells electricity to one or more final(s) client(s); the supplier generates or purchases sold electricity to final clients. ”) Decree of the Walloon Region of 12 th April 2001 relative to the organisation of regional market of electricity :  Article 2: « « fournisseur »: toute personne physique ou morale qui vend de l'électricité à des clients finals; le fournisseur produit ou achète l'électricité vendue aux clients finals ». (““supplier”: any person or entity that sells electricity to finals clients; the supplier generates or purchases sold electricity to final clients.”) Decree of the Flemish Region of 8 th May 2009 related to special provisions in energy policy matters as modified by the Decree of 8 th July 2011  Article 1, 3: “ 78° leverancier : elke natuurlijke persoon of rechtspersoon die aan afnemers elektriciteit of aardgas verkoopt”. ( “supplier”: any person or entity that sells electricity or gas to final clients”.) Ordinance of the Brussels Region of 19 th July 2001 related to the electricity market organisation in the Region of Brussels  Article 2: « 14° fournisseur : toute personne physique ou morale vendant de l'électricité ». (“supplier”: any person or entity that sells electricity).

10 10 However, what is in people’s mind when recharging their EV? Buy energy or just recharge their car? The seller of recharged battery, an energy supplier? No, he is rather providing a service. 2 nd hypothesis: recharging of EV seen as a service

11 11 WALLONIA Decision of the Walloon Energy Regulator (CWaPE) of 13 th April 2010 related to the recharging of EV via recharging points installed in petrol-stations  Question raised: does the operator of recharging point need a supply license ?  Answer of the CWaPE: No, because: 1.The recharging of EV is viewed as a “service” more than a sale of electricity −« Les clients de ces bornes ne les utiliseraient qu’à des fins de dépannage. Cette fourniture d’électricité serait plus onéreuse pour le client que celle qui résulterait d’une recharge au domicile de ce dernier. Il s’agit d’une recharge accélérée (environ trente minutes au lieu de plusieurs heures) pour des automobilistes qui n’ont pas la possibilité d’atteindre leur domicile (ou leur lieu de travail) compte tenu de l’autonomie limitée de leur véhicule. Le client qui a la possibilité de recharger son véhicule chez lui n’aura jamais avantage à le faire via une telle borne de rechargement. Le montant facturé par la station-service correspond donc plutôt à la rémunération de la mise à disposition d’un outil permettant une recharge accélérée plutôt qu’à une revente d’électricité ». (“ The customers of these terminals seem to only use them at ends of breakdown service. This supply of electricity would be more expensive for the customer than the supply which would result from a recharge from home. It concerns an accelerated recharge (approximately thirty minutes instead of several hours) for drivers who do not have the possibility of reaching their home (or their workplace) taking into account the limited autonomy of their vehicle. The customer who has the possibility of reloading his vehicle at home will never take any advantage to reload via such a recharging terminal. Thus, the amount invoiced by the petrol station rather corresponds to the remuneration of the provision of a tool allowing an accelerated refill rather than a resale of electricity ”.)

12 12 -« Le prix de la recharge est par ailleurs strictement calculé en fonction du temps d’utilisation de la borne plutôt que des quantités d’électricité fournies ». (“ Besides, the price of the recharge is strictly calculated according to the time of use of the terminal rather than to the provided quantities of electricity.”) -« Dans un autre dossier, la CWaPE a déjà considéré que lorsque la livraison d’électricité via des panneaux photovoltaïque, n’était qu’une composante parmi d’autres services annexes facturés indistinctement et sans référence aux kWh fournis, elle ne devait pas être assimilée à de la fourniture » (“ In another file, the CWaPE already considered that when the delivery of electricity via photovoltaic panels, was only one component among other ancillary services indistinctly invoiced, without any reference to the provided kWH, it was not to be considered as a supply.”) (Note relative aux conditions à respecter pour qu'un client final puisse être considéré comme producteur dans l'hypothèse particulière du bail ordinaire ou de la location "tous services compris" d'immeubles équipés de panneaux photovoltaïques, annexe à la ligne directrice relative à l’autoproduction – cette note est un complément aux lignes directrices CD9j27 du 28 octobre 2009). -« Pour toutes ces raisons, il nous semble que ce service de rechargement doit être vu comme une prestation de service qui comprend une livraison d’électricité à prix coûtant, au moyen de l’utilisation, à titre onéreux, d’un outil accélérant la recharge ». ( “ For all these reasons, it seems to us that this recharging service must be considered as a service which comprises a delivery of electricity at cost price, by means of the use of a tool accelerating the recharge subject to payment.”).

13 13 2.All relevant legal taxes were already levied regarding the supplied electricity: - « L’électricité fournie a été acquise par la société auprès d’un fournisseur détenteur d’une licence régionale et a dès lors été soumise à toutes les sujétions et impositions légales (certificats verts, redevances…). Par ailleurs, les obligations de service public à caractère social, qui pèsent sur les fournisseurs, ne trouvent évidemment pas à s’appliquer en l’espèce puisque celles-ci sont destinées à protéger le client dans le cadre de sa consommation domestique. ». (“ The provided electricity was bought by the company from a supplier which holds a regional license and was therefore subjected to all legal provisions and taxes (green certificates, royalties…). In addition, the public service obligations for social matters which weight on the suppliers, are not applicable in this case since those are intended to protect the customer within the framework from his domestic consumption.”)

14 14 3.This activity carried out without any supply license is indeed not prejudicial to suppliers as electricity is bought from them: − « Cette activité exercée sans licence de fourniture n’est en effet pas préjudiciable aux fournisseurs puisque l’électricité est acquise auprès de ceux-ci ». 4.The aimed clientele is mobile and non dependent on a recharging point. Therefore this clientele does not give up her eligibility while accepting a delivery via the petrol station’s supplier: −« La clientèle concernée est mobile et non dépendante d’un point de rechargement. Elle ne renonce donc pas à son éligibilité en acceptant de se faire livrer via le fournisseur de la station- service ».  The CWaPE considers that recharging an EV is a service contract.

15 15  Supplier of the electricity must : −have license for supplying electricity; −ensure the free choice of supplier to the client (See C.J.E.U., arrest of 22 nd May 2008, C-439/06, Citiworks); −comply with public service obligations.  Increase of administrative burdens: do we need this? −While the Draft of National Master plan for the development of electrical mobility in Belgium (October 2011) recommends to eliminate all administrative barriers : “ Certaines procédures administratives peuvent actuellement être complexes. Il faut veiller à ce que des barrières administratives supplémentaires soient supprimées ”. (“Some administrative procedures can currently be complex. Additional administrative barriers should be removed.”) −If yes, possibility to establish simplified licenses or simple declaration for the supply of electricity for EV recharging.

16 16 FRANCE has a similar position: Green Book on the infrastructures of recharging open to public for decarbonned vehicles, April 2011 (p. 27): « Afin de s’approvisionner en électricité, le gestionnaire des points de recharge (opérateur privé ou public du réseau d’infrastructures, collectivité etc.) : - (…) ; - intègre le prix de l'électricité dans le prix du service de recharge qu’il fait payer au client final, modulable à son initiative, en fonction de la durée de stationnement, de l’heure de la journée, du niveau de puissance de charge, et/ou de la consommation d’électricité mesurée par un sous-comptage. En ce sens le client final ne souscrit pas un contrat de fourniture d’électricité, et n’achète pas de l’électricité (facturation au kWh), mais un contrat de service de recharge, qui inclut l’électricité (facturation par exemple au km, au temps de connexion, ou encore intégré avec le prix du stationnement) ». (“In order to be supplied in electricity, the recharging points’ operator (private or public operator of the core network, community etc.): - […] ; - includes the price of electricity in the price of the recharge service which he invoices to the final customer, flexible at his own initiative, according to the duration of parking, the hour of the day, the level of load power, and/or of the consumption of electricity measured by a under-counting. As such, the final customer does not subscribe a supply agreement of electricity and does not buy electricity (invoicing with kWH), but a contract of recharge service, which includes electricity (invoicing for example with the km, the time of connection, or even included within the price of the car park).”)

17 17  Annex of the Green Book on the infrastructures of recharging open to public for decarbonned vehicles, April 2011: Regulation, norms and standards for the development of EV (p.6) « Mais on peut aussi considérer qu’en dehors du domicile, on se trouvera dans le contexte d’une prestation de service entre le gestionnaire de l’infrastructure de charge et l’usager, dont la fourniture d’électricité ne sera qu’un élément accessoire, le principal étant la mise à disposition de l’infrastructure, incluant le parking ». (“ But it may also be considered that apart from a home recharge, one will be in the context of a service between the operator of the recharging infrastructure and the user, of which the supply of electricity will only be one secondary component, the main one being the delivary of the infrastructure, including the car park.”)

18 18 1.Legal consequence of EV recharging seen as a service contract:  Possibility to establish a national or regional charging point registry: −See for example the report of U.K. Government: Making the Connection, the Plug-in Vehicle Infrastructure Strategy, June 2011: “ Establishing a National Chargepoint Registry to allow all chargepoint manufacturers and infrastructure scheme operators to make data on their chargepoints available in one place, which will enable comprehensive information to be provided to consumers by satnavs and websites ”. 2.Further questions: −Can the user of an EV recharge his EV outside of home with the same electricity supply contract concluded for home recharging? −Does eligibility stop mobility and mobility stop eligibility? −Or, does mobility imply eligibility? (see, point 4 of CWaPE’s decision, slide n° 12)

19 19 3.Smartcards, a solution? See for example the report of U.K. Government: Making the Connection, the Plug-in Vehicle Infrastructure Strategy, June 2011: “ Supporting a common standard for plug-in vehicle smartcards issued by the Plugged-In Places to access their infrastructure. This will mean that any smartcard issued by one of the Plugged-In Places will be capable of being read by infrastructure from all the projects. It will also mean that these smartcards could be integrated in the future with public transport smartcard ticketing ”.

20 20 3 rd hypothesis: recharging of EV seen as private distribution system (PDS) (privé distributienet) FLANDERS qualifies EV recharging as a service, but uses a private network. Charging points for EV are considered as private distribution system  Title IV, Chapter V of Energy Decree 8 th May 2009 related to special provisions in energy policy matters as modified by the Decree of 8 th July 2011 (Energy Decree)  Article 4.7.1 “ § 1. De aanleg en het beheer van een privédistributienet is principieel verboden. § 2. In afwijking van paragraaf 1 is de aanleg en het beheer van volgende privédistributienetten toegelaten : 1° (…); 2° laadpunten voor voertuigen. (…) ”. (§ 1. The construction and operation of a private distribution grid is in general prohibited. § 2. By way of derogation from paragraph 1, the construction and management of the following private distribution grids is allowed: 1° (…); 2° charging points for vehicles. (…)).  Charging points for vehicles are regarded as an exception to the general rule of the interdiction of the construction and operation of a private distribution system (PDS).

21 21 – The Parliamentary notes of the Flemish decree justified the exception of EV recharging points by the fact that in this case the supply of electricity is subsidiary to the provision of service (Parliamentary notes, stuk 1147 (2010-2011) – Nr. 1, pp. 26 et 27) : “ Gezien de risico’s verbonden aan het ontstaan van distributienetten parallel aan de bestaande ‘publieke’ distributienetten (zie hoofdstuk 2.6.1, b)) wordt de aanleg en uitbating van een privédistributienet principieel verboden. In sommige gevallen is het echter onvermijdelijk of gewoon opportuun dat elektriciteit verdeeld wordt naar bepaalde afnemers terwijl deze afnemers geen eigen toegangspunt hebben op het distributienet of een gesloten distributienet. Bij de huur van een vakantiehuisje, het kamperen op een camping, de huur van een studentenkamer, het huren van een standplaats op een markt, evenement, kermis, en dergelijke meer, neemt men als afnemer een dienst af van een partij die een toegangspunt heeft tot het distributienet, en is het afnemen van energie van deze partij een inherent en ondergeschikt element van de afgenomen dienst. De energie wordt hem doorgeleverd. We noemen deze netten “privédistributienetten met een ‘breder dienstverleningsverband’”. De levering van energie is inherent, en slechts ondergeschikt, aan de levering van de dienst. Tenslotte zijn er ook de laadpunten voor voertuigen die geen distributienetten betreffen waarbij de levering van elektriciteit of gas inherent en slechts ondergeschikt is aan het totale dienstenpakket dat geleverd wordt. Hier kunnen verschillende businessmodellen worden toegepast. Zowel publieke laadpuntnetten als netten in beheer van privé-uitbaters kunnen als een toegelaten vorm van privédistributienet worden aanzien”.

22 22 “Considering the risks attached to the growing of distribution grids parallel to the existing ‘public’ distribution systems, the construction and operation of a private distribution system is in principle prohibited. In some cases, it is however inevitable or just appropriate that electricity is distributed to certain consumers while these consumers do not have a proper access point to the ‘public’ distribution system or a closed distribution system. In case of rental of a holiday home, camping on a camping site, rental of a student room, rental of a stand on a market place, event, fair, and so on, as a consumer one off-takes a service of a party who has an access point to the distribution system, and the off-take of energy from this party is an inherent and subsidiary element of the off-taken service. The energy is passed on to him. We call these systems “private distribution systems with a ‘broader provision of services connection’”. The supply of energy is inherent, and only subsidiary, to the delivery of the service. Finally, there are also charging points for vehicles which are not distribution grids whereby the supply of electricity of gas is inherent and only subsidiary to the total service package that is supplied. Different business models can be applied here. Both public charging points grids as grids operated by private operators can be seen as an allowed form of private distribution grids ”.

23 23 Status of Flemish PDS −PDS may only cross the public domain when permission is received from a public DSO (Art. 4.7.1, § 2, section 2); −Users of PDS only have a contractual relationship with the PDS’ operator, not with the (public) DSO (Art. 4.7.2, section 1); −PDS is all time connected to the distribution grid by one single point of access, unless the (public) DSO authorises a multiple connection (Art. 4.7.2, section 3); −PDS’ operator has no public service obligations (Art. 4.7.4); −No authorisation is required for the establishment of PDS “Zowel publieke laadpuntnetten als netten in beheer van privé-uitbaters kunnen als een toegelaten vorm van privédistributienet worden aanzien ”. (“Both public charging points systems as systems operated by private operators can be considered to be authorized forms of PDS’s ) ( Parl. Doc., 1147, nr. 1, p. 27);

24 24 −PDS’ operator considering to fall under the scope of Art. 4.7.1, § 2 may ask the VREG (Flemish regulatory authority) for confirmation of such qualification. The VREG can also proactively clarify this by indicating additional examples: “ Beheerders van privédistributienetten die menen te vallen onder één van de twee uitzonderingssituaties opgenomen in het tweede lid, kunnen hiervan bevestiging vragen aan de VREG. De VREG kan dit ook proactief verduidelijken door, bijvoorbeeld via de publicatie van een mededeling op haar website, bijkomende voorbeelden aan te duiden als situaties waar geoordeeld kan worden dat de distributie van elektriciteit en aardgas via een privédistributienet kadert binnen een breder dienstverleningspakket”. (Parl. Doc. 1147, Nr. 1, p. 43). −Moreover, no supply license must be required in case of PDS:  Article 4.3.1 Energy Decree: “§1. De levering van elektriciteit en aardgas via het distributienet of het plaatselijk vervoernet van elektriciteit, aan afnemers, is onderworpen aan de voorafgaande toekenning van een leveringsvergunning door de VREG (…). ”. (“ The supply of electricity or natural gas through the distribution grid or local transport grid, to consumers, is subject to the prior grant of a supply license by the VREG (…).”)

25 25  The background philosophy of the decision of the CWaPE and of the Flemish Energy Decree is the same: recharging an EV is a service. Supply of electricity for EV recharging is an accessory component of the provided service.  Two different legal approaches: service provider or PDS.  The background philosophy of the decision of the CWaPE and of the Flemish Energy Decree is the same: recharging an EV is a service. Supply of electricity for EV recharging is an accessory component of the provided service.  Two different legal approaches: service provider or PDS. Preliminary Assessment:

26 26 4 th hypothesis: recharging of EV seen as a part of public distribution system Directive 2009/72/EC (article 2) defines distribution and the distribution system operator [‘DSO’] as follows:  “ ‘distribution’ means the transport of electricity on high-voltage, medium-voltage and low-voltage distribution systems with a view to its delivery to customers, but does not include supply. ”  “ ‘distribution system operator’ means a natural or legal person responsible for operating, ensuring the maintenance of and, if necessary, developing the distribution system in a given area and, where applicable, its interconnections with other systems and for ensuring the long-term ability of the system to meet reasonable demands for the distribution of electricity;”

27 27 The general issue of DSO: setting up the charging points:  Can the DSO be considered as: −A service provider? −An electricity supplier? Directly or indirectly through a sister company?  Or, should the DSO work with licensed supplier?

28 28 Again if EV recharging is a service, how would the DSO guarantee the choice for the final customers of supplier? −Introduction of interactive recharging points allowing to select the supplier? −Interoperability of home recharging contracts and public recharging? −Prepaid smart cards from suppliers compatible with all public recharging points?

29 29 2. Recharging EV? With what? Only with renewable energy (REN)? Article 16, 2, (b), of Directive 2009/28/EC: “ Member States shall also provide for either priority access or guaranteed access to the grid-system of electricity produced from renewable energy sources ”. Belgium has implemented this directive by different decrees, but questions remain:  How will the choice of supplier be organised?  How can the client distinguish a green energy supplier from any other supplier?  Should this matter be regulated?

30 30 Germany promotes REN for the EV recharging:  German Federal Government’s National Electromobility Development Plan, August 2009: “The German Federal Government is looking to meet the additional power demand generated by electric vehicles with renewable energy”.

31 31 3. EV Recharging and Smart grids Article 3, (11), of Directive 2009/72/EC: “ In order to promote energy efficiency, Member States or where a Member State has so provided, the regulatory authority shall strongly recommend that electricity undertakings optimise the use of electricity, for example by providing energy management services, developing innovative pricing formulas, or introducing intelligent metering systems or smart grids, where appropriate ”. Annex I of Directive 2009/72/EC: “Member States shall ensure the implementation of intelligent metering systems that shall assist the active participation of consumers in the electricity supply market. The implementation of those metering systems may be subject to an economic assessment of all the long-term costs and benefits to the market and the individual consumer or which form of intelligent metering is economically reasonable and cost-effective and which timeframe is feasible for their distribution”.  The EU recommends to introduce smart grids for optimising the use of electricity: How will the EV recharging affect the electricity grid? Which role will smart grids play?

32 32 1.Integration in Belgium:  Draft of National Master plan for the development of electrical mobility in Belgium, October 2011 (p. 31): « Intégrer le transport électrique comme question prioritaire dans le plan d’action national “Energie renouvelable ». (« Integrating electrical transport as a priority issue in the national action plan "Renewable Energy””).

33 33 2.EV used as potential supplier of ancillary services (V2G)  CREG, Study (F)100204-CDC-929 relative to the possible impact of EV on the Belgian electrical system, 4 th February 2010 (p. 3 and p. 46): “Si le rechargement des voitures électriques pouvait néanmoins être géré de manière intelligente, une introduction à grande échelle pourrait justement s’avérer avantageuse pour le système électrique. Dans ce cadre, il faut non seulement gérer de manière intelligente le rechargement, mais il faudrait également permettre le déchargement des batteries sur le réseau de manière astucieuse. Le système dit vehicle-to-grid est mis en œuvre avec le rechargement et le déchargement intelligent à grande échelle des batteries de voiture. Si la voiture électrique est introduite à grande échelle avec un système vehicle-to-grid, l'ensemble du système électrique pourra connaître un changement de paradigme. » (“ The recharging of electric vehicles could be managed intelligently, a large-scale introduction could just be beneficial to the electrical system. In this context, not only the recharging must be intelligently managed, but also the discharging of batteries onto the grid. The so-called vehicle-to-grid system is implemented with the intelligent large-scale charging and discharging of EV batteries. If the EV is introduced on a large scale with a vehicle-to- grid system, the entire electrical system will experience a paradigm change.”)

34 34 « Jusqu’à présent, le système électrique est spécifique car l’électricité ne peut être stockée en grandes quantités à bas prix. Cela a pour conséquence que l’offre doit toujours être identique à la demande, et ce en temps réel. Si ce n'est pas le cas, le réseau électrique est instable, ce qui mène en fin de compte rapidement à un black-out. En introduisant la voiture électrique à grande échelle et en offrant la possibilité de la recharger et de la décharger de manière intelligente, le système électrique perd cet aspect spécifique, par lequel un changement de paradigme s’opère. Et ce changement représentera une amélioration sur plusieurs plans. (…) » (“Until now, the electric system is special because electricity cannot be stored in great quantities at low prices. That has as a consequence that the supply always be equal to the demand, and this in real time. If it is not the case, the electricity grid is not stable, which in the final analysis leads quickly to a blackout. By introducing the EV on a large scale and by giving the opportunity of reloading it and of discharging it in an intelligent way, the electric system loses this specific aspect, by which a change of paradigm takes place. And this change will represent an improvement on several plans. (…).”)

35 35 « La présente étude a également examiné si la voiture électrique pouvait être utilisée dans un système vehicle-to-grid comme un instrument permettant de concilier l’offre et la demande dans le système électrique. A cet égard, trois types de réserves sont prises en considération : les réserves primaires, secondaires et tertiaires. Sur la base de l'analyse menée, il s’avère que la voiture électrique peut contribuer de façon importante à toutes ces réserves. Les réserves primaires et secondaires pourraient même être complètement pourvues par la voiture électrique ». (“The present study also examined if the EV could be used in a vehicle-to-grid system like a tool allowing to balance the supply and demand in the electric system. In this regard, three types of reserves are taken in consideration: primary, secondary and tertiary reserves. On the basis of this analysis, it is proven that the EV can contribute substantially to all these reserves. The primary and secondary reserves could even be completely provided by the electric car.”)

36 36 Germany has similar position:  German Federal Government’s National Electromobility Development Plan, August 2009 (p. 11 and p.34): “ Besides traction functions, the vehicle battery in the second phase of electric vehicle grid integration will also function as a mains storage component with feedback capability. Feedback will be supervised, regulated and controlled on the grid side. Due to the increasing number of electric vehicles in this phase, the requisite additional power supply capacities will be enlarged by developing renewable energies. A promising synergy impact of electromobility will be the resulting ability to buffer variable electricity inputs for improved availability. As a storage element, vehicle batteries, particularly from larger fleets of vehicles, could be linked into combined renewable power plants (ICT-based interconnection of wind, biomass and photovoltaic systems, for example) and thus contribute to the continuity, cost reduction and improved marketability of electricity from renewable energies”. “Even more important than energy storage in electric vehicle batteries as part of load management in the long term is the ability to feed back current into the grid and contribute to providing more balancing power. With decentralised systems for generating renewable energy, a larger number of electric vehicles could be connected into a virtual power station. They could therefore perform an important function for regional energy and capacity autonomy”.

37 37  EV recharging contributes to provide more balancing power onto the grid: −Necessity to promote smart grids.  However, what would the legal qualification of V2G be? −Most probably ancillary service contract with the grid.

38 38  Legal regime of EV recharging need advanced harmonisation at both, national and European level: We can not build a gas power plant on a plug… III. Conclusion