smart griD IN DENmARK 2.0 - Energinet.dk

smart grid IN DENMARK 2.0 | 238 // ROAD MAP FOCUSING ON THEROLE OF THE GRID COMPANIESThis section presents a road map which constitutes a recommendation for gridcompanies to develop a Smart GridBased on the road map, it is clear that there is a needto remove two central barriers in order to promotethe conversion of the power grid to a Smart Grid. Thefirst barrier is constituted by the fact that the existingre gulation does not support grid companies usingSmart Grid technology in the power grid. The regulationassumes that all costs and investments aredriven by traditional grid components, and that companieswanting to pursue the Smart Grid path are putat an economic disadvantage.The second barrier concerns the grid companies’ accessto using variable grid tariffs to shift electricityconsumption to times with the greatest availabilityof capacity in the grid. This is not a real option todaywhere there are 3.2 million electricity customers whoare not subject to hourly settlement and who thereforecannot be billed using variable grid tariffs. While1.4 million of these customers have already had remote-readelectricity meters installed, none of themcan be offered hourly settlement and thereby lack anindividual financial incentive to be price-flexible.