TYPE 3: Smart Grids

Definition:

Integrated, technologically advanced electricity networks with improved dynamic capabilities to monitor and control the input and output of all their constituent technical components (such as power generation, Network Management Solutions, High Voltage Direct Current (HVDC) converters and systems, Flexible Alternating Current Transmission Systems (FACTS), Special Power Systems (SPS), transmission, distribution, stage, Smart Grid Power Electronics Solutions, consumption reduction, metering, distributed energy resources). ICT according to internationally agreed industry standards such as NIST-SGIP and ETSI-CENCENELEC.

Standards:

Standards 1, 2 (a or b) and 3 shall be met.  

1. The total cost of the project includes at least 20% for eligible information and communication technology (ICT) upgrades.  
2.  
   • a. An estimated minimum 10% reduction in the amount of CO2 emissions from fossil fuel will result from the project or application, or
   • b. Demonstrated significant CO2 emission reductions will be enabled through either:• reductions in energy losses within the electricity grid served by the Smart Grid application or project by at least 5%; or
   • reductions in aggregate electricity consumption by loads served by the Smart Grid application or project by at least 5%;  
     or
   • intermittent feed-in of renewable energies, including from subordinate voltage levels, representing at least an additional 10% of the total energy fed into the grid where the smart grid technologies are applied.
3. Prior to authorization, an independent, qualified third party will review the project and prepare a report that describes the characteristics of the proposed Smart Grid application or project and verifies whether the project or application will meet standards 1 and 2 (a or b). For projects using the 2b standard, estimated C02 emissions reductions enabled by the project will be included in the report. Such report will be shared with Participants prior to any authorization of financial support and authorization will be conditional on the report positively verifying that standards 1 and 2 (a or b) will be met by the proposed Smart Grid project or application. Standards will be measured by comparing the estimated emissions or energy use from an Area Served by the Grid if the proposed Smart Grid technologies are applied to emissions or energy use of that same area if the proposed Smart Grid technologies were not applied.

Maximum Repayment Term: 

15 years