October 2007 ISSN 1239-1336ISBN 978-952-457-388-7

The Finnish Funding Agency for Technology and InnovationKyllikinportti 2, P.O. Box 69, FI-00101 Helsinki, Finland

Tel. +358 1060 55000, Fax +358 9 694 9196, E-mail: tekes@tekes.fiwww.tekes.fi

DENSY – Distributed Energy Systems 2003–2007Final Report

Further information

Martti KorkiakoskiTekes

Tel. +358 10 60 55875martti.korkiakoski@tekes.fi

Jonas WolffTekes

Tel. +358 10 60 55874jonas.wolff@tekes.fi

Tekes• D

EN

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Final Rep

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Final ReportTechnology Programme Report 11/2007

DENSY – Distributed EnergySystems 2003–2007

DENSY – Distributed EnergySystems 2003–2007

Final Report

Technology Programme Report 11/2007Helsinki

Tekes, the Finnish Funding Agency for Technology and Innovation

Tekes is the main public funding organisation for research and develop-ment (R&D) in Finland. Tekes funds industrial projects as well as projectsin research organisations, and especially promotes innovative, risk-in-tensive projects. Tekes offers partners from abroad a gateway to the keytechnology players in Finland.

Technology programmes – Tekes´ choices for the greatest impact ofR&D funding

Tekes uses technology programmes to allocate its financing, networkingand expert services to areas that are important for business and society.Programmes are launched in areas of application and technology thatare in line with the focus areas in Tekes’ strategy. Tekes allocates abouthalf the financing granted to companies, universities and research insti-tutes through technology programmes. Tekes technology programmeshave been contributing to changes in the Finnish innovation environmentfor twenty years.

Copyright Tekes 2007. All rights reserved.This publication includes materials protected under copyright law, thecopyright for which is held by Tekes or a third party. The materialsappearing in publications may not be used for commercial purposes. Thecontents of publications are the opinion of the writers and do not representthe official position of Tekes. Tekes bears no responsibility for any possibledamages arising from their use. The original source must be mentionedwhen quoting from the materials.

ISSN 1239-1336ISBN 978-952-457-388-7

Cover: Oddball Graphics OyPage layout: DTPage OyPrinters: Libris Oy, 2007

Prologue

Tekes launched the five-year Densy Programme on distributed energy systems atthe beginning of 2003. The main goals of the programme were to create newknowledge and understanding in the area of distributed energy technology and toenable new business and export possibilities for Finnish enterprises.

At the starting phase of the programme, extensive studies on future business po-tential and markets of distributed energy technologies showed remarkablegrowth and good business opportunities for Finnish enterprises in internationalmarkets.

There was a common understanding that the business will grow remarkably inthe coming years, especially in Central and East European countries. On theother hand, a large number of Finnish companies were already active in this busi-ness area, some of them as technology leaders in their area. Based on this as wellas on the studies made by consultants, the programme launching decision wasmade. The goals set by Tekes were highly focused on business and exports. Nu-merical goals were set for the year 2010.

At the starting point, the industrial basis in the field was strong, but comprised ofonly a few big enterprises. The participation of small companies was consideredvery important with regard to the development of this field in the future. The par-ticipation of industrial enterprises was very intensive from the beginning.

The work in the programme was divided into six areas: new business models andconcepts, system solutions, integration, industrial manufacturing, use of infor-mation technology and model systems.

In total, over one hundred projects (exactly 123) were carried out during this fiveyear programme, 57 being research institute projects and 66 enterprise projects.Many of the research projects were on-going, continuing over several years. Thisexplains the high number of projects.

The total programme budget amounted to € 56,7 million, the share of enterpriseprojects being € 38,0 million and that of research institute projects € 18,6 million.Tekes funded the programme in total by € 31,7 million, the rest being financingfrom enterprises and public institutes.

In this final report, research projects and their main results are presented. In addi-tion, there is an extensive number of enterprise cases presented in the report high-lighting the success of the programme. For more detailed information on the re-sults and programme’s impact on markets and business, Tekes has ordered a sep-arate evaluation of the programme which will be ready and presented in public inthe spring of 2008. Hence more detailed analysis on the impact of Densyprogramme will be given in the evaluation report.

Generally speaking, the programme has significantly improved collaborationand networking of distributed energy system research, both between research in-stitutes and enterprises.

Simultaneously, the level of research has risen, the research institutions havereached the international level and they are increasingly participating in interna-tional projects especially within EU. One success factor here is Densy’s close co-operation with other EU countries in the framework of the IRED CoordinatedAction (Integration of Renewable Energy Sources and Distributed Generationinto the European Electricity Grid).

The infrastructure of research in the field has been improved by significant in-vestments in the equipment e. g. in building the pilot electricity grid (“Multi-power”) to enable testing of new distributed technologies in simulated real lifeconditions. This will be highly valuable and useful for Finnish researchers andenterprises in the future.

With regard to the main target of the programme, creating business and exportopportunities, there are no exact values available at the time of writing. However,if we look at the figures of the whole energy technology and the export, thegrowth has been remarkable since the 1990’s, reaching a new record value lastyear with almost four billion euros. Even though this doesn’t account totally forthe Densy programme, but a large share of it consists of the exports by the compa-nies with a notable role in the programme.

Finally, Tekes wishes to thank all the participants in the programme: enterprises,research institutes and other interest groups and individuals for their constructiveand fruitful attitude and co-operation. Special thanks are due to Mr. Jonas Wolff,programme coordinator, and the steering group of the programme for the suc-cessful realisation of the programme.

October 2007

Finnish Funding Agency for Technology and Innovation

Conclusions and Recommendations

Distributed energy systems today

It was noted in the steering committee that duringthe time span of the project, distributed energyhas not reach break through in Finland. This isperhaps not even foreseeable or even advisable ina research and development programme, al-though it aims at fast lead times to market. How-ever, it was felt that some significant advance-ment should be seen also on a short term, if thevery ambitious targets on medium terms shouldbe met.

Further, it was noted that only a few companieshave been able to reach for global business andsignificantly improve their position, althoughthere are also some success stories to be noted. Asignificant problem for small companies lookingfor international markets is that the domesticmarket does not prove enough support in ade-quately demonstrating their products and stabi-lizing their product development. This is espe-cially true for system providers and consequentlyFinnish companies tend to look for a role as com-ponent or add-on service providers. “BornGlobal” –concepts are difficult to carry out inheavy industries.

Some recent changes in legislation, most notablythe law on grid access for local small-scale pro-duction, putting a cap on costs for grid connec-tion and transmission of production upwards inthe distribution network, will provide some ease.Further, the goals set by the European Union re-lated to the climate strategies also express an in-terest in especially renewable energy production.There is also a general understanding that energyprices will continue to rise, whereas developingtechnology and markets will make distributed

generation cheaper. Therefore general feelingthat there is a business case for small-scale envi-ronmentally friendly production is maintained.

The market estimates presented in 2003 have notbeen evaluated but although domestic marketshave not significantly advanced global marketshave indeed grown. I.e. the market for wind tur-bines has double from 2003 to 2006 and will re-peat that manoeuvre in the coming four years, in-dicating that also everyone in the supply chainhas to more than double capacity to increase mar-ket shares. The market opportunities can also beseen on the NordEl market, were most of the newcapacity in the past ten years are either wind en-ergy or CHP.

Recommendations

The steering group noted that the big challengesfor the future is to commercialize new productson an international market, in a situation wherethe domestic market is as well small as slowly de-veloping. It would be important to identify instru-ments that enable the industry to test their prod-ucts and get real customer response in a closemarket so that correcting measures can be taken.Too little emphasis has been put on getting realcustomer demands from new market areas andespecially to get that information down to prod-uct development. Albeit that the markets for re-newable energy still are largely policy-driven.

There has been an interest to see more large-scaletesting and demonstration of new technology, es-pecially regarding system aspects. I.e. in ICT,much of the technology needed is available orwill be, if there is a demand. Therefore there arenut much effort on R&D but the impact of a good

and visible demonstration, showing what can beachieved with new ICT, would be significant. Asmore effort is put on developing new businessmodels and business development is as big a chal-lenge as technology development, there is need tobe able to test and prove the feasibility of businessmodels, as new technology is proven and tested.There would be clear benefits from testing busi-

ness models by piloting them in companies.Therefore, there is reason focus on how businessmodels in general are implemented in practical“piloting” cases– the steps, tasks, gates and mile-stones, and develop methodologies and instru-ments that could be implemented in technologyprogrammes in general.

List of Contents

Prologue

Conclusions and recommendations

1 DENSY in brief. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Electric systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.2 List of projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.3 Funding and co-operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.4 Energy network analyses and management. . . . . . . . . . . . . . . . . . 92.4.1 Active network management. . . . . . . . . . . . . . . . . . . . . . . . 92.4.2 Protection co-ordination . . . . . . . . . . . . . . . . . . . . . . . . . . 112.4.3 Island operation of DG units . . . . . . . . . . . . . . . . . . . . . . . 132.4.4 Measurement services . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2.5 Network connection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.5.1 Permanent magnet generators directly connected to grid . . 142.5.2 Parameter design and prototype generators. . . . . . . . . . . . 17

2.6 Inverters and converters in network connection. . . . . . . . . . . . . . 212.6.1 Frequency converter in the control of a small-scalehydropower plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

2.7 Power system impacts of wind power – IEA collaboration . . . . . . 242.7.1 Task 21 Dynamic models of wind farms for power

system studies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242.7.2 Task 24 Integrating wind and hydro power systems . . . . . . 252.7.3 Task 25 Design and operation of power systems with

large amounts of wind power . . . . . . . . . . . . . . . . . . . . . . 26

2.8 Energy storage applications in distributed power systemmanagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272.8.1 Energy storages to support wind power and

weak networks management. . . . . . . . . . . . . . . . . . . . . . . 282.8.2 Energy storages and power quality station. . . . . . . . . . . . . 302.8.3 Energy storages in direct current distribution systems. . . . . 332.8.4 Supercapacitors, SUPER . . . . . . . . . . . . . . . . . . . . . . . . . 35

2.9 Simulation and laboratory facilities . . . . . . . . . . . . . . . . . . . . . . . 372.9.1 Development environment for distributed generation.

Research platform MULTIPOWER . . . . . . . . . . . . . . . . . . . 372.9.2 Simulation environment . . . . . . . . . . . . . . . . . . . . . . . . . . 382.9.3 Integration of real-time simulation environments

RTDS and dSPACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

3 Heating, cooling and cogeneration systems . . . . . . . . . . . . . . . . . . 47

3.1 List of projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

3.2 Integrated heating and cooling systems for sport halls. . . . . . . . . 503.2.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503.2.2 Model for skiing pipe sport centre . . . . . . . . . . . . . . . . . . . 513.2.3 Model for snow pipeline system in skiing pipe . . . . . . . . . . 513.2.4 Integration of DC and DH . . . . . . . . . . . . . . . . . . . . . . . . . 52

3.3 Design and operation of integrated cooling and heatingsystems in regions and buildings . . . . . . . . . . . . . . . . . . . . . . . . 533.3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533.3.2 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533.3.3 Implemented research work . . . . . . . . . . . . . . . . . . . . . . . 543.3.4 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543.3.5 Use of results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

3.4 Technical and economical conditions for the DH heat supplyat the delivery boundary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553.4.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553.4.2 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 563.4.3 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

3.5 Technical features for heat trade in distributed energygeneration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 563.5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 563.5.2 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 573.5.3 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

3.6 Energy Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 593.6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 603.6.2 Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 603.6.3 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

3.7 DO2DES – Design of Optimal Distributed Energy Systems . . . . . . 603.7.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 603.7.2 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 603.7.3 Modelling DES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 603.7.4 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 613.7.5 Use of results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

3.8 Development of biomass-based micro-CHP concepts . . . . . . . . 633.8.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633.8.2 Description of the µCHP research projects in DENSY . . . . . 653.8.3 Main results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653.8.4 State of the µCHP plant . . . . . . . . . . . . . . . . . . . . . . . . . . 683.8.5 Future aspects of Stirling- engine-based biomass

fired µCHP plants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

3.9 Waste-to-energy – a modular CHP plant utilizing municipalwaste streams in distributed energy generation . . . . . . . . . . . . . . 683.9.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 693.9.2 Objectives and scope of the study . . . . . . . . . . . . . . . . . . 69

4 Fuel cell and hydrogen systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

4.2 List of projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

4.3 Distributed modular hydrogen systems, “THETA”. . . . . . . . . . . . . 794.3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 804.3.2 Project results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 814.3.3 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

4.4 Analysis and optimization of heat exchangers for fuel cells . . . . . 844.4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844.4.2 Work undertaken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844.4.3 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844.4.4 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

4.5 Development of a 1 KW power pack concept(POWERPEMFC) 2004–2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . 874.5.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 874.5.2 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 884.5.3 Networking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

4.6 The national SOFC project FINSOFC . . . . . . . . . . . . . . . . . . . . . 944.6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 944.6.2 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 944.6.3 System modeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 964.6.4 Examples of results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 964.6.5 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

5 ICT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

5.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

5.2 List of projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

5.3 Automation and data communication for small heatingcentrals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

5.4 Management of local energy resources in distributedenergy systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

5.5 TCP/IP-architecture in control of distributed generation . . . . . . . 107

6 Manufacturing technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

6.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

6.2 List of projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

7 Business models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

7.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

7.2 List of projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

7.3 Future business opportunities in the field of distributedenergy systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1147.3.1 The future business development and potential markets . . 1147.3.2 The technology potential for the business and the future

scenarios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1167.3.3 The main findings and future challenges . . . . . . . . . . . . . 117

7.4 Business potential in the field of distributed energy generation . . 1187.4.1 Business challenges and models . . . . . . . . . . . . . . . . . . . 1197.4.2 The main findings and future challenges . . . . . . . . . . . . . 119

7.5 Business opportunities in the intersections of industries. . . . . . . 1217.5.1 Potential business areas and ideas . . . . . . . . . . . . . . . . . 1237.5.2 The main findings and future challenges . . . . . . . . . . . . . 124

7.6 Russian Business environment and business challenges . . . . . . 1257.6.1 Business challenges for the companies in Russian

markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1257.6.2 The main findings and future challenges . . . . . . . . . . . . . 126

7.7 Present and future business applications and challengesin the field of distributed energy generation . . . . . . . . . . . . . . . . 1267.7.1 Integrated solutions for distributed energy sector . . . . . . . 1267.7.2 Integrated solutions and their potentiality in business . . . . 1287.7.3 Practical applications of the results . . . . . . . . . . . . . . . . . 129

7.8 Value chain life cycle in the energy production by Bio Gas . . . . . 1297.8.1 Analysis and Value creation through applications . . . . . . . 1337.8.2 The main findings and future challenges . . . . . . . . . . . . . 134

7.9 Eco-effective society and economic energy productionsolutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1357.9.1 New business concepts and economic solutions . . . . . . . 1397.9.2 The main findings and future challenges . . . . . . . . . . . . . 139

7.10 Eco-efficient housing and housing area . . . . . . . . . . . . . . . . . . . 1397.10.1 Model solutions for eco-efficient housing . . . . . . . . . . . . 1397.10.2 Decentralized energy systems for housing areas . . . . . . . 1417.10.3 Business opportunities . . . . . . . . . . . . . . . . . . . . . . . . . 142

7.11 EHJ Concepts of distributed CHP. . . . . . . . . . . . . . . . . . . . . . . 1437.11.1 New business solutions for and through EMS of

distributed CHP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1447.11.2 The main findings and future challenges. . . . . . . . . . . . . 145

7.12 Conclusion – the future needs and opportunities . . . . . . . . . . . . 145

Company projectsThe Switch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Wärtsilä Biopower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Savonia Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Condens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Greenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Wärtsilä fuel cells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78Netcontrol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103Technology Centre Merinova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104Partnering in the UK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

APPENDIX A Projektit ja yhteystiedot . . . . . . . . . . . . . . . . . . . . . . . . . . 149

Tekes Technology Programme Reports . . . . . . . . . . . . . . . . . . . . . . . . 156

1 DENSY in brief

The technology programme for Distributed En-ergy Systems (DENSY) started back in 2003 withthe ambition to strengthen the Finnish energytechnology industry in a bid to take it global. Theprogramme has focused on developing new tech-nologies and business solutions by acceleratingacademic research projects and private researchand development. The programme has exceededits original funding target of 46 million euros andwill reach 57 million euros, supporting in total123 individual development projects. Tekes cov-ers about half of the total funding with the otherhalf covered by participating companies andother organisations.

In the DENSY-programme distributed energysystems have been defined as ”Local, small sizedsystems for energy conversion, production andstorage as well as related services”. This hasbeen an inclusive definition covering any energyproduction unit located in the distribution net-work as well as production of power, heat or coldand especially renewable energy sources. Inde-pendent or grid-connected and even mobile solu-tions have been accepted.

Motivation

The motivation for starting the programme wasthe general understanding that global markets fordistributed generation were growing, and grow-ing faster than other energy markets. This transi-tion was not seen as a revolutionary systemchange, but more as a gradual introduction of newtechnology operating aside or within a traditionalor existing energy system.

In addition, it was recognised that there alreadywas a lot of know-how of the field in Finland, in-cluding system technology and automation, dis-tributed generation, information systems, substa-tions and remote control, generators and gears,

CHP and power from bioenergy. It was seen thatthe domestic energy technology industry had itscore strengths in intelligent and integrated solu-tions, smalll-scale applications and renewableenergy technology and that the sector would ben-efit from a global market growth. In new serviceslike remote-controlling and condition monitoringof power plants, the follow-up of energy technol-ogy and communication in electricity tradingICT has a central role. Plus many successfulFinnish products can be found in energy produc-tion, transmission, and distribution, as well as inend-use technologies. The product range coversadvanced automation and ICT to large diesel en-gines, fluidised-bed combustion and more gener-ally in combustion technology, components andgenerators of wind turbines as well as frequencyconverters.

There are a number of global trends that favourdistributed generation. Most notably, the openingof energy markets and the importance of energysecurity and environmental values have led to agrowing demand for renewable energy sourcesand combined heat and power (CHP). Distributedenergy systems have low investment costs and thegrowing markets for energy trading give new op-tions to run independent power plants. Independ-ency from power and/or heating networks bringsbetter security of supply and reduces the custom-ers’ costs of transmission. There are further com-mercial opportunities in developing modular sys-tems and mass-production techniques giving thebenefits of real industrial production.

Prior to launching the program, Tekes ordered amarket study that was carried out by Frost&Sullivan (Frost&Sullivan 2003).The market vol-ume in countries close to Finland was estimatedto reach 11 billion euros in 2007 and the totalglobal market volume even 53 billion euros in2010.

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Objectives and focal areas

The main objectives of the programme have beento assist this niche Finnish industry, especiallySMEs in developing products and services forglobal markets, to increase global awareness ofFinnish technology, to build a world-class inno-vative environment, and to produce commercialproducts for several niche markets by 2010.

Given the inclusive definition of the programme,and the broad scope, the programme’s focal areaswere chosen to be broad cross-cutting issues, asillustrated in the figure below. However, therewas a motivation to establish topical research net-works of and the research projects were accord-ingly grouped into: Electric systems, Heatingsystems, CHP, Business models, Industrial man-ufacturing and ICT. In addition, Fuel cell re-search targeted at energy production and energysystem integration was included in the pro-gramme from 2004 until eventually in 2007 a newFuel cell technology programme was launched.The results from the 57 research projects are re-ported here under these headlines.

Information and communication technology isincreasingly being used in the energy sector andis still instrumental in enabling cost-effective dis-tributed energy generation. The list of new prod-ucts developed includes remote control and oper-ation; and optimisation and energy managementof dispersed CHP-units. Improvements in manu-facturing are still needed in order to get the cost-efficiencies and economy-of-scale effects forsmall production facilities right. And lean manu-facturing and modular design, especially in thebioenergy sector, is the key to drive this develop-ment. Likewise, dedicated business models, e.g.combining the earning logics of the various prod-uct streams polygeneration or biogas solutionsare being developed. Although the programmehas been heavy on technological development,well-timed testing and successful demonstrationsare needed for commercialisation. Several newproducts are emerging from the programme andwill find their way directly to customers or to ademonstration market within a few years.

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Figure 1.1. Programme focal areas.

Research co-operation

Eleven research institutes have accounted for 57of the programme’s projects totally an investmentof 19 million euros. More than 140 different com-panies are co-funding this research. Industrial de-velopment, comprising of product development,improving production capabilities, knowledgedevelopment and business development, is car-ried out through the other 66 projects in theprogramme with a total investment of over38 mil-lion euros. This work is either carried out by theindustry themselves or subcontracted to a re-search organisation.

Electrical systems

At the very core of the DENSY programme hasbeen the development of products and solutionsfor the integration of distributed energy genera-tion to various energy systems; i.e. integration tothe electrical grid, to the district heating networksand to the endusers on-site systems. Grid integra-tion research has been pooled in a joint project,where the leading institutes have assessed the is-sue both from the producers’and the network op-erators’point of view, building planning tools andmodels accordingly. Research of electric systemsof distributed generation has covered two princi-pal areas. Firstly, the influence of distributed gen-eration on the electricity network and on the net-work operation has been studied in more than tenprojects. Secondly, the devices and systems usedin the distributed generation have been developedin less than ten research projects. In addition topublic research, more than ten projects of compa-nies were followed through to develop new de-vices and systems.

“Flexible interconnection” is a new idea for con-nection of intermittent distributed generation intodistribution network thet utilizes the “free” capa-bility of network by controlling production basedon network conditions. The theoretical maximumfor a local unit is the maximum transfer capabilityof the network in the connection point. The flexi-bility of a production unit is realized with localvoltage control of distributed generation or withproduction curtailment in order to limit voltagerise in weak networks. The flexibility of distribu-

tion network is for example co-ordinated voltagecontrol of DG units and networks.

The ring operation mode presents new possibili-ties in connecting distributed generation to thenetwork. This is especially possible in weak ruralnetworks. The ring operation of the distributionnetwork will divide power flows to the feedersmore evenly than radial operation, losses will beminimized and voltage rise due to distributedgeneration can be limited. The voltage profile ofring operated feeders is also more flat than profileof radial feeders. These properties will result tobetter utilization of distribution system than ra-dial operation using the ring operation mode may,however, complicate the protection issues.

The network connection from the point of view ofpower plant technology was studied focusing onwere the use of frequency converters for networkinterfacing, and the design of the permanent mag-net generators either used with frequency con-verters or directly connected to electricity net-work. A the frequency converter driven generat-ing hydro electric plant concept was designed andpiloted. As a result of research, the possibilitiesand restrictions of such concept were shown. Thefirst hydro plants using the concept are already inproduction use.

The system aspect of introducing large wind en-ergy in the grid have been studied in three projectrelated to the IEA Implementing Agreement onWind Energy. Wind energy is one of the fastestgrowing energy technologies and the findings ofnetwork studies will be used as examples for inte-grating renewable energy and distributed genera-tion in general.

Energy storage has bee studied in a number ofprojects including various techno-economicalstudies, simulations and demonstrations of en-ergy storage technology and its solution in differ-ent power distribution tasks. The main researchareas have covered energy storages for the net-work management with wind power systems andUPS, with power quality systems/stations, in DCdistribution systems and microgrids; one of theresearch areas has also been the control and im-provement of the operation and maintenance reli-ability of a weak electrical network.

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Commercially available supercapacitors havebeen tested electrically using Arbin super-capacitor test station. Also long-term and low-temperature test have been performed. This de-vice was applied also for measuring self-madecomponents. The commercially available super-capacitors and those made in the project havebeen compared. The comparison shows that thespecific capacitance of the commercial compo-nents has been surpassed and internal resistanceis of the right level but leakage current should stillbe decreased.

Heating, cooling and cogeneration

Finland has one of the most extensive networksfor district heating in the world and a high shareof combined heat and power production. Here thepromise for distributed generation is illustrated.All or most of the “easy” load, i.e. big municipali-ties and industrial plants already have CHP and ordistrict heating. Thus growth or added productioncan only come from smaller and smaller loads.As the new installations become smaller, there isa need to find new solutions to how to ensurecost-efficiency as most technology is developedfor a larger scale.

One line has been to build on further integrationto either cooling (in addition to heating andpower) or integration to the waste managementsystem. Integration to cooling opens new oppor-tunities for technical and product developmentand the concept has been tested in sports-hallse.g. Further integration is also challenging in thatit combines different business logics in a chal-lenging way.

Further, there has been an interest to developbiopower-solutions. With also other Tekes activi-ties going on in the field, the programme hasmainly focused on small scale bio-CHP solu-tions. The studied µCHP’s produce electricity di-rectly from solid biomass and the price of the pro-duced electricity should be competitive to thewind turbines and/or the traditional biomass-fired power plants.

Liquid fuel fired aggregates have been widelyused in micro-scale electricity production. These

units (< 1 MWe) are of the same magnitude withthe solid biomass fired units studied.. Althoughthe aggregates have been so far fired with fos-sil-based gasoline and diesel, bio-diesel is possi-ble to be used as well leading to CO2 free energyproduction. The aggregates have traditionallybeen used during short periods, for example infarm houses during the shut downs of the grid andin cases outside the grid with low base consump-tion and occasional peaking. The base load hasbeen covered for example with solar cells and thepeaks which and aggregate. The development ofthe aggregate technology has led, however, tolarger units (with 10–100 kWe) which can be incontinuously use with additional production ofdistrict heat. The trend has also been from gaso-line-fired aggregates to diesel-fired aggregates tominimise the fuel costs

Fuel cell activities

Fuel cell research was quite modest until the be-ginning of the 21th century when Wärtsilä Cor-poration started its SOFC development. Thisgave a strong boost the fuel cell activity in Fin-land. Tekes accepted its role as funding organiza-tion for this activity and the budget of Tekesfunded fuel cell projects increased from > 1 M€ in2000 to 5 M€ in 2005. There was a clear interestin Tekes to coordinate this activity, and thereforethe fuel cell and hydrogen activity was incorpo-rated into the Densy technology program fromthe beginning of 2004. These projects ended inthe end of 2006. The Densy technology programhas reached its end in 2007, but the Fuel Cell andHydrogen research funded by Tekes is continuingin a new Technology program “Fuel Cells”,which will continue over the whole period2007–2013, corresponding to the EU FP7.

ICT

It is apparent that technical development ICT andautomation has brought new opportunities for lo-cal power production. On the other hand, whilesmall plants are usually low cost in building, theadded cost of including expensive data communi-cation systems or remote operation systems canbe too much. The combination of new hardware,communication, and software technologies cre-

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ates opportunities to achieve two-way interactionwith all kinds of power network nodes, customersand customer equipment and to more autono-mous, flexible self-managing (self-configuringand self-healing) system of networks. Thesenovel ICT-enabled solutions will be key contribu-tors in realizing reliable and efficient power dis-tribution systems with high degrees of distributedpower production.

Manufacturing

One of the promises of small-scale generationlies in being able to utilise developed industrialmanufacturing to move from economy of scale(i.e. large power plants) towards economy ofnumbers (i.e. large number of power plants) andthus significantly reducing costs. At the sametime, it needs to be understood that the advancedmanufacturing solutions need big markets to payback the investments.

Although industrial manufacturing was one ofthe most active areas of the programme, only tworesearch projects were financed. Also, these werenot pure research projects but to a large extentproject pre-feasibility activities, where eventualideas for development projects were pre-as-sessed. However, the ideas and concepts pre-sented in these projects have to some extent beencarried forward in the various industrial develop-ment projects.

Business concepts

In the business concept research of the Pro-gramme, several research projects have been con-ducted to create new knowledge of future businessopportunities, to form optimal business concepts,and to make demonstrations for business use.

The overall scope of the research projects:• Define value chain, business opportunities,

and customer benefit.

The main Objectives of the research projects:• Commercialization of new technologies and

services• Formation of business networks• Benefiting from the changing business

environment.

According to the following research projects, thebusiness development of the DG is mainly relatedto the investments in existing systems and the in-tervention of the authorities. The future businessdevelopment depends on the saturation point ofthe returns of the present investment. In otherwords, the business will increase when the re-turns of investments in new DG technology willbe more profitable than the past and present in-vestments.

This inflection point can also be affected by theauthorities. According to the research projects,the most potential and strongest way in generat-ing new business is to force companies utilizenew technology through the legislation. This con-cerns only the areas with the well-developed in-frastructure. At the same time, there are areaswhere such dilemma does not exist, e.g. Africa,South-America, and Far East. Due to that they areable to pass obsolete technology and can directlyutilize advanced Distributed energy generationtechnology.

Although, there within the program has been sig-nificant research into the area of business modelsonly one of the research projects have gone so faras to piloting the business model. In research anddevelopment work piloting is an important step.In the natural and technological sciences piloting,i.e. the practical testing of one’s theories, modelsand assertions is common practice – proof ofwhich is not only all the new solutions that arebrought forward but also the numerous ideas thathave been disproved. Unfortunately, the traditionof testing ideas and theories is not nearly as usualin business studies – i.e. the field of how businessis done in a certain industry.

Demonstration

The MULTIPOWER platform can nationally andinternationally be used for example as a testingsite for the components and generation units of aDG system, as a platform for the validation of thecontrol and management system of a DG distri-bution system, for the production optimisation inthe multi production systems, as well as it acts asa platform for the component and system integra-tion tests.The testing environment has also been

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introduced also for the European Network ofDER Laboratories and Pre-Standardisation forpossible membership.

Also an extensive computer-based simulation en-vironment was created. This environment can beapplied in studies related to the analysis and de-sign of grid interconnection of various types ofdistributed generation. The primary aim was tocreate a collection of simulation models repre-senting various types of networks and generators.The network models serve as a basis for the simu-lation environment, and the user will have a freechoice to include a desired selection of variousdistributed generators into the network model. Inaddition to these the aim was also a have libraryof models representing the protection relays andcontrol systems. The primary tool applied in theprojects was PSCAD, which is a well-knownpower system transient simulation tool.

In addition the testing and demonstration of tech-nical concepts there would be clear benefits fromtesting business models by piloting them in com-panies. First, by testing the models it is possibleidentify weaknesses in the underlying theoriesand assumptions thereby contributing to businessstudies and the study of the particular field. Sec-ond, testing and piloting the business model isalso the best way to ensure that the companiesconcerned are able to take concept into practiceand thereby benefit from the basic research beingcarried out at universities. Third, even if themodel were to prove unworkable that would in it-self contribute to overall knowledge and functionas a basis for further theories and models.

Technology for global markets

The DENSY programme actively cooperateswith partner institutions on programmes and at

project level by sharing information and partici-pating in joint projects. Tekes is especially inter-ested in activities that can demonstrate the capa-bility of new technologies. International coopera-tion focuses on the field of basic research, how-ever enterprises are also encouraged to collabo-rate with their foreign counterparts in greaterdepth as technology programmes can provide anideal framework for business development. Tekesis involved in several of International EnergyAgency’s implementing agreements and DENSYactivities are reported or included in the areas ofbioenergy, hydrogen, fuel cells, DSM, energystorage, wind power and solar heating.

Through IRED, ‘Co-ordinated action on Integra-tion of Renewable Energy Sources and Distrib-uted Generation into the European ElectricityGrid’, the programme has established Euro-pean-wide networks. IRED started the confer-ence series on the Integration of Renewable En-ergy Sources and Distributed Energy Resourcesand has further been instrumental in the inaugura-tion of the EU Technology platform ‘SmartGrids’, where Tekes is represented in the MirrorGroup for national authorities.

Several market studies and partnership buildingactivities target the North American markets. Inparticular the North America Access Program(NAAP) aims at establishing cooperation be-tween Finnish and overseas companies to enablemarket access. Tekes, Finpro, Helsinki School ofEconomics (HSE), Motiva and nine Finnish com-panies operating with distributed energy systemshave examined the best operating models for ex-ports and are looking for local partners in the UK.The companies in the project have approachedthe promising UK energy markets with new oper-ating methods. The project examines small andmedium sized companies’ internationalisationboth in practice and in theory.

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2 Electric systems

2.1 Introduction

Distributed energy resources cover biomass, so-lar energy, wind energy, geothermal energy, hy-dro energy etc. Electric systems are involved inmajority of the energy conversions of these re-sources. In addition, the distribution and storageof electric energy is a part of most systems. Elec-trical energy produced in a stand-alone plant isused locally, and in order to match the time-vary-ing production and consumption, the energy mustbe stored. If, on the other hand, the plant is oper-ated parallel to the electricity network, the elec-tric systems connect the plant to the electricitynetwork, and in that case, safe and economicalnetwork operation has to be guaranteed.

In the DENSY program, the public research ofelectric systems of distributed generation coverstwo principal areas. Firstly, the influence of dis-tributed generation on the electricity network andon the network operation has been studied inmore than ten projects. Secondly, the devices andsystems used in the distributed generation havebeen developed in less than ten research projects.In addition to public research, more than tenR&D projects of companies were followedthrough to develop new devices and systems.

2.2 List of projects

VTT, System impacts of wind power

Date of funding decision: 7.2.2006Research project, ongoing

VTT, Energy storage for managingdistributed generation

Date of funding decision: 7.2.2006Research project, ongoing

VTT, Development of a supercondensator,stage 2Date of funding decision: 7.2.2006Research project, finished

Lappeenranta University of TechnologyPower distribution and distributedgenerationDate of funding decision: 27.4.2005Research project, ongoing

VTT ProcessesIntegration of wind and hydropowerDate of funding decision: 17.2.2005Research project, finished

VTT Developing a super-capacitor, step ½Date of funding decision: 20.1.2005Research project, finished

VTT ProcessesInternational co-operation in wind energy,IEA R&D WINDDate of funding decision: 20.1.2005Research project, finished

VTT ProcessesMid-sized energy storage in decentralisedpower distribution applicationsDate of funding decision: 22.4.2004Research project, finished

Tampere University of TechnologyGrid integration of distributed generation 2/2Date of funding decision: 18.3.2004Research project, finished

Savonia PolytechnicA local system for power distribution andapplication in rural areasDate of funding decision: 30.10.2003Research project, finished

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VTT ProcessesA simulation environment for grid connectionof distributed generationDate of funding decision: 26.6.2003Research project, finished

Lappeenranta University of TechnologyDistributed generation devices andgrid connectionDate of funding decision: 26.6.2003Research project, finished

VTT ProcessesWind power models in grid studiesDate of funding decision: 18.6.2003Research project, finished

VTT ProcessesEnergy storage technologiesin Finnish wind power plantsDate of funding decision: 18.6.2003Research project, finished

Tampere University of TechnologyGrid connection of distributed generation ½Date of funding decision: 5.6.2003Research project, finished

2.3 Funding and co-operation

The companies participating in Active networkmanagement in electricity distribution have beenABB Oy Sähkönjakeluautomaatio, Fingrid Oyj,Fortum Sähkönsiirto Oy, Nokian Capacitors Oy,Oittisen tila and Wärtsilä Oyj.

The companies participating in ENVATUULIhave been ABB Oy, Fortum Power and Heat OyGeneration and Merinova Oy Ab.

The companies participating in ENVADE havebeen ABB Oy, Evox Rifa Group Oyj, Oy FinnishElectric Vehicle Technologies Ltd, Fortum Powerand Heat Oy Generation, Merinova Oy Ab,Nokian Capacitors Oy, Powerware Oy, PowestOy, Winwind Oy and Wärtsilä Finland.

The companies participating in ENVADE+ havebeen ABB Oy, Evox Rifa Group Oyj, FortumPower and Heat Oy Generation, Merinova OyAb, Nokian Capacitors Oy, Eaton Power QualityOy and Helen Sähköverkko Oy.

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The Switch

The Switch was established in 2006 when Rotatek Finland, Verteco andYoutility joined forces to become The Switch. As a part of the DENSYprogramme, the company has developed a product family of permanent mag-net machines (PM) for a range of motor and generator applications.

The integrated design of The Switch PM machines is developed for both effi-ciency and adaptability in various applications. In the case of outer rotor motors- which are used in conveyers - the entire motor is assembled inside a drivingroll. In pump and blower applications, the motor may be directly integrated ontothe equipment shaft, a solution which completely eliminates the need for me-chanical couplings and axle alignments. High, smoothly controllable motortorque is guaranteed throughout the drive speed range - even at the lowestspeeds. The permanent magnet machine power range extends to 5 MW andthe speed range to 6000 rpm.

The future looks bright: the company expects to double its sales every year until2011. The Switch’s customers are mainly in the wind power branch and locatedall around the world. In five years, the company has grown from four employeesto 15, almost all of whom all are involved in the product development.

The companies participating SUPER3 have beenEvox Rifa Group Oyj, Kone Corporation, Kone-cranes Plc, Panipol Ltd and MSc Electronics Oy.

The companies participating in VELKO, part 1have been ABB Oy, Drives, Verteco Oy, MScElectronics Oy, Vaasa Engineering Oy, Water-pumps WP Oy, Power Factor Ay, KonetuotePiispanen Oy and Kylmätec Ky.

The companies participating in ELDIG havebeen ABB Oy, Drives, Verteco Oy, Vaasa Engi-neering Oy, Rotatek Oy, Waterpumps WP Oy,Axco Motors Oy, Power Factor Ay, Fortum Säh-könsiirto Oy, Vattenfall Verkko Oy, Kemijoki Oy,ABB Oy, Sähkönjakeluautomaatio, WärtsiläOyj, Vamp Oy, Rovakaira Oy.

The companies participating in MULTIPOWERhave been Wärtsilä Oyj, Merinova Oy, E.ON Fin-land Oyj, Gasum Oy, Finnish Natural Gas Asso-ciation, VaPo Oy and ABB.

The companies participating in DIGIN 1 and 2have been ABB Oy Sähköasema-automaatio,Cybersoft Oy, Finergy, Fortum Sähkönsiirto Oy,Kemijoki Oy, Koillis-Satakunnan Sähkö Oy, MXElectrix Oy, Nokian Capacitors Oy, TampereenSähkölaitos, Vattenfall Verkko Oy.

International co-operation: IEA co-operation:

NREL (USA); UWIG (USA); Northern ArizonaUniversity (USA); DG&SEE (UK); UMIST(UK); UCD (Irl); Eirgrid (Irl); KTH (Swe);Chalmers (Swe); Sintef (Nor); Statkraft (Nor);Risö (Den); Energinet.dk (Den); ISET (Ger);RWE (Ger); E.On Netz (Ger); INETI (Portugal);EWEA (European Wind Energy Association,Bryssel); ECN (NL); University Castilla laMancha (Spain); REN (Por); Hydro Quebec(Can); Manitoba Hydro (Can); Hydro Tasmania(Australia); Swiss Federal Office of Energy(Switzerland); Natural Resources Canada (Can).

2.4 Energy network analysesand management

ELDIG, 2004–2007, Power distribution and dis-tributed generation, 1170 k€, Lappeenranta Uni-

versity of Technology, Tampere University ofTechnology, VTT Technical Research Centre ofFinland and University of Vaasa.

2.4.1 Active network management

Statistical network planning method

The starting point for a study of statistical plan-ning methods for electricity distribution networkwere the existing network information systems(NIS) applied in Finnish network companies to-day. The aim of the study was to develop methodswhich could take into consideration the influenceof distributed generation (DG) at analysis andplanning functions. NIS tools in Finland have along tradition to utilize statistical load curves(time series for a customer type) in network anal-ysis. A similar method was developed for produc-tion units (wind power, combined heat and powerunits and hydro power) to model time variation ofpower production based on statistical propertieslike monthly average wind speed, outdoor tem-perature and inflow. (Repo, 2005a).

The statistical planning method and productioncurves were verified with measurements made inHailuoto distribution network and wind powerunits. The measurements showed that the di-mensioning of distribution network should bebased on the worst case planning principle whenthe network includes only wind power. Windpower production correlated well with load de-mand, when monthly average production andload are considered. However individual hoursmay behave differently depending on wind con-ditions. The probability of voltage rise above aplanning limit during a minimum load conditionis somewhat smaller what is considered today atnetwork planning. (Bastman, 2007)

The statistical network planning method createsseveral production curves for use in the networkanalysis. These calculations will produce a distri-bution function for each hour, network node andvariable. For example the voltage distribution ofDG connection point during the hour of mini-mum load demand describes the probability ofexceeding the maximum voltage limit or theamount of network transfer capability with cho-sen probability level. Calculation examples have

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shown the benefits of statistical planning methodat distribution network planning when a networkincludes wind power units (Laaksonen, 2004),(Repo, 2004a), (Repo, 2005a), (Repo, 2005c),(Repo, 2005d), (Mäki, 2006b). The same methodhas also applied to estimate variable costs of elec-tricity distribution company due to DG (Repo,2005a), (Repo, 2006a).

“Flexible interconnection” is a new idea for con-nection of intermittent DG into distribution net-work (Repo, 2006b). The worst case planningprinciple will lead to strong enough distributionnetwork from technical point of view, but fromeconomical point of view that will lead to deterio-ration of utilization rate of distribution networkfacilities. The worst case planning principle al-lows addition of DG capacity according to mini-mum of network transfer capability which occursonce a year and the capability is higher than thatrest of the time. The flexible interconnection ofDG utilize the “free” capability of network bycontrolling DG unit based on network conditions.The theoretical maximum for a DG unit is themaximum transfer capability of network in theconnection point. The flexibility of DG unit is re-alized with local voltage control of DG unit orwith production curtailment in order to limit volt-age rise in weak networks. The flexibility of dis-tribution network is for example co-ordinatedvoltage control of DG units and network. (Repo,2005a).

Interconnection of small-scale hydro-electric power plant to weak network

The interconnection of small-scale hydroelectricpower plant to a 20 kV electricity distributionsystem was studied by modelling a case networkand DG units in PSCAD. Developing the modeland verifying it constituted the central part of thisproject. In order to verify the simulation resultscomparative disturbance recorder measurementswere arranged in the real MV network with thestartups of the appropriate power plants. Thecomparison of the measured and simulated quan-tities indicated that applying the dynamic modelof the system the magnitude and waveform of thestarting current and voltage dips due to it can bereliably simulated.

One aim of the study was to utilize the simulatedresults of connecting the asynchronous generatorto the medium voltage (MV) distribution system tofind solutions to power quality problems caused tocustomers by the starting and operation of thesegenerators. According to simulations the startingcurrent may cause significant voltage dips to othercustomers. The depth of the voltage dip dependson the electrical distance of the customer from theappropriate generator. The loading condition ofthe feeder also has a clear effect on the voltagedip, being deepest when the loading of the feederis at its maximum. Because of the extent of thedisadvantage caused by a voltage dip it is neces-sary to limit the starting current in many cases.

An induction generator of a few megawatts con-siderably increases the transmission of the reac-tive power via the MV feeder. To improve thepower factor, increase the active power transmis-sion capacity and decrease the power losses it isappropriate in many cases to fit local power factorcorrection capacitors at the terminals of the gen-erator. The main benefit will be achieved if the lo-cal parallel compensation is adjustable. If only allor part of the no-load reactive power demand iscompensated the part of the reactive power in thetotal power remains relatively high when the gen-erator operates with rated power. By applying se-ries compensation the part of the series imped-ance of the line can be compensated which in-creases the power transmission capacity of thefeeder. The wide variation of the ratio of the pro-ductive and load capacity along the MV feedermakes it difficult to locate the compensation unitat the optimal point. (Nikander, 2005), (Nikan-der, 2007a) and (Nikander, 2007b)

Testing of PSS in small gas power plant

The behaviour of a power system stabilizer (PSS)at synchronous machine voltage controller ap-plied in a small gas power plant was examinedwith PSCAD and RTDS simulations. Testing areal automatic voltage regulator (AVR) and espe-cially the power system stabilizer was an impor-tant part of the subproject. Therefore, time do-main simulations are used instead of modal anal-ysis. The closed-loop testing of the physical de-vice is conducted using the Real Time Digital

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Simulator (RTDS). Simulations are also carriedout using PSCAD simulation software. In thesesimulations the whole study system, includingthe AVR, is represented by a model.

The low inertia of the gas power plant presentedsome problems in the application of the powersystem stabiliser. Because of the low inertia, thefrequency of local oscillations was high (>3 Hz),and it was difficult to tune the power system stabi-liser for the whole frequency range covering bothinter-area and local modes of oscillation. In thestudy system, the power system stabiliser im-proved the damping of inter-area oscillations inalmost all cases studied. The modeled PSS en-hanced also the damping of local oscillations inalmost all simulations, whereas the real stabiliserdeteriorated it nearly each time. In steady state,the power system stabiliser introduced signifi-cant noise to the AVR output because the oscilla-tions of mechanical power were visible also inelectrical power. This is also due to the low inertiaof the power plant. The noise in steady state couldbe decreased by adding filtering to the PSS or us-ing a different type of stabiliser. (Partanen,2006a), (Partanen, 2006b) and (Kulmala, 2007a)

Active voltage control of DG units and OLTC

A method for active voltage control has been de-veloped and its functioning has been tested withPSCAD-simulations at MV network feeding theHögsåra wind park. The method is based onco-ordinated control of on-line tap changer(OLTC) of primary transformer and local voltageand power factor controls of DG units. The basicidea of the method is to adjust the voltage settingvalue of OLTC within acceptable limits which arechecked based on distribution system state esti-mate. The benefit of the active voltage controlmethod is better utilization of distribution assetsby allowing connection of larger production ca-pacity into existing network than with traditionalvoltage control method. The control method op-erates as expected in the simulations. It is capableof restoring voltages within acceptable limits af-ter disturbances like production changes, whenthat is possible by controlling the voltage of pri-mary substation. The method includes also prop-erties which prevent OLTC hunting and continu-

ous operation of network with exceptional highor low voltages. A planning method for selectionof controllers’ setting values has been proposedwhen a network includes one DG unit. (Kulmala,2007b) and (Kulmala, 2007c)

2.4.2 Protection co-ordination

Protection impacts of DG andprotection planning

The main objective of the studies conducted wasto determine the problems related to the traditionalnetwork protection due to the propagation of DG.The phenomena related have been studied withdifferent simulations and calculations. A furtherobjective was to ideate methods for including theobservations in network planning methods. Asmost of the typical distribution network planningis performed in steady-state NIS systems and theimpacts of DG have, on the other hand, stronglydynamic nature, this objective is very challenging.However, according to the feedback from networkutilities, the impacts of DG should be integrated tothe planning systems. Utilities are not eager to usedynamical simulation tools for their planningpurposes. The studies have been performedstrictly from the distribution network’s point ofview; thereby the focus has been on coordinatingthe operation of protection devices.

The study has not aimed for any new protectiontechniques or for protection device development.Instead, methodological development and practi-cal guidelines have been the desired output. Somemethods have been developed for achieving theseobjectives. The protection planning procedureseeks to present the studies needed for connectingnew DG unit with the public power system.(Mäki, 2006c) The sequence of the studies is ofgreat importance. Other methods such as graphi-cal protection requirement graph (Mäki, 2007b)and NIS fault calculation extension method(Mäki, 2006d) have been designed to assist theprocedure. More general development ideas andrequirements for NIS to better support the DGplanning process have also been ideated. (Mäki,2006e) Together, these methods and ideas form aprotection planning entity that might be used as afunctionality of NIS.

11

The typical feeder protection problems related toDG can be divided in sensitivity and selectivityproblems. The sensitivity of feeder protectionmay be harmed due to blinding effect caused bythe presence of DG. When located between thefeeder relay and the fault, DG can significantlydecrease the fault current measured by the feederrelay. This is due to normal fault current distribu-tion in the network. (Mäki, 2005a) Operation ofrelay can be delayed or totally blocked. As theDG is also likely to increase fault levels in the net-work, the situation can be problematic. Selectiv-ity problems relate usually to faults occurringoutside the feeder the DG unit is connected to. Inthese cases it is possible, that the upstream faultcurrent contribution of DG trips the feeder relayalthough there is no need for this. The direction offault current is not sensed in many cases, thus en-abling this sympathetic tripping. Selectivity ofthe power system is also harmed when the DGunit itself becomes tripped due to faults on adja-cent feeder. So far, this is not considered a greatproblem for the network, but as the contributionof DG becomes more important system-wide,these trippings can be problematic. One of themost important observations made in the studiesis the contradiction of the actions required byblinding and sympathetic tripping. (Mäki,2004a), (Mäki, 2005a), (Mäki, 2005b), (Mäki,2005c) Other potential problems relate to opera-tion of DG protection during reclosings andislandings. The DG unit must become discon-nected during these events. A failing reclosing re-sults in evident power quality impacts as a longerinterruption is needed. Islanding results also inquality problems but especially in safety hazardsand should thereby become always tripped. Un-fortunately there is no detection technique avail-able for the worst-case islanding. (Mäki, 2007c)However, developments in detection techniqueshave made sustained islandings far more excep-tional situations. (Mäki, 2006f)

DG and earth faults

The problematic impact of distributed generationon system earth fault protection is caused by itsability to sustain voltage momentarily in an iso-lated feeder after the tripping of the feederbreaker. If the generator is connected directly to

the network its ability to sustain the voltage dur-ing isolated operation remains short because thesupply of the reactive power to the generator willbe prevented but the increase of the duration ofearth fault current must be taken into accountwhen the touch voltage regulations are consid-ered. The directional earth fault protection of MVfeeders is normally based on measurements ofzero sequence voltage and zero sequence current.Due to the vector groups of the unit generatortransformer the zero sequence quantities, voltageor current generated by an earth fault of the MVsystem cannot be indicated on the low voltageside of a transformer (generator side). The earthfault protection of the distributed generator is of-ten based only on loss-of-mains protection. Withlarger hydro power generators a separate neutralvoltage measurement on the high voltage side canbe used to indicate an earth fault. Applying theautoreclosings with MV feeder including distrib-uted generators increases from before the needfor rapid and reliable operation of loss-of-mainsprotection so that production unit can be reliablydisconnected before the autoreclosing and the outof phase connection can be avoided. (Nikander,2007a), (Mäki, 2007d)

Ring operation of distribution network

The ring operation mode presents new possibili-ties in connecting DG to the network. This is es-pecially possible in weak rural networks. Thering operation of the distribution network will di-vide power flows to the feeders more evenly thanradial operation, losses will be minimized andvoltage rise due to DG can be limited. The volt-age profile of ring operated feeders is also moreflat than profile of radial feeders. These proper-ties will result to better utilization of distributionsystem than radial operation (Repo, 2004b).Using the ring operation mode may, however,complicate the protection issues. There may besome problems concerning the operation of pro-tection. Thermal limits of network componentsmay also become inadequate as the fault levels inthe network increase when applying the ring op-eration mode.

Typical case of using the ring operation mode inthe distribution network is closing the open con-

12

nection between two feeders with a remote con-trolled recloser. A ring is thus formed. Normallyit is reasonable to feed the ring from one substa-tion only. When the fault occurs it is possible toopen the ring connection at first. After this, thefault is located on one feeder only and the protec-tion can function as in radial use. The thermallimits of components may become a barrier forusing this kind of protection as the opening of thering takes some time and hence prolongs the du-ration of fault. The opening can be done by usinga recloser placed in the network between thefeeders. If one of the feeders is equipped withsectionalizing reclosers, they can be used to openthe ring as well.

The opening of the ring is simply based on themagnitude of the fault current flowing throughthe recloser. The direction of the current is nor-mally not recognized by the recloser. Thus thetripping limit must be set low enough to be able todetect all possible faults also far from therecloser. On the other hand, during a fault the cur-rent is typically big enough to easily be differenti-ated from the maximum current of a normal usesituation. It is worth noting that an unnecessarymomentary opening of ring connection usuallydoes not cause problems in the network. Thechanges in voltage of the network may, however,cause some problems with certain genera-tion-consumption combinations. Some switch-ing transients may appear, too. DG itself compli-cates the implementation of protection. TogetherDG and ring operation could lead to relativelydifficult protection systems. With small-scaleproduction suitable protection settings can usu-ally be found, but the problems will multiply asthe installed power or amount of plants is in-creased. (Mäki, 2004b)

2.4.3 Island operation of DG units

The penetration of DG and the consideration ofdistribution network reliability have increasedthe interest for intended island operation of distri-bution system. The most important challenge ofisland operation is probably the control of voltageand frequency in island system i.e. managementof active and reactive power balance. The con-trollability and control systems of DG units have

great influence on stability of island. Anotherchallenge is the co-ordination of protection sys-tem in the network and production units so thatsafety will be guaranteed and island operationand smooth transition to it will be possible whennormal variation range of voltage and frequencyare relatively wide in island operation. There isalso needed a clear classification of intended andunintended island operations from protectionpoint of view, because unintended island opera-tion must be avoided in all situations.

The electricity distribution system of Hailuoto-island has been used as a case system which in-cludes four wind turbines equipped with directlyconnected asynchronous generators and standbydiesel engines capable of feeding the maximumload demand alone. Normally wind turbines aredisconnected in case of island operation. Thestudy was performed to find out if wind turbinesmay contribute island operation and thus mini-mize the use and cost of diesel engines. Accord-ing to PSCAD-simulations the island operation isstable in maximum loading situation when allwind turbines are connected. However during theminimum loading condition none of wind tur-bines may be connected due to over-frequency ofsystem. Frequency limits of wind turbines are rel-atively tight from island operation point of view.Sudden disconnection of wind turbine due to ex-ceeding the over-frequency limit does not endan-ger the operation of island system becauseover-frequency will be avoided and the frequencycontrol of diesel engines will contribute for possi-ble under-frequency situation. (Mäki, 2007d).

Literature survey of island operation possibilitiesat electricity distribution network clarifies re-quirements of stable island operation (Repo,2005b). The study describes existing require-ments and properties of island operation in Fin-land. These islands are traditionally created atsub-transmission level and they are based on syn-chronous machines which have been equippedwith suitable controllers. The report brings alsointo attention new distribution network relatedchallenges which are: utilization of DG and loadcontrol in island operation, formation and brak-ing of island, and network protection in island op-eration.

13

2.4.4 Measurement services

Measurement services were demonstrated bymeasuring, collecting and analysing power qual-ity data of Hailuoto electricity distribution sys-tem including wind power units. Measurementswere arranged vertically along the radial net-work. Measurements were done with remotelyreadable power quality guards of MX Electrix Oyand PQNet measurement collection and storingsystem of PowerQ Oy. Recorded 10 min averagemeasurements were active and reactive power,voltage level, current, voltage harmonics, voltageunbalances and flicker indices. Also voltage dipevents were recorded. According to measure-ments and analysis results the effect of windpower units to distribution system power qualityis not such remarkable that there would be neededseparate measurement system for that purposealone. The monitoring of distribution systempower quality should be developed more like oneintegrated measurement system which shouldtake into consideration among other measure-ment tasks the effects of DG units on distributionsystem power quality. (Antila, 2003)

The effect of DG units on power quality is de-pendent on unit type and network characteristicsitself and thus the effect on power quality may bepositive or negative depending on a case. Themost important power quality issues in DG unitinterconnection are: voltage level should bewithin acceptable planning limits, voltagechanges due to connection and disconnection ofDG unit into network should not be too large inproposition to frequency of occurrence, and fastvoltage changes (flicker) may not appear toolarge extend. These quantities are also the mostimportant quantities in the power quality moni-toring from the DG units point of view. Small DGunits connected into low voltage network wouldprobable be considered widely enough if powerquality monitoring is included in advancedAMR-meters and temporary measurements aredone at distribution transformer stations. Largeunits might require more extensive measurementsystem due to system wide effects of these units.(Bastman, 2007)

Another measurement case was realized in windpark of Olos fjeld. These measurements were re-

alized in order to collect disturbance data fromdistribution substation and from wind park con-nection point for the verification of simulationmodels and the development of fault indicationand location algorithms. (Hänninen, 2005),(Uski, 2006)

One detail of the research of power quality mea-surement was the development of calculationtool for flicker indices. The tool is based on stan-dard IEC 61000-4-15 and it is fast in order to beable to implement it in power quality guardshaving limited computation capability. (Kopo-nen, 2003)

2.5 Network connection

The network connection from the point of view ofpower plant technology was studied in the re-search projects of Lappeenranta University ofTechnology. The main focuses were the use of fre-quency converters for network interfacing, and thedesign of the permanent magnet generators eitherused with frequency converters or directly con-nected to electricity network. In the VELKO, part1 project, the frequency converter driven generat-ing hydro electric plant concept was designed andit was piloted in Tirva. The results were collectedto final report (Lindh, 2005). As a result of re-search, the possibilities and restrictions of suchconcept were shown. The first hydro plants usingthe concept are already in production use.

2.5.1 Permanent magnet generatorsdirectly connected to grid

The research concentrated in the definition ofproper machine parameters that are required forthe direct network connection of permanent mag-net synchronous generators (motors) and, on theother hand, the definition of the parameters thatare required when these machines are used as apart of a power plant.

Permanent magnet synchronous generators(PMSG) are often connected to the grid via fre-quency converters, such as voltage source lineconverters. All the power produced by the gen-erator is fed through the converter. The price ofthe converter can constitute a large part of thecosts of a generating set. Some of the permanent

14

magnet synchronous generators with convertersand traditional separately excited synchronousgenerators could be replaced by direct-on-line(DOL) non-controlled permanent magnet syn-chronous generators. Small directly network-connected generators are likely to have largemarkets especially in the area of distributedelectric energy generation. Typical prime mov-ers could be, for example, wind turbines and wa-ter turbines. The benefits would be a lower priceof the generating set and the robustness and easyuse of the system.

The basic concept is simple and competitive.There is neither a need for an excitation systemnor for a frequency converter, only coarse syn-chronization equipment is needed for the phaseangle difference and the frequency. Despite theconstant excitation, the generator is capable ofproducing enough asynchronous acceleratingtorque by the damper winding and pull-in torqueto synchronize by itself.

The hydroelectric plant drives are low speed ap-plications. At low speeds in direct network appli-cations lots of poles are needed. The magnetisinginductance Lm of a rotational field machine is in-versely proportional to the square of the pole pairnumber p.

(1)

In induction generators, this causes a low powerfactor for low speed machines. In synchronousmachines, a low synchronous inductance, how-ever, is a benefit because the peak torque of themachine is inversely proportional to the synchro-nous inductance Ls which consists of the magnet-ising inductance and the stator leakage Lsσ

(2)

We see that a synchronous machine is more suit-able for low-speed applications than an asyn-chronous machine. In particular, it is easy to con-struct low-rotational-speed permanent magnetsynchronous generators having excellent electro-magnetic properties, especially compared to in-duction generators. In many cases, the prices of

such machines are lower than those of separatelyexcited synchronous generators, especially whengenerators are submerged. Often, the PM genera-tors are controlled by four-quadrant frequencyconverters. In these applications, the networkside inverter can feed the network with any powerfactor in the limits of its current handling capac-ity. On the other hand, when a variable rotationalspeed of the turbine is not required, the frequencyconverter is not needed if a PM generator is capa-ble to a direct electrical network connection. PMgenerators cannot, however, be used if the gener-ator plant is so large that the network stability hasto be supported for example with a power systemstabilizer (PSS). This limits the size of a genera-tor to less than 50 MW class in many countries.The main requirement of the PM generator with adirect network connection is the adequate damp-ing property so that stabile operation is guaran-teed. The PM generator design and dampingproperties have been studied recently e.g. by Kin-nunen et al. (Kinnunen, 2006a, 2006b, 2006c).

PM machines can be designed so that they pro-duce power with a near to unity power factorwithin their whole operating range. In this pro-ject, A) the possibility to construct such a genera-tor was discussed, and guidelines for the designof the main parameters of this kind of a machinewere proposed (Lindh, 2007), (Kinnunen, 2006a)and B) prototype generators for direct networkconnection were designed.

The following rules and restrictions are affectingthe design:a. If the generator is synchronized with no phase

error, the starting current is affected by thesubtransient inductance of the machine andthe induced back EMF.

b. The voltage-level fluctuation during synchro-nization is restricted in the EU primarily by theEN 50160 and secondarily by the standardsand engineering recommendations that nor-mally restrict the voltage fluctuation at theconnection point during synchronization to3–5 %. Also the synchronization terms can de-termine the voltage error between the net andgenerator poles for example to less than 10 %according to the VDN guidelines. This re-stricts the maximum induced back-EMF of apermanent magnet generator ePM to 1.1.

15

Lpm ≅1

2

TL

L L Ls

s m smax ,≅ = +1

σ

c. Magnetization of the machine cannot bechanged at different loads. The stator voltageof a generator is connected to the electricalnetwork voltage and thereby the stator voltageshould be us = 1 p.u. If the ePM is designed tothe value of 1.p.u., the minimum starting cur-rent is obtained and a light load power factor ofabout unity is achieved. However, the powerfactor of the loaded generator then decreaseswith the load. Therefore, ePM may be designedto greater values than 1 p.u. to achieve a highpower factor also with a full-loaded generator.Thus the power factor can remain high enoughto meet the recommendations and network con-nection rules of network companies (usuallythe power factor should exceed the value of0.95–0.97). In this case, a capacitor bank par-allel to an induction generator can be avoided.

d. The minimum continuous short circuit currentis required usually when the generator is usedislanded. This is due to the fact that generatormust give an adequate current for the over-cur-rent and possibly touch-voltage protection.Therefore, twice or three times the nominalcurrent may be required during a sustainedshort circuit. However, when used parallel to adistribution network, no special short circuitcurrent capacity is required.

e. The pull-out torque of the generator has to beabove the nominal torque to guarantee the syn-chronous operation during the short time vari-ation of the torque of the prime mover or turbu-lence of primary energy source. For the hydropower generator, the pull-out torque require-ment is often 1.2–1.3 times the nominaltorque.

f. Customer requirements. The network codes ofdistribution companies may set requirementsthat affect the design principles and sizing ofthe generator. For example thermal limits indesign are not the key issue if large overloadcapacity is required during voltage sags etc.The customer often requires very high effi-ciency. These factors usually lead to slightoversizing of the machine. The p.u. value forimpedance is given

(3)

Hence, if the nominal current IN is reduced be-cause of the oversizing of the generator, the p.u.values are scaled, and this should be consideredalways when using the p.u. equations that are thebasis for the design.

Both the voltages as well as the synchronous in-ductance Ld have an influence on the power avail-able. The designer may select the pole number (ina small scale, because for example in the case ofthe hydro power plant, the hydraulic propertiessuch as flow and the head height set limits to therotational speed range) and other machine di-mensions to gain a desired inductance. Ignoringthe effects of the stator resistance and possible sa-liency, the torque developed by a synchronousmachine without saliency can be solved using theload angle equation

(4)

where m is the number of phases, U is the supplyphase voltage, EPM is the induced back-EMF, a

the load angle, s the synchronous electrical an-gular velocity and p the pole pair number. If con-nected to the network, the supply phase voltage isus equal to 1 p.u. The rated speed would be 1 p.u.,and the maximum achievable power can be writ-ten as

(p.u.). (5)

The equations above and the equations describ-ing the transient phenomena of generators the pa-rameters were varied and their effect on the ruleslisted above were analysed and compared to theFEM calculations made by Flux2D® software.The following results were presented in a paperby Lindh (2007). In a hydro-power application,where a turbine with adjustable blades is used forpower control, the useful adjustment range variesfrom 30–100 %. It was concluded that the powerfactor remains over 0.95 for quite wide a range sothat if ePM is 1, the d-axis synchronous inductancemust be less than approx. 0.3 and if epm is 1.05 theld should be 0.3–0.75. If ePM is 1.1, the ld shouldbe in the range of 0.5–0.9. If the short-circuit cur-rent feeding capacity is not required, then in orderto limit the starting current ld should be as large as

16

ZU

IBN

N

=

Tmp E U

Ls

PM

da= ( )

ωδ2 sin

Pm E U

L

e

ls

PM

d

PM

dmax = ∞

ω

possible and the pull-out torque requirementshould set the upper limit for ld. Setting the re-quired pull-out torque to 1.3, the ld should be lessthan 0.77–0.92 (epm=1–1.1). If the generator isoversized, to increase the efficiency, the suitableinductance values (p.u.) are increased.

2.5.2 Parameter design andprototype generators

Axial flux permanent magnet generatorprototype for direct network connection

The general guidelines and recommendationspresented above were applied in the analysis. Byanalyzing the results produced by the simulationmodel for the permanent magnet machine, theguidelines for efficient damper winding parame-ters for directly network-connected permanentmagnet generators were determined. The simula-tion model was used to simulate grid connections

and load transients. The effects of the electricalparameters, especially the damper winding pa-rameters, on the generator performance weresimulated. The damper winding parameters werecalculated by the finite element method (FEM).Both two-dimensional and three-dimensionalmodelling were carried out. Analytic equationsgoverning the phenomena are very complex be-cause of the 3-dimensional behaviour of the eddycurrents. Therefore the three-dimensional finiteelement analysis (3D FEA) is preferred in theanalysis of the damper winding constructions.

The results from the simulation model and the fi-nite element analysis were compared with practi-cal measurements.

The dimensioning of the damper winding param-eters is case specific. The damper winding shouldbe dimensioned based on the moment of inertia ofthe generating set. It is shown that the damper

17

Figure 2.1. Permanent magnet synchronous generator phasor diagram in a tran-sient state. In the transient state, the rotor speed or load angle are not correct andthe generator tries to reach equilibrium. The change in the flux flowing through thedamper windings induces damper winding currents that try to keep the flux con-stant. The rotor is rotating counter-clockwise.

winding has optimal values to reach synchronousoperation at the shortest period of time after tran-sient operation. With optimal dimensioning, theinterferences in the grid are minimized.

Permanent magnet synchronous generators havetwo main requirements in directly network-con-nected operation. First, the generator must be ca-pable of synchronization after grid connectionand second, the generator has to maintain syn-chronous running during electric load variationand other transients. The generator characteris-tics vary depending on the strength of the electricnetwork. Therefore, both infinite bus networkand isolated microgrid operations were pro-cessed in the analysis.

In a DOL PMSG, careful design of the damperwinding is needed. The price of the machine mustalso remain competitive with traditional genera-

tors. This may limit the practical applications ofsome damper winding structures with expensivematerials. Modern Neo magnets have a relativelylow resistivity, in the range of 150−250×10-8 Ωm,and hence the eddy currents in the permanentmagnets produce losses and increase the temper-ature of the permanent magnets. This must betaken into account particularly in rotor construc-tions with a poor or average thermal conductivity.If the cooling of the rotor is not sufficient, perma-nent demagnetization of the magnets can takeplace. The demagnetization is far easier if thetemperature of the magnets rises.

The prototype AFPMSG1 is a one-rotor-twostator construction with an aluminium-frame ro-tor, while the AFPMSG2 is a single-sided con-struction with a cast-iron rotor yoke. Both the ma-chines have short-pitched stator windings withW/ p = 5/6 and q = 2.

18

Figure 2.2. DOL PMSG at grid connection. The successfulness of the synchroniza-tion depends on the speed error and the phase shift error.

19

Figure 2.4. Geometry of the 5.6 kVA and 18.3kVA prototype permanent magnet synchro-nous generators. a) The generator AFPMSG1 has four magnetic poles. It consists of twostators and one rotor between the stators. The body of the rotor is made of aluminium.The generator is an axial flux machine. The permanent magnets are surrounded by install-ing jig and surface plate, both made of aluminium. b) The geometry of the prototype per-manent magnet synchronous generator AFPMSG2. The generator has 16 magnetic poles.It consists of one stator and one rotor. The body of the rotor is made of cast iron. The gen-erator is an axial flux machine. The rotor has the installation jig and the surface plate madeof aluminium.

Figure 2.3. Grid connection of the AFPMSG1. The generator is connected to the gridwith a large phase difference Δ = +137° at time t = 0.739. The initial speed before thegrid connection is 0.96 pu. a) The phase difference between the grid and the back-EMF ofthe generator. b) Transient phase current in the grid connection. c) The shaft torque duringsynchronization. d) The speed of the generator. The generator is still able to synchronize.

Radial flux permanent magnet generatorprototype for direct network connection

The aim was to design and manufacture 55 kW 8pole permanent magnet synchronous generatorscapable for a direct network connection. Thetwo different types of rotor constructions withdifferent damping properties were investigated(Figure 2.6).

In this research, the possibility to simulate the tra-ditional no-load and short-circuit tests usingFEM-calculations was tested. The dynamic stated- and q-axis parameters were evaluated by FEMcalculations and measurements. The results ofthe short-circuit calculation are shown in Figure2.7. The FEM-calculated and the measured re-sults have quite a good correspondence.

The prototype machines were tested in motor lab-oratory of LUT. According to the test results, themachines are suitable for the direct network con-

20

Figure 2.5. Construction of the damperwinding.

a) b)

Figure 2.6. Rotor constructions of the permanent magnet generatormade of a) 0.5 mm thick electrical steel and b) 10 mm iron sheets.

Rotor type Advantages Disadvantages

Electrical 0.5 mm steel Better efficiency becausethe iron losses are lowerin laminated steel.

Damper windings required.

Iron sheet 10 mm Cheap, robust and simple tomanufacture.

Lower efficiency because ofthe higher iron losses.

Weaker and inexact Dampingproperties

Table 2.1. The advantages and disadvantages of these rotors are presented below.

nection. This gives one a possibility to use suchPM-machines as generators. The concept has theadvantage of the good performance of traditionalexternally excited synchronous machines and atthe same time benefits of a very simple construc-tion. The know-how of such machines has re-markably increased giving the industry the possi-bility to utilize new information in a large varietyof applications.

2.6 Inverters and convertersin network connection

Traditionally, distributed generation plants havebeen relatively large (typically at least hundredsof kilowatts), and generators have been con-nected directly to the electricity network. Theconnection codes of authorities and distributioncompanies are fit to these conditions. Now, how-ever, two ongoing changes affect the area: Moreand more power plants use frequency convertersbetween the generator and the electricity net-work, and secondly, more and more micro powerplants will be installed parallel to the network.Micro generation mainly aims to reduce theamount of purchased energy of the electricityend-user, not to feed the distribution network.

Frequency converters, when used in electricitynetwork connection, set several issues under con-sideration: for example, how is the quality of

electricity affected, how should the connectionand disconnection be done, how are the anti-islanding protection and network fault protectionaffected, and how the quality measures of elec-tricity should be defined, what would be the ap-propriate levels and how they should be measuredin the commissioning phase.

In addition to the questions set by a frequencyconverter connection, the micro generator setnew challenges to the network connection. Fromthe economic point of view, the constructionshould be simple when the value of produced en-ergy is low, or even negative for an electricitycompany. The situation at present is such that theconnection rules and the power plants are treatedequally in the commissioning phase regardless ofthe size of the plant. When the electricity networkoperation and safety issues are concerned, this isrational. On the other hand, however, some of theelectricity quality measures can become ques-tionable. The international standardization (EN50438) aims to facilitate the connection proce-dures by the standardization of the power qualityparameters and the interface protection and bythe use of type testing of these, so that the com-missioning would be as simple as possible. Thisis important for two reasons: The installers of mi-cro generation plants have often little or no exper-tise on network connection, and if there are alarge number of micro generation plants, it is aburden to a network company to have individual

21

-600

-400

-200

0

200

400

600

800

1 000

1 200

1 400

0 0.05 0.1 0.15 0.2 0.25

Time [ s ]

Phas

e cu

rren

t [A]

Y value (Ampere)Sovite vaimennuskäämikoneelle

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5

-400

-200

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800Mitattu oikosulkuvirtaEksponenttisovite mitatulle virralle

a) b)

Figure 2.7. a) FEM-calculated and b) measured phase current during a 3-phase short-circuit test.

concern of each plant. In addition, the installersof micro generating units should be treatedequally at least at the national level.

In this project, the technical aspects of frequencyconverter network connection have been studied,yet the conclusions and proposals for acts to betaken have been left to future projects. Details ofthe subjects will be given in final report ofVELKO, part 2 project.

2.6.1 Frequency converter in thecontrol of a small-scalehydropower plant

Frequency converters can be utilized in a hydro-power plant as a control method alternative to us-ing a variable blade angle turbine or a bank offixed blade angle turbines that can be utilized indifferent combinations to have the head change aslittle as possible (two-point control). The overalleconomical feasibility of each of the options isdetermined by their investment and operating(maintenance) costs, and efficiency. The feasibil-

ity of each of the control methods (variable bladeangle, two-point control, frequency converter)was studied. The usage of the two-point controland the frequency converter in keeping the headconstant are illustrated in Fig. 2.8 and Fig. 2.9.Furthermore, the torque characteristics of a fixed-blade propeller turbine as a function of rotationspeed were measured.

The frequency converter can be used to flexiblycontrol the output power and thus the head of thepower plant. The produced energy is meteredhourly, and the producer is often credited basedon an hourly-changing price. The price can be,for example, the hourly Nordpool spot price (orsome fraction of it). This information is publiclyavailable on the Nordpool WWW site. Typically,in a small-scale hydroelectric plant, the powerproduction has a significant impact on the head ofthe pool (pool volume is small) and vice versa.Therefore, it is possible to optimize the powerproduction so that, as a basic principle, the wateris stored in the reservoir when the price is low,and released through the turbines when the price

22

Figure 2.8. Two-point control. The head is kept as constant as possible bythe use of two generator combinations providing 100 kW and 120 kW.

23

Figure 2.9. Head control using a frequency converter. The power can be keptat constant 110 kW. Compared to the two-point control (Fig. 2.8), switching ofgenerator circuit breakers is eliminated, and the head is not fluctuating.

Figure 2.10. Generator utilization with optimization based on the hourly price,an example.

is higher. In the project, a simulation model of thebehavior of the pool was created, and the effectsof different optimization methods were com-pared. An example of an optimizer-generatedpower production sequence during a 24 hourstime is presented in Fig. 2.10. In the example, theinflow was set to 50 % of the maximum combinedflow of the generators. The income using the opti-mized combination was increased with 4 % com-pared to income using constant-head control. Thedifference is remarkable for the power plantowner and thus encourages to produce more en-ergy when the demand is high.

2.7 Power system impacts ofwind power – IEAcollaboration

Hannele Holttinen andBettina Lemström, VTT

International collaboration has been active inIEA WIND (International Energy Agency, Im-plementing Agreement on Wind energy). VTThas participated in the Executive Committee ofthe IEA WIND, as well as several research tasksrelated to power system impacts of wind power:Task 21 (Dynamic Models of Wind Farms forPower System Studies), Task 24 (Integration ofWind and Hydro power systems) and Task 25 (De-sign and operation of power systems with largeamounts of wind power, VTT as coordinator).

The Executive Committee of IEA R&D WINDmeets twice a year with a follow-up of wind en-ergy development and R&D in all participatingcountries (20). VTT has gathered and reportedthe information of Finland and disseminated theinformation from abroad in Finland.

Wind power will introduce more uncertainty inoperating a power system; it is variable and partlyunpredictable. To meet this challenge, there willbe need for more flexibility in the power system.How much extra flexibility is needed depends onthe one hand on how much wind power there isand on the other hand how much flexibility existsin the power system. The existing targets for windpower anticipate a quite high penetration of windpower in many countries. It is technically possi-

ble to integrate very large amounts of wind capac-ity in power systems, the limits arising from howmuch can be integrated at socially and economi-cally acceptable costs.

2.7.1 Task 21 Dynamic models ofwind farms for power systemstudies

Large wind power installations may have a signi-ficant impact on power system stability that mustbe assessed prior to installation. Such assessmentis commonly conducted using commerciallyavailable software packages for simulation andanalysis of power systems. These packages nor-mally facilitate a set of well-developed models ofconventional components such as fossil-fuel-fired power stations and transmission networkcomponents. However, models of wind turbinesor wind farms represent new features with, inmany cases, unknown accuracy. This at best leadsto uncertainty in the market, and at worst it leadsto an erroneous design jeopardising the powersystem stability. The challenge is twofold. First,the technology in modern wind farms is fairlycomplex, and the dynamic behaviour of thesewind farms may differ significantly depending onthe wind turbine type and manufacturer-specifictechnical solutions. Second, model validationmust be transparent and adequate for providingconfidence. Task 21 under the IEA Wind Agree-ment was formed for a coordinated effort aimingto enhance progress in 2002 with SINTEF En-ergy Research of Norway as the Operating Agent.

The overall objective of Task 21 is to assist theplanning and design of wind farms by facilitatinga coordinated effort to develop wind farm modelssuitable for use in combination with softwarepackages for simulation and analysis of powersystem stability. The Task established an interna-tional forum for exchanging knowledge and ex-perience within the field of wind farm modellingfor power system studies. Wind farm modelswere developed by the individual participants ofthe task, and description and validation of themodels were coordinated by the task, whichhelped provide state-of-the-art models and pin-point key issues for further development. A com-mon database was set-up for benchmark testing

24

of wind turbine and wind farm models as an aidfor securing good-quality models.

Task 21 had participants from nine countries(Denmark, Finland, Ireland, the Netherlands,Norway, Portugal, Sweden, the United Kingdom,and the United States). In these countries, re-search institutes and universities carrying outwork to develop and test wind farm models. Theyalso perform grid studies in cooperation withwind turbine manufacturers and electric utilities.In total, participants of the task are expected tocontribute more than 20 person-years of work ef-fort. Cooperation within the task comes fromsharing measurement data, model descriptions,and discussions at meetings. A total of eight taskmeetings were arranged. The task was the first topresent a systematic comparison of wind genera-tion models against measurements. The test re-sults give a clear indication of accuracy and us-ability of the models tested, and pin-point theneed for both model development and testing.

Model developments are still ongoing among par-ticipants. They include both fixed- and variable-speed technologies and use various softwaretools (Matlab/ Simulink, PSS/E, SIMPOW,DIgSILENT and EMTDC). The database con-tains measurements mainly from fixedspeedwind turbines, but also a small collection of mea-surements from variable speed wind turbines isincluded. A method for benchmark testing ofmodels has been established by the task, and se-lected models developed by the task participantshave been tested. The tests include both valida-tion against measurements and model-to- modelcomparisons. They consider dynamic operationduring normal, fault-free conditions and responseto voltage dips. In total, more than 10 modelshave been tested, including models of bothfixed-speed and variable-speed wind turbines. Atopic of high interest is the ability of wind tur-bines to ride through temporary grid faults. Ifthey can ride through faults they will contribute togrid stability. Detailed numerical models may beused to assess such abilities, but these modelsmust be validated against measurements to pro-vide confidence. A proposal emerging as a spin-off from Task 21 is to update IEC 61400-21(Measurements and assessment of power quality

characteristics of grid connected wind turbines,ed. 1, 2001) to specify requirements for such test-ing. This work will continue in 2007.

National project

Participation in the Nordic Energy Research pro-ject: Large scale integration of wind energy intothe Nordic Grid. 2003–2006.

Additional information about Task 21 can be foundon the Internet at http://www.energy.sintef.no/wind/IEA.asp.

2.7.2 Task 24 Integrating wind andhydro power systems

Hydro generators typically have very quickstart-up and response times and may have flexi-bility in water-release timing. Therefore, hydrogenerators could be ideal for balancing wind en-ergy fluctuations or for energy storage and re-delivery. Studying grid integration of wind en-ergy, particularly on grids with hydropower re-sources, will help system operators understandthe potential for integrating wind and hydro-power resources. Task 24 under the IEA WindAgreement was formed for a coordinated effortaiming to enhance progress in 2004 with NREL,US as the Operating Agent (2004–2008).

The task has established an international forumfor exchange of knowledge, ideas, and experi-ences related to the integration of wind andhydropower technologies within electricity sup-ply systems. In addition, the IEA Wind Task 24works in cooperation with the IEA HydropowerImplementing Agreement, which is investigatingintegration of hydropower and wind through acomplementary set of investigations. The goal isto identify technically and economically feasiblesystem configurations for integrating wind andhydropower, including the effects of marketstructure on wind-hydro system economics withthe intention of identifying the most effectivemarket structures. The outcome will be a consis-tent method of studying the technical and eco-nomic feasibility of integrating wind and hydro-power systems, the ancillary services required bywind energy, as well as an understanding of the

25

costs and benefits of and the barriers and opportu-nities to integrating wind and hydropower sys-tems.

Participants of the task are contributing a wide va-riety of case studies, with some representing smallsystems (<1,000 MW peak load), such as GrantCounty Public Utility in Washington State, USA,to large systems (>35,000 MW peak load) such asHydro Quebec. There is also a wide variety ofhydropower facilities, with some being essentiallyrun-of-the-river with little storage capacity (a dayor two), to very large hydro plants with multi-yearstorage capability. This diversity should allow fora comprehensive look at the grid integration sce-narios (Australia, Canada, Finland, Norway,Sweden, Switzerland and United States).

The case studies are divided in four categories:1) grid integration, 2) hydrologic impact, 3) mar-ket and economics, and 4) simplified modellingof wind-hydro integration potential. The wide va-riety of hydropower installations, reservoirs, op-erating constraints, and hydrologic conditionscombined with the diverse characteristics of thenumerous electrical grids (balancing areas) pro-vide many possible solutions to issues that arise.Depending on the relative capacities of the windand hydropower facilities, integration may neces-sitate changes in the way hydropower facilitiesoperate in order to provide balancing or energystorage. These changes may affect operation,maintenance, revenue, water storage, and theability of the hydro facility to meet its primarypurposes. Beyond these potential changes, inte-gration with wind may provide benefits to the hy-dro system related to water storage or compliancewith environmental regulations (e.g., fish pas-sage) and create new economic opportunities.Economic feasibility of wind and hydro integra-tion project will depend on the type of electricitymarket considered. Addressing economic feasi-bility in the electricity market will provide insightinto which market types are practical for wind-hydro integration, as well as identify the key fac-tors driving the economics. Simplified methodsfor approximating the amount of wind power thatcan be physically or economically integratedwith existing hydropower generation should bedevised based on the characteristics of the local

transmission control area loads, hydropower fa-cilities, and the wind power resource. The analy-sis methods should include only the most influen-tial operational constraints for hydro and electricreliability concerns. The goal is to develop a tech-nique to approximate the potential for integratingwind and hydropower without the need to con-duct an in-depth study.

The Finnish national project in DENSY pro-gramme has studied two case studies. Simula-tions with model WILMAR with hourly timesteps has been used to study the Nordic electricitymarket with large amounts of wind power(Kiviluoma and Holttinen, 2006). Analyses of asingle producer with limited amount of hydropower show that adding wind power as distrib-uted wind farms along the West coast of Finlandcan be handled cost effectively either by the spotand regulation market or by the hydro and ther-mal production units, up to same capacity of windpower as the capacity of hydro power (Holttinenet al, 2007).

By the end of 2007, five meetings of the Task par-ticipants had been held, reporting progress on allcase studies. Final report is due in late 2008. Ad-ditional information about Task 24 can be foundon the Internet at http://www.ieawind.org.

2.7.3 Task 25 Design and operationof power systems with largeamounts of wind power

In recent years, several reports have been pub-lished in many countries investigating the powersystem impacts of wind power. However, the re-sults on the costs of integration differ substan-tially and comparisons are difficult to make dueto using different methodology, data and tools, aswell as terminology and metrics in representingthe results. Estimating the cost of impacts can betoo conservative for example due to lack of suffi-cient data. An in-depth review of the studies isneeded to draw any conclusions on the range ofintegration costs for wind power. This requiresinternational collaboration. Task 25 under theIEA Wind Agreement was formed for a coordi-nated effort in 2005 with VTT Finland as the Op-

26

erating Agent, for years 2006–2008. There are 11participating countries (Denmark, Finland, Ger-many, Ireland, Norway, Netherlands, Portugal,Spain, Sweden, UK and USA) and EWEA.

The ultimate objective is to provide informationto facilitate the highest economically feasiblewind energy penetration within electricity powersystems worldwide. Task 25 supports this goal byanalysing and further developing the methodol-ogy to assess the impact of wind power on powersystems. The Task has established an interna-tional forum for exchange of knowledge and ex-periences related to power system operation withlarge amounts of wind power. The participantscollect and share information on the experiencegained and the studies made up to and during thetask. The case studies will address different as-pects of power system operation and design: re-serve requirements, balancing and generation ef-ficiency, capacity credit of wind power, efficientuse of existing transmission capacity and require-ments for new network investments, bottlenecks,cross-border trade and system stability issues.The main emphasis is on the technical operation.Costs will be assessed when necessary as a basisfor comparison. Also technology that supportsenhanced penetration will be addressed: windfarm controls and operating procedures; dynamicline ratings; storage; demand side managementDSM etc.

The task work started with a state-of-the-art re-port collecting the knowledge and results so far.The task will end with developing guidelines onthe recommended methodologies when estimat-ing the system impacts and the costs of windpower integration. Also best practice recommen-dations will be formulated on system operationpractices and planning methodologies for highwind penetration.

By the end of 2007, five meetings have been or-ganised, mapping the on-going wind integrationprojects and the main results obtained so far.

National project of Finland has case studies onthe Nordic electricity market and the transmis-sion and stability analyses for Finland.

Additional information about Task 25 can befound on the Internet at http://www.ieawind.org

2.8 Energy storage applicationsin distributed power systemmanagement

Environmental questions, open electricity marketand the need for more reliable and efficient elec-tricity distribution are among the driving forcesfor distributed energy generation and systems.Energy storage is seen as a key technology forpromoting the wider implementation of distrib-uted energy systems. The use of energy storageswould provide a proper energy management,power quality and improve energy efficiency.

Distributed power generation is defined as asmall scale generation near the customers includ-ing renewable energy, solar and wind generation.Especially solar and wind energy productionshave been rapidly increasing. A typical feature ofthe renewable energy generation is an irregularoutput with stochastic power variations andbreaks. These variations are not usually detect-able above normal variations in supply and de-mand, but when the amount of irregularly variedpower generation exceeds the performance limitsof the local network, it can have an influence onthe power quality and system reliability. The out-put power smoothing and limitation may beneeded in a weak, low-voltage electrical grid es-pecially when uncontrollable wind power gener-ation is very high. Output power management isalso needed if the distribution grid can have anautonomous microgrid operation mode.

Output power smoothing during different typesof power variations and breaks is a typical exam-ple of the application of energy storages. Energystorages can also be a solution for different net-work management problems and can also im-prove the efficiency, flexibility and convenienceof the overall use of electrical and thermal energy,and they can also support the existing qualifyingstandards, regulations and recommendations fornetwork power quality and control (Table 2.2).

27

Generally, customers’ demands for higher powerdistribution reliability and power quality are in-creasing. Among the other power quality and reli-ability improving devices and systems, a powerquality station with energy storages is a solutionfor different power quality demands of custom-ers. Direct current distribution is an old solution,but it is nowadays considered again as a powerdistribution solution that could provide moreoverall energy-efficient and techno-economi-cally improved systems. Energy storages can beseen also an important technology to supportpeak load management and the efficiency ofoverall demand size management.

In the DENSY program, VTT has had researchprojects ENVATUULI, ENVADE and EN-VADE+, which have included various techno-economical studies, simulations and demonstra-tions of energy storage technology and its solu-tion in different power distribution tasks. Themain research areas have covered energy storagesfor the network management with wind powersystems and UPS, with power quality sys-

tems/stations, in DC distribution systems andmicrogrids; one of the research areas has alsobeen the control and improvement of the opera-tion and maintenance reliability of a weak electri-cal network. The research has been made in co-operation between universities (Helsinki Univer-sity of Technology and the University of Vaasa).The projects have been funded mainly by Tekesbut also by a number of companies (see attachedlist) and VTT.

2.8.1 Energy Storages to supportwind power and weaknetworks management

Energy storages can be used to improve windpower management especially when uncontrolla-ble wind power is interconnected to a weak net-work or into islanding capable microgrid.

Stochastic power variations are typical for thewind power and PV production. Both the real andreactive power output can include a large amount

28

Time scale Target Driving force examples Storage requirements Energy storage type

Very fast(ms)

Power qualitycontrol, smoothing

Power quality standards,regulations,recommendations

Very fast, very highcycle life, powerdemand varies

Electrostatic/electro-chemical (super)capacitors, SMES,flywheels

Fast(s)

Power qualitycontrol, smoothing

Power quality standards,regulations,recommendations

Very fast, very highcycle life, powerdemand varies

Electro-chemical (super)capacitors, SMES,flywheels

Medium fast(min)

Power qualitycontrol, smoothing

Power quality standards,regulations,recommendations

Fast, high cycle life,power demand varies

Super-capacitors,flywheels, batteries

Slow(h)

Power smoothing,management ofpeak power,breaks etc.

Power productionreliability, economicalaspects

High power, high energy,proper cycle life

Batteries,flow batteries, fuel cell+electrolysator, CAES,pumped hydro

Very slow(d, m)

Energymanagement

Power productionreliability, economicalaspects

High energy and power Batteries,flow batteries, fuel cell+electrolysator, CAES,pumped hydro

CAES (Compressed Air Energy Storage), SMES (Superconducting Magnetic Energy Storage)

Table 2.2. Energy storages in power distribution applications.

of variations at different frequencies and ampli-tudes and numerous interruptions of differentlengths mainly because of wind variations (Table2.3).

Variations and especially breaks at the networkconnection point decrease remarkably when tur-bines are connected as a wind park. Also the windturbine system design and control strategy im-pacts on the amount of output power variations.Wind turbine output power variations are nor-mally insignificant, but they can be harmful inweak networks and in microgrids capable ofislanding. Fast variations are usually only seen asthe flickering of lights, but breaks can be harmfuland costly even if power companies are obligatedin certain cases to compensate the costs. The costof power outages varies according to the con-sumer type (Table 2.4).

Table 2.4. Cost of power outages according toa consumer type.

Requirements for energy storages described inTable II are relevant also in wind power manage-ment. Combination of a fast power storage tech-nology with a slower high energy storage will

provide an ability to smooth fast energy peaks toensure power quality, and, on the other hand, tosmooth slower energy variations and managepower production interruptions. A currentlycommercially available, applicable solution is acombination of electrochemical (super/ultra) ca-pacitors and batteries. There are two basic con-cepts to connect a dual storage system (DCsources) to a wind turbine concept. In the follow-ing picture (Figure 2.11), there is a dual energystorage system connected A) to the directly gridcoupled asynchronous generator output before anetwork transformer, where the storage systemworks as a power quality station and B) into theDC link of the wind turbine network converter.

A dual storage system can be controlled with re-spect to various aspects:• Limit maximum output power (Figure 2.12, A)• Sustain minimum output power• Smooth output power (Figure 2.12, B)• Maximize profit from electricity trade• Support load management e.g. peak shaving

Financial benefits can be reached with dual stor-age system using advanced multifunctional (sys-tem performance, cost, time etc.) wind turbineoutput power control if the electricity price fol-lows the power demand and/or is sufficientlyhigh and the storage system has the same subsi-dies as the wind turbine.

Energy storages can be exploited in the control ofelectrical network and especially in the support ofa weak network operation and maintenance reli-ability and in the forming of microgrids. In con-

29

Time scale

Caused by

Very fast

f> 0.1Hz

Fast

f< 0.1Hz

Medium fast

Minutes

Slow

Hours

Very slow

Days (months)

Tower shadow effect X

Wind gusts X

Local variations of wind speed X X

Long period wind speedvariations, time of day,weather, season, maintenance

X

Table 2.3. Types of power variations or breaks in wind power production.

Consumer type Break time

2 min 1 h

Private 0.7 €/kW 6.5 €/kW

Service 1.8 €/kW 24.9 €/kW

Public 4 €/kW 30 €/kW

trolling of the maintenance reliability, the energyof the storage has to be adequate. Depending onthe target, a relatively high power is also oftenneeded, and therefore there is also a need for thecombination of high energy capacity and highpower. When a microgrid is formed due to a fault,there is a requirement for fast control and accu-racy of the network linkage unit of the energystorage.

The studies show that in the case of a mainfeeder fault, it is technically possible to shiftsmoothly to the island mode with the help of en-ergy storages. However, the most serious prob-lem is often the high cost of the energy storages.When the load is increasing in a weak electricalnetwork, the typical solution is often to rein-

force the grid, which is very expensive. In thatkind of a situation it might be economically rea-sonable to substitute or shift reinforcements anduse energy storages rather than for example to beable to run network with average power insteadof the peak power.

2.8.2 Energy storages and powerquality station

Power quality management has become a moreinteresting issue because the demand for powerquality, the amount of distributed energy and theamount of electrical components has been grow-ing. Power quality control includes for examplethe control functions for harmonics, reactivepower and voltage unbalance.

30

AC

DC

DC

DC

DC

DC

Battery

UltraCapacitor

Control

Control Control

GDC

AC

AC

DC

DC

DC

DC

DC

Ultracap

Battery

Converter

Control

Control

DC

ACASG/SG

AC

DC

DC

DC

DC

DC

Ultracap

Battery

a) b)

Figure 2.11. Schematic diagram of a dual energy storage system and A) a directly grid coupledwind power generator, B) a variable speed wind power generator.

Figure 2.12. Dual storage system in wind turbine output power management A) battery bank limitsoutput power and B) supercapacitors smooth fast variations.

Various devices, systems and concepts have beendeveloped to control power quality. Flexible ACTransmission Systems (FACTS) include devicessuch as static synchronous compensators (STAT-COM), static Var compensator (SVC) and powerfactor correction capacitors (PFCC). Energystorages used with FACTS devices can improvethe system performance. FACTS are mainly usedin high and medium voltage grids.

A new idea for the power quality management ofa low voltage distribution is a centralized powerquality station that is capable to produce differentpower quality for the groups of end-customerswith different demands. A concept of power qual-ity station includes reserve power and UPS (un-interruptible power) systems and energy stor-ages. Power quality levels can vary from the basicquality that is sufficient for ordinary single familyhouses to the uninterrupted high premium qualitypower for hospitals and other similar demandingcustomers (Figure 2.13).

The main functions of the concept include powerquality, distribution reliability and energy man-agement (Figure 2.14). The balance of the func-tions can be modified according to the demands.The concept can be placed with consumption orproduction systems. The power quality stationcan also be placed in the distribution network,which allows electrical companies to sell e.g. re-liability and power quality services.

Energy storages used with a power quality stationcan be e.g. different kinds of batteries, flywheelsand supercapacitors depending on the requiredfunctions. The capacity needed varies accordingto the functions (Figure 2.14).

The power quality station can be also seen as a mainpart of the microgrid that has autonomous functionmode. The following illustrations present differentmodes of the power quality station that consists of aseries and shunt converter and energy storages in-terconnected to the DC link of the converters.

31

Figure 2.13. Example of the centralized power quality station, power quality levels andpotential customers.

32

2

3

4

56

Interlockings

Alarms

Maintenance

Power qualitycontrol

Interconnectiondevices

Controlprogram

Datastoring

Datatransmission

Control&

protectionCondition

monitoring

Meas.Devices

Wirelessdatatr.

Energymanagement

Reliabilitycontrol

1.

technologyBasic

5) Bridging power support6) Heavy start-up support

Figure 2.14. Basic functions of a power quality station.

Figure 2.15. Power-quality station, functions and power flow directions in different cases.

According to the results of the PSCAD simula-tions the above-presented power quality stationsystem with energy storages can solve many ofthe power quality problems: 1) The shunt con-verter of PQC can compensate the microgrid cur-rent harmonics and reactive power, 2) The seriesconverter of PQC can eliminate utility grid volt-age sags and utility grid voltage imbalance and 3)Islanding and island operation is possible unin-tentionally or intentionally by the developedadaptive configuration and control system ofPQC shunt converter, and with that the instanta-neous voltage control and power balance man-agement in islanded microgrid with low har-monic distortion is possible.

Both the customers and the power companiesgain from the benefits of power quality station,such as the good power quality and high reliabil-ity. The system can also improve energy effi-ciency, and it eliminates the need of separate re-serve power systems of customers. The benefitsof power quality systems are observed world-wide, and for example similar types of powerquality stations as described above are alreadyimplemented in Japan.

2.8.3 Energy storages in directcurrent distribution systems

Direct current (DC) was earlier used in industrialand general power distribution, and for examplein Helsinki it was partly used in the power distri-bution even until the 1950s. Nowadays DC iscommonly used in long undersea high-voltagepower connections because of smaller powerlosses and costs and better power management.Medium-voltage DC links are used e.g. in off-shore wind plant connections, and both medium-and low-voltage DC distribution systems are

common in the connections of large industrialdrives and in railway and ship electrification sys-tems. Lately, DC has been considered also forgeneral medium- and low-voltage power distri-bution even for residential low-voltage powerdistribution, where it could bring more benefitsfor example because of the overall increase of DCcomponents and devices such as informationtechnology equipment and PV systems. Espe-cially DC is seen a viable solution with the dis-tributed energy system, where the DC networkinterconnection would be more convenient andefficient.

Direct current distribution could be implementedin many voltage levels having different topolo-gies (Figure 2.16). Ring networks, distributedpower generation and energy storage systemssupport distribution reliability and power qualityand make possible to build microgrids that havean islanding capability.

A DC distribution described above (Figure 2.16)could be implemented with currently existing de-vices (transformers, circuit breakers, converters,cables, protection relays) but the device selectionis very limited, and therefore further device andsystem development is needed. Specific stan-dards and implementation guidelines, espe-cially standards and rules for voltage levels, pro-tection and network interconnections would im-prove the system implementation and expeditethe product development.

Considerable benefits on power quality can beseen to be achieved with DC systems comparedwith AC systems especially when systems areprovided with energy storages. However, protec-tion, fault management and distributed DC net-work control systems would need further studies

33

Function Energy storage power Discharge time Energy storage

Power quality control 0.01 x Pload 0−1s Supercapacitors, batteries

Distribution reliability control 1 x Pload 1s −15min Batteries, flywheels etc.

Energy management 0.1 x Pload 15min−24h Batteries

Table 2.5. Estimated energy storage capacity in different functions.

and development. Advanced devices such asfault-limiting circuit-breakers and converterswith a bi-directional current control switch or ananti-parallel ETO (emitter turn-off) thyristorwould limit the short-circuit current and the faulttime and thus provide a proper fault managementsystem. The control system of a distributed DC

network with several parallel DC converters hasan important role in the load and fault manage-ment. Control method can be centralized (Figure2.17) or de-centralized. Suitable control methodsfor DC distribution can be e.g. voltage droop, av-erage current, master-slave and central limitmethods.

34

Figure 2.16. An example of direct current supply options in power distribution.

Figure 2.17. Centralized control method in rural medium voltagepower distribution.

Distributed power generation and storage sys-tems can improve the DC network energy man-agement and customer-level power quality. DCmicrogrids capable of islanding can be imple-mented at different levels of the distributed DCnetwork. Local power production and energystorages can be placed at the local power distribu-tion level and/or they can be placed on the cus-tomer’s side. Energy storages play an importantrole in power and voltage management and inpower production optimization also in DC distri-bution (Figure 2.18). Own power production andenergy storages bring new opportunities also forsmall power producers for electricity trade.

Cost comparison between AC and DC distribu-tion systems has shown that low-voltage DC dis-tribution can be more cost efficient than AC dis-tribution. Cost comparison of medium voltageAC and DC systems and the customer-level sys-tems is difficult because of the limited deviceavailability. Investment costs of medium- voltagelevel implementation can be higher with the DCsystem, yet clear benefits can be seen in the costof losses (about 1/3 of the AC system losses). Thepositive price development of converters (about-5 %/a during next 10 years) would remarkablyimprove the DC system cost efficiency and com-petitiveness compared to AC systems.

In the near future, MVDC and LVDC distributioncan be seen to be used in the power distribution ofdata centers, in-feed to city centers and in power

supply of small islands or offshore wind systems.Potential areas are also in-feeds of other urban ar-eas, such as shopping centers and large officebuilding centers, but DC might be also seen inlimited areas of a consumer-level electricity dis-tribution.

2.8.4 Supercapacitors, SUPER

At VTT there have been four research teams in-volved. These teams have developed carbon elec-trodes, conductive polymer electrodes, solid ionconducting electrolytes and liquid electrolytes.At Åbo Akademi the work has been done at Pro-cess chemistry group. This work has includedelectrochemical characterization, especiallyvoltammetric measurements. At Helsinki Uni-versity of Technology the work done in the PowerElectronics Laboratory has included a study formeasuring the impedance characteristics of asupercapacitor, a literature study of circuit topolo-gies and a Master’s Thesis. Circuits for balancingsupercapacitor systems have been implemented.

The work has included the following topics:• Carbon electrodes having very high specific

surface area (carbon powder/carbon cloth)– Improvement of electrical conductivity to

minimize losses– Advanced electrolytes

• Completely polymeric dry supercapacitor– Economic manufacturing method for

thermally stable polymer electrolyte

35

AC

DCAC-grid

AC

DCLoad

DC

DC

AC

DC

DC

AC

Energystorage

Energystorage

Energystorage

AC

Power productionoptimization

Voltage management

Energy managementpower smoothing,peak power management

DC-network

DC

ACPower

productionunit

Figure 2.18. Energy storage placement and energy management functionsin DC distribution network.

– Optimization of chemical or electrochem-ical synthesis for the production ofpolyaniline or other conductive polymer

• Power electronics for supercapacitors– Voltage balancing in series connection– Voltage stabilization during charge and

discharge– Dc-dc converter

Different activated carbon powders have beenused for processing supercapacitor electrodes.Some tests have also been done using a clothmade of activated carbon. Mechanically rela-tively strong electrodes have been made withpolymer binder. Both PVDF and PTFE havebinders have been applied. The performances ob-tained for propylene carbonate and acetonitrileorganic electrolytes have been compared. Withorganic electrolyte the measured specific capaci-tance values have been of the order of 20–40Farads per 1 gram of carbon. Beside capacitancealso series resistance, leakage current and energyefficiency have been defined.

The normal test structures having plate-like struc-ture have been prepared from almost all materialcombinations developed during the project. Select-ed materials have been applied in manufacturingcylindrical supercapacitors. This geometry wouldbe the choice also for commercial components.

Polyaniline and polyortotoluidiinin electrodeshave been synthesized electrochemically ontocarbon cloths and powders. Tests show that spe-cific capacitance can be appreciably improvedwith these materials. Specific capacitance ofabout 100 F/g has been achieved.

The synthesis process for sulfonated polyethe-retherketone (SPEEK) electrolyte film has beendeveloped. The film presents good mechanicalstability when dry. According to thermal tests theSPEEK film is more stable at high temperaturesthan PTFE based Nafion. Capacitors havingNafion electrolytes have been constructed. Inthese capacitors carbon cloth was used as elec-trodes. The capacitance values measured havebeen 34 F/g which is slightly better than the onesreported in the literature. A stack of four Nafioncapacitors has been done.

Electrochemical characterization procedures forsupercapacitors using voltammetric measurementand impedance spectroscopy have been devel-oped. Commercially available supercapacitorswere measured and the results showed the meth-ods were reliable. A voltammetric measurementmethod was tailored for characterizing the activesurface area of carbon powder and electrodes.

The charging of the double layer has been studiedwith chronoamperometric techniques, using amodel carbon powder and a model organic elec-trolyte. A charge separation within the diffuselayer has been identified and measured, as well asits relaxation. Total charges associated with thecharging of the double layer has been identifiedand quantified.

Commercially available supercapacitors havebeen tested electrically using Arbin supercapa-citor test station. Also long-term and low-temper-ature test have been performed. This device wasapplied also for measuring self-made compo-nents. The commercially available supercapa-citors and those made in the project have beencompared. The comparison shows that the spe-cific capacitance of the commercial componentshas been surpassed and internal resistance is ofthe right level but leakage current should still bedecreased.

A survey has been made of balancing circuits anddc-dc converter topology. The balancing can bedone using either passive or active solution. Pas-sive balancing is preferred since it is cost effec-tive compared to an active balancing circuit. Im-provement in manufacturing tolerances of super-capacitors is making balancing circuits obsolete.Characteristics of balancing circuits have beenresearched with a special instrument designed forthe purpose. According to the literature surveythe best topology for the dc-dc converter seems tobe a solution based on a half- bridge, although themost suitable implementation for each applica-tion must be evaluated separately.

An approach of utilizing power electronics withsupercapacitors for energy storage was presentedin an MSc thesis. In this thesis charging charac-teristics of one Maxwell PC10 supercapacitor

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have been studied. The bigger supercapacitor isthe larger current for the measurement is needed.If an estimate for the capacitance is needed itshould be measured with an electrical load sink-ing constant current according to the operatingconditions. Charging studies showed thatsupercapacitor should be regarded as a DC-com-ponent and the frequency response doesn’t havemuch significance when considering practicalapplications. Supercapacitor serves as a bypassfor high frequency ripple component and this rip-ple should be taken into consideration if calcula-tions for maximal operating temperature areneeded. Power Electronics Laboratory has pur-chased a prototype for charging and discharging asupercapacitor bank and studies with a micro-controller have been made in order to replace thevoltage control with digital one, which is now im-plemented analogically.

Two patent surveys of supercapacitor structureshave been done, one in the beginning of the pro-ject and one in 2007.

The results will be utilized by the companies thatparticipate the management group. The technol-ogy that is developed during the project can be

used in industrial manufacturing of supercapa-citors or their raw material. The experience ofsupercapacitors and power electronics obtainedfrom the project is essential when supercapa-citors are applied in energy storage systems.

2.9 Simulation and laboratoryfacilities

2.9.1 Development environment fordistributed generation.Research platformMULTIPOWER

During the last years several different independ-ent energy production and operational testing en-vironment have been realised in different re-search projects at VTT, Espoo. In Multipowerproject the existing separate testing systems wereintegrated for a complex DG testing environmentso that in the future different technical solutionsfor distributed energy systems can be tested in amultioperational environment. In the environ-ment, which was build in the project, differentparallel testing circuits can be created. for simul-taneous tests. Moreover, in the project validation

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Figure 2.19. Multipower DG testing platform at VTT.

of the control- and simulation tools with the plat-form characteristics were performed to the lim-ited extend. During the project also a service con-cept for the component and system developmentutilization with the DENSY program projectswas created.

Environment today consists of diesel generatorunits (1.6 MVA, 60 kVA), microturbine (100kVA), rotating and static loads, and optional windpower generator emulator (< 500 kVA), storage(30 kVar) and fuel cell power unit (5 kW).

Platform will be used for domestic and interna-tional needs into the product and system develop-ment as well as approval test by the Finnish re-search parties. It forms one essential element inthe product development process.

MULTIPOWER platform can nationally and in-ternationally be used for example as a testing sitefor the components and generation units of a DGsystem, as a platform for the validation of thecontrol and management system of a DG distri-bution system, for the production optimisation inthe multi production systems, as well as it acts asa platform for the component and system integra-tion tests.

MULTIPOWER testing environment has alsobeen introduced also for the European Networkof DER Laboratories and Pre-Standardisation forits possible membership.

2.9.2 Simulation environment

An extensive computer-based simulation envi-ronment was created by VTT and the Universityof Vaasa. This environment can be applied instudies related to the analysis and design of gridinterconnection of various types of distributedgeneration. The primary aim was to create a col-lection of simulation models representing vari-ous types of networks and generators. The net-work models serve as a basis for the simulationenvironment, and the user will have a free choiceto include a desired selection of various distrib-uted generators into the network model. In addi-tion to these the aim was also a have library ofmodels representing the protection relays andcontrol systems. The primary tool applied in theprojects was PSCAD, which is a well-knownpower system transient simulation tool.

Both medium- and low-voltage network modelswere developed representing typical Finnish net-works. Also several network models representing

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PROTOTYPE

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Figure 2.20. Product and system development using MultipowerDG testing platform at VTT.

typical networks found in foreign countries weredeveloped. The number of alternative system ar-rangements around the world is large, and thus itwas possible to model only some key alternatives.

Also the models for the common protection re-lays applied in various types of networks were de-veloped. To be exact, these models do not exactlyrepresent protection relays that are nowadaysmore or less multifunctional, but merely the vari-ous protection functions included in the relaysoftware. Also models for the relays applied es-pecially with the distributed generation were in-cluded in the model library. For the low voltagenetworks models representing standard fuseswere developed.

In the power plant models the main aim was tohave electrical parts modeled as exactly as possi-ble, while the representation of the primary en-ergy source was kept less detailed. In practice thismeans that for modeling a solar power plant, asimple inverter model was created, where the en-ergy source (i.e. solar cells) is represented by aconstant voltage source. The same model can ac-tually represent quite well any power plant thathas an inverter-based interface on the networkside. However, in practice there are certain differ-ences in the inverter control principles. For thisreason, basic models applying several alternativecontrol arrangements were developed.

For the rotating-machine-based generators, theapproach was to use constant torque applied tothe shaft. An exception of this was the diesel gen-erator, which also includes a model for the engineand its control system. One of the highlights ofthe project was the development of a model forthe doubly fed induction-generator-based windpower plant. The model includes accurate repre-sentation of the converters at the rotor circuit andthe advanced control and protection systems re-quired.

In addition to generator models, simple modelsrepresenting energy storages, a battery andultracapacitor, have been developed.

To verify the modeling technique applied, it wasnecessary also to model some real systems. For

instance, a model representing the Olos windfarm was created. This wind farm is located ontop of the Olos fjeld in Northern Finland, in Lapl-and. In this system, also disturbance measure-ments were made so that it was possible to com-pare the model behavior with the behavior of thereal system in various fault situations.

At Lappeenranta University of Technology(LUT) the primary goal was to model the small-scale hydropower production chain from the wa-ter reservoir to the grid. The modeling was car-ried out for the analysis and verification pur-poses. The models were created using PSCADand Matlab Simulink software packages. Themodeled system consists of grid, back-to-backconverter, permanent magnet synchronous gen-erator (PMSG) and fixed blade propeller turbine.The turbine is the part of the hydropower plant.The plant model includes the models of the reser-voir, the penstock and the turbine. The PMSG isrotational speed controlled by the generator in-verter. The interface to the network was realizedusing pulse width modulated (PWM) rectifier.This kind of interface could also be applied whenmodeling other distributed generation systems,for example, renewable energy sources such aswind turbines and solar power plants.

The models used to describe the hydropower gen-eration include the transfer function models fromthe position of the gate to the electric power gen-erated by the generator. More applicable modelwas developed at LUT to describe the dynamicsof the low-head hydropower plant. Still, the ideal-ization had to be made concerning the fluid dy-namics of the penstock in order to model the wa-ter flow using the constant coefficient nonlineardifferential equations. However, with the modelthe impact of the inertia of the water to the gener-ator power production could be examined. That isessential when the different failures on the gridside are studied. Also influence of the speed con-trol of the PMSG to the water flow in the penstockcould be studied, which was impossible when us-ing the transfer function models.

In addition to active interface hydropower plantmodel the directly network connected PMSGhydropower plant was developed. Because the

39

PMSG was directly connected to the network, thePMSG was modeled with the damper windings.The purpose of the model was to compare the re-sults with the directly network connected PMSGmanufactured at LUT when used at small-scalehydropower production. Moreover, several dif-ferent models were created in order to examinethe benefits that could be achieved when usingthe active front-end. The active filtering and reac-tive power compensation features of the PWMrectifier were tested (Peltoniemi, 2006). Espe-cially, the reactive power compensation was stud-ied when used in parallel with the directly net-work connected PMSG.

2.9.3 Integration of real-timesimulation environmentsRTDS and dSPACE

The power electronic and power system relatedstudies are yet performed more or less separately.It can be seen that novel combined simulation en-vironments could be useful. RTDS is a real-timesimulation tool for power system studies anddSPACE is a similar tool for computer-aided con-trol systems. Combining these tools could offer asuitable environment for studying the interac-tions between the power system and power elec-tronic sides. Although the aggregate impact isstudied, both power system and power electronicsides can still be modeled with familiar tools andmodels, which is one of the main benefits of inte-grating the systems. In Tampere University ofTechnology, the combined environment has beentested for studying active power filtering (Par-katti, 2006), (Mäki, 2006a) and wind power units(Tuominen, 2006), (Tuominen, 2007), (Mäki,2007a).

From the power system’s viewpoint, the inte-grated research platform enables more realisticstudies in the cases in which power electronic de-vices are connected to the network. Determiningthe adequate level of modeling the more complexdevices has always been a problematic issue.Using the dSPACE for power electronic model-ing saves the calculation resources of the RTDS.The dSPACE could also be used to run Matlab

models as a part of the simulations without con-verting them to RTDS. However, the capacity ofthe data transmission as well as possible delaysbetween the systems must be taken into accountwhen utilizing the dSPACE for sharing the calcu-lation loading.

From the power electronics viewpoint, it is veryuseful to see how the whole power system affectsthe converter performance. It is also beneficial toobserve how the converter actually changes volt-ages of the power system interface when the con-verter is running. Normally these experiments arecompleted by making a prototype and testing it ina real power system. Integrated simulation envi-ronment is needed when we want to advance fromoffline-simulation and see how power electronicaffects the power system without building a pro-totype. Also, the real-time simulation can help tosimulate the operation of converters and thepower system in different fault situations withoutdamaging the real prototype or disturbing thepower system.

Final reports

Alanen, R., Hätönen, H., Kallunki, J., Ikäheimo, J.,Knuuttila, O., Holma, J., Kauhaniemi, K., Saari,P., Rinne, T. ”Keskikoon energiavarastot hajaute-tun sähkönjakelun sovelluksissa”. Projektira-portti. VTT-R-03856-06.

Alanen, R., Holttinen, H. & Saari, P. 2004. ”Energianvarastoinnin teknologiat Suomen tuulivoimalai-toksissa”. Projektiraportti PRO2/P5 120/04.Espoo: VTT Prosessit. 148 s. + liitt. 3 s.

(Kauhaniemi, 2005) Kimmo Kauhaniemi, Ilari Risto-lainen, Pekka Saari, Henry Lågland, Heikki J.Salminen, Martti Hokkanen, Bertil Brännbacka.Simulointiympäristö, loppuraportti. VTT ja VY,2005.

(Lindh, 2005) Tuomo Lindh, Markku Niemelä, JormaHaataja, Juha Pyrhönen, Anna-Lena Rautiainen,Petr Spatenka, Antti Tarkiainen, Risto Tiainen, JeroAhola, Asko Parviainen, Timo Torttila, Tomi Tirro-nen, Hajautetun voimantuotannon verkkoliityntä jakoneet, tutkimusraportti SÄTE 19, Lappeenrannanteknillinen yliopisto, 2005. Lappeenranta. ISBN952-214-073-2 (paperback) ISBN 952-214-074-0(PDF).

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(Repo, 2005) Hajautetun sähköntuotannon vaikutuk-set keskijänniteverkossa, Repo S., Laaksonen H.,Mäki K., Mäkinen A., Järventausta P., Raportti3-2005, TTY / Sähkövoimatekniikka

John Olav G Tande, Jarle Eek, Eduard Muljadi, OlaCarlson, Jan Pierik, Johan Morren, Ana Estanqueiro,Poul Sørensen, Mark O’Malley, Alan Mullane,Olimpo Anaya-Lara, Bettina Lemstrom, SannaUski. Dynamic models of wind farms for powersystem studies. IEA RD&D WIND Annex XXI,83 p.

Other reports

Alanen, R. & Hätönen, H. 2006. ”Sähkön laadun ja ja-kelun luotettavuuden hallinta –State of the artselvitys”, VTT, VTT Working Papers 42.

(Antikainen, 2007), Antikainen J., “Distributed gene-ration and reliability of distribution network”,(Hajautettu sähköntuotanto ja sähkönjakeluver-kon käyttövarmuus), TUT, M.Sc. thesis, 2007, inFinnish

(Bastman, 2007), Bastman J., Mäkinen A., Repo S.,“Modelling of distributed generation in networkcalculation and verification of calculation resultswith measure-ments”, (Hajautetun sähköntuo-tannon mallinnus verkostolaskennassa ja tulos-ten verifiointi mittauksilla), TUT, Institute ofPower Engineering, re-search report, 2007, inFinnish

(Hänninen, 2005), Hajautettua tuotantoa sisältävän ja-keluverkon muutosilmiöiden mittaaminen, Hän-ninen, S., Uski, S., Projektiraportti PRO3/P3009/05, 2005, VTT Prosessit

Hajautetun tuotannon tilastollisuuden ja keskijännite-verkon aktiivisen jännitteensäädön huomioimi-nen verkostolaskennassa, Laaksonen H., diplo-mityö, 2004, TTY

Hokkanen, M., Kauhaniemi, K., Modelling of Dou-bly-Fed Induction Generator – Crowbar Protec-tion System Simulation, Vaasan yliopisto, 2006,Vaasa

Holma, J., ”Energy Storage System to the Medium Cir-cuit of a Frequency Converter“. MSc Thesis. inFinnish. “Taajuusmuuttajan välipiiriin liitettäväenergianvarastointijärjestelmä”, diplomityö,TKK, 2005.

Hätönen, H. 2005. ” Energy Storage Connected toDistribution Network in Controlling Power Qua-lity, Distribution Reliability and Energy “. MScthesis. in Finnish. ”Jakeluverkkoon liitettäväenergiavarasto sähkön laadun, jakelun luotetta-vuuden ja energian hallinnassa. Diplomityö. Tek-

nillinen Korkeakoulu / VTT, Espoo. Work doneat VTT.

Esa-Martti Isola: Power electronics for supercapacitorbased energy storage, MSc thesis, Helsinki Uni-versity of Technology, 2006.

(Kulmala, 2007b) Kulmala A., “The application of ac-tive voltage control in Högsåra distribution net-work”, (Aktiivisen jännitteensäädön soveltami-nen Högsåran verkossa), TUT, Institute of PowerEngineering, research report, 2007, in Finnish

Teemu Kontkanen, IEA Wind Energy Annual Reports2004, 2005 and 2006 (available at www.ieawind.org). Diplomityö, 2006, TKK.

Tiia-Maaria Ketola: Performance of supercapacitorstructures, MSc thesis, Tampere University ofTechnology, 2007. Work done at VTT.

Komulainen, R.” Multipower, hajautetun energiajär-jestelmän kokeellinen tutkimusympäristö”. Tut-kimusraportti VTT-R-04053-07, 2007, VTT, inFinnish

(Koponen, 2003) Koponen P.,Välkynnän häiritse-vyysindeksien laskentaohjelma, Tutkimusra-portti, 2003, VTT

(Kulmala, 2007b) Kulmala A., “The application of ac-tive voltage control in Högsåra distribu-tion net-work”, (Aktiivisen jännitteensäädön soveltami-nen Högsåran verkossa), TUT, Institute of PowerEngineering, research report, 2007, in Finnish

Kylkisalo, T, Alanen, R. ”Tasajännite taajaman säh-könjakelussa ja mikroverkoissa”. (DC in UrbanAreas Distribution Power Systems and Micro-grids). VTT Working papers 6698. Espoo 2007.

Kylkisalo, T. 2007.” The Utilization of DC Distributi-on Power Systems and Energy Storages in UrbanAreas”. MSc thesis. in Finnish. ”Tasajännitteenja energiavarastoinnin hyödyntäminen taajamansähkönjakelussa”. Diplomityö. Teknillinen kor-keakoulu. Sähkö- ja tietoliikennetekniikan osas-to. Work done at VTT.

Laaksonen H., Kauhaniemi K., “Energiavarastolla va-rustettu sähkönlaatuasema microgrid-verkko-konseptin osana”, Vaasan yliopisto, 29.01.2007 .

(Laaksonen, 2004) Laaksonen H., ” Statistical produc-tion curve for distributed generation and activevoltage control in calculation and network plan-ning of MV distribution networks”, (Hajautetuntuotannon tilastollisuuden ja keskijänniteverkonaktiivisen jännitteensäädön huomioiminen ver-kostolaskennassa), TUT, M.Sc. thesis, 2004, inFinnish

41

Lågland, H., Keskijänniteverkkojen analyysi mallinta-mista varten. Diplomityö, Vaasan yliopisto,2004, Vaasa

Olli-Pekka Laitinen, Mikrotuulivoimageneraattorintehonohjaus forward-hakkurilla. Diplomityö,Lappeenrannan teknillinen yliopisto, 2006.

(Mäki, 2007d) Mäki K., Kulmala A., Repo S., Järven-tausta P., “Distributed generation and island ope-ration of distribution network”, (Hajautettu tuo-tanto ja jakeluverkon käyttö saarekkeessa), TUT,Institute of Power Engineering, research report,2007, in Finnish

Mäki, K., “Novel methods for assessing the protectionimpacts of DG in distribution network planning”,Dr.Tech. dissertation, TUT, in process

(Mäki, 2004c) Mäki, K., ”Effect of distributed genera-tion connected in medium voltage network onfeeder overcurrent protection”, (Keskijännite-verkkoon liitetyn hajautetun tuotannon vaikutusjohtolähtöjen oikosulkusuojaukseen), TUT,Institute of Power Engineering, research report,1-2004, in Finnish

(Nikander, 2007a) Nikander A., “Aspects of connect-ing a small-scale hydroelectric power plant in amedium voltage distribution network - a simula-tion study”, (Pienvesivoiman liittäminen keski-jännitteiseen sähkön-jakeluverkkoon - simuloin-titarkastelu), TUT, Institute of Power Engi-neering, research report, 2007, in Finnish

(Partanen, 2006a)Partanen A., ”Application of powersystem stabilisers in distributed gene-ratingunits”, (PSS–lisästabilointipiiri hajautettuatuotantoa sisältävässä alueverkossa), TUT, M.Sc.thesis, 2006, in Finnish

(Partanen, 2006b) Partanen A., “Investigating the op-eration of a power system stabiliser ap-plied in asmall gas power plant using real time digital sim-ulator (RTDS)”, TUT, Institute of Power Engi-neering, research report, (not public), 2006

Parviainen A., “Tuulivoimaa Lappeenrannan teknilliselläyliopistolla”, Tuulensilmä, nro. 4/2003, pp.11

Peltonen, Lasse. 2007. “Energy storages as a supportfor control and maintenance reliability of a weakelectrical network”. MSc thesis. in Finnish.“Energiavarastot heikon sähköverkon hallinnanja huoltovarmuuden tukena”. Diplomityö. Tam-pereen Teknillinen Yliopisto. Sähkötekniikankoulutusohjelma. Work done at VTT.

Pykälä, M-L.,”MULTIPOWER tutkimusympäristönsähkötyöturvallisuusohje”.

Tutkimusseloste VTT-S-09482-06, 2006, VTT, in Fin-nish

Rautiainen A.L., Sähkökoneiden kunnonvalvonta-an-tureiden kehitys vaativiin ympäristöolosuhtei-siin. Diplomityö, Lappeenrannan teknillinen yli-opisto, 2004. Lappeenranta.

(Repo, 2005b) Repo S., Koponen P., ”Island operationpossibilities of electricity distribution network”,(Sähkönjakeluverkon saarekekäytön mahdolli-suudet), TUT, Institute of Power Engineering, re-search report, 2005, in Finnish

Rinne, T. ”Simulation research of the network influen-ces of the energy storage systems”, MSc thesis. inFinnish. ”Simulointitutkimus energiavarastojär-jestelmien vaikutuksista sähköverkkoon”, diplo-mityö. VY. 2007.

Tirronen T., Flyback-hakkuriteholähteen suunnittelupientuulivoimageneraattorikäyttöä varten. Dip-lomityö, Lappeenrannan teknillinen yliopisto,2005. Lappeenranta.

Torttila T., Pienoistuulivoimalan kuormitusanalyysi.Diplomityön käsikirjoitus, Lappeenrannan tek-nillinen yliopisto, 2005. Lappeenranta.

(Tuominen, 2006) Tuominen O., ”Modelling and si-mulation of wind power drives”, (Tuuli-voima-käytön mallintaminen ja simulointi), TUT, M.Sc.thesis, 2006, in Finnish.

(Tuominen, 2007) Tuominen O., ”Simulation of a ma-trix converter in the wind power drive”, (Mat-riisikonvertterin simulointi tuulivoimakäytössä),TUT, Institute of Power Electronics, research re-port 2007:1, in Finnish.

(Uski, 2006) Uski, S., Hänninen S., “Muutosilmiöidenmittaaminen ja analysointi hajautettua tuotantoasisältävässä verkossa”, VTT Tutkimusraportti,VTT-R-08322-06, VTT.

International publications

J. Ahola, T. Lindh, V. Särkimäki, R. Tiainen, “Model-ing the High Frequency Characteristics of Indus-trial Low Voltage Distribution Network”, Norpie2004, 12-14 June 2004, Trondheim, Norway.

Alanen, R., Saari, P., Kauhaniemi, K. “Feasibilities ofDual Energy Storage on Wind Power Systems”.2005 WSEAS International Conferences EEESD’05: Energy, Environment, Ecosystems, Sustain-able Development 2005, Vouliagmeni, Athens,Greece, July 2005.

Alanen, R., Saari, P. “Ultracapacitors and Batteries inWind Power Systems Control and Operation”.Electrical Energy Storage Applications andTechnologies, EESAT 2005, San Francisco,USA.

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(Antila, 2003) Antila S., Kivikko K., Trygg P.,Mäkinen A., Järventausta P., Power QualityMonitoring of Distributed Generation UnitsUsing a Web-based Application, AUPEC, Uusi-Seelanti, 2003

EWEC´06 Session: Dynamic models of wind farms forpower system studies - IEA Wind R&D Annex21. Chair(s): John Olav Tande, SINTEF EnergyResearch, Norway, Mark O’Malley, UniversityCollege Dublin, Ireland. 28.2.2006 SessionCode: BW1, Athens, Greece. 9 papers and pre-sentations including Finnish contribution: Elec-tric network faults seen by a wind farm – analysisof measurement data. Sanna Uski, Seppo Hän-ninen and Bettina Lemström.

EWEC´07 Session: Integration Studies (IEA WINDTask 25) Chairs: Hannele Holttinen, VTT, Fin-land, Ana Estanqueiro, INETI, Portugal. 8.5.2007 Session Code: BW2, Milan, Italy. 10 pre-sentations including Finnish contribution: Imbal-ance Costs of Wind Power for a Hydro PowerProducer in Finland. Hannele Holttinen, GöranKoreneff; and Summary: State-of-the-art of De-sign and Operation of Power Systems with LargeAmounts of Wind Power, Summary of IEA Windcollaboration by Hannele Holttinen et al.

Hokkanen, M., Salminen, H.J., Vekara, V., “A short re-view of models for grid-connected doubly-fedvariable speed wind turbines”, 2004 NORPIEconference, Trondheim

Holttinen, Hannele et al. Design and operation ofpower systems with large amounts of wind powerproduction, IEA collaboration. EWEC 2006 –European Wind Energy Conference & Exhibi-tion. Athens, Greece, 27 February - 2 March2006.

Hannele Holttinen, Pirkko Saarikivi, Sami Repo, JussiIkäheimo and Göran Koreneff. Prediction Errorsand Balancing Costs for Wind Power Productionin Finland. Global Wind Power Conference Sep-tember 18-21, 2006, Adelaide, Australia.

Hannele Holttinen. Estimating the impacts of windpower on power systems - first results of IEA col-laboration. EWEA Grid Conference, 7-8th No-vember, Brussels, Belgium. available athttp://www.ewea.org/index.php?id=233

Models of Supercapacitors and their charging behav-iour, Esa-Martti Isola, Jorma Kyyrä, MikaelBergelin, Jari Keskinen, 2nd European Sympo-sium on Supercapacitors and Applications,Lausanne 2.-3.11.2006, Paper ES06-26.

Kauhaniemi, K., Rinne, T., Alanen, R. “Network simu-lations of variable speed wind power system with

dual energy storage”: Nordic Wind Power Confer-ence – NWPC´2006 Grid Integration and ElectricalSystems of Wind Turbines and Wind Farms 22-23May 2006, Hanasaari, Espoo, Finland.

Jari Keskinen, Pertti Kauranen, Mikael Bergelin, MaxJohansson. Supercapacitors with activated car-bon power and cloth electrodes, 2nd EuropeanSymposium on Supercapacitors and Applica-tions, Lausanne 2.-3.11.2006, Paper ES06-07.

(Kinnunen, 2006a) Kinnunen J., Pyrhönen J.,Liukkonen O., Kurronen P., “Parameter analysisof directly network connected non-salient polepermanent magnet synchronous generator”,Nordic workshop on Power and Industrial Elec-tronics, NORPIE 2006, 12-14.June.2006, Lund,Sweden.

(Kinnunen, 2006b) Kinnunen J., Pyrhönen J., Liuk-konen O., Kurronen P., “Analysis of directly net-work connected non-salient pole permanentmagnet synchronous machines”, Proceedings ofthe International Symposium on Industrial Elec-tronics, ISIE 2006, Montéal, Canada, July 2006

(Kinnunen, 2006c) Kinnunen J., Pyrhönen J.,Liukkonen O., Kurronen P., “Design parametersfor directly network connected non-salient per-manent magnet synchronous generator”, Interna-tional Conference on Electrical Machines, ICEM2006, Chania, Greece, 2-5.September 2006.

Kiviluoma, Juha; Meibom, Peter; Holttinen, Hannele.The operation of a regulation power market withlarge wind power penetration. Nordic WindPower Conference – NWPC’2006. Grid Integra-tion and Electrical Systems of Wind Turbines andWind Farms. Hanasaari, Espoo, Finland, 22 - 23May 2006 (2006).

Kiviluoma, Juha; Holttinen, Hannele. Impacts of windpower on energy balance of a hydro dominatedpower system. EWEC 2006 – European WindEnergy Conference & Exhibition. Athens,Greece, 27 February - 2 March 2006.

(Kulmala, 2007a) Kulmala A., Repo S., JärventaustaP., “RTDS/PSCAD study on the opera-tion of apower system stabilizer in a small gas powerplant”, 19th Interna-tional Conference on Elec-tricity Distribution, Cired2007, May, 2007, Vi-enna, Austria.

(Kulmala, 2007c) Kulmala A., Mäki K., Repo S.,Järventausta P., “Active voltage level manage-ment of distribution networks with distributedgeneration using on load tap changing transform-ers”, International conference of IEEE Power-Tech, 1-5 July, 2007, Lausanne, Switzerland.

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Laaksonen H., Kauhaniemi K., “Fault Type and LocationDetection in Islanded Microgrid with Different Con-trol Methods Based Converters”. CIRED 2007.

Laaksonen H., Kauhaniemi K., “Sensitivity Analysisof Frequency and Voltage Stability in IslandedMicrogrid”. CIRED 2007.

Laitinen, Olli-Pekka, Lindh, Tuomo, Ahola, Jero. ”Re-quirements and Implementation of an AC-to-DCPower Converter for Micro Wind Turbine”,2006, 5, CD julkaisu, XVII International Confer-ence on Electrical Machines. September 2-5,2006, Chania, Crete Island, Greece.

T. Lindh, J.Ahola, P.Spatenka, A-L Rautiainen, “Auto-matic bearing fault classification combining sta-tistical classification and fuzzy logic”, Norpie2004, 12-14 June 2004, Trondheim, Norway.

(Lindh, 2007) Tuomo Lindh, Pia Salminen, JuhaPyrhönen, Markku Niemelä, Janne Kinnunen,Jorma Haataja. ”Permanent Magnet GeneratorDesigning Guidelines”, International Confer-ence on Power Engineering, Energy and Electri-cal Drives, POWERENG 2007. Setubal, Portu-gal, 12 - 14 April, 2007

(Mäki, 2004a) Mäki K., Repo S., Järventausta P., Effect ofwind power based distributed generation on protec-tion of distribution network, Eighth InternationalConference on Developments in Power System Pro-tection, Amsterdam, Hollanti, 2004

(Mäki, 2004b) Mäki K., Repo S., Järventausta P., Pro-tection Issues Related to Distributed Generationin a Distribution Network Using Ring OperationMode, Nordic Wind Power Conference,Göteborg, Ruotsi, 2004

(Mäki, 2005a) Mäki K., Repo S., Järventausta P., “Pro-tection coordination to meet the re-quirements ofblinding problems caused by distributed genera-tion”, WSEAS Transactions on Circuits and Sys-tems, Issue 7, Volume 4, July, 2005.

(Mäki, 2005b) Mäki K., Järventausta P., Repo S., “Pro-tection issues in planning of distribution networkincluding distributed generation”, CIGRE Sym-posium: Power Systems with Dispersed Genera-tion, April, 2005, Athens, Greece.

(Mäki, 2005c) Mäki K., Repo S., Järventausta P.,“Blinding of feeder protection caused by distrib-uted generation in distribution network”, 5thWSEAS International Conference on PowerSys-tems and Electromagnetic Compatibility,August, 2005, Corfu, Greece.

(Mäki, 2006a) Mäki K., Partanen A., Rauhala T., RepoS., Järventausta P., Parkatti P., Tuusa H., “Real-time simulation environment for power systemstudies using RTDS and dSPACE simulators”,

Nordic Workshop on Power and Industrial Elec-tronics, NORPIE2006, 12-14 June, 2006, Lund,Sweden.

(Mäki, 2006b) Mäki K., Repo S., Järventausta P., “Im-pacts of distributed generation as a part of distri-bution network planning”, Nordic DistributionAutomation and Asset Management Conference,Nordac2006, 21-22 August, 2006, Stockholm,Sweden.

(Mäki, 2006c) Mäki K., Repo S., Järventausta P.,“General procedure of protection plan-ning forinstallation of distributed generation in distribu-tion network”, International Journal of Distrib-uted Energy Resources, ISSN 1614-7138, Vol-ume 2, Number 1, January-March 2006, pp. 1-23.

(Mäki, 2006d) Mäki K., Repo S., Järventausta P., “NewMethods for Studying the Protection Impacts ofDistributed Generation in Network PlanningSystems”, 15th International Conference onPower System Protection, PSP2006, 5-8 Septem-ber, 2006, Bled, Slovenia.

(Mäki, 2006e) Mäki K., Repo S., Järventausta P.,“Studying the protection impacts of distributedgeneration using network planning systems”,Nordic Workshop on Power and Industrial Elec-tronics, Norpie2006, 12-14 June, Lund, Sweden.

(Mäki, 2006f) Mäki K., Repo S., Järventausta P., “Net-work Protection Impacts of Distributed Genera-tion – A Case Study on Wind Power Integration”,Nordic Wind Power Conference, NWPC2006,22-23 May, 2006, Espoo, Finland.

(Mäki, 2007a) Mäki K., Kulmala A., Repo S., Jär-ventausta P., “Studies on grid impacts of distrib-uted generation in a combined real-time simula-tion environment”, 7th International Conferenceon Power Systems Transients, IPST 2007, 4-7June, 2007, Lyon, France.

(Mäki, 2007b) Mäki K., Repo S., Järventausta P., “Pro-tection requirement graph for inter-connection ofdistributed generation on distribution level”, TheIJGEI International Journal of Global Energy Is-sues, vol. 28, pp. 47-64, 2007.

(Mäki, 2007c)MäkiK.,KulmalaA.,RepoS., JärventaustaP., ” Problems related to islanding protection of dis-tributed generation in distribution network”, Interna-tional conference of IEEE PowerTech, 1-5 July,2007, Lausanne, Switzerland.

(Mäki, 2007d) Mäki K., Repo S., Järventausta P., “Im-pacts of distributed generation on earth fault pro-tection in distribution systems with isolated neu-tral”, 19th International Conference on Electric-ity Distribution, Cired2007, May, 2007, Vienna,Austria.

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(Nikander, 2005) Nikander A., Ala J., “Connecting in-duction generators in parallel with main synchro-nous generators of a hydroelectric power plant inelectrical network-simulation study”, 18th Inter-national Confenrence on Electricity Distribution,Cired2005, 6-9 June, 2005, Turin, Italy.

(Nikander, 2007b) Nikander A., “Aspects of connect-ing small-scale hydroelectric power plant in MVdistribution network – a simulation study”, 19thInternational Conference on Electricity Distribu-tion, Cired2007, May, 2007, Vienna, Austria.

Parviainen A., “Axial Flux Permanent Magnet Genera-tor for Wind Power Applications,” Julkaistaan:Flux magazine, nro. 45.

Parviainen A., M. Niemelä, J. Pyrhönen, “Analyticalapproach to performance prediction of a dou-ble-sided AFPM machine with internal rotor andslotted stators”, Toimitettu julkaistavaksi: IEEETransactions on Industry Applications

(Peltoniemi, 2006) P. Peltoniemi, R. Pöllänen, M.Niemelä, J. Pyrhönen, “Comparison of the effectof output filters on the total harmonic distortionof line current in voltage source line converter -simulation study”, In Proceedings of the Interna-tional Conference on Renewable Energies andPower Quality ICREPQ’06, Palma de Mallorca,Spain, April 5-7, 2006.

A-L. Rautiainen, R. Tiainen, J. Ahola, T. Lindh, “ALow-Cost Measurement and Data CollectionSystem for Electric Motor Condition Moni-toring”, Norpie 2004, 12-14 June 2004, Trond-heim, Norway.

(Repo, 2004a) Repo S., Laaksonen H., Järventausta P.,New methods and requirements for planning ofmedium voltage network due to distributed gen-eration, Nordic distribution and asset manage-ment conference, Espoo, Suomi, 2004

(Repo, 2004b) Repo S., Laaksonen H., Mäki K., RingOperation of Distribution System in Case of Dis-tributed Generation - Voltage Control, NordicWind Power Conference, Göteborg, Ruotsi, 2004

(Repo, 2005c) Repo S., Laaksonen H., Järventausta P.,“Statistical models of distributed generation fordistribution network planning”, 18th Interna-tional Confer-ence on Electricity Distribution,Cired2005, 6-9 June, 2005, Turin, Italy.

(Repo, 2005d) Repo S., Laaksonen H., Järventausta P.,“Statistical short-team network planning of dis-tribution system and distributed generation”,15th Power System Computation Conference,PSCC2005, 22-26 August, 2005, Liege, Bel-gium.

(Repo, 2006a) Repo S., Mäkinen A., Järventausta P.,“Estimation of Variable Costs of Electricity Dis-tribution Company due to Distributed Genera-tion”, 9th In-ternational conference of Probabil-istic Methods Applied to Power Sys-tems,PMAPS2006, 12-15 June, 2006, Stockholm,Sweden.

(Repo, 2006b) Repo S., “Flexible Interconnection ofWind Power to Distribution Net-work”, Nordicwind power conference, NWPC2006, 22-23May, 2006, Espoo, Finland.

Salminen P., Pyrhönen J., Jussila H., Niemelä M. andMantere J. “Concentrated Wound 45 kW, 420rpm Permanent Magnet Machine with Em-bedded Magnets”. The 3rd IEE InternationalConference on Power Electronics Machines andDrives, PEMD 2006, 4 – 6 April 2006, The Clon-tarf Castle, Dublin, Ireland, Organised by the IEEPower Conversion & Applications ProfessionalNetwork.

Salminen P., Parviainen A., and Pyrhönen J.. Maxi-mum torque and inductances of surface mountedPM machines. XVII International Conference onElectrical Machines ICEM 2006, Greece,Chania, 2 – 5. September 2006.

P. Spatenka, T. Lindh, J. Ahola, J. Partanen, “Require-ments for embedded analysis concept of bearingcondition monitoring,” in Proc. of Nordic Work-shop on Power and Industrial ElectronicsNORPIE/2004, June 2004.

Särkimäki, Ville, Tiainen, Risto, Lindh, Tuomo, Aho-la, Jero. ”Applicability of ZigBee Technology toElectric Motor Rotor Measurements”, 2006, 5 s.,Automation, and Motion (SPEEDAM 2006),Taormina, Italy, May 2006.

Söder, L.; Hofmann, L.; Orths, A.; Holttinen, Hannele;Wan, Y.-H.; Tuohy, A. Experience from wind in-tegration in some high penetration areas. IEEETransactions on Energy Conversion. Vol. 22(2007) No: 2, 4 – 12.

Söder, Lennart; Hofmann, Lutz; Nielsen, Claus Stefan;Holttinen, Hannele. A comparison of wind inte-gration experiences in some high penetration ar-eas. Nordic Wind Power Conference – NWPC’2006. Grid Integration and Electrical Systems ofWind Turbines and Wind Farms. Hanasaari,Espoo, Finland, 22 - 23 May 2006 (2006).

J.O.G. Tande, E. Muljadi, O. Carlson, J. Pierik, A.Estanqueiro, P. Sørensen, M. O’Malley, A.Mullane, O. Anaya-Lara, B. Lemström, “Dy-namic models of wind farms for power systemstudies – status by IEA Wind R&D Annex 21”,.EWEC’04, 22-25 November, London, UK.

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J.O.G. Tande, I. Norheim, O. Carlson, A. Perdana, J.Pierik, J.Morren, A. Estanqueiro, J. Lameira, P.Sørensen, M. O’Malley, A. Mullane, O. Anaya-Lara, B.Lemström, S. Uski, E. Muljadi, “Bench-mark test of dynamic wind generation models forpower system stability studies” submitted toWind Energy Journal.

Tarkiainen A., Pöllänen R., Niemelä M., Pyrhönen J.,“Current Controlled Line Converter Using DirectTorque Control Method”, to be published in Eu-ropean Transactions on Electrical Power.

Tarkiainen A., Pöllänen R., Niemelä M., Pyrhönen J,“Identification of Grid Impedance for Purposesof Voltage Feedback Active Filtering”, to be pub-lished in IEEE Power Electronics Letters.

Tarkiainen A., Pöllänen R., Niemelä M., Pyrhönen J,“Compensating the Island Network VoltageUnsymmetricity with DTC-Modulation BasedPower Conditioning System”, in Proc. IEEEIEMDC’03, Recommended for publication inIEEE Transactions on Industry Applications.

Uski, S., Hänninen, S., Lemström, B., ”Electric net-work faults seen by a wind farm – analysis ofmeasurement data”, European Wind EnergyConference, EWEC 2006, Athens, Greece, 27thFebruary – 2nd March, 2006.

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3 Heating, cooling and cogeneration systems

3.1 List of projects

Lappeenranta University of TechnologyOptimal design of a biofuel power plantDate of funding decision: 10.2.2005Research project, finished

Helsinki University of TechnologyPower 10 kW and heat from wood pellets /HUTDate of funding decision: 10.1.2005Research project, finished

University of JyväskyläPower 10 kW and heat from wood pellets /JYUDate of funding decision: 15.12.2004Research project, finished

VTT ProcessesPower 10 kW and heat from wood pellets /VTTDate of funding decision: 15.12.2004Research project, finished

Lappeenranta University of TechnologyDisplacement engine processesin distributed energy supplyDate of funding decision: 19.5.2004Research project, finished

Helsinki University of TechnologyIndirect feeding of biofuels in microturbineprocessesDate of funding decision: 22.4.2004Research project, finished

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Wärtsilä Biopower

A world leading manufacturer of small power plants, Wärtsilä BioPower looked for supportfrom DENSY four years ago to extend their subcontractor chain and to develop new, envi-ronment friendly products. The company target was to intensify the realization of customerprojects and strengthen the expertise in selected product sectors. To achieve these targets,Wärtsilä participated in DENSY both as a sponsor company and as an applicant for the R&Dfinancing.

Wärtsilä carried out two product development projects as part of the DENSY program. Thefirst focused on research of technology for purifying the smoke gas emissions of theBioPower plants. Wärtsilä BioPower expanded fuel selection from boreal wood to agricul-tural biomass and tropical wood, and minimized fine particle emissions of the plant.

Wärtsilä’s other project concentrated on industrial production of the biopower plants. Thecompany developed a modular biopower plant that can be quickly designed and built.

According to Wärtsilä, the biopower market has undergone a remarkable change in the pastfew years. The limits on emission rates accelerate the sales of low emission power plants,especially in Europe. Furthermore, the modular power plant structure turned out to be theright decision, because it facilitates the overall responsibility for the delivery, makes buildingfaster and thus enables realization of larger power plant series.

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Savonia Power Oy

Savonia Power Oy developed the use of CHP in the production of power and heat. Theproject target was to make the power production cost-efficient in smaller units than previ-ously. The research was conducted in cooperation with Lappeenranta University of Tech-nology. The key technology of Savonia Power is CHP, which combines a steam turbine, apower generator and a feed water pump. The combination enables a good allround effi-ciency of 80-85 percent, also when operating in the power category below 10 megawattsor with partial capacity. Power production module can replace a traditional steam turbineor it can be connected to steam boiler environments.

”Our asset is the small volume of power production, lightness and short repayment period.In the Nordic countries, our solution is particularly suitable for use in saw mills, forest in-dustry and municipal heat plants. It uses local bio fuels efficiently and with exceptionallylow emissions in its volume category”, says Hannu Nissinen, the CEO of Savonia Power.

The small volume power production is based on utilising the inverter technology. Due tothis technology, the power plants do not need a gear box or lubrication. Consequently, thesteam is clean of oils and there is no need to invest in a lubrication system.

Condens Ltd

Condens Ltd based in Pori has developed a efficient gasification power plant in theDENSY-programme. The low emission gasification plant uses biomass fuel.

The 7 MW Novel gasification plant with the new method of gasification developed byCondens Ltd and VTT Processes was introduced in Kokemäki in early 2005. The demon-stration plant turns wood fuel into gas and burns it in three gas motors to produce electric-ity and district heat. The new plant type produces 50 percent more electricity from bio fuelin comparison with traditional steam operated small plants.

The gasification technique used by Condens is based on forced fuel feeding. Biomass andwaste are used more efficiently than before without expensive handling. The techniquealso improves the cost-efficiency of combined power and heat production. Furthermore,the target of the development work is to map out the emissions of the gasification plantand optimal cleaning process. Novel gasification plant uses catalytic cleaning, a bag filterand a wet scrubber.

According to Ilkka Haavisto, the Managing Director of Condens Ltd, the main market forthe gasification plants is outside Finland.

”The Nordic view on biomass is radically different from that of the rest of Europe. In Fin-land, wood is seen as fuel and there is an organised market for it. We open windows fornew ways of thinking, and the interest in using biomass is increasing especially in South-ern Europe.

Åbo Akademi UniversityIntegration of heating and coolingin regional and building systemsDate of funding decision: 15.4.2004Research project, finished

University of JyväskyläPower 10 kW and heat from wood pelletsDate of funding decision: 26.2.2004Research project, finished

Mikkeli PolytechnicTechnical and economical constraintsdelivery of heat energyDate of funding decision: 27.11.2003Research project, finished

VTT ProcessesTechnical requirements for heat tradein the district heating networkDate of funding decision: 4.9.2003Research project, finished

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Greenvironment

Originated in Lahti, Finland, Greenvironment has grown in the past five years from a localmircoturbine developer to a leading company in the area of combined heat power usingbiogas to fuel microturbines operating now in Germany. The growth is due to combining along-term product development to a needy market and creating a unique operating con-cept.

Greenvironment started its product development with the aid of the Tekes’s technologyprogrammes DENSY and Climbus. After years with microturbine technologyGreenvironment discovered an appealing market in Germany that has taken into usefeed-in-tariffs for renewable energy and advanced technology. Greenvironment createdan unique concept to sell bioenergy: fuelVALUE.

FuelVALUE means that the agriculturalist or the operator of the biogas plant establishesand runs a biogas plant and sells the generated biogas to Greenvironment.Greenvironment establishes and runs a block heat-and-power-plant using themicroturbine technology; the power plant will be used to generate electricity and heat.Greenvironment binds itself by contract to buy a previously established amount of biogasand thanks to the feed-in-tariff, Greenvironment is also able to sell the gas with a fixedprice.

“As Greenvironment operates the plant, farmers’ only task is to produce the biogas.Greenvironment also invests the power plant, which lowers the farmer’s initial investmentand no investments to maintenance are needed. In short, the concept brings the farmersame money with significantly less work. Environmentally our technology means loweremissions and energy effectiveness through producing both electricity and heat”, saysMatti Malkamäki, Director Technical Development, Greenvironment.

The company’s German subsidiary Greenvironment GmbH in Berlin currently has 18 em-ployees has been present in Germany since early 2006. Since entering the German marketGreenvironment has quickly made a name for itself on the market for green technologiesand has become one of the leaders in biogas-fuelled microturbines. Greenvironment nowhas 25 million euros financing to build power plants and proof that the concept works.

Lappeenranta University of TechnologyUtilizing local by-product streamsin distributed energy systems

Date of funding decision: 26.6.2003Research project, finished

Helsinki University of TechnologyDevelopment and testing of a bio-CHPconcept

Date of funding decision: 18.6.2003Research project, finished

Lappeenranta University of TechnologyORC in distributed energy supply:basic research

Date of funding decision: 18.6.2003Research project, finished

Åbo Akademi UniversityDesign of Optimal Distributed EnergySystems

Date of funding decision: 12.6.2003Research project, finished

3.2 Integrated heating andcooling systems forsport halls

VTT, Energy and Pulp&Paper/Energy SystemsFunding decision day: 29.11.2006Research project; openPerson in charge: Kari Sipilä

District cooling means centralised productionand distribution of cooling energy. Compared tobuilding-specific cooling, district cooling is moreenergy efficient, reliable and cost-effective dur-ing life-cycle. With district cooling, very littleequipment is necessary in buildings and any pos-sible noise or vibration problems due to coolingequipment are removed. Also space needed forthe equipment is freed and can be used for otherpurposes. However, a distribution network is al-ways needed, which limits the availability of dis-trict cooling to densely populated areas where thenetwork investment can be cost-effective.

Sport halls need often heating and/or cooling. In-tegration of heating and cooling systems in suchsituations means substantial cost savings. For in-stance a swimming hall that need heating and anice hockey hall that needs cooling can well be in-tegrated. For distribution of heat or cooling pipe-line networks are needed, similar to urban districtheating (DH) and district cooling (DC) pipelines.Compressor-driven heat pump is one option tocool the circulating DC water and at the sametime heat the circulating DH water.

The project will be carried out in collaborationbetween VTT Energy and Pulp&Paper/EnergySystems, Åbo Akademi University, Heat Engi-neering Laboratory and Tampere University ofTechnology, Institute of Energy and Process En-gineering.

3.2.1 Objectives

Measurement data from skiing pipe in Uusikau-punki is collected and developed simulationmodels for energy balances in sport centers. En-ergy systems in Ideapark (Lempäälä) will also bestudied and different types of systems will becompared. Ideapark is also intention of collectiondata from the energy systems.

The second object is to develop the CO2 pipelinemodel for skiing pipe. The aim is to study howcarbon dioxide could be utilized as a heat transfermedium for cooling the skiing pipe. During theproject a network model was constructed, whichenables networks of both glycol water and carbondioxide to be calculated and analyzed. Carbon di-oxide cooling process takes advantage of thephase change energy by evaporating carbon diox-ide to achieve the cooling effect. Liquid carbondioxide is pumped to the cooling pipes under thesnow track where it evaporates. The evaporationis not complete in order to avoid the need forlarger heat exchanger area (pipelines) due to lowheat transfer coefficient in high qualities. The re-turn flow is in two phases. Also the potential ofswimming halls and ice hockey halls as well asskiing pipes and swimming halls located closeenough to each other ware investigated.

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The third object is to improve the compressor-driven heat pump process. The key feature is tolower the pressure difference over the compres-sor and thus reduce the compressor power de-mand. By this way the cold factor (COP), definedas the ratio between the created cooling effect andthe compressor effect, can be improved. The sav-ings in the electricity cost of the cooling task isthe result of the improvement. An effect enhance-ment can be obtained at the same time also on DHwater heating. The process is called PDC process.It has been presented in Ref. [1].

3.2.2 Model for skiing pipesport centre

Collecting of data in Uusikaupunki has startedwith two different measurement systems. An-other one collects data from skiing pipe, tempera-tures, moisture etc. Another system is connectedto compressors which produce cooling energy forskiing pipe. Focus of measurements is to analyzeoperation of CO2 pipes in skiing pipe. Also func-tion of compressors and relation between outside

air conditions and skiing pipe. Possible functionproblems in CO2 is aim to find out.

Simulation model of energy systems in sport cen-ters has also started. Model will be created withEES (Engineering equation solver). Software isnot designed for simulation but specific systemscan be simulated with it. Program consist large li-brary of fluid properties which is important inmodeling. Figure 1 shows screen capture of EES.Model consists of heat pump and ice hall.

3.2.3 Model for snow pipelinesystem in skiing pipe

The model is used to simulate the carbon dioxidecooling network in a skiing facility in the city ofUusikaupunki. The system consists of a network,air heat exchangers and cooling pipes under thetrack. The structure of the network is defined bynodes and pipes. Pipes have connections tonodes, lengths and pipe size specific conduc-tance. Nodes can represent simple connectingnodes or have tasks such as consumer or pro-

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Figure 3.1. Simulation model in EES.

ducer. Carbon dioxide is presumed liquid in feedpipes, but in return pipes the 2-phase change flowis taken in account. The correctness of the as-sumption concerning the feed pipes is confirmedby monitoring pipe temperatures. The heatexchangers and the compressor are not modelledin detail. Only amount of evaporation and coolingpower are defined for heat exchangers, whilecompressor has a set maximum capacity and alevel of super cooling (in ºC).

Model calculates flows, temperatures, pressures,heat losses and the pumping power. The pipelineconstruction and diameters are supposed toknown.

The cooling pipes under the skiing track can becalculated more accurately with a separate toolthat solves the state of carbon dioxide flow insmaller steps. At this time, the tool is not inte-grated into the network model.

3.2.4 Integration of DC and DH

The PDC process is studied in the project withsimulations and laboratory tests, where the actualheating and cooling effects are measured in dif-ferent running conditions. A heat pump with 7.5kW nominal heating effect, 2.5 kW compressoreffect and 5 kW cooling effect has been installedand connected to three 50 l tanks with water dis-tribution pipelines on both DH and DC sides. Thesystem is equipped with comprehensive flow,pressure and temperature measurements. The re-quired volumes of the tanks are dependent of thedynamic behavior of the heat pump in varying ca-pacities. The volume demand is one of the keyquestions to the economy of the process.

First results are obtained with the test series thatwill be accomplished till the end of this year. ThePDC process gives a possibility to increase theenergy efficiency by increasing the heating effectto DH and the cooling effect to DC water. The

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Figure 3.2. Cooling system in the skiing pipe

PDC water tank system means an additional costthat could be reduced when the sport hall needbuffer tanks for DH and/or DC water in any case.Water tanks in the PDC process can be atmo-spheric, so the tank costs can be kept low. The an-nual operation hours of the heat pump is to beconsidered as it has a strong influence in theeconomy.

1. Jarmo Söderman, Göran Öhman and HenrikSaxén, A periodic process for enhanced districtcooling generation, 10th Symposium DistrictHeating and Cooling, 3.–5.9.2006, Hannover.

3.3 Design and operation ofintegrated cooling andheating systems in regionsand buildings

Åbo AkademiFunding decision day: 15.4.2004,Research project; closedPerson in charge: Jarmo Söderman

3.3.1 Introduction

Cooling has become a natural part of good work-ing and residential environment. For hospitalsand health institutions cooling is of utmost im-

portance. In urban areas district cooling (DC) hasincreased in recent years, replacing separatecooling machines in each room or building withcentral cooling generation plants and cold mediadistribution networks. Cold water is distributed tothe customers in similar pipelines as hot water inthe district heating (DH) networks. By combin-ing a central cooling plant with cold mediastorages the daily variations in the cooling de-mand can be handled with smaller machine ca-pacities. Integration of heating and cooling in re-gions and buildings can further improve the en-ergy efficiency and economy of the future sys-tems.

The project was carried out in collaboration be-tween Åbo Akademi University, Heat Engi-neering Laboratory, Tampere University of Tech-nology, Institute of Energy and Process Engi-neering and VTT Processes.

3.3.2 Objectives

The objectives of the project was to study and de-velop integrated cooling and heating systems inregions and buildings with the focus in energy ef-ficiency and economy and in overall optimisationof the cooling systems. The transport and storagetechnologies applicable in district cooling werestudied in this frame together with the suitabilityof different media for cooling effect distribution.

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Figure 3.3. Continuous Compressor-driven PDC Process with condensationheat recovery into DH water. DH water side tank arrangement is not shownin the figure.

3.3.3 Implemented research work

In the project seasonal and daily variations of thecooling demand in an urban region were studied.Data were collected from an institutional build-ing block comprising a number of buildings. Theblock is connected both to the district heating andcooling networks of the region.

Further it was studied how absorption coolingprocess can be applied at a process industry site,where large amount of excess heat is available.The absorption cooling process was designed us-ing data of cooling demands and brackish watertemperature variations at the site.

For enhanced operation of a compressor-drivencooling machine a periodic cooling process withcondensation heat recovery was studied. In the pro-cess the pressure difference between the evaporatorand thecondenser is periodically lowered so that theneeded compressor power is reduced, compared toa conventional process. The improvement can beobtained by a stepwise lowering of the temperatureof the cold water that is circulated into the evapora-tor and similarly by a stepwise increase of the tem-perature of the hot water into which the condensa-tion heat is recovered.

A Mixed Integer Linear Programming (MILP)model for the optimisation of district cooling net-works was developed and applied in an urban re-gion both with the present day data and with pre-dicted data for the year 2020.

The economic viability of integrated heating andcooling systems in large buildings was studied inthree real cases with energy balances and invest-ment estimates. Further the different influencingaspects of integration of a heat pump in coolingsystems were studied and test runs at a sports in-stitute were carried out.

The suitability of different media in transport andstorage of cold was studied. The distribution net-work was designed for different transport media:water and CO2. Additionally, a comparison studywith ice-water media was accomplished. In a re-gional cold distribution system it was studied onhow a two-phase system of CO2 is built and what

are the influences of the system on the DC net-work pipeline sizes.

3.3.4 Results

In the project report [1] the results of the projecttasks are described in more detail. The main re-sults are given below.

The measurements at the premises of a districtcooling/heating consumer showed that in mostsummer days high cooling capacity is neededonly in a relatively short time frame, usually from14 to 20 o´clock. The increase/decrease of thecooling demand is very sharp with the peak de-mand at approx. 18 o´clock.

The absorption cooling process with circulatingsea water in absorber and condenser was simu-lated with the plant’s condition using data ofcooling demands and sea water temperature vari-ations at the mill site and compared with existingcompressor-driven cooling units The runningcosts of the absorption cooling is much lower thatin the compressor units. There is a trade-off be-tween the decreased operational costs and the in-vestment costs of additional pipelines and heatexchangers.

Simulation calculations for the developed peri-odic cooling process showed that cooling effectcan be generated by the process with 12 % lesselectricity consumption compared with a conven-tional cooling process. For an existing coolingmachine an increase of 6 % of the cooling capac-ity can be obtained together with a reduction of 6% of compressor power demand.

Using cooling demand predictions for futureyears and the developed optimisation model aconceptual design was obtained, of how the DCnetwork should be expanded, where should newcooling generation capacity be built, what capac-ity should the new plants have and where andwhat size should the cold media storages be built.

The results of the studies of integrated heatingand cooling systems showed that the pay-backtime of an integrated heat pump system can beshort and the system economically viable.

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The comparison of different cooling transfer mediashowed that phase change materials like ice andvaxescandecrease theneededstoragevolumecom-pared with cold water storages. Additionally it wasshown that district cooling networks with ice slurryor CO2 require 50–70 % of the pipe dimensioncompared to water-based systems.

3.3.5 Use of results

The project gave valuable guidelines of how fu-ture cooling systems should be designed. The re-sults can be used in decision making of the futurecooling system investments at urban regions andindustries. The developed periodic cooling pro-cess opens up opportunities for new or existingdistrict cooling plants to save electricity and en-hance the cooling generation process. The devel-oped optimisation model can be used to producegood starting points in developing a DC networkfor a new region or in expanding or retrofittingexisting district cooling networks. The coolingsystem simulations can be utilized by the HVACdesigners when selecting the design and lay-outfor separate cooling systems and integrated heat-ing and cooling systems. The results of the stud-ies with CO2 as distribution medium can be usedin planning of the future district cooling networksand cold storages.

1. Jarmo Söderman, Göran Öhman, Antero Aitto-mäki, Ali Mäkinen, Kari Sipilä and Miika Rämä,KYLMÄ+ – Design and operation of integratedcooling and heating systems in regions and build-ings, 2006, Report 2006-3, Åbo Akademi Uni-versity, Department of Chemical Engineering,Heat Engineering Laboratory. ISBN 952-12-1821-5.

2. Jarmo Söderman, Göran Öhman and HenrikSaxén, A periodic process for enhanced districtcooling generation, 10th Symposium DistrictHeating and Cooling, 3.–5.9.2006, Hannover.

3. Jarmo Söderman, Structural and Operational Op-timisation of District Cooling Networks, 17th In-tern. Congress of Chemical and Process Engi-neering, 27.–31.8.2006, Prague.

4. Jarmo Söderman, Optimisation of structure andoperation of district cooling networks in urbanregions, in press, Applied Thermal Engineering2007.

Theses

1. Jesper Broo, Measurements of consumption and re-gional productionof district cooling,Master’s thesis,2005, (in Swedish). Åbo Akademi University.

2. Kim Fagerudd, Production of district cooling at asteel mill with absorption cooling machine, Mas-ter’s thesis, 2005, (in Swedish). Åbo AkademiUniversity.

3. Anssi Pesonen, Utilisation of heat pump for heat-ing and cooling of buildings, Master’s thesis,2005, (in Finnish). Tampere University of Tech-nology.

4. Ali Mäkinen, Heat pump in heating and cooling,Simulation of energy balances, Master’s thesis,2006, (in Finnish). Tampere University of Tech-nology.

5. Miika Rämä, Carbon dioxide in district cooling,Master’s thesis, 2006. VTT Processes.

3.4 Technical and economicalconditions for the DH heatsupply at the deliveryboundary

Mikkeli University of Applied Sciences,the Business Development CentreFunding decision day: 27.11.2003Research project; closedPerson in charge: Veli-Matti Mäkelä

3.4.1 Objectives

The intention of the research was to find out howthe competitiveness of combined heat and power(CHP) production could be improved by develop-ing the client interface of district heating. Alsonew solutions to append small and earlier unprof-itable targets to district heating were considered.One of the aims was to find out what kind of pre-conditions there is for heat producer to handle thewhole delivery chain from production to the cli-ent. This would include procurement, installa-tion, service and maintenance of the nowadaysclient-owned heat distribution centre. Use ofsmall-scale CHP-plants outside district heatingnetwork was examined as well. Preconditions forthe new products and services and the need forproduct development were also figured out in theresearch.

55

The research was carried out by the Business De-velopment Centre of Mikkeli University of Ap-plied Sciences. Researcher in charge is executiveVeli-Matti Mäkelä. The project was supported bymanagement team and participating organisa-tions brought much needed knowledge, know-how and aid in determination of demand.

3.4.2 Methods

Client interface of district heating was ap-proached from aspects of both the client and theheat producer. The aim was to find out what kindof deficiencies and needs for improvement pres-ent interface comprise. Based on those was re-searched what kind of new products, connectionsolutions and business models can be used to im-prove the interface. Also ownership solution re-lated legislative issues were plotted.

Connections and presence of present client inter-face and CHP-plants was investigated from liter-ature and internet in the beginning to be the basisof the research. Then the information was gath-ered by interviewing heat producers and carryingout a client survey. Based on the results was re-searched what functional and principle solutionsthe new interface needs and furthermore possibil-ities relating to business activity and new prod-ucts was outlined.

3.4.3 Results

It came out that, although there is interest in de-velopment of client interface of district heating,no large scale public research was made before.The clients still need new services and are willingto accept new solutions and working. The impor-tance of expenses and benefits was emphasized.There is a call for new products and services, butextensive market analysis or product develop-ment is yet to be made.

Clients’need for various services will increase. Itis possible that there will be whole new doers thatare faster, more flexible and more able to servethe client regarding those needs. Considering theresults it can be presumed that district heating cli-ent interface will steadily develop. The develop-

ment will be controlled by approach of differenttechnical systems and improvement and regroup-ing of already existing solutions. In the future it ispresumable that heat sale is a part of a larger ser-vice concept. There is a call for further study re-lating the subject. This research especially offerssignificant support when deciding the trend ofcompany specific development projects.

Executive summary + 7 appendixes, 278 p.

Examination

Engineering theses, Heikki Nousiainen

3.5 Technical features for heattrade in distributed energygeneration

Technical Research Centre of FinlandVTT Energy and Pulp&Paper,Energy Systems (earlier Processes)Funding decision day: 4.9.2003Research project; closedPerson in charge: Kari Sipilä

3.5.1 Introduction

Liberated heat market works mainly like a liberatedelectric market in Nordic countries with the excep-tion that the heat market works within a local dis-trict heating network There are producers, custom-ers, network operator and system operator as thereexist in the electric market. Physical actors in theliberated heat trade market are the traditional largescale producers that sell heat to customers con-nected to the district heating network, and the endusers, that would also be small-scale producers us-ing a micro-CHP or a boiler. They would buy heatfrom other producers or sell heat to customersthrough the network. The liberated heat energymarket will also need the transmission-net-work-company that takes care of the temperatures,pressures and hydraulic balance of the heating net-work. Network-company is also responsible forservices and enlarging the network when necessary.A balance-sheet-operator is also needed to coordi-nate the heat contracts between producers and cus-

56

tomers as well as to take care of reserve capacity,spot and future markets and billing.

3.5.2 Objectives

The main objective for the liberated heat trade mar-ket is to produce heat in more economical ways andto use more effective production units. However,the quality of the heat and minimum environmen-tal impacts must be ensured. This means thatcombined electricity and heat production (CHP)must be furthered and new more effective tech-niques of utilisation should be ensured.

The district heating network operation should beseparated from the production like in the electric-ity side. Then the network operator works moretransparently.

The market may consist of basic contracts contin-uing until further notice, from one month to oneyear short contracts and some kind of spot mar-kets 24 hours ahead like in the Nordic electricmarket. Future contract can be bought for the nextheating season. The heat balance sheet operator isresponsible for heat trade. The heat capacitiesand contracts must be in balance including the re-serve capacity. A coming heat boiler capacity innext heating season can be sold as futures to con-sumers.

3.5.3 Results

Heat trade simulations were done for a limitedpopulation of buildings connected to the districtheating network in a small town Kaskinen inwestern Finland. Simulations were designed to an-

swer the question whether the town could beself-sufficient in terms of heat or electricity produc-tion, could the community sell out some heat orelectricity or did it need to buy from the centralisedenergy production. Analysis showed that when thedegree of decentralisation was lower, the systemnaturally needed more heat from the centralisedproduction. An optimum solution was found re-garding the amount and placement of the mi-cro-CHP plants in different types of buildings. Ourlimited simulations showed that heat trading theo-retically could be a functional way to develop de-centralised energy systems. There is a potential ad-vantage to be utilised when buildings with con-sumption profiles different in shape and/or timingare connected through a district heating network.

The hydraulic performance of the district heatingnetwork was checked to make sure that there areno network based restrictions for the heat trade.Typically the network places two different typesof constraints: (1) pressure constraints and (2)temperature change constraints. The pressureconstraint refers to the fact that the maximumpressure that the feed pipes can withstand is fi-nite. New producers can change the geographicaldistribution of production so that distribution isno longer possible without exceeding the maxi-mum pressure. It is also possible that the pressurein some return pipe becomes so low that evapora-tion takes place on the suction side of a pump.Whatever situation may occur depends on the av-erage pressure of the network and the producer’slocation and current running mode (purchase orsell). The temperature change constraint refers tothe fact that the time derivative of temperature ina certain pipe should not exceed a given limit

57

0 °C

600

800

1 000

1 200

403020100

power Karjakuja MW

pum

ping

kW

karjakuja

Turku Energia

Figure 3.4. Pumping power in the district heating system as a func-tion of new heat supplier (Karjakuja).

value. This value is usually taken as ten degreesper hour. The reason behind this is that the heatexpansion places a stress on pipes and joints.From the technical point of view, selling of theheat to the network did not cause a problem. Onlythe temperature changes were larger comparedwith the traditional centralised system when theheat trade was on. Small producers brought moretime-varying factors into the system. They cancreate additional changing low-flow connectionsin their vicinity. It was seen that small producershave quite little effect on network pressures.

The recommended physical connection (fig. 3.6)is the version, in which the small scale producer is

connected to the DH-network via a heat ex-changer. This connection does not bring anychanges to the standard modular substation unitin buildings, it is safe solution to the user (no wa-ter leaks) and to the DH network (no gas leakproblems), it is easy to control, it is suitable fornew installations and renovations, and mainte-nance of the CHP unit does not cause any prob-lems to the DH operation. In general, we foundout that the physical connection will need stan-dardized rules, in which the quality and the per-formance of the connection unit are unambigu-ous defined, in the same way as the current Finn-ish District Heating Associations’ guidelines dofor the district heating substations.

58

0 °C

9 200

9 250

9 300

9 350

9 400

9 450

9 500

0 10 20 30 40

power Karjakuja

heat

r los

s kW

Figure 3.5. Heat losses of the network as function of new heat supplier(Karjakuja).

Figure 3.6. Indirect connection of the heat supplier to the DH-network witha heat exchanger.

1. Kari Sipilä, Jussi Ikäheimo, Juha Forsström, JariShemeikka, Krzysztof Klobut, Åsa Nystedt & JenniJahn, 2005, Technical Features for Heat Trade inDistributed Energy Generation, VTT Processes;VTT Building and Transport. VTT Research Notes2305, 111 p. ISBN 951-38-6731-5; 951-38-6732-3,http://www.vtt.fi/inf/pdf/ tiedotteet/2005/ T2305.pdf

2. Kari Sipilä, Jussi Ikäheimo, 2005, Open HeatTrade Markets, Euro Heat & Power, English Edi-tion IV/2005, pp. 22-25.

3. Nystedt, Åsa; Shemeikka, Jari; Klobut, Krzysztof;Ikäheimo, Jussi; Sipilä, Kari. 2005. Analysis of heattrade potential in a group of buildings connected bydistrict heating network. Proceedings of the 8thREHVA World Congress. (Clima 2005). Lausanne,9 - 12 Oct. 2005. Paper 102.

3.6 Energy Logistics

Tampere University of TechnologyInstitute of Energy and Process EngineeringFunding decision day: 18.6.2003Start date: 1.9.2003Project end date: 31.12.2004Research project; closedPerson in charge: Antero Aittomäki

Participants

• Institute of Energy and Process Engineering,Tampere University of Technology

• University of Vaasa• University of Jyväskylä• Helsinki Univ. of Technology• City of Vaasa

59

Figure 3.7. The starting window of the program for sewage cleaning plant.

3.6.1 Introduction

Objectives in Energy Logistics project were todevelop methods and models for general selec-tion and optimization of energy utilizing systems.Work was divided in two mains parts.1. Developing a tool for analyzing the energy

flows in different energy using systems2. Developing a general methodology for invest-

ment decisions

3.6.2 Focus

A PC-tool was developed Microsoft Visual Basicas the platform. The tool is modular allowing set-ting up the system using different modules. Thetool was applied for three case-systems:1. The base center of mobile phone network2. The sewage cleaning plant3 The production system of plastic pipes

3.6.3 Methods

The tools developed were supplied for the use ofthe participating actors. Using the model, the in-fluence of the lay-out and dimensioning of thesystem components ca be studied. The tool wasutilized to find measures to degrease energy de-mand of the system. The program can be modi-fied for modeling other types of systems, as well.Picture SS shows starting window of sewagecleaning model.

Aittomäki, A., Kianta, J., Savolainen, K., DENSY. Ener-gialogistiikka. Energiamallinnus. Tampere 2005.Tampereen teknillinen korkeakoulu, Energia- japrosessitekniikan laitos. Raportti 179.

References

1. Visual Basic –programs (CD) and manuals. Tam-pereen teknillinen korkeakoulu, Energia- ja pro-sessitekniikan laitos.

2. Keskinen, S., Energialogistiikka-projektin lop-puraportti. Vaasa 2004. 5.8.

3.7 DO2DES – Design of OptimalDistributed Energy Systems

Åbo AkademiFunding decision day: 12.6.2003Research project; closedPerson in charge: Jarmo Söderman

3.7.1 Introduction

Conventionally both electric power and districtheat have been produced in large central units.When energy consumers often are quite scatteredin a region, it has been questioned whether thesuppliers could be smaller and closer to the con-sumer sites than the large units far away. A betteroverall economy and important environmentalbenefits could eventually be achieved with dis-tributed energy systems (DES).

The project was accomplished in collaborationbetween Åbo Akademi University, Heat Engi-neering Laboratory, Helsinki University of Tech-nology, Laboratory for Energy and Power Pro-duction and VTT Processes.

3.7.2 Objectives

The goal of the project was to develop an ap-proach for the following optimisation task: in aspecific region find the optimal design and theoptimal locations for production plants of bothheat and electric power, the optimal routing forthe district heating network pipelines and the op-timal locations and design of heat storages, all inaccordance with the locations of the heat andpower consumers and their heat and power de-mands in different periods of the year.

3.7.3 Modelling DES

In the developed optimisation model for DES anumber of optional sites for heat and power pro-duction, heat storage sites and a number of energyconsumers with given heat and power demands indifferent time periods in the region are given as

60

input data. The coordinates of the consumer sitesand the optional energy supplier and/or storagesites are also needed.

Different types of heat or power production unitsand combinations of these can be applied. Com-bined Heat and Power plant (CHP), boiler plantthat produces district heat, wind power, heatpumps and small hydro power were included inthis study.

The region was considered as self-content in re-spect of heating demand. The electric power de-mand could be satisfied both with power pro-duced within the region and/or from the grid. Thepower from the grid was considered to be pur-chased with different prices for day and night andfor different seasons.

Consumers could produce their own heat in com-petition with the district heat. If a heat pump wereinstalled at a consumer site, additional electricityconsumption at that site was needed.

The costs of district heating comprised the networkinvestment and running costs and the costs for heatstorage tanks. The distances between supplier and

consumer sites were calculated separately priorto the optimisation and used as input data.

Two formulations for solving the optimisationproblem were developed and tested: a determin-istic Mixed Integer Linear Programming (MILP)formulation and a hybrid stochastic-determinis-tic formulation with Genetic Algorithm (GA)combined with Linear programming (LP). Withthe MILP approach global optimum solutions areobtained, but the approach cannot be applied inlarge problems due to a combinatorial expansionthat causes impractical calculation times. WithGA-LP approach even large problems can besolved but no guarantee on the optimality of thesolutions can be given.

3.7.4 Results

In the project report [1] a simulated case is pre-sented to show the applicability of the developedoptimisation approach. The case comprised 5 op-tional power and heat production sites and 12consumer sites with defined heat and power de-mands in different seasons of the year. Heat couldalso be stored during day time and used the next

61

Figure 3.8. The optimal DES-structure for a simulated case.

night in 3 optional sites. The obtained optimal so-lution comprised two CHP plants, a heat storagetank and a district heating network, as shown inFig. 3.8.

In Fig. 3.9 the power generation in the region isshown together with the purchased power fromthe grid outside the region. The optimal solutionis that the CHP plants to be built need not to coverthe whole power demand in the region.

The optimisation of the simulated case was basedon the survey of the investment and running costsof the applied heat and power production plants,together with heat pump, heat storage and districtheating network costs.

3.7.5 Use of results

The work in the project showed that a distributedenergy system can be optimised with the devel-oped approach. The optimisation approachserves as the first step in the design process andthe basis for more accurate calculations. The ap-proach can also be used for answering what-iftype questions and sensitivities of different pa-rameters of a suggested design.

With the developed approach the involved par-ties, like energy producing companies, plant

equipment suppliers, designers and consultantsas well as the authorities and energy consumersare able to handle the investment proposals onequal basis. The approach gives better under-standing of the impacts of the different systemparameters and leads parties to make better deci-sions.

1. Jarmo Söderman, Frank Pettersson, PekkaAhtila, Ilkka Keppo, Arto Nuorkivi, Kari Sipiläand Jussi Ikäheimo, DO2DES – Design of Opti-mal Distributed Energy Systems, 2005, Report2005-1, Åbo Akademi University, Department ofChemical Engineering, Heat Engineering Labo-ratory. ISBN 952-12-1587-9.

2. J. Söderman, F. Pettersson, Structural and Opera-tional Optimisation of Distributed Energy Sys-tems, Applied Thermal Engineering, 26, 2006,1400-1408.

3. Jarmo Söderman and Frank Pettersson, 2004,Structural Optimisation of Distributed EnergySystems, CHISA 2004 Conference, PRES 04,Prague, Czech Republic. Proceedings CD.

Theses

Fredrik Rönnlund, Distributed energy systems - opti-misation with Genetic Algorithms, 2004, (inSwedish). Master’s thesis at Åbo Akademi, HeatEngineering Laboratory.

62

Total power demand. power supply and purchase of power from maingrid at different periods

0

10

20

30

40

50

60

1 2 3 4 5 6 7 8period

MW

Regional power supply Main grid power

Figure 3.9. Regional power supplies and purchased power from the gridfor the case.

3.8 Development of biomass-based micro-CHP concepts

3.8.1 Introduction

Distributed energy production with small unitsmay complete well the traditional energy produc-tion, where the energy is produced to the gridwith relatively large power plants (usually > 10MWe per unit). In some EU countries like in Ger-many, Denmark and Spain the growing windpower capacity has already increased the impor-tance of rather small energy production units(0.5-2 MWe per unit) to the grid. With windpower a problem may originate from the need offast shut downs of the local networks with a highnumber of wind turbines for example when thewind velocity exceeds the critical limit. Inde-pendently, the grid should maintain its stability.Instead, a shut down of a single micro-scale CHPplant (µCHP) does not make instability to thegrid. The sufficient quality of the electricity froma µCHP can be guaranteed, and the energy flow tothe µCHP owner is guaranteed independently tothe possible shut downs of the main grid.

The biomass-based µCHP concepts studied inDENSY are clearly smaller (< 1 MW) than thetypical wind power plants. Correspondingly, thenumber of bio µCHP- units would be muchhigher than the number of wind turbines in a par-

ticular country. The studied µCHP’s produceelectricity directly from solid biomass. The priceof the produced electricity should be competitiveto the wind turbines and/or the traditional bio-mass-fired power plants.

Liquid fuel fired aggregates have been widelyused in micro-scale electricity production. Theseunits (< 1 MWe) are of the same magnitude withthe solid biomass fired units studied in theDENSY programme. Although the aggregateshave been so far fired with fossil-based gasolineand diesel, bio-diesel is possible to be used aswell leading to CO2 free energy production. Theaggregates have traditionally been used duringshort periods, for example in farm houses duringthe shut downs of the grid and in cases outside thegrid with low base consumption and occasionalpeaking. The base load has been covered for ex-ample with solar cells and the peaks which andaggregate. The development of the aggregatetechnology has led, however, to larger units (with10-100 kWe) which can be in continuously usewith additional production of district heat. Thetrend has also been from gasoline-fired aggre-gates to diesel-fired aggregates to minimise thefuel costs.

Figure 3.10 compares potential technologies toµCHP for different use and figure 3.11 gives arough estimate of the hardware costs per kWe

63

Options to micro scale heat and power production(CHP) for the future

Kohde kWe Kaasu- jadieselmoottori

Mikroturbiinit Stirling-moottori

Polttokenno

Pientalo < 5 - -- ++ ++Rivi- ja pienkerrost. < 30 + - ++ ++Suuri kerrostalo < 100 + - + +Hotelli, kylpylä < 300 ++ + - +Kasvihuone <50* ++ + -- +PK teollisuus <300 ++ ++ -- +

* Painottu voimakkaasti lämpöönSource: Valkiainen et al 2001

Gas or dieselengine

Microturbine

Fuel cellStirlingengine

single housecombined housesbig buildinghotels etc.greenhousesmall scale industry

* =Need of heat dominates over electricity

Figure 3.10. Users and optional techniques to µCHP.

with optional µCHP’s fired with bio-fuels. Dieselconcepts are probably cheaper than Stirling- andmicro-turbine-based concepts. There are cleardifferences, however, in the need of maintenancebetween the listed technologies (Fig. 3.12). Thediesel engine based concepts need maintenancemore frequently than the other optional concepts

included to figure 3.11. The higher hardwarecosts of the solid biomass-based concepts arepartly compensated by their lower need of main-tenance. However, it is essential to know that theinformation in figures 3.11 and 3.12 are a roughestimate: No commercial µCHP’s for solid bio-mass exist in the markets.

64

Maintenance interval (red) and service life before overhaul (blue)

0

10 000

20 000

30 000

40 000

50 000

60 000

Stirling Diesel Turbine

STM55kWe

Solo9kWe

Sisu25kWe

Sisu65kWe

Capstone30kWe

Capstone60kWe

Janne Pirhonen, TKK

hour

Figure 3.12. Rough estimate of the need of maintenance: Comparison of op-tional µCHP technologies. Source: HUT 2005

Hardware costs, incl. electric componets

0

500

1 000

1 500

Euro

s /

kWe

2 000

2 500

3 000

3 500

STM55kWe

Solo9kWe

Sisu25kWe

Sisu65kWe

Capstone30kWe

Capstone60kWe

Stirling Diesel Turbine

gas fuel outfit

biogas outfit

Janne Pirhonen, TKK

Figure 3.11. Rough estimate of the price of electricity with optional µCHPtechnologies. Source: Helsinki University of Technology (HUT), 2005

3.8.2 Description of the µCHPresearch projects in DENSY

Stirling-engine-based µCHP concepts

Project network description

The projects in this research were the following:• Electricity (10 kW) and heat from wood

pellets, co-ordinated by the University ofJyväskylä (JYU)

• The projects of technical Research Centre ofFinland (VTT) and Helsinki University ofTechnology (HUT) with the same title

These three projects formed an operational net-work co-ordinated by JYU. The main fundingsource was Tekes through DENSY programme.Figure 3.13 describes co-operation and industrialsupport. In addition to direct funding, industrygave technical support. Some EU funding was di-rected to the research through Jyväskylä SciencePark (JSP) and after the DENSY period throughTekes.

The goal for the project network was to plan andmanufacture a Stirling-engine based and woodpellet-fired µCHP concept and conduct the firsttesting with this plant.

JYU co-ordinated administrative and technicalpart of the research. VTT assisted JYU in calcu-lating the furnace of the µCHP with computerizedfluid dynamics (CFD), in making detailed plan-ning and selection of some key components of theµCHP, in conducting overall process calculationsand in supporting the instrumentation work. HUTassisted JYU in planning the heat transfer fromthe furnace to the Stirling-engine and in transfer-ring the overall information on Stirling technol-ogy and comparable technologies to the projectnetwork.

3.8.3 Main results

An estimate of the efficiency of electricity pro-duction with Stirling- based and optional µCHPconcepts is given in Figure 3.14 when fired withnatural gas, which is an optimal fuel to these con-cepts.

65

Figure 3.13. Organisation of the research of Stirling-basedµCHP concepts in DENSY.

According to Fig. 3.14 it is possible to produceelectricity with the efficiency of 25–30% fromfuel energy with Stirling-based µCHP conceptsfired with natural gas. When changing the fuel tosolid biomass, the ash makes problems to the con-cept for two reasons:a. The fly ash from even the best quality biomass

(like wood pellets) start to soften at about 1300oC. Softening starts when the portion of melt inthe fly ash becomes significant. The moltenfraction makes the fly ash sticky when passingthrough the heat exchanger between the fur-nace and the engine. As a result such fly ashwill damage the heat exchanger already duringshort time operation.

b. Due to the mechanical plugging effect of thefly ash (even without detected softening) theheat exchanger cannot be as effective duringbiomass firing as during gas firing. Natural gasallows clearly higher number of fins with nar-rower spaces than biomass because no fly ashis formed during natural gas firing. Mechani-cal plugging problem with biomass cannot besolved with a large-volume heat exchanger be-cause the inner volume of the heat exchangercannot exceed the inner volume of the Stirlingengine.

Figure 3.15 lists means to increase the net effi-ciency during biomass firing from poor values toacceptable values. The drop of the net efficiencyduring biomass firing from the natural gas valuespresented in Fig 5 due to the two drawbacks listedabove can also be clearly seen.

It is necessary to design a new furnace with anunique construction to meet the goal in electricityproduction (net efficiency about 15%). Bothcombustion air preheating and flue gas re-circulation are necessary (see fig. 3.15). And it isessential to control carefully the conditions in thefurnace of the µCHP plant to find an effectivecompromise between the following things:a. Ash softening must be avoidedb. The ratio between the energy flow through the

heat exchanger and the fuel energy must bemaximised

These requirements lead to the need of CFD cal-culations to know the details of the furnace geom-etry, stoichiometry, combustion air preheatingand flue gas re-circulation. Wood pellet is sup-posed to be the fuel. It is the best solid biomasswith minimum ash content. Its high productionenables extensive use in the µCHP plants.

66

Efficiency, net electric

0

5

10

15

20

25

30

35

40

%Stirling Diesel Turbine

STM55kWe

Solo9kWe

Sisu25kWe

Sisu65kWe

Capstone30kWe

Capstone60kWe

Janne Pirhonen, TKK

Figure 3.14. Estimated net efficiencies of optional µCHP concepts duringnatural gas firing. Source: HUT

67

Figure 3.15. Calculated net efficiency (% electricity from fuel energy) for differentµCHP constructions in Stirling-assisted power production from solid biomass.

Figure 3.16. The influence of stoichiometry, combustion air preheating and flue gasrecirculation to the temperature distribution in the furnace of a wood pellet fired µCHPplant.

Results of the CFD calculations carried out atVTT are illustrated in Figure 3.16. The energyflow out from the furnace top (see the arrow) tothe heat exchanger in cases a and b2 is roughlysimilar (temperature and mass flow in the outcoming gas are roughly similar). However, veryhigh furnace temperatures (> 1500 oC) were cal-culated in case a, whereas the furnace tempera-tures remain in all zones below the softeningpoint of typical wood pellet ash in case b2. Ac-cording to the results, the above mentioned de-sign parameters are critical.

3.8.4 State of the µCHP plant

The CHP plant is almost completed, but instrumen-tation, control system, air pre-heater, burner and theexperimental hall have still some details to be com-pleted. The construction work has been more timetaking than estimated but the costs have not ex-ceeded as much as the time schedule. However,there is a gap between the funding and the costswhich may become a problem. Additional publicfunding through Tekes is not available.

3.8.5 Future aspects of Stirling-engine-based biomass firedµCHP plants

The costs of Stirling engine are in the key positionwhen determining the price of electricity pro-duced with a wood pellet fired µCHP plant if theprocess development and the further simplifica-tion of the plant to mass production prove to besuccessful. Probably the traditional constructionof a Stirling engine would not allow a µCHP plantwith moderate electricity prise (Figure 3.11) be-cause of the long pay-back time of the invest-ment. Instead, a new innovation was made in1976 to simplify the construction of the Stirlingengine which can give a solution. In the novelconstruction called as free piston engine, there isno connection between the power piston anddisplacer piston. This arrangement enables muchsimpler construction which can reduce the pro-duction costs even by 70–90%. The informationof Figs. 3.14 and 3.15 prevails with this new en-gine because similar heat exchanger has to beused. The necessary furnace construction de-scribed above can also be realised with rather

simple solutions in a mass product. In conse-quence, there are technical and economic possi-bilities to develop an economic wood pellet firedµCHP plant. Such development work needs,however, funding and time.

3.9 Waste-to-energy – a modularCHP plant utilizing municipalwaste streams in distributedenergy generation

Lappeenranta University of Technology

Department of Energy and EnvironmentalTechnology and Department of ElectricalTechnologyPostal address: P.O. Box 20,FI-53851 Lappeenranta, Finlandtel. +358 5 621 11fax. +358 5 621 6399

Project organisation

Project supervisorDr. tech., professor Esa Marttila, LUTe-mail: esa.marttila@lut.fi

Project managerM. Soc. Sc. Riikka Bergman, LUTe-mail: riikka.bergman@lut.fi

ResearchersAndrey Lana, M. Sc. (Tech.), LUTHanna-Mari Manninen, M.Sc.thesis student (Tech.), LUTJanne Nerg, D.Sc. (Tech.), LUTJuha Kaikko, D.Sc. (Tech.), adjunct professor, LUTJuha Pyrhönen, D.Sc. (Tech.), professor, LUTJukka Malinen, M.Sc. (Tech.), LUTKatja Kakko, M.Sc. thesis student (Tech.), LUTMika Horttanainen, D.Sc. (Tech.), professor, LUTMika Luoranen, M.Sc. (Tech.), LUTRiikka Bergman, M.Soc. Sc., LUTTuomo Lindh, D.Sc. (Tech.), LUT

Networking (in Finland)Biolan Oy, KauttuaEinco Oy, KotkaEtelä-Karjalan Jätehuolto Oy, LappeenrantaEnmac Oy, KotkaLappeenrannan Energia Oy, LappeenrantaLappeenranta Innovation Oy, LappeenrantaLaitex Oy, LappeenrantaRotatek Finland Oy/ The Switch, Lappeenranta

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Duration of the projectJanuary 2007 – March 2008Financing in totalEUR 422,500 of which the share of Tekes isEUR 312,500

Master’s thesis producedTechno-Economic Analysis of the TreatmentFlows and Incineration of Municipal SewageSludge and Biofuels

The Treatment of Municipal Sewage Sludgebefore Thermal Drying and Incineration

3.9.1 Introduction

This brief presentation will outline the prelimi-nary results and future of the Waste-to-Energy(WtE) Project which focuses on the technical andeconomic studies and analyzing the commercialopportunities of a modular small-scale powerplant utilizing biofuels and fuels from waste ma-terial in its electricity and heat production. Thisreport summarizes the current state of the project.The final results will be provided in the final re-port by May 2008.

3.9.2 Objectives and scope ofthe study

The objective of this university project, funded byTekes, the Finnish Funding Agency for Technol-ogy and Innovation, under the Densy (DistributedEnergy Systems) Technology Programme, is toimprove the technical and economic prospects ofa modular small-scale power plant, which utilizesindustrial and municipal sludge, other biofuelsand fuels from waste material in its electricity andheat production, in the future energy market. Themodular small-scale power plant concept is basedon studies on sludge treatment methods and bioCHP (combined heat and power production)combustion technology at Lappeenranta Univer-sity of Technology, and on the technology used inindustrial and municipal sludge drying and com-bustion plants (SDC plants) and their electricitygeneration. By integrating these we can create amodular small-scale CHP plant.

This research project includes both the technicalanalysis and the study on the concept’s commer-

cial opportunities. The technology analysis fo-cuses on examining fuel alternatives, the recov-ery potential of their combinations and transpor-tation processes, and the recovery of residualashes, and on techno-economic process calcula-tions, the choice and planning of optimal electri-cal drives technology and automation, and on de-vising the plant’s remote system management.Moreover, we shall define the plant’s power gen-eration potential and evaluate the entire plant’stechno-economic capacity, namely determine theintangible and tangible resources required in theconstruction and operation of the plant and ana-lyze their cost structure on both the componentand system level. The objective of the businessprospects analysis is to provide a commerciallyexploitable business concept by combining amacro level study on the competition environ-ment with a micro level resource analysis. Theall-encompassing theme in the project is the cre-ation of new business opportunities and develop-ment of the WtE technology. Along with the cre-ation of the new business, the better understand-ing of conditions for the social acceptance of theplant may widen.

In the following, all the parts of the research pro-ject, their preliminary results and future concernswill be discussed separately. The terms WtE con-cept and WtE process refer to the technology usedin the dewatering and incineration of industrialand municipal sludge and other fuels and thecombined process of electricity and heat produc-tion which can be applied in distributed energygeneration.

Technical and economic modeling ofa thermal sludge treatment plant

Technical performance of the thermal sludgetreatment plant forms a basis for further consider-ation of its viability in a given business environ-ment. In this study, both technical and economicmodels are developed for the plant. The focusarea is first on using sludge as the only fuel, but itis later expanded to include multi-fuel operationwhere biofuels and recycled fuels can be burnedtogether with sludge. The developed models areutilized for analyzing the effect of operating pa-rameters on the plant performance as well as for

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determining the prerequisites for the profitabilityof the investment. Furthermore, consideration isgiven to the optimal integration of the plant intothe sewage sludge treatment process.

The developed thermal sludge treatment plantapplies steam power (Rankine) cycle and isequipped with a drum-type boiler and a back-pressure turbine. Circulating fluidized bed (CFB)technique is used both for drying the sludge ther-mally in a commercial indirect CFB dryer and in-cinerating the dried sludge and odorous vapor in aconstant temperature combustion (CTC) reactor.

In the boiler, feed water is first pre-heated in theeconomizer and taken into the drum. The satu-rated water is evaporated in two consecutivestages by leading it through the evaporator in theCTC reactor and additional evaporator in the ex-haust gas duct. The saturated steam is super-heated into live steam conditions in the super-heater and led through the turbine to get mechani-cal power. The plant has one open feed waterpre-heater (feed water tank) which uses saturatedwater from the drum as a heat source. Therefore,no bleeds are required in the turbine. The heatfrom the turbine exhaust steam is utilized in thedryer to reduce the moisture content of the sludgebefore combustion. This increases the electricpower and efficiency of the plant. The returningcondensate from the dryer is pumped into thefeed water tank and again into the boiler. At de-sign conditions, the dry solids content of thesludge entering the dryer is selected so that allheat from the plant is consumed in the drying pro-cess. This value is designated as the minimum drysolids content. Nevertheless, the plant isequipped with a supplementary heat exchangerfor cases when additional cooling is required.

Simulation models have been developed and pro-grammed for the dryer and reactor using anIPSEpro process simulator. The developed com-ponent models have been combined with thestandard models from the software to set up a pro-cess model for the plant. The specifications forthe components have been selected to reflect thetypical values of the small-scale plants while thecomposition and heating value for the sludge are

characteristic of municipal sewage. When themass flow of the dry solids corresponds to a popu-lation of 200 000 inhabitants, the net electricpower of the plant becomes about 500 kW. Sensi-tivity studies show that increasing the dry solidscontent from its minimum value increases addi-tional thermal power significantly while the in-crease in electric power is only mild. The plantparameters have a minor effect on the minimumdry solids content. From the parameters, livesteam pressure, back pressure and isentropic effi-ciency of the turbine have a strong effect on bothelectric and thermal power. Compared to these,steam temperature has only a minor effect.

The economic analysis is based on determiningthe present value of investing in the thermalsludge treatment plant. Aside from the invest-ment costs, the following costs are taken into ac-count in the model: the avoided costs of generat-ing electric and thermal power, the income fromselling energy (if any), the income from receivingsludge, the processing costs for the ash as well asoperation and maintenance costs for the plant.Support systems for the investment and taxationare excluded from the study.

The economic model can be used for determiningthe maximum investment cost for the plant to beeconomically feasible. With given input parame-ters the major share of the revenue comes fromthe sludge acceptance fee while the contributionof avoided costs remains lower. Compared tothese, the costs from processing ash have only aminor role in the economy. It must be noted thatthe results depend on the technical and economicinput values and are valid when sludge is used asthe only fuel. In case biofuels – for instance reedcanary grass or forest residue chips – and recy-cled fuels are utilized in parallel with sludge, thecost structure of the plant changes significantly.

Further studies include the analysis and compari-son of variations for the developed process aswell as alternatives for sludge combustion. Sur-plus heat that is not required for drying sludge canbe used for district heating or drying the raw ma-terial for wood pellets, for instance. One option toutilize surplus heat is to introduce a condensing

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turbine in the process to maximize the electricpower yield. The thermal sludge treatment plantcan be replaced by a boiler plant where the heatfor drying sludge is produced using a low-pres-sure steam boiler and surplus heat is utilized. Inthis option the revenue from electricity is lost butthe plant configuration is essentially simpler.Aside from using sludge as the only fuel, multi-fuel operation with biofuels and recycled fuelswill be considered. The overall optimization ofthe sewage sludge treatment process will also bestudied.

Optimal steam turbo generator technology– a techno-economical analysis

The steam power plant process seems to be themost suitable technology for converting thermalenergy to electricity in a thermal sludge treatmentplant. Depending on the moisture content of thesludge before combustion, some or all of the re-jected heat after the turbine can be utilized fordrying the sludge further. Instead of using sludgeas the only fuel, the steam power plant processenables multifuel operation where biofuels or re-cycled fuels can be burned together with sludge.This multifuel plant operates in a CHP mode pro-ducing heat for local use and delivering notableamounts of electric energy to the grid.

The following results were found during the firsthalf of the project: It is most suitable to have aback-pressure turbine when using sludge as theonly fuel, because the process steam after the tur-bine is needed for drying sludge. For the turbogenerator, the energy efficient multi-stage tur-bine without any gearbox is traditionally consid-ered to be economical only beyond the multi-megawatt size. With sludge as the only fuel, thepower output from the turbo generator variesfrom only 500 kW to 2000 kW. On this very smallscale, the generator’s prime mover is most oftenconstructed as a single-stage turbine coupledwith a reduction gearbox. This economically op-timized construction makes small-scale turbogenerators suffer from low isentropic efficiency.Poor performance is a major lack among the ex-isting commercially available equipments.

In the future studies, two state of the art technolo-gies will be investigated to improve the perfor-mance of small-scale turbo generators. The firstway is to eliminate the gearbox and use a directlycoupled high-frequency generator (HSG) insteadof a grid-frequency generator. The second way isto use a direct on-line permanent magnet syn-chronous generator (DOL PMSG) instead of atraditional induction generator or synchronousgenerator. Moreover, a techno-economical analy-sis of the HSG and DOL PMSG in a turbo genera-tor drive will be performed. The challenging highspeed technology will be further investigated af-ter the process model for the multi-fuel plant hasbeen developed. Then, the technical and eco-nomic performance of a novel hermetical turbogenerator with a condensing turbine in this multi-fuel plant will be analyzed. Several challengingresearch features are included in finding the tech-nically and economically best turbo generatortechnology for the purpose.

Automation of CHP power plant

The research approach goal is to design the con-nection of a CHP power plant to electricity net-work. The CHP power plant consists of the EincoOy CFB dryer (circulating fluidized bed), theEinco Oy CTC reactor and a turbo generator.

The electric systems and control equipment of thepower plant must be designed for stable operationwith the network, and electricity quality must sat-isfy the requirements of the network provider. Atthe beginning of the project, today’s network pro-viders’requirements, recommendations and elec-tricity quality demands have been analyzed andare used in the design process.

Two types of network interfaces have been de-signed. One connects a turbo generator running ata constant speed to the network directly; anotherconnects a variable speed turbo generator by us-ing a frequency converter. The generator typesused were the synchronous generator and theasynchronous generator. Every design option in-cludes main circuits, electric wiring, drawings,primary and secondary protection, automationequipment and operation instruction.

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The study continues with the design of automa-tion hardware, controlling software, data transferbetween field level and process control level de-vices, and the evaluation of both the HMI designand the requirements of unmanned use.

The treatment of municipal sewagesludge before thermal drying andincineration

The aim of the study is to examine the treatmentof municipal sewage sludge from the view of thesludge incineration plant, to find treatment meth-ods and transport options for sludge and to trackdown the costs of these units. The aim is also toclarify the characteristics of municipal sewagesludge and the problems with sludge treatment.In addition, the study includes examination ofsludge handling in the south-eastern parts of Fin-land. The objective is to accomplish an appropri-ate model of sludge treatment for each case.

In the beginning of the study, sludge is examinedfrom the point of view of both fuel and waste. Thereview contains facts of characteristics and vol-umes of municipal sewage sludge, legal limita-tions and the general process of wastewater treat-ment. The study deals with pretreatment, me-chanical dewatering, thermal drying and inciner-ation of sludge. The machines of the dewateringprocess are also specified and compared. Thestudy revealed that the centrifuge and belt filterpress are ideal especially for municipal sewagesludge.

The final part of the study consists of a more de-tailed inspection of the parts of sludge treatment.Attention is paid to storage of sludge, feeding anddischarge systems, conveyance and transporta-tion. Local opportunities of sludge treatment inKymenlaakso and South Carelia regions are con-sidered. In these regions 6 000 and 15 000 tonnesof mechanically dewatered sludge respectively istreated every year. In both cases it seems thatelectric and heat power depend strongly on thedry solids content of sludge, and not so much onother sludge properties. The costs of sludge treat-ment, from thickening to feeding for thermal dry-

ing, range between 12 and 20 euros per tonne.The cost depends on the number of treatmentparts. Mechanical dewatering and storage inducemost of the costs. All of these results are usefulfor planning a sludge incineration plant.

Co-incineration of sewage sludge andbiofuels

Theaimofthisstudyis toexaminehowtheWaste- to-En-ergy system of sewage sludge changes if biofuelsor recovered fuel are admixed into sewagesludge. Another objective is to find out about thepossibilities and benefits, but also the challengesand limitations that integrating these fuels pro-duce technically and economically. This analysiswill be done paying attention to the limitations oflegislation. The study considers the material flowchain, the process of the combustion plant and en-ergy that the plant produces. The analysis is con-ducted by using three cases: a waste managementcompany Etelä-Karjalan Jätehuolto Oy, theKymenlaakso Region and City of Lappeenranta.

The benefit of burning several fuels instead ofburning only sewage sludge is increased volumeof range. The quantity of sewage sludge is oftenquite small, so sheer burning of sewage sludge isoften not cost-effective. As well heat that co-in-cineration produces can be used in several pur-pose. The investment profitability of a small-scale CHP plant could increase when the plant isprocessing sewage sludge and integrated han-dling of waste. In addition to the benefit of wastetreatment the economic efficiency could be im-proved by power production

Co-incineration also has its limitations. The heatthat arises in the combustion process has to be uti-lized nearby the combustion plant. Moreover, theplant is a waste combustion plant, which in-creases investment and operation expenses, whencompared to a biofuel plant. Also, the fuel cost-benefit is lost when the share of fuels that cost in-creases. When several fuels are used, there will bechallenges for the fuel taken in, handling, storageand feeding systems.

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The co-incineration analysis is conducted by us-ing a model developed in the project. The finan-cial analysis is based on the results that the modelproduces. The starting point is the combustion ofsewage sludge. Along with sludge the co-inciner-ation process will use either recovered fuel, chip,peat or reed canary grass. Furthermore, the sev-eral ways of heat creation in the production ofelectricity and how profitable these ways are willalso be studied. There are a few options for theuse of heat, such as to supply heat to the munici-pal heating grid or utilize it for example in dryingraw material for wood pellets.

Utilization and treatment of ashesfrom the WtE process

The possibilities of utilizing ashes from thewaste-to-energy process will be studied duringthe project. Although ashes from the process areresidues that have to be dealt with rather than aproduct which has value in itself, handling ofashes is an important and necessary phase of theprocess. The WtE process which will be intro-duced to the public must include the whole pro-cess including all the inputs (energy, fuels etc.)and the outputs (energy, residues).

The aim of the ash study is to find the most feasi-ble handling methods for WtE ash. Ash utiliza-tion will be emphasized, but also the final dis-posal methods will be studied. The study will in-clude discussion on the following issues:• Ash contents from different sludges• Present level of suitable treatment methods

for WtE ash• Review of novel ash treatment methods

Research will be carried out mainly as a literaturestudy. The results of the ash study will be avail-able later in the autumn of 2007.

Business research

When determining the WtE concept’s businessopportunities, the competitive environment wasfirst defined on a macro level in a PESTEL analy-sis to find the political, environmental, social,technical, economic and legislative factors influ-

encing the major trends in the development ofbusiness operations. These macro level factorsare briefly presented below:• Political factors – On both the international

and national level, global and EU policies onenergy, environment and climate to reducegreenhouse gas emissions have an impact onthe planning and application of new technol-ogy. Increasing renewable energy generationand decreasing land filling of biodegrablewaste has been seen as one of the most centraltools to reduce these emissions.

• Environmental factors – The greatest environ-mental factor affecting power generation andwaste management globally is the marked in-crease in greenhouse gas emissions and theirnegative impact on the atmosphere. At the mo-ment, fossil fuels are most widely used and oneof the biggest causes for greenhouse gaseswhich creates pressure for developing newmethods for electricity generation and wasterecovery.

• Social factors – One of the most important so-cial factors, the rapidly increasing populationand the resulting pressure on the developmentof new waste recovery and power generationmethods have an influence on the appeal ofnew technology in the market. Attitudes andvalues in the business environment, further-more, influence the acceptance of the technol-ogy and ultimately the refusal or approval toimplement the new plant concept.

• Technical factors – Renewable methods arestill only a fragment of power generation whencompared to fossil fuels, and there is no quicksolution to satisfy the increasing energy de-mand in the short term. Alternative generationmethods replacing fossil fuels are, however,being developed continually. These methodsare based on renewable sources of energy, suchas biomass, waste, hydropower, tide and waveenergy, wind power and geothermic and solarenergy which create an interesting investmentand diversify competition in the internationalenergy market. Furthermore, the increased of-ficial standards in waste management as wellas reforms of waste legislations push public in-stitutions and private companies to invest in

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more efficient waste management technolo-gies. Pressure is above all directed at minimiz-ing the quantity of qualitatively diverse wastein a dumping ground, the control over unpleas-ant odour, the elimination of the causes of dis-eases, and more efficient exploitation of wastematerial and energy reserves. Existing tech-nologies on the market do not fully meet theabove mentioned requirements.

• Economic factors – Strong global economicgrowth in recent years has increased purchas-ing power and the interest to invest in new tech-nologies. Flux in the prices in the energy mar-ket and several countries’dependence upon theinternational market also enhance the opportu-nities of technology based on renewables. Asmentioned in the above paragraph, the in-creased standards in waste management pushpublic institutions and private companies todevelop more efficient technologies to mini-mize the quantity of waste in a dumpingground i.e. to prevent the upsurge of cost inwaste disposal.

• Legislative factors – In Finland in particulareconomic control mechanisms, such as the fis-cal policy or the obligatory waste tax andcharges, influence the planning of a WtE plant.The planning and implementation of the con-cept is also affected by various legislation con-cerning wastes. Our national legislation com-plies with global policies, and some of themost important of these laws and regulationsare the Waste Act, which places the recoveryand disposal of household waste and waste ofcomparable nature from public activities in theresponsibility of municipalities, whereas in-dustrial and commercial waste fall within theresponsibility of the waste producer; the WasteIncineration Decree, which aims at preventingpolluting emissions into the air and water fromwaste incineration; the Decree on Landfills,which proposes to increase waste recovery andto set criteria for the quality requirements oflandfills; and the Act on Fertilizer Products,which sets strict criteria for the recovery ofashes resulting from the incineration of sludgeand other fuels.

In the next phase of the project, (1) the businessresearch and commercial potentiality analysiswill define the general competitive factors andthe most significant future markets for the sludgeincineration plant and the customers and theirneeds in the emerging market for distributed gen-eration. Moreover, (2) the suppliers of SDC plantcore technology and (3) the energy sources willbe defined. The results will reveal the central suc-cess factors in the sector that will have to be takeninto account as minimum requirements whenplanning business operations. Finally, we willprovide a business concept in co-operation withthe companies participating in the project to im-plement a modular pilot plant. The business plan(part B in figure 3.17) will be done by combiningresearch results (part A in the following picture)as shown in the figure 3.17.

In addition and along with the business research,the preconditions for approving the plant in acommunity (end users) will be examined, i.e. as-sociations with waste matter that is at the end ofits life cycle and how these associations influencethe acceptance of a new technology among theend users and other stakeholders.

During the first phase of the project, some socialthemes that have an impact on the acceptance ofnew WtE technology have already been identi-fied.

The acceptance analysis will be continued andthe themes examined along with the developmentof the business plan. By analyzing how culturalissues, i.e. pre-knowledge/attitudes, affects thediffusion of new technology among the end users,it may be possible to create wider understandingof the acceptance of the WtE plant and supportbusiness operations related to it. Such an analysishas a central role when generating new business,especially in still emerging market.

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Business Conceptfor the Modular Distributed Energy Generation System

Production costs of heat/steamand related services

Manufacturing costs of CHP plantand manufacturing documents

Production costs of electricityand related services

Manufacturing costs of CHP plantand manufactoring documents

Total costs of the Combustion part ofthe CHP plant and heat/steam generation

Total costs of the Turbo Generator part ofthe CHP plant and electricity generation

Integration costs ofCombustion and Turbo

Generator– Total costs of integrationof two technologies as a

CHP plant

Business Concept for the–

WtE “PAKU”Integration the Results of the Parts ½/3

The results of the Energy andEnvironmental Technology

The results of the Electrical Technology

Total costs of manufacturing andproduction of energy in the CHP plant

and planning documents1. 2.

3.

A

B

Figure 3.17. Creation of the Business concept for the new WtE Concept.

4 Fuel cell and hydrogen systems

4.1 Introduction

Fuel Cell and Hydrogen research work in univer-sities in Finland started in the early 1990s. Indus-trial activity started also in the early 1990s withthe test run of the Onsi 250 kW phosphoric acidfuel cell (PAFC) and the establishment ofHydrocell Oy and Labgas Oy companies. How-ever, the level of funding for fuel cell researchwas quite modest until the beginning of the 21thcentury when Wärtsilä Corporation started itsSOFC development. This gave a strong boost thefuel cell activity in Finland. Tekes accepted itsrole as funding organization for this activity andthe budget of Tekes funded fuel cell projects in-creased from > 1 M€ in 2000 to 5 M€ in 2005.There was a clear interest in Tekes to coordinatethis activity, and therefore the fuel cell and hydro-gen activity was incorporated into the Densytechnology program from the beginning of 2004.These projects ended in the end of 2006. TheDensy technology program has reached its end in2007, but the Fuel Cell and Hydrogen researchfunded by Tekes is continuing in a new Technol-ogy program “Fuel Cells”, which will continueover the whole period 2007–2013, correspondingto the EU FP7.

Parallel with these developments the Finnish re-search organizations and industry started to par-ticipate in EU-projects dealing with fuel cells. Atpresent Finnish universities, VTT and industryare participating in nine EU projects related tofuel cells.

In the Densy program Helsinki University ofTechnology (TKK) coordinated two projects andVTT Technical Research Centre of Finland(VTT) coordinated also two projects. The TKK

projects were both executed by individual re-search groups in cooperation with industry. Theprojects were “Distributed modular hydrogensystems” (THETA) and “Analysis and optimisa-tion of heat exchangers for fuel cells”. Focussedresearch areas of THETA were advanced hydro-gen storage (IEA HIA Task 17), hydrogen gener-ation and machine-free compression, electricalpower generation, waste heat/cold recovery,modular system total design, simulation and opti-misation, applied safety issues and system opera-tions. Fuel cell heat exchangers were focused onanalysis of heat balance and heat exchangers offuel cells.

VTT coordinated projects were PowerPEM andFINNSOFC. The PowerPEM deals with the de-velopment of technology and concepts for class 1kW power units for different applications. Thosecould be small vehicles, back up power or powerfor telecommunication, houses and so on. Power-PEM was executed in cooperation with TKK andindustry.

In the FINSOFC project technology was devel-oped for SOFC based power sources using natu-ral gas or diesel as fuel. In this case possible ap-plications are CHP from 1 kW to MW sizes andAPU for ships and vehicles to mention the mostimportant ones. Although coordinated by VTT,the projects were executed in cooperation withthe universities TKK and Åbo Akademi as well asindustry, as described in connection with the indi-vidual project descriptions.

Contact personRolf RosenbergVTT Technical Research Centre of FinlandP.O.Box 1000, 02044 VTT, Finland

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4.2 List of projects

VTT, Development of a PEM-fuel cell,stage 3

Date of funding decision: 2.1.2006Research project, finished

VTT Processes FINSOFC 2006

Date of funding decision: 21.11.2005Research project, finished

VTT ProcessesDevelopment of fuel cell technologyand business in Finland

Date of funding decision: 22.9.2005Research project, finished

VTT ProcessesDevelopment of a PEM Fuel Cell,stage 2

Date of funding decision: 3.2.2005Research project, finished

VTT ProcessesFINSOFC – Business for Finnish industry

Date of funding decision: 31.1.2005Research project, finished

Helsinki University of TechnologyDistributed modular hydrogen systems

Date of funding decision: 25.3.2004Research project, finished

VTT ProcessesDevelopment of a PEM fuel cell 1/3

Date of funding decision: 12.2.2004Research project, finished

Helsinki University of TechnologyAnalysis and optimisation of heatexchangers for fuel cells

Date of funding decision: 12.2.2004Research project, finished

VTT ProcessesFINSOFC – Business for Finnish industry

Date of funding decision: 26.1.2004Research project, finished

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Wärtsilä

Technical Research Centre of Finland (VTT) and Wärtsilä together developed an internationallyunique fuel-cell system. Research groups from both organizations are developing solid oxide fuelcell (SOFC) technology in the same place and at the same time. The systems are based on thesame principles, but differ from one another with respect to components and the reforming of fuel.

In their plate-shaped fuel cells, both SOFC systems use natural gas supplied by the network. Elec-tricity produced by the fuel cell array, which has an efficiency of about 50 percent, is fed into VTT’selectric power grid. Heat produced by the systems can also be stored easily.

The research covered the processing of fuel, the operation of the cells and cell matrices, connec-tions to the electric power grid and natural gas network, and the control of the entire system. In ad-dition, the projects have developed the power station’s monitoring and automation systems anddynamic system-modelling tools.

The research also had a strong focus on the modelling of the fuel-cell system. The operation of thesystem was simulated using computer models which are verified using the experimental equip-ment in use. The aim was total understanding of the functioning of a fuel cell power plant.

The research co-operation between VTT and Wärtsilä helped to solve countless technical problems inthe development of the SOFC system. In addition to Wärtsilä, the FINSOFC research project includedthe participation of over ten companies interested in the development of fuel-cell technology and com-ponents, as well as the Helsinki University of Technology and Tampere University of Technology.

4.3 Distributed modularhydrogen systems, “THETA”

The Distributed modular hydrogen systems”(THETA) project focussed research areas wereadvanced hydrogen storage (PH, MH, HFP)1 hy-drogen generation (electrolysis, HFP) and ma-chine-free compression (EHC)2, electrical powergeneration (AFC), waste heat/cold recovery(thermal management), modular system total de-sign, simulation and optimisation (power condi-tioning), applied safety issues (leak tests) andsystem operations (H2/DC/heat supply, black-outs activations, infrastructure).

Analysis and optimisation of heat exchangersfor fuel cells. There were three work packages inthe project. In the first work package the ther-modynamical analysis (i.e. exergy analysis, en-tropy analysis, thermodynamic equilibrium cal-culations, thermal and mass transfer calculationsetc.) of different system possibilities were carriedout. During the analysis the thermodynamic roleof the different components was clarified and af-ter that the optimal process parameters and cou-pling of the whole system was defined. In the sec-ond work package a feasibility of different heatexchanger possibilities for the fuel cell systemswere more precisely worked out. The fuel cellsand fuel cell systems have specific features whichmay set new kind of limitations or demands forheat exchangers compared to more conventionalCHP systems. The third work package containedan analysis of demonstrations or simulations ofthe fuel cell system in a CHP application inco-operation with VTT.

The project POWERPEMFC was performed inco-operation with VTT and Helsinki Univer-sity of Technology (TKK). The project in-cludes development of PEMFC bipolar platedesign and validating the modelled results in asegmented cell. Construction of a 1 kW power

source including stack and BoP has been doneand control strategies have been developed.Also bipolar plate materials have been devel-oped, both conductive composites and metals.This project is continuation of the research doneat PEMFCTEHO (Power-pack solutions ofPEMFC), which was a sub-project of “Develop-ment and productization of fuel cell materials”2002–2003.

The general objective of FINSOFC was to createpossibilities for SOFC-related business to thecompanies involved in the program. It also offersgood facilities for research and education to theFinnish universities. However, the concrete targetof the project was to construct a natural gas fu-elled 5 kWe SOFC (planar type) power plantdemonstration connected to heat and electricitygrids and run it for a long period of time to gainvaluable operational experience. The plant didrun for 7000 h. Other accomplishments of theproject are construction of a prereformer naturalgas. This has been operated for 10 000 h. Aprereformer for diesel oil has also been devel-oped. The reformer is performing well and hasbeen tested for more than 1000 h. Cell and shortstack test riggs have been developed and con-structed. A number of cells and short stacks havebeen tested for periods up to 3000 h using naturalgas reformate both with sulphur and without sul-phur. A dynamic system model of the SOFCpower plant demonstration has been composedand it comprises all main components of the realsystem: the SOFC stack situated in a furnace,autothermal reforming (ATR) unit, catalytic af-terburner and anode and cathode side heatexchangers.

Michael GasikHelsinki University of Technology – TKKLaboratory of Materials processing andPowder Metallurgy (MVT)P. O. Box 6200, FIN-02015 TKK, Finland

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1 PH =pressured hydrogen tank, MH=metal hydride, HFP=hydrogen flash power

2 ECH=Electrochemical Hydrogen Compressor

4.3.1 Introduction

“Distributed Modular Hydrogen System” re-search project was lead by Helsinki University ofTechnology (TKK), Laboratory of Materials pro-cessing and powder metallurgy (MVT), in Espoo(FIN). The main partners were HIAT oGmbH(DE), Hydrocell Oy (FIN), Japan Steel Works (J),Kompozit-Praha (CZ), Labgas Oy (FIN), MGInnovaatiot Oy (FIN), Rollerco Oy (FIN) andWoikoski Oy (FIN). The project was carried outduring 01.06.2004–31.12.2006 period and it wasa part of the Tekes’ Distributed Energy Systems(DENSY) technology program and IEA HIATask 17.

Focussed research areas were advanced hydro-gen storage (PH, MH, HFP)3 hydrogen genera-tion (electrolysis, HFP) and machine-free com-pression (EHC)4, electrical power generation(AFC), waste heat/cold recovery (thermal man-agement), modular system total design, simula-tion and optimisation (power conditioning), ap-

plied safety issues (leak tests) and system opera-tions (H2/DC/ heat supply, blackouts activations,infrastructure). The layout of potential distrib-uted modular hydrogen system (DHS) is pre-sented in Fig. 4.1.

Part of the project, “Combined Metal Hydrideand Composite Tanks Hydrogen Storage”, waslinked to in IEA’s Hydrogen ImplementationAgreement (HIA) Task 17 (Solid and LiquidState Hydrogen Storage Materials). Within thisframework it was possible to participate in Task17 scientific seminars (Charleston, USA, Febru-ary 2005, Utsira, Norway, May 2005 and Tate-shima, Japan, October 2005). Researchers havehighly appreciated information gain from infor-mal discussions e.g. from safety issues. TKK rep-resentatives have separately attended IEA HIAExCo meetings as alternate members and re-ported about the co-operation.

The results related to Task 17 are shown below to-gether with other project specific results (a sepa-

80

Figure 4.1. The layout if the distributed modular hydrogen system. Wasteheat recovery unit (MG Innovaatiot Oy) is not shown here.

3 PH = pressured hydrogen tank, MH=metal hydride, HFP=hydrogen flash power

4 EHC = Electrochemical Hydrogen Compressor

rate report on Task 17 has been submitted in Au-gust 2006 to IEA and it is available from the sitewww.ieahia.org).

4.3.2 Project results

All major components (Fig. 4.1) were tested asreceived from suppliers taking part in the projectand their operating properties were integrated tonew model of virtual hydrogen station. Some ex-perimental testing on focused research areas wasalso needed to e.g. find out safety issues (leaktests).

Hydrogen Flash Power (HFP) is innovative sys-tem concept, design needs to be developed in fu-ture projects. Target is to provide high-densitystorage of H2 (>7% wt.) for either mobile appli-cations or for the case of UPS-function or in thecase of systems’ blackouts. Hydrogen and someheat would be released by adding dosing water“on demand” in the case of a blackout or unavail-ability of DC/AC power. The HFP will be basedof NaBH4 (sodium borohydride, SBH). Afterscreening of potential combinations of mixtures

of SBH with some additions, a suitable compro-mise was chosen with has more than three timeslower exothermic effects (0.28 kWhth/kg), rela-tively high net hydrogen storage (8.6 wt. %,equivalent to ~950 NL H2/kg of mix), does not in-crease pH with time, does not emit fuel cells poi-sons like NH3, CO or CO2, results in only neutral,harmless and fully disposable substances. Thissolution is believed to be cost-effective vs. pureSBH or any other combination. Since SBH andthe other component are solid powders, theywon’t react until water is added to the mix. Nearlyneutral pH should be helpful to prevent corrosionissues. To implement the system with SBH, wa-ter-dosing system should be integrated with theMH storage tank (of whatever design).

TKK started studies of novel composite shell in-tegration with MH storage. In 2004, typical AB5

(La0.85Ce0.15Ni5 and La0.7Ce0.3Ni5 commercialpowders, also those alloys with additional alu-minium) were analysed as a benchmarking mate-rial. Basic PCT curves were measured for 40–550NL H2/h (120-1650 W LHV) charge/dischargerates and with different heat management rou-tines, Fig. 4.2.

81

Figure 4.2. Example of the PCT surface of the La0.7Ce0.3Ni5 powder (rate 40NL/h). Points are experimental measurements.

Such approximation has allowed using of a spe-cial correlative equation to be implemented intosimulation algorithms to optimise different stor-age design versions. These solutions were used ina commercial product development, Fig. 4.3.

Chosen Electrochemical Hydrogen Compressor(ECH) was product of HIAT (Germany). It de-signed for productions of 200–1000 NL/h H2 viaPEM conversion for a pressure gains ~16:1(<30:1). ECH ideal cell potential is only 0.045Vfor 30:1. The cell potential is depending only onpressure ratio.

Hydrogen pressure tank has been designed to be a“smart”. Tank has a logic control for multiply in-puts and users. It is completed with overpressureprotection and interactive monitors for own state.Tank will command hydrolyser and EHC whenneeds to be refilled. Hydrogen tank is used as abuffer for fast car charge (day) and refilling(day/night) with e.g. solar or wind power.

Hydrocell provided alkaline fuel cell (AFC)stack. Stack is based on one unit cell (may becombined in 6-unit packs and also connected inparallel). System was optimised by varying hy-drogen supply (in other words current was lim-ited) assuming that airflow supply was enough.The AFC stack gives power of 90W at 12V DC

with electric efficiency ~60% (the ratio of realpower generated to the LHV value of fuel sup-plied) and performance ~74% (the ratio of realpower generated to theoretically possible electricpower at fixed fuel supply), with heat recovered~23% and maximal running time (UPS) 9.8 hours(for full tank of 12 g H2).

A proper automatic system to control AFCstack’s power conditioning is desirable: variableactive load result in efficiency losses. With propercontrol efficiencies up to 65% (DC) and perfor-mance up to 85% are achievable. Internal heat re-covery 20–60% is possible when purging MHstorage.

The principle of the enthalpy recovery deviceused in the project is based on the reversibility ofthe gas flow (air, hydrogen, etc.) through thechamber, which has heat/cold accumulator. Therationale for the tests was that AFC and MH out-put air contains significant amount of watervapour and thus presents a high energy value vs.input air. By properly condensing water insidethe device, this humidity variation may be con-verted into heat to transfer it to input air and thusequalise thermal balance of AFC stack, EHC andMH cooling/heating etc. Based on temperaturemeasurements, the effective energy recovery wascalculated and for the steady case it takes about

82

Figure 4.3. Commercial MH storage tank (AB5) using novel heat exchanger, implemented withan alkaline fuel cell (left) and the fuel cell electric scooter (right), Hydrocell Oy.

6–10 kJ/m3 air passed. The tests has demon-strated the 40–60% temperature recovery effi-ciency (humidity effect was not measured, it willadd other 20–30% more) and possibility of en-ergy recovery not only for the DHS alone but alsowhen it will connected to the whole energy man-agement chain of the building where DHS is lo-cated (e.g. ventilation).

Major components were tested and their operat-ing properties were integrated to new model ofvirtual hydrogen station. Modular units simula-tions of hydrolyser, EHC composite tank and fuelcell module clarifies their logics, basic relation-ships and interfaces were made. The simulationwas implemented into a software, where basiccorrelation equations, internal and connectinglogic between different components, which re-semble realistic automation of the system inlife-size.

The whole system simulation was made for asmall house assuming the set of a typical (fixed)parameters, for instance stationary tank of 20 m3

with maximum 700 bar compressed hydrogenstorage, 56 AFC in a serial stack, sleep DC powerdemand of 150W and maximal DC power de-mand of 2000W at peak load (by-heat productionwas counted). For different scenarios additionalhydrogen generation was imposed on demand as350 NL/h (based on hydrolyser) if SOC of thestorage tank went too low (this automatically setsAFC stack off, as shown above so no DC powergenerated and consumed at the same time). Thepower demand was composed of the above limitsadjusted by daily load and harmonic variationover the year (lower demand for summertime).Power demand needed by hydrolyser and EHCwas counted as negative power (consumed) in thewhole balance:

Energy delivered by AFC stack +7660 kWhel

Energy by-heat from EHCand hydrolyser +28 kWhth

Energy delivered to hydrolyser -4989 kWhel

Energy delivered to EHC -41 kWhth

Hydrogenconsumed -711.2 kg, generated +51.6 kg

4.3.3 Conclusions

The simulation algorithm has been demonstratedto produce adequate evaluation of the power andenergy balances (DC, hydrogen, heat). Final de-sign also requires a proper heat managementmodule, but it was found to be dwelling-depend-ent, so in a real application these modules shouldbe connected to e.g. fresh air supply, local heatingetc. to ensure the proper balance of temperatureand ventilation. Additional interface for cartanking has been also developed and can be con-nected into the whole system.

Even with this simple model it is possible to findthe operational windows for the simple distrib-uted energy system like size of the storage tankand AFC stacks vs. power demand. To build up areal hydrogen station means larger financial in-vestments. Thermal management using advancedERV (enthalpy recovery ventilator) concept, heatrecovery from air (annual), oxygen storage (by-product from hydrolyser), and heat recovery cir-cuit still must be designed to close the completepolygeneration system. HFP can be used as back-up solution to start the system after shutdown or ablackout and it is not very dependent for the DHSinternal structure. For large-scale module designproper integration with off-grid power (solar,wind) is needed (e.g. Utsira’s experience).

The experience acquired during this project al-lows now extending R&D towards practicalnovel tanks design, where new MH materialsmight be employed besides AB5 and SBH. Bothreversible and non-reversible materials weredemonstrated to be feasible with this system(tank, heat management, balance of plant). In fu-ture safety issues need to re-considered (e.g. ifalanates or the like advanced materials will beused).

Future studies will also include advanced heatmanagement to improve heat recovery (eitherfrom charge/discharge or adjacent fuel cells orBoP components), control system and integrationof the MH storage with practical applications.The work is being continued under framework ofnew national and international projects.

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4.4 Analysis and optimization ofheat exchangers for fuel cells

Markku LampinenHelsinki University of Technology – TKKLaboratory of Applied ThermodynamicsPL 4400, 02015 TKK, Finland

4.4.1 Introduction

A CHP system based on fuel cell technology in-cludes several gas recycling, heat exchanger andtransfer equipments and solutions. However, thelinking of these systems is not well understood oranalysed, although the quality of the linking mayin practise be the decisive issue, that defines theefficiency of the system. In this study fuel cellbased CHP-systems were analysed and opti-mized by thermodynamical methods and tools.

The main objectives of the project were to findout the critical internal linkages of the differentcomponents in fuel cell system based CHP-appli-cations and to analyse and optimise these mutualinteractions in a sense of the total system opti-mum. The study included both the low (PEM)and high (SOFC) temperature fuel cell systemsbut the emphasis was in SOFC systems. The fo-cus of the study was in whole fuel cell system andits components (heat exchangers, reformer, etc.)whereas there was no technical development ofthe fuel cell unit itself.

4.4.2 Work undertaken

There were three work packages in the project. Inthe first work package the thermodynamical anal-ysis (i.e. exergy analysis, entropy analysis, ther-modynamic equilibrium calculations, thermaland mass transfer calculations etc.) of differentsystem possibilities were carried out. During theanalysis the thermodynamic role of the differentcomponents was clarified and after that the opti-mal process parameters and coupling of thewhole system was defined.

In the second work package a feasibility of differ-ent heat exchanger possibilities for the fuel cellsystems were more precisely worked out. The

fuel cells and fuel cell systems have specific fea-tures which may set new kind of limitations or de-mands for heat exchangers compared to moreconventional CHP systems.

The third work package contained an analysis ofdemonstrations or simulations of the fuel cell sys-tem in a CHP application in co-operation withVTT.

4.4.3 Methods

A new optimization procedure was developed.All the processes are assumed to be adiabatic andno pressure losses were considered. The evalua-tion of the system’s quality consisted in theexergy losses in different components. One ex-ample of systems is presented in figure 4.4. Forall the components energy fluxes were definedand calculated taken in account temperature lev-els determined by earlier components:

(1)

where P i the power of the component and sumterms the enthalpies of outgoing and incomingfluxes of the component, respectively. The com-positions of gas fluxes from reformer, fuel celland burner were defined by equilibrium assump-tion, i.e thermodynamically by minimizing theGibbs energy:

(2)

where Gibbs energy G is defined as

(3)

The conventional expression of exergy is pre-sented in an inequality form and with not well de-fined magnitude called ambient temperature. Inthis project a new presentation for the real work-ing power was formulated by combining the firstand second law of thermodynamics and by sepa-rating the system into heat-absorbing andheat-emitting parts:

84

P n h n hi iout

i iin

+ − =∑ ∑! ! 0

dGG

TdT

G

pdp

G

njdnp n T n T p ni i

=⎛

⎝⎜

⎞

⎠⎟ +

⎛

⎝⎜

⎞

⎠⎟ =

⎛

⎝⎜⎜

⎞

⎠⎟⎟

δδ

δδ

δδ, , , ,

G G T p n n H T p n n

TS T p n n

i i

i

= ( )≡ ( )−( )

, , ,... , , ,...

, , ,...

1 1

1

With this new formula a new, system depending,definition for ambient temperature can be foundand a real comparing of different system alterna-tives is possible.

4.4.4 Results

During the project it had become clear that theconventional definition of exergy (loss) is notconvenient to analyse and optimise the system,because the mutual interactions of different com-ponents stay unclear. By using the new expres-sion defined in the project the effect of these in-teraction can be taken into account.

With the optimization procedure developed in theproject fuel cell systems, like in figure 4.4, withseveral different input parameters were analysedand optimized. As an example in figure 4.5 is pre-sented how the incoming mass flow of air affectsto the exergy losses (ie. lost power) in differentcomponents.

In the analysis proved that there is an operationarea, where the system is extremely sensitive toany change in input parameters. On the otherhand the operation parameters can be definedalso so, that the system behaves very stably. A de-tailed analysis of the limits of unstable and stablesituations was made in the project.

From the system components, reformer and heatexchangers were analysed more precisely. Re-former study consists of equilibrium state calcu-lations, temperature, pressure and mole fractionsas parameters. From the reforming technicssteam, autothermal and partial oxidation were in-cluded in the study and from the fuels methaneand (bio)ethanol.

Heat exchangers were studied both thermody-namically and experimentally. The main result oftheoretical consideration was that the exergylosses due to heat losses may easily be 90% of thetotal losses and that heat insulation has to be

85

Figure 4.4. An example of CHP-systems analysed in the project(HE = heat exchanger).

(4)P m h T s w gH h T s w gHin in in in out out out= −( )+ +⎛

⎝⎜

⎞

⎠⎟− −( )+ +− −! 1

2

1

22 2

oout

T

TT

⎛

⎝⎜

⎞

⎠⎟

⎡

⎣⎢

⎤

⎦⎥

+ −⎡

⎣⎢

⎤

⎦⎥−+

−

+−φ σ1

taken seriously. Heat exchangers were also stud-ied in laboratory tests. In the fuel cell based CHP-systemseffective gas-to-gas heat exchangers areneeded. On the other hand commercial heatexchangers are most often gas-to-liquid based. Intests it was found out that the commercial heatexchangers can be used in these systems, but theyneed to be modified. In figure 4.6 is presented amodified gas-to-liquid heat exchanger developedand tested in the project.

Articles

Markku Lampinen, Ralf Wikstén: Theory of effectiveheat absorbing and emitting temperatures in en-tropy and exergy analysis of combined flow sys-tems, Accepted to be published in J. Non-Equi-librium Thermodynamics

Master’s Theses

Xavier Linares Coderch, Literature survey with chemi-cal equilibrium calculations of bioethanol pro-cessing for fuel cells, Master’s thesis, 6.7.2005,65 s.

Paula Tynjälä, Exergy analysis of solid oxide fuel cellsystem.

Student exercises

Paula Tynjälä: Thermodynamic analysis of pre-re-forming methane in SOFC system, CourseEne-39.044 Individual Assignment in ThermalEngineering, large, 2.1.2005.

Outi Engman: Thermodynamic analysis of SOFC-sys-tem, Course Ene-39.018 Theoretical Assignmentin Applied Thermodynamics, 26.8.2005.

Paula Tynjälä: Literature survey with theoretical studyof reaction kinetics and the equilibrium state cal-culations of ethanol steam reforming. CourseEne-39.018 Theoretical Assignment in AppliedThermodynamics 26.1.2006.

86

0

1

2

3

4

5

6

7

0 0.02 0.04 0.06 0.08

mass flow of air (kg/s)

lost

of p

ower

(kW

)

HE1 (air)

HE2 (CH4, H2O)

cell + reformation

burner

total

Figure 4.5. The effect of incoming mass flow of air on the exergy lossesof components and system.

Figure 4.6. Modified gas-to-liquid heatexchanger tested as a gas-to-gas heatexchanger.

Ursula Lirchgässner: Thermal performance of Vahte-rus Plate&Shell heat exchanger for gas-to-gasheat exchange, Special Assignment in AppliedThermodynamics, 8.6.2006.

Kaisu Malinen, Thermal performance of modifiedVahterus Plate&Shell heat exchanger, SpecialAssignment in Applied Thermodynamics, 13.6.2006.

4.5 Development of a 1 KWpower pack concept(POWERPEMFC)2004–2006

Matti ValkiainenVTT Technical Research Centre of FinlandP.O.Box 1000, 02044 VTT, Finland

Electrochemical energy conversion will play akey role in the hydrogen economy for the effi-ciency of the devices is not limited by the Carnotefficiency limiting thermal devices. Thus fuelcell markets are expected to grow substantially inthe near future. Typical early application areasare portable electronics, telecommunication andcomputers, emergency supply especially to com-puter centres and link plus measurement stationsin remote locations: applications, where fuel cellsare competing with primary and secondary bat-teries. Polymer electrolyte membrane (PEM)based fuel cells and hydrogen generators are con-sidered candidates for hydrogen production fromwater and conversion back to electricity. PEMfuel cells are being developed for portable powersources, distibuted power generation and auto-motive power. The main R&D issues are to in-crease the operational life and to reduce the costof the components and systems.

When fuel cells are competing with conventionalcombustion engines the early markets can befound in areas where reduced pollution or otherfeatures add value for fuel cells. Those early mar-kets are military applications and mining vehi-cles. When technology matures it will expand toother traffic solutions, both as Auxiliary PowerUnits (APU) and the main power supplies. An-other major market segment is residential anddistributed combined heat and power. As to in-

dustry, this means possibilities to create new pro-duction and growing turnover. Already today theessential components of PEMFC: proton con-ducting membrane in contact to catalytic surfaceand gas diffusion layer (GDL) are available on in-dustrial scale, which enables the markets to ex-pand to mass markets.

The key cost factors of PEM fuel cells are theelectrolyte membranes, the catalysts and the bi-polar plates used to interconnect individual elec-trochemical cells in series. The long-term objec-tive is to reduce the system cost from 1000–10000 €/kW today to 300 €/kW for distributedpower and working machines and to 50 €/kW forautomotive.

Perfluorosulfonated Nafion® membranes byDuPont are commonly used as the electrolyte inPEM fuel cells and hydrogen generators. Differ-ent alternatives are being developed all over theworld.

In the fuel cell projects VTT’s approach is net-works build up including universities and indus-try. VTT is also actively involved in internationalco-operation, both with EU and other countries.In this report also some results achieved amongstthe consortium co operation are mentioned.

The project POWERPEMFC has been performedin co-operation with VTT and Helsinki Univer-sity of Technology (TKK). The project includeddevelopment of PEMFC bipolar plate design andvalidating the modelled results in a segmentedcell. Construction of a 1 kW power source includ-ing stack and BoP was done and control strategieswere developed. Also bipolar plate materialswere developed, both conductive composites andmetals.

4.5.1 Objectives

It is growing interest amongst Finnish industry toapply PEM fuel cells in various targets. The abil-ity to design and construct a FC stack and a powerpack will profit the application by facilitating al-ready the demonstration and prototype versionwith appropriate fuel cell engine. This projectsupports the application phase of fuel cell power

87

by deepening the expertise in the essential areasof fuel cell operation. Industry will benefit ofthat, when it chooses to apply PEM fuel cells inits applications. The participating companies in-clude those, which are interested in differentphases in the value chain.

The POWERPEMFC-project aimed to the devel-opment of a PEM fuel cell based power pack. Thefirst phase was the power level 1–2 kW, but up-grading to the level of 10 kW was in the programduring the last year. The construction was de-signed series production in mind.

This project was started in 2004 with one yearfunding the work plan being for three years(2004–2006). The continuation in 2007 is underthe name WorkingPEM.

The optimisation of the channel structure of thefuel cell is based on modelling that has been con-structed by TKK Advanced Energy Systems. Thevalidation of the model can be based on seg-mented cell together with the measuring elec-tronics realized at VTT. The optimization of theMEA-GDL-structure has been in the programand reported. The work has included also a studyof the effect of airborne impurities on the FCcathode. This work was made in LANL, USA byMikko Mikkola (TKK Advanced Energy Sys-tems).

A very important component in the stack is the bi-polar plate being also that cost wise. This workhas included the design of the bipolar plate. Thedevelopment of compression moulding of the bi-polar plate is includes in the program. Compres-sion moulded epoxy resin/graphite powder mate-rials have shown excellent conductivity values.Materials for composite bipolar plates have beenwell defined. Very high graphite powder fill rateis possible to obtain with specially designed fullyreactive epoxy resin system. The responsible or-ganisation is VTT.

Metallic bipolar plate materials possess usefulproperties from the point of serial production.The durability of stainless steel materials wereunder study. The pre-selection of durable formu-las was done before characterisation in the fuel

cell environment. The expert organization inmetal properties in this project has been TKKLaboratory of Materials processing and powdermetallurgy. The test includes analysis of conden-sate collected from the gas outgoing from the cell.Also conducting composite material has beentested identically.

The development of the application has beendone by first acquiring the main auxiliary compo-nents of the cell: humidifiers pump for air and thecontrol system together the measuring instru-mentation and constructing a power generatingFC system based on the stack developed in theprevious project PEMFCTEHO.

The second phase has included the design of aminimized instrumentation for the BoP. Thatmeans omitting of any components not directlynecessary and minimizing the amount and costsof the components left. All the necessary compo-nents including current conditioning were con-tained in a compartment and all the instrumentswere equipped with the necessary converters tobe connected to the control system. The responsi-ble organisation was HUT Automation Technol-ogy Laboratory.

The initial idea of the project was based on thefact that the essential component of the fuel cell:MEA production exists in volumes basis and thecustomer can order the MEAs shaped accordingto the stack design. It is thus possible to begin sys-tem development based on MEA and own knowhow. In this paragraph a short summary and con-clusions are made.

4.5.2 Results

Cells and stacks

The initial design of the cell was done in co-oper-ation between TKK Laboratory of Advanced En-ergy Systems and VTT (Figure 4.7). DifferentMEA/GDL constructions were going to be testedin the project in order to know which combina-tion is most suitable for the aimed stack. Becauseof limited availability, the tests were performedwith two combinations. MEA was PRIMEA Se-ries 56 from W.L. Gore and GDLs were SGK

88

10-BB from SGL Carbon Group and Carbel fromW.L. Gore. Based on the results, the recom-mended GDL is SGL 10-BB if the cell tempera-ture is relatively low (60 °C), because it was notaffected by possible too low or high humidifi-cation at that temperature. This also requires thatthe stack cooling system is efficient enough in or-der not to increase temperature of some parts ofthe cell too high. If the cell temperature is higher,the recommended GDL is Carbel.

The MEAs for the cell had been already orderedto be PRIMEA® Series 57 and the gas diffusionlayer Carbel® from the same company. The MEASeries 57 is designed for reduced balance of plantrequirements. It can be concluded that the resultscan be applied also to Series 57 MEA, which ismore tolerant to low humidification than Series56.

The effect of impurities

This work was made in LANL, USA by MikkoMikkola (TKK Advanced Energy Systems). Aircontaminants may affect fuel cell performance bymany different mechanisms. The effect of NaClon PEM fuel cell performance was studied. So-dium is known to replace protons in Nafion®

polymer, thus increasing cell resistance, andchlorine ions adsorb to the catalyst surface, de-creasing the number of available reaction sites. Inthis study NaCl was injected in an operating sin-

gle cell and degradation of performance ob-served.

The results showed that the performance losscould be attributed to changes in proton conduc-tivity due to the displacement of protons from themembrane by sodium ions. The effects of chlo-ride ion on catalysis were not evident, althoughthey could be important under longer and higherpotential operation. The change in proton con-ductivity was not accurately reflected by HFR assodium ion conductivity and ionic conductivityin the electrodes could not be separated.

The amount of NaCl used in the experiments pre-sented here was very large. While the exposuretime was relatively short, the total salt exposurewould be more than most fuel cells could expectto see even under the harshest conditions (marineapplications or stationary devices in coastal re-gions).

Optimization based on modelling

Flow field distribution and end plate structurehave been modelled and a 2-D fuel cell modelthat takes into account the inhomogeneous com-pression of GDL in order to optimize the rib/channel -structure of the flow field plate havebeen made.

The flow field properties of the POWERPEMFC-project cell were studied with a finite element

89

Figure 4.7. The channel structure of the flow field plate.

method based model that was implemented withcommercial finite element software ComsolMultiphysics (previously called Femlab). The re-sults showed that for a parallel flow field design,which typically has an uneven flow distributionin the channels, the channel configuration wasrelatively good. In order to make the flow veloc-ity distribution more even, the distributor channelgeometry was modified. The flow velocity distri-butions in the original and modified distributorchannel geometries were also studied experimen-tally and the results were in agreement with themodelling data.

The main function of the end plates is to offer me-chanical support for the stack. The pressure dis-tribution in the stack resulting from the end plateswas studied with finite element modelling. Theoriginal stack end plates of the POWER-PEMFC-project cell were two centimetres thicksteel plates with a combined weight of approxi-mately 14.2 kg. The results show clearly that de-spite its bulkiness, the current end plate structurecould not provide sufficiently even pressure dis-tributions on the gas diffusion layers of the cell.Different rib structures were tested to improve thegas diffusion layer compression and simulta-neously decrease the end plate mass. When alu-minium was used as the end plate material, signif-icant improvements on both accounts werereached.

In order to be able to optimize the rib/channel–structure of the flow field plate, the effectscaused by the inhomogeneous compression ofGDL must be known. The GDL intrusion into thechannel was measured with several channelwidths and compression values. The evaluationof parameters was done with SGL 10-BA. Thegas permeability as a function of thickness wasmeasured with a purpose-build measurement ap-paratus. A model that can be used in the rib/chan-nel –structure optimization was constructed.

Segmented cell

Anode flow field was divided into 60 segments tostudy current distribution in the flow field area.The measurement technique used in this work tosense the current from each segment is based onthe Hall Effect. The most important result of themeasurements has been validation of the calcu-lated result of the shape of the distributor channel.Figure 4.8 shows the measurement device.

Characterisation of a commercial stacksfrom SGL Carbon and Nedstack

A 5-cell stack from commercial componentsfrom leading suppliers has been assembled.MEAs and GDLs were purchased from W.L.Gore. Bipolar plates, end plates, current collec-tors and other stack hardware were bought fromSGL Carbon. It was observed that the groove

90

Figure 4.8. Measurement device attached to the segmentedcell.

depths had deviations causing uneven pressuredistribution. After replaced by acceptable platesthe 5-cell stack was characterised at 50 C. Testsshowed that flooding of gas channels is a perfor-mance limiting factor, but it can also be reducedby proper flow management. During the assem-bling of the 20 cell stack a mistake was con-ducted. One of the gaskets in one of the end plateswas misplaced, so the stack was disassembledand assembled again. The misplaced gasket had apermanent effect on the performance on the cells18, 19 and 20. Even if the performance was lim-ited by the behaviour of the cells 18–20 the per-formance was sufficient that a power of 1000 Wcould be reached. 1 kW 8-cell pemfc stack fromNedstack was studied as a part of PowerPEMFCproject. Overall performance of the studied stackseems good and no significant problems werefound during tests.

Design of third generation stack withgraphite composite bipolar plates

In 2006 the stack development was redirected sothat the initial cell has been replaced by the onethat allows cost effective manufacturing and as-sembling. Due to requirement of low pressuredrop on the cathode straight channels were cho-sen. On the anode and cooling side conventionalserpentine channels are used. It was possible toget the stack gas-tight and the performance wasacceptable. The cell voltage was 20-30 mV lowerthan in small single cell with the same operationalparameters. This is an excellent result. Pressuredrops were as planned for the gas channels but forthe cooling channels the values were higher thanplanned. Figure 4.9 shows the cathode design.

On the anode side and on the water side the cho-sen geometry was multiple serpentine. The de-signs are shown in Figures 4.10 and 4.11.

91

Figure 4.9. Cathode design and gasket.

Figure 4.10. Anode side

Figure 4.11. Cooling cell

On the water side is possible to use thicket gasketand place a Grafoil layer on top of the water chan-nel. This possibility was used in the project.

Composite bipolar plates

Research at VTT Advanced materials has pro-duced competitive properties for PEM fuel cellbipolar plates. A series of tryouts was made tolearn and define details of manufacturing prac-tices.

Steel bipolar plates

A channel structure was formed on the steel sam-ples by electro discharge machining in order touse the samples in single cell test arrangement.Voltage drop during constant current operationand corrosion metal ions in the exhaust gas con-densate were observed. It was found that the con-centration of corrosion products is more pro-nounced on the anode side. The voltage drop ver-sus time data is from a short period of time (Table4.1).

Development of Instrumentation andBoP for the Power Pack

The first version of the control and measurementsystem has been built around the “old” 18-cellPEM stack developed in the previous project. Thesecond version of the BoP and control system is apre-commercial prototype built inside a cabinet.The BoP and the control system have been set upsuccessfully and tested during operation. Figure4.12 shows the air and hydrogen circuit and in-strumentation.

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Figure 4.12. Air and hydrogen circuit instrumentation

Sample material Voltage drop rate mV/h

Anode Cathode

316 L 1.08 0.18

904 L 0.7 0.4

309 S 0.3 0.4

Composite 0.25 0.13

Reference 0.11

Table 4.1. Voltage drop rate during the bipolarmaterial test. The composite material is madein March 2005.

The one kilowatt system was build around the 20cell SGL stack, Figure 4.13. The nominal grosspower of 1100 W was easily obtained by usingair pulses to drive the excess water out from thecathode channels. The hydrogen stoichiometryhas been varying between 1.1 and 1.2 during thetests.

Net power of the system remains at 900–950Wbecause of the air pump not very economical:~2.4 W consumed at a rate of one litre per min-ute. This leads to the system net efficiency~31–33%.

The prototype BoP could be developed to a seriesproduct after some modifications and additions:especially less energy consuming pump would benecessary. The current inverter needs to be ap-plied depending on the application.

4.5.3 Networking

Participants of POWERPEM were VTT, TKK,Tekes, Labgas, FY-composites, Outokumpu,Wärtsilä, MSC-electronics. International coop-eration included participation in the EU projectFCTestNet during 2003–2005 and the IEA Ad-vanced Fuel Cells annexes IEA-Annex XVIPolymer FC, IEA annex XXI Portable fuel cellsand organisation of CEA/VTT workshops.

1. M. Mikkola et al. “The Effect of NaCl in CathodeAir Stream on PEMFC Performance”, Abstractsof the 205th Electrochemical Society Meeting(9.–13.5.2004, San Antonio, Texas, USA), TheElectrochemical Society 2004.

2. M. Mikkola, T. Rockward, B. Pivovar, F. Uribe,‘The Effect of NaCl in Cathode Air Stream onPEMFC Performance’, Fuel Cells 2007, 7(2), pp.153-158.

3. S. Karvonen, T. Hottinen, J. Saarinen, O. Hima-nen, ”Modeling of Flow Field in Polymer Elec-trolyte Membrane Fuel Cell”, J. of PowerSources 161, 2006.

4. T. Hottinen, M. Mikkola, O. Himanen, I. Nitta,‘Inhomogeneous Compression of Gas DiffusionBacking under Flow-Field Plates’, Abstract, In:Conference Proceedings of The First EuropeanFuel Cell Technology and Applications Confer-ence, p. 106, 14. –16.12.2005, Rome, Italy.

5. Giuseppe Pepe , Jussi Suomela, Matti Valkiai-nen, Jorma Selkäinaho, Steady state optimizationof a PEM fuel cell system operational parame-ters, Poster in First European Fuel Cell Technol-ogy and Applications Conference, 14.–16.12.2005, Rome, Italy.

6. Nitta, T. Hottinen, O. Himanen, M. Mikkola,”Inhomogeneous compression of PEMFC gasdiffusion layer, Part I:Experimental”, acceptedfor publication in Journal of Power Sources.

7. T. Hottinen, O. Himanen, S. Karvonen, I. Nitta,M. Mikkola, “Inhomogeneous compression of

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Figure 4.13. a) The 1 kW Power Pack under test drive b) The controller centre

PEMFC gas diffusion layer, Part II:Modeling theeffect, accepted for publication in Journal ofPower Sources.

8. Modeling and Optimization of PEMFC StackEnd Plates, Suvi Karvonen, Tero Hottinen, JariIhonen, Heidi Uusalo, submitted to Journal ofFuel Cell Science and Technology (2006).

Theses

1. Giuseppe Pepe, Measuring and Control Systemfor an Experimental PEM Fuel Cell, HelsinkiUniversity of Technology, Master’s Thesis 142 p.2004.

2. Heidi Uusalo, Vesijäähdytteisen polymeeripolt-tokennon rakenteiden optimointi ja suoritusky-vyn määrittäminen (Optimization of the structureand determination of efficiency of water cooledpolymer electrolyte fuel cell), Tampere Universi-ty of Technology, Master of Science thesis, 70 p.2005.

3. Suvi Karvonen, 3D Modeling of Flow Field inPolymer Electrolyte Membrane Fuel Cell, Hel-sinki University of Technology, Master’s Thesis49 p. 2005.

4. Timo Keränen, Development of a precommercial1 kw PEM fuel cell power pack, Helsinki Univer-sity of Technology, Master’s thesis 86p, 2007.

5. Mikko Mikkola, Studies on Limiting Factors ofPolymer Electrolyte Membrane Fuel Cell Cath-ode Performance, Helsinki University of Tech-nology, Doctoral Thesis (Dissertation 4.5.2007),ISBN 978-951-22-8589-1, ISBN 978-951-22-8590-7 (PDF), ISSN 1456-3320, ISSN 1459-7268 (PDF).

4.6 The national SOFC projectFINSOFC

Jari KiviahoVTT Technical Research Centre of FinlandP.O.Box 1000, 02044 VTT, Finland

4.6.1 Introduction

The aim of the Finnish publicly-funded solid ox-ide fuel cell program (FINSOFC) is to developtechnology for a SOFC power plant demonstra-tion and to provide a development platform forindustrial enterprises in order to support their de-

velopment work. The program was originallyproposed by Wärtsilä Corporation, which is in-terested in the large fuel cell applications in apower range of 50 kW to 5 MW to be used in vari-ous CHP and marine applications. The programis also supported by several other companies withinterest in different business areas related to theSOFC technology such as production of balanceof plant (BOP) components or utilising SOFCsystems in a wide range of possible applications,e.g. as distributed combined heat and power sys-tems and auxiliary power units (APU). This plat-form development program is managed by FuelCell Group at VTT Technical Research Centre ofFinland.

4.6.2 Objectives

The general objective of FINSOFC is to createpossibilities for SOFC-related business to thecompanies involved in the program. We also offergood facilities for research and education to theFinnish universities. However, the concrete targetof the project is to construct a natural gas fuelled 5kWe SOFC (planar type) power plant demonstra-tion connected to heat and electricity grids andrun it for a long period of time to gain valuableoperational experience.

Description of experimental work

In practise, the program is divided into foursubprojects with own targets, but the targets arelinked to the construction work of the grid con-nected natural gas fuelled SOFC based 5 kWe

power plant demonstration (SOPOP). Thesubprojects are 1) Fuel processing, 2) Characteri-sation of fuel cells and short stacks in real opera-tion conditions 3) System and BOP-componentdevelopment and 4) System modelling.

Fuel Processing

In fuel processing the main fuel choices are natu-ral gas and commercial low sulphur diesel (5ppm) but also bio-based fuels like methanol willbe processed. Autothermal reforming (ATR) waschosen for fuel processing due to the flexibility ofthe technology i.e. the process can be operated insteam reforming (SR) and catalytic partial oxida-

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tion (CPOX) modes. In Finland, natural gas co-mes from Russia and contains mainly methane(97.7 mol-%) and minor amounts of ethane (0.8mol-%), propane (0.3 mol-%), nitrogen (0.9mol-%) and trace amounts of other component(0,3 mol-%) such as higher hydrocarbons andsulphur odorants.

Characterisation of fuel cells and shortstacks in real operation conditions

The characterisation of unit cells and short stacksis mainly done in collaboration with EU IPReal-SOFC project. Cells and stacks are deliv-ered by European developers such as ResearchCentre Jülich (FZJ), HTceramix (HTc) and En-ergy research Centre of the Netherlands (ECN).The purpose of the cell and short stack characteri-sation is to deliver information for system con-trolling purposes; e.g. how the system should becontrolled during load changes and under differ-ent gas compositions. In addition, benchmarkingfor unit cells from different manufacturers hasbeen conducted.

Unit cell test stations (Figure 4.14) have been ac-quired from ECN and they have been modifiedand fully automated for our own purpose by VTT.Humidified (3%) hydrogen, synthetic reformate(H2, CH4, CO, CO2, N2 and H2O), singlereformate component and real natural gasreformate are used as fuels for unit cell testing.Short stack testing facilities (Figure 4.15) are de-

signed and constructed at VTT and hydrogen,synthetic reformate and real natural gas and die-sel reformates can be used as a fuel.

Cell and short stack testing includes for exampleconventional reverse IV-curves, and studies of theload following capability, thermo cycling, degra-dation behaviour up to 4000 hours, fuel utiliza-tion, fuel contaminants, fuel composition varia-tion, impedance spectroscopy and microscopy.

System and BOP-componentdevelopment

The purpose of system development work is todemonstrate a small-scale combined heat andpower plant (CHP) that includes all main BOPcomponents needed in real power plant operation(Figure 4.16). The system operates at atmo-spheric pressure using autothermally reformednatural gas as fuel. Alternatively, hydrogen canbe use as fuel as well during operation or in sys-tem stand-by situations. The system is designedfor a planar anode-supported stack. The first 5kWe stack was delivered by Research CentreJülich.

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Figure 4.14. Unit cell test station. Figure 4.15. Short stack test station.

4.6.3 System modeling

The power plant modelling consists of the prepa-ration of modelling tools for key system compo-nents. The developed tools were implementedinto the Advanced process simulation environ-ment APROS®. APROS, which has been devel-oped for 20 years by VTT and Fortum NuclearServices, offers tools, algorithms and model li-braries for the full-scale modelling of dynamicprocesses with automation systems. An integralgoal of the modelling work is to verify the appli-cability of the developed tools against experi-mental results obtained from the individual com-ponent level up to system scale.

4.6.4 Examples of results

Fuel processing

Reforming of fuels with commercial monolithicnoble-metal catalysts has been performed invarying operating conditions. A natural gas re-former has been operated well for more than10 000 hours as shown in Figure 4.17 and a dieselreformer has been operated well for a shorter pe-riod of time.

Pre-reforming in SOFC applications is necessaryin order to remove the hydrocarbons higher thanmethane, which may coke the anode. Another im-portant aspect of the pre-reforming is to controlthe methane content in the reformate fuel feed.As the steam reforming is endothermic, the stacktemperature can be controlled with the methanecontent. Effective control of the methane contentreduces also the need of excess air at the cathodeotherwise necessary for stack cooling. In the ex-periments, it has been possible to vary the amountof methane in the fuel stream between 0 and 30mol-% in a few minutes. Therefore, the amountof methane is a powerful and fast tool for control-ling the stack temperature during system opera-tion. Reformer is thus not longer only a fuel pro-cessor but it is a part of the system control.

Pre-reforming of diesel has been done success-fully and faradic equivalent efficiencies between75-80% have been reached. The average compo-sition is adequate for SOFC applications (H2 = 35mol-%, CO = 12 mol-%, CO2 = 9 mol-%, H2O =13 mol-% and N2 = 31 mol-%). Only traceamounts of hydrocarbons (ppm-level) could bedetected from the fuel stream. Carbon formationis not a problem during operation, including the

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Figure 4.16. System lay-out of the grid connected natural gas fuelledSOFC based 5 kWe power plant demonstration. The system consist ofplanar 5 kWe stack, ATR, Hex for fuel, air and exhaust gas, catalytic after-burner, power conversion, grid interconnection, automation, measurement,control and safety system.

start-up and shut-down procedures, for this dieselpre-reforming system.

In the case of natural gas, two different methodshave been tested for sulphur removal. Sulphurodorants have been removed before the reform-ing unit by using commercial sulphur absorbentor from reformates after the reforming unit byusing a zinc oxide bed. Both methods have beenfound to be effective enough and no sulphur canbe detected after the sulphur removal units. Inthe case of diesel, sulphur has been successfully

removed after the reformer by using a zinc oxidebed.

Cell and short stack testing

An example of a short-stack test is depicted inFigure 4.18. The purpose of the test was to studythe effect of sulphur on the stack performance.Three different conditions were used during thetest. Sulphur free fuel was used between 0–1000h, sulphur rich fuel (2.8 ppm of H2S) between1000–2000 h, and sulphur free reformate be-tween 2000–3000 h. As can be seen from Figure

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Figure 4.17. The natural gas reformate is well suited for SOFC operation and the main fuelcomponents are hydrogen and methane.

Figure 4.18. Cell voltages during the sulphur tolerance test ofthe short stack. The fuel (H2 = 39 mol-%, CH4 = 7 mol-% N2 = 26mol-%, H2O = 28 mol-%) and air utilisations are 20%, and currentdensity is 0.5 A cm–2.

4.18, sulphur did cause an increase in the cell deg-radation. With the sulphur free fuel, the degrada-tion rate was 6 % (0–1000h and 2000–3000h),and with the sulphur rich fuel (1000–2000 h), thedegradation rate was doubled. Two kinds of sul-phur poisoning could be found: reversible and ir-reversible.

System and BOP-componentdevelopment

The power plant demonstration was started inMay 2006 and the test continued for 7000 h (Fig-ure 4.19). The power plant demonstration pro-duces electricity to the laboratory grid in thepower range of 3–6 kWe depending on the operat-ing parameters.

System modelling

A dynamic system model of the SOFC powerplant demonstration has been composed and itcomprises all main components of the real sys-tem: the SOFC stack situated in a furnace,autothermal reforming (ATR) unit, catalytic af-terburner and anode and cathode side heatexchangers. Additionally, the model includespiping with heat losses along with appropriatevalves and other basic components. Furthermore,basic control systems have been implemented in

the model. Two different models have been usedfor the modelling of the SOFC stack: a 0D-modelrequiring low CPU time and a more accurate1D-model capable of delivering the temperaturedistribution in co- and counter-flow SOFCstacks. The 1D-model has been developed byFZJ and it has been implemented to APROS in atrilateral project between VTT, FZJ and Wärt-silä Corporation. The system model has beenverified against experimental results obtainedfrom the actual power plant demonstration.

4.6.5 Conclusions

Good facilities for research and education havebeen created to the Finnish enterprises and uni-versities. Simultaneously, very successful workin selected areas such as fuel processing, cell andstack testing, system development and modelinghas enabled the construction of a successfully op-erating 5 kWe SOFC based power plant demon-stration.

Impacts

In addition to the general impacts on creating hu-man resources and facilities for the developmentof SOFC technology the project has given strongsupport for Wärstilä and other companies in their

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Figure 4.19. Long period experiments of the power plant demon-stration. Degradation is about 1%/1000 hours at 0.35 A/cm2 whenfuel utilisation is 70%.

development work trough developing modelingand hard ware and educating personnel. Duringthis short period the SOFC research group hasgrown to such international standard that it nowcoordinates an 11 million euro projects includingnine participants from different European coun-tries. Important developments are natural gas re-former, diesel reformer, catalytic after burner,control systems for research facilities and dem-onstration units as well as soft ware tools for dy-namic simulation of balance of plant componentsand the demonstration power plant itself.

Acknowledgement

Finnish Funding Agency for Technology and In-novation, the participating companies, ResearchCentre Jülich and Energy Research Centre of theNetherlands are gratefully acknowledged.

Networking

The FINSOFC project includes four researchgroups from Helsinki University of Technology,research groups from Tampere University ofTechnology and from Technical University ofLappeenranta. It also includes the following in-dustrial enterprises. Wärtsilä, Fortum, Neste Oil,Verteco, Patria Vehicles, Gasum, The FinnishGas Association, EON Finland, Helsinki Energy,Hamina Energy, Joroinen Energy.

European cooperation includes bilateral coopera-tion with ECN in Holland and FZJ in Germany.Cooperation with more than 20 companies andresearch organizations in Europe is realizedtrough the EU projects Real-SOFC andFCTESQA. EU cooperation is also realized troughthe VTT participation in formulating EU FP7strategies by participation in the Strategic Re-search Agenda group in 2004–5 and the responsi-bility of stationary applications in the EU HFPImplementation Panel in 2006.

International cooperation is realized trough theparticipation in the IEA Advanced Fuel Cells Im-plementation Agreement ExCo and the AnnexesSOFC and Stationary Applications.

1. Rolf Rosenberg, Jari Kiviaho, Matti Valkiainen,Posteri, 2002 Fuel Cell Seminar, Palm Springs,California.

2. Reetta Karinen, Diplomityö, “Raskaiden hiilive-tyjen höyryreformointi”, TKK.

3. Pekka Saari, Diplomityö, “Polttokennoyksikönverkkoonliitynnän kysymyksiä”, TTKK.

4. Jari Kiviaho, Suullinen esitys, “SOFC Research,Development and demonstration in Finland”,IEA Annex XIII Meeting 18.11.2002, PalmSprings, California.

5. Timo Hämäläinen, Artikkeli, Kauppalehti Extra22.4.2002, “Polttokenno tähtää kaupallisiin so-velluksiin”.

6. Jari Kiviaho, Suullinen esitys, “Status of SOFCResearch, Development and demonstration inFinland”, IEA Annex XIII Meeting 22-23.9.2003, Juelich, Saksa.

7. Matti Lindfors, Suullinen esitys, “SOFC systemmodelling using ChemSheet simulation model”,IEA Annex XIII Meeting 22-23.9.2003, Juelich,Saksa.

8. Mika Jussila, Diplomityö, “Polttokennokoelait-teiston automatisointi”, TKK.

9. Reetta Kaila, Posteri, “Autothermal reforming ofhydrocarbons to H2", Towards a Hydrogen-based Society- kurssi, 9-5.8.2003, Tanska.

10. TV-esiintymiset mm. “Pallo Halllussa” sekäTV1:n opetusohjelmassa.

11. Jari Kiviaho, Suullinen esitys “SOFC Research,Development and Demonstration in Finland”,IEA Annex XVIII Meeting 1.11.2004, San Anto-nio, Texas, USA.

12. Kiviaho Jari ja Rosenberg Rolf, Fuel Cell Semi-nar, Technology, Markets and Commercializa-tion, Abstract, sivut 5-8, 2004.

13. Sanni Mustala, Diplomityö, “Application of fer-ritic stainless steel as bipolar plates for solid ox-ide fuel cells”, VTT.

14. Kaila, R. K., Niemelä, M. K., Puolakka, K. J.,Krause, A. O. I., Posteri, “Autothermal Re-forming of n-Heptane and n-Dodecane on NickelCatalysts”, 11th Nordic Symposium on Cataly-sis, Oulu, Finland, May, 23-25, 2004.

15. Kaila, R. K., Krause, A. O. I., Posteri, “Steam andAutothermal Reforming of Higher Hydrocar-bons”, 7th Natural Gas Conversion Symp.,Dalian, China, June 6-10, 2004.

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16. Jari Kiviaho, Suullinen esitys, “The Finnish Pub-lic SOFC Research program”, 2004 Fuel CellSeminar, 1-5.11.2004, San Antonio, Texas, USA.

17. Kaila, R. K., Krause, A. O. I., Suullinen esitys,“Autothermal Reforming of Diesel fuel to Hy-drogen Rich Fuel Gas”, 7th Natural Gas Conver-sion Symp., Dalian, China, June 6-10, 2004.

18. Kaila, R. K., Krause, A. O. I., Studies in SurfaceScience and Catalysis: Natural Gas ConversionVII 147, sivut 247-252, 2004.

19. Petri Kanninen, Erikoistyö, “Kaasupulssienvaikutus kiinteäoksipolttokennon toimintaan”,TKK.

20. Electrochemical Characterization and Modelingof Anode Supported Solid Oxide Fuel Cell.Noponen, Matti; Halinen Matias; Kiviaho Jari,Solid Oxide Fuel Cells (SOFC-IX). Eds. SinghalS.C.; Mizusaki J. The Electrochemical SocietyProceedings Volume 2005–07. Pennington, NJ,USA (2005) Vol. 1, 544-553.

21. Durability of Anode Supported Solid Oxide FuelCells on Pre-Reformed Natural Gas. Noponen,Matti; Halinen Matias; Kiviaho Jari; Saarinen,Jaakko, 1st European Fuel Cell Technology &Applications Conference. Editors MorenoAngelo; Lunghi Piero; Bove Roberto. Proceed-ings of the 1st European Fuel Cell Technology &Applications Conference. Rome, Italy (2005) 13.

22. Dynamic Model of 5kW SOFC CHP PowerPlant. Jaakko Saarinen, Matias Halinen, MattiNoponen, Jukka Ylijoki, Jari Kiviaho, 1st Euro-pean Fuel Cell Technology & Applications Con-ference. Editors Moreno Angelo; Lunghi Piero;Bove Roberto. Proceedings of the 1st EuropeanFuel Cell Technology & Applications Confer-ence. Rome, Italy (2005) 96.

23. 5 kW SOFC Power Plant Test Station. MatiasHalinen, Jaakko Saarinen, Jari Kiviaho, MattiNoponen, 1st European Fuel Cell Technology &Applications Conference. Editors MorenoAngelo; Lunghi Piero; Bove Roberto. Proceed-ings of the 1st European Fuel Cell Technology &Applications Conference. Rome, Italy (2005) 11.

24. SOFC System Development in VTT. JariKiviaho, Matias Halinen, Matti Noponen, JaakkoSaarinen, Rolf Rosenberg, 1st European FuelCell Technology & Applications Conference.Editors Moreno Angelo; Lunghi Piero; BoveRoberto. Proceedings of the 1st European FuelCell Technology & Applications Conference.Rome, Italy (2005) 8.

25. Cell testing practise in FINSOFC-project (esitys).Jari Kiviaho, IEA Annex XVIII SOFC Meeting,Quebec City, Canada, 2005.

26. Reduction of cells with reformate (esitys). JariKiviaho, SOFCNET -meeting, St. Andrews,Scotland, 2005.

27. Implementation and verifiaction of a dynamicsolid oxide fuel cell system model -diplomityö.Vesa Ruusunen, TKK, 2005.

28. Kiinteäoksidipolttokennostojen mittausasemanrakentaminen ja automatisointi -diplomityö. Juk-ka Göös, TKK, 2005.

29. FINSOFC – The Finnish National SOFC Devel-opment Program, Jari Kiviaho, Rolf RosenbergVTT, Heikki Kotila Tekes, Erkko FontellWärtsilä Corporation, The European Hydrogenand Fuel Cells, Technology Platform AnnualEvent 17. –18.3.2005.

30. FINSOFC2002–2006, Rolf Rosenberg, Technol-ogy Platform Operation Review Days, Brussels8th-9th December 2005 .

31. Fuel Cell Modeling Activities at VTT TechnicalResearch Centre of Finland. Noponen, MattiInvited presentation: Comsol Users Conference2006. Copenhagen, Denmark. 1 - 2 November2006.

32. Testing of SOFC cells and stacks at different con-ditions. Kiviaho, Jari; Noponen, Matti; Halinen,Matias; Saarinen, Jaakko; Rosenberg, Rolf.Invited presentation: 31st International CocoaBeach Conference & Exposition on AdvancedCeramics & Compositions, Daytona Beach,Florida, USA, January 2007.

33. Dynamic model of 5 kW SOFC CHP powerplant. Poster abstract. Saarinen, Jaakko; Halinen,Matias; Noponen, Matti; Ylijoki, Jukka; Kivi-aho, Jari. Paper accepted to: Journal of Fuel CellScience and Technology, August 2007.

34. Durability of anode supported solid oxide fuelcells on pre-reformed natural gas. Noponen,Matti; Kiviaho, Jari; Halinen, Matias; Saarinen,Jaakko. Paper accepted to: Journal of Fuel CellScience and Technology, November 2006.

35. SOFC System Development in VTT. Rosenberg,Rolf; Kiviaho, Jari; Halinen, Matias; Noponen,Matti; Saarinen, Jaakko. Paper accepted to: Jour-nal of Fuel Cell Science and Technology, May2007.

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36. Experimental Study of Anode Gas Recycling onEfficiency of SOFC. Noponen, Matti; Halinen,Matias; Saarinen, Jaakko; Kiviaho, Jari. Presen-tation accepted to 2006 Fuel Cell Seminar. Hono-lulu, Hawaii. 13–17 November 2006.

37. Characterization and Control of Autothermal Re-former for SOFC Applications. Halinen, Matias;Noponen, Matti; Saarinen, Jaakko; Simell,Pekka; Kiviaho, Jari. Presentation accepted to:2006 Fuel Cell Seminar. Honolulu, Hawaii.13–17 November 2006.

38. Computational determination of suitable opera-tion parameters for SOFC stack at various currentlevels. Saarinen, Jaakko; Halinen, Matias; Gub-ner, Andreas; Noponen, Matti; Ylijoki, Jukka;Froning, Dieter; Kind, Andrea; Kiviaho, Jari.Presentation accepted to: 2006 Fuel Cell Semi-nar. Honolulu, Hawaii. 13–17 November 2006.

39. Finnish Platform for SOFC Research and Devel-opment. Kiviaho, Jari; Noponen, Matti; Halinen,Matias; Saarinen, Jaakko; Rosenberg, Rolf. Pre-sentation accepted to: 2006 Fuel Cell Seminar.Honolulu, Hawaii. 13–17 November 2006.

40. Dynamic Co-Simulation of a Solid Oxide FuelCell (SOFC) and the Balance of Plant (BoP) byCombining an SOFC Model with the BoP-Modelling Tool APROS. Gubner, Andreas;Saarinen, Jaakko; Ylijoki, Jukka; Froning, Di-eter; Kind, Andrea; Halinen, Matias; Noponen,Matti; Kiviaho, Jari. Lucerne Fuel Cell Forum2006 (EFCF 2006). Lucerne, Switzerland, 3–7July 2006. Conference CD. European Fuel CellForum (2006).

41. Installation and Operation of kW-Class Stacksfrom Jülich in External Laboratories. Vinke,Izaak C.; Erben, Reinhard; Song, Rak-Hyun;Kiviaho, Jari. Lucerne Fuel Cell Forum 2006(EFCF 2006). Lucerne, Switzerland, 3–7 July2006. Conference CD. European Fuel Cell Fo-rum (2006).

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5 ICT

5.1 Introduction

It is apparent that technical development ICT andautomation has brought new opportunities for lo-cal power production. On the other hand, whilesmall plants are usually low cost in building, theadded cost of including expensive data communi-cation systems or remote operation systems canbe too much. The combination of new hardware,communication, and software technologies cre-ates opportunities to achieve two-way interactionwith all kinds of power network nodes, customersand customer equipment and to more autono-mous, flexible self-managing (self-configuringand self-healing) system of networks. Thesenovel ICT-enabled solutions will be key contribu-

tors in realizing reliable and efficient power dis-tribution systems with high degrees of distributedpower production.

Data collection and communication in distrib-uted energy systems still vary with plants andfunctions. To some extent these are already auto-matic, but in data processing this is seldom thecase. Some data is still collected manually andeven sent by mail for further processing for statis-tical or custom purposes. However, the develop-ment in the field is rapid and there are various ac-tivities in e.g. the EU-funded programmes. Dueto the rapidly developing data acquisition andtransfer, many new functions are becoming pos-sible. As sites may be small in size and numbers,

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Netcontrol Oy

Netcontrol Oy, which specialises in monitoring and controlling systems for power production andsupply, has developed a local automation system for operating and monitoring power plants andlarge companies in the industry sector. It is also used for monitoring and controlling the grid in rail-way traffic. The innovation was funded by Tekes.

The monitoring and controlling system plays a decisive role in distributed energy systems. Thesystem must constantly signal information on the network’s operability and production, and con-trol new challenges of the energy production in the grid. A failure in the controlling system mayparalyse the entire power supply chain.

Netcontrol’s automation system can be used for monitoring and controlling both the grid and thepower production. Control features enable the registering of the events in the grid in real time, de-tecting problem situations and alarming and reporting them. Additionally, automation operationscan be constructed to quickly locate the failures in the grid and automatically define the point offailure. In power production, the system is being used particularly for the control and optimisationof the production. The system continuously calculates the most cost-effective way of producingpower.

The focus has been in local information traffic between different appliances and between appli-ances and central control unit. The system enables the information traffic of the distributed energysystems and centralised monitoring, control and optimisation of connections. Hundreds of systemshave already been sold in Finland, Norway, Sweden and Estonia.

expensive and sophisticated information systemswill not be rolled out everywhere.

The ICT solutions to provide for such needs al-ready exist today. It has therefore not been the ob-jective to develop new ICT technology, but ratherto apply existing technological solutions in theenergy sector. The fast development in automa-tion in general makes even the latest technologysoon outdated, unless it immediately finds its wayto the marketplace.

5.2 List of projects

Mikkeli PolytechnicDevelopment of automation anddata transfer for small heat centrals

Date of funding decision: 27.5.2004Research project, finished

VTT Industrial ProductionLocal energy resources in distributedenergy systems

Date of funding decision: 26.6.2003Research project, finished

Helsinki University of TechnologyTCP/IP achitecture in control ofdistributed generation

Date of funding decision: 12.6.2003Research project, finished

University of VaasaInformation map for energy systemmanagement

Date of funding decision: 5.6.2003Research project, finished

5.3 Automation and datacommunication for smallheating centrals

Mikkeli Polytechnic

Traditionally, the automation of small boilerplants especially in district heating systems is im-plemented with unit controllers and alarming isoften implemented with a simple one-way alarmsystem. Small plants usually work as a stand-alone unit and are not expensive to build, so it isnot economical to include expensive data com-munication systems and remote operation sys-

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Technology Centre Oy Merinova Ab

Technology Centre Oy Merinova Ab has analysed the possibilities for using mobiletechnologies in controlling interruptions in power supply. The findings show durationsof failures caused by storm etc. can be shortened with help of remote controlling of de-limiters in medium voltage power distribution network. The remote controlling can becarried out by several different technologies.

The foundation of the Merinova research was in the possibilities of data and communi-cation technologies to improve traditional modes of operations used in power supply.The project mapped out remotely used appliances in the grid using telecommunica-tion technologies such as GMS, GPRS, 3G and WLAN.

As a case study, a remotely controlled and monitored model for managing the delimitersin the medium voltage power distribution network was analysed and carried out. Cur-rently, fixing a power failure caused by storm can take hours, especially in the country-side where the power lines are long. For example, if a tree falls on the power transmis-sion line in storm, power transmission must be cut off for the duration of repair.

tems into them. Main goal of this project was toinvestigate the automation and communication insmall boiler plants, and to lower the threshold ofimplementing automation systems and remotecontrolling in small units by designing cheaperand more easily adaptable automation systems.

The basis of the work in the project “Heat data –automation and data communication in smallboiler plants” carried out by Mikkeli Polytechnicwas to find out the current needs and difficultiesin the field of automation systems for small heatand steam boiler plants. A part of this researchwas a communication technology research whichwas done to serve the needs of remote controllingand monitoring of plants and systems.

The goal of the research was to create solutions tohelp automation system and equipment manufac-turers, users of automation systems and technol-ogy development companies to create and adaptcheap, reliable and profitable automation sys-tems for small units. An important task in achiev-ing this goal was to design a reliable and exactalarm information system and a two-way com-munication system.

The first phase of the project was to find out theactual needs and problems currently arisingwithin the energy companies and automationmanufacturers. Three individual researches fordifferent types of boiler plants were done by in-terviewing a large variety of companies and com-bining the results together. This research clearlyindicated that the interest and need to develop andmake use of automation systems, alarm systemsand communication systems was real.

With the help of a study about automation sys-tems and their usage in heat supply systems andboiler plants, research has been done in severaldifferent business areas to find out the actualneeds and requirements of automation systemsand to design solutions to those.

A research about communication systems anddifferent possibilities to transfer data betweenunits and controllers was done by comparing dif-ferent data transfer technologies, their advan-tages, disadvantages and costs and by designing

and describing a reliable and secure wirelesscommunication system to be implemented withina heat supply system.

This project adds valuable information about newproduct and service possibilities to companiesoperating at the energy and automation industry.The project produced several research reportsand implemented pilot projects to test the re-search results in practice. The needs and possibil-ities of developing automation systems in boilerplants where analyzed including customers’needs. Current automation systems and their us-age in heat supply systems were evaluated withthe possibilities for wireless communicationtechnologies to be used in the controlling of a dis-trict heating system.

The actual research- and development caseswhere specifically targeted at the enterprises in-volved in the project.

A pilot project to combine heat system automa-tion to existing real estate automation system andto enable remote controlling and monitoring of aheat plant was carried out as was a pilot project toimplement a reliable communication system tobe used in remote controlling and monitoring.

The results of this project serve energy compa-nies in their daily operation and for the manufac-turers, increase the potential of designing newproducts and systems to both Finnish and exportsales. With the help of the research results, manu-facturers of boilers, boiler plants and automationsystems can develop their products to be morecompetitive and gain more possibilities to selltheir products, automation equipment and soft-ware. Real estate automation manufacturers canwiden their area of business to the heat supplysystems. Co-operation of boiler automation andbuilding automation systems brings advantage toboth parties.

The pilot projects were implemented in an actualenvironment and within real use cases, so the re-sults provided real-world information about thecurrent situation in the energy enterprises, the ac-tual needs and problems to be solved and finally,tested solutions to those problems.

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5.4 Management of local energyresources in distributedenergy systems

VTT, Technical Research Centre ofFinland

Society is utilising more and more informationand communication technologies and it is be-coming more dependent on reliable energy re-sources. There will also be more distributed en-ergy resources connected to the electrical net-work. The coordinated management and automa-tion of such resources becomes more importantand includes new challenges and possibilities.Distribution requires new ways of working andmanagement of processes producing integratedadded value. In the area of distributed energythree commercial levels can be seen: servicessupporting the business and business networks,management and utilisation of local energy re-sources and control of individual production andconsumption units. Information and communica-tion technologies and automation are essential ingaining the aims and in developing the means andtools for controlling this kind of systems (produc-tion, transfer, distribution, storage, use).

The aim of the project “Management of local en-ergy resources”, carried out by a consortium ledby VTT was to describe the area of distributed en-ergy systems and identify the most important sys-tems and implementation concepts related tothem. The focus of the research was on systemsless than 500 kW. New and emerging businessmodels and implementation methods were uti-lised and taken as a starting point. Descriptions ofcases of distributed energy systems were used toconcretise the areas of the research.

Development needs and opportunities

It is a challenge to make small generation con-nected to the distribution network economicallyfeasible. Development in automation and ICT,however, brings some opportunities that on a me-dium long term might change the situation. Themost difficult issue is to find a path to develop the

necessary technologies, as they are based on a de-veloped infrastructure and far standardised basicsolutions.

For developing energy management systems, anopen architecture is of vital importance. Thisbrings new components and brings competitionthat can drive costs down. Also, it must be possi-ble to combine different components such thatcontrol, maintenance and trade functions cansupport each other. Continuously advancing ICTa will drive this development.

Grid connection has long been a tumbling stonefor distributed generation. Although there hasbeen a change in the tariff system, there is still aneed for cheap solutions based on readily avail-able components and semiconductor technology.Rather the demand is on the side of the networkoperator. Distributed generation requires ad-vanced standardised solutions that are not pres-ently available although work is in progress. Thefast development in automation in general how-ever makes new standards soon outdated, whichis a challenge.

In addition to technology, also new businessmodels are needed to create functional businessnetworks. Also operational processes are to bedeveloped and tested. There is also a need to de-velop model for contractual agreements withinthe value chains. The contractual status of an in-dependent power producer is weak.

It is apparent that technical development ICT andautomation has brought new opportunities for lo-cal production. The remaining problem is to findan infrastructure where these solutions can beplanned and operated feasibly. As there are anumber of technologies approaching break-through, it would be practical to create a focusedstrategy for piloting and monitoring new energysystem solutions. Such a system would includestandard solutions for grid integration and meter-ing and demand side management of both powerand heat to optimise production. The ICT solu-tions to provide this already exist today.

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The ambition has been to identify and lay thegroundwork for industrial development projectsin the field. These could most feasibly advancethrough pilot demonstrations of small scale gen-eration. At best, these would also show how a net-work of small specialised companies can operatean advanced system. Possible sites where distrib-uted generation could be combined with researchand monitoring activities should be mapped in or-der to enable monitoring the joint activities offree agents on the energy market. Such a mappingcould also support a higher grade of automationin small-scale generation and would be necessaryfor the advancement of any Plug&Play-solutionin grid connection.

5.5 TCP/IP-architecture incontrol of distributedgeneration

Helsinki University of Technology

The data communication requirements and capa-bilities of distributed energy resources vary todaya lot with the considered type of power plant andinformation. Much of the reporting is still donemanually for statistics or state authorities for ex-ample. However, the branch is developing fast,with demonstration and R&D projects in nationaland EU research programmes.

The production of a power plant is basic informa-tion used in energy trade, grid tariffs, taxation,production statistics as well as grid and electricitysystem operation. With an advanced billing me-tering solution, active and reactive power as wellas power quality and power failures could bemonitored. The monitoring and control of distrib-uted power plants is developing towards remoteuse and condition monitoring. This increases theamount of data communication and the needs fordata analyses. The meteorological conditionscollected by the power plants can also be used forsimulations models and statistics. Advanced datacommunication solutions can further be used forautomatic alarms and fuel delivery applications.

The ambition in the project “TCP/IP- architec-ture in distributed generation control” carriedout by a team led by the Helsinki University ofTechnology was to organize a multi-level proto-col for flexible joint organisation of several com-munication networks in one system. The workaimed at defining the possibilities and needs fordata communication and screening thus possibleservices. Thus service business opportunities re-lated to distributed generation can be identified.

Data collection and communication in distrib-uted energy systems still vary with plants andfunctions. To some extent these are automatic,but data processing seldom is. Some data is stillcollected manually and even sent by mail for fur-ther processing for statistic or custom purposes.However there is rapid development in the fieldand there is a lot of activities in e.g. the EU-funded programmes.

The most interesting feature is of course produc-tion data, being a principal magnitude in energytrade, network and system control, cost alloca-tion, taxation, statistics, etc. In addition, it is of in-terest to owners, shareholders, O&M and otherservice providers. Energy metering is often dou-ble and stored in as well the plant controller as inbilling meters. It can be read on site or remotelyand is further processed according to needs.Some critical operations require real-time infor-mation on production, whereas others use onlycumulative figures hourly or monthly. Centraland even automated processing would makemany things easier. With developed metering,many other things than just active and reactivepower can be metered. Most important are fea-tures related to power quality and information ondisruptions. Such multi-purpose solutions shouldbe used instead of having separate sensors, me-ters and communication tools. In distributed gen-eration there is in general a need or an opportu-nity for more efficiency and for cost-cutting solu-tions in data acquisition and processing.

Another important part is plant control and man-agement, where remote solutions are being moreprominent. This significantly increases the

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amount of data and analysing. So far, small unitshave operated unilaterally, without regard forsystem needs. With more and more local produc-tion it will come under control of the distributiongrid, energy system or producer. In addition toproducing active power, plants can contribute toreactive power control or other predetermined ofreal-time guidance.

Condition monitoring will become more ad-vanced as technology is developed, componentsbecome cheaper and self-diagnosis of compo-nents will be usual. If data is processed ands ana-lysed to the extent that an alarm is sent to a centralcontrol only in abnormal cases, the amount datacommunication is significantly reduced. Remotecontrol as a function or even outside service willthus become more general.

Other features are information on plant opera-tions that can be used in models, statistics andpublic information. In addition, data communica-tion can be used for fuel deliveries and program-

ming automatic alarms. Metering systems anddata has to be compatible with other used for-mats. There is no point in creating new protocols,but it is in the interest of e.g. the grid operator, thatproduction data has the same format as consump-tion data. Weather data should be compatiblewith information from weather stations etc.

Paikallisten energiaresurssien hallinta hajautetussaenergiajärjestelmässä. Valkonen, Janne; Tommi-la, Teemu; Jaakkola, Lauri; Wahlström, Björn;Koponen, Pekka; Kärkkäinen, Seppo; Kumpulai-nen, Lauri; Saari, Pekka; Keskinen, Simo; Saaristo,Hannu; Lehtonen, Matti. 2005. VTT, Espoo. 87 s. +liitt. 58 s. VTT Tiedotteita - Research Notes: 2284.ISBN 951-38-6532-0; 951-38-6533-9.http://www.vtt.fi/inf/pdf/tiedotteet/2005/T2283.pdf.

Hajautettujen tuotantolaitosten tiedonsiirtotarpeet ja-valmiudet. Lemström, Bettina; Holttinen, Han-nele; Jussila, Matti. 2005. VTT, Espoo. 62 s. +liitt. 10 s. VTT Tiedotteita - Research Notes: 2283.ISBN 951-38-6529-0.

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6 Manufacturing technology

6.1 Introduction

One of the promises of small-scale generationlies in being able to utilise developed industrialmanufacturing to move from economy of scale(i.e. large power plants) towards economy ofnumbers (i.e. large number of power plants) andthus significantly reducing costs. At the sametime, it needs to be understood that the advancedmanufacturing solutions need big markets to payback the investments.

Although industrial manufacturing was one ofthe most active areas of the programme, only tworesearch projects were financed. Also, these werenot pure research projects but to a large extentproject pre-feasibility activities, where eventualideas for development projects were pre-as-sessed. However, the ideas and concepts pre-sented in these projects have to some extent beencarried forward in the various industrial develop-ment projects.

6.2 List of projects

VTT, Technical Research Centre of FinlandMaterial and manufacturing technologiesin small and medium sized boilers

VTT, Technical Research Centre of FinlandAdvancing the competitiveness ofdistributed energy systems

Ilola, R, Juvonen, P., Virta, J., Eklund, P. ja Flyktman,M., Pienten ja keskisuurten polttokattiloiden ma-teriaali- ja valmistustekniikat. TKK RaporttiMTR 1/05, Espoo, 15 s.

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7 Business models

7.1 Introduction

From the national point of view, the main chal-lenges and goals for the Finnish companies andother organizations are to find out the way to pen-etrate into the changing value chain through thenew business models. According to the pre-analysis5 for Tekes, DENSY technology programwere recommended to be directed to the follow-ing three main areas:1. Design and development of products and pro-

duction technology that is suitable for smallscale systems, high volume production andalso consumer markets.

2. Development of networked business modelsand networking among producers of distrib-uted energy systems and related services.

3. Research and development of advanced tech-nology in the field of distributed energy sys-tems.

The same Report1 shows that the main interestsfor the DG business and technology developmentin surrounding EU countries, e.g. Germany, Swe-den and Denmark, lie principally in the renew-able sector. Biomass installations already featureprominently, where on-site generation offeedstock is available, and windpower is increas-ing. The use of gas turbines, gen-sets and otherDG technologies will also feature within theoverall power mix, whether it be grid-connectedor stand-alone, although only where it is econom-ically prudent or necessary. It is believed thatrenewables will account for a major proportion ofthe DG energy-mix along with substantialamounts of new technologies, such as fuel cellsand MCHP contributing to the general equation.

On the other hand, according to the Report1, envi-ronmental considerations will come to play an in-creasingly important role in the formulation ofenergy policy. In the new EU countries, e.g. Po-land and Estonia, the market for distributed gen-eration systems is in its infancy but will grow at arapid pace over the next five years. Distributedgeneration is able to bridge part of the capacitygap potentially left by the closure of inefficient,pollutant coal fired plant. As small-scale facili-ties require a smaller amount of initial investmentthan large power plants, more investors qualifyfor entering the power generation market. Ac-cordingly the market for distributed generationsystems will show impressive growth.

The market seems to be very prominent for theDG service and technology companies. However,there are some major restrictions1 or even barriersfor them. The existing energy generation and dis-tribution systems and investments are still havinga major role in energy production through thelarge capacities developed and available in thehydroelectric and nuclear power sectors. DG willstruggle to compete with the grid electricity. Inaddition, market liberalization is not yet a drivereither in Finland, as in many EU countries still re-tain a monopoly in power production and distri-bution. So far, DG is limited to some small hydropumps and stations that provide both baseloadand peakload power as well as limited amount ofwind capacity in the remote area of the country.Currently, with cheaply available electricity, theopportunities for large-scale business in DG in-dustry are not abundant.

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5 Frost & Sullivan and Electrowatt-Ekono, 2002.

Penetrating into the misty future

As it has been shown1, the DG market is stillemerging and it needs very strong leadershipfrom the large leading companies, and especially,a radical intervention of the authorities to makemarket increase faster. DENSY Programme hasbeen an opportunity to penetrate into the DG

business being as an accelerator for the develop-ment. DENSY Programme consists of four mainresearch areas through which TEKES has beensupporting the development of the DG businessin Finland. The focal areas of the Programme areshown in Fig. 7.1.

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Partnering in the UK

Tekes, Finpro, Helsinki School of Economics (HSE), Motiva and nine small to mediumsized enterprises in the energy sector started a project aimed at mapping out best oper-ating models for exports and finding local partners.

The purpose was to promote Finnish enterprises’ access to the UK market. In the col-laborative project the market is approached using new models of operation. Also, theinternationalisation of small and medium sized enterprises is studied in theory andpractice. HSE is keeps track of the project, consults enterprises as needed and pub-lishes an academic study and a publication directed to the enterprises. The target is tocreate an operation model for internationalisation that can be largely applied.

There are nine Finnish enterprises in the project : Hydrocell Oy, Alufer Oy, LaatukattilaOy, Netcontrol Oy, NHK-Keskus Oy, Process Vision Oy, Puhdas Energia Oy, VapoEnergia ja Verteco Oy.

In the UK, Hydrocell was looking for a larger market than Finland for its fuel cells. Once asuitable partner had been found, the sales started, too: Hydrocell supplies fuel cells tobe used as power sources for fuel cell bikes and scooters as well as in different measur-ing systems.

”We want to find applications with large volumes in order to achieve the benefits of vol-ume production. For example, with regard to the fuel cell bikes, we want to establish di-rect contacts through the entire value chain, from the bike manufacturer to the retailer. Inthe future, the cells will be installed in the bikes at the factory”, says Hydrocell’s CEOTomi Anttila.

Figure 7.1. The focal areas of the DENSY program, Tekes.

In the business concept research of the Pro-gramme, several research projects (Fig. 7.2) havebeen conducted to create new knowledge of fu-ture business opportunities, to form optimal busi-ness concepts, and to make demonstrations forbusiness use.

The overall scope of the research projects:• Define value chain, business opportunities,

and customer benefit

The main Objectives of the research projects:• Commercialization of new technologies

and services• Formation of business networks• Benefiting from the changing business

environment

According to the following research projects, thebusiness development of the DG is mainly relatedto the investments in existing systems and the in-tervention of the authorities. The future businessdevelopment depends on the saturation point ofthe returns of the present investment. In otherwords, the business will increase when the re-turns of investments in new DG technology willbe more profitable than the past and present in-vestments.

This inflection point can also be affected by theauthorities. According to the research projects,the most potential and strongest way in generat-ing new business is to force companies utilizenew technology through the legislation. This con-cerns only the areas with the well-developed in-frastructure. At the same time, there are areaswhere such dilemma does not exist, e.g. Africa,South-America, and Far East. Due to that they areable to pass obsolete technology and can directlyutilize advanced Distributed energy generationtechnology.

In the following chapters, several business ori-ented research projects of DENSY Programmeand their main findings will be introduced. Themain interest in business research was to revealfuture business opportunities for the companiesand to test them among the business network. Inthe first part, the development of the DG businessopportunities and the main drivers for them willbe discussed and the new business models for theutilization of the opportunities will be shown. Inthe second part, several business and technologydemonstrations will be introduced. Finally, themain findings and future challenges will be pre-sented.

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The scenarios of distributedenergy generation and theirimpact on business models

Business in distributedenergy generation

Business creation withnew concepts in

the intersection of industries

Competition andco-operation between

Finnish and Russian enterprises

SC-Research Integratedsolutions for distributed

energy sector

Life span of the value chainin bio gas based distributed

energy generation

Technology and businessEnvironment-friendly energy

solutions and eco-efficient society

Eco-efficientbuilding and living

EHJ concept forthe distributed CHP

Project groupBusiness Concepts

Figure 7.2. The business oriented research projectsin Densy Programme.

7.2 List of projects

Lappeenranta University of technology,Technology Business Research CenterBusiness creation with new conceptsin the intersection of industries

Date of funding decision: 7.2.2006Research project, ongoing

Tampere University of TechnologyElectricity network business development,part 2/3

Date of funding decision: 6.5.2004Research project, finished

Lappeenranta University of Technology,TelecomBusiness Research Scenarios fordistributed generation

Date of funding decision: 22.4.2004Research project, finished

University of Vaasa, Lévon-instituteBusiness models in distributed generation

Date of funding decision: 22.4.2004Research project, finished

VTT ProcessesMULTIPOWER development platform

Date of funding decision: 15.4.2004Research project, finished

Lappeenranta University of Technology,Research Centre for the NCompetition and co-operation betweenFinnish and Russian companies

Date of funding decision: 18.3.2004Research project, finished

Kymenlaakso PolytechnicEnvironmentally benign eco-efficient society

Date of funding decision: 22.12.2003Research project, ongoing

Seinäjoki Polytechnic, SC-ResearchIntegrated solutions for distributed energysector

Date of funding decision: 18.9.2003Research project, finished

VTT Building and TransportEco-efficient construction and housing

Date of funding decision: 26.6.2003Research project, finished

VTT ProcessesAn Energy Management System fordistributed co-generation

Date of funding decision: 18.6.2003Research project, finished

Tampere University of TechnologyEnergy logistics

Date of funding decision: 18.6.2003Research project, finished

7.3 Future businessopportunities in the field ofdistributed energy systems

7.3.1 The future businessdevelopment and potentialmarkets

Lappeenranta University of TechnologyTBRC ”Hajautetun sähköntuotannontulevaisuusskenaariot ja vaikutuksetliiketoimintamalleihin”, Research project

The background of the project

The liberalization of the energy market opens upa variety of business opportunities for new actorsin the various phases of the value chain of the en-ergy generation. Besides large projects in energygeneration, the need for the development ofsmall-scale and local solutions is greatly increas-ing all over the world. The growing demand forenergy, the utilization potential of local energyresources, the profitability of the combined gen-eration of electricity and heat and the develop-ment in renewable energy techonologies drive theexpansion of distributed energy generation. Atthe moment in Europe, the market for distributedsystems is increasing by 15% on a yearly average,and in undeveloped markets the increase has evenbeen many times faster.

The business potential and appeal of distributedenergy (DE) systems are strongly enhanced by

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global trends: securing of basic welfare, in-creased importance of environmental values, lib-eralization of the energy market, development oftechnology, depleting of fossil energy sourcesand growth in the demand for renewable systemsand cogeneration.

The decrease in fossil fuel resources and the re-sulting increase in the costs for centralized gener-ation along with strong environmental values en-courage the development of DE systems technol-ogy. There is also need for the development ofbusiness so that the potential demand for technol-ogies could be attained. When developing busi-ness operations, it is especially important to no-tice in what direction the demand and the marketwill change in the future. Some of the most re-markable future trends in this sector are the ever-growing need for energy and securing of basicwelfare in the fast developing and newly-indus-trialized countries. In the future this may lead to agrowing demand for DE systems of which themarket has already showed some signs.

The main targets of the project

The DE business sector is composed of local sys-tem technologies in the generation of electricity,for heating and cooling purposes and related ser-vices. The field covers a wide array of fuels andproduction technologies which are characterizedby small scale and short distances to consumptionunits. The Densy technology programme withTekes, the Finnish Funding Agency for Technol-ogy and Innovation, focuses on generation unitsfor individual buildings, town blocks or factoriesand systems catering for them. The maximumsize of these installations varies between 10 to20 MW.

The objective of this report is to examine the cur-rent techno-economic state of DE systems, todetermine the sector’s future business develop-ment paths and to find new business opportuni-ties for Finnish companies up till the year 2019.Commercial opportunities will be presentedwith new business concept descriptions. Fur-thermore this report proposes to evaluate thecommercial potential of DE systems particu-larly in developing countries, where extensive

distribution networks are still non-existent, and toprovide companies with suggestions and adviceto exploit this potential.

Methodology of the project

The Tekes Distributed energy systems technol-ogy programme (DENSY) studies local small-scale systems for energy conversion, generationand storage and related services. The two-yearstudy described in this report is part of theDENSY programme and conducted in co-opera-tion with the Technology Business ResearchCenter (TBRC), Tampere University of Technol-ogy (TUT) and VTT Technical Research Centreof Finland. The objective of the study has been tofind future commercial opportunities and busi-ness models for DE systems from the perspectiveof Finnish companies by the means of scenariostudies and techno-economic analysis.

The first phase of the study has concentrated onthe potential of renewable energy sources and thetechnologies exploiting them and producedroadmaps starting from the current state of all thesix subject themes (Lehtinen & Wahlström,2005) which propose to identify the direction ofcurrent development from a technological per-spective. The techno-economic analysis con-ducted on the basis of a technological prospectsanalysis on distributed generation defines ourcurrent understanding about the costs of technol-ogies utilizing different energy sources.

In addition to the technological prospects analy-sis, the first phase produced alternative scenariosfor DE business development from the perspec-tives of both the experts and the actors. These sce-narios created business ideas for new commercialexploits. The opportunities revealed in the alter-native scenarios and created by the technologyenable Finnish actors to challenge their currentoperations and develop new business models.

The second phase of the study aimed to find newapproaches to future operation with business con-cepts. We examined business models and ana-lyzed factors that have to be taken into accountwhen planning new operations to develop com-mercial opportunities in the new market. Based

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on this we have created a concept that describesbusiness models for new DE systems. This sameconcept can also help evaluate the current busi-ness models of companies operating in the field,providing information about the structure of cur-rent operations. This information can be furtherutilized when creating new business concepts anddrawing conclusions about the sector’s state.

In order to develop business and technology wehave to know the market and its trends. Thereforewe have analyzed the current state of the marketand the development of the future business envi-ronment by making market reports based on ex-isting market studies and other sources of data. Inaddition to understanding the market, we can il-lustrate the size of the demand for DE systems,which gives companies a better chance to identifythe latent commercial potential in the market.

7.3.2 The technology potential forthe business and the futurescenarios

The main results

The liberalization of the energy market in theNordic countries and elsewhere in Europe hascreated a variety of commercial opportunities fornew actors in the various phases of the powerchain. Besides large projects in power genera-tion, the need for the development of small-scaleand local solutions is greatly increasing all overthe world. The growing demand for energy, theutilization potential of local energy resources, theprofitability of the combined generation of elec-tricity and heat and the development in renewableenergy technologies drive the expansion of dis-tributed energy generation.

When developing operations, we need to takeinto account particularly in what direction the de-mand and markets will change in the future.Some of the most prominent future trends in thesector are the securing of basic welfare, increasedimportance of environmental values, liberaliza-tion of the energy market, development of tech-nology, depleting of fossil energy sources andgrowth in the demand for renewable energy sys-tems and cogeneration. In the future this may lead

to a strongly growing demand for DE systems ofwhich the market has already showed some signs.At the moment in Europe, the market for distrib-uted systems is increasing by 15% on a yearly av-erage, and in undeveloped markets the increasehas even been many times faster.

Based on the technological prospects analysis,the most attractive technologies from the per-spective of Finnish actors were wind power,microhydropower, diesel and gas engines and bioenergy, whereas the most interesting market areaswere the EU-15, Russia, India and China. Thecreated business concepts for each sector pre-sented commercial opportunities for both systemproviders and component suppliers. Based on thescenarios and market analyses, the future marketalso presented opportunities for new service in-novations which should be implemented as partof the business models for distributed systems.

The realization of DE system operations howeverrequires from the companies the will to invest inthe development and launch of new business ac-tivities. Therefore it is important for the compa-nies to understand the magnitude of latent poten-tial in the market to evaluate the profitability ofinvestments. Depending on the risk-taking abil-ity, this entails a strategic choice of either an of-fensive or defensive stance in the research and de-velopment of the technology as well as of busi-ness operations.

Easy and safe connection of DE systems to thepower grid is a central factor in developing themarket. Converting from conventional radial andone-directional power transmission to a situationwhere the direction of electric current maychange and power failures may lead to power be-ing blocked behind the failure, is a remarkablechallenge for current protection logics and auto-mation. R&D is needed all the way from protec-tion philosophy to developing and testing practi-cal solutions.

In addition to widely recognized technologies,such as wind power, the growing market for dis-tributed generation offers significant commercialopportunities for rather traditional fields of en-ergy technology, such as biomass combustionand microhydropower. Finnish expertise in com-

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bustion technologies should be supported andtransformed into a business activity more effi-ciently. Microhydropower could also offer com-mercial opportunities for Finnish actors, eventhough business operations are at the momentlimited. In addition to conventional technologies,we also have to consider investing into future so-lutions, of which solar panels appear the mostpromising area.

The report has examined distributed generationand distributed electricity generation in particu-lar based on technological development pros-pects, analyses of cost efficiency and trends in fu-ture business operations. The study has providedfour alternative scenarios and potential serviceconcepts for the DE sector. Furthermore the re-port presents new business concepts for Finnishcompanies in the future market for distributed en-ergy systems.

7.3.3 The main findings andfuture challenges

When developing companies’ operations, furtherstudies on the commercial prospects of DE sys-tems could focus for example on finding out howto create efficient value networks that enable thecost-efficient supply of systems and related ser-vices into the global market. Additionally, thenext step from modeling sector-specific opera-tions could be to create company-specific busi-ness models. Realizing these would require deepunderstanding of the changes in the sector andspecifically of the linkages between the sectors,namely of the convergence, and making internalcompany analyses and recognizing the compa-nies’ strategic resources.

Based on the technological prospects analysis,the most attractive technologies from the per-spective of Finnish actors were wind power,microhydropower, diesel and gas engines and bioenergy, whereas the most interesting market areaswere the EU-15, Russia, India and China. Thescenarios proposed to create descriptions aboutthe future business environment so that factors af-fecting future operations and markets could bebetter taken into account when planning businessoperations. The created business concepts for

each sector presented commercial opportunitiesfor both system providers and component suppli-ers. Our study recommends investments in bothof these. The future market also presented oppor-tunities for new service innovations which couldbe implemented as part of the business models fordistributed systems.

Companies should particularly follow the devel-opment of laws regulating the energy sector in thetarget market and the advancement of interna-tional treaties like the Kyoto Protocol. Countries’aspirations to pursue more environmentallyfriendly technologies can quickly change a tech-nical solution to an economically viable form ofproduction. In such a case, companies should beready to respond to the demand quickly so thatthey are not left outside the market. It is also im-portant to take into account natural conditions indifferent areas which may have a profound im-pact on the choice of optimal production technol-ogy. The choice of technology offered to the mar-ket is also essentially influenced by the state ofthe local infrastructure and the availability of fu-els and primary energy.

With regard to technology, Finnish companiesshould in particular concentrate on new technol-ogy and high quality, because many conventionalpower plant components will be manufacturedmore cost-efficiently and locally in the countriesof developing economies. New ICT systems spe-cifically can offer companies the possibility todistinguish themselves from their competitors bytechnology. With DE systems, ICT and automa-tion provide new prospects in developing highlyautomatized units which can utilize small localresources as a complete optimal solution. For ex-ample, it can be stated that a component in a DEsystem should be highly standardized, un-manned and remote-controlled. Standardizingenables big outputs and thus lower prices and alsosupport the components’ maintenance and con-nection to the grid. (Lehtinen & Wahlström,2005) Besides standardizing, companies can ben-efit from bigger outputs thanks to modular com-ponents. The impact of these components on pro-duction will unfold over time when clients start tosupplement and update their modular systems al-ready in use.

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The business concepts and models revealed theimportance of value network management forsystem providers. The delivery of a product/ser-vice concept that is as cost-efficient as possiblerequires optimizing the entire value chain. Com-panies will have to choose, for example, the mostsuitable ones from different means of export, andto utilize local production resources when possi-ble. Companies also have to face such strategicdecisions as what to outsource and what to pro-duce in-house. In the best possible scenario, com-ponent suppliers could multiply their turnover bytransforming themselves into system integrators.This strategic choice however requires a success-ful gathering of local component suppliers to-gether to form an efficient enough value networkand to enable commercial activities. Integrationknow-how and system supplies are part of theFinnish high technology strategy.

7.4 Business potential in the fieldof distributed energygeneration

University of Vaasa, Lévon-instituuttiLiiketoiminta hajautetussa energiantuotannossa.Funding decision day: 22.4.2004.Research project)

Business in distributed energy production was aprogram consisting of six separate but synergicprojects with collectively shared objectives, theo-retic background and vision of distributed pro-duction of energy by renewable regional sources.One of the aims was also to integrate the energyrelated expertise and strengths of the different in-stitutes and disciplines in the University of Vaasa.

The objective of the project program was to out-line business models for distributed energy pro-duction, including their contents and dependen-cies on the different dimensions of the prevailingoperational environment. In defining the businessmodels, particular emphasis have been devoted tocompetitive and resource environment and thevalue expectations of the potential clients. An in-tegral part of the analysis is the objective to try tounderstand the models as parts of the whole of en-

ergy production and energy markets, as well asthe regional and local economy.

The frame of the program was based on a “heli-copter view” and outlining frame of distributedenergy production and its typical situations,mainly based on the demand of energy and thesupply of renewable energy sources in relation tothe position in the energy infrastructure. In eachsituation we can outline an operational concept(Fig. 7.3).

According to it every local or regional unit al-ways has to consist of several components, whichmust be integrated into one energy production so-lution. In each solution there are business eco-nomically profitable parts. However, it is essen-tial also to distinguish and define the supportingcomponents surrounding the business environ-ment, enabling the social acceptance and feasibil-ity in terms of both regional and local economy.

The research was conducted as 11 different casestudies in the county of South Ostrobothnia. Allcases were real biogas plant objects under a plan-ning procedure and consideration of investment.

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Figure 7.3. The operational concept fordistributed energy production.

The project was partly financed by the companiesinvolved in the cases. The research and its meth-odology was conducted as follows:• Formation of the business concepts and

economic modelling of the cases.• Analysis and optimisation of the business

concepts.• Separate research on the attitudes of enter-

prises for implementing distributed generationof renewable energy.

• Separate research on the use and maintenanceefficiency in six energy utilities.

• Formation of the biogas plant informationmap.

7.4.1 Business challenges andmodels

The core of the project results were the economiccalculations for the cases. Simultaneously aneconomic calculation model for biogas plant in-vestments was developed, and it was used andtested in the analysis and optimization phase.This model will probably be further developedinto a product after the project. The data from theenergy utilities’ usage and maintenance were uti-lised in developing the model. The attitudes werefound to be very positive towards the implemen-tation of new technologies for utilizing renew-able energy sources.

The best profitability in terms of business was at-tained in the concepts based on production anduse of biogas as traffic fuel. Also their feasibilityis still insecure, because the use biogas as trafficfuel demands a comprehensive infrastructure anda critical number of users already in the begin-ning. However, Swedish and German examples,and also domestic plans and the expanding net-work for the use of natural gas in Southern Fin-land show that this might be reality already invery near future. This also means that the studiedcases are realistic.

In all the other alternatives and especially fromthe point of view of a private single investor, aninvestment in distributed energy production tech-nology still seems questionable. This will be theresult, when he evaluation of the calculations isbased on very strict criteria for the profitability:

According to them the investment should alwaysbe rejected when the pay back time exceeds 15years. However, feasibility can not be analysed asblack and white as this. Instead, at least the fol-lowing aspects should be taken into account:• The pay back time of 15 years is not particu-

larly long in the energy sector, where invest-ments often are discounted during even tens ofyears.

• With a reasonable public support (20–40%) in-vestments in all the evaluated alternativeswould have been profitable according to evenmore strict criteria (pay back time 8 years, in-ternal rate 12 %)

• In the regional production solutions the pilotcases always include also other value expecta-tions than business profitability. Among thoseof particular importance are benefits for farmsin spreading the slurry of domestic animals,and the regional impacts on employment andeconomy, which, however, could not be quan-titatively measured in this research.

7.4.2 The main findings and futurechallenges

Public support for utilising domestic renewablescan be seen justified for a number of reasons: Re-placement of fossil fuels and boosting energyself-sufficiency offers national strategic benefits,and also the stimulation of the local and regionaleconomy and employment are among the highlypositive impacts. A significant share the estab-lishment of Finland’s energy infrastructure hasbeen publicly supported, the public interest beingone of the core objectives. Privatisation and themarket based interest do not come across as sus-tainable justifications for abandoning the oldprinciples. Merely in terms of competition the sit-uation is unfair, as the new solutions are emergingwithout support unlike the old ones. The nationalinterest should be prioritised, still not forgettingthe business interest.

It is clear that new innovations must surmountseveral thresholds, including the social accep-tance, supportive constructions (like laws andregulations, institutions), and technical evolu-tion, reflecting the findings of the research tradi-tion of innovation diffusion: there are generalise

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able forms of development through successivephases. Distributed energy production and itstechnologies are in an early stage of develop-ment, while the conventional prevailing energysector is at the opposite, mature end of the diffu-sion curve (Fig. 7.4). Typical features for theearly stage are the following (also neatly depict-ing the state-of-the-art of distributed energy tech-nology):• Technical solutions are of the first or second

generation, with poor technical and cost effi-ciency, high investment costs, and no benefitsfrom mass production.

• The value chain of production is poorly devel-oped, reflecting as inefficiency and poor prof-itability of the whole supply chain.

• Along with the curve the different dimensionstend to improve, which also can be anticipatedfrom the point of view of distributed energygeneration. This means especially an im-proved relative competitive strength comparedwith the use of fossil sources of energy, and aheavier political status.

What is known from our preceding research isthat the resource base and energy self-sufficiencypotential reaches nationwide from the peripheralcountry side to cities of up to 50 000 inhabitants.Corresponding data come also elsewhere fromthe Europe. This project shows that even businessprofitability is already now very near, and all thestudied cases were highly feasible in terms of re-gional economy. Summarising these differentfactors, there is a remarkable potential for im-proving profitability and becoming more generalfor distributed generation of renewable energy.This might have significance for the whole en-ergy strategy of the country.

The future development actions of the newemerging technologies can be categorised as fol-lows:• Influencing the general values and attitudes

more favourable for the promotion of distrib-uted generation of renewable energy

• Development and support of the expertise andcapabilities for the new solutions from strategyto technologies

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Time

Technology

Management systems

Skills and knowhow

Values and attitudes

Diffu

sion

of i

nnov

atio

ns

Figure 7.4. Diffusion of innovations and capabilities: the comparison ofdistributed (left, down) and conventional (right, up) generation of energy.

• Development of the management systems fordistributed renewable energy systems

• Support and efforts on research, product devel-opment, demonstration and implementation ofthe new technologies for utilising renewableenergy

From the market based point of view, it is impor-tant that the support will be directed towards thecreation of prerequisites for the new solutionsand structures instead of supporting the pricesand hence confusing the markets. Subsidies forR&D activities and investments (establishmentof infrastructure), and adjustment of laws, regula-tions and other general rules are among the ac-tions that only will be necessary in the earlyphases of the development.

According to the results from this project it ap-pears highly possible, even obvious, that distrib-uted generation of energy by renewable regionalsources will become more profitable even judgedagainst purely business criteria. It can also be an-ticipated that it becomes a more general or evenprevailing system in the countryside. This con-clusion is supported by the public interest andgeneral benefits. Public support would be usefulfor making the investments lighter and makingthe development faster, until the market based in-terest and the principle of business profitabilitycan fully be exercised.

7.5 Business opportunities in theintersections of industries

Lappeenranta University of Technology,Technology Business Research CenterBusiness creation with new conceptsin the intersection of industries.Funding decision day: 7.2.2006.Research project

The background of the project

Understanding the changes in business environ-ment and possibilities to exploit emerging oppor-tunities has become vital for globally operatingorganizations especially now when the tradi-tional boundaries of the industries are eroded and

new business opportunities are often emerging intheir intersections. Due to that the changing in-dustry structures and business environment de-mand new approaches to understand and recog-nize these new arising opportunities and developthem to successful business concepts. In an in-dustry level, this has led to an increasing need tocollect and utilize concrete information based onthe industrial change and also anticipating thechange which will help organizations to addressthe strategies needed in the future.

Different times have addressed the importance ofdiverse methods for analyzing industries and or-ganizations. For instance, Porter’s (1980) fiveforce model has been among the most importantmodels when analyzing competitive environmentof organizations, industries and nations. At themoment, scholars of strategic management arefocusing on networking and competenciesneeded in cooperation, as well as understandingthe patterns of changes in new economy and digi-talized value networks. Traditional models have,however, been criticized for e.g. their static na-ture and incapability to predict future develop-ment. This research project aims to integrate themethods to take better into account the proactiveneeds of industry analysis by combining the in-dustry analysis and future study methods and de-veloping applications for the innovative utiliza-tion of methods.

This two years research project called “Creationof new business concepts in the intersections ofindustries (Talikko)” examines the changingstructures of three tightly interconnected indus-tries, namely ICT, electricity networks and gener-ation and forest industries. All these industriesare important to Finland and especially to the areaof South Karelia. Technology Business Research(TBRC) at Lappeenranta University of Technol-ogy (LUT) coordinates the project that is fundedby Finnish Funding Agency for Technology andInnovation (Tekes) and several industrial partnersfrom the three industries under consideration,namely UPM-Kymmene, TeliaSonera, Lappeen-rannan Energia, Kainuun Energia, Fortum, andLappeenrannan Kaupunkiyhtiöt.

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The main targets of the project

The primary objective of this research project isto identify new business opportunities in the in-tersections of electricity networks and genera-tion, forest, and ICT industries. The project alsoaims to find out how to exploit the recognizedbusiness opportunities at company level as wellas to foresee with the companies involved whatopportunities and threats the changes might bringfor them. The secondary objective is to developmethodology for integrating industry analysisand company level business analysis.

The industry structures and the business environ-ments are analyzed separately in each industrialsector with the help of quantitative and qualita-tive strategy analysis methods. The results of theanalysis of each industry are then juxtaposed toreveal new business opportunities and technolog-ical applications located in the intersections ofthe selected industries. The research project con-tinues the analysis of the recognized business op-portunities on company level. The analysis re-veals the gaps between the existing strategy andthe emerging operations in business and technol-ogy development in the companies. The solutionsto fill the gaps are developed by carrying out ideageneration sessions to create a large number ofideas pertaining to new products, services andbusinesses with the help of the creativity meth-ods. Finally the most potential ideas will be for-mulated as business concepts to enable effectiveimplementation and piloting in the participatingcompanies.

The issues aimed to be solved in the research pro-ject thus include:• It is an accepted fact that the industry changes

have impacts that are difficult to solve on acompany level.

• It is an accepted fact that the changes and rup-tures on industry level give risks and opportu-nities for individual companies. The results ofthis project are to give hints how to turn thechanges and ruptures into opportunities inbusiness.

• Simultaneously the project tries to fix proce-dures, methods and tools to analyze the

changes and opportunities in clusters and onborderlines of industries.

Methodology of the project

The first stage of the project focused on clarifyingthe present situation of the industries under scopeas well as identifying their main players (see theright side of the Figure). The output, state-of-the-art report, provides the critical discontinuities,main trends and their implications in technologyand business development of the specific industry(examples of existing trends include e.g. the shiftfrom centralized to distributed energy genera-tion, and significance of ICT in the forest industryoperations). It also made possible to focus the re-search to achieve the main objective of the pro-ject: to identify new business opportunities in theintersections of electricity networks and genera-tion, forest, and ICT industries, and to find outhow to exploit them on company level.

After the analysis of the industrial clusters, athree-round Delphi study was applied in order toidentify the business opportunities that arise inthe industry intersections. On the basis of the firstDelphi round, four intersection areas were cho-sen in which the following Delphi inquiries con-centrated on. The Delphi study was comple-mented with several specialist interviews. Thefour identified intersection areas are all quitewide business opportunities that embody severalpotential business concepts. In order to draw theanalysis more on to company level, idea genera-tion sessions and scenario workshops were heldin Group Decision Support Systems (GDSS) lab-oratory. By exploiting the creative methods pro-vided by the laboratory, a large amount of ideaspertaining to new products, services and busi-nesses were created. Additionally, the generatedideas were analytically assessed, prioritized, andselected into the idea portfolio to recognize themost potential ideas. In conclusion, the analysisheretofore proceeded from the industry evolutionto business ideas (called “top down analysis” inFigure 7.5).

The main objective of the so called “bottom upanalysis” is to upgrade and concretize the gener-

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ated ideas and recognize the most promisingideas (see the left side of the Figure). Severalmethods and techniques, e.g. clustering, are usedwhen evaluating the ideas from the point of viewof their strategic, organizational, technologicaland market fit. The target is to provide the compa-nies with methods and information that supportand help them make decisions regarding their fu-ture business strategies. In time, the ideas that arelinked to the intersections can become concretewhen companies start implementing the ideasinto new products, services and businesses. In ad-dition to the above-mentioned methodology, sev-eral other both qualitative and quantitative re-search methods (e.g. a scenario building ap-proach) were utilized, and the results were re-ported in the scientific publications of the project.

7.5.1 Potential business areas andideas

In this research project, (1) utilization of biomassand other renewable raw material (intersectionbetween the forest and electricity networks andgeneration industries), (2) printed functionality(intersection between the forest and ICT indus-

tries), (3) control systems (intersection betweenthe ICT and electricity networks and generationindustries), and finally (4) e-business (intersec-tion between all the three industries under scope)have been recognized as the main industry inter-sections (see Figure 7.6).

With the help of the GDSS sessions these areashave been narrowed down into more detailedbusiness ideas. For instance, in a workshopwhose topic was printed functionality there weregenerated totally 56 potential business ideas orbusiness opportunities. Continued handling ofthese ideas is taking place at the moment as ourobjective is to find a couple of the most promisingideas and then develop the ideas further togetherwith the participating companies.

The work remaining for the rest of the projectthus includes the recognition of ideas that holdthe most potential, and organizing symposiumsor workshops in which the work on the four eval-uation dimensions (strategy, market, technologyand organization) is continued on those ideas thatwere justified feasible for continuation. But, asthe work is still in progress, the results will be re-ported in more detail later on.

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Figure 7.5. Framework of the Talikko research project.

7.5.2 The main findings andfuture challenges

As regards the main findings of the research pro-ject, the following four industry interfaces werethus evaluated as the most promising accordingto the specialists of the Delphi study: First, utili-zation of biomass and other renewable raw mate-rial refers to producing bioenergy, biofuels orother bio-based products from biomass. Espe-cially in this project we are interested in for-est-based biomass or wood-based biomass as it isthe most interesting resource in the interface offorest and energy sectors.

Second, printed functionality means adding newfunctionalities into a flexible substrate, typicallypaper and plastics, in addition to regular graphi-cal properties by using printing methods. As anexample, e.g. the following ideas were developedin the joint idea generation session with the com-panies on printed functionality: Coding of localfood – the product includes information regard-ing the area of manufacture, and each customercould find out with the help of a mobile phonewhether the origin is situated e.g. less than 100 ki-lometers from the place of his or her residence.Another example of ideas refers to intelligentfood packaging that recognizes each other andsuggests recipes.

Third interface, control systems refer to automa-tion systems in the interface of energy and ICTsectors which can be used e.g. for monitoring,controlling and reporting. Ideas developed in thejoint GDSS session on control systems includee.g. connecting the workforce in the field into en-terprise resource planning systems, and expand-ing distance control to low-voltage network.

Finally, electronic business (in short, e-business)is defined as utilizing ICT in the forest and energysectors’ business activities. Today, informationmanagement systems are integrated more deeplyinto business processes and they combine the ac-tions of different networked organizations. Withthe help of the solutions offered by e-business, re-markable cost savings can be reached.

In the future, it would be interesting to apply themethodology of the Talikko research project inother industries as the methodology of this pro-ject is transparent and adaptable to other indus-trial sectors as well. Also it could be fruitful to ex-pand the coverage of the value networks of indus-tries with e.g. larger involvement of SMEs andcustomer interfaces.

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Utilization of biomassand other renewable

raw material

Controlsystems E-business

Printedfunctionality

BUSINESSIDEAS

Ongoingresearch

INDUSTRYINTERSECTIONS

Completed.

Figure 7.6. From industry intersections to more concrete business ideas.

7.6 Russian Business environ-ment and businesschallenges

Lappeenranta University of Technology,Pohjoisen ulottuvuuden tutkimuskeskusSuomalaisten ja venäläisten yritystenkilpailu- ja yhteistyöasetelmat.Funding decision day: 18.3.2004.Research project

The main objective of the project was to analyzethe success factors of Russian companies estab-lished after 1991 and the capability of Finnishcompanies to respond to the new challenges, suchas increasing competition, in the Russian market.We studied Russian companies from the Finnishcompanies’ viewpoint as potential competitorsand business partners, in order to create new busi-ness models for Finnish companies’operation onthe Russian market. The study concentrated onthree sectors: food industry, ICT and logistics.Focus was also on the development of collabora-tion between companies in South-East Finlandand North-West Russia.

Research topics:• Competitiveness of new Russian companies -

business models and structure of the competi-tiveness factors in three sectors under surveil-lance

• Future operation models - successful Russiancompanies, threats or opportunities for Finnishcompanies?

• Collaboration possibilities for enterprises inSouth-East Finland and North-West Russia -co-operation and subcontracting.

All three sectors, food industry, ICT and logis-tics, were studied separately and from differentviewpoints. In regional collaboration part of theproject these sectors were studied at the same re-port. All sectors are very interesting from foreigninvestor’s viewpoint and could be described asthe most promising sectors for new foreign in-vestments. Final research reports concentrate ondifferent parts of the value chain in these sectorse.g. food retailing, food supply chains and foodprocessing.

Surveys and interviews among Finnish and Rus-sian experts, between 10 to 40 experts in eachstudy, were used as a research method. Informa-tion collected from these interviews was added toinformation collected from secondary sources;articles, magazines and Internet. Part of the studywas done in co-operation with Helsinki School ofEconomics. Regular meetings and workshopswere organized in order to accomplish the re-search objectives. Two reports finished by theHelsinki School of Economics are an excellentaddition for the reports done at the Northern Di-mension Research Centre.

7.6.1 Business challenges forthe companies in Russianmarkets

All studied sectors, food industry, ICT and logis-tics, and regional cooperation between North-West Russia and South-East Finland open up at-tractive collaboration opportunities for Finnishcompanies as Russian companies develop theiroperations. The sectors participating in the re-search have a lot of potential from the point ofview of Finnish companies. On the other hand, asRussian companies strengthen, they may becomecompetitors for the Finnish companies. Thus, it isimportant to monitor the situation in Russia.

ICT industry has been growing strongly duringthe last 5 years. Russian government is trying torefocus the economy from oil and natural re-source based economy to more high tech orientedeconomy. Thus, IT market and export of softwaredevelopment have increased significantly. Thevalue of Russian ICT export in 2006 was aboutone billion euros, of which the share of Finlandequates to 15–20 mln €. Moscow, St. Petersburgand Novosibirsk are the most significant ICT cen-ters and provide plenty of opportunities for for-eign investors. Finnish companies can utilize theproximity and size of Russian ICT market andlow cost of labor and production factors. On theother hand, Russian companies look for newbusiness opportunities and partners from Fin-land.

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The growth of Russian food industry continues.Local companies have been able to grow stronglyafter 1998 crisis thanks to growing purchasingpower of Russian consumers and high cost of im-ported products. The share of food retail in retailtrade is around 50 %. The turnover of the produc-ing and processing companies and the number offood retail stores has substantially increased. Thevolume of Finnish food exports to Russia is about200 million euros. Mostly Finnish companies aregaining from the large size of the Russian foodmarkets. In addition to large cities, more potentialcould be found in regions. The growth of Russianlogistics sector is also strong, but it is threatenedby competition from other countries.

7.6.2 The main findings andfuture challenges

The results of the project have been published inten (10) extensive research reports and eight (8)academic conference papers. In addition, projectresults have been presented in more than dozenseminars and workshops with company represen-tatives. Research team has also taken part in vari-ous academic conferences.

Overall the framework provides valuable infor-mation for future reference for foreign investorsaiming at Russian markets. Results give an ideaof the business environment in Russia. Thesestudies help foreign companies to implementtheir strategies in Russia and do long term plan-ning. For example, many Finnish food processingcompanies have entered Russian market, many ofthem with different entry modes but still success-fully. The situation in the market requires fre-quent monitoring and planning in order the com-panies to keep their competitive advantages, busi-ness environment changes faster than in westerncountries.

Final reports of the sub-projects are published atthe Northern Dimension Research Centre Publi-cation series. These publications, which are con-sidered to be the best and useful way to report theresults for companies, are available for free ofcharge and they can also be downloaded from theproject web page http://www.lut.fi/nordi.

7.7 Present and future businessapplications and challengesin the field of distributedenergy generation

7.7.1 Integrated solutions fordistributed energy sector

Seinäjoen koulutuskuntayhtymä,Seinäjoen amk/SC-ResearchIntegrated solutions for distributedenergy sector.Funding decision day: 18.9.2003.Research project

The background of the project

This explorative research project represented ahorizontal approach to identifying, developingand delivery of product-service systems that areable to solve customers’ problems, or improvetheir existing activities. The horizontal examina-tion involved issues related to following areas:business concepts, integration, system applica-tions, effective industrial production and ICT en-abled improvements. In order to produce suc-cessful product-service solutions, all of the abovekey areas need to be addressed in the real worldbusiness, as well as in the research that seeks toproduce valid and useful results.

The main targets of the project

SME’s ability to offer full service solutions to thecustomers is bound to be rather limited. This isdue to scarcity of resources available for the de-velopment, production and service delivery, notto mention performance guarantees. Productionnetworks, which involve a number of specializedbusinesses, offer a solution that can potentiallyovercome the above-mentioned problems. In re-ality it is a major challenge to create, and run suchoperations effectively. There is a growing body ofempirical research on SME’s and production net-works. This provided a knowledge base that wasutilized in analysing the above type of problems.

Understanding of customers´ needs, require-ments and capabilities to take-up new systems fordistributed energy production is a fundamental

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issue for SME networks that aim at solution sell-ing. There is very limited amount of research orbusiness intelligence type of information on thistype of matters. However, service research do-main provides an approach that can offer a num-ber of alternatives for rigorous analysis on thisarea. The knowledge in this area has been devel-oped over the last 25 years time, and hence it is avaluable source of analytical tools that can pro-vide advice for empirical business practice. Theliterature can address the main gaps between tra-ditional industrial logic and service driven solu-tion selling. A key issue here is the difference be-tween traditional product/production orientedapproach and a customer-need driven develop-ment of the product-service offer.

Fragmented nature of the distributed energy sys-tems and SME production networks creates avery distinctive set of problems. These problemshave many parallels with service delivery sys-tems that utilize modularization/scalability onthe production side, and strictly specified servicescripts that provide management backbone forthe franchised service delivery system. This stageof the research project combined and synthesizedthe collected empirical information and analyti-cal results generated at the earlier stages. Criticaldiscussions at the workshops organized for ex-perts and business practitioners provided highlyimportant ‘acid test’ for these findings and casestudies to be presented for practitioner audience.

Methodology of the project

Because of the explorative nature of the research,the data collection was mainly based on practitio-ner and experts interviews supplemented by therelevant literature on the subject area. Existingmarket information provided the basis for themarket analysis, service concept development

and production network development. Interviewsprovided a vehicle that allows the ‘grounding’ ofthe theoretical material on the investigated ser-vice business cases. The empirical focus of the re-search was on the three different types of distrib-uted energy generation:• Thermal power: systems which extract thermal

energy from the ground, or from the water• Wood energy: systems that include harvesting,

processing, logistics and equipments whichturns wood into energy

• Waste based energy: systems that can use suchproblematic materials as vehicle tires andcrushed vehicle interiors for sustainable en-ergy production.

These empirical research areas provided a combi-nation of different energy sources. Links with thebusiness sector were also established through thefollowing companies and their networks: Suo-men Lämpöpumpputekniikka Oy (thermal en-ergy), Veljekset Ala-Talkkari Oy (wood energy)and Pamac Power Oy (waste based energy).

In the first phase the research the most potentialmarkets and customer groups were identified forthe above type distributed energy generation sys-tems. Information on these customers needs, re-quirements and potential for distributed energysystem adoption were gathered from the existingresearch, customers themselves and from the keyexperts.

Potential producers of distributed energy systemsformed the second main group of interviewees.Practitioner interviewees were supplemented byexperts on the SME area and industry specific ex-perts that have in-depth knowledge on manufac-turing networks and distributed energy genera-tion.

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Customer need driven solutiondevelopment of distributedenergy generation systems

Network development foreffective production ofproduct-service packages

Marketing & service deliverysystem for fragmentedmarkets

Figure 7.7. Key focus areas of empirical investigation.

Interviewees with service experts contributed tothe knowledge on potential service systems andthe ways such systems could be developed. Theseinterviewees included: a) service business ex-perts that focus on service delivery, quality of ser-vice and joint production of service solutions, b)experts on distributed energy systems and c) lead-ing industry practitioners and consultants.

The analysis and synthesis of the collected mate-rial provided realistic information on the poten-tial and possible bottlenecks that are typical ofservice concept development in the DES area.

7.7.2 Integrated solutions and theirpotentiality in business

The key aim of the research project was to pro-duce analytical information on the customer needbased product-service system development in thearea of distributed energy system. Such novel in-formation was seen as a way to advance the un-derstanding of the service concept developmentand product-service innovations in the focus area.This type of knowledge development is highlyrelevant for the decision makers and the researchcommunity alike. Rigorous analysis can providea basis for further development of the generic re-search agenda on DES-services, and more specif-

ically service solutions in the area of thermal,wood and waste based energy production. Byproducing rigorous research based informationthis project advanced service system develop-ment in the area of distributed energy systems inthe three key areas:• The analysis produced a more realistic view of

the market potential and thorough understand-ing of customers needs in the focused businessmarkets. After the most potential markets hadbeen identified, the research analysed cus-tomer needs and preferences that provided thebasis for service system development. Suchknowledge was necessary because offered so-lutions have to be able to deliver solutions tocustomers’problems and add value to their ex-isting operations.

• The key dimensions and components of theproduct-service system were specified on thebasis of the market potential and customerneeds profile. The aim was to create a basisupon which the businesses may develop mod-ules, which can be utilized in building scalableproduct-service systems.

• The key dimensions and elements of the pro-duction network were specified on the basis ofthe identified product-service systems. Theaim was to highlight the crucial features anddevelopment needs of the SME networks capa-

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ANALYSIS&

SYNTHESIS

CUSTOMER DOMAIN– potential customers of DES– demand forecasting experts

PRODUCTION DOMAIN

– SME’s production DES– Production networks– SME experts– Network expert

SERVICE DOMAIN

– service experts– energy industry

experts– DES experts

DES = Distributed Energy Generation System

Figure 7.8. Data collection and analysis.

ble of delivering product-service systems forthe identified customer groups. The genericknowledge on the production networks pro-vided the platform for the more detailed devel-opment in the context of thermal, wood andwaste based DES. By combining customer andservice specific features in the existing body ofknowledge, businesses can develop a better ca-pability to build production networks that areable to deliver service solutions successfully.

Altogether the aim of above stages was to pro-duce knowledge upon which sustainable revenuelogic could develop for DES in the given context.

7.7.3 Practical applications ofthe results

INDIS research project was able to create severalpractical applications that are being further de-veloped by the participating enterprises. Themost promising applications in terms of businesspotential were:• The development of larger scale, project-

based business concepts for Suomen Lämpö-pumppu Oy

• New DES business concept was developed inthe field of wood energy. It has been tested inhighly developing markets in Slovakia andSlovenia. New distribution channels were alsoestablished in both countries.

• The development of new VETO product fam-ily in cooperation with external design com-pany. The main target of the sub-project was toimprove user-friendliness of existing stokersand feeders by new technical solutions relatedto installation and maintenance aspects.

• The development of 1 MW pilot plant andbusiness concept for waste based energy. Thefield tests were made in cooperation with thelocal district-heating firm Kiviristin LämpöOy.

The new service-oriented business and human re-source development within DES companies wasalso enhanced by organizing tailor-made trainingsessions.

7.8 Value chain life cyclein the energy productionby Bio Gas

Åbo Akademi, Industriell ekonomi:Biokaasuun perustuvan hajautetunenergiantuotannon arvoketjun elinkaari.Funding decision day: 29.11.2006.Research project

Local biomasses constitute a considerable sourceof energy. Especially non-wooden biomasses are,however, widely unutilized as sources of energyalthough they can readily be used for the produc-tion of biogas. Biogas is today commonly pro-duced as a byproduct in waste treatment and canbe utilized as a fuel in heat and power productionas well as in traffic. The technology both for pro-ducing and using biogas is generally available.However, the biogas business is still not widelyconsidered an attractive and profitable branch ofindustry. This is mainly due to two reasons. First,the small size and variation of the biomasssources makes it difficult to rely on traditional in-dustrial paradigms based on large scale and cen-tralized production. Second, the business as awhole is scattered and the coordination betweenthe involved industries (e.g. environmental pro-tection, agriculture, heat and power production,traffic fuel distribution and car sales) is non-exis-tent. As a consequence of the two above men-tioned reasons most plants are subject to highcapital and operating expenditure. The lack of co-ordination and clear interfaces, roles and respon-sibilities also leads to a high degree of uncertaintywhich raises the investment threshold.

Aim

The purpose of the project was to analyze thevalue chain for industrial production and con-sumption of biogas in heating, cogeneration ortransportation. The study covers the entirelifecycle from initial project preparation to opera-tion. Based on the analysis the interfaces in thevalue chain lifecycle are specified in order toachieve a sound division of roles and responsibil-ities. This will enable companies to focus on a

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specific nice in the value chain while at the samedoing business with other companies. A under-standing of the interfaces will also enable othercompanies to enter the value chain thus increas-ing the volume of the market. The project in-volved the department of Industrial Managementat Åbo Akademi as well as the following compa-nies which represent different roles in the valuechain of industrial production and consumptionand the different stages of the project lifecycle.• Biovakka (biogas production)• Watrec (engineering)• St1 (distribution of transportation fuel and

power production)• Autotuojat Ry (Finnish car imports and sales)• Gaia Power (optimization of distributed

cogeneration)

Present state of use of biogas

Biogas production and use

Biogas production is today largely part of treatingorganic waste in agriculture (manure), organic in-dustrial waste, sewage treatment and water puri-fication. Landfill gas is also collected. Biogas, bywhich is usually meant methane (CH4) derivedfrom anaerobic fermentation, is by itself a green-house gas about 20 times more harmful thanCO2. Because of this biogas is often burned in aflare whereby it is converted into the more benignCO2. The percentage of methane in biogas usu-ally varies between 30% and 70%. Depending onthe raw material there can also be other chemicalcomponents in the gas such as chlorides. In addi-tion to gas the production of biogas discharges awater rich in nutrients and compost.

Biogas is highly similar to natural gas and can beused both in heat and power production and intransport. Most of the biogas plants have anon-site engine or turbine that operates in a CHPmode. In some cases the biogas is also used di-rectly for heating (since the beginning of the2000’s most of the biogas produced in Finland isutilized and not simply flared). There are also ex-amples, especially in Sweden, of biogas beingused as a transportation fuel. However, most ofthese applications are limited. The production ofbiogas is largely dictated by the amount of waste

to be processed. Biogas by itself is seldom con-sidered a product to be sold. The principal, if notonly, source of income for biogas plants is thetreatment of waste.

The low energy density of biomass also makes fora distributed structure of biogas production.Biomasses can be economically transported onlyshort distances (often under 20 km) which leadsto a comparatively small resource base andthereby a biogas plant that is small compared toother kinds of energy refinement installations.Only certain biomasses which can be classified ashazardous waste are transported longer distances.

Biogas technology

The technology for biogas production is gener-ally available. However, compared to other, moremature, industries, such as power production andshipbuilding, biogas plants do not present a highdegree of standardization or modularization. Thiscan be seen as due to the small series and also tocharacteristic of the business at present. It seems,there are many small or medium sized playerswho have developed their own applications of thecore systems and buy the rest (balance of plantitems) on a project by project basis, where littleattention is paid to repeatability and maintain-ability of the installation.

Distributed energy production

As a result of the liberalization of the electricitybusiness the optimal size of the power plants hasdecreased in the western world. The smaller sizeenables proximity to the final customer whichthus enables the utilization of the heat (CHP andCHCP), smaller transfer deficits and also lowertransfer costs. The smaller size and the lower tiedequity enable the so called peak-shaving functionin which the plant is used only during the moreprofitable seasons. During the last decades thetechnical development, especially in the field ofinformation, automation and communicationtechnology has led to the point where decentral-ized energy production and in particular smallerindependent plants are economically feasible tobuild.

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The increased competition and also the inhabit-ants’ resistance towards building new powergrids have led the development to buildingsmaller grids which are located closer to the finalconsumer.

There are several benefits with decentralized en-ergy production. The shorter distance to the finalconsumer enables decreased transfer losses andutilization of the heat capacity. Because of thehigher efficiency coefficient the smaller plantsare in addition more environmentally sound thanthe larger centralized plants. A smaller plant en-ables also utilization of smaller energy sourceswhich is particularly important when it comes tobiogas, waste gas and waste incinerators. The de-centralized system is as well more reliable be-cause it consists of several geographically scat-tered small plants (under 50MW). Due to this theinvestment threshold is lower than the centralizedones. This favors above all areas with no electric-ity and areas where the supply of is insufficientbecause it is possible to erect the grid graduallyaccording to demand.

The problem with decentralized systems is, how-ever, the high investment costs which decreasestheir competitiveness. When it comes to equip-ment the field faces a vicious circle: the customer(the operators) would be interested if the priceswere lower and the supplier could lower theprices if the clients were prepared to buy more.Another dilemma is the old-fashioned way to de-sign the power plants. This design procedure ap-plies better to larger plants (over 100 MW),which leads to excessive designing when it comesto smaller plants. In order to lower the overallcost, an operational plan that takes into accountboth specific customer needs as well as theplant’s life cycle, and allows for production oflarger equipment series must be developed.

In addition to the above mentioned facts there arealso some misconceptions in the public discus-sions when it comes to decentralized energy sys-tems. We feel that these misconceptions shouldbe taken into consideration.

In the energy business, there is an obviousbipartition between heat and electricity. In theelectricity field the CHP business is not under-stood and is not included when calculating profit-ability. Heat is still often seen as a deficit whichcan be utilized – but not as a product which couldbe sold. Respectively the heat suppliers are reluc-tant to simultaneous production of electricityeven if the profitability would be higher.

The development of the field is also slowed downby the varying regulations. Every grid operatorhas own equipment and tariff rules which makesit difficult to offer and supply standard plants. It isnotable that there are no legal barriers for decen-tralized energy production. The challenge lies bythe grid operators.

Another challenge in the field is considered to bethe large spectrum of equipment and independentelectricity providers. The independent electricityprovider is considered as a risk because theycould uncontrolled supply electricity to the gridwith their own equipment. This is though an arti-ficial problem. Every grid operator has full rightsand possibilities to set requirements both forequipment and delivery times as well as for thequality of the electricity.

Distributed energy production is a suitable com-plement to biogas production. Since biogas pro-duction by its very nature is distributed it makes itnatural to have a small power plant as a consumerof the gas. Biogas on the other hand is a suitablesupplier of fuel for distributed power production.It is generally considered that for distributedpower production to be profitable it has to be un-manned which in turn requires either liquid orgaseous fuel. Local consumption of the gas alsodecreases transportation costs and also provides atruly independent streak to the power supplysince it is based on local raw materials. Sincebiogas plants for most part are small (under 2MW) including them in the bigger portfolio of apower producer would also enable emissionstrading, something which at present is not possi-ble for an operator of an individual small plant.

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However, in order to provide a basis for largescale utilization of biogas in distributed powerproduction the questions of quality and availabil-ity have to be settled. The power producer is com-mitted to providing power at certain agreed times.In doing so the power producer relies on the gasprovider to provide required amount and qualityof gas. At present biogas producers are not con-sidered fuel suppliers by the power producerspartly because they doubt the ability and commit-ment of biogas producers to provide the gas. Tocreate demand for biogas and turn it into part ofthe established fuels for power production biogasproducers need to eliminate doubt regardingthese issues.

Biogas in transportation

Biogas in transportation is a high quality fuelwhich, just as natural gas, has low emissions.However, the use of biogas in transportation is to-day limited. This is partly because the use of gasin transportation is still limited compared to liq-uid fuels, but also because of concerns which arespecific for biogas.

The first problem can be seen as the chicken-and-the-egg problem. Since there are very few gas-driven cars there is little incentive to invest in fill-ing stations, yet as long as there are few fillingstations there is little incentive to purchase a gasdriven car although gas presently costs about halfas much as gasoline. However, the situation is notthat bleak. First of all, the focus needs to be ongas-filling stations, not just biogas. Biogas andnatural gas complement each other, they are notcompetitors. Second, the number of gas filling-stations in Finland is actually increasing steadily.However, customers (both consumers and indus-trial customers) have to be made aware of boththe number and the location of filling stations aswell as the different cars, trucks and buses avail-able.

A second problem is the limited number of carmodels which are available because the market islimited. This decreases the willingness to pur-chase by not satisfying the customer’s need andalso by having a lower second-hand value, odd

cars tend to have a much lower second-handvalue.

The third problem is specific for biogas. Biogas,with its multitude of small manufacturers is con-sidered an unreliable source for the kind of largescale supply needed for transportation. Negativeexperiences of first generation biodiesel (RME)appear to have tainted the name of biofuels. Carsales are clearly skeptical of both the ability andcommitment of small scale biogas producers, i.e.farmers, to ensure continuous, reliable supply ofhigh-quality fuel. To ensure quality and availabil-ity the transport sector stresses the need for gasdistributors which are able to coordinate avail-ability and ensure quality.

Method

The value chain starting from biomass to poweror car use was analyzed for dependencies in the inthe process. By identifying the dependencies be-tween the different actors in the process the inter-faces between them can be defined and the divi-sion of roles and responsibilities be established.During the past two decades modularization hasbecome an increasingly important means forcompeting in many high volume industries. Atbest it has provided a basis for virtual enterprises,where companies temporarily join forces in orderto exploit occasional business opportunities. Thisis partly what goes on in project business, such asengineering and construction. However, the easeof integrating products, services, technologiesand knowledge in delivery projects is quite oftenfar from being virtual, which in part is based onthe ability to mix and match and substitute thecomponents (and companies) in a product (Garudand Kumaraswamy, 1995; Sanchez and Maho-ney, 1996). These are indeed desired directionsfor many project-based industries as well, how-ever difficult to achieve due to some fundamentaldifferences, such as discontinuity, uniquenessand complexity. In essence, complex system in-terdependencies, varying demand and smallbatch sizes make it difficult to reap often ex-pected economies of scale. Furthermore, due tocustomer outsourcing suppliers are increasinglyasked to deliver integrated systems on a turnkey

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basis, that is, to assume responsibility for the de-sign, systems integration and construction of theproduct as well. In fact, in some industries cus-tomers are demanding the supply of so called in-tegrated solutions (Davies, 2004), rather thanseparately buying design, equipment and a con-struction contract. This is to say that integratedsolutions providers have to consider their system(and its structure) from several life-cycle per-spectives.

7.8.1 Analysis and Value creationthrough applications

Today biogas is considered solely a by-product ofwaste management and agriculture and the utili-zation is only based on the energy contents of theavailable biomass. In this case it is other incomessuch as waste management fees which are thecorner stones of the business. For now there areconsequently no business models in the field

which would have been developed on an energyproduction basis; sold either as heat or/and elec-tricity or a transport fuel.

The goal of the research is thus to create a busi-ness model that combines all the biogas businessactivities:• Biomass production• Biogas production• Energy distribution and sales

Since the sales of gas cars is relatively new (com-pared to the production of electricity and/or heat)it is reasonable to consider it as an independentfield. Furthermore the model is to cover everylife-cycle phase in the value chain:• The development of the project (Concept)• The execution of the project (Project)• Operation (Use)

Figure 7.9 shows the main business activities ofthe business where the information flow is

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Figure 7.9. The role distribution from planning and execution to operation in the biogas business.

roughly presented during the phases listed above.In the next chapter we will study responsibilitiesand information flow in every phase of the valuechain.

The business model is based on a clarification ofthe interfaces between the main parties in thebiogas value chain which are integrated into eachother. The purpose of the business model is toclarify the role division of the parties. For eachparty the responsibilities and expectations areclarified for each phase of the project lifecycle.The business model thus covers the entire projectlifecycle from conceptual development to opera-tion and maintenance. The interfaces and the re-sponsibilities that are included in them are speci-fied on a generic level, not a contractual or pro-ject-specific level. The aim is to ensure that eachparty has a clear understanding of how the valuechain functions on a general level and a detailedunderstanding of his own part in it. The role defi-nitions are not limited to a mere technical levelbut also include more governance related aspectssuch as regular mutual reporting that improveoverall performance and also decrease uncer-tainty, something which is crucial as the indus-trial segment is started. Thus the business modelshould not be seen as an expert system but ratheras a playing field which is based on a division ofresponsibilities that takes into account technicalas well as social matters on the basis of whichbusiness can be based.

7.8.2 The main findings andfuture challenges

In order to establish use of biogas on an industrialscale it is necessary to also focus on the structureof the business and the value chain as such. n do-ing so it is necessary to take into account techno-logical conformities involved in each phase of theproject lifecycle. The technical conformities areused as a basis for clarifying the commercial in-terfaces and the division of roles and responsibili-ties.

Clarifying the roles and responsibilities is key el-ement in establishing the value chain. For exam-ple in the biogas value chain the necessary tech-nology has been long available commercially yetbiogas has not taken off as part of the energy in-frastructure. This is largely because lack of clearinterfaces with clear division of responsibilitiesand expectations for each party in relation to theother parties in the value chain.

The unclear interfaces lead to both direct and in-direct costs which hamper the business andthereby inhibit the benefits arising from a func-tioning industrial segment. Unclear interfacesleads to over-engineering rather than standard-ization which raises investment costs. Lack ofstandard solutions also affects plant operationswhich in turn lead to lower profitability. Unclearinterfaces raise the investment threshold. Theycan also lead to an institutional lack of trust whichcan be seen in the fact that both the power genera-tion and transport sectors do not trust the farmingsector to be able to become integrated suppliers inthe respective industries.

By clarifying the interfaces between the partiesand integrating the different businesses (cultiva-tion, gas production, power production and trans-port) in a way that takes into account the specificconformities of each business segment a basis forinvestment is created. This type of overarchingsolution is necessary. Merely focusing on a singlelink in the value chain is not enough if the chain assuch does not exist. The value chain is establishedby clarifying the commercial linkage betweentwo forms of already existing commercial activi-ties for example cultivation and electricity con-sumption.

The project is still ongoing. The key parties in thevalue chain, biogas to power and biogas to trans-portation have started coordinating their activi-ties. The business model is at the moment beingtested by companies themselves and correctionsare being made to model. By the end of the year afully function business model for the industrialutilization of biogas is expected.

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7.9 Eco-effective society andeconomic energy productionsolutions

Kymenlaakson ammattikorkeakoulu Oy,Tekniikka ja liiketalous:Ympäristöä säästävät energiaratkaisutja ekotehokas yhteiskunta.Funding decision day: 22.12.2003.Research project

The background of the project

The low grade residual heat will be produced inthe industry in overcapacity. Better utilization ofthe residual heat is necessary to improve the envi-ronmental friendly energy production. The gen-eration of the residual heat from the industry orother sources into the electricity would increasethe degree of environmental friendly energy utili-zation.

A new eco-effective energy production system,developed by Deveinfo Oy, was tested at labora-tory scale at KYAMK earlier with proper prelimi-nary results. However, to be able to find out thecapability of the system under the conditions rel-evant for practical application a pilot scale testswere necessary.

The main targets of the project

The main objective of the project was to find outthe performance of the new environmentalfriendly energy production system and it’s viabil-ity under dynamic long trial run conditions corre-sponding to 5000 operating hours at Sammalsuodumping site. However, due to long delays duringthe construction and manufacturing phase, thetargeted 5000 h operation was revised down toabout 1000 hours. Additionally relevant environ-mental and techno-economical issues of the 50kWe-system will be investigated.

Methodology of the project

To meet the challenge the project has been split infour main stages:• Planning and design• Manufacturing the main equipments,

construction and assembling

• Testing– short term tests at KYAMK test facility

and Sammalsuo Pilot Plant– long term test at Sammalsuo Pilot Plant

• Relevant environmental and techno-economi-cal analysis

The project has started in Spring 2004. The pilotprocess has been designed at first in regard to themain components such as LM-turbine, generator,transformer etc to be able to start the equipmenttesting. Due to too long delays of the supplier ofthe first combustion unit, the supplier for the gascombustion system, that produces the requiredsteam for the LM-turbine, was changed. The pip-ing, electrical and measurement systems havebeen designed by KYAMK assisted by outsidecontractors and partners. The design has beencarried out in co-operation with partners. The re-search part has been carried out by KYAMK in-cluding the measuring, sampling, informationsystem and the process flow sheet. The designingof the main components have been conducted byDeveinfo Oy et al and KYAMK. The LM-turbinehas been designed and manufactured in Kotkaand the new combustion unit later in Ristiina. Thegenerator and transformer and the necessary re-search test and measuring devices have been pur-chased. The system is able to produce electricityof 50 kW. The test facility for main componenttesting has been designed and built at KYAMK.The simplified process flow diagram has been il-lustrated in Figure 7.10.

Preliminary tests in regard to equipment and fromlow to medium pressure testing have been carriedout at KYAMK test facility, that is able to operateup to 5-6 bar steam pressure measured at the en-trance of the LM-turbine. The targeted 10 barsteam pressure at the turbine entrance can bereached only at the Sammalsuo Pilot Plant thatwas assembled ready for equipment and pre pro-cess testing in summer 2007. Due to technical dif-ficulties in assembling phase that has been solvednow the capability to supply electricity into the400 V grid continuously will be ready first at thebeginning of September 2007. The pilot plant hasbeen presented in Figure 7.11 and a simplified as-sembling of the main equipments has been shown

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in Figure 7.12. The pilot plant consists of follow-ing main components:

biogas combustion unit with steam generator,that supplies the steam to the LM-turbine, is con-nected to the main biogas line of the SammalsuoDumping Site.

The combustion unit shown in Figure 7.13 is lo-cated in the first container.

LM-turbine, connected to combustion unit withinsulated piping and necessary auxiliary measur-ing and monitoring devices.

LM-turbine is connected to a condenser and gen-erator with electricity producing capacity of50–55 kWe. LM-turbine, condenser and genera-tor system are located in second container asshown in Figure 7.14.

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Figure 7.10. A simplified flow sheet of the test bank facility at Kyamk forLM-turbine testing up to 5–6 bar pressure at the entrance of the turbine.

Figure 7.11. Sammalsuo Pilot Plant.

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Figure 7.12. A simplified assembling of the main equipments at Sammal-suo dumping site.

Figure 7.13. Biogas combustion unit with steam generator.

A simplified testing program has been presentedin table 7.1.

Table 7.1. Simplified testing program.

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Figure 7.14. LM-turbine (back) connected to a condencer (left) and generator(right).

Tests Equipment testing Process Testing:Low & Medium PressureTests up to 5-6 bar atLM-turbine at Kyamk

Pilot testing: HighPressure Tests up to10 bar at LM-turbineat Sammalsuo Pilot

Status

Short term tests LM-turbineat Kyamk

Kyamk SammalsuoDumping Site

• number of testseries

40 20 none done

• number of testsper day

1-4 1-2 none done

Pilot testsshort term

Biogas unitLM-turbine

several start up testsseveral short term startup tests

several start up testsseveral short term startup tests

done

Pilot testsLong trial run

Biogas unitLM-turbineGenerator connectedto 400 V grid

1 1 to be carried outat Sammalsuopilot plant inSeptember 2007

7.9.1 New business concepts andeconomic solutions

The main results

Several short term test series were carried outduring the year 2006 and in the first half of theyear 2007 in the test facility of Kyamk. In shortterm tests at Kyamk up to 14–18 kWe dependingon the shaft speed (190–300 rpm) could be pro-duced. Also short term start up tests with andwithout LM-turbine have been carried out atSammalsuo Pilot Plant for fine tuning the systemand necessary adjustments have been made.

Due to technical difficulties occurred in the as-sembling phase in regard to connect the system inthe electrical network no long run test could bestarted yet. Due to delay occurred in the assem-bling stage and redesigning of an equipment thatwill be connected in the electrical cabinet, wasready for installation at the end of August. There-fore the connection into the 400 V electrical gridcan be carried out at the beginning of September.The project status is ongoing.

7.9.2 The main findings and futurechallenges

Practical applications of the results

• Due to ongoing project no final results regard-ing the long run tests can be presented here yet.According the revised schedule the projectshould be completed at the end of September2007. It is estimated that until then only 1/10 ofthe targeted time of the long run test can becompleted at Sammalsuo Dumping Site.

• Due to a preliminary co-operation agreementan equipment manufacture can utilize the sys-tem in his specified program so far specifiedterms of a successful completed trial run arefulfilled.

Suggestion for future work

Due to delays the long term test run can be com-pleted only partially during the remaining timeframe of the project. However, the trial run maybe continued outside of the project so far new a fi-nancial aid has been placed.

7.10 Eco-efficient housing andhousing area

Valtion teknillinen tutkimuskeskus,VTT Rakennus- ja yhdyskuntatekniikka:Ekotehokas rakentaminen ja asuminen.Funding decision day: 26.6.2003.Research project

The project focused on concept solutions foreco-efficient housing and decentralized, distrib-uted energy systems suitable for small scale con-struction of housing areas. The concept solutionswere developed for networked production. Busi-ness and operational models for company net-works were analysed accordingly. The projectsupports local building products’ industry byknowledge sharing and showing new businessopportunities.

7.10.1 Model solutions foreco-efficient housing

A model house was designed according to the de-sired performance characteristics describing theuser requirements and environmental targets ofthe house. VTT’s requirement’s managementtool EcoProp (2003) was used in setting the re-quirements. Requirements for the technical de-sign were derived from the performance require-ments:• The house is adaptable with regard to both size

and floor plan• The wooden house serves for short delivery cy-

cle at site and simple thermal insulation sys-tem. The load-bearing wooden frame is sin-gle-framed allowing for high levels of insula-tion. Comfort is taken into account in alldimensioning of structures.

• The house is energy-efficient. The heating en-ergy demand of the house is less than 50%compared to a house according to nationalbuilding code of 2003, and less than 35% com-pared to typical buildings before 2003.Heating energy consumption can be decreasedfurther by building service systems. Appli-ances and heating and ventilation equipmentsare energy labeled (class A)

• The house has a long-service life. The durabil-ity of the wooden envelope structures is im-

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proved by environmentally friendly wood pre-servatives. The coloring of the house is basedon tinctures traditionally used in woodenhouses. The house has a tilted roof for facadeprotection.

• The house has a good and healthy indoor cli-mate. The adaptability of the house is takeninto account in the design of building services.The materials and solutions support good andhealthy indoor environment.

The house can be built using local resources. Thehouse should fit for both rural areas and dense

town areas. Full scale adaptability is a difficulttask to achieve for a common model house de-sign. The solution was to allow different floorplans within the structural modules, and to makeit possible to build different apartment sizes from73 to 195 m2 with the same basic foot print of thehouse. As the house has either 1½ or 1¾ story theupper floor can be finished later-on depending onthe needs of the family, Figure 7.15. Building ser-vices systems are designed for the maximum sizeof the building. Routing of building service’s sys-tems can be placed in the internal floor. The bath-room, sauna and room for technical equipment is

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Figure 7.15. Model house

a prefabricated module. Kitchen is directly con-nected to the module, and upper floor bathroomlocates directly above the module. This enablesshort routing of ductwork, electricity and waterand sewage systems.

7.10.2 Decentralized energy systemsfor housing areas

The houses are designed so that the larger is thehouse the less energy by m2 it consumes. Themaximum heating energy demand can vary be-tween 70–50 kWh/m2, which includes energyproduced for heating and hot water, and fire woodused in the fire places. The peak auxiliary heatingenergy power is restricted to 35 W/m2.

Typical heating system in Finnish houses is directelectric heating system. To be able to reduce thenumber direct electric heating systems and at thesame time the power demand of an area, buildersneed to have other possibilities. Local distributedheat networks were considered as a municipality

offered network Three alternatives were consid-ered for a distributed heating energy network:• High temperature biomass plant (T = 80/43 oC)

using local energy sources.• Centralized ground heat distribution system

(T = 50/40 oC) with separate hot water system• Distributed low temperature ground heat sys-

tem (T = 2/-1 oC) with individual heat pumps.

These systems were compared to direct electricheating systems. A cost analysis showed that thelow temperature distributed ground heat system(Figures 7.16 and 7.17) is cost efficient for boththe municipality with regard the constructioncosts and the builders with regard the life-cyclecosts. The investment cost for the ground collec-tor systems ranges roughly from 10 up to 50 €/floor-m2 of houses. The costs are dependent onthe plot ratio of the area, and the heat source. Witha low rural plot ration the costs for a total networkis high. If the network can be divided into sub net-works, the costs will be reduced down to 25–35 €/floor-m2 even in a low density areas.

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Figure 7.16. Ground heat network examples.

7.10.3 Business opportunities

Business opportunities for energy efficient sin-gle-family houses do exist. The market attitudesare changing towards eco-efficiency, althoughvery slowly. Climate change is the main driver inthis change. In order to make use of the opportu-nities, the current locked-in patterns that keep thealternatives from receiving wider acceptanceneed to be changed. In the case of eco-efficientsingle-family houses, the lock-in situation stemsfrom a set of interrelated rules that together pre-vent the present state from changing.

To be able to achieve a wider market position ofeco-efficient construction, new kind networkingis required. Strategic niche management shows inthis perspective the possible ways through nar-row market niches to market acceptance. Nichemanagement is based on technology demonstra-tion to make the technology well-known. As themarket success increases, the development of theconcept can be promoted. The success requiresalso socio-economic acceptance. There are twopossible ways:

• The product (whole building) is allocated to aspecific market segment. The producer needsto create a differentiation strategy to serve thismarket segment.

• The product is allocated to a network opera-tion. The production network has to be able tomanage the whole building approach, and tocreate a new production culture for construc-tion.

The segments of the Finnish housing market havenot been defined. It has been anticipated that thedemand for eco-efficient housing grows from ac-ademic families with children, but there is noclear evidence on that. It is also quite uncertainthat market orientation based on market segmentswould change the processes and market situationto enable the market penetration. The notion ofsocio-economic regime can be used to conceptu-alize the situation.

The development of a housing area can be carriedout as a network operation. To make the conceptsinto economically viable housing areas, three re-quirements need to be fulfilled in order to gain

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Figure 7.17. Heating cost differences between local distributed system and di-rect electric heating at a time of use of 30 years. The costs include network con-struction costs and heat pumps, maintenance costs, running costs etc. The costbased benefit improves if the plot ratio of the area is high (Tuusniemi 1), or if oneheat pump can serve for two houses.

larger markets or to create local markets for localcontractors:1. An open concept is needed for to create wider

markets for eco-efficient houses and housingareas. A company network requires instruc-tions and quality assurance methods to be ableto produce the solutions at the required qualitylevel.

2. Model solutions proved economically viabletechnologies for eco-efficient housing areas.However, operational models with regard toeco-efficient housing areas are needed for in-dividual regional contractors to help for costefficient production

3. The funding schemes for eco-efficient hous-ing area need to be developed. This includesthe sharing of risks, costs, and revenues. Also,organization of maintenance and running pro-cedures for distributed energy systems need tobe solved.

The major target area for export of eco-efficienthousing area is Russia, and specifically the areaof St. Petersburg, and China.

7.11 EHJ Concepts ofdistributed CHP

Valtion teknillinen tutkimuskeskus,VTT Prosessit:Hajautetun CHP:n EHJ-konsepti.Funding decision day: 18.6.2003.Research project

In recent years, the CHP technology developmentallows for smaller and smaller CHP plants beingeconomically feasible. Whereas micro-CHP inthe range suitable for households and small busi-nesses is being tested all over Europe, also plantsin the size of 500 kWel...10 MWel are becomingmore and more economically attractive. Indus-tries with a large heat load are or will be changingtheir boilers to CHP plants hand in hand with ris-ing electricity prices and CO2 emission costs.

One of the bigger obstacles on this road is the re-sources needed to manage these plants in an openenergy market environment. The more degrees offreedom a CHP plants has, the more management

143

Distr.network 1

Distr.network 2

Distr.network 3

Service provider

Client A

DGfacility A

Balanceprovider

Client B

DGfacility B

Client C

DGfacility C

Electricitymarkets

Heat

Electricity

Figure 7.18. A service provider who operates several distributed generation (DG)-facilitiesin the de-regulated electricity and gas markets. The DG facilities in this project were seen asCHP-units producing both heat for local use and electricity. The production, and consump-tion through DSM, are optimised for all members of the service provider.

it will need to make the best use of its possibili-ties: heat load and electricity load forecasts, mar-ket price information management and participa-tion in the markets, production optimisation,commercial balance management etc.

The target of this project was to develop a conceptof an energy management system for a powercompany, an end-user or a service provider whooperates several CHP-units in the de-regulatedelectricity and gas markets. VTT, the technicalresearch centre of Finland (www.vtt.fi) was pro-ject responsible research partner and Gaia GroupOy project research partner. Partakers in thesteering group, as well as part financiers, wereGasum Oy, KSS Energia Oy, Porvoon EnergiaOy, and Vantaan Energia Oy.

The development work first off defined the re-quirements and gathered information of existingprogrammes. The second result of the project wasan implementable concept for an energy manage-ment system including assessments of develop-ment contributions for the implementation. Thethird result of the project was a draft research planfor a follow-up project regarding the implemen-tation and piloting of the concept.

7.11.1 New business solutions forand through EMS ofdistributed CHP

The first two project results are found in the re-search report EMS Concept for Distributed CHP(in finnish: Hajautetun CHP:n EHJ-konsepti.Göran Koreneff, Eero Vartiainen, Pekka Kopo-nen, Seppo Kärkkäinen. Projektiraportti PRO1/P7005/04 (31.1.2004). Public. 39 p. + app. 15 p.)The research has also been actively brought for-ward in DENSY seminars and workshops.

The third result, the research plan, was used to setup an industry driven follow-up project.

Whereas large utilities have both software neededas well as human resources available, small CHPplant owners and/or users are lacking in this area.Software designed for larger utilities is too ex-

pensive, and too demanding on human resources,to be used in the small circles of distributed CHP.Energy management systems delivered withsmall CHP plants on the other hand will be quiterestricted especially in an open electricity and/orgas market or for a multiple location concept.

Several researches in Europe concerning distrib-uted resources focus on the role of an aggregator,who manages several, physically as well as fis-cally separated resources. The aggregator couldbe the owner of one or all of the resources, or anindependent agent managing the resources opti-mally and to the benefit of all parts. Wind powerplants are a good example of distributed re-sources to already be manageable by anaggregator. CHP plants, having more degrees offreedom due to both steerability and the mass ofproducts to steer (heat, electricity, steam, fu-els...), are in need of a more complex EMS. A va-riety of combinations of CHP plants and sites andend-users allow for, and even demand, a multi-tude of new business solutions. This project’s fo-cus was on the EMS needs of an aggregator man-aging three separate locations, whereof two hadCHP plants and one was just an end-user of elec-tricity. The solution derived at in this project isextendable to more sites of varying composition.

Main criteria of feasible EMS-related businesssolutions are:• EMS must be able to manage several separate

producers and end-users of both electricity andheat, and preferably also steam as a separateproduct

• EMS must be able to manage several fuels, andpreferably allow for fuel markets

• Each end-use site may have a different electric-ity or fuel (natural gas) distribution tariff aswell as a tariff for feed-in of electricity

• EMS should be easy to install and maintain• EMS should be easy to use, demanding only a

minimum of human input to run• The EMS should be modular to allow for easy

module replacements as well as future exten-sions

• EMS modules should be inexpensive

144

7.11.2 The main findings andfuture challenges

The first future challenge of the project was to setthe development of a prototype into gears. Thechallenge was successfully met.

The EMS concept for distributed CHP was turnedinto a software program in an industry driven pro-ject 2004–2005 led by Gaia Group Oy and in-volving Gasum Oy, KSS Energia Oy, KeravanEnergia Oy and Metso Automation. The softwaremet all criteria set up in the research project.

The severely delayed mushrooming of small,end-user driven distributed CHP plants in Fin-land has left the software for the time being inlimbo here, so marketing has been stretched toother more advanced EU-countries, e.g. Den-mark and the Netherlands. With the Kyoto period2008–2012 at the doorstep and with some ratherheavy EU-decisions for the year 2020 alreadymade, one cannot but anticipate a rapid marketdevelopment for distributed CHP and relatedsoftware.

EU-targets (ESD, the energy service directive) ofa 9 % improved energy efficiency by the year

2016 for sectors outside the emissions tradingscheme as well as improved end customer infor-mation systems (two-way-metering etc) will ad-vance active end-user reactions and demand sidemanagement. These features’ relations with thedeveloped EMS concept should be further stud-ied, and implemented into the pilot program.

7.12 Conclusion – the futureneeds and opportunities

Referring to figure 7.19, we argue that the re-search programs within the area of business mod-els provide significant input on the subject of dis-tributed energy production. In addition to the pro-jects related to technology and governance em-phasis needs to be put also on governance andbusiness. Together governance and technologyform the frame for the distributed energy industry(fig 7.20). Technology forms the micro-levelwhere individual challenges in distributed energyproduction are addressed. The governance levelis the macro level where distributed energy is ad-dressed from a regulatory and political perspec-tive. Between these two levels is the Meso level,i.e. business level, which concerns one of themost important issues: how the business of dis-

145

Planning andsimulation of DG

(CHP)production

Price and loadforecasts

Production model

Contract management:network tariffs

buy and sell contractsfuel contracts

Short termdeals

Balancemanagement:

planningfollow-up

–

–

Provided balance(buy, sell)

Operation control

Figure 7.19. EMS concept for management of several distributedCHP plants as well as end-users.

tributed energy production need to be carried outand how the distributed energy industry should bestructured. Thus it deals with questions relatingto transactions, strategy and organisations.

As business expands, the industry develops andthe demand for new technological solutions andmanufacturing techniques arise. Standardizationalso increases together with attempts to increaseefficiency through economies of scale. At thesame time, industry influences the political andregulatory environment either by its own initia-tives or by initiatives that derive from the effectsthe industry has on society. Thus two self-rein-forcing loops arise and propel the overall fieldforward. To do so all three levels have to interactand develop, making it necessary tom combineknowledge in the fields of technology, businessand governance.

In a field such as distributed energy generation,which is nascent and has not yet reached maturityon any level, focus on all three levels is important.There exist needs for technological solutions thatenable both the commercial and the regulatorymeasures. At the same time, there are needs forregulatory development that creates room for theapplication of the different technologies avail-able. Last but not least, the commercial methods

for utilizing the technology within the regulatoryperimeters are needed. These three dimensionsneed to advance more or less parallel to eachother – if one lags then the other two will beslowed down or stop altogether.

As it is, in this context, both the technological Mi-cro level and the regulatory Macro level have ad-vanced. Technologies have been studied and de-veloped and although there still is a need for fur-ther development in order to raise efficiency andcut costs, there are already many technologiesand solutions available for commercial opera-tion. The regulatory environment has also devel-oped. Perhaps most importantly connecting asmall power plant to the grid is no longer cumber-some and discriminated against. However, on thecommercial level the development has not beenas fast. This can partially be seen in the fact thatdistributed energy production has not arisen on acommercial scale whereas both technologies andregulations enabling distributed energy produc-tion have arisen. This should not be seen as proofthat distributed energy production is not commer-cially feasible. Instead it shows that no function-ing and profitable model for business based ondistributed energy production has yet been fullydeveloped and tested.

146

Macro

Meso

Micro

Business

Governance

Technology Innovations

Initiatives

Figure 7.20. The interplay between technology, governance,and business.

Although, within the Densy program has beensignificant research into the area of businessmodels only one of the research projects havegone so far as to piloting the business model. Inresearch and development work piloting is an im-portant step. In the natural and technological sci-ences piloting, i.e. the practical testing of one’stheories, models and assertions is common prac-tice – proof of which is not only all the new solu-tions that are brought forward but also the numer-ous ideas that have been disproved. Unfortu-nately, the tradition of testing ideas and theories isnot nearly as usual in business studies – i.e. thefield of how business is done in a certain industry.

There are several reasons for the lack of pilotingand testing of business models. First, the field ofbusiness studies has experience in developingnew models but lacks the experience and tradi-tions for implementing them. There are no estab-lished rules-of-thumb, gates, tasks, milestones,performance meters or benchmarks. Second,most companies also focus more on innovationand initiatives that derive from their existing busi-ness models. Developing a new business modelfrom the existing conformities of technology andregulations can in practice mean developing anew company or division, learning new ways ofdoing things and accepting new truths. A newbusiness model may even pose a threat to the ex-isting business model – as for example distributedenergy could do to business models that are basedon centralized solutions. Third, since the conceptof piloting business models and management the-ory is unclear financiers such as Tekes are put inan awkward position. Without a clear concept for

how a business model will be implemented finan-ciers can not demand a clear and well thought-outplan for how the implementation, piloting andtesting of the models will be carried out.

There would be clear benefits from testing busi-ness models by piloting them in companies. First,by testing the models it is possible identify weak-nesses in the underlying theories and assump-tions thereby contributing to business studies andthe study of the particular field. Second, testingand piloting the business model is also the bestway to ensure that the companies concerned areable to take concept into practice and therebybenefit from the basic research being carried outat universities. Third, even if the model were toprove unworkable that would in itself contributeto overall knowledge and function as a basis forfurther theories and models.

Therefore, we suggest that Tekes put focus onhow business models in different technology pro-grams are implemented in practical “piloting”cases– the steps, tasks, gates and milestones. Thiswould benefit not only the field of distributed en-ergy but also other areas of business and the re-lated technologies. An industry field developsfrom technical and regulatory conformities thatset the stage for the industry. In this setting busi-ness models are needed to facilitate the utilizationof technological and governance structures. Pi-loting, testing and implementing business modelsstarts a virtuous circle where industrial utilizationbecomes commonplace which leads to increasedproduction, increased economies of scale andnew initiatives and innovations.

147

APPENDIX A

Projektit ja yhteystiedot

ABB OySuoravetoisen suurinapalukuisenkestomagneettituuligeneraattorin kehityshankeVoutilainen Ville, ville.voutilainen@fi.abb.comPL 210, HELSINKI

Ajeco OyVerkottunut Telemetria-IIHolmström John, john.holmstrom@ajeco.fiKoronakatu 1 A, ESPOO

Alufer OyLämpöpumpun kehittämisprojektiKupiainen Esko, esko.kupiainen@alufer.fiJuhontie 6, KUVANSI

Aumet OyZ-moottorin jatkoprojektiJanhunen Timo, timo.janhunen@aumet.fiLeankuja 4, MONNINKYLÄ

AW-Energy OyWaveRoller pilot plantHomanen Ilkka,ilkka.homanen@aw-energy.comLars Sonckin kaari 16, ESPOO

AW-Energy OyAalto-olosuhteiden esitutkimukseterikoislaitteistollaJärvinen Arvo, arvo.jarvinen@surfeu.fiLars Sonckin kaari 16, ESPOO

AW-Energy OyAWE-pilot-koelaitosJärvinen Arvo, arvo.jarvinen@surfeu.fiLars Sonckin kaari 16, ESPOO

AW-Energy OyAW-Energy aaltoenergialaitoksen kehitysJärvinen Arvo, arvo.jarvinen@surfeu.fiLars Sonckin kaari 16, ESPOO

AW-Energy OyAW-Energy aaltoenergialaitosJärvinen Arvo, arvo.jarvinen@tiscali.fiLars Sonckin kaari 16, ESPOO

Biovakka OyPaikallisten energialähteiden teollinenhyödyntäminen - biokaasuHeilä JyrkiGustafsson Magnus,magnus.gustafsson@pbi-institute.comKalannintie 371, VINKKILÄ

Condens OyNovel-jatkoprojektiHaavisto Ilkka, ilkka.haavisto@condens.fiTalkkunapolku 6, HÄMEENLINNA

Condens OyNovel-voimalaitosprosessin kaupallistaminenHaavisto Ilkka, ilkka.haavisto@condens.fiTalkkunapolku 6, HÄMEENLINNA

Deveinfo OyLM -lämpöturbiinin pilottiprojektiRantala Veikko, veikko.rantala@deveinfo.fiLehmusoksa Kauko,kauko.lehmusoksa@deveinfo.fiSuvipellontie 20, VASTILA

Digita OyEnergiayhtiöiden tiedonsiirtoverkkojenpalveluliiketoiminnankehittämismahdollisuudetMattila Pekka, pekka.mattila@digita.fiKarhu Jari, jari.karhu@digita.fiPL 135, HELSINKI

Empower OyHajautetun lämpövoimantuotannon etäkäyttöRuokonen Antti, antti.ruokonen@empower.fiLonka Petri, petri.lonka@empower.fiLommilantie 6, ESPOO

Enermet OyE!2023 ITEA SHOPS - Sähköenergiatiedonkeruu. Osa 1/2.Savelius Anssi, Anssi Savelius@enermet.comSalvesenintie 6, JYSKÄ

149

Gaia Group OyHajautetun CHP:n energiahallintajärjestelmäntutkimusVanhanen Juha, juha.vanhanen@gaia.fiVartiainen Eero, eero.vartiainen@gaia.fiBulevardi 6 A, HELSINKI

Gaia Power OyPäästökaupan ja lämpövarastojen optimointienergiahallintajärjestelmässäVanhanen Juha, juha.vanhanen@gaia.fiVartiainen Eero, eero.vartiainen@gaia.fiBulevardi 6 A, HELSINKI

Greenvironment OyKaatopaikkakaasun hyötykäyttö mikroturbiininavullaMalkamäki Matti,matti.malkamaki@greenvironment.comHallinkatu 1, LAHTI

Hafmex Windforce OyTuulivoimalan toimituskonseptin kehitys jamarkkinaselvitysJokinen Juhani, juhani.jokinen@hafmex.fiPL 35, ESPOO

JAL-Energy Service OyPellettilämpö 1-10 MWthAlajärvi Jorma,jorma.alajarvi@jal-energyservice.fiTakojankatu 1c B 15, TAMPERE

Jyväskylän yliopistoSähköä 10 kW ja lämpöä puupelleteistä / JYUAho Martti, martti.aho@vtt.fiPL 35, JYVÄSKYLÄN YLIOPISTO

Kemijoki OyTulvaluukkukoneetPosio Markku, markku.posio@kemijoki.fiKusmin Heikki, heikki.kusmin@kemijoki.fiPL 8131, ROVANIEMI

Klinkmann Automaatio OyLämmöntuotannon langaton valvontaVähimaa Seppo, seppo.vahimaa@klinkmann.fiPL 38, HELSINKI

Kylmätec KyPienen tuulivoimalaitoksen teknologiakehitysKontkanen PenttiJokipellonkatu 13, OUTOKUMPU

Kymenlaakson ammattikorkeakoulu OyYmpäristöä säästävät energiaratkaisut jaekotehokas yhteiskuntaMarkku Huhtinen@kyamk.fiPL 13, KOTKA

Labgas Instrument Co OyKannettava energiaVarila Reijo, reijo.varila@labgas.comOlarinluoma 15, ESPOO

Lappeenrannan teknillinen yliopistoBiopolttoainelaitoksen optimointiKoskelainen Lasse, lasse.koskelainen@lut.fiTuutti Veikko, veikko.tuutti@lut.fiPL 20, LAPPEENRANTA

Lappeenrannan teknillinen yliopistoSyrjäytysmoottoriprosessit hajautetussaenergiahuollossaKoskelainen Lasse, lasse.koskelainen@lut.fiLarjola Jaakko, jaakko.larjola@lut.fiPL 20, LAPPEENRANTA

Lappeenrannan teknillinen yliopistoBusiness creation with new conceptsin the intersection of industriesKässi Tuomo, tuomo.kassi@lut.fiPL 20, LAPPEENRANTA

Lappeenrannan teknillinen yliopistoHajautetun sähköntuotannon tulevaisuus-skenaariot ja vaikutukset liiketoimintamalleihinKässi Tuomo, tuomo.kassi@lut.fiPL 20, LAPPEENRANTA

Lappeenrannan teknillinen yliopistoORC hajautetussa energiahuollossa:perustutkimuskohteetLarjola Jaakko, jaakko.larjola@lut.fiPL 20, LAPPEENRANTA

Lappeenrannan teknillinen yliopistoHajautetun energiantuotannon modulaarinenyhdyskunnan sivuainevirtoja hyödyntäväCHP-laitosMarttila Esa, Esa.Marttila@lut.fiBergman Riikka, riikka.bergman@lut.fiPL 20, LAPPEENRANTA

Lappeenrannan teknillinen yliopistoPaikallisten sivuainevirtojen hyödyntäminenhajautetuissa energiajärjestelmissäMarttila Esa, Esa.Marttila@lut.fiHorttanainen Mika, Mika.Horttanainen@lut.fiPL 20, LAPPEENRANTA

150

Lappeenrannan teknillinen yliopistoSähkönjakelu ja hajautettu sähköntuotantoPyrhönen Juha, juha.pyrhonen@lut.fiLindh Tuomo, tuomo.lindh@lut.fiPL 20, LAPPEENRANTA

Lappeenrannan teknillinen yliopistoHajautetun voimantuotannon verkkoliityntäja koneetPyrhönen Juha, juha.pyrhonen@lut.fiLindh Tuomo, tuomo.lindh@lut.fiPL 20, LAPPEENRANTA

Lappeenrannan teknillinen yliopistoSuomalaisten ja venäläisten yritysten kilpailu-ja yhteistyöasetelmatTiusanen Tauno, tauno.tiusanen@lut.fiVäätänen Juha, juha.väätänen@llut.fiPL 20, LAPPEENRANTA

Mikkelin ammattikorkeakouluyhtymäPienten lämpökeskusten automaation jatiedonsiirron kehittäminenMäkelä Veli-Matti,veli-matti.makela@mikkeliamk.fiPL 181, MIKKELI

Mikkelin ammattikorkeakouluyhtymäLämpöenergian toimitusrajanteknistaloudelliset reunaehdotMäkelä Veli-Matti,veli-matti.makela@mikkeliamk.fiPL 181, MIKKELI

Motiva OySelvitys suomalaisen energiateknologianliiketoiminnan mahdollisuuksista BritannianmarkkinoillaNojonen Osmo, osmo.nojonen@motiva.fiPL 489, HELSINKI

MSc Electronics OyPieni hajautetun sähköenergianverkkoonkytkentälaiteSeppälä Pekka, pekka.seppala@mscgroup.fiAlasniitynkatu 30, TAMPERE

Mökkimaailma OyHybridivoimalaHakanpää TimoPL 33, TURKU

Netcontrol OyUuden sukupolven sähköasema-automaatio,vaihe 2/ 2Mäkitalo Esa, esa.makitalo@netcontrol.comKarvaamokuja 3, HELSINKI

Netcontrol OyDistributed Energy Management systemMäkitalo Esa, esa.makitalo@netcontrol.fiKarvaamokuja 3, HELSINKI

Netcontrol OyUuden sukupolven sähköasema-automaatioMäkitalo Esa, esa.makitalo@netcontrol.fiKarvaamokuja 3, HELSINKI

NHK-Keskus OyROBORA-pihattonavetta, Korhonen Onnionni.korhonen@nhk.fiLautatarhankatu 3, HÄMEENLINNA

Novoro OyNovoEnginePohjola HeikkiPoutlahdentie 12 A, ESPOO

Oivallin OyOivallinen kunnonvalvontaKarjalainen Seppo,seppo.karjalainen@oivallin.fiKauppakatu 18 C 23, JYVÄSKYLÄ

Oy Cybersoft AbE!3221 EUROENVIRON AMERLampola Sakari, sakari.lampola@cybersoft.fiRikala JussiHämeenkatu 25 B, TAMPERE

Oy Hydrocell LtdPolttokennoakun tuotekehitys jaliiketoimintavalmiuksien kehittäminenAnttila Tomi, tomi.anttila@hydrocell.fiMinkkikatu 1-3, JÄRVENPÄÄ

Oy Hydrocell LtdPolttokennoakun ja metallihydridivetyvarastonsekä vedynjakeluinfrastruktuurin kehittäminenAnttila Tomi, tomi.anttila@hydrocell.fiMinkkikatu 1-3, JÄRVENPÄÄ

Oy Merinova AbKevyen kaapeliverkkojärjestelmänkehittäminenJäntti Sauli, sauli.jantti@merinova.fiPL 810, VAASA

151

Oy Merinova AbTuulivoiman verkkovaikutukset javerkkoonliitynnälle asetettavia teknisiävaatimuksiaJäntti Sauli, sauli.jantti@merinova.fiPL 810, VAASA

Oy Merinova AbICT EnergiaklusterissaJäntti Sauli, sauli.jantti@merinova.fiPL 810, VAASA

Oy Merinova AbSähköverkon ja siihen liitetyn hajautetuntuotannon sähköteknisen suojaustekniikankehittäminenJäntti Sauli, sauli.jantti@merinova.fiPL 810, VAASA

Oy Telenor Cinclus AbRadiokommunikationslösningÖsterback PeterHeimonen Kristian,kristian.heimonen@comsel.comTiilitehtaankatu 5-7, VAASA

PEM-Energy OyEnergiajärjestelmäSeppälä Mikael, mikael.seppala@pem-energy.fiNahkahousuntie 5, HELSINKI

Powernet OyMatalan tulojännitteen AC/DC-muuttajaBaarman GöstaPasanen Jouni, jouni.pasanen@powernet.fiRautatienkatu 52, ÄÄNEKOSKI

Primet OyTalousaluekohtaisesti jätteistä energiaaHämäläinen Keijo, keijo.hamalainen@efirec.fiLänsikaari 13, HEINOLA

Prizztech OyHajautetun lämmön ja sähkön tuotantoalueellisessa energiajärjestelmässäAndersson Iiro, iiro.andersson@prizz.fiTiedepuisto 4, PORI

Rotatek Finland OyHajautettujen voimantuotantolaitteidengeneraattorit ja verkkoon liityntäMäkinen Jukka-Pekka,jukka-pekka.makinen@theswitch.fiKurronen Panu, panu.kuronen@theswitch.fiTuotantokatu 2, LAPPEENRANTA

Savonia Power OyPienvoimalaitoksen tuotekehitysNissinen Hannu,hannu.nissinen@savoniapower.comWredenkatu 2, VARKAUS

Savonia-ammattikorkeakoulun kuntayhtymäMaaseudun paikallinen sähkönjakelu- jakäyttöjärjestelmäRouvali Juhani, juhani.rouvali@pspt.fiRissanen Risto, risto.rissanen@pspt.fiPL 6, KUOPIO

Seinäjoen ammatillisenkorkeakouluopetuksen kuntayhtymäIntegrated solutions for distributed energysectorKuusisto Jari, jari.kuusisto@sci.fiPL 412, SEINÄJOKI

Suomen Lämmitystieto OyPientalon öljylämmityksen jaaurinkolämmityksen integrointiVirsunen Ari, ari.virsunen@kolumbus.fiRauhala Hannu, hannu.rauhala@pp.inet.fiVäinö Auerin katu 10, HELSINKI

Tampereen teknillinen yliopistoEnergialogistiikkaAittomäki Antero, antero.aittomaki@tut.fiKeskinen Simo, simo.keskinen@uwasa.fiPL 527, TAMPERE

Tampereen teknillinen yliopistoSähkönjakelun aktiiviset hallintamenetelmätJärventausta Pertti, pertti.jarventausta@tut.fiPL 527, TAMPERE

Tampereen teknillinen yliopistoSähköverkkoliiketoiminnan kehittäminen,vaihe 2/3Järventausta Pertti, pertti.jarventausta@tut.fiJärventausta Pertti, pertti.jarventausta@tut.fiPL 527, TAMPERE

Tampereen teknillinen yliopistoHajautetun sähköntuotannon liittäminensähköverkkoon 2/2Järventausta Pertti, pertti.jarventausta@tut.fiRepo Sami, sami.repo@tut.fiPL 527, TAMPERE

152

Tampereen teknillinen yliopistoHajautetun sähköntuotannon liittäminensähköverkkoonJärventausta Pertti, pertti.jarventausta@tut.fiRepo Sami, sami.repo@tut.fiPL 527, TAMPERE

Teknillinen korkeakouluBiomassan epäsuoraan polttoon perustuvamikroturbiiniprosessiFogelholm Carl-Johan,carl-johan.fogelholm@hut.fiPL 1000, TKK

Teknillinen korkeakouluDistributed modular hydrogen systemsGasik MichaelValo Taina, taina.valo@hut.fiPL 1000, TKK

Teknillinen korkeakouluSähköä 10 kW ja lämpöä puupelleteistä / TKKLampinen Markku, markku.lampinen@tkk.fiPirhonen Janne, janne.pirhonen@tkk.fiPL 1000, TKK

Teknillinen korkeakouluPolttokennojen lämmönsiirrin ratkaisujenanalysointi ja optimointi CHP-sovellutuksiinLampinen Markku, markku.lampinen@hut.fiNoponen Tuula, tuula.noponen@tkk.fiPL 1000, TKK

Teknillinen korkeakouluBiopolttoainetta käyttävän yhdistetyn lämmön-ja sähköntuotantoyksikön kehittäminen jatestausLampinen Markku, markku.lampinen@hut.fiPL 1000, TKK

Teknillinen korkeakouluTCP/IP-arkkitehtuuri hajautetun tuotannonohjauksessaLehtonen Matti, matti.lehtonen@tkk.fiPL 1000, TKK

The Switch Electrical Machines OyMultimegawattikoneet ja liiketoiminnan kehitysMäkinen Jukka-Pekka,jukka-pekka.makinen@theswitch.fiLaukkanen Jorma,jorma.laukkanen@theswitch.fiTuotantokatu 2, LAPPEENRANTA

Turun kaupunkiLiiketoimintamallit hajautettujenenergiajärjestelmien toimittamiseenAhtiainen Anne,anne.ahtiainen@vsenergiatoimisto.fiKristiinankatu 1, TURKU

Vaasa Engineering OyBiovoimalasovelluksen kehittäminen javakiontiNurmi Jukka, jukka.nurmi@veo.fiHeinilä Jari, jari.heinila@veo.fiRunsorintie 5, VAASA

Vaasan yliopistoInformaatiokartta energiajärjestelmänhallintaanLinna Matti, matti.linna@uwasa.fiPL 700, VAASA

Vaasan yliopistoLiiketoiminta hajautetussa energiantuotannossaPeura Pekka, pekka.peura@uwasa.fiPL 700, VAASA

Valtion teknillinen tutkimuskeskusEnergiavarastot hajautetun sähköenergianhallinnassaAlanen Raili, raili.alanen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusKeskikoon energiavarastot hajautetunsähkönjakelun sovelluksissaAlanen Raili, raili.alanen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusEnergian varastoinnin teknologiat SuomentuulivoimalaitoksissaAlanen Raili, raili.alanen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusPienten ja keskisuurten polttokattiloidenmateriaali- ja valmistustekniikatEklund Pentti, pentti.eklund@vtt.fiVirta Jouko, jouko.virta@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusTuulivoiman järjestelmävaikutusten arviointiHolttinen Hannele, hannele.holttinen@vtt.fiPL 1000, VTT

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Valtion teknillinen tutkimuskeskusTuuli- ja vesivoiman yhteisajo; IEA -yhteistyöHolttinen Hannele, hannele.holttinen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusTuulivoiman kansainvälinen yhteistyö IEAR&D WINDHolttinen Hannele, hannele.holttinen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusHajautettujen energiajärjestelmienkilpailukyvyn parantaminenKalliokoski Petri, petri.kalliokoski@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusSimulointiympäristö hajautetun tuotannonverkkoonliittämisen ja verkostovaikutustentutkimiseenKauhaniemi Kimmo,kimmo.kauhaniemi@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusEkotehokas rakentaminen ja asuminenKokkala Matti, matti.kokkala@vtt.fiNieminen Jyri, jyri.nieminen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusMULTIPOWER tutkimusympäristöKomulainen Risto, risto.komulainen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusHajautetun CHP:n EHJ-konseptiKoreneff Göran, Goran.Koreneff@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusSuperkondensaattorin kehitys, vaihe 3Keskinen Jari, jari.keskinen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusSähköä 10 kW ja lämpöä puupelleteistä / VTTLinna Veli, veli.linna@vtt.fiHeiskanen Veli-Pekka,veli-pekka.heiskanen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusSuperkondensaattorin kehitys, vaihe 2Raukola Jaakko, Jaakko.Raukola@vtt.fiKeskinen Jari, jari.keskinen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusSuperkondensaattorin kehitys, vaihe 1/2Raukola Jaakko, Jaakko.Raukola@vtt.fiKeskinen Jari, jari.keskinen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusPEM-polttokennotehonlähteen kehittäminen,vaihe 3Rosenberg Rolf, Rolf.Rosenberg@vtt.fiValkiainen Matti, matti.valkiainen@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusFINSOFC 2006Rosenberg Rolf, Rolf.Rosenberg@vtt.fiKiviaho Jari, jari.kiviaho@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusPolttokennoteknologian ja -liiketoiminnankehitäminen SuomessaRosenberg Rolf, Rolf.Rosenberg@vtt.fiPL 1000, VTT

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154

Valtion teknillinen tutkimuskeskusUrheilupaikkojen integroidutlämmitys-jäähdytystekniset ratkaisutSipilä Kari, kari.sipila@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusLämpökaupan tekniset ratkaisut hajautetunenergian tuotannossaSipilä Kari, Kari.Sipila@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusTuulivoimamallit sähköverkkotarkasteluissaUski Sanna, sanna.uski@vtt.fiPL 1000, VTT

Valtion teknillinen tutkimuskeskusPaikallisten energiaresurssien hallintahajautetussa energiajärjestelmässäWahlström Björn, bjorn.wahlstrom@vtt.fiTommila Teemu, teemu.tommila@vtt.fiPL 1000, VTT

Verteco OySuuritehoinen 4Q-taajuusmuuttajatuulimyllykäyttöön rinnankytkemälläTörmänen Pasi, pasi.tormanen@verteco.comPL 810, VAASA

Winwind OyWWD GlobalJääskeläinen Veli-Matti,veli-matti.jaaskelainen@winwind.fiElektroniikkatie 2 B, OULU

Winwind OyWWD-1 VientimalliJääskeläinen Veli-Matti,veli-matti.jaaskelainen@winwind.fiElektroniikkatie 2 B, OULU

WM-data Utilities OyjSähkön asiakastietojärjestelmäTommila Timo, timo.tommila@wmdata.fiLaukkanen Jorma, jukka.sirkia@wmdata.fiLaserkatu 6, LAPPEENRANTA

Wärtsilä Biopower OyModuloitu, sarjatuotantoon perustuvabiovoimalaitosJuha, juha.huotari@wartsila.comArabianranta 6, HELSINKI

Wärtsilä Biopower OyArinakattilan päästöjen hallintaHuotari Juha, juha.huotari@wartsila.comJääskeläinen Kari,kari.jaaskelainen@wartsila.comArabianranta 6, HELSINKI

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Wärtsilä Oyj AbpPolttokennotuotteen T&K-ohjelmaFontell Erkko, erkko.fontell@wartsila.comPL 196, HELSINKI

Wärtsilä Oyj AbpSOFC polttokennon virranmuokkaus ja ohjausFontell Erkko, erkko.fontell@wartsila.comKeränen Kimmo,kimmo.keranen@wartsila.comPL 196, HELSINKI

Wärtsilä Oyj AbpPolttokennotuotteen kehitysohjelmaFontell Erkko, erkko.fontell@wartsila.comPL 196, HELSINKI

Wärtsilä Oyj AbpPolttokennotuotteen kehitysohjelmaFontell Erkko, erkko.fontell@wartsila.comPL 196, HELSINKI

Åbo AkademiBiokaasuun perustuvan hajautetunenergiantuotannon arvoketjun elinkaariGustafsson Magnus,magnus.gustafsson@pbi-institute.comTuomiokirkontori 3, TURKU

Åbo AkademiAlueellisten sekä rakennusten kylmä- jalämpöjärjestelmien yhteiskäyttöSaxén Henrik, henrik.saxen@abo.fiSöderman Jarmo, jarmo.soderman@abo.fiTuomiokirkontori 3, TURKU

Åbo AkademiDesign of Optimal Distributed Energy SystemsSaxén Henrik, henrik.saxen@abo.fiSöderman Jarmo, jarmo.soderman@abo.fiTuomiokirkontori 3, TURKU

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Tekes Technology Reports in English

11/2007 DENSY – Distributed Energy Systems 2003–2007. Final Report. 155 p.

2/2007 FENIX – Interactive Computing 2003–2007. Final Report. 136 p.

1/2007 FUSION Technology Programme Report 2003–2006. Final Report. 184 p.Seppo Karttunen and Karin Rantamäki (Eds)

17/2006 PINTA – Clean Surfaces 2002–2006. Final and Evaluation Report. 228 p.

13/2006 Finnish National Evaluation of EUREKA and COST. Evaluation Report. 95 p.Sami Kanninen, Pirjo Kutinlahti, Terttu Luukkonen, Juha Oksanen andTarmo Lemola

11/2006 Competitiveness through Integration in Process Industry Communities.Evaluation of Technology Programme “Process Integration 2000–2004”.Evaluation Report. 17 p.

8/2006 AVALI – Business Opportunities from Space Technology 2002–2005.Final Report. 79 p.

6/2006 New Knowledge and Competence for Technology and Innovation Policies– ProACT Research Programme 2001–2005. Final Report. Edited by PekkaPesonen. 137 p.

3/2006 ELMO – Miniaturising Electronics 2002–2005. Final Report. 238 p.

12/2005 NETS – Networks of the Future 2001–200. Evaluation Report, ExecutiveSummary. 19 p. Mervi Rajahonka and Mikko Valtakari.

1/2005 NETS – Networks of the Future 2001–2005. Final Report. 213 p.

10/2004 Competitiveness through internationalisation – Evaluation of the means andmechanisms for promoting internationalisation in technology programmes.Evaluation Report. 89 p. Kimmo Halme, Sami Kanninen, Tarmo Lemola,Erkko Autio, Erik Arnold, Jesper Deuten.

6/2004 Developing Technology for Large-Scale Production of Forest Chips – WoodEnergy Technology Programme 1999–2003. Final Report. 98 p. Pentti Hakkila.

22/2003 Presto – future products. Added Value with Micro and Precision Technology1999–2002. Final Report. 110 p.

21/2003 Evaluation of the Finnish-Swedish R&D programme EXSITE, 2001–2003,Evaluation Report. 73 p. Risto Louhenperä, Olle Nilsson.

13/2003 Targeted Technology Programmes: A Conceptual Evaluation – Evaluation ofKenno, Plastic processing and Pigments technology programmes.Evaluation Report. 104 p. Erkko Autio, Sami Kanninen, Bill Wicksteed.

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October 2007 ISSN 1239-1336ISBN 978-952-457-388-7

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Tel. +358 1060 55000, Fax +358 9 694 9196, E-mail: tekes@tekes.fiwww.tekes.fi

DENSY – Distributed Energy Systems 2003–2007Final Report

Further information

Martti KorkiakoskiTekes

Tel. +358 10 60 55875martti.korkiakoski@tekes.fi

Jonas WolffTekes

Tel. +358 10 60 55874jonas.wolff@tekes.fi

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Final ReportTechnology Programme Report 11/2007

DENSY – Distributed EnergySystems 2003–2007