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The Answer: Smart Grid How Do We Build the Efficient, Secure, Cost Effective Power Grid of Tomorrow? Bernard Norton Manager – Energy Automation Transpower 2040 Conference Christchurch, 18 th June 2009

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The Answer: Smart Grid

How Do We Build the Efficient, Secure, Cost Effective Power Gridof Tomorrow?

Bernard NortonManager – Energy Automation

Transpower 2040 ConferenceChristchurch, 18th June 2009

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Ideas / Definitions of Smart Grid

“Auto-balancing, self-monitoring power grid that accepts any source of fuel(coal, sun, wind) and transforms it into a consumer’s end use (heat, light, warm water) with minimal human intervention.”

“A system that will allow society to optimize the use of renewable energy sources and minimize our collective environmental footprint.”

“It is a grid that has the ability to sense when a part of its system is overloadedand reroute power to reduce that overload and prevent a potential outage situation.”

“A grid that enables real-time communication between the consumer and the utility, allowing the consumer to optimize energy usage based on environmental and/or price preferences.”

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

External InfluencesOperational Factors

Starting Point: Changing Needs, Growing Demands

•High supply quality

requirements

•Aging infrastructure and lack of

experts

•Greater network complexity and vulnerability

•Increased energy trading •Cost

pressure

•Legal and regulatory

framework

•CO2reduction

•Integration of renewable energy

sources

•Distance btwngeneration and load

•Fluctuating in-feed

•Integration of DER

•Integration of intelligent buildings

•Energy efficiency

Network Conditions& Requirements

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Efficient grid

Multiple in-feed

Demand side management

Quality assuranceAging infrastructure and workforce

Starting Point: Drivers for Flexible and Efficient Grids

Drivers Challenges for the utilities

Competitive energy prices

Need for more energy

Environmental sustainability

Security of supply

Regulatory and political push

for profitability

for flexibility

for accessibility

for reliability

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Integration of distributed energy resources (DER) and storage by virtual power plants

Smart metering and load management

Smart, self-healing grid

Condition monitoring for better asset performance and grid asset management for advanced asset management

Active participation of buildings in the grid as consumer, producer, and energy storage facility

Security, sustainability, and efficiency of power supply

From To

Manual and operating experience based reaction on critical situations

Unmanaged, intransparent consumption

Transmission

Distribution

Central generation, decentralized consumption

Relevance

Primary equipment condition not well known and not overall integrated

What does “Smart Grid” really mean?

Optimization of building life cycle efficiency as standalone process

Congestion, bottlenecks, and blackouts

Homogeneous Smart Grid communication network with IP/ Ethernet connectivity between all components

Heterogenous communication networks varying in capacity and bandwidth

Smart substation automationComplex, personal intensive engineering and operating

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Transmission Solutions

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Smart Grid Example – HVDC & FACTS

SmartGeneration

Transmission Grid Distribution Grid

SmartConsumption

Communication Solutions

OffshoreWind Power

DistantSolar Power

DistributedEnergy Resources

HVDC &FACTS

SubstationAutomation &

Protection

ConditionMonitoring

DistributionAutomation

SmartMeters

Industrial &Commercial

Loads

ResidentialLoads

E-Cars

System IntegrityProtection

AdvancedEnergy MgmtSystem (EMS)

AssetManagement

DistributionManagement

Systems (DMS)

Meter DataManagement

(MDM)

E-Cars

Smart Grid

Project is designed to be a cost effective energy efficient solution addressing San Francisco’s need for additional transmission & in-city generation capacity.

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Energy exchange by sea cableNo increase in short-circuit power

Security of Supply for San Francisco area with HVDC PLUS

Transmission constraints before TBC

Transmission constraints after TBC

Elimination of transmission bottlenecks

P = 400 MWQ = +/- 170-300 MVAr

2010

Dynamic voltage support

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Communications Solutions

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

One-stop communication solutions for utilities and retailers include

Enabling Interaction

IP solutions

SDH/PDH solutions

Powerline carrier and teleprotection equipment

Wireless solutions

Optimized solutions for medium and low voltage applications

Live line installation

End to End Communication Network Solutions are the basisto build a Smart Grid for Power Utilities

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Substation Automation Solutions

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Substation Automation Characteristics

Today’s standard Evolution Smart Grid smart substation

Partly digital system, RTU, and SAS

Heterogenouscommunication systems and protocols

Few functionality and automation

Hardware oriented engineering

Reactive information

Persistent digital automation

Standardization

Totally integrated energy automation (engineering, communication, security)

Basic solutions and applications

Plug & play approach

Self-healing automation functions

Intelligent applications

Online information (operational and non-op.)

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Smart Grid Example – Substation Automation & Protection

SmartGeneration

Transmission Grid Distribution Grid

SmartConsumption

Communication Solutions

OffshoreWind Power

DistantSolar Power

DistributedEnergy Resources

HVDC &FACTS

SubstationAutomation &

Protection

ConditionMonitoring

DistributionAutomation

SmartMeters

Industrial &Commercial

Loads

ResidentialLoads

E-Cars

System IntegrityProtection

AdvancedEnergy MgmtSystem (EMS)

AssetManagement

DistributionManagement

Systems (DMS)

Meter DataManagement

(MDM)

E-Cars

Smart Grid

Setup of a redundant High Speed Ethernet Process Bus system to integrate HV primary technology signals via non-conventional transducers and merging units into the digital protection and automation environment

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

To be harmonizedwith CIM

IEC 61970*Control CenterControl Center

IEC 61850IEC 61850

IEC 61850 (Ethernet)Protection & Control

Firewall

Router

Digital Instrument TransformerData via IEC61850-9-2

IEC61850 Station Bus

MergingUnit

IED IED

communication to othersubstatons*

IEC61850 Process Bus

*in standardizationwork

CTVT

Device Integration via IEC 61850 Process Bus

x

CircuitBreakerController

CBC

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Asset Management Solutions

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Why Condition Monitoring?

Loss of expertise

Condition monitoring:1. enables effective prediction and, thus, failure avoidance2. offers a possibility for safe use of assets at higher loads and, therefore,

supports both asset management and operation

Cutbacks on expenditureRetirementsDownsizing

Ageing equipmentPostponed invest in T&D infrastructureExtended component lifetime

Higher loadsRenewable energy transmissionIncreasing energy demand

Increasing performance targetsPenalties

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Seamless Integration of Energy Resources

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

SmartGeneration

Transmission Grid Distribution Grid

SmartConsumption

Communication Solutions

OffshoreWind Power

DistantSolar Power

DistributedEnergy Resources

HVDC &FACTS

SubstationAutomation &

Protection

ConditionMonitoring

DistributionAutomation

SmartMeters

Industrial &Commercial

Loads

ResidentialLoads

E-Cars

System IntegrityProtection

AdvancedEnergy MgmtSystem (EMS)

AssetManagement

DistributionManagement

Systems (DMS)

Meter DataManagement

(MDM)

E-Cars

Smart Grid

Define, build and commonly market a virtualpower plant and associated business model for integration of distributed energy ressources

Smart Grid Example – Distributed Energy Resources

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Distributed Energy Resources (DER) and Storage

Virtual power plant with RWE (Germany)

Cost-optimal planning and management of decentralized power supply plants

Generation ranging from 500 kW to several MW each Includes coordination of different carriers

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Infusing Intelligence into the Last Mile

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Smart Grid Example – Smart Metering & Load Mgt

SmartGeneration

Transmission Grid Distribution Grid

SmartConsumption

Communication Solutions

OffshoreWind Power

DistantSolar Power

DistributedEnergy Resources

HVDC &FACTS

SubstationAutomation &

Protection

ConditionMonitoring

DistributionAutomation

SmartMeters

Industrial &Commercial

Loads

ResidentialLoads

E-Cars

System IntegrityProtection

AdvancedEnergy MgmtSystem (EMS)

AssetManagement

DistributionManagement

Systems (DMS)

Meter DataManagement

(MDM)

E-Cars

Smart Grid

Multi-Phase Smart Metering Project using our AMIS concept:Distribution Automation integration due to smart PLC communication architectureIntegrated metering, load switching and power quality

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

AMIS Reference Project at

control center infrastructure

AMIS management

frontend

households, small industries, farming

engineering OPM II

remote meterreading for loadprofile meters

transformer stations

AMIS data concentrator

AMIS data concentrator

AMIS data concentrator

3.000 transformer stations connected via radio

600 transformer stations connected via fiber optics

40 radio relay stations

AMIS meter

AMIS load-switching device

AMIS third-party device gateway

AMIS meter

AMIS load-switching device

AMIS third-party device gateway

AMIS meter

AMIS load-switching device

AMIS third-party device gateway

SAP IS-U

AMIStransaction server

ripple control center

PQ center

Fiber optics(IEC 61870-5-104)

radio(IEC 61870-5-101)

XML

SCADA system*)

IEC 60870-5-104

*) planned

RTU functionality*)

RTU functionality*)

RTU functionality*)

meters of other media*)

meters of other media‘*)

meters of other media*)

load profilemeter

load profilemeter

load profilemeter

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

The benefits of Smart Grid

Minimum downtime and optimized life cycle costs through online monitoring and control of all grid assets

Reduction in CO2 emissions through grid access of large wind, hydro, and solar power plants

Significant improvement of customer processes and services

Over 50 percent time savings in engineering and commissioning

Active management of power generation and load profiles of buildings

Flexibility

Reliability Profitability

Accessibility

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Entire Energy Conversion Chain - Smart Infrastructure

Power transmission

Smart metering

Communications solutions

Condition monitoring/asset management

Distribution automation

Decentralized energy management system

Building automation

Smart substation automation

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

The Future Enabled by Smart Grid

Urban Areas and Underground Grid

car-parking for plug-in vehicles, buy or sell electricity shaving

peak loads

solar-cell films on building surfaces contribute to power

generation

wind turbines as part of tower building architecture

underground power corridors and substations coupled with

storage facilities

CO2 emissions are constantly on display

nano-materials enhance insulation and conductivity of

equipment

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

The Future Enabled by Smart Grid

Bulk Power Generation and Long Distance Transmission

supply of deep-sea oil & gas exploration and

production

large storage plants buffer fluctuating

generation

wind farm connected by Gas Insulated Lines or

cables (DC or AC)

CO2 sequestration and storage facilities

large centralized power plants supply the majority of power demand

nano-materials enhance insulation and conductivity of

equipment

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

The Future Enabled by Smart Grid

Smart Grid Application at Decentralized Generation CO2 emissions are constantly

on display

wireless sensors and smart metering coupled to load

management and market driven energy supply software

car-parking for plug-in vehicles, buy or sell electricity shaving

peak loads

large centralized power plants supply the majority of power demand large and very small generation

plants need to be managed in parallel

storage plants buffer fluctuating generation

energy corridors underground by Gas

Insulated Lines or cables (DC or AC)

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.

Decentralized Generation and Storage in Rural Areas

large and very small generation plants need to be managed in

parallel

storage plants buffer fluctuating generation

wireless sensors and smart metering coupled to load

management and market driven energy supply software

large and very small generation plants need to be managed in

parallel

The Future Enabled by Smart Grid

For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.For internal use only / Copyright © Siemens Australia & NZ 2007. All rights reserved. Siemens. Innovation for generations.