Intelligent distribution grid: a business case as such … distribution grid: a business case as such and a ... • PowerBlock 150 ... • broadband when DSL or TV cable •

Intelligent distribution grid: a business case as such and a

business enablerRonnie Ronnie Belmans

Katholieke Universiteit Leuven, Belgium

[email protected]

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Outline

• European Energy Policy • New grid challenges

Future energy demand New generation paradigm Ageing assets Market and regulation

• Smart grid vision From passive towards active grids Enabling technologies Communication New Grid Visions

• Business Models • R&D, regulation and funding

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Outline





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• Three Agencies • ACER: Agency for the Cooperation of Energy Regulators • EACI: Executive Agency for Competitiveness & Innovation • ESA: Euratom Supply Agency

• Actions • Technology & Innovation (SET) • Infrastructure (EEGI) • Renewable energy (NER300) • Research (EERA, ERA Net+) • …

• Stakeholders • Industrial Partners (Eurelectric) • System Operators (e-DSO, ENTSO-E)

Directorate-General for Energy

Regulation of Monopolies

Innovation and Competitiveness

Low Prices And Efficiency

Primary Energy Sources

Reliability and Quality

Capacity

Nature Preservation

Climate Change

Kyoto and Post-Kyoto

Environment

Source: European Commission of Energy, website

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EU 20-20-20 Goals

Reduction of greenhouse gases

Energy consumption, Efficiency increase

Share of renewable energy

-20% -20% 100%

20%

8.5%

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CO2 neutral electric energy supply

• Generation-side – Energy efficiency

– Nuclear

– CCS

– Renewables

• Demand-side – Energy efficiency & Intelligent

consumption

• Residential

– Smart appliances

– Intelligent heating/cooling

– insulation

• Transportation

– Electric vehicles

Required paradigm shift on the demand-side

EREC: RE-thinking 2050

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Technology & Innovation

• SET-plan – Accelerating development and deployment

of cost-effective low carbon technologies – Industrial Initiative with large scale pilot projects – Themes:

• Wind, Solar • Nuclear • CCS • Bio-energy • Green Cars • Fuel cells • Hydrogen • Smart Cities • Electricity Grids • Sustainable Energy

European Industrial Initiative

Industry

European Research

Area

Financing

EuropeanEnergy

Research Alliance

Research

European Institute of

Innovation & Technology

Education

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Infrastructure

• The European Electricity Grid Initiative (EEGI) – Accelerating development and deployment of electricity

networks capable of handling the massive deployment of renewable and decentralised energy sources as proposed by the SET-plan

– Initiative of the System Operators (EDSO, ENTSOE)

– Theme: • Active Smart Grid

– TWENTIES, PEGASE, REALISEGRID

• New Market Rules

– OPTIMATE

• Intelligent Metering

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of the System Operators (EDSO, ENTSOE)

Source: The European Electricity Grid initiative, Roadmap 2010-18 and Detailed Implementation Plan 2010-12, 25th May 2010 [online]

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Renewable Energy

• NER300

– Subsidises installations of innovative renewable energy technologies and Carbon Capture and Storage

– 300 million allowances in the New Entrants’ Reserve of the European Emissions Trading Scheme

– Themes

• Innovative Renewable Energy – Biofuels, solar, wind, geothermal, hydro, ocean, ...

• Grid Integration

• Carbon Capture Storage

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Research & Education

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Outline





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New grid challenges

1. Future of energy demand

2. Generation paradigm shift

3. Ageing assets

4. Markets and regulation

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Future of electricity demand

• Rise of consumption at 2% a year

– 1250 TWh/year extra by 2030

• Dependence on imported fuels?

• Plug-in Hybrid Electric Vehicles?

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New generation paradigm

• Current grid = hierarchical

• One-way pipeline

– Source has no realtime info on termination points

– Peak demand reserve => inefficient use of grid

G G Generation

Transmission

Distribution Demand

Traditional one-way supply system

Supply

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• Increasing wind generation & CHP units in Denmark

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• Importance of wind forecasting

– Wind speed change of 1 m/s = variation of 320MW on a capacity of +-2400MW.

– Control systems needed to avoid excessive backup capacity

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of + 2400MW.

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“Fresh breeze” means somewhere

between 200 and 1,600 MW

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• Future grid = distributed

– Wind and solar “farms”

– Home PV + CHP+ PHEV

Demand

Traditional one-way supply system

Generation

Bi-directional supply system

Supply G G Generation

Transmission

Distribution

G G Generation

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Demand-pull CO2-lean energy supply needs renewable energy resources Dependency on primary energy sources Rising/fluctuating (?) fuel prices Liberalized market opportunities Energy efficiency: CHPs Subsidies, e.g. ROC

Technology-push Experience curves of PV and wind Break-even point? Although not entirely true for wind due to bottlenecks in supply chain… Electrical energy storage?

Source: IEA

Source: PhD G. Nemet

Source: IEA

PV cost

Wind generation cost

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Ageing assets

• Lagging investments in infrastructure

– Rising demand = decreasing safety margins

Installation wave in European distribution systems in the 60s & 70s Replacement wave expected with business-as-usual approach Opportunity for new system architecture and operation schemes

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Markets and regulation

• Energy market

• Data + information need > 20G€ investment (based on 100€ per connection)

GenCo GenCo

DistCo DistCo

Retail Retail

GenCo

TransCo

DistCo

Retail

REGULATED

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Outline





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SmartGrids Vision

What is a SmartGrid?

A SmartGrid is an electricity network that can

intelligently integrate the actions of all users connected to it – generators, consumers and those that do both – in order to efficiently deliver sustainable, economic and secure electricity supplies.

European Technology Platform SmartGrids

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SmartGrids Vision

Central & dispersed sources

Smart materials and power electronics

Smart materials

Central & dispersed intelligence

Seamless integration of new applications

End user real time Information & participation

Multi-directional ‘flows’

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SmartGrids Vision

DSO’s

SmartGrid

Consumers Generators

DSO’s

TSO’s SmartGridSmartGridSmartGrid

Actions

Consumers

sustainable, economic and secure electricity supply

Technology

Standards Small scale generation

Regulations

Market considerations Consumer

choice

Reduced environmental impact

Security of supply

Communication

Innovation Self-healing

Energy Awareness

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From passive towards active grids

• More electrical consumption – +1à2% per annum

• Unpredictable generation • photovoltaics (PV), wind,…

• Storage is not possible yet • battery storage, electric car batteries,…?

• Communication required

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From passive towards active grids

• Load control – active demand management

• Easily controllable loads: heating, ventilation, airco future: also electric vehicles

• Moderately controllable loads: washing machines, dryer, dish washer, freezer,… (residential constraints!)

– besides passive demand response • awareness, different tariff schemes (e.g. real-time

pricing) • Storage control

– e.g. electric vehicles (plug-in and/or full EV) • Distributed generation control

– limiting peak PV power can allow more PV energy

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Smart metering

• AMR – automated meter reading • AMM – automatic meter management

– AMR + dimming, shutdown, reconnection, etc. • AMI – automated meter infrastructure

– includes bidirectional communication technology

• Smart meters – AMM + real-time control

• streaming, demand response, ….

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Flexible Consumption

Source: MoMa Modellstadt Mannheim

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Storage

• Large scale integration renewable energy resources

– Curtailing?

– Energy Storage

• Grid services

– Peak shaving

– Voltage control

– PF correction

– Energy arbitrage Source: KULeuven - ELECTA

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Storage

Source: Electrical Storage Association, www.electricitystorage.org

Source: Prospects for Large-Scale energy Storage In Decarbonised Power Grids; IEA; 2009

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Installed systems

Source: Electrical Storage Association, www.electricitystorage.org

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Storage

Source: www.consumersenergy.com

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Electrochemical storage: batteries

Batteries

Normal

Pb

Gel VRLA

AGM VRLA

Open cell

Ni

NiCd

NiMH

NiZn

Li

LiCoO2

LiMn2O4

LiFePO4

Li4Ti5O12

Metal-air

High temperature

NaS NaNiCl

Flow-type

PSB

VRB

ZnBr

CeZn

And many many more….

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NiCd: projects

• Golden Valley Electric Association, Fairbanks, Alaska, USA, 2001

• The BESS will automatically pick up 26 megawatts of load for 15 minutes (or 40 MW for 7 minutes) in the event of power plant or transmission line equipment failure

• There are four Ni- Cd battery strings. Each string consists of 344 series connected battery modules. The batteries are monitored with a battery monitoring system (BMS).

http://www05.abb.com/global/scot/scot232.nsf/veritydisplay/faf8b33a47f7ef21c1256d94002a24a7/$file/prs%20bess%20gvea_rev1.pdf]

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LiFePO4: projects

• AES Energy Storage is deploying 44MW of A123’s Smart Grid Stabilization Systems (SGSS)

• Various new projects including an energy storage project in Johnson City, N.Y. The project is projected to be completed by the end of 2011.

• Until now, A123 has delivered more than 20MW of SGSS units to customers worldwide to perform frequency regulation and other ancillary services.

http://www.smartmeters.com/the-news/1131-a123-systems-partners-in-new-projects.html

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NaS: projects

• This 34 MW system (220 MWh) has been co-developed in UK & Europe in the ’80 and ‘90s and licensed to Japan.

• It is used for storage for the nearby 51 MW Wind farm.

• A typical system of NGK Insulators, LTD. has a rated power of 2 MW and rated capacity of 12 MWh.

• The lifetime has been predicted to 15 years. • NAS systems can provide fast acting reserves, standby reserves, black

start and frequency regulation.

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VRB: projects

• The VRB technology is commercialized by VRB Power systems http://www.vrbpower.com

• Energinet.dk, the Danish Trans-mission System Operator (TSO), owns and operates the high-voltage electric power system in Denmark, a country with roughly 25% wind power penetration.

• Energinet.dk therefore has an urgent challenge facing more and more power dispatchers – the need to optimize performance of renewable energy while ensuring system security and stability.

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ZnBr: projects

• 200 kW/400 kWh of energy, 48 of RedFlow’s battery modules • Energy storage from a 390 kW section of the UQ 1.2MW PV array • Initial installation at UQ in mid-summer, upgrade in May 2011 to full

capacity. Operate for a 24 month demonstration phase. http://www.redflow.com.au/Files/2010%2021%2010%20UQ%20Press%20R

elease%20-%2021%20Oct%2010.pdf

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ZnBr: projects

• TransFlow 2000

• 500 kW/2.8 MWh BESS

• Four 125kW grid-tied inverter/rectifiers and grid interconnections.

• System Controller: real-time monitoring, control, management and communication, with remote access.

• Thermal Management: active control of temperature for all system components

• PowerBlock 150

• 150 kW peak, 100 kW cont.

• 150 kWh

• http://www.premiumpower.com/

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Communication

SmartGrids require increased Communication

Source: De Craemer, Deconinck, Analysis of the resilience of communication infrastructures on Smart Grid coordination strategies

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Communication

o Possible communication means: – PLC: Power Line Carrier

• + no extra cabling required • - not available during certain power problems, less reliable than

other comm. means, smallband – Wired over telephone / cable infrastructure

• + very reliable • broadband when DSL or TV cable • - requires phone connection or access to cable, short distances

– Wireless mobile telephony and data (2G/3G) • - smallband (2G) + broadband (3G) • - no good coverage in cellar, availability 3G < 100%

– Wireless: radio frequency (RF) • - smallband, requires antenna infrastructure • + very reliable, good coverage

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Communication

• Availability: fraction of time that the system is operational

• Reliability: probability to function correctly for specific time period – redundancy increases A and R – encoding & protocols enhance A and R

• Integrity: no undeserved changes • important for specific messages (data packets) • encoding can enhance integrity

• Confidentiality: no unauthorised disclosure – important for specific messages (data packets) – encryption can enhance confidentiality

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Communication

• Copper based energy infrastructure (electricity)

• Optimized topology • Power electronic devices

• Communications layer • Requirements of speed, quality, reliability, dependability

with costs • Different communication technologies at the same time

• Software layer • Multiple software functions for normal operation: doing

locally and independently the maximum number of functions, reporting/requesting from upper level minimum possible information necessary

• Network reconfiguration • Self-healing procedures • Fault management • Forecasting, modeling & planning

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Communication

Issue: Interruption of Communication

Source: De Craemer, Deconinck, Analysis of the resilience of communication infrastructures on Smart Grid coordination strategies

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Grid Hierarchies

Virtual Power Plants (VPP) Flexible representation of load & generation, acting as 1 entity towards DSO/TSO

Cell concept (Denmark) Hierarchical structure in the power system in which each cell coordinates local balance (market for DG), clears fault situations and communicates with other cells in energy trading

(Source: www.fenix-project.org) (Source: Risö)

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Public Acceptance much more than technology…

Smart Grids extend beyond networks and will embrace transport, the built environment, the behaviours and engagement of customers, and will need societal acceptance.

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Public Acceptance much more than technology…

Smart Grids will require

Customer Acceptance and Participation in:

...Intelligent Appliances & Demand Response

...Micro-generation providing grid services

...Smart metering with 2-way communications

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Key Challenges

• Strengthening the grid ensuring sufficient transmission capacity to interconnect energy resources, especially RES, across Europe – Moving offshore

– Integrating intermittent generation

– Preparing for electric vehicles

• Enhancing intelligence of generation, demand and most notably in the grid – Communication between millions of parties in a single market

– Developing decentralized architectures to enable smaller scale electricity supply systems to operate harmoniously

• Activating consumers, with or without their own generation, to play an active role in the operation of the system

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Outline





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Roles in Business Models

Aggregator and manager of dispersed power sources

Aggregator and manager of ancillary services for local network and the grid

Manage constraints and minimise losses

Utilise smart meter data Manage asset condition / predict

failure events Intelligent demand management in

emergencies

Energy efficiency Customer overall participation Customer micro-gen types Heat networks Carrier communications

Aggregator and manager of dispersed power sourcesAggregator and manager of ancillary services for local

Grid Infeed SS

Energy Storage

Aggregator Optimiser Integrator

(Source: EON Central Networks)

New roles for Network Co’s

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Virtual Power Plant

• Virtual Power Plant: Dispersed generation Dispersed Storage Controllable loads

• Not necessarily by physically connecting plants but by interlinking them via soft technologies (ICT)

• VPP as key delivery mechanism to provide access of DER – to energy market (commercial aggregation) – to ancillary and network management services markets

(grid aggregation)

The goal is to manage DER to provide as much services as a conventional generators

Dispersed generation Aggregated to work as a conventional power plant

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Virtual Power Plant

• Why do we need a VPP?

Dispatchability: Aggregation creates units dispatchable by TSO (several MW) and DSO

Visibility: Aggregators can give transparency to TSO/DSO of their aggregated resources, providing real-time information

Deterministic behaviour: Adequate aggregation can perform close to conventional power plants (e.g.: Wind+CHP+DSM)

Entry of new agents: Non-network owners can create value thanks to the existing flexibility of DER and DSM

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Virtual Power Plant

• Services of VPP

– Locally performed ancillary services

• Voltage control and reactive power supply

• Optimize grid losses, local power quality

• Local (distribution network) congestion management

• Islanded operation capacity

• System wide ancillary services

Frequency control

Active power reserve

Network restoration

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Monitoring and control applications

• End-user management – demand response applications

• peak shaving, load shifting, usage flattening – energy management systems

• incorporate prices & external circumstances • (de)activate appliances (heat pumps, fridge, battery

chargers, ...) – remote meter reading

• Grid management – aggregating data (profiles, peaks, services, …)

– controlling grids and elements (topology, power quality, …)

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Demand Side Management (DSM)

• Local Grid Aspects: avoid grid upgrades – Measures: - better use of grids

- reduce losses

- avoid voltage issues

• Balancing: avoid payments – Measures: - balance forecast faults for intermittent sources

• Ancillary Services: get revenues – Measures: - offer capabilities to match consumption and

generation on respective markets

Control consumption to match it with uncontrollable generation

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Demand Side Management (DSM)

• Energy saving: most common used – Measures: - discount for energy-efficient equipments

- energy tax

- provide information about energy efficient equipments

• Load management: keeping demand as constants as possible – Measures: - different tariffs for day/ night consumption

- contractual load shedding

• Fuel shift: saving primary fuel – Measures: - promote heat pump (alternative for fuel oil/ gas

heating)

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Impact of electric vehicles

• Impact on the electric power system – Smart integration

• Flexible load – Coordinated charging – Integrating variable/unpredictable RES: central or distributed – Integrating inflexible generation facilities

• New storage facility – Bidirectional power flows – Arbitrage between different hours

• Grid support – Delivering ancillary services

» Frequency regulation » Voltage regulation » Load leveling

– Large availability: 90 % not driving

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Need for market models

• Significant amount of energy required

– Vehicle: energy-equivalent of 1 household/year

– Now: energy is “free” when charging

• Extensive investments required

– Charging infrastructure to be financed

– Who will pay for the energy and infrastructure?

• Payment system

– Every time when charging or periodically?

– Privacy and security of transactions

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Eurelectric definition: different location types

Source: Eurelectric

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Public property: 4 models (Eurelectric)

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Integrated infrastructure

30 Fast Charge Points

3500 Public and domestic Charge Points

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E-mobility provider

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Outline





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REGULATORY ACTION

Technology – development, demonstration & proving supported by……

Standards & Open Systems

Regulatory Frameworks and Incentives

Commercial & Legal Arrangements

Connect & Collaborate

REGULATORY ACTION

NOT command & control

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Funding options for SmartGrids

• EC Research & Development funding – Seventh Framework Programme – ERA-NET

• National Funding opportunities – Vary according to each MS (numerous)

• Regulator allowances for innovation – UK; the IFI (innovation funding initiative) and

RPZ (registered power zone) • Private Funding options

– industry

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Funding options for SmartGrids

-500

500

1500

2500

3500

4500

5500

6500

7500

8500

9500

198

9/0

199

0/1

199

1/2

199

2/3

199

3/4

199

4/5

199

5/6

199

9/0

200

0/1

200

1/2

200

2/3

200

3/4

0ct 04 - Apr05 (IFI 1s

t 6m

ths)

200

5/6

200

6/7

Financial Year

£0

00

* Data from 1989/1990 to 2003/2004 is the collaborative spending on R&D amongst the DNOs through a single provider.

* Data from Oct 2004 - April 2005 and the last financial year (2005/2006) shows reported total IFI spend.

UK Distribution Company R&D trend • c.180 projects

• Projects are initiated by the companies

• Ofgem does not ‘approve’ each project

• Spend up to 0.5% of annual turnover (use it or lose it)

• Av. intensity is 0.27%

• Forecast benefits total €70m (NPV)

Impact of IFI Incentive

Privatisation

€9m >

€13m >

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Funding options for SmartGrids Examples of IFI projects

Mobile Locator GIS Scada

132kV

66 or 33kV

11kV

LV Fenix Customer Interface moduleLV Automation

Redox Storage

On load tapchanger transformer

Superconducting Fault Current Limiter

Lidar scanning Hi res photography

PFT cable oil leak location

Alternative fluid Transformer

Alternative Trident line With fibre optics

Woodhouse tower Replacement

Synchronising PMR

RemoteFPI

Line Tracker & Line Sense

Intelligent Universal Transformer

1ph Regulator

Storage

Under-grounding Cable plough

On-line condition Monitoring Cables Lines & switches

Fault Level Monitor

Earthing Condition

LV Incipient Fault Programme

Autonomous Regional Network Management Autonomous Regional Network Management

Circuit Breaker condition

Network Risk Distribution State Estimator

Fibre Optic Temp Monitor Wind Farm

Gen AVC

Broadband Powerline Carrier

Vista u/g mapping

Thermal line assessment

Wood pole disposal

Recycling Excavated Material

Optimising Voltage control / Var performance of large Wind Farm

Lightning Protection

www.innovationsolutions.co.uk

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Smart Grid Flanders

• Research Institutes

• Industrial Partners – Eandis (DSO) – Infrax (DSO) – Alcatel – Lucent (Telecom) – Belgacom (Telecom) – Telenet (Telecom) – Laborelec (Engineering) – Niko (Electronic equipment & domotica) – And many others… http://www.smartgridsflanders.be

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Smartgrids in Flanders

EnergyVille

• EnergyVille

– A knowledge center focused on green energy and energy technology which at its start will host 200 researchers.

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Research partners

Industrial partners

Additional steering commitee members

Linear acknowledges the Flemish Government for its support

http://www.linear-smartgrid.be

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Future urban view

Documents

Intelligent distribution grid: a business case as such … distribution grid: a business case as such and a ... • PowerBlock 150 ... • broadband when DSL or TV cable •