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© ABB Group November 10, 2010 | Slide 1 Smart grids More efficient and reliable grids 3 rd November 2010, Madrid. Inés Romero

Smart Grids. More efficient and reliable grids

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Intervención de Inés Romero, ABB, en el marco de la jornada técnica Smartgrids - The making of, en colaboración con IMDEA 3 de noviembre de 2010

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Page 1: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 1

Smart gridsMore efficient and reliable grids

3rd November 2010, Madrid. Inés Romero

Page 2: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 2

Agenda

� Drivers and challenges

� How future electric systems must perform

� Smart grids and applications

� Worldwide on-going projects

� Conclusions

Page 3: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 3

Today’s energy challenge – growing demandElectricity demand rising twice as fast

China

105% 195%

India

126% 282%

Europe and North America

11% 31%

M. East and Africa

73% 131%

Growth in primary energy demand

Growth in electricity demand

IEA forecast 2006-30

SouthAmerica

56% 81%

Page 4: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 4

Major challenge: improving reliability

� In U.S. the annual cost of system disturbances is an estimated $80 billion*� Commercial ($57 billion), industrial ($20 billion) and residential ($3 billion)

sectors affected� Most cost ($52 billion) due to short momentary interruptions

Poor reliability is a huge economic disadvantage

* Berkley National Laboratory 2005

# di

stur

banc

e ev

ents

in U

S

Source: FERC 2008

Page 5: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 5© ABB Group November 10, 2010 | Slide 5

Two major ways to reduce greenhouse gas emissionsEnergy efficiency and renewable energy sources

Energy efficiency and renewable power generation could provide almost 80 percent of the targeted reduction

Ann

ual e

mis

sion

of C

O2

in G

igat

ons

SourceIEA 2008

550*policy

scenario

* ppm concentration in the atmosphere

20

25

30

35

40

45

2005 2010 2015 2020 2025 2030Reference scenario 550 policy scenario 450 policy scenario

450*policy

scenario9%

14%

23%

54%

Energy efficiency

Renewables

Carbon capture and sequestration

Nuclear

Page 6: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 6© ABB Group November 10, 2010 | Slide 6

Major challenge: environmental concerns

� CO2 is responsible for 80 percent of all greenhouse gas effects� More than 40 percent of CO2 is generated by traditional power plants

Electric power generation is the largest single source CO2 emissions

Ann

ual e

mis

sion

of C

O2

in G

igat

ons

Electricity plants

Industry (excl. cement)Road transportResidential and service sectorDeforestation OthersRefineries etc

International transport

10

9

8

7

6

5

4

3

2

1

01970 1980 1990 2000

Source: IPCC “Mitigationof Climate Change”,Cambridge UniversityPress, 2007

Page 7: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 7

Agenda

� Drivers and challenges

� How future electric systems must perform

� Smart grids and applications

� Worldwide on-going projects

� Conclusions

Page 8: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 8

Smart grid value propositionFour main areas of emphasis

� Capacity for increasing demand� Providing the backbone of the future electrical system

� Reliability of electricity supply� Upgrades and new installations to meet the future challenges

� Efficiency along the value chain� Actions to mitigate climate change

� Sustainability by integrating renewable� Regulatory influence and customer behavior are critical

Page 9: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 9

Economic build up of capacityCapacity

� Investment in global grid infrastructure is estimated to total $6 trillion by 20301

� Present grids can be refurbished to operate at full capacity without compromising safety

� New installations must provide maximum flow of energy to any location in the grid

� In 2020 the fleet of electric cars could reach 40 million world wide, around 2 percent of the cars on the road by then1

� The infrastructure for charging the vehicles has to be built

� Fast charging options cannot be provided by the current grid infrastructure

The future electrical system must be used at its full capacity and must be able to cope with new challenges

CapacityReliabilityEfficiency

Sustainability

1Source: IEA

Page 10: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 10

Electrical energy all the time, everywhereReliability in Transmission systems

� Safe operation with minimum reserves is the most economic way of operating PS

� Systems must be designed for utmost reliability and maximum power quality

� Impact of unavoidable faults must be limited to local areas

� Immediate restoration of full performance is essential

The future electrical system must provide a completely reliable energy supply without interruptions

CapacityReliabilityEfficiency

Sustainability

The European grid covers the whole continent

Page 11: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 11

Electrical energy all the time, everywhereReliability in Distribution systems

� Distribution grids are pending from a large scale implementation of technologies to support

� remote monitoring and control

� automated switching

� fast fault location

� Resulting in

� reduced outage time

� increased power quality

� improved maintenance

Reliability of power distribution is of prime importance in future electrical systems

CapacityReliabilityEfficiency

Sustainability

Page 12: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 12

Power generation and grid couplingEfficiency

� Conversion efficiency of primary energy to electricity is steadily increasing

� Advanced process control adds to the overall efficiency

� Equipment and systems to couple generation to the grid are becoming more efficient

� An improvement of only 1% in efficiency can save 100 million tons of CO2 (emission of 50 M cars1)

� Estimates allocate a double digit energy saving potential in power generation2

In future electric systems highly efficient power generation is mandatory

CapacityReliabilityEfficiency

Sustainability

distributedgeneration

solar plants

traditionalpower plants

wind farms

� Transformers

� AC-DC converters

� Substations

Conversion efficiency

Process improvement 1 at 200g/km of CO2 emission and 10,000 km/year 2 Graus: Energy policy 2007; Gielen: IEA 2007

Page 13: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 13

Saving potential in transmission and distributionEfficiency

� Losses of electrical energy in the grid can reach 6-10 %

� Aging equipment with lower efficiency and thermal losses in conductors are the main reasons

� Inefficient distribution transformers account for about 30 percent of losses

� Network losses in EU are an estimated 50 TWh, the annual consumption of 13 million households1

In future electrical systems losses must be reduced significantly

CapacityReliabilityEfficiency

Sustainability

1Source: European Commission

Page 14: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 18

Integrating renewable powerBridging long distances (Sustainability)

� Large hydropower plants offer the biggest contribution to renewable energy over the next 20 years

� Several gigawatts of power must be transported over thousands of kilometers to the centers of consumption

� Technologies for economic and reliable transport are required

The future electrical system must provide viable solutions

CapacityReliability

EfficiencySustainability

Page 15: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 19

Integrating renewable powerIntermittent power generation (Sustainability)

� Electricity from wind and solar plants is intermittent

� Spinning reserves between 5 and 18 percent of installed wind energy are required1

� Plant interconnections and a wide range of storage technologies could reduce the need for reserves

The future electrical system must be able to cope with these challenges

CapacityReliabilityEfficiency

Sustainability

1 Wind impact on power system, Bremen 2009

Page 16: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 22

Agenda

� Drivers and challenges

� How future electric systems must perform

� Smart grids and applications

� Worldwide on-going projects

� Conclusions

Page 17: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 23

Smart electricity – efficient power for a sustainable world

A smart grid is the evolved system that manages the electricity demand

in asustainable, reliable and economic manner

built on

advanced infrastructureand tuned to facilitate

the integration of behavior of all involved

Page 18: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 24

The visionary smart gridSumming up the major requirements

Capacity

Reliability

Efficiency

Sustainability

Upgrade/install capacity economicallyProvide additional infrastructure (e-cars)

Stabilize the system and avoid outagesProvide high quality power all the time

Improve efficiency of power generationReduce losses in transport and consumption

Connect renewable energy to the gridManage intermittent generation

Page 19: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 25

Smart gridsFocus of activities

© ABB Group November 10, 2010 | Slide 25

Focus area ActivitiesDistribution grid automation • Network Management for distribution grids

• Intelligent equipment• Distribution communication

e-Mobility • EV charging infrastructure• Grid intelligence• On board and manufacturing segment• Storage services

Demand response –Commercial and Domestic

• Home / building automation• Demand response applications• Connectivity to grid

Distributed generation integration

• Residential / community renewables • Networked CHP and other generation• Micro and Personal grids• MV / LV DC grids

Distributed storage (<1MW)

• Building / community level storage.• Micro and Personal grids• V2G

Bulk storage(>1MW)

• Integration of large scale battery storage• Mitigation of renewable intermittency

Page 20: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 27

Smart CitiesIntegration into the Smart Grid

Storage of peak supply power in car batteries (future)

Local distribution grid extensions

Charging scheduling for residential areas

Ultra-fast charging stations:•Storage•Power quality services

Used car batteries as central storage capacity

Battery switch stations:•Storage•Power quality services

Page 21: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 28

Distribution AutomationIntegration of Power and Information

� Distribution Control Center� Network management SCADA/DMS� OMS with AMR/AMI connection � Models sub-transmission and distribution

(including medium- and low voltage) networks� Workforce management

� Primary Substation Automation� Protection� Monitoring and control� Automatic functions � Information refinement

� MV/LV Network Automation (FA)� Protection� Monitoring and control� Automatic functions � Information refinement

� Home/Building Automation� Smart metering (AMR/AMI)� Smart home integration (demand response)

© ABB Group November 10, 2010 | Slide 28

Page 22: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 29

Demand ResponseAddressing the temporary change in electricity consumption

Page 23: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 30

Demand Response

Spinning reserve within seconds addressed by emergency dispatch of demand response

Balance power within 1-24 hours addressed by active consumers

Peak Load reduction

����

����

� Use more efficient production units

� Use less costly production units� Use units with less emission� Improved utilization of the grid

capacity

Generally utilities run 10-20% of their capacity less than 1-3% of the time

Page 24: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 31

Grid applications for energy storageSVC Light with Storage

© ABB Group November 10, 2010 | Slide 31

� Grid connection of renewable generation

� Backup power

� Continuous reactive power support

� Eventual reactive power support

� Intermittent loads of a railway

� Emergency and short-time power

� Integration of electric vehicles

� Peak-load shaving

� Ancillary services

Page 25: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 32

PV and Energy Storage interactionResidential application in a building

slow chargingcontrol

automation

LV

25 EV’s

appl

ianc

es

DC

AC

BatteryFilter

Control

ACDC

40-50 apartment � As a vital part of an active building, energy storage primary has the following tasks:

� To provide load support during a few hours per 24 h.

� To store excess energy produced locally (PV) when the grid or the local consumers for whatever reason can not use.

� To control and dynamically stabilize the voltage.

� To mitigate harmonics, unbalances and voltage dips and thereby provide a high power quality.

Page 26: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 34

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ABB understands the system behind the charging

Page 27: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 37

Agenda

� Drivers and challenges

� How future electric systems must perform

� Smart grids and applications

� Worldwide on-going projects

� Conclusions

Page 28: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 38© ABB Group November 10, 2010 | Slide 38

Progress Update – CEUSmart Grid in Malta. First Smart Grid Island

� Partner: IBM, Enemalta Corporation, Water Services Corporation Malta

� Target: Building a Smarter Energy and Water Systems to deliver affordable and secure energy

� Challenges:

� Integrate Utilities Business systems

� conduct remote monitoring, meter reading and real-time management of the network based on IT

� Results:

� Active demand: Real-time monitoring and smart meters can deliver pricing based on time of day, enabling the utility to better manage energy consumption and customers to cut their electrical bills.

� Malta residents will also be able to track their energy use online and see how to curb consumption habits.

Page 29: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 39© ABB Group November 10, 2010 | Slide 39

Progress Update – NEUStockholm City (Stockholm Royal Seaport)

� Customers – Stockholm Municipality and the utility FORTUM

� Showcase Urban Smart Grid will be part of and supporting a larger showcase for a Sustainable City concept

� Demonstrate climate positive strategies, setting a compelling environmental and economic example for cities to follow.

� Selected as one of 18 global projects supported by Clinton Climate Initiative Program for sustainable urban growth

� Scope and ABB deliverables

� Integration of Electrical Vehicles, Demand Response, Active House, integration of Local Decentralized Renewable Production, Energy Storage, Substation Automation ,Ship to Shore and an Innovation Center.

Page 30: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 47

Agenda

� Drivers and challenges

� How future electric systems must perform

� Smart grids and applications

� Worldwide on-going projects

� Conclusions

Page 31: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 48

Smart grids will contribute significantly to mitigating climate change

Source: DOE and NETL

Today

� <13% variable renewables penetration

� 5% demand response systems

� >1% consumer generation used on the grid

� 47% generation asset utilization

� 50% transmission asset utilization

� 30% distribution asset utilization

With smart grids

� >30% variable renewables penetration

� 15% demand response systems

� 10% consumer generation used on the grid

� 90% generation asset utilization

� 80% transmission asset utilization

� 80% distribution asset utilization

Page 32: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 49

We all have a part to play

� Everyone must reconsider their own individual energy consumption

� Politicians must set up incentives to save energy and commit to global CO2 reductions

� Energy markets and all stakeholders must actively participate in efforts to reduce consumption and optimize efficiency

Page 33: Smart Grids. More efficient and reliable grids

© ABB Group November 10, 2010 | Slide 50