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SmartGrids From a Vision for Intelligent Electrical Grids

SmartGrids From a Vision for Intelligent Electrical Grids. Ronnie Belmans Katholieke Universiteit Leuven, Belgium ronnie.belmans@esat.kuleuven.be Alcatel-Lucent - 26 / 03 / 2010. Agenda. New Energy Challenges Transition towards a SmartGrid What value is created ?

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SmartGrids From a Vision for Intelligent Electrical Grids

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  1. SmartGridsFrom a Vision for Intelligent Electrical Grids Ronnie Belmans KatholiekeUniversiteit Leuven, Belgium ronnie.belmans@esat.kuleuven.be Alcatel-Lucent - 26 / 03 / 2010

  2. Agenda • New Energy Challenges • Transitiontowards a SmartGrid • Whatvalue is created? • Helpingintegration of renewablestowards a CO2-lean society • Consumer engagement • Long term job growth • Research, Development & Deployment Ronnie.Belmans@esat.kuleuven.be

  3. New gridchallenges • EU Energy Policy • http://ec.europa.eu/energy/energy_policy • “EU policy focuses on creating a competitive internal energy market offering quality service at low prices, on developing renewable energy sources, on reducing dependence on imported fuels, and on doing more with a lower consumption of energy.” Ronnie.Belmans@esat.kuleuven.be

  4. EU 20-20-20 Goals Reduction of greenhouse gases Energy consumption, Efficiency increase Share of renewable energy 100% -20% -20% 20% 8.5% Ronnie.Belmans@esat.kuleuven.be

  5. IEA 2030 Ref: IEA WEO 2009 Ronnie.Belmans@esat.kuleuven.be

  6. European Policy Ten point action plan • Use the new internal energy market better • Make it easier for Member States to help one another in case an energy crisis arises • Improve the EU Emissions Trading Scheme • Energy efficiency • Increase the use of renewable energy • Technology • Low carbon technology for fossil fuels • Safety and security of nuclear power • Agree to an international energy policy • Improve understanding Ronnie.Belmans@esat.kuleuven.be

  7. CurrentEuropean power system • 430 million people served • 2500 TWh used • 560 GW installed capacity @ 500€/kW = 280G€ • 230.000 km HV network @ 0.4M€/km = 90G€ • Approx. 5.000.000 km MV+LV network • 1500€ investment per EU citizen • Largest man-made system • 430 million people served • 2602 TWhused (+1.1% 2007) • 560 GW installed capacity @ 500€/kW = 280G€ • 230.000 km HV network @ 0.4M€/km = 90G€ • Approx. 5.000.000 km MV+LV network • 1500€ investment per EU citizen • Largest man-made system 2007 2008 Data providedby UCTE Ronnie.Belmans@esat.kuleuven.be

  8. Power generation in EU 2050 Ref: Eurelectric Power Choices: Pathways to Carbon-Neutral Electricity in Europe by 2050 Ronnie.Belmans@esat.kuleuven.be

  9. New gridchallengesOverview • Future of energydemand • Generationparadigm shift • Ageingassets • Markets and regulation Ronnie.Belmans@esat.kuleuven.be

  10. New gridchallenges1. Future of electricitydemand • Rise of consumption at 2% a year • 1250 TWh/year extra by 2030 • Dependenceonimportedfuels? • Plug-in Hybrid Electric Vehicles? Ronnie.Belmans@esat.kuleuven.be

  11. New gridchallenges2. New generationparadigm • Currentgrid = hierarchical • One-waypipeline • Source has norealtime info onterminationpoints • Peakdemand reserve => inefficientuse of grid Generation G G Transmission Supply Traditional one-way supply system Distribution Demand Ronnie.Belmans@esat.kuleuven.be

  12. New gridchallenges2. New generationparadigm • Increasing wind generation & CHP units in Denmark Ronnie.Belmans@esat.kuleuven.be

  13. New gridchallenges2. New generationparadigm Range of central control 4 central units: 1,488 MW 5 central units: 1,939 MW 80 wind power units: 160 MW 15 local CHP plants: 24 wind power units: 578 MW 18 MW 543 local CHP plants: 1,104 MW 4.057 wind power units: 2,201 MW Non-dispatchable and beyond central control Western Danish power system Interconnections 400 kV Interconnections 150 kV Interconnections 60 kV 10-20 kV 400 V Ronnie.Belmans@esat.kuleuven.be

  14. New gridchallenges2. New generationparadigm • Importance of wind forecasting • Wind speed change of 1 m/s = variation of 320MW on a capacity of +-2400MW. • Controlsystemsneededto avoidexcessivebackupcapacity “Fresh breeze” means somewhere between 200 and 1,600 MW Ronnie.Belmans@esat.kuleuven.be

  15. Technical miracles of the 20th century • Electrification • Automobile • Airplane • Safe and Abundant Water • Electronics • Radio and Television • Agricultural Mechanization • Computers • Telephone • Air Conditioning and Refrigeration • Interstate Highways • Space Exploration • Internet • Imaging Technologies • Household Appliances • Health Technologies • Petroleum and Gas Technologies • Laser and Fiber Optics • Nuclear Technologies • High Performance Materials Still… new generation paradigms & ageing assets pose a serious challenge… (Source: National Academy of Engineering) Ronnie.Belmans@esat.kuleuven.be

  16. New gridchallenges2. New generationparadigm G G • Futuregrid = distributed • Wind and solar “farms” • Home PV + CHP+ PHEV Generation G G Supply Transmission Traditional one-way supply system Bi-directional supply system Distribution Demand Generation Generation Ronnie.Belmans@esat.kuleuven.be

  17. New gridchallenges2. New generationparadigm Evolution in renewable energy production & Trend in PRIMES base scenario http://ec.europa.eu/dgs/energy_transport/figures/pocketbook/2007_en.htm Ronnie.Belmans@esat.kuleuven.be

  18. New gridchallenges2. New generationparadigm Wind generation cost • 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 PV cost Source: IEA • 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: PhD G. Nemet Ronnie.Belmans@esat.kuleuven.be

  19. New gridchallenges3. Ageingassets • Lagginginvestments in infrastructure • Risingdemand = decreasingsafetymargins • 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 Ronnie.Belmans@esat.kuleuven.be

  20. New gridchallenges3. Ageingassets • More complex role and increased responsibilities of network operators for planning and asset management. • Comprehensive integrated system solutions required from suppliers • A stable and predictable regulatory framework is required • Lack of EU-wide standards for integrated asset management and network planning • Long term vision Ronnie.Belmans@esat.kuleuven.be

  21. New gridchallenges4. Markets and regulation GenCo GenCo GenCo REGULATED TransCo DistCo DistCo DistCo Retail Retail Retail • Energy market • Data + information need > 20G€ investment (based on 100€ per connection) Ronnie.Belmans@esat.kuleuven.be

  22. Driverstowards a smart grid Primary Energy Sources Regulation of Monopolies Reliability and Quality Innovation and Competitiveness Security of Supply Internal Market Capacity Low Prices And Efficiency Environment Climate Change Kyoto and Post-Kyoto Nature Preservation Ronnie.Belmans@esat.kuleuven.be

  23. SmartGrids Vision Interoperable European Electricity Networks Networks renewal Liberalised markets User-centric Stakeholder ownership Environmental policy Distributed and central generation Demand response Ronnie.Belmans@esat.kuleuven.be

  24. Challenges for 2020 and beyond Micro- generation in millions of homes ? 50GW of wind power in the North ? Smart Gridswill be needed to ensure supply security, connect and operate cleanand sustainable energy, and give value for money Customer Interaction and Intelligent Appliances plus wind variation / cloud cover / customer choice… Ackgt TechFreep 30GW of solar power in the South ? New DC Links and Interconnections Ronnie.Belmans@esat.kuleuven.be

  25. SmartGrids Vision Multi-directional ‘flows’ End user real time Information & participation Seamless integration of new applications Central & dispersed intelligence Smart materials and power electronics Central & dispersed sources Ronnie.Belmans@esat.kuleuven.be

  26. SmartGrids Vision Provide power quality for the 21st Century Operate resiliently against attack and natural disaster Enable active customer participation Anticipate and respond to system disturbances (self-heal) Enable new products services and markets Accommo-date all generation and storage options Optimise assets and operate efficiently Enable fundamental changes in Transport and Buildings (Source: SmartGridNews.com) Ronnie.Belmans@esat.kuleuven.be

  27. SmartGrids Vision Ronnie.Belmans@esat.kuleuven.be

  28. SmartGrids Vision a smart metering revolution? a networks perspective losses management & rewards “an RTU at every service head” intelligent demand control in emergencies the portal to demand & micro-gen services local network also the comms channel ? operational visibility of local networks new services to delight customers…. Load-limiting & remote disconnection Ronnie.Belmans@esat.kuleuven.be

  29. SmartGrids VisionHow will the future grid look like? Can we manage by stretching the current 380 kV grid to its limits? Or do we need a new overlay grid? “Stretching” was successful for trains Be aware of the “sailing ship syndrome”… We must accept the limits of today’s situation Ronnie.Belmans@esat.kuleuven.be

  30. SmartGrids Vision A renewed grid vision? 1956 2020-2050 1948 ? 1974 2008 Ronnie.Belmans@esat.kuleuven.be

  31. SmartGrids Vision New roles for Network Co’s Energy Storage Grid Infeed SS Integrator Optimiser Aggregator • 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 sources • Aggregator and manager of ancillary services for local network and the grid (Source: EON Central Networks) Ronnie.Belmans@esat.kuleuven.be

  32. SmartGrids Vision DSO’s Security of supply Technology Standards Actions Smallscalegeneration SmartGrid Actions Actions Consumers Marketconsiderations Consumerchoice Actions Actions Regulations Reducedenvironmental impact Generators Communication Consumers TSO’s sustainable, economic and secure electricity supply Energy Awareness Innovation Self-healing Ronnie.Belmans@esat.kuleuven.be

  33. SmartGrids VisionKey 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 Ronnie.Belmans@esat.kuleuven.be

  34. SmartGrids Vision Network companies Technology providers Researchers Energy service providers Regulators Governmental agencies Traders Users Generators Stakeholders Ronnie.Belmans@esat.kuleuven.be

  35. From passive towards active grids Integration of decentralized generation? • Passive grids = Fit and Forget • Fault Detection: power can come from any direction • Power Quality: responsibility? • Voltage Control: responsibility? • Grid Planning: deterministic peak planning, cfr ER P2/5 in UK  Significant grid problems at low levels of decentralized generation • Active grids • Normal operation • Curtailment of generation • Local power balance • Coordinated voltage control • Voltage regulators in-line • Fault situations Ronnie.Belmans@esat.kuleuven.be

  36. From passive towards active grids Active distribution system has three layers • Copper based energy infrastructure (electricity) • Communications layer • Software layer Ronnie.Belmans@esat.kuleuven.be

  37. From passive towards active gridsNew grid hierarchies 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 Virtual Power Plants (VPP) Flexible representation of load & generation, acting as 1 entity towards DSO/TSO (Source: www.fenix-project.org) (Source: Risö) Ronnie.Belmans@esat.kuleuven.be

  38. Transmission system changes • CORESO • Central Western Europe • Development of market mechanisms • Strengthening security of supply Efficient and safe management of the electricity system requires means of coordination and organizational structures at this scale Ronnie.Belmans@esat.kuleuven.be

  39. Ancillary services of small generation units Ancillary services • Voltage support • Feeder/transformer congestion • Impact on T&D reinforcement deferral • Black start capability of local grids? By means of • Generation curtailment, • Generation dispatch, e.g. CHPs • Reactive power control • Demand control? • Storage? Ronnie.Belmans@esat.kuleuven.be

  40. Standardisationand interoperability • Lots of different standards exist • Overlapping scope and functionality: • Protocols for metering aspects, control-related or interaction • Information models for data exchange • Varying status: • De jure standards from established organizations (ISO, IEC, …) • De facto standards from alliances or user groups • Fully proprietary protocols • EC has acknowledged the need for harmonization • Mandate M/441 on smart metering assigned to CEN, CENELEC and ETSI Ronnie.Belmans@esat.kuleuven.be

  41. Public Acceptancemuch 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. Ronnie.Belmans@esat.kuleuven.be

  42. Public Acceptancemuch more than technology… Smart Grids will require Customer Acceptance and Participation in: ...Intelligent Appliances & Demand Response ...Smart metering with 2-way communications ...Micro-generation providing grid services Ronnie.Belmans@esat.kuleuven.be

  43. Public AcceptanceConsumer values • Services more fit to consumer’s expectations • More information about consumption • More awareness • Energy savings • Faster and more adequate metering and billing • Smarter appliances / homes Ronnie.Belmans@esat.kuleuven.be

  44. Public Acceptance • Privacy Issues • Unknown privacy implications • Who can access which data? cfr. April 2009: smart meter proposal in The Netherlandsrejecteddue to privacy concerns • Need for regulations and contractual arrangements • Security • Cyberattacks on the grid • Meter fraud • Dependability • Design enables self-healing and resilience Ronnie.Belmans@esat.kuleuven.be

  45. JobsDirect • In the electricity sector: • Direct utility SmartGrid • New ESCOs • Contractors • Installation accelerators • Service providers • SmartGrid equipment providers Ref. KEMA 13-01-2009 Ronnie.Belmans@esat.kuleuven.be

  46. JobsIndirect • Technologies dependent on SmartGrids • Renewable energy technology manufacturers • Distributed generation • CHP heat and electricity demand matching • PHEV • Charging cheaper when coordinated • Telecommunication sector Ronnie.Belmans@esat.kuleuven.be

  47. Jobs • Both high and lower skilled workers necessary • Installing smart meters • Keeping the lights on • Long term job growth • Classical energy companies • New business models • Rollout is a huge effort • Every home needs a meter • Each windmill must be connected Ronnie.Belmans@esat.kuleuven.be

  48. Current Status • Global recognition of the benefits towards implementation of Smart Grids for all actors • Widespread rollout of “Smart” is technically possible during the next decade • Complex and not fully clear how this evolution is going to take place in practice Ronnie.Belmans@esat.kuleuven.be

  49. Current Status • Large-scale deployment not yet happened, why not? Some reasons: • Limited pilot experiences so far • Limited statistical significance of the quantification of benefits achieved in these experiences • Uncertainties regarding the global investments • Key challenges for the Smart Grid deployment: • Largely of regulatory nature • To a lesser extent influenced by research and development issues and by a lack of suitable demonstration pilot projects Ronnie.Belmans@esat.kuleuven.be

  50. What are the Elements for Success? Action Now! and beyond 2050 targets REQUIRES research for tomorrow’s technologies 2020 targets REQUIRE development of today’s technologies REQUIRE application of today’s technologies These actions must be put in hand NOW Ronnie.Belmans@esat.kuleuven.be

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