BREAKOUT SESSION 2 Smart Grid 2-B: Grid Integration – Essential Step for Optimization of Resources Integrating Intermittent Wind Generation into an Island Diesel Grid using the Demand Dispatch of Thermal Energy Storage Ron Kurtz Director for Sustainable and Renewable Energy Markets Dimplex North America

The Problem – End of Life Diesel Generation Shetland Islands are 55 miles NE of Scotland with 22,000 inhabitants. Scottish & Southern Energy manages the distribution grid and their key generation asset, a 67 MW diesel generating station is near end-of-life. Background Europes 2020 strategy includes reducing greenhouse gas emissions by at least 20% and increase the share of renewable energy to 20%. Shetland has an excellent year-round wind resource and 50% load capacities are achievable Drivers

Integration of Intermittent Renewable Generation is Limited Non-Wind Generation Wind Generation MW Generation Load Factor Non-Wind % Wind % Time % 75% 50% 25% 0 50% Limit On grid Source: Eirgrid 24% wind in November All-Ireland – November 2011

Energy Storage Capabilities Typical Energy Used per Day 15 kWh (60 miles per day) Electric Car 15 kWh (55 Gallons per day at 150 F) Smart Water Heating 100 kWh (1700 ft² home in winter) Smart Space Storage Heating

Decouples the Energy Equation: Energy In – Accepts electrical energy when its less expensive, in-excess or required for grid balancing. Energy Out - User receives heat energy based on their comfort needs. Anatomy of a Storage Heater Can store up to 50 kWh of thermal energy Can store up to 50 kWh of thermal energy Thermostatically controlled fan to distribute heat

UK Demand Off-Set by Storage Heating 40 Direct Electric Heating Demand (GW) Non Electric Heating (GW) Daytime Hours GW :00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Storage Demand (GW) December 7 th Actual 6,500,000 Storage Heaters charging with a connected off-peak load of 16.5 GW.

UK Nuclear Off-Set by Storage Heating :00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Direct Electric Heating Demand (GW) Non Electric Heating (GW) Daytime Hours GW 7GW additional load Six (6) nuclear reactors would be needed to meet demand if storage heating was switched to direct electric heating demand Six (6) nuclear reactors would be needed to meet demand if storage heating was switched to direct electric heating demand

Integrating Renewable Generation How We Generate Power Today As electricity is not easily saved or stored, it has to be generated to meet demand and the system has to be in balance Todays power axiom is generation following demand Intermittent Generation like Solar & Wind? Tomorrows axiom is load to follow generation Turn on loads (energy storage) during excess energy periods Turn off loads during expensive or high demand periods

Dispatchable Thermal Energy Storage Hub 915 MHz RF Home Area Network IP over Home Router ZigBee via Utility Meter Cellular Network or Radio Load Aggregator

The Northern Isles New Energy Solutions (NINES) Approach: Build the Viking wind farm. Install the Quantum Smart Energy Thermal Storage solution in 1,000 homes with a connected load of 8 MW and 50 MWh of storage capacity. Install Europes largest battery (1 MW). Reduce the size of the replacement diesel plant by 30%. The Solution

A WIN - WIN Solution Enables more Renewables onto the Electric Grid reducing CO Emissions Provides Valuable Ancillary / Regulation services to the Grid Operator Highly Reliable, Low-Cost Thermal Energy Storage for Demand Response Offers Real Choice in Off-Gas Grid Areas and High-Rise Apartments Ron Kurtz, Director, Sustainable and Renewable Energy Markets - (519) x523