© K.U.Leuven – ESAT/Electa SmartGrids From a Vision for Intelligent Electrical Grids Ronnie Belmans Katholieke Universiteit Leuven, Belgium Alcatel-Lucent - 26 / 03 / 2010

© K.U.Leuven – ESAT/Electa Agenda o New Energy Challenges o Transition towards a SmartGrid o What value is created? Helping integration of renewables towards a CO2-lean society Consumer engagement Long term job growth o Research, Development & Deployment

© K.U.Leuven – ESAT/Electa New grid challenges o EU 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.”

© K.U.Leuven – ESAT/Electa EU Goals Reduction of greenhouse gases Energy consumption, Efficiency increase Share of renewable energy -20% 100% 20% 8.5%

© K.U.Leuven – ESAT/Electa IEA 2030 Ref: IEA WEO 2009

© K.U.Leuven – ESAT/Electa European Policy Ten point action plan 1.Use the new internal energy market better 2.Make it easier for Member States to help one another in case an energy crisis arises 3.Improve the EU Emissions Trading Scheme 4.Energy efficiency 5.Increase the use of renewable energy 6.Technology 7.Low carbon technology for fossil fuels 8.Safety and security of nuclear power 9.Agree to an international energy policy 10.Improve understanding

© K.U.Leuven – ESAT/Electa Current European power system 7  430 million people served  2602 TWh used (+1.1% 2007)  560 GW installed 500€/kW = 280G€  km HV 0.4M€/km = 90G€  Approx km MV+LV network  1500€ investment per EU citizen  Largest man-made system Data provided by UCTE 2008  430 million people served  2500 TWh used  560 GW installed 500€/kW = 280G€  km HV 0.4M€/km = 90G€  Approx km MV+LV network  1500€ investment per EU citizen  Largest man-made system 2007

© K.U.Leuven – ESAT/Electa Power generation in EU 2050 Ref: Eurelectric Power Choices: Pathways to Carbon-Neutral Electricity in Europe by 2050

© K.U.Leuven – ESAT/Electa New grid challenges Overview 1.Future of energy demand 2.Generation paradigm shift 3.Ageing assets 4.Markets and regulation

© K.U.Leuven – ESAT/Electa New grid challenges 1. Future of electricity demand o Rise of consumption at 2% a year 1250 TWh/year extra by 2030 o Dependence on imported fuels? o Plug-in Hybrid Electric Vehicles?

© K.U.Leuven – ESAT/Electa New grid challenges 2. New generation paradigm o Current grid = hierarchical o One-way pipeline Source has no realtime info on termination points Peak demand reserve => inefficient use of grid 11 G G Generation Transmission Distribution Demand Traditional one-way supply system Supply

© K.U.Leuven – ESAT/Electa New grid challenges 2. New generation paradigm o Increasing wind generation & CHP units in Denmark

© K.U.Leuven – ESAT/Electa New grid challenges 2. New generation paradigm Western Danish power system kV Interconnections 150 kV 60 kV kV 400 V 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 Range of central control Non-dispatchable and beyond central control 543 local CHP plants:1,104 MW wind power units:2,201 MW

© K.U.Leuven – ESAT/Electa New grid challenges 2. New generation paradigm o Importance of wind forecasting Wind speed change of 1 m/s = variation of 320MW on a capacity of MW. Control systems needed to avoid excessive backup capacity 14 “Fresh breeze” means somewhere between 200 and 1,600 MW

© K.U.Leuven – ESAT/Electa Technical miracles of the 20 th century 1.Electrification 2.Automobile 3.Airplane 4.Safe and Abundant Water 5.Electronics 6.Radio and Television 7.Agricultural Mechanization 8.Computers 9.Telephone 10.Air Conditioning and Refrigeration 11.Interstate Highways 12.Space Exploration 13.Internet 14.Imaging Technologies 15.Household Appliances 16.Health Technologies 17.Petroleum and Gas Technologies 18.Laser and Fiber Optics 19.Nuclear Technologies 20.High Performance Materials 15 (Source: National Academy of Engineering) Still… new generation paradigms & ageing assets pose a serious challenge…

© K.U.Leuven – ESAT/Electa New grid challenges 2. New generation paradigm o Future grid = distributed Wind and solar “farms” Home PV + CHP+ PHEV 16 G G Generation Transmission Distribution Demand Traditional one-way supply system G Generation G Bi-directional supply system Supply Generation

© K.U.Leuven – ESAT/Electa New grid challenges 2. New generation paradigm 17 Evolution in renewable energy production & Trend in PRIMES base scenario

© K.U.Leuven – ESAT/Electa New grid challenges 2. New generation paradigm 18 Demand-pull  CO 2 -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 PV cost Wind generation cost

© K.U.Leuven – ESAT/Electa New grid challenges 3. Ageing assets o Lagging investments in infrastructure Rising demand = decreasing safety margins 19 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

© K.U.Leuven – ESAT/Electa New grid challenges 3. Ageing assets o More complex role and increased responsibilities of network operators for planning and asset management. o Comprehensive integrated system solutions required from suppliers o A stable and predictable regulatory framework is required o Lack of EU-wide standards for integrated asset management and network planning o Long term vision

© K.U.Leuven – ESAT/Electa New grid challenges 4. Markets and regulation o Energy market o Data + information need > 20G€ investment (based on 100€ per connection) 21 GenCo DistCo Retail GenCo TransCo DistCo Retail REGULATED

© K.U.Leuven – ESAT/Electa Drivers towards a smart grid 22 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 Internal Market Security of Supply Environment

© K.U.Leuven – ESAT/Electa SmartGrids Vision 23 Environmental policy User-centric Stakeholder ownership Networks renewal Distributed and central generation Demand response Interoperable European Electricity Networks Liberalised markets

© K.U.Leuven – ESAT/Electa Challenges for 2020 and beyond 24 30GW of solar power in the South ? Ackgt TechFreep 50GW of wind power in the North ? Customer Interaction and Intelligent Appliances New DC Links and Interconnections Micro- generation in millions of homes ? plus wind variation / cloud cover / customer choice… Smart Grids will be needed to ensure supply security, connect and operate clean and sustainable energy, and give value for money

© K.U.Leuven – ESAT/Electa SmartGrids Vision 25 Central & dispersed sources Smart materials and power electronics Central & dispersed intelligence Seamless integration of new applications End user real time Information & participation Multi-directional ‘flows’

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

© K.U.Leuven – ESAT/Electa SmartGrids Vision 20th Century Grid21st Century Smart Grid ElectromechanicalDigital Very limited or one-way communicationsTwo-way communications every where Few, if any, sensors – “Blind” OperationMonitors and sensors throughout – usage, system status, equipment condition Limited control over power flowsPervasive control systems - substation, distribution & feeder automation Reliability concerns – Manual restorationAdaptive protection, Semi-automated restoration and, eventually, selfhealing Sub-optimal asset utilizationAsset life and system capacity extensions through condition monitoring and dynamic limits Stand-alone information systems and applications Enterprise Level Information Integration, inter-operability and coordinated automation Very limited, if any, distributed resourcesLarge penetrations of distributed, Intermittent and demand-side resources Carbon based generationCarbon Limits and Green Power Credits Emergency decisions by committee and phone Decision support systems, predictive reliability Limited price information, static tariffFull price information, dynamic tariff, demand response Few customer choicesMany customer choices, value adder services, integrated demand- side automation

© K.U.Leuven – ESAT/Electa SmartGrids Vision a smart metering revolution? a networks perspective 28 “an RTU at every service head” the portal to demand & micro-gen services operational visibility of local networks intelligent demand control in emergencies local network also the comms channel ? new services to delight customers…. Load-limiting & remote disconnection losses management & rewards

© K.U.Leuven – ESAT/Electa SmartGrids Vision How 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? 29 We must accept the limits of today’s situation Be aware of the “sailing ship syndrome”… “Stretching” was successful for trains

© K.U.Leuven – ESAT/Electa SmartGrids Vision A renewed grid vision? 30 ?

© K.U.Leuven – ESAT/Electa SmartGrids Vision 31 Grid Infeed SS Energy Storage  Aggregator and manager of dispersed power sources  Aggregator and manager of ancillary services for local network and the grid Aggregator  Manage constraints and minimise losses  Utilise smart meter data  Manage asset condition / predict failure events  Intelligent demand management in emergencies Optimiser  Energy efficiency  Customer overall participation  Customer micro-gen types  Heat networks  Carrier communications Integrator (Source: EON Central Networks) New roles for Network Co’s

© K.U.Leuven – ESAT/Electa SmartGrids Vision 32 DSO’s SmartGrid Consumers Generators TSO’s 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

© K.U.Leuven – ESAT/Electa SmartGrids Vision Key Challenges o Strengthening the grid ensuring sufficient transmission capacity to interconnect energy resources, especially RES, across Europe Moving offshore Integrating intermittent generation Preparing for electric vehicles o 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 o Activating consumers, with or without their own generation, to play an active role in the operation of the system

© K.U.Leuven – ESAT/Electa SmartGrids Vision 34 Users Energy service providers Technology providers Researchers Regulators Network companies Traders Generators Governmental agencies Stakeholders

© K.U.Leuven – ESAT/Electa From passive towards active grids Integration of decentralized generation? o 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 o Active grids Normal operation  Curtailment of generation  Local power balance  Coordinated voltage control  Voltage regulators in-line Fault situations

© K.U.Leuven – ESAT/Electa From passive towards active grids Active distribution system has three layers 1.Copper based energy infrastructure (electricity) 2.Communications layer 3.Software layer

© K.U.Leuven – ESAT/Electa From passive towards active grids New grid hierarchies 37 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: Risö)

© K.U.Leuven – ESAT/Electa Transmission system changes o 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

© K.U.Leuven – ESAT/Electa 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?

© K.U.Leuven – ESAT/Electa Standardisation and interoperability o 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 o EC has acknowledged the need for harmonization Mandate M/441 on smart metering assigned to CEN, CENELEC and ETSI

© K.U.Leuven – ESAT/Electa Public Acceptance much more than technology… 41 Smart Grids extend beyond networks and will embrace transport, the built environment, the behaviours and engagement of customers, and will need societal acceptance.

© K.U.Leuven – ESAT/Electa Public Acceptance much more than technology… 42 Smart Grids will require Customer Acceptance and Participation in:...Intelligent Appliances & Demand Response...Micro-generation providing grid services...Smart metering with 2-way communications

© K.U.Leuven – ESAT/Electa Public Acceptance Consumer values o Services more fit to consumer’s expectations o More information about consumption More awareness Energy savings o Faster and more adequate metering and billing o Smarter appliances / homes

© K.U.Leuven – ESAT/Electa Public Acceptance o Privacy Issues Unknown privacy implications  Who can access which data? cfr. April 2009: smart meter proposal in The Netherlands rejected due to privacy concerns  Need for regulations and contractual arrangements o Security Cyberattacks on the grid Meter fraud o Dependability Design enables self-healing and resilience

© K.U.Leuven – ESAT/Electa Jobs Direct o In the electricity sector: Direct utility SmartGrid New ESCOs Contractors  Installation accelerators  Service providers SmartGrid equipment providers Ref. KEMA

© K.U.Leuven – ESAT/Electa Jobs Indirect o Technologies dependent on SmartGrids Renewable energy technology manufacturers Distributed generation  CHP heat and electricity demand matching PHEV  Charging cheaper when coordinated Telecommunication sector

© K.U.Leuven – ESAT/Electa Jobs o Both high and lower skilled workers necessary Installing smart meters Keeping the lights on o Long term job growth Classical energy companies New business models o Rollout is a huge effort Every home needs a meter Each windmill must be connected

© K.U.Leuven – ESAT/Electa 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

© K.U.Leuven – ESAT/Electa Current Status o 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 o 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

© K.U.Leuven – ESAT/Electa What are the Elements for Success? Action Now! targets 2050 targets and beyond REQUIRE application of today’s technologies REQUIRE development of today’s technologies REQUIRES research for tomorrow’s technologies These actions must be put in hand NOW

© K.U.Leuven – ESAT/Electa EIT

© K.U.Leuven – ESAT/Electa SmartGrids Vision

© K.U.Leuven – ESAT/Electa o A pilot project will be realized in a region containing appr units, with an emphasis on the residential function (but also combined with other building functions), for 25% of the units. o A virtual power plant (VPP) will be realized, containing a combination of primarily industrial decentral production and demand units (geographically dispersed). o Tentative timing: Linear start:May ‘09 Installation: April ’11→ end ‘11 Monitoring: January ’12 → mid ‘13 End project: June ‘14

© K.U.Leuven – ESAT/Electa WP1 – WP2: Energy consumption patterns and flexibility of energy consumers Smart metering, user survey, profiles, flexibility WP3: Concepts for energy storage Decentralized units, storage, power electronics WP4: Coupled local energy networks Bidirectional flows, µ- grids, natural gas, communication WP5: Integrate buildings and transport Profiles, PHEV and demand side participation WP6: Integration tools and control strategies Integration tool, control strategies, potential estimation and general advice WP7: Intelligent concepts at district level Decision tool for projects → basis architecture pilot projects WP8: Major pilot projects Design concept, simulations, user motivation, realisation, monitoring and analysis, optimisation, linked laboratory infrastructure Implementation WP9: E-Market Value chain, business cases, legal aspects, energy price prediction E-Market Research, knowledge building

© K.U.Leuven – ESAT/Electa Research partnersIndustrial partnersAdditional steering commitee members Linear acknowledges the Flemish Government for its support

© K.U.Leuven – ESAT/Electa SmartGrids From a Vision for Intelligent Electrical Grids Thank you for your attention ! 56 Ronnie Belmans Katholieke Universiteit Leuven, Belgium