SmartGrids From a Vision for Intelligent Electrical Grids

1. SmartGridsFrom a Vision for Intelligent Electrical Grids Ronnie Belmans KatholiekeUniversiteit Leuven, Belgium ronnie.belmans@esat.kuleuven.be NMBS Group - 24 / 04 / 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. 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

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

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

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

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

19. 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

20. 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

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

22. 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

23. 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

24. 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

25. 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

26. Main drives for more electric vehicles and grid impact • Global warming and Kyoto restrictions • Use all energy sources to “fuel” vehicles • Secondary energy vectors may compete: hydrogen or electricity • Transition is key • Hydrogen: totally new distribution system required; transition far from evident • Electricity: gentle transition built on the existing infrastructure • Smooth transition improves social acceptance Green Cars Spanish Presidency Conference

27. Possible charging points • Charging at home: feasible • Charging everywhere: telecommunications • Fast charging stations: grid impact • Battery swapping stations: impact on the car design • Charging options define the interactions with the grid Green Cars Spanish Presidency Conference

28. Charging at home • Regular charging: standard electric outlet • 230 V, 20 A, 4.6 kW, availability is extremely high • Semi-fast charging: high power level but possible in domestic environment: very low cost • Heavy single phase electric outlet • 230 V, 32 A (electric cooker), 7.4 kW • Three phase electric outlet • 3 x 400V, 16 A, 11 kW • Almost no power linked investments needed locally with the consumer Green Cars Spanish Presidency Conference

29. Charging everywhere • GPRS identification system • Price information needed in time and in space • ICT infrastructure • Billing system has to developed • Flexible grid tariffs are needed • Data Green Cars Spanish Presidency Conference

30. Fast charging stations • Charging stations • Impact on transmission grid • fast charging: depending on the grid connection • Particular connection for high power systems • Power > 20 kW, up to 80kW • Heavy infrastructure • Heavy cables • Psychological advantage (range anxiety) • Towards the grid: very critical load • Requires new European standard Green Cars Spanish Presidency Conference

31. Vehicle-to-grid • Bidirectional power flow • Grid services: voltage supply, balancing • Intelligent communication: • Amount of energy delivered/consumed • Willingness of the PHEV-owner to discharge • Privacy? Green Cars Spanish Presidency Conference

32. Vehicle-to-grid • Now: little storage in the grid: • Generation and demand: perfectly matched • Forecasting errors • Variable behavior of wind (and sun) • 90% are available (not driving) • Network availability • Battery capacity • Incentives Green Cars Spanish Presidency Conference

33. Grid services by vehicles • Surplus value for PHEV-owners? • Payment for consumed energy • Compensation for delivered energy • Economical feasibility  Battery wear? • Requirements for V2G • Connection with the grid • Communication • On-board metering battery capacity Green Cars Spanish Presidency Conference

34. Grid services • Frequency regulation • Primary reserves: automatically and continuous • Secondary reserves: automatically and continuous • Tertiary reserves: manual – few times per year   • Voltage regulation • Regulation active power  voltage regulation in distribution grid • Embedded in the controller • Load leveling en peak power • Peak power: • Charging off-peak hours • Discharging peak hours • Load leveling: • Charging off-peak hours • Discharging peak hours is not necessary Green Cars Spanish Presidency Conference

35. Feasible grid services • Management of charging • Coordinated charging • With voltage control embedded in charger Green Cars Spanish Presidency Conference

36. Investmentsneeded • Gridlayers have different impact dependingonchargingapproach Green Cars Spanish Presidency Conference

37. Grid services capability • Voltage control, power quality and balancing Green Cars Spanish Presidency Conference

38. 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

39. EIT Ronnie.Belmans@esat.kuleuven.be

40. A pilot project will be realized in a region containing appr. 4000 units, with an emphasis on the residential function (but also combined with other building functions), for 25% of the units. • A virtual power plant (VPP) will be realized, containing a combination of primarily industrial decentral production and demand units (geographically dispersed). • Tentative timing: • Linear start: May ‘09 • Installation: April ’11→ end ‘11 • Monitoring: January ’12 → mid ‘13 • End project: June ‘14 Ronnie.Belmans@esat.kuleuven.be

41. Implementation WP9: E-Market Value chain, business cases, legal aspects, energy price prediction Research, knowledge building E-Market 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

42. Research partners Linear acknowledges the Flemish Government for its support Industrial partners Additional steering commitee members

43. Waterschei: from black gold to green gold

44. Waterschei physical implementation Stad Genk (spin-offs) KUL Vito EIT VSGP GAF /

45. Offices building 2 • Chairs: 200 • Meeting rooms: 6 • 2 x 50 people • 2 x 35 people • 2 x 8 people • Auditorium 120 people /

46. Result Energyville: Energy for green cities /

47. 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

48. SmartGridsFrom a Vision for Intelligent Electrical Grids Thank you for your attention ! • Ronnie Belmans • KatholiekeUniversiteit Leuven, Belgium • ronnie.belmans@esat.kuleuven.be Ronnie.Belmans@esat.kuleuven.be