anders-troi-power-days-2011-10-05

Smart Grids and Energy Users – Visions and Possibilities

Anders Troi Head of Intelligent Energy Systems

Setting the scene for Smart Grids

Why smart grids?

Structure and Elements of the grid.

Electricity Market and problems to solve.

Discussing the consumer role.

Danish Smart Grid Projects.

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Risø DTU, Technical University of Denmark

Intelligent Energy Systems

The Danish electric power system 20% wind power penetration

Risø DTU, Technical University of Denmark

Danish energy consumption has been stable over the last 25 years Is it possible to continue, given structural changes and sectors ?

PJ 900

600

300

0 1980 Oil

'85 '90 '95 Natural Gas Coal and Coke

Risø DTU, Technical University of Denmark

'00 '05 Renewable Energy etc.

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Wind power in relation to total power consumption in EU, EoY 2008 25

24

20

15

10

14,8 14,4

10,1

9,4

5,3

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4,1

3,7 3,4 3,4 3,2 3,2 3,2

3

2,5 2,3 2,3

0

2

1,6 1,5 1,4 1,1 0,8 0,5 0,5

0

0

0

Percentage wind power of aggregate power consumption

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Risø DTU, Technical University of Denmark

Intelligent Energy Systems

Challenges of the Future Energy System

Generation

Transmission HV

Distribution MV

Present Energy System:

Future Energy system:

• Production follows load

• Consumption follows production

• Power direction is predictable

• Power direction is unpredictable

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Risø DTU, Technical University of Denmark

Intelligent Energy Systems

The Danish Scenario – Large wind production From 20 % to 50 % wind power – massive overflow 4500

4500

4000

4000

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3500

3000

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2500

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1000

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Wind power

DK West January 2008

Demand

Wind power

Demand and Wind power

Demand

January 2008 + 3,000 MW

If Denmark doubles the wind power - there will be massive overflow. Imbalances between wind power and max load will be more that 1.5. The passive consequence is closing down wind turbines in more than 1,000 hours a year unless Denmark chooses an intelligent approach.

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Risø DTU, Technical University of Denmark

Intelligent Energy Systems

Setting the scene for Smart Grids

Why smart grids?

Structure and Elements of the grid.

Electricity Market and problems to solve.

Discussing the consumer role.

Danish Smart Grid Projects.

9

Risø DTU, Technical University of Denmark

Intelligent Energy Systems

Services Ressources

Denmark

International

Fluctuating electricity

Electrical Vehicles

Bio mass

Gas system Electrical systems

Add. Electrical consumption

Heat pumps

Risø DTU, Technical University of Denmark

District heating net

Heating

Industry, process etc.

Gas storage

Fuel

(Hybrid cars etc.)

International

SYSTEM

Structure of the grid – part one

The future Energy System - Fundamental technologies • Market place Understanding of market and customer behaviour.

• Storage technologies Optimize storage to application and price targets.

• Power flow control Understand the power flow and the congestion issues.

• Communication system Data requirements and privacy issues.

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Risø DTU, Technical University of Denmark

Intelligent Energy Systems

Setting the scene for Smart Grids

Why smart grids?

Structure and Elements of the grid.

Electricity Market and problems to solve.

Discussing the consumer role.

Danish Smart Grid Projects.

12

Risø DTU, Technical University of Denmark

Intelligent Energy Systems

Smart Grid will be market based - Consume energy when price is low - Reduce consumption when price is high

Technologies include: Prediction Information and communication

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Risø DTU, Technical University of Denmark

Intelligent Energy Systems

Structure of power markets Operation hour Regulating power market (real-time market): -Activation minute reserves

Hours before Intra-day market: - Rescheduling production and power exchange

Automatic regulation (spinning reserves)

Day before Day-ahead power market:

-Hourly contracts for physical power delivery - Flow on transmission lines Estimate need for reserve power Procurement reserve power

Risø DTU, Technical University of Denmark

Weeks to years Financial markets: - Hedging, speculation - Forward, futures, options Auctioning of transmission capacity Fuel contracts

Procurement of ancillary services

The Value of Demand Respose Flytning af forbrug i tid optimerer Timeshifting ( demand response ) kapaciteten i elsystemet

Increases the capacity of the system

Effekt (kW)

Timer 1

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2 3 04 - 10 - 2011

4 5 side 3

6 7 8 Thorbj ø rn Nejsum

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11

Risø DTU, Technical University of Denmark

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Intelligent Energy Systems

Energy Market and consumer reactions • Professional customers to react to hourly prices would improve market efficiency, reduce price volatility, and increase welfare.

• Private customers need additional incentives.

• Danish tax policy must be considered, if a dynamic consumer market is desired.

• Price structures are dependant on the penetration of the technologies in the customer base.

Risø DTU, Technical University of Denmark

Setting the scene for Smart Grids

Why smart grids?

Structure and Elements of the grid.

Electricity Market and problems to solve.

Discussing the consumer role.

Danish Smart Grid Projects.

17

Risø DTU, Technical University of Denmark

Intelligent Energy Systems

Examples of utilities with flexibility potential Ressource

Caracteristics

Heat pumps

Invisible to consumers

Electric Vehicles

Range Anxiety ?

Freezers

Several days ”storage”

Battery operated devices ( Laptop etc) Dish Washer

Can run at any time?

Washer/Dryer

Can run at any time?

Aircon

Pre cooling possibility.

18

Risø DTU, Technical University of Denmark

Intelligent Energy Systems

But do consumers accept ?

Public concern on : • Smart meters – may reveal privacy ?

• How about privacy – who owns my data ?

• Do you really need the devices ?

• Impact on my way of living?

But You accept or neglect: • The smartphone can track you.

• Internet history is stored for AD use.

• Your house is full of other computers.

• Facebook profile / Linked In are open?

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Risø DTU, Technical University of Denmark

Policies and Legislation Needed!

Intelligent Energy Systems

Setting the scene for Smart Grids

Why smart grids?

Structure and Elements of the grid.

Electricity Market and problems to solve.

Discussing the consumer role.

Danish Smart Grid Projects.

22

Risø DTU, Technical University of Denmark

Intelligent Energy Systems

National Research projects in Denmark from Cell Controller to iPower

Power Exchange Electric Vehicle

Power Dealer

Balance Responsible

Socioeconomi c and investor

WP5 WP3

Cell Controller

WP1 + WP2 Households Industry

End users

Wind turbines

WP6

Households

Local CHP units

WP4 23

Risø DTU, Technical University of Denmark

Intelligent Energy Systems

EDISON Key figures Electrical Vehicles technology and infrastructure 8 Partners, (Universities, Small and Large Companies) Duration 3 years , 60 Mio DKK ~ 8 Mio. € ~ 11 Mio $ Risoe DTU / IES Experimental site and Charging concepts

First European EV Project • EV Communication • Battery characteristics • Charging Concepts • Grid Impact • VPP/Market place • Demonstration

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Risø DTU, Technical University of Denmark

Intelligent Energy Systems

iPower coverage area

Socio-economic and investor

WP5

WP3 WP1 + WP2

End users

WP4 Risø DTU, Technical University of Denmark Source: Based on drawing from Danish Energy Association

WP6

iPower Platform Objective The iPower platform focuses on power system integration of large amounts of electricity from fluctuating renewable energy sources such as wind power and photovoltaic’s by activation of flexible consumer demand.

The iPower platform : - links research and demonstration to actual product development - Specifies methods, technologies and requirements for products - Integrates understanding of consumer behavior .

- Enables industry partners to become first movers in a new and growing world market.

Risø DTU, Technical University of Denmark

iPower Key figures 32 Partners, ( Universities, Small and Large Companies )

Duration 5 years , 120 Mio DKK ~ 16 Mio. € ~ 22 Mio $ Cross Disciplinary Research and Innovation platform Socioeconomic and investor

WP5

WP3

WP1 + WP2

End users

WP6

Largest Danish Smart Grid Project • Research & Development • Products/Solutions • Identification • Communication • Demand Control • Integration

WP4 Risø DTU, Technical University of Denmark

Source: Based on drawing from Danish Energy Association

iPower – focus on demand response:

Market model And It solution

Solutions Behaviour

Not to be adressed Requirements Risø DTU, Technical University of Denmark

Energy for the future

Risø DTU, Technical University of Denmark