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Page 1: Documented paths to successful deployment · 15 Daikin Airconditioning Netherlands B.V. DAIK NL 17 Universita’degli Studi di Siena UNIS IT 18 Ville de Grenoble MUNG FR ... Dissemination

N E W U R B A N E N E R G Y

Documented paths to successful deployment

D E L I V E R A B L E D 9 . 1 4

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TheopinionstatedinthisreportreflectstheopinionoftheauthorsandnottheopinionoftheEuropeanCommission.TheEuropeanUnionisnotliableforanyusethatmaybemadeoftheinformationcontainedinthisdocument.

All intellectualproperty rightsareownedby theCity-zenconsortiummembersandareprotectedby theapplicable laws.Exceptwhereotherwise specified, all document contentsare: “©City-zenproject -All rights reserved”.Reproduction isnotauthorisedwithoutpriorwrittenagreement.

Thecommercialuseofanyinformationcontainedinthisdocumentmayrequirealicensefromtheownerofthatinformation.

AllCity-zenconsortiummembersarealsocommittedtopublishaccurateanduptodateinformationandtakethegreatestcaretodoso.However, theCity-zenconsortiummemberscannotaccept liability forany inaccuraciesoromissionsnordo theyaccept liability foranydirect,indirect,special,consequentialorotherlossesordamagesofanykindarisingoutoftheuseofthisinformation.

This project has received funding from the European Union’s Seventh Programme for research, technological development anddemonstration under grant agreement No 608702.

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PR O J E C T I N F O R M A T I O N

ProjectAcronymandFulltitle City-zen,abalancedapproachtothecityofthefutureCallIdentifier FP7-ENERGY-SMARTCITIES-2013

GrantAgreement n°608702FundingScheme CollaborativeProjectProjectDuration 69months

StartingDate 01/03/2014

MAIN COORDINATOR Name Charles-HenriBourgois

Organization VITOAddress Boeretang200,2400Mol(Belgium)Phone +3214335054E-mail [email protected]

CONSORTIUM PARTNERS

N°DoW Organization Acronym Country

1 Vlaamseinstellingvoortechnologischonderzoek VITO BE

2 StichtingAmsterdamseEconomicBoard AIM NL

4 WestpoortWarmteB.V. WPW NL

5 Alliander LIAN NL

6 HESPULAssociation HESP FR

7 TheQueensUniversityofBelfast QUB UK

8 Th!nkE THNK BE

9 DNVGLNetherlandsB.V. DNVGL NL

10 TechnischeUniversiteitDelft TUD NL

11 StichtingWaternet WAT NL

14 AEBExploitatieBV AEBE NL

15 DaikinAirconditioningNetherlandsB.V. DAIK NL

17 Universita’degliStudidiSiena UNIS IT

18 VilledeGrenoble MUNG FR

19 Commissariatàl’EnergieAtomiqueetauxEnergiesAlternatives CEA FR

20 CompagniedeChauffageIntercommunaledel’AgglomerationGrenobloise CCIA FR

21 GazElectricitedeGrenoble GEG FR

22 SASATOSWorldgrid ATOS FR

23 ClicksandLinksLtd&L C&L UK

24 SanquinBloodSupplyFoundation SANQ NL

25 Grenoble-AlpesMétropole METRO FR

26 GreenspreadProjectsBV GREE NL

27 AgenceLocaledel'EnergieetduClimatdelaMétropoleGrenobloise ALEC FR

28 UtrechtUniversiteit UU NL

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D E L I V E R A B L E I N F O R M A T I O N

Number D9.14Title Documentedpathstosuccessfuldeployment

Leadorganization VITOMainauthor(s) HanVandevyvere(VITO)Contributors XYZReviewers XYZ

Nature R–ReportDisseminationlevel PU–Public

DeliveryDate M69(30/11/2019)

VERSION HISTORY

Version Date Author/Reviewer Description

0.1 dd/mm/yyyy Name Firstdraft

1.0 dd/mm/yyyy Name Finalversion

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A B S T R A C T

Texttofollow

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E X E C U T I V E S U M M A R Y

Texttofollow

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G L O S S A R Y / L I S T O F A C R O N Y M S

ATES Aquiferthermalenergystorage

CAPEX capitalexpenditures

COP Coefficientofperformance

DWDN Drinkingwaterdistributionnetwork

DSO DistributionSystemOperator

E2E End-to-end

EIP-SCC EuropeanInnovationPartnership–SmartCitiesandCommunities

EU EuropeanUnion

EV Electricalvehicle

GJ GigaJoule

kW kilowatt

kWh kilowatthour

kWp kilowattpeak

LV Lowvoltage

MV Mediumvoltage

MVS Mediumvoltagestation

OPEX operationalexpenditures

PV Photovoltaic(panel)

ROI Returnoninvestment

SEER Seasonalenergyefficiencyratio

SME Smallandmediumsizedenterprise

SoC Stateofcharge(battery)

TCO Totalcostofownership

TSO Transmissionsystemoperator

USEF UniversalSmartEnergyFramework

V2B Vehicle-to-building

V2G Vehicle-to-grid

VPP Virtualpowerplant

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T A B L E O F C O N T E N T S

Projectinformation ________________________________________________________________________ I

Maincoordinator I

Consortiumpartners I

Deliverableinformation ____________________________________________________________________ II

Versionhistory II

Abstract III

Executivesummary ______________________________________________________________________ IV

Glossary/ListofAcronyms _________________________________________________________________ V

TableofContents ________________________________________________________________________ VI

CHAPTER1–Introduction __________________________________________________________________ 8

CHAPTER2–PVSystemwithStorage,ALEC,Grenoble ___________________________________________ 9

2.1. Descriptionoftheinnovationanditsrationale 9

2.1.1. Rationale___________________________________________________________ 9

2.1.2. Description ________________________________________________________ 10

2.2. Developmentpath 11

2.2.1. Opportunitiesandbarriers–lessonslearnedfromtheALECpilotcase_________ 11

2.3. Businessmodelandacceptanceforthestakeholders 13

2.4. Disseminationactivitiesandpotentialactionsforincreasedtakeupbytargetgroups 15

2.5. Summaryandfurtherconclusions 16

CHAPTER3–SustainableProcessCoolingandHeatingwithThermalEnergyfromDrinkingWaterSupplyInfrastructure,WATERNET&SANQUIN,Amsterdam ___________________________________________ 17

3.1. Descriptionoftheinnovationanditsrationale 17

3.1.1. Overviewandrationale_______________________________________________ 17

3.1.2. Technicalsystemdescription __________________________________________ 18

3.2. Developmentpath 18

3.2.1. FromSchipholoverthecityofAmsterdamtoSanquin:dealingwithchangesinmanagement(strategies) _____________________________________________________ 18

3.2.2. Opportunitiesandbarriers–lessonslearnedfromtheSanquinpilotcase_______ 19

3.3. Businessmodelandacceptanceforthestakeholders 22

3.4. Disseminationactivitiesandpotentialactionsforincreasedtakeupbytargetgroups 23

3.5. Summaryandfurtherconclusions 24

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CHAPTER4–VirtualPowerPlantincludingEnd-to-EndandVehicle-to-GridSmartification,ALLIANDER,Amsterdam 27

4.1. Descriptionoftheinnovationanditsrationale 27

4.1.1. Rationale__________________________________________________________ 27

4.1.2. Overviewdescription ________________________________________________ 27

4.2. Developmentpath 29

4.2.1. Endtoendsmartification_____________________________________________ 29

4.2.2. Virtualpowerplant__________________________________________________ 30

4.2.3. Vehicletogrid______________________________________________________ 32

4.2.4. Citizenpaticipation__________________________________________________ 35

4.2.5. Opportunitiesandbarriers–lessonslearnedfromtheAmsterdamVPPpilotcase 37

4.3. Businessmodelandacceptanceforthestakeholders 40

4.3.1. TradingontheenergymarketwiththeVPP_______________________________ 40

4.3.2. EconomicaspectsofV2G _____________________________________________ 41

4.4. Disseminationactivitiesandpotentialactionsforincreasedtakeupbytargetgroups 42

4.4.1. Communicationanddissemination _____________________________________ 42

4.4.2. Actionsandpotentialforupscalingandreplication-recommendations ________ 42

4.5. Summaryandfurtherconclusions 43

CHAPTER5–Communication ______________________________________________________________ 45

5.1. Availablecommunicationtools 45

5.2. Scientificpapersandotherpublications 45

5.3. Mediacoverageandevents 45

ListofFigures 46

ListofTables 47

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CHAPTER 1 – In t roduct ion

Deployment,replicationandupscalingofsuccessfulsmartcitysolutionswithaviewonrealizingthelowcarboneconomycanbeconsideredasaformoftransitionmanagement.

This is not only about creating a market and ensuring that the costumers will embrace theinnovations. Agood smart city solution implies thatadded societal value is created. At the sametime it implies that structural changeswill take place in thewaywe consider accepted practices,establishedbusinessmodels,commoncollaborationsandexistingregulatoryframeworks1.

Thisdeliverabledescribes3successfulpilotsofCity-zen,takingtheformerperspectiveasastartingpoint. Theselectionof successfulpilotcases isnon-exhaustive:allpilotsofCity-zenhavemuch todemonstrateandtolearn.Thecaseswereselectedonthebasisoftheirparticularinterestfromboththe development and replication point of view: what were the potentials and the problemsencounteredwhilesettingupthedemonstrator?Whyisitasolutionthatdeservesreplication?Andhowdoweenvisagethatthisreplicationmayhappen?

Thedeliverabledescribesthe3pilotcasesaccordingtothefollowingstructure:

• Descriptionoftheinnovationanditsrationale;approachtothedevelopment• Developmentpath:challengesandopportunitiesencountered,trackrecordofrealisation• Assessmentofbusinessmodelandacceptanceforthestakeholders• Disseminationactivitiesandpotentialactionsforincreasedtakeupbytargetgroups• Summary:actualachievementsthroughtheinnovation

The3selectedpilotsare:

1. PVSystemwithStorage,ALEC,Grenoble2. Sustainable Process Cooling andHeatingwith Thermal Energy fromDrinkingWater Supply

Infrastructure,WATERNET&SANQUIN,Amsterdam3. Virtual Power Plant including End-to-End and Vehicle-to-Grid Smartification, ALLIANDER,

Amsterdam

Each of the next chapters describes one pilot case with conclusions and replicationrecommendations. A separate chapter is dedicated to related communication and disseminationactivities>adapt/chapterbyTh!nkE.

Note: the present text contains parts of texts that have been taken over (with or withoutmodifications) from other City-zen deliverables, in particular from reports describing the 3demonstratorsdiscussedinthepresenttext.Thesameholdsforphotosandschemes.Forpracticalreasons and given the common project and authorship basis, these (modified) text parts andillustrationsarenotexplicitlybeingcross-referenced,normarkedascitations.

Anyfurtherdetailedexplanationsaboutthedemonstratorscanbefoundintheirrespectivereportingdeliverables.1 For an overview analysis of replication barriers and opportunities, see the Smart City Information System,Why may replication (not) be happening - Recommendations on EU R&I and regulatory policies,https://smartcities-infosystem.eu/sites/www.smartcities-infosystem.eu/files/document/4767_scis_report_2x16-20seiten_web.pdf

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CHAPTER 2 – PV Sys tem wi th S torage , ALEC , Grenoble

2.1. DESCRIPTION OF THE INNOVATION AND ITS RATIONALE

2.1.1. Rationale

TheideaofinstallingaregularPVsystemontheroofofALEC(AgenceLocaledel'EnergieetduClimatdelaMétropoleGrenobloise)cameupinAugust2015justafterthefirststaffmembersmovedintotheorganisation’snewoffices.ButCity-zenofferedthepossibilitytoincreasethelevelofinnovationoftheprojectandtoequipthePVsystemwithasmartenergymanagementsystemandasmall-scalebatterystorageinordertoincreasethelevelofself-consumption,andsototesttheoperationofaproductavailableonthemarketbutforwhichlittlefeedbackwasavailableinFrance.Atthemomentof theproject idea, the financial conditions for using and feeding in PV-generatedelectricitywereverydiscouraging,butabout tochange. Thenewregulatorycontext (decree fromMay2017)wasfavourablefortheproject.

Fromthesocietalperspective,therearealsotechnicalmotivationsfor increasingself-consumption.Withrisingsharesofdecentralizedrenewableelectricityproduction,chargesonthegridcanbekeptundercontrolbystoringtheelectricitywhereitwillbeused.Transmissionlosses,whicharedeemedconsiderable in France, can be avoided (but it should be kept in mind that storage devices likebatteries present also internal losses over time). Batteries can hereby be programmed to fulfillvarying requirements: maximize self-consumption, reduce peak loads on the grid or limit theacquiredpower.

Thereplicationpotentialofthesetupisevident,asfaras itsbusinesscaseispositive. Inparticulartheavailabilityof large flat roofareasonbothmanycollectiveresidentialandtertiaryor industrialbuildingspresentsavastfieldofapplication.

Figure1:newALECoffices,Grenoble.

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2.1.2. Description

AninnovativesystemcombiningaPVinstallationwithelectricalstoragewasimplementedinordertoexperimentwithmaximizedself-consumption.ThePVsystemwasinstalledontheroofofanofficebuildingrealized in2015,calledESPACE, inwhichCity-zenprojectpartnerALEC’sheadquartersarelocatedtogetherwith2otherNGOsactiveinthepromotionofenergyefficiency,renewableenergyandairquality(AGEDENandAirRhône-Alpes).Thebatterysystemandthecontrollerwereplacedinanexistingtechnicalspaceoftheofficebuilding.

TheinstallationwascompletedinDecember2017.Sincethenmonitoringtakesplace.

Basedonatechno-economicanalysis,ALECimplementedaschemewiththefollowingfeatures:

§ PVpanelswithacapacityof16,5kWp;§ 2PVinverters;§ 4,5kWh(3,6kWhusable)electricalstoragecapacity;§ Acontrollerforthesmartmanagementofthesetup;§ The smart controler also manages the thermal storage for domestic hot water (only

charging).Thebatteryshouldinfactnotchargethewatertankbydefault,toavoiduselesscyclingandbatterylosses.

Figure2:technicalsetupoftheinstallation

Theofficebuildingitselfisservicedbyelectricityonlyandusesaheatpumpforheatingandcooling.Ithasalowenergyconsumption:50kWh/m2(finalenergy)forthetotalofallapplications,measuredduring2yearsbeforethesolarinstallation.

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Figure3:viewonthePVplantandthebatterywithitssideequipments

Threeusecaseswerestudied:

§ Maximizingself-consumption;§ Reducingpeakchargingonthegrid;§ Reducingsubscribedpower.

Nevertheless, the reduction of the building contracted powerwas judged almost impossible giventhe current system control tool, with a small added value for both the plant owner and theDistributionSystemOperator(DSO).Theprocurementofgridservices,forexamplethereductionofthe peak consumption from the local grid, was also difficult to achieve: it would need a regularupdate of the battery strategy (daily or weekly depending on the DSO demands) following anoperationalplanprovidedbytheDSO.Herethequestionroseifthesmallprofit(giventhebattery’ssmallsize)wasworththemanualwork. Themaximizationoftheself-consumptionappearedtobethenaturalgoalforthistypeofsmallbatterycoupledwithaPVsystem,andthebatterycontrolset-upwasdonetofacilitatethisachievement.

AfteroneyearoffunctionaloperationofthePVandbatterysystem(andtheeliminationoftoothingdiseases), the recorded self-consumption rate was 86%, and the self-production rate 25%. Bothfigureswere,atleastforthe(limited)givenmonitoringperiod,abovetheexpectation.

Exceptfromtheinitialdifficultiesinthepositioningofthesmartmeter,leadingtosomeanomaliesinthe battery operation, both PV system and battery performed at least as well as expected. Thematerial indeed reached the performance announced by themanufacturers, and no downtime orunavailabilitywerenoticedduringthealmosttwoyearsofoperation.Fromatechnicalpointofview,theoperationisthusasuccess.

However, even with a good system performance, and with the sale of the surplus of electricity(generatingaround170€peryear), theprofitabilityof thesystemremains low.Timeof returnoninvestment is indeed expected to be between 16 and 20 years, depending on electricity priceinflation.

GiventhatthePVsystemisontheroofofatertiarybuilding,andthebatteryinitsserviceroom,withthegridconnection,thereisnoconflictofusageofspaceornoisenuisancegeneratedbythesystem.In themeantime, informationon thesystemproductionandbuildingconsumptionareprovided inrealtimeinthebuilding’sentrancehall,facilitatinguser’sinvolvementandraisingvisitorawareness.

2.2. DEVELOPMENT PATH

2.2.1. Opportunities and barriers – lessons learned from the ALEC pilot case

Atthestartofthedemonstrator(2016),theprojectpartnersidentifiedthefollowingopportunities,barriersandpossiblesolutions,seeTable1.

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Opportunities Barriers/Challenges Solutions

Technical(/Geographical)

§ Wide deployment of PVproduction in France fromexisting buildings, and especiallyon flat roofsof tertiarybuildingsandcollectivehousing.

§ Roughly 15 kWp maximumpower can be installed on thedemonstrator, for a productioncloseto18000kWh/p-y

§ Good matching betweenproduction/demand in officebuilding

§ South facing tilted PV panels,givingoptimalyields

§ Storagecanhelpsmartnetworkinfacing peak demand, andacceptinghigheramountofpowerlocally

§ Projet cost efficiency requires inour case that 90% of theproduction is used inside thebuilding

§ Onexistingbuildings,roofsshouldbeabletocarryPVarrays

§ Roofareashouldbecompatibletoallowsignificantproduction

§ Including building’s onsiteproductionin“smartnetwork”

§ Implement an on site storage(20 kWh capacity required intheproject)

Political/Legal § IncreaselargelyPVproductioninFrance to reach the “EnergyTransitionLaw”objectives

§ In France there are no specificregulations to make the linkbetween on site storage and theexternalgrideasy,especially foraplant<100kWp.

§ Excedentproduction is difficult todelivertotheexternalgridincaseof onsite storage (national gridoperator imposes hard technicalspecifications)

§ Howtocontractwith thebuildingusers (the savings on the globalelectricity bill should also beretributedtotheplantowner)

§ Discussions ongoing withNational Grid OperatorENEDIS

§ A model for contracting withbuildingusersisunderstudy

Financial/Economic

§ In France costs for classicintegrated PV systems onbuildings are around 2 to 3€/KWp depending on the power(1€/kWp for panels only),4€/KWpincl.batteriesandsmartmanagement (batteries costabout 800 €/kWh storagecapacity)

§ Pay-back timecanbe30Years ifenergypriceincrease+3%/yr(15yearsincl.subsidies)

§ A business case can be made ifmaterialpricesdecrease (panels,batteries), and electricity priceincreases (the plant reduces theelectricalbillinalargeramount).

§ Who is investing when thebuildinghasseveraltenants?

§ Low feed-in tariff (5 to 6 c€/kWhin case of production from non-integrated systems (flat roofsusuallyareintheseconditions)

§ Lowelectricityprice15c€/kWh§ Excedent production cannot be

valorized with feed-in tariffs, dueto battery onsite, this productioncouldbelost

§ Spot market mechanisms couldhelptovalorizethestorage

§ Batteries onsite to increaseonsiteconsumption(matchingproduction/demand) toreducetheelectricalbill

§ Discussions ongoing withenergy suppliers to buy theexcedent, if grid operatoraccepts this excedent on thegrid

Social § RESproductiondevelopmenthasmainly positive impact on socialaspects (employment, reducingdependenceonfossilfuels,...)

§ Security of batteries inside orclose to the building can be anissue

§ People could take part ininvestmentviaspecificfunds

Environmental § Greenhouses gases avoided: 2tons CO2eq/yr for at least 20years

§ Equivalentto14.000kms/yrwithacar(130gCO2eq./km)

§ Battery life cycle analysis shouldbeconsidered

Table1:opportunities,barriersandsolutionsidentifiedbytheprojectpartnersattheoutsetofthedemonstratorimplementation.

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DetailedplanningofthedemonstratorwasfinishedinFebruary2017andworksstartedinJuly2017.Itwasnecessary tocontrol thestructuralcapacityof thebuilding inorder tobesure that theroofcould carry thePV installation. Agood fixationprinciple for thepanelswas required; thisbelongshowever to the classical design work to be performed before installation. Nevertheless, due tostability reasons and technical requirements some panels are partly shaded by the roof’s fullbalustradeduringthewintermonths.

In June 2017, a transition analysis workshop was organized to discuss the state of affairs of theGrenoble demonstrators. Amongst others, a new assessment was made of the PV + batterydemonstrator.Thisledtothefollowinginsights2:

(+) A new law in France regarding the energy transition allows to organise self-consumption in amuchmoreadvantageousway:itisnotanymoreobligatorytosellallone’selectricityproductiontothegridatadisadvantageousprice,and thenbuyback fromthegridallneededelectricity for thebuilding. Self-consumption is now possible and even supported by an investment subsidy; sellingexcessproductiontothegridcanbedoneatafixedtarrif.

(+) As transport losses over the electricity grid in France are important, each project that bringsproductionclosertotheconsumptionisdesirable.Thisisparticularlythecaseforaself-consumptionscheme.

(+/-)Where PV production is at its industrialmaturity, this is by far not the case for storage andsmart management systems in France. The demonstrator would not be feasible without the EUfundingsupport. Thepaybacktimeoftheproject is18yearsifonecountswithyearlyincreasesoftheelectricitypriceby2.5%. Tomake this set-up reallymarket-compatible,electricitypricesmustincreasemoreandbatteries/storageshouldbecomecheaper.

(-)InsurancecompaniesarenotfamiliarwiththerisksofaPV+batterysetupandconsequentlytakelarge(ifnotexcessive)marginsontheinsurancefee.Inthisway,wheretheinstallationgeneratesarevenueof2.200€peryear,570€oronequarteroftheprofit,goestotheinsurancefeeonly.Thisisan illustration of a transition bottleneckwhere lack of capacity and experience, risk aversion andresultinghighertransationcostsleadtoaspecificbarrier.

2.3. BUSINESS MODEL AND ACCEPTANCE FOR THE STAKEHOLDERS

ALECmade simulations for thebusinessmodelof the setup. Thesearegraphically summarized inFigure4andFigure5. Thehigh insurance feecanactasakiller. Butevenwithoutbattery in thesetup, this feewould remain high. It is linked to a general, conservative attitude of the insurancecompanies towards PV installations,with fee calculations being basedonmaterial and installationcosts,howeverwithoutproperassessmentofrisksmitigatedbytechnicalchoicesforroofmechanicalstrengthandwaterproofedness,batterytechnologyandelectricalprotectionsinsuringsafety.

2 SeealsoAnnexX:minutesofa transitionworkshopheld inGrenoblewithall localdemonstrators,15 June2017.

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Figure4:businesscaseforaPV+batterysetupinFrance,ROIversusinvestmentandinsurancefee.

Figure5:ROIvsinvestment,electricitypriceevolutionandselfconsumptionrate.

Concluding, the business case is slightly positive for the current setup. This is confirmed by themonitoring data. Time of return on investment is expected to be between 16 and 20 years,dependingonelectricitypriceinflation.Thebusinesscasecanimproveinvaryingdegreesdependingonthefactorthatischanging,asrepresentedinTable2.

Criterium Impactonprofitability Comments

CostInvestment *** 2,1to1,5€/Wp:GainonROI=6years

Electricitypriceevolution ** +2,5%to4%/yr:GainonROI=3years

Self-Consumptionrate ** 70%to90%:GainonROI=2to3years

InsuranceFee *** 30%to10%ofincome:GainonROI=4to6years

Valorisationofprod.surplus * 0to0,06€/kWh:GainonROI=1to2years

Table2:businesscasefactors

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Summarizing,thefavourableconditionsforbusinessmodelimprovementarereportedas:

§ LowerinvestmentpricesforPVsystemsandespeciallybatteries;§ Highattentiontoinsurancecontractingfees,theseshallpreferrablybereducedbybetterrisk

assessments;§ Bettervalorisationoftheinjectionofthesurpluselectricityontheexternalgrid;§ Attentivemonitoringtoguaranteeanoptimizedself-consumptionrate.

Projectpartnersalsomentionincreaseofelectricityprices(judgedtobelowinFrance,0.148€/kWhforALEC)asabeneficialfactor;howeverthisargumenthastwosides.Ifself-consumptionishighitmaybevalid,butmanysustainableenergysolutionsrequiretheopposite. It isforexampleknownthatthebusinesscaseforinstallingaheatpumpcanbekilledbyhighelectricityprices.

Inmoregeneralterms,theacceptabilityofdrasticallyincreasingelectricitypriceswillbelowandwemaysuggest that this isnota factor thatshouldbereliedon forbetterbusinesscasesof thePV+batterysystem.

Expandingon acceptability, the system setup is already commonpractice forwhat regards thePVpanels and, forwhat concerns the battery, the latter can be discretely present in e.g. a technicalspace.Twocomplicatingfactors(assessedforthevirtualpowerplantdemonstratorinAmsterdam,seealsotherespectivechapter)arehoweverthat:

§ Enoughspacemustbeavailableforthebatteryanditssideequipment. InAmsterdamthisappearedtobeabottleneckinsmallerhouses;

§ Andcablingworksmaybecomplex,costlyandabuildingsitehassleinexisitingbuildings.

In the case of the demonstrator in Grenoble, positioning of the battery systemwas easywith nonuisancesforthebuildingusers.

Anadditionalassetisthereal-timedisplayoftheperformanceoftheinstallationintheentryhalloftheofficebuilding,raisingawarenessofbothemployeesandvisitors.

2.4. DISSEMINATION ACTIVITIES AND POTENTIAL ACTIONS FOR INCREASED TAKE UP BY

TARGET GROUPS

Localprojectpartnershaveforeseen(supportto)thefollowingdisseminationactions:

§ Regionaldissemination:ALECandHespulsupportregionalstakeholdersandprojectowners.The ALEC project has been/will be presented in several conferences dedicated to PV self-consumption.

§ National dissemination: French Agency for the Quality of Construction (AQC) guides: seehttps://www.programmepacte.fr/installations-photovoltaiques-en-autoconsommation, thisis a technical guide on PV self-consumption where the City-zen demonstrator is beingreferredto.

§ Europeandissemination:whenvalidated, thePVPlantDeliverableswilbeputon theopenaccessdatabaseOpenAirewitha linktotheCity-zengrantagreement. ResultsonbusinessmodelswillbesharedwiththeSmartCitiesInformationSystemandwiththeEIP-SCCMarketPlace,ActionClusterBusinessModels&Financing.

A detailed overview of all communication and dissemination activities performed until September2019 can be found in D7.12, Report on the monitoring of a PV storage solution, Chapter 5:communication.

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2.5. SUMMARY AND FURTHER CONCLUSIONS

ThePV+batterydemonstratorprovestobetechnicallyfeasible,withaslightlypositivebusinesscasein present conditions, and a vast replication potential given the ample availability of areaswheresuchsystemcanbedeployed.Reducinginvestmentcosts,inparticularforbatteries,areexpectedtomakeforbetterfuturebusinesscases.

Regulatoryboundaryconditions, inparticularregardingtheelectricitymarket,makeorbreaksmartcity solutions. National translations of EU directives may hereby differ from member state tomemberstate.Inthepresentcase,afavourablechangeofFrenchlawin2017clearedthewayforasuccessfulimplementationofthepilot.Thismustbeseeninthecontextofdeep,structuralchangesin the electricity markets: the transition from a top down, centralized and mainly stationaryproduction and distribution system towards a dynamic, decentralized and peer-to-peer orientedprosumerconstellation.Nonofthe‘in-between’situationsbetweentheoldandthenewparadigmiscomfortable.

Lack of knowledge and capacity, risk aversion and consequently high transaction costs create aspecificbarrier forpioneeringprojects. In thepresentcase, thiswas remarkably illustratedby theinsurancecompany imposinga fee that cancelledaquarterof theprofit generatedby the specificsetup.Withabetterriskassessmentfromthesideoftheinsurerinplace,projectpartnersinFranceopinionedthatthisfeecouldbereduced.

Alargereplicationpotential istobeexpectedinbuildingswherepowerdemandmatcheswellwithsolarproduction:officebuildings,hospitals,commercialcenters,industry.

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CHAPTER 3 – Sus ta inab le Process Coo l ing and Heat ing w i th Thermal Energy f rom Dr ink ing

Water Supply In f ras t ructure , WATERNET & SANQUIN , Amsterdam

3.1. DESCRIPTION OF THE INNOVATION AND ITS RATIONALE

3.1.1. Overview and rationale

Drinkingwaterpipelinescanbeusedtoexchangethermalenergy.Amsterdamisafrontrunnercityfor putting this idea into practice on an industrial scale. In the present demonstrator project, theDutch blood bank Sanquin uses cold from the public drinkingwater supply to cool its productionprocesses.

Cooling with drinking water is both sustainable and efficient. In the case of Sanquin the setup isdesignedtosaveemissionsofaround1,100tonnesofCO2peryear.

ApartfromCO2reductionsandapositivebusinesscase,coolingwithdrinkingwaterpresentsotheradvantages over conventional systems – especially in urban contexts, such as: low footprint, lowweight,nonoiseproblems,goodcoolant(water),lowmaintenance,andreliability.

In the Sanquin pilot, cold is extracted from a 700 mm diameter, low pressure drinking watertransportpipelineclosetothefacility. Inthewintermonthsthewatertemperature inthispipelinedropstoaminimumofaround8°C.Toensuremicrobiologicalsafetythedrinkingwatertemperatureis not allowed to rise above 15°C in any part of the drinking water system, which defines theoperational boundaries. The production target for cold is around 30,000GJ per year. The cold isstoredinanATESsystemand/orisuseddirectlyforprocesscooling.

Atthismoment,onlyarelativelysmallpartofthiscapacityisusedbySanquin.Atacoolingloadof6.587GJ/year,theCO2reductioniscurrently227tonnes/year.Within2yearsofthestartofthecoldproduction,Sanquinexpectstouseapproximately20,000GJ/yearofcold,correspondingtoaround730 tonnes of annual CO2 savings. After 10 years, when more buildings will be conected to thesystem,Sanquinexpectstoextractthetargeted30,000GJ/year.

Excludingthepharmaceuticalprocesscooling,the‘coolingfromdrinkingwater’systemshowsaCOPofaround40.AtfullcapacityitisexpectedtoresultinaCOPofupto100.

The complete system (‘cooling from drinking water’ including the pharmaceutical coolingapplications)results inaCOPofaround25.Thealternative(mechanicalcoolingonly)wasexpectedtohaveresultedinaCOPof9.

Apartfromcoolingwithdrinkingwater,Sanquinalsoconnectstothelocaldistrictheatingsystemforits heatingpurposes. Usingheat from the local district heating grid is expected to result in a800tonnes/yearCO2reductioncomparedtotheexistingsystem.Thispartofthedemonstratorwillnotbefurtherdiscussedinthepresentreport.

Bothsystemshavebeeninstalledin2017andhavestartedproductioninNovember2017.

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3.1.2. Technical system description

Figure6:Processflowdiagram‘coolingfromdrinkingwater’

The‘coolingfromdrinkingwater’systemasshowninthefigureabovehasbeen inoperationsinceJanuary2018.Thecoldenergyretrievalanddistributionprocessiscarriedoutinfoursteps:

• Step1:Energyextractionthroughheatexchanger(HE)1andpump(P)10;• Step2:

o A)Energybuffering(loadingandunloading)inATES2throughHE3andP1/2/11o B)Energybuffering(loadingandunloading)inATES1throughHE4/5andP5/6/12

• Step3:EnergydistributionthroughHE2/5andP3/4/5/8/9• Step4:DeliveryofcoldenergythroughHE6/7andP7andmechanicalcoolingback-up

3.2. DEVELOPMENT PATH

3.2.1. From Schiphol over the city of Amsterdam to Sanquin: dealing with changes in management (strategies)

AttheoutsetofCity-zen,thewaterutilityWaternethadtheplan,thebusinesscaseandthecommitmentsforcoolingtheairportofSchipholonthebasisofcoldextractionfromwatermains.ThiswouldhavebeenasubstantiallylargerprojectthantheactuallyrealisedpilotatSanquin.

Schipholhoweverdroppedofffornotfindingenoughprofitinit–evenwithapositiveTCOcase.ThishappenedinparticularafterchangesoccurredinSchiphol’smanagement.

Therewereothercomplicatingfactorsaswell.Thecoolingsystemoftheairportappearedtobeacomplexmixofcoolinginstallationswhichsubstantiallyaugmentedthecomplexityofintervention.

SubsequentlyWaternetprospectednewurbandevelopmentsforasimilarapplication.A1500newappartmentsprojectwithenergyandnutrientextractionfromwastewaterwashoweverconsidered

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asatoobiginnovativecasebythecity.Moreover,afterthefinancialcrisis,urbandevelopmentactivityrelaunchedquitesuddenlywithallcitydivisionsrevertingbacktotheirtraditionaldevelopmentpractices.Withinthis‘backtonormal’rush,theWaternetcasewaseasilyneglected.WhenWaternet’sproposalcamebackintoscope,theurbandevelopmentprojectwasalreadyinanadvancedstateofdevelopmentpreventingthechangesthatwereneededfortheproposedpilotsetup.

Eventually,WaternetfoundthefinalanddefinitivepartnerforadrinkingwatercoolingpilotinSanquin,abloodbankwithfacilitiesinAmsterdam.

3.2.2. Opportunities and barriers – lessons learned from the Sanquin pilot case

Duringthefirstmonitoringperiod, from7August2018until17August2019,someproblemsweredetected in the ‘cooling fromdrinkingwater’ system.Oneof theheat exchangerswasperformingbelowexpectations.Uponinspectionitwasalsofoundtobeaffectedbygalvaniccorrosion,causedby rust particles from the drinking water pipeline. Some modifications were performed. Bothexchangerswere planned to be opened and inspected again inOctober 2019 for follow-upof theperformanceandthecorrosionproblem.

Thestartupchallengescomealsoforwardintheresultsofthefirstmonitoringyear:

Figure7:TotalthermalenergyretrievedweeklyfromdrinkingwaterandATES-02,andCOP.Totalelectricity:127.368kWh,totalthermalenergyWaternetside:10.965GJ.TotalthermalenergyfromATES2:6.382GJ.

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Sanquinreportstheanomalitiesasfollows(correspondingnumbersinFigure7):

• Number 1: Inspection and removal of plates from one of the heat exchangers and pumprepairSanquinsystem.

• Number2:SysteminstandbymodetodeterminetraditionalmechanicalcoolingCOP.• Number3:Systemturnedoffbecauseofmeasurementsensuringdrinkingwaterquality.This

was necessary because one of the heat exchangers was repaired and the system wasopened. After opening a drinking water system, the water quality must be checked. Thistakesaboutoneweek.

• Number 4: Period with only one heat exchanger in operation (50% capacity) and lowerefficiencyduetoanincreaseinpumpusebecauseofasignificanthigherdifferentialpressure(100%flowand50%heatexchangesurface)overtheheatexchanger.

• Number5:MaintenanceshutdownperiodSanquin(lowtozerocoolingenergyneeded).

It is importanttonotethattheCOPofthesystemdependsonthemomentaryenergydemandandotheroperationalparameters,hence it fluctuatesstrongly (makingabstractionof thesystembeingstoppedatcertainmoments).

InthisprocestheATEScoldstorage isbeingcharged(inwinter,resulting inapeakcooling loadonthedrinkwaterpipeline)anddischarged(insummer,injectingcoldbackintothesystem),resultinginabalanceonyearlybasisandavoidingtotakecoldfromthedrinkwaterpipeline insummer(whenwatertemperaturesarehigherinthepipeline).

Severalpossible improvementsforthedesignofthe‘Coolingfromdrinkingwater’ installationhavebeenidentifiedandsomewerealreadyperformed,e.g.atthe levelofthesoftwarecontrollingandoptimizing the balance between directly cooling and recharging the ATES (winter regime). Theobserved problem was that the potential of retrieving cold from the drinking water was notmaximized and had a direct correlation with the process cooling to Sanquin. As a result theregenerationofATES-2didnotincreaseproportionallywithdecreasingprocesscoolingdemand.

Fluctuationsincoolingdemandaresignificant.Strongfluctuationsincoolingdemandleadtoahighlyfluctuating entry temperature to heat exchanger 1 and ATES-2. At this moment the controllingsoftwareandATES-2cannotactadequatelyenoughuponthesefluctuations.

Sanquinhasforeseenthefollowingmitigatingmeasuresforthisproblem:

1. Furtherfinetuningofcontrolparameters.Thisprocessistimeconsumingandstillongoing.2. Thisproblemwilldecrease intimewhena largerpartofSanquin’ssystemsisconnectedto

thecoolinggrid.Thiswill createa coolingbase loadand the fluctuations fromtheprocesscoolingwillhavelesseffect.

Assuring drinking water quality is paramount at any moment in time. Because the relatedprocedures regarding incidents or faults could be very disruptive for Sanquin, an emergencyconnectionforamobilecoolingmachineisavailable.

The installation to extract cooling from the drinking water pipeline was prefabricated, and theninstalledinplace.Thecurrentinstallationhasbeenbuiltonaminimalfootprint(m2).Asaresult,theconstruction costs have also been minimal thanks to cheaper prefabricated construction, andcheaperinstallationonsite.However,prefabricatedinstallationmeansthattherearelimitationsonthedimensions,mainlybecauseofthemaximumtransportsize. Duetothelimitedspacethatwasavailable on site, the installation has been built long and narrow and partly below ground level,alongsideaparkingstrip.Asaresult,theinternalspaceavailablearoundthetwoheatexchangersis(too)tight.

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Figure8:installationoftheprefabricated,mainheatexchangingunit,undergroundandatthelimitsofaparkinglot.

This turnedmoreover out to be an extra cost factor: as a result of the unforeseen corrosion andclogging problemsmuchmore inspection andmaintenancewas needed than expected, and thosecannotoccurinthebestconditions.Theergonomicsoftheinstallationareinadequate:notallpartsare directly and easily accessible, performingmaintenance on the heat exchangers is difficult, theroomwasnotdesignedforeasyevacuationinthecaseofdangeretc.Thismeansthatmaintenanceismore expensive, not only because more care has to be taken to mitigate the occupational risks(falling, bumping, physical overloadetc.), but alsobecause formajor interventions the roof of thebuildingmust be removed. The roof is prepared tobe removed relatively easybecausenothing isfixedtotheroof

Forfuturesimilarprojects,itisrecommendedtomaintainaspacearoundtheequipmentofatleast800mmandincludehoists.

Theheatexchangersareaffectedbygalvaniccorrosion,causedbyironoxideparticlesthatgetstuckbetween theplates.Also somegrit has been foundbetween theheat exchanger plates. Since thedrinking water main distribution line contains iron oxide, the corrosion could be a permanentproblem. However, the iron oxide and grit problems could also have been incidental, caused byrepairworksupstreamonthedrinkingwaterpipeline.

Follow-upcontrolsareforeseen.Inthecaseofastructuralproblem,twosolutionsareconsidered:

• Solution1:replacestainlesssteelplatesbytitaniumplates.Thisisaveryexpensivesolutionbutgivesmorecertaintyaboutlongevityandcorrosionresistance.Withthissolutiontheriskofsedimentaccumulation(clogging)isnotmitigated.

• Solution2:placea250–500mucandlefilterupstreamtoprotecttheheatexchangerfromironoxideparticles.AfiltermustcomplywiththeKIWAlabel(Dutchcertificatefordrinkingwaterinstallations).

Drinkingwater distributionnetworks (DWDNs), havepotential and significance for thermal energyrecovery in the form of cold. However, retrieving cold from drinking water means increasing itstemperature, which may enhance microbial activity and proliferation of opportunistic pathogens

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(OP’s), like Legionella spp. Pseudomonas aeruginosa, Mycobacterium avium complex andStenotrophomonas maltophilia, within DWDN. This may happen both in the water and biofilmphases,withpossiblenegativeeffectsonwaterquality.

Hence, it is advised to conduct comprehensiveanddetailed (1-2year long, inorder to lookat thepatternsandreproducibilityoftheresultswithinDWDNs)microbialstudiesofthedrinkingwateraspre-requisite,and formulateabaseline repositoryofdrinkingwatermicrobiome,beforeusing it infullscalecoldrecoveryapplications.

Inaddition,duringandbefore/aftercoldrecovery,aregularmonitoringplanofdrinkingwatershouldnot only include routinely done parameters by water companies, like ATP and HPC, but alsomandatorymonitoring of temperature sensitive opportunistic pathogens and their host protozoanspecies.

3.3. BUSINESS MODEL AND ACCEPTANCE FOR THE STAKEHOLDERS

Since the ‘cooling from drinking water’ system is a long-term investment, the business case wasbased on a total cost of ownership (TCO) comparison. The TCOof the drinkingwater coolingwascomparedtotheTCOofanextensionoftheconventionalcoolingsystemattheSanquinsiteoveraperiodof30years.

A ‘cooling from drinking water’ system has a higher initial investment than traditional coolingmachines:

• CAPEXfor‘coolingfromdrinkingwater’:€235/kW(thermalenergy)• CAPEX for traditionalcoolingmachines (cooling towers,drycoolersetc.):€110 -120/kW

(thermalenergy)

However, at the Sanquin site the ‘cooling from drinking water’ system has a better TCO thantraditional mechanical systems, even without subsidies taken into account. The details of theassessmentareasfollows:

• Cooling fromdrinkingwater system:Waternet connection, pump/heat exchangerbuilding,connectingpipingtobuildingWandATES2andupgradeofATES1.

• Reference system: additional 2 MW traditional mechanical cooling system, includingsignificant upgrades of the electrical grid + cabinets, and an increase of the centralizedemergencyelectricalpowersystem.

For the TCO of the ‘cooling from drinking water’ system, the following parameters and scenarioswerecharted:

Concludingly:

• Scenario‘Mostlikely’:the‘coolingfromdrinkingwater’systemisexpectedtoresultinaTCOof€5.4Mln.ThereferencesystemwillresultinaTCOof€8.04Mln.Thereforethe‘coolingfromdrinkingwater’systemhasapositivebusinesscaseof€2,64Mlnoveraperiodof30years(withouttheEUsubsidybeingtakenintoaccount).

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• Scenario‘Worstcase’:theTCOresultturnstoanegativevalueforthe‘coolingfromdrinkingwater’system(evenincludingEUsubsidy).

3.4. DISSEMINATION ACTIVITIES AND POTENTIAL ACTIONS FOR INCREASED TAKE UP BY

TARGET GROUPS

The cooling setup as implemented by Sanquin is dependent on two assets: the drinking waterinfrastructure(pipelinesnearbytheprojectsite)andaquiferthermalenergystorage(ATES).

FortheapplicationofATESsystems,boththeclimaticalandthegeohydrologicalconditionsmustbefavorable.SanquinbrieflyanalysedtheseconditionsandcametotheconclusionthatthereisamplereplicationpotentialinwesternandcentralEurope,seee.g.Figure9.

Figure9:ATESsuitabilityinEurope,source:Deltares

Overayear,theATESshouldremaininbalanceimplyingthat itneedstoberechargedwithcoldinwinter. When this condition is applied to regular conditioning of buildings (i.e. not for specificindustrialprocesses),thefavourableapplicationareaisagainovercentralandwesternEurope.

Sanquin did not report on the suitability of drinking water infrastructure for cooling throughoutEuropeorbeyond,butitisevidentthatuppertemperaturelimitsinthedrinkingwaterpipelineswillbemandatory,limitingtheamountofcoldthatcanpotentiallybeextracted(thisissimilartoe.g.theamountofheatthatcanbeextractedfromsewagesystemsinthecaseofriothermics).

Foranoverviewofallcommunicationanddissemenationactivities,werefertoCity-zenDeliverable5.14 - Implemented cooling and heating from public infrastructures in a pharmaceutical plant,Chapter3.

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3.5. SUMMARY AND FURTHER CONCLUSIONS

Coolingwithcoldfromdrinkingwaterpipelinesisalong-term,yetattractiveinvestmentcomparedtotraditional cooling solutions. Some technical boundary conditions must be fulfilled: the drinkingwatertemperaturemustnotbe increasedovercertain limitsbyextractingcoldandcoldstorage islikely to be needed to bridge periods when cold can not be taken from the water mains. Thesummary table created by Sanquin resumes well the comparison for the specific context of thiscompany(Table1Table3).Theadvantagesaremanymorethanjustabettertotalcostofownership.

Avoiding the noise caused by conventional cooling equipment is a major co-benefit, especially inurbanareas.

Thepointsneedingattentionaremainlyofatechnicalnatureandcanberesumedas:

• Even high quality drinking water can contain an unexpected amount of rust particles andotherdebris.ThedrinkingwaterinAmsterdamisamongthebestintheworld.Therefore,itwasunexpectedthattheheatexchangerscouldbeaffectedbyrustparticlesandgrit.

• Thebuilding for theheatexchangersandthe technical installationsshouldhavebeenbuiltmore spaciously. Prefabricating the installation was very efficient, but it imposed severelimitationsonthedimensionsduetothemaximumtransportsize.Inretrospectitmighthavebeenadvisabletoprefabricateand install the installation intwoparts,and intwoseparatebuildings.ThiswouldalsohavemadethemandatedsecurityseparationbetweenWaternet(thedrinkingwaterutility)enSanquineasiertomaintain.

CO2savingsareimpressive.Duringthemonitoringperiod(August2018–August2019)thetotalprocesscoolingwas6.587GJ.Toproducethisamountofcold,themechanicalcoolingwouldhaveemitted254tonnesofCO2.Instead,the“coolingfromdrinkingwater”systemproduced27tonnesofCO2:areductionof227tonnes,or89%.Oncetheproductiontargetof30.000GJ/yearismet,theCO2savingswillbeproportionallyhigher,namely1.030tonnesperyear.Thisiswithina10%marginofthepredicted1.100tonnes/year.

Furtheroptimizationsofthedesignarepossible.Itisfeasibletoproduceandinstallthe‘coolingfromdrinkingwater’systemmoreefficiently,forexamplebyseparatingthedesignintomodulesandbyusingrack-mountedequipment.Furthermore,steeringsoftwareupdatesprovedtobeessential.

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Table3:comparisonofcoolingsolutionsforSanquin.SEER=seasonalenergyefficiencyratio.

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It is not simple to introduce sustainable energy concepts in (large) institutions and commercial orindustrial companies for different reasons, as could be derived from the Sanquin case and thepreviousSchipholAirportprojectcancellation3:

• Themanagementmustbeopenfor,andconvincedof, themeritsofsustainableoperation.Establishedindustrialpracticesandroutinesmaycreateastrongbarrier.Innovationcomeswithrisksandtransactioncostswhicharedifficult tosell,particularly inhighlycompetitiveenvironments.Integrated,sustainableenergysystemsalsorequirelong-termandconsistentfacilityplanning.Thisgoesagainstcommonpracticeswhereenergystystemsareupdatedonanadhocbasisandremainsteeredbyshorttermneeds;

• SchipholAirportcancelleditsdrinkingwaterbasedcoolingprojectfornotfindingenoughprofitinit,andthisevenwithapositiveTCOcase.ThishappenedinparticularafterchangesoccurredinSchiphol’smanagement.Inthiscase,adifferenceinattitudecanalsobeobservedbetweenthepublicpartnerWaternet(acceptingalongtermapproachbasedonTCO)andtheprivatepartner(imposinghigherand/orshortertermprofitmargins);

• Largeinstitutionslikecitiesorbigcompaniesoftenhavetwofaces:agroupofinternalinnovatorssupportingpilotprojectsandanothergroupofbusinessasusualoperatorsresistingtoanychangesorrisk;

• Innewandcomplexsetupsthatlinkpartnerswhousuallydonotworktogether,creatingtransparencyandbuildingtrustareofparamountimportance.Thisholdsinparticularforthedevelopedbusinesscase(s).Convincedandmotivatedpeoplepullingtheprojectareneededfromalltheinvolvedparties;

• Industrial actors often pay (extremely) low prices for electricity and gas, which kills thebusinesscaseforalternativesetupsbasedonsustainableorrenewableenergysources;

• The water utility must in the present case behave as an energy company, providing cold(and/orheat).Thisrequirestheutilitytogobeyonditsregularcompetencesandoperationalcomfort zone. This implies that the management is willing to take up a new companymission, that the needed capacity is brought in and that the regulatory frameworks are(made)fitforsuchanextensionofcompetences.Othermarketplayersmaynotlikeoreventrytoobstructsuchchange;

• Windowsofopportunitymayopen.ThiswasthecasewhereSanquinreachedthetechnicallimitofitselectricityintakefromthegrid.Increasingthecapacitywouldrequireanewandexpensiveconnectionupgrade.Thiswasanadditionalincentiveforreoptimizingtheinternalenergymanagement. Thesameholds for theendof lifeofexisting installations,whereanopportunity emerges for introducing alternative equipment and longer-term strategies, orthemoment when buildings need a genereal retrofit and where the improvement of theenergy performance can be realized at a smaller additional cost, together with the otherrenovation works. These occurences aremore generally labelled as ‘natural moments ofchange’andmustbeseizedasauniqueopportunity;

• In enterprise, processes and people change continuously. When developing long term(energyorsustainability)strategies,thismustbetakenintoaccountandplannedfor;

• ProjectslikeCity-zenarefoundtobeanenabler:theydomakeadifference4.

3Theseobservationsweremainlycollectedfrom(1)theCity-zenFuckupNightinAntwerp,22.11.2018and(2)asitevisittoSanquinandaninterviewwithitsenergyconsultantMarkvanderRoyinAmsterdam,28.06.2019.4SuchechoscomealsofromtheCity-zenRoadshow,whereothercitiesarevisitedandurbanenergyscenariosaredevelopedthrough2+1weeksofintensiveworkshops.

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CHAPTER 4 – V i r tua l Power P lant inc lud ing End -to -End and Veh ic le - to -Gr id Smar t i f i ca t ion ,

ALL IANDER , Amsterdam

4.1. DESCRIPTION OF THE INNOVATION AND ITS RATIONALE

4.1.1. Rationale

Avirtualpowerplant(VPP)isanonline,centralizedplatformwhichmonitors,aggregates,stores,andredistributesenergy, inorder tomakeall the smaller componentsof theVPP together resembleatraditionalpowerplant.

Virtual power plantsmay become an essential building block for the electricity grid of the future.They facilitate the transition from a top down, centralized and mainly stationary production anddistribution system towards a dynamic, decentralized and peer-to-peer oriented prosumerconstellation,inthefirstplacebyhelpingtobalancesupplyanddemandwhenmuchoftheproducedenergycomesfromintermittent,renewableenergysources.

Thesupply-demandinbalancethatcouldbeviewedasaburdenonthegrid,canthusbeturnedintoanadvantageusingsmartgridsolutions.Localdistributiongridoperators(DSOs)cancollaboratewithenergysuppliersandcitizenstocreatevalueforallparties involved.Thegridoperatorcanbalancethe energy on the grid by using the flexibility of energy storage or demand response; the energysupplier can take on new roles and profit from providing energy and flexibility to the DSO; thecitizensbenefitfromlivinginacitydrivenbysustainableandrenewablepower,andtheycanprofitbybecomingactiveparticipantsintheenergymarkets.Thisassistssocietyinkeepingtheelectricitygridreliableandaffordableforallcitizens.

4.1.2. Overview description

The pilot was developed in the Nieuw-West district of Amsterdam. Nieuw-West is a diverseneighbourhoodwitholdandnewhousing,withandwithoutlocalsustainableenergygenerationsuchassolarpanels.Single-familyhomes,SMEsandapartmentbuildingscanbefoundthere.Thisdiversetest site makes the lessons learned during the project transferable to a great diversity of othermunicipalities.

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Figure10:AmsterdamNieuw-Westdistrict

Thevirtualpowerplant(VPP)pilotprojectinAmsterdamconsistsof3integratedparts:

• An ‘end-to-end (E2E) smartification’ of the local grid as a precondition for developing thesmartgridapplications;

• A ‘vehicle-to-grid (V2G) setup’ with 4 charging stations for electric cars that allow bothcharging the car and feeding back electricity into the grid from the car battery. In mostcurrent practices for car charging infrastructure, the second operation is not foreseen orevenmadeimpossiblebythecarmanufaturers;

• AndtheintegrationoftheseintoasmartgridsetupwithfurtherprovisionofPVandbatterycombinationsin50homes.ThewholeisthenmanagedbytheVPPcontrolsoftware.

Figure11:MapofAmsterdamNieuw-Westshowingthegridcomponentsandthelocationsofthe50VPPbatterysystemsplacedinresidences.

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4.2. DEVELOPMENT PATH

TheCity-zen smart gridproject started in2014.Afterdiscussionsaboutanddesignof thephysicalsetup, implementation started in 2017 andwas finished in 2018.Measurements and experimentswereexecutedin2017,2018and2019.

Thepilotwascomplexinnature;asetoftasksandobjectiveswasidentifiedtostructurethework,seeTable4.

Atthesametime,acitizenparticipationprocesswassetup.

Task ObjectivesSmartificationatbuildinglevel 50storagesystemsinstalled ICTmonitoringandcontrolplatform VPPindemonstrationSmartificationofmediumandlowvoltageelectricitydistributiongrid

DigitalizedGridsubstation

iNetimplementationIntegrationofelectricalvehiclesandvehicletogridtechnology

BidirectionalEVchargersandenergymanagementsystem

Designcriteriaanddecisionstrategy Platformused TestingandoptimizationMonitoringandevaluationofgridsmartification SmallscalestoragesystemsandVPP Flexibilityandbalancingattheneighbourhood

scale Impactofelectricalvehiclesandeffectsonthe

grid Impactofgridupdatesinlow,mediumandhigh

voltagegrid

Table4:tasksandobjectivesoftheAmsterdamCity-zenE2E-V2G-VPPpilot.

4.2.1. End to end smartification

The first step towardsa smartdistributiongrid isend toend smartification (E2E). Thismeans thatbetween the medium voltage (MV) substation at one end, and the energy connection of theresidencesattheother,thestatusofallgridcomponentsisknown.Thisshouldbedonebyplacingtheminimalamountofmeasurementpointsandequipmentinthegrid,whilestillacquiringallofthenecessaryinformation.

The City-zen E2E project showcased this approach in Amsterdam. Over 10.000 residences wereconnectedtothesmartgrid,usingover9.000smartmeters,13monitoredmediumvoltagestations(MVSs),and22monitoredlowvoltage(LV)mainlines,creatingoneofthelargestsmartgridsintheNetherlands.

Theresultsofmonitoringwereusedtoverifythepredictionsofastateestimationmodel,which isdevelopedtoaccuratelyestimatethestateatanypoint inthegrid.Themonitoringdatawerealsousedtoassesstheeffectoftheimplementationofavirtualpowerplantandvehicletogridcharging.

Themedium-voltage grid can thus be controlled remotely, resulting in optimal use of sustainableenergyandpreventionofpowerfailures.Thesmartgridincombinationwithsmartmeteringandthe

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smartcontrolsystemtechnologicallyenableshouseholdstotradetheirenergyviathevirtualpowerplant, and car owners to exchange energy with the grid in both directions using vehicle to gridtechnology.

4.2.2. Virtual power plant

The second smart grid solution applied is the virtual power plant (VPP). With this project, theparticipatingpartieswantedtolearnhowmoresustainableenergycanfitinadenselypopulatedcitysuchasAmsterdam.BygainingexperiencewiththeVPP, thebalancebetweensupplyanddemandcanbeincreased.

Over thecourseofoneyear, fiftybatterysystemswere installedona localandresidential level inAmsterdamNieuw-West. In theNieuw-Westdistrict, a largenumberofbuildingsandhouseshavesolarpanels.Whenmoresolarenergyisgeneratedthanused,thebatterystorestheenergylocally.This prevents overloadingof the electricity network and canprevent unnecessary costs to expandthegrid.Itthuskeepstheenergygridaffordableandreliable.Withthevirtualpowerplantitisalsopossibletotradesustainableenergyontheenergymarket.Thismakesitpossibleinthefuturetopayandreceivethetruepriceforenergy.Thisfinancialincentivecouldcontributetoenergysaving.Theproject distinguishes itself from comparable pilots by combining all three factors: home batterysystems,energytradingandtakingthecapacityofthelocalelectricitygridintoaccount.

TheVPPusecasestestedwithinCity-zenare:

• Tradingonenergymarketswiththecombinedcapacityofamaximumof50energystoragesystems;

• Localconsumptionoflocallygeneratedsustainableenergy;• Supportingthelocalelectricitygridthroughcongestionmanagement.

→ Trading on the energy markets

Anenergyaggregatorcanutilizealloftheenergystoragesystemstotradeenergyonthewholesalemarkets: the use of a homebattery allows for energy storagewhen electricity prices are low anddischargethebatterywhenthesearehigh.Asinglebatterysystemisnotpredictableenough,norisitlargeenough, to tradeon thewholesalemarket,which iswhere theVPP comes inbymanagingalargersetofhomebatteries.

Projectoutput:

TheVPPsuccessfullyfollowedpre-determinedtradeprofilesbycharginganddischargingthebatterysystems at the appropriate moments in time. In doing this, all battery systems acted as one bigenergystoragefacility,thusactingasatrueVPP.Sometimessmalldeviationsfromthedesiredprofileoccurred,mainlyduetoanimperfectself-reportaboutthebatterysystems’stateofcharge(SoC)andinaccuratepredictionsoftheenergysupplyanddemand.

→ Self-consumption of locally generated energy

AnotherusecasefortheVPP isusingmoreenergy locally.Thiscanbemotivatedbyadesiretobemoreenergyindependent,orbyfinancialmotives:atthismomentsupplyingsolarenergytothegridis subsidized, making it profitable to feed the energy into the grid. The Dutch government haspresented plans to change this in the early 2020s. It can then become profitable to use asmuchenergylocallyaspossible.Theuseofahomebatteryallowsforenergystoragewhenthelocalenergygenerationisabundant(whenthesunisshiningandtheresidentsaway)anddischargethebatterywhentheneedforenergyishigh(whenthereisnosunshineandtheresidentsareathome).

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Projectoutput:

The City-zen project hereby demonstrated that a VPP can be a valuable tool in increasing locallyproducedenergy.Inordertodothis,themeasurementsfromsolarpanels,householdenergyusageand batteries all have to be accessible separately. The battery system currently optimizes for thesolar yield and household demand of only the residence they are in. This means that the localconsumptionoflocallygeneratedsustainableenergycouldbeincreasedevenmoreifthesystemofbatteriesformingtheVPPoptimizedtheirlocalenergyuseonacollectivelevel.

→ Supporting the local electricity grid

The VPP was also connected to Alliander’s smart grid. This enables the DSO to examine if thebatteriesareabletosupportthelocalgridnetworkduringpeakmoments.IftheVPPcanbeusedinthisway,thismightprevent(additional) investments intheelectricitygridandensurethatthegridstaysstable,benefitingallthosewhousethegridandpayforit.Theuseofahomebatteryallowsforthebatterysystemstobedischargedwhentheloadonthegridislow,makingforastablebase-load,andchargedwhentheloadonthegridishigh,alleviatingthenewenergypeakscausedbythelocalenergygenerationfromsolarpanels.

Projectoutput:

TheVPPbatterysystemscansignificantlyimpactthegridloads.Thiscanbothincreaseanddecreasethebalanceonthegrid.Tradinglocallyonnationalenergymarketscanattimesincreasetheloadonthegrid,whenthebatteriesdischargeenergyeventhoughthe local solarenergysupply ishigh. Ingeneralhowever,thebatteriesintradingmodedischargewhenthegridloadislowonenergysupply,andchargewhenthegridloadishigh,thussupportingthegrid.

Figure12:SchematicoverviewoftheinformationflowbetweenallpartiesinvolvedintheVPP.Thesustainableenergysupplier(NeoSmart)gathersinformationfromtheEuropeanday-aheadenergy

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market(EPEXSPOT)prognosis,andmakesanenergyprofileforthenextdaybasedonthisinformationusingtheSympowersoftware,tooptimizeprofits.ThebalanceresponsiblepartyorBRP(ENTRNCE)sendsthisprofiletothedemand-responseplatform(REX)whichsendsinstructionstotheVPPinordertomatchtheprofiledesignedbytheaggregatorandthePVoutputascloselyaspossible.Inthemeantime,theDSO(Liander)gathersdynamicinformationaboutthesmartgridfromcongestionpoints,andcombinesthiswithstaticgridinformation.Theycanthensendasignaltothedemand-responseplatformincaseofemergency,sothattheVPPcanrespondtoalleviatepeakloads.

4.2.3. Vehicle to grid

Thethirdsmartgridsolutionisvehicletogrid(V2G)charginganddischargingofelectricvehicles.Thenumberofelectriccarsisgrowingrapidly.ThegovernmentoftheNetherlandshassetagoalofonemillionelectricvehiclesin2025,whichismorethan10%ofthetotalnumberofprivatevehicles.WithV2Gacombinationismadebetweenelectrictransportandtheneedforstorageofelectricityduringsustainableenergygenerationpeaks. The charging stationsmakeenergy stored in thebatteriesofelectriccarsavailabletothegridduringtimeswhentheenergydemandishigh.Thechargingstationisthereforenotanormalchargingstation,butabidirectionalchargingstation.Intimesoflowenergydemand, the cars canbe chargedasusual. Flexibleuseofenergy is amoreefficient solution thanadjusting the electricity grid so that more capacity can go through. This keeps the energy gridaffordableandreliable.

Within the City-zen V2G project four bidirectional charging stations were installed, two at publiclocationsandtwoatcommercial locations.Threedifferenttypesofcars,withseveraldrivers,usedthesechargingstationstochargetheirelectricvehicles,whileatthesametimethecarswereusedtosupportthegrid,tolowerthepeakloadofbuildings,andtotradeontheUSEFflexmarket.

Figure13:BidirectionalV2GchargingstationinstalledfortheCity-zenVPPpilot.

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TheV2GusecasestestedwithinCity-zenare:

• Supportingthelocalelectricitygridthroughcongestionmanagemento Usingstandardcharging;o Usingastandardizedloadprofile;o BytradingontheUSEF(UniversalSmartEnergyFramework)flexmarket;

• Enablingbusinessestosaveontheirconnectioncostsbylimitingtheirrequiredcapacity;• Self-consumptionoflocallyproducedenergy;• Supplyingemergencypower

→ Supporting the local electricity grid & self-consumption of locally generated energy

InasimilarfashionastheVPP,theV2Gsystemcanbeusedtoincreaselocalconsumptionoflocallygeneratedenergyanditcansupportthelocalelectricitygrid.Theself-consumptionmodeoftheV2Gsystem is abitmore advanced than thatof theVPP, because it alsoutilizespredictions about theenergyuseandsolarenergysupplyduring theday.Thesepredictionsare included in thesocalledgreen-followingmode,developedbyEnervalis.This is themodereferred towhenmentioningself-consumptionmodesinthecontextoftheV2Gproject.

TradingontheUSEF(UniversalSmartEnergyFramework)flexmarket

USEFdeliversthemarketmodel(2018)forthetradingandcommoditisationofenergyflexibility,andthearchitecture,toolsandrulestomakeitworkeffectively.Byprovidinganinternationalcommonstandard for smart energy, USEF unifies markets and ensures that projects and technologies areconnectedatthelowestcost.

Bydeliveringacommonstandardonwhichtobuildsmartenergy implementations,USEFconnectsprosumers, technologies and energymarkets. It is thebasis for an integrated smart energy futurethatisbothefficientandcost-effective.Theframeworkdefineseachstakeholder’sroleintheenergymarket,howtheyinteractandhowtheycanbenefitbydoingso.Withexistingdetailedspecificationsandreal-lifepilotsinthemarket,USEFisperhapsthemostcomprehensive,advancedinitiativeofitskind.

ThreemarketrolesfromtheUSEFframeworkareusedwithintheCity-zenproject:

• Prosumer:Theresidentialconsumerrole intheenergysystemischanging. It isnotunusualfor amodernhome to includemultiple smart appliances, smartmetering, electric vehiclesand solar panels. Home battery technologies are also maturing rapidly. All internet-connected,theseemergingtechnologiesprovideanopportunityforin-homeoptimisationofenergy,byavoidingordeferring itsuseunless it isabsolutelynecessaryand/ortheprice isright.Sellinganyexcessenergygeneratedorstoredcanalsoreapfinancialrewards.

• Aggregator: The aggregator bundles small flex assets (for example those owned by theprosumers) intoa flexibility volume,enabling (the tradingof) energy flexibility.USEFhelpsinterestedpartiestounderstandthenatureoftheopportunitythatthenewAggregatorroleoffers and provides the tools to act on it. It makes the boundaries of an Aggregator’sbusinessmodelclear,withoutlimitingopportunities.USEFdefinestheroleanddeliverstherelatedinteractionmodelsandsampletechnicalreferences.Thisisareparticularlyimportantwheretheroleisofinteresttocompaniesnotcurrentlyactiveintheenergymarketsbutthathaveexistingretailrelationshipsandexpertise.

• DSO:USEFhelps theDSOtomitigate riskandplayasmarter role in thesystem. ItdeliverseasieraccesstoProsumers’flexiblesupplyanddemandbymakingtheiractiveparticipationinthegridpossible.Thiscanbeusedtoalleviategridstressanddeferoravoidgridupgrades.Italsoencouragesprosumerrelianceonthegridbyprovidingthemwiththeopportunityto

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benefit financially. This reduces the likelihood of their defection as storage technologiesbecomemorereadily-available,makingself-balancingachievable.

Projectoutput:

Theresponsetimeandtimetoreachthemaximumpowerinalltestswaslessthanoneminute.Thismeansthatthesystemcanrespondfastenoughtoenablepeakalleviation.Themaximumchargingpowerreachedwasnottheratedpowerof10kWaswashypothesized,butthemaximumdischargingpower did approach the 10kW level. Both charging ánd discharging to the gridwere possible andcouldbeutilizedtoexecuteprotocolseffectively.

TheinfluenceofV2Gchargingisclearlydiscernibleonthegridload.ThismeansthattheV2Gsystemcan be used for peak load alleviation, thus supporting the local electricity grid. Simple peakalleviation algorithms, charging the cars during the solar peak and discharging them during themorningandeveningpeaks,wereexecutedsuccessfully,showingthatproactivepeakloadalleviationisalsopossible.

AprotocolforthiswasdevelopedusingtheUSEFflexframework.TheV2Gprojectenabledtradingon the USEF flex market. The desired load profiles were followed by the system in most cases,howeverdeviationsoccurredwhenthecarsbatterieswerefullorempty,orwhenthecarwasnotatthechargingstation.

TheV2G systemwas able to increase self-consumption of locally produced energy compared to asituationwhereno smart EV charging is present, by catchingpeaksof solar energy generation.Byfollowing a profile based on predictions about energy demand and supply, the EVs chargedwhensolar energy was being generated. The V2G system did not however provide any benefit over aregularone-directionalchargingstationintheseexperiments:itdidnotassistthelocalconsumptionofenergystoredinthebatterybydischargingattimeswhenenergydemandofthebuildingishigh.Thismeans that the goal of 10%more self-consumption thanwith regular smart charginghasnotbeenmet.

→ Enabling businesses to save on their connection costs

Thoseconnectedtotheelectricitygridhavetopayanannualfeeforthatconnection.Theheightofthisfeedependsonthepeakloadsoftheconnectedproperty.Ifonecanlowerthepeakelectricityonesuppliestoordemandsfromtheelectricitygrid, theconnectioncostscanbedecreased.Sincebusinesses usually have larger connection types, associated with higher connection fees, this usecaseisespeciallyrelevantforbusinessparties.

Projectoutput:

The car battery charges during the solar peak anddischarges during a peak in energydemand, asinstructed.There isavisible influenceonreducingtheloadsbyusingV2G(dis)charging,confirmingourhypothesis.Ourexperimentscouldnotconfirmthatthepeak loadofthebuildingwas loweredenoughandreliablyenoughtowarrantalowercategoryofgridconnectionforthebuilding.Intheseexperiments,justoneorV2Gchargingpointperbuildingwasused.Inthefuture,thenumberofV2G-compatibleEVsisexpectedtoincrease,enablingadditionalpeakreduction.

→ Emergency power supply

Intheeventofapowerfailure,alargeenergystoragefacilitycanactasanemergencypowersupply.IfthereisalargenumberofEVswithV2Gchargingcapability,thisfleetofV2Gconnectedcarscouldhypotheticallyactassuchanemergencypowersupply.ThisisthefifthandlastusecasefortheV2GsystemexploredintheCity-zenproject.

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Projectoutput:

TheV2Gsystemcanbeusedasanemergencypowersupplyintheory.Sincethelawsandregulationsof theDutchelectricitygrid tonotpermit this at themoment, this couldnotbe testedwithin thescopeofthisproject.Insteadatheoreticalexplorationofthepossibilitieswasperformed.Technicallyand theoretically, no barriers for using the V2G in this manner were identified. If and whenregulationsinthisarechange,thisusecasecanbeexploredfurther.

4.2.4. Citizen paticipation

Participants for theVPPprojectofCity-zenwere recruited fromtheAmsterdamNieuw-Westarea.Numerous information sessions, discussion evenings and City-zen workshops were organized torecruit,involveandinformpotentialparticipantsandothercitizenslivinginthearea.

→ VPP participation

MartenBoekelo,affiliatedtotheEnvironmentalPolicydepartmentatWageningenUniversity,carriedoutasocial researchamongtheparticipantof theCity-zenVPPproject.Belowaresummarizedhisfindingswithrespecttotheirmotivesandexperiences.

Anactiverelationshipwithenergy

Whenpeoplefirstgettheirsolarpanels,there isexcitementaboutgettingthepanels installedandaboutwhatthepanelswill ‘do’.Newdigital interfacesallowpeopletokeeptrackofwhathappensandpeopledosofrequently inthe initialperiod.Thefrequencyofcheckingalmostdailydecreasesafterawhile,butthisinitialperiodisnonethelesscrucialincementingadifferentrelationtoenergy.First, whilemost people stop checking frequently, they don’t stop altogether. For some people itbecomes a habit. Second, monitoring is a visceral experience – not a merely ‘informational’ or‘computational’process.Peopletalkofrecalibratingtheirsenses,fine-tuningtheirownimpressionofthe weather conditions with that day’s PV production. Close monitoring also produces a certainidentificationwith the solar panels – generating energywas compared tomaintaining a vegetablegardenandbringingintheharvest,asifoneisproducingtheenergyoneself.Third,keepingtrackofsolarpanelsisnotanisolatedactivity–itiscontagiousforotherdomainsofthehousehold.Formanypeople, installing solar panels turns out to be the beginning of paying closer attention to energyflows in theirhomesgenerally.Somemoveon tospecialistmeasuringequipmentdiggingdeep for‘energyleaks’,buteventhosewhodon’tstilllookoutforsignsofunwholesomeenergybehaviourintheir household (whether that be by machines or humans). In other words, people step onto atrajectorywhentheygetintoPV.

Thelogicalnextstep

Manyparticipants consideredCity-zenVPPa logicalnext stepon that trajectory. Intervieweeshadvarying ways to describe this trajectory. One thing that often came up in interviews is being orbecoming“conscious”.Peopleexpressedhopethatdigitalinterfaces(tiedtosolarpanels,householdbatteries,orenergyplatforms)wouldallowthemtobecomemoreconsciousofhowtheyconsumeenergy.Butitisalsobiggerthanthat:‘consciousness’sometimesoperatedasaglossforsomethinglike care, through which people acted as responsible members of society. Energy in other wordsbecomesadomaininwhichpeoplecancultivatesomestewardshipfortheir(or‘the’)environment.Thereissomevariationinhowpeopleimaginedtheirstewardshiporresponsibility–whetheritliesin greater energy autonomy, in reducing their footprint or lending their own small hand to theenergytransition.Whatisimportanttonotehereisthattheseeverydaymonitoringpracticesallowpeopletoexperienceandrealizethisrelationshiptoenergy.

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Financialaspects

Peopleenjoy theanticipationofmonetarygainsduring theyearandexperiencegratificationuponseeingtheirenergy‘savings’quantifiedontheend-of-yearbill.Yetpeopletalkedlessaboutthat.Thisisnotjustbecauseitwouldn’tbe‘sociallydesirable’totalkaboutmoney.Itrepresentsthestructureofpeople’s(evolving)experienceofthetechnology:insofaraspeopledidtalkaboutmoney,itwasaboutthephaseofdeliberatingwhetherorwhentogetthosesolarpanels.Assoonasthatmoneyisspent though, what remains is the story of calibration and consciousness, stewardship andautonomy,whichmonitoringservestomakereal.Thereweretwoexceptions:oneprogrammerwhoenjoyed crunching the numbers and onemanager who liked to think about businessmodels andbottom lines. For the others, there simply was no point in tracking (and thus, talking about)monetaryperformance.

TheCity-zenVPP

Ironically, while for many participants the VPP project was the logical ‘next step’, it wound upinterrupting the monitoring that constituted their relationship to energy. This happened in threeways.

Firstly,duetotheverynatureofthetechnology,whereabatteryiscontrolledbyathirdparty.Asaconsequence, energy from their solar panels would flow into the battery and then effectivelydisappear.Energywouldflowbetweenthebatteryandthegridinwaysthatwereunrelatedtothehousehold’senergyconsumption.Thismadethebatteryintosomethingofablackbox.

Secondly, the software interfacewith the battery didn’t help. Itwas notmadewith consumers inmindandwaspartly or largely unintelligible (or produced seemingly contradictory information forthose willing and able to take a closer look). Also, the interface was never meant to provideinformation about remote control actions, which could have provided some insight into how theenergyproviderwasinfluencingenergyflowsinandoutofthebattery.

Finally,theprojectexperiencedsomedelays,whichalsohaltedtheintendedmonthlynewsletterfora protracted time. As a result, participantswere kept in the dark aboutwhat – if anything –washappening with their mysterious batteries. All of this made monitoring quite difficult for theparticipants (evenas itdidopenupnewterrainsofobservation)andthussabotagedthe feedbackmechanismsthatallowedpeopletorefinetheirconsciousnessandaffirmtheirsenseofstewardship.

MainconclusionsforthesocialacceptanceandeffectivityofaVPP

It is important to note that aVPP is not inherently antithetical to the consciousness and sense ofstewardshipthatpeoplecultivatedovertime.However,itmaybemoredifficulttoresolvetensionseitherwithpeople’sdesireforenergyautonomyortheirdistrustofenergycompanies.Peoplemayfeelmore comfortablewith the idea of a community operatedVPP. Formany, the environmentalpitchoftheprojectwasunderstandableandrelatable:weneedtomakesurethatsolarpowerwillnotendupcannibalizingourenergyinfrastructure.Thesefindingsthereforeentailthefollowing;toattractVPPcustomers,theyobviouslyneedtoofferafinancialadvantage.Toretainthosecustomers,however,theywillneedtoputsustainedeffortinmakingtheVPPvisible:how–onadaily,monthlyandyearly level– itaccomplishes itssolutionforvariableenergy(throughmarkettransactionsandenvironmentalperformanceindicators),whatthecontributionoftheindividualhouseholdhasbeen(in termsofenergy capacityandvalue), andhowenergy flowsbetweenPVpanels, storagedeviceandgrid(tofeedpeople’sconsciousness).

→ V2G participation

V2Gisnotonlyanewtechnologyfortheactualparticipantsintheproject.Theneighbourhoodalsosharesintheexperience,becausethechargersarequitevisiblecomparedtoregularchargers.Itwas

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possible to gather some insights in the general perception and acceptance of the chargers. In thecity-zenproject, generalusageof the chargerwasprohibited,whichmighthaveaffectedotherEVdrivers at both the corporate locations and at the street level chargers. The experiences of thesedriversareunknowntotheproject.

AllianderaskedtheUniversityofAmsterdam(HvA) toshapetheusersurvey for theV2Gpart.Thepurpose of this survey was to find out the background characteristics of the participants, thebehaviouralaspectsoftheparticipants,whichmotivationstheparticipantshavetoparticipateinthetestandtoexplorewhichexpectationsandexperiencestheparticipantshaveregardingthetest.Alldriversofthe5electriccarsintheprojectwereapproachedtoparticipateinthissurvey.

V2Gdrivers:sustainableattitude

It has been shown that the motivation to drive an electric car mainly comes from sustainabilityconsiderationsandareductioninCO2emissions.Italsoappearsthattheinterestinsustainabilityandtheinterestinthetrialpersuadedtheparticipants.Forthesharedcaritisexpectedthatthebatterydegradationisfasterduetolesscarefuluseofthecars.Itcanbeconcludedfromtheresultsthattheuse of the car differs per respondent, but that all respondents declare to have the car almostcontinuouslyconnectedtothe(bidirectional)chargingstationandthattheyconnectthecaralmostimmediatelyafteraride.

Highleveloftrustinthetechnology

TheNewMotionappthatwasdevelopedtobeused incombinationwiththebidirectionalchargingstation was used very little by the participants. This has different reasons, according to theparticipants:theappwasdifficulttouse,notlogicalinitssettings,notintuitiveandnotuptodate.Also,accordingtoonedriver, itwasnotpossibletousetheapplicationwhentheconsumerhasanatypicalbehaviour(nocommutingtraffic).

Duringtests,theelectriccarswerenotalwayschargedat100%atthetimethecarsweregoingtobeused.Becauseusersof thePlug inHybrid vehiclesneedanalmost full battery tobeable to go towork and back, this caused a problem. In case of a hybrid car, the shortage of electricitymade itnecessarytousepetrolwhichwouldcosttheparticipantsmoremoneythandrivingelectric.Astateof charge below 80% caused the drivers to contact the Charge Point Operator and to check theNewMotionV2Gapp.Forthedriversthatusedasharedcartherangeanxietyandtheworriesaboutbattery degradation are lower, due to the fact that shared car users have a fleet of many carsavailabletothem.

AllinallonecanconcludethatforthedriversthatparticipatedintheCity-zenV2Gtest,theleveloftrust the participants had in the projectmanagementwas high enough to ignore any informationthatwasprovided in theapp.Thedrivershadno interest in thecharginganddischargingpatternsthatwere carriedout, as long as theywere able to drive to their next destinationwhenever theyneeded to travel. Once that prerequisite was in danger, the level of awareness of the pilottemporarilyincreased.

4.2.5. Opportunities and barriers – lessons learned from the Amsterdam VPP pilot case

→ General conclusions

Goodunderstandingofthelay-outofthelowvoltage(LV)gridisaprerequisiteforimplementingE2Esmartification efficiently. Without this accurate data, one cannot determine where to place themeasurementequipmentinthegrid.

Virtualpowerplants(VPPs)intrademode,tradingontheEPEXSPOTmarket,attimeshaveanegativeeffectongridbalancegiventhecurrentpricingmechanism.Thereareinstanceswhereenergyissold,

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and thus delivered to the grid, duringmoments of local energy generation. This can increase thepeakloadontheLVgrid.

Asignificantnumberofbidirectionalchargingstationsshouldbepresent inasectionofthegridtoobservetherealeffectsofusingV2Gsystemsasabalancingmechanism.Withalimitednumber,theprobabilityofunavailabilityofthecarsconnectedtothechargingstationsistoohigh.

Currently,nooff-the-shelf solutionsareavailable forE2E,VPPandV2Gapplications inbrown fieldsituations.

ThereliabilityofOT/ITconnectionsthrough4GandWi-FicommunicationnetworksusedforVPPandV2Gapplications is lowerthanthatof thegrid itself.Thereliabilityneedsto increasetomatchthereliabilityof thegridbeforeaVPPorV2Gcanbeusedaspartof thevital infrastructurebalancingloadsontheLVgrid.

Stateestimationisneededinordertobeabletodrawconclusionsaboutthecurrentsituationofthegrid.

Certain capabilities of both theVPP andV2G system cannot be utilized due to regulatory barriersand/orsectorstandards.ExamplesaretheuseoftheV2Gsystemforemergencypowerandtheself-consumptionofenergyusingtheVPPbyconnectingthebatteryandsolarpanelsofahouseholdtothesamephase.

ByusingtheVPPforenergytrading,basedonforecastsofenergyconsumption,PVsolargeneration,theenergypriceson theEPEXSPOTmarketand theavailabilityof thebattery,overallenergycostscanbedecreased.AlowdensityofVPPcontributorsintheLVgrid(lessthan5%ofresidenceswereequippedwithbatterysystems)showedlittleimpactonthegrid.

TheDSO isable toalleviatepeak loadson thegridbyusing small storage (battery) systems, if theDSOhas fast and reliablemeans to control theVPP/V2Gbattery systems through their operators.Thisispossiblewhenthebatteriesareoperatedinaninherentlygrid-supportingmodebythebatteryoperator,whenthereareadequatefinancialstimulitheDSOcanofferthroughtheenergyand/orflexmarkets, or if theDSO can overrule the settings of theVPP to ensure grid stability and prevent apoweroutage.

Finding and retaining participants for VPP and V2G projects is a time consuming task. Activeparticipation is requiredwhich is not alwayspossible in combinationwith thework-lifebalanceofpotential participants. In addition, participants sometimesmove or retract from the projectwhenchangesoccurintheirprivatelives.

→ Lessons learned about E2E

Goodunderstandingofthelay-outofthelowvoltage(LV)gridisaprerequisiteforimplementingE2Eefficiently. Without this accurate data, one cannot determine where to place the measurementequipmentinthegrid.

It isdifficult toknowonbeforehandhowmuchandwheremeasurementequipment is requiredtoenableE2E.Anaccuratestateestimationmodelisavaluabletooltogaintherequiredinsight.

CommunicationbetweenTSOsandDSOsisnecessarywhenimplementingE2Esmartification.

Currently, no off-the-shelf E2E solution is available. Various components and measurement unitsusedinE2Eareavailable,buttheirintegrationinabrownfieldsituationisnotreadilyapplicable.

Stateestimationisneededinordertobeabletodrawconclusionsaboutthecurrentsituationofthegrid.

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InameshedLVgrid,measurementandcontrolareextremelydifficulttoimplement,duetothefactthateachpointonthegridcanbereachedinmultipleways.

ThedimensionsofcomponentsusedinE2Earetoobig.Alotofspaceiscurrentlyneededtobuildinthesmartcomponentsofthegrid.NotallMVSscanaccommodatecomponentsofthecurrentsize.

→ Lessons learned about the VPP

Itwasquiteanadventure to findpeople thathadenoughsparespace in theirhouse forabatteryinstallationthesizeofa frigo,especiallyashousing inAmsterdam isverysharp. Moreoverpeopleneededtoagreetohaveapower linepulledthroughthehouse,which isnottheestheticallymosthappyitem.

Nooff-theshelfcomponentswereavailableforbuildingtheVPPthatmettherequirements,becauseofthelargediversityofinstallationsituationsinthehomesofresidents.

Virtualpowerplants(VPPs)intrademode,tradingontheEPEXSPOTmarket,attimeshaveanegativeeffectongridbalancegiventhecurrentpricingmechanism.Thereareinstanceswhereenergyissold,andthusdeliveredtothegrid,duringmomentsof localenergygeneration.This increasesthepeakloadontheLVgrid.

Measurement data from the VPP is transmitted correctly for about 95% of the time. This 95%reliabilitydoesnotmatchthehighstandardssetforvital infrastructure liketheelectricitygrid.Thecurrentnetworkhasastandardoflessthan0.01%failure.

ByusingtheVPPforenergytrading,basedonforecastsofenergyconsumption,PVsolargeneration,theenergypriceson theEPEXSPOTmarketand theavailabilityof thebattery,overallenergycostscanbedecreased.AlowdensityofVPPcontributorsintheLVgrid(lessthan5%ofresidenceswereequippedwithbatterysystems)showedlittleimpactonthegrid.

Thesinglephasebatterysystemsthatwereplaced intheresidencesarebydefaultconnectedtoadifferent phase of the 3-phase grid than both the solar panels and household energy usage. Thisoriginatesfromcurrentstandardsusedintheinstallationsector.Thismeansthatthebatterysystemcannotbeusedeffectivelytobalanceenergywithintheresidence;infactitappearedtoincreasethechargeonthegridratherthanrelievingit,asenergywasadditionallybeingcirculatedoverthegrid.This implies that adaptations are needed and that theremust be guarantees that installers knowabout the issues. One solution can be made at the level of the smart meter. Using a moreexpensive,3phasetypeofbatteryisanother,morerobustsolutionwhichispreferredbytheDSO.

The battery status that was communicated did at times not reflect the actual battery status,especially where the state of charge is concerned. Due to this mismatch, batteries often ignored‘discharge’-commands,becausetheywereatminimalSoCdespitecommunicatingotherwise.

Utilizingthebatterysystemstoalleviatepeakloadsonthegrid,whichwasthegoaloftheemergencysignal experiments, only works if the SoC of the battery systems is above 30% and below 90%.Outside of these boundaries, the battery systems cannot charge at full power. This becomesespecially apparentwhen the battery systems are in tradingmode, and then suddenly receive anemergency signal. Due to the energy trading, the battery systems are either too full or not fullenough,andtheemergencysignalthereforehasnoeffect.

→ Lessons learned about V2G

V2G can have a value in situationswhere there are congestion problems in the LV grid, due to asurplus of either energy demand or energy supply. This is only possible whenmeasurements areavailabletoassessthestateofthesystemaccurately.

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Hybridcarsalmostalwayshaveanemptybatterywhentheyarriveatthechargingstation,andarethusnotveryusefulforV2Ginsituationsinwhichimmediateresponseuponarrivalisrequired.

V2Bchargingcanoptimizetheenergybalanceatthebuildinglevel,decreasingthepeakloadofthebuilding.

Theavailabilityofenoughsuitablevehiclesintheneighbourhood,aswellassufficientmeasurementson thegrid, arepreconditions for the successful implementationof aV2G system that canhaveapredictableimpactonthegrid.

V2Grequiresahighdensityofcharginginfrastructureandavailablecarsifthegoalofbalancingthelocalgridistobereached.

Due to regulations the V2G system cannot currently be used to provide emergency power in theeventofapoweroutage.

Duringtheproject,manyissueswereencounteredinvolvingboththehardwareandsoftwareoftheV2Gsystem.Theprevalenceof thesetypesof issueshas todecrease forV2GtobecomeareliableservicetoboththeDSOandthecustomers.

Desiredchargingprotocolswereoftennotexecutedasexpectedordirected,foravarietyofreasons.Oneofthoseisthatthechargingstationstartsitsdefaultoperatingmode(fullpoweredcharginginthis case) as soonas a car is connected to the charging station, oftenbefore thedesiredprotocolstarts.

Due to the cost of bidirectional charging stations, and the necessary financial compensation fordrivers for providing flexibility, V2G charging is not financially competitive with other flexibilityoptionsatthismomentintime.

4.3. BUSINESS MODEL AND ACCEPTANCE FOR THE STAKEHOLDERS

4.3.1. Trading on the energy market with the VPP

Battery systems, communication modules and smart meters were placed in the homes of 48consumersduring2017andearly2018.With41consumers,asupplyagreementwasmadeforthesupplyofrenewableelectricity(andforsomealsoforthesupplyofnaturalgas,assomeparticipantspreferedtohaveonesingleenergysupplier).Theother7consumershadtroubleswitchingenergysuppliers, and functioned as a control group during the operation of the VPP. The renewableelectricitycamefromNeoSmart,whoensuredthattheelectricitydeliveredcamefromsolarenergygenerated locally in the Netherlands. This means that the project used sustainable Dutch solarenergy exclusively. The supply agreement was based on the no-more-than-usual principle, whichmeans that the consumers, just as before, receivedenergy at amarket conform fixed rateon thebasisofafixedadvancepaymentpermonth.Anytradeprofitswouldbesettledlater.

Ofthe41participantswhooptedforanenergysupplycontractwithNeoSmart,whichwasnecessaryfor the tradingmodeusedduring theVPPproject,onaverage4battery systemswerenotable toparticipateinthetrading.Thiswasbecauseoftechnicalorconnectionissues,orbecauseparticipantsweredissatisfiedwiththehighenergy(andfinancial)lossesofbatteryusageanddisabledthecontrolofthebatterysystembytheenergysupplier.IntheperiodfromApril2018toMarch2019theVPPwasactivelyoperatedinthistradingmode.

Thetradingmodemadeuseofpricedifferencesontheday-aheadenergymarket(EPEXSPOT).

Todetermineiftradingwiththeflexibilityofsmallstorageunitsresultedinlowerenergycosts,thecollecteddatawasanalysedforvariousscenarios.ItappearedthatusingtheVPPbatterysystemsfor

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trading on the EPEXSPOT energy market, based on forecasts of energy consumption, PV solargeneration,theenergypricesontheEPEXSPOTmarket,andtheavailabilityofthebattery, leadstoloweroverallenergycosts.

When increasing the number of VPP participants, the effects of individual decisions that do notmatch the desired steering protocols will be evened out by the combined effect of the othertransactions. Increasing the number of participants will increase the predictability of averagehouseholdbehaviour.

4.3.2. Economic aspects of V2G

For V2G in the public grid, the main interest is likely to be on the grid operator side (flexibilitydemand),wherecongestionmanagementandfrequencymanagementareimportfactors.However,V2Gcouldalsobeofinteresttoownersofafleetofelectricalvehicles,whocouldearnsomemoneybyoperatingtheirfleetasaflexibilityprovider(flexoffer).Theintermediaryactor,i.e.theaggregatorhas theability topursueotherdemand responseservices fordifferentactors in thepower systemand therefore potentially establishes competitive advantage in the V2G scenario. It operates in acompetitive privatized market and, therefore, competes with other aggregators. However, whenoffersforflexibilityaremade,theaggregatorisboundtofulfil itsacceptedoffersontheday-aheadmarketandtodeliverthecontractedcapacity.

ThepricedifferenceoftheV2Ghardwarecombinedwiththecostsofoperatingthem,comparedtoother availableoptions for reaching the samebusiness goal,will eventually determinewhetherornotV2Gwillbeinstalledandbywhom.

Because the number of bidirectional chargers in the pilot project was too small to lead to anysignificant conclusions, project partnersmade a theoretical simulation of possible profit scenarioswhenalargernumberofV2Gpointsisactive.

Resultantly, it isstilldifficulttodeterminewhetherthe investment inV2Gwillbecompetitivewiththealternativeformsofflexibility(includinggridreinforcement)available.Thetechnologyitselfisstillin its infancy with the inherent high uncertainty with respect to price development and lifetimeexpectancy.ForcommercialexploitationofV2G,thetotalinvestmentinV2Ghardwareplusservicesshouldbeequaltoorlowerthanthecostsofalternatives.

RewardingV2Gdriversforgridcongestionmanagementwillresultininequalitybetweenhouseholds,especially when the number of suitable EVs increases. This has to be taken into account whendecidingupona solution for flexibility.With respect toV2G,consumerswhocanafford toownanelectricvehiclewillbeabletoincreasetheirspendingbudgetthroughtheextraincomegeneratedbytheircar,comparedtootherconsumers.ThisdifferenceisbiggerinsituationsinwhichtherewardispaidforbytheDSO,becausetheextraincomegeneratedfortheprovidersofV2Gflexibilitywillthenbepaidforbyallconsumers.

AsituationinwhichtheDSOordersflexthroughV2Gthatisprovidedbyacommercialparty,suchasafleetofleasedorsharedEVshasfewerlimitations,becauseinthissituationprivateconsumersdonotbenefitdirectlyfromV2GsessionsandinequalityinnetDSOgridtariffswillnotexist.

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4.4. DISSEMINATION ACTIVITIES AND POTENTIAL ACTIONS FOR INCREASED TAKE UP BY

TARGET GROUPS

4.4.1. Communication and dissemination

TheE2E-V2G-VPPpilot inAmsterdamwasextensivelycommunicated throughabroadspectrumofcommunicationchannels.

Foranoverviewofallactivities,werefertothecombineddeliverableD5.7-D5.10-D5.11-D5.12-D7.4,chapter6.

4.4.2. Actions and potential for upscaling and replication - recommendations

TheCity-zensmartgridprojectinAmsterdamwith10.000residencesconnectedtoasmartgrid,50homebatterysystemsconnectedinaVPP,and4bidirectionalchargingstationsfunctioningasV2Gsystem, isoneof the largest in itskind. It tookplace inacomplex,urbancontext.Therearemanylessons to be learned from this project for upscaling this type of project in the same region or indifferent but comparable cities. The identified actions and potential for this kind of project arepresentedbelow:

• BeforeimplementingE2Eonalargerscale,itwouldbeusefultohaveoff-the-shelfsolutionsthatcanbeapplied indiversesituations.Becauseof thegreatvariation ingrid lay-outandcondition, an off-the-shelf solution is not currently possible in existing networks. In newnetworksthismightbepossible,andthereforeitisrecommendedtoexperimentwithE2Eingreenfieldsituations;

• Data clearing should be done before starting with E2E smartification to be able tounderstand thephysical grid layout.Goodunderstandingof the lay-outof the lowvoltage(LV) grid is a prerequisite for implementing E2E smartification efficiently. Without thisaccurate data, one cannot determinewhere to place themeasurement equipment in thegrid;

• Certain capabilities of both the VPP and V2G system cannot be utilized due to regulatorybarriers and/or sector standards. Examples are the use of the V2G system for emergencypowerandtheself-consumptionofenergyusingtheVPPbyconnectingthebatteryandsolarpanelsofahouseholdtothesamephase;

• Technical readiness level of components must be improved in order to use small scalestorage solutions (through VPP or V2G) in a reliable way to control vital infrastructure,especially in brown field situations. Improvements in the European and internationalstandardscanensurecompatibilityofthecomponentsinallsituations;

• The physical aspects of the components (batteries, inverters, charging stations) should betaken into account when designing the charge protocols, to prevent increased hardwaredegradationorfailure.Forexample,rapid(dis)chargingmightbeoptimalfinancially,butnottechnically;

• The reliability of the digital connections (for example 4G andWi-Fi) providing informationaboutandcontrolofthegridshouldmeetthesamestandardsofreliabilityasthegriditself:thehighstandards (less than0.01%chanceof failure)of thegridshouldbemet inallvitalinfrastructures;

• If the density of residents with home battery systems increases, this could cause majorproblems in the grid, potentially increasing peak loads on the grid. Regulations (legal,financial,ortechnological)areneededtopreventthis;

• Batterytechnologyshouldbeimproved,sothatthecommunicatedbatterystatusrepresentstheactualSoCstatusaccuratelyatalltimes,inorderforaVPPsystemtofunction;

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• ThedensityoftheVPPandV2Gcontributorsshouldbeincreasedtonoticetheeffectinthegrid.WhenincreasingthenumberofVPP/V2Gparticipants,theeffectsofindividualdecisionsthatdonotmatchthedesiredsteeringprotocolswillbeevenedoutbythecombinedeffectof the other transactions. For VPP this applies to the predictability of average householdbehaviour, and for V2G it applies to the average presence of cars at the charging station.ThereforeexperimentswithmorelocalusersoftheVPPandV2Gsystems(prosumersand/orEVs)shouldbeconducted;

• Bidirectional charginghardware shouldbe furtherdeveloped tobecomemore reliableandreadilyapplicable;

• The price of the V2G chargers should come down substantially to become competitive tootherformsofsmartchargingormoregeneralflexibilityoption;

• Withrespecttothecommunicationfromtheaggregatortothechargepointoperator,OCPPprotocolsforV2Gneedtobepublicallyavailableforinteroperabilityandsuccessfulscale-upofthetechnology;

• Different rewardmechanisms forVPPandV2Gparticipants shouldbe tested todeterminethefinancialvalueofthesesystems;

• Additional experiments with flexible pricing mechanisms should be conducted, to find asocialoptimumwheretheinterestsofgridoperators(DSOandTSO),consumersandsocietyas awhole are taken into account. It should in particular be avoided that V2G incentivesrewardthebetter-offownersofEVsandadditionallychargethenonEV-owners.Becauseofoppositeincentives,coordinationbetweentheTSOandtheDSOwillalsobeessential.

• During this project, there was no technical supplier as a consortium partner or as officialprojectpartner. It isrecommendedtoseekactivecollaborationwithasupplieroftechnicalcomponents.

Qirion,anAlliandercompany,isoneofthepartnersinvolvedinafollow-upprojectwithacommunitybasedVirtualPowerPlant(cVPP)whereprojectpartnerswillbuildonthelessonslearnedwithintheCity-zenproject.’https://duurzaamloenen.nl/community-based-virtual-power-plant-loenen/

4.5. SUMMARY AND FURTHER CONCLUSIONS

The E2E-V2G-VPP pilot project in Amsterdam delivered a wealth of experiences and insightsregardingthefuturedevelopmentofsmartgridsbasedonsustainableandrenewableenergyinput.

Although all of the experiments lead to the conclusion that the tested setups are viable, thepilotproject was of a too small scale to prove the full possibilities and potential of the demonstratedtechnologies.

Manybottlenecks,mainlyofatechnicalandregulatorynature,weredocumented.

Accurateknowledgeofthelocalgridsituation(thegridlay-out,quality,andwhetherornotthegridis meshed) is a prerequisite for designing end to end smartification solutions. There are manyobstaclestoovercomewhenconnectingVPPandV2Gcomponentstothisgrid:problemswithboththe technologyand thecurrent regulations,whichare focussedonhouseholdenergydemandandnotonhouseholdenergygenerationorstorage.

Currently, no off-the-shelf solutions are available for E2E, VPP andV2G applications in brownfieldsituations.ThisresultedinarelativelylowreliabilityoftheVPPandV2Gsystems,farlowerthantheminimum99.99%reliabilityofvitalinfrastructuresliketheenergygrid.Thiswaspartlyduetofaultsinthedigitalcommunication(through4GorWi-Fi)withtheVPPandV2Gsystems.Itthusremainstobe seen how the lower realiability of communication networks vis-à-vis electricity grids could beovercomeasthelattersetthereliabilitystandard.

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Mistakes in execution, lack of knowledge, software and communication problems, lack ofinteroperabilityandmisalignedalgorithmspointtowardsagenerallackofcapacityorpreparationinthe building and installation sectors, as well as the toothing diseases characteristic of theintroductionofnewtechnologies.Herebythecomplexityofthesmartgridsetupsincreasestheerrorprobability.

Thesocialacceptanceofthepilotprojectscanbejudgedoverallpositive.Herebyonemusthowevertake into account that an interested group of volunteers was engaged for collaboration in theexperiments,andthatapartfromtheV2Gchargingstationswiththeirvisualandauditiveimpact,noother significant factorswere affecting the environmental and livingquality of theneighbourhoodresidents. EV chargers were, even so, considered as an asset to have rather than a form ofdisturbanceinthestreetscape.Neighbourhoodresidentswoulddefendthechargingpointstowardsindividualswithanegativeopinion.

ParticipantsintheVPPpilotwererecordedtohavebecomemoresensitiveandengagedabouttheirenergybehaviour. Costsof interventionwouldnomorebeamatterofconcernordiscussionafterintallation.Thisechoesanaspectthatisfoundincasestudiesofinvestmentinenergyefficiencyaswell:paybacktimeandenergysavingsinmonetarytermsareoftennotthemainconcernorpriorityand itmay evenbe suspected that, also for energy efficiencymeasures such as building enveloperetrofit, the financial rentability concern is there before investment, and then dissipates once theinvestmenthasbeendone– thenew situationenters into the ‘normal’. Increased comfort andahigherrealestatevaluemaytherebyhelptofurtherjustifytheinvestmentinthisnewnormal,withnofinancialregrets.

Whenthesmartcontrol fromoutsideentersthestory, itmay jeopardizetherelationofthecitizenwith ‘his/her’ energy. By conclusion, transparancy about what ‘the grid’ is doing and why, isimportant in order to keep the confidence and engagement of the end user. In this sense acommunityVPPmaydelivermoretrustthanonesetupbyadistantenergycompany.

BusinessmodelsforVPPandV2Gareinasomehowprematurestatus,andalsoherethesmallscaleofthepilotspreventedclearconclusionsfrombeingderived.

Bytradingontheenergyandflexmarkets,smartgridsolutionscanbalancethegrid.TradingontheEPEXSPOTmarkethowevercouldalsohavetheoppositeeffect,attimesincreasinggridpeakloads.Byconsequence,businessmodelsneedtobedesignedandimplementedwithcare:iftheyenvisagemereindividualprofitmaximisation,theoutcomebehaviourofthehouseholdinstallationsmayleadtoadditionalchargesonthegridratherthanrelievingitscongestion.

Considerations of social justice imply that future business models shall avoid that the profits ofprovidingenergyflexibilitygotothosehouseholdsalreadyinabetterthanaveragefinancialcapacity.Thiscanindeedbethecasewhereallgriduserspayfortheflexibilitybeingprovidedbyaminorityofthehouseholdsinpossessionofbatteriesand/orelectriccars.

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CHAPTER 5 – Communica t ion

TobereplacedbyTh!nkEinput

Eventuallyaddlastchapteronreferences

5.1. AVAILABLE COMMUNICATION TOOLS

5.2. SCIENTIFIC PAPERS AND OTHER PUBLICATIONS

5.3. MEDIA COVERAGE AND EVENTS

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L I S T O F F I G U R E S

Figure1:newALECoffices,Grenoble.....................................................................................................9

Figure2:technicalsetupoftheinstallation.........................................................................................10

Figure3:viewonthePVplantandthebatterywithitssideequipments............................................11

Figure4:businesscaseforaPV+batterysetupinFrance,ROIversusinvestmentandinsurancefee.14

Figure5:ROIvsinvestment,electricitypriceevolutionandselfconsumptionrate.............................14

Figure6:Processflowdiagram‘coolingfromdrinkingwater’..............................................................18

Figure7:TotalthermalenergyretrievedweeklyfromdrinkingwaterandATES-02,andCOP.Totalelectricity:127.368kWh,totalthermalenergyWaternetside:10.965GJ.TotalthermalenergyfromATES2:6.382GJ...................................................................................................................19

Figure8:installationoftheprefabricated,mainheatexchangingunit,undergroundandatthelimitsofaparkinglot..............................................................................................................................21

Figure9:ATESsuitabilityinEurope,source:Deltares...........................................................................23

Figure10:AmsterdamNieuw-Westdistrict..........................................................................................28

Figure11:MapofAmsterdamNieuw-Westshowingthegridcomponentsandthelocationsofthe50VPPbatterysystemsplacedinresidences....................................................................................28

Figure12:SchematicoverviewoftheinformationflowbetweenallpartiesinvolvedintheVPP.Thesustainableenergysupplier(NeoSmart)gathersinformationfromtheEuropeanday-aheadenergymarket(EPEXSPOT)prognosis,andmakesanenergyprofileforthenextdaybasedonthisinformationusingtheSympowersoftware,tooptimizeprofits.ThebalanceresponsiblepartyorBRP(ENTRNCE)sendsthisprofiletothedemand-responseplatform(REX)whichsendsinstructionstotheVPPinordertomatchtheprofiledesignedbytheaggregatorandthePVoutputascloselyaspossible.Inthemeantime,theDSO(Liander)gathersdynamicinformationaboutthesmartgridfromcongestionpoints,andcombinesthiswithstaticgridinformation.Theycanthensendasignaltothedemand-responseplatformincaseofemergency,sothattheVPPcanrespondtoalleviatepeakloads.......................................................................................31

Figure13:BidirectionalV2GchargingstationinstalledfortheCity-zenVPPpilot...............................32

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L I S T O F T A B L E S

Table1:opportunities,barriersandsolutionsidentifiedbytheprojectpartnersattheoutsetofthedemonstratorimplementation.....................................................................................................12

Table2:businesscasefactors...............................................................................................................14

Table3:comparisonofcoolingsolutionsforSanquin.SEER=seasonalenergyefficiencyratio.........25

Table4:tasksandobjectivesoftheAmsterdamCity-zenE2E-V2G-VPPpilot......................................29