funded by: european union smart/intelligent ... - wade thai...world alliance for decentralized...
TRANSCRIPT
Funded by:
European Union
Smart/Intelligent Grid Development and Deploymenti Th il d (S t Th i)in Thailand (Smart Thai)
Smart Grid: Fundamentals and Benefits
Mr Sridhar Samudrala – Asia - DirectorMr. Sridhar Samudrala Asia - DirectorWorld Alliance for Decentralized Energy (WADE)
19th July 2012yPEA Building 4, 5th Floor, Theater Room
Smart Grid Fundamentals and Benefits
Thailand July, 2012 Sridhar Samudrala – Asia - Director World Alliance for Decentralized Energy (WADE) Edinburgh, Washington, Canada, China, India
Smart/Intelligent Grid
The Electric Power Research Institute (EPRI) has estimated the cost of building a Smart Grid at over $165 billion over the next two decades – approximately $8 billion per year
Global Electricity Sector Investment over next 3 decades i.e, 2020-30 US $ 10 Trillion: 60% of total energy investment Three(3) times higher than investment in the electricity sector during past 30 years
"We're sitting on an aged, old infrastructure while emerging countries like India and China are moving to the next generation of networks and generation sources." --Brad Gammons, vice president, IBM global energy and utilities industry group
US $ 5.5 Trillion on T&D -- Approximately 30% on Transmission and rest to Distribution (smart Grid)
Planned and proposed deployments of smart meters in United States
150+ million meters by 2020
45% of U.S. households
• China tops the development and investment made in smart grid followed by US. US had federal investments of $7.1 billion for the year 2010 for development of smart grids
• However China’s total investment in electricity generation for 2010 had been $48 billion whereas that on smart grids had been $56 billion indicating that government spending in smart grids exceeded the investments in electricity generation
• Renewable energy continued to drive venture capital investment into the power sector of US
• Around $1.8 billion in venture capital had been invested in the Smart Grid sector between 2005 and June 2010 in US
Top Ten Smart Grid Federal Stimulus Investments by Country, 2010
In U.S. D. Million
Source: Reports and articles, research and analysis
Existing Grid
Centralized Grid
Only 1/3 of fuel energy converted to electricity
Waste heat is not recovered (over 30% lost)
Up to 8% is lost along transmission lines
US, 20% gen capacity exists to meet peak demand only (i.e. 5% of time at 4 X cost)
Distribution – up to 45% losses in developing countries
Distribution Network
Substations
Transmission System
Central Generation
L1 L2
Lm Ln
Customer Loads
L1 L2
Lm Ln
L1 L2
Lm Ln
L1 L2
Lm Ln
Smart Grid - Definitions
Smart Grid - umbrella term - combination of technologies, approaches, and processes.
Informed, involved, and active consumers - demand response and distributed energy resources.
Many distributed energy resources with plug-and-play convenience focus on renewable
Mature, well-integrated wholesale markets, growth of new electricity markets for consumers
Power quality is a priority with a variety of quality/price options - rapid resolution of issues
Greatly expanded data acquisition of grid parameters - focus on prevention, minimizing impact to consumers
Automatically detects and responds to problems - focus on prevention, minimizing impact to consumer
0
10
20
30
40
50
60
DE as a Share of
Total National Power Generation
Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2011).
World Average is 9% - Where are you?
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US map showing deregulation of energy market • Deregulated electricity facilitates energy consumers to buy their
energy from multiple retail electric providers instead of just one monopoly company
• The Public Utility Regulatory Policies Act passed in 1978 laid the groundwork for deregulation and competition by opening wholesale power markets to nonutility producers of electricity
• Energy Policy Act of 1992, lately implemented by Federal Energy Regulatory Commission (FERC) in 1996 also supported deregulation, promoting greater competition to bulk power market
• US energy market moved from regulations that set rates for electricity to an increasingly deregulated industry in which prices are determined by competitive markets hence leveling out the power rates
• It also proved beneficial in creating job opportunities apart from improvement in service quality and reliability
• However, deregulation also witnessed merging of investor-owned electric utilities (IOUs) in record number because of competitive pressure which in turn resulted in increased operational efficiency
Power Sector in US
Today s Grid
Future Grid
Customer Domain
Advanced Metering -- Smart Meters (single phase and poly-phase meters), 2-way communications, interface to enterprise applications
Transmission/Distribution Automation -- Fault Detection, Isolation, Restoration, Integrated Volt/VAR management, including switch/cap controllers, switched capacitors & voltage regulator
Substation Automation -- Substation controller and transformer monitoring and diagnostics
Distribution Operations -- Demand Side Management and Outage Management software & interface to existing applications, and control center optimization
Utility Enterprise Applications -- Electric, Gas & Telecommunications utility geospatial based applications, Demand Side Management application, and advanced analytics & visualization
Customer sector - Smart metering, Critical Peak Pricing, smart energy management customers
Smart Grid s Building Blocks
Germany: upgrade grid
Germany -- positive impact on the European smart grid landscape. Berlin unveiled its ambitious energy strategy. Build an energy portfolio based on renewables and nuclear – and without NUCLEAR and natural gas- it also includes an action plan for a revamped infrastructure.
Germany 3500 km of new high-voltage power lines - Create a platform between public and private actors, to increase reactivity towards possible planning problems
Create incentives to facilitate the construction of new energy facilities
Create awareness about the important role a new grid plays in the green energy context
Getting to a binding ten-year agreement with the network operators for the modernisation of the network
If decisions over large infrastructure are not taken by the local and regional authorities within four years, a referendum could be organised to get the final answer.
Germany Demand-side management
2008 - EnBW and its subsidiary Yello Strom have introduced consumer energy portals aimed at allowing users to view and manage their consumption more effectively. 1/3 customers cut their electricity consumption by more than 10%.
Vattenfall s Berlin pilot of 10,000 homes centres on providing meter readings, historic energy consumption data and forecast usage through a variety of display channels (TV, iPod Touch, iPhone). Usage can be displayed by day, week, month or year.
The E-Energy Model City of Mannheim (MoMA) demonstration project is testing an automated solution for home energy management. The so-called Energy Butler can turn on electrical appliances automatically when energy is cheapest (in the off-peak period, or when there is plenty of renewable energy available).
Denmark Smart Grid has additional social costs of approximately DKK 1.6 billion
in contrast to DKK 7.7 billion in a traditional grid expansion scheme.Socioeconomics in DKK billion
Smart GridTraditional expansion
Investments Benefits TotalInvestments Benefits Total
Smart Grid investment in detailPresent value in DKK billion
Smart Grid investment in detailPresent value in DKK billion
Metering and control softwareMetering equipment in the grid and at consumers’ premises Control electronics at consumers’ premisesReinforcement of distribution networkFacilities for ensuring system stability
Savings in regulating power and reservesSavings in electricity generationSaved costs for energy-saving initiatives
Denmark
Socialdevelopment
Heat pumps increasingly replace oil and stoker burners outside natural gas and district heating areas, and the first commercial launch of electric vehicles takes place
Heat pumps are well on their way to becoming the preferred form of heating outside natural gas and district heating areas, and the sale of electric and plug-in hybrid vehicles has begun to take off
Heat pumps are the preferred form of heating outside natural gas and district heating areas, and electric and hybrid vehicles are commonplace on the streets
Objective� • Motivation and involvement of rele-vant players
• Agreement about standards• Accumulation of experiences
• Establishment of the fundamental platform/ infrastructure
• Expansion of commercial solutions• Ongoing further development of
system and solutions, and the lim-iting of transaction costs
• Balancing of the power sys-tem aided by Smart Grid func-tionality
• Further development and ex-pansion of the range of Smart Grid-related services and so-lutions
Key activities • Determination of the necessary standards for communication and data models with an international outlook and compatibility
• Determination of roles and respon-sibilities for TSO, grid companies and commercial players
• Adaptation of necessary legislation, financial regulation and regulations
• Implementation of pilot testing and adjustment of both consumer-ori-ented and technical solutions
• Development of a tariff model that counteracts overloading of the distri-bution network
• Accumulation of further expe-riences nationally and interna-tionally
• Formation of Smart Grid market mechanisms, eg ancillary ser- vices, tariffs, integrated price for-mation, etc.
• Implementation of Smart Grid functionality in the power grid
• Penetration into the consumer market with the first wave of com-mercial Smart Grid-based services and solutions
• Adjustment of market rules and regulations
• Widespread distribution of Smart Grid-based solutions to the majority of consumers with heat pumps and/or elec-tric and hybrid vehicles
• Optimisation of system and grid operation concurrent with widespread use at the con-sumers’ premises
• Adjustment of market rules and regulations
Phase 1 Facilitating phase(2010-2012)
Phase 2 Establishment phase (2013-2020)
Phase 3 Commercialisation phase (2021-)
UK government estimates to save GBP 2.5 to 3.6 billion in 20 years from smart meter installation
Households save up to GBP 80 off their electricity bills in a pilot in England.
People using smart meters reduced their electricity usage by up to 21% in an Epson program.
Existing and Future Grids
Traits
Existing Transmission and
Distribution System Future Smart/Intelligent Grid Systems
Loss
Reduction
Limited ability to address problem of high transmission and distribution losses.
Limited control for distribution companies
Prevents disruptions, minimizes impact, more customer participation - better energy management and energy
accounting, leakage can be detected quickly and prevented
Peak
Reduction
Reactive approach - Utilities tend to purchase costly power during peak hours
Grid technology enable utilities to reduce purchase of costly power and maintain grid discipline
Integration of
DG
Grids designed for one way flow -- Clients who have capacity to inject power into grid
are limited by utilities and regulations
Allows individuals to generate onsite power and feed into grid without raising reverse flow reliability and safety issues. Best
for DG and renewable
Reliability of
Supply Post breakdown repair Self healing. Power quality a priority
Consumer
Benefits
Little customer participation - due to price visibility and difficulty of determining
price Customers can optimize the monthly bill
Rural
Outreach Still an issue -- high cost for placing transmission and distribution lines
Micro Grids and efficient use of available power supply will pave the way for increasing rural outreach without large
investment in T&D
Quality of
Energy s Future Vision
Bio fuels
Plug-in
H2
Zero Energy Home
Distributed Utility
Fossil Fuels
Solar
Nuclear
Wind
i
Lack of natural gas pipeline networks
Regulatory restrictions in the implementation of energy plants in commercial complexes and buildings based on zoning
Tariff setting does not reflect the cost of fuel
No standardization of DE
Net metering and Connection charges
Difficulties in funding (investors and lenders) the projects
Difficulties in getting public acceptance
Lack of centralised organisation providing coordination, information, training or services
Lack of awareness and knowledge on climate change issues
Barriers & Challenges
Local, Mini- and Micro-Grids
Distributed Generation can offset some of the losses and eventually costs – can save up to 8-12 % per year that equals to about $ 26 per month Avg. bill. This is not much but adds to the whole.
Renewable (solar, wind and micro hydro play a vital role)
Local distribution systems are connected to the regional networks, and through that to the national electric backbone. Power from distributed energy facilities flows to and from customers and into the regional network, depending on supply and demand conditions.
Real-time monitoring and information exchange still not available - this will enable markets to process transactions instantaneously and on a national basis.
Customers do not have the ability to tailor electricity supplies to suit their individual needs for power, including costs, environmental impacts
Cost & Savings
Savings of 10-15% - distribution losses. Save $500 billion in investments in the next 20 years by offsetting construction of new infrastructure that would otherwise be needed to meet load growth in Asia. NEGA WATTS
New technology automatically lower the settings on home appliances, triggered by signals sent by utility companies over the Grid. consumers are willing to have utilities remotely dial down the appliances to lessen the load on the grid and reduce consumption.
Remote gateway device use - powered by systems integration software- enable energy companies and customer homes to communicate with one another. The device relies on broadband Internet connection to receive pricing information from the utility, which is transmitted wirelessly to a smart meter.
One impediment to widespread Smart Grid usage is cost. To implement the technology in a single home can cost a utility company between $500 and $1,000 in USA. Will Customers Pay???
Clean power sources such as wind and solar still technical challenges -- can be better incorporated with upgraded equipment.
SUMMARY - Strategies to make a smarter grids an attainable goal
Smart Grid/DE is a win-win for the power sector;
DE combined with Smart Grid has great potential to reduce CO2 emissions and reduce overall costs of supplying power;
DE/Smart Grid can provide energy access for those in rural areas and developing countries;
New fuels like Hydrogen will play a major role;
Develop New Regional Transmission Plans to Bring Renewable Power to Market;
Create New Incentives for Investments in Smart Grid Technologies.
