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Legal and Economic Instruments forEnvironmental Policy
Dr. Martin Wickel L.LM, Dr. Cathrin Zengerling L.LM, Ph.D. Irene Peters
- Renewable Energies -
Electricity Grids
by Benedict Adcock, Dave Huntington, Gabriel Niessen and Heather Troutman
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
electric lineNew York
1890
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
electric lineChidambaram, India
2014
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
global light pollution / grid structure
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
India
national grid
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
USA
national grid
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Germany
national grid
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
AC – alternating current_ the flow of electric charge periodically reverses direction_ commonly used_ for shorter distances
HVDC – high-voltage direct currentmore economical for longer distances _
less losses _well suitable for underwater-installation _
AC / HVDC ACsimplified grid
generation
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
nationaltransmission
distribution
regional
local
potential plants
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Germanyfuture situation
high demand
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
planned development of the German grid
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
power exchangesin Europe
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
electrical interconnection in Europe
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
ProjectDesertec
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Future grid?
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Distributed Generation
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Distributed Generation (DG)
• DG systems are made of one or many ‘Distributed Energy Resources’ (DER)
• DER are small-scale and modular devices, and consist of both fossil and renewable energy technologies
• DG systems are located close to the load (end-use customer) and usually have a capacity of 10 MW or less
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
History of DG
• DG is not a new phenomenon, but its inherent threat to centralized electricity grids and utility pricing models is
• Today, centralized grids have become the main driver of customers’ energy costs and electricity reliability or quality problems
• Efficiency gains no longer come from connecting new centralized power plants to the grid, but rather by locating smaller DG systems nearer to the demand
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
• The IEA notes 5 major factors contributed to the evolution and growth of DG– New technology developments– Constraints on the construction of new
transmission lines– Increased customer (primarily commercial, but
also residential) demand for reliable electricity– Liberalization of electricity markets– Concerns about climate change
Distributed Generation (DG)
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Why DG?
• DG offer solutions to blackouts, energy security concerns, power quality issues, tighter emissions standards, transmission bottlenecks, and the desire for greater control over energy costs
• DG reduces the amount of energy lost in transmitting electricity long distances
• DG is promising in countries with remote regions not presently connected to a centralized grid
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
IEEE 1547 Standard
• Industry standards for interconnecting DG systems to the existing grid and utility systems– Covers safety, performance, installation,
operation, and synchronism.• In 2005, the Energy Policy Act established IEEE 1547
as the national standard in the U.S.• In Europe, many national regulations set standards– In Germany, VDE-AR-N 4105 for low voltage and
BDEW-2008 for medium/high voltage
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Policy Instruments
• City of Vancouver (Canada) requires developers of any large tract of land to complete feasibility study of “district energy”
• State of Colorado (U.S.A.) enacted a law requiring by 2020 that 3% of power generation utilizes DG
• States of Louisiana, Idaho, and California have rejected calls to impose taxes on solar users
• Germany introduced an incentive program aimed at on-site self-reliant DG systems
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Distributed Generation (DG) Questions
• Does it make sense to accelerate the development of new high-voltage transmission lines that reinforce a centralized model of electricity delivery?– Should we pursue distributed solar on homes
instead of centralized, utility-scale solar plants?• Solar users drain revenue while continuing to use
utility transmission lines for backup or to sell their power back to the grid. How can utilities pay for necessary maintenance and upgrades of the grid if this “free ride” continues?
A microgrid is controlled by a supervisory controller
that decides which microgrid energy resources to use at
what times in order to balance load and generation. This
microgrid controller may take into account predicted
load profile, predicted power price profile, predicted
wind or solar power profile, predicted heating or cooling
needs (if the microgrid contains cogeneration),emissions and other parameters. The microgrid
controllermay also change the operating modes of power
resources, provide power setpoints to resources, or
regulate droop characteristics.International Renewable Energy Agency (IRENE) (2013) Kempener, et al. Smart Grids and
Renewables: A Guide for Effective Deployment (p. 35) Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Microgridssmall-scale electricity networks capable of
isolation from the centralized electricity system Island mode
• Micro-grids covering 30–50 km radius• Small power stations of 5–10 MW • Generate power locally to reduce dependence and electrical energy
lossesSources: http://galvinpower.org/microgrids, http://en.wikipedia.org/wiki/Distributed_
generation#Microgrid, http://www.rmi.org/nations_largest_microgrid_online_esj_article
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Reasons for Microgrids
• More efficient use of renewable energies such as photovoltaics, wind turbines, and fuel cells, biomass powered generators, and combined heat and power plants (CHP)
• microgrids can ensure continuity of power to critical infrastructure such as military bases, hospitals, schools and emergency services.
• Customer need for more reliable, resilient, and sustainable service
• Electrification in remote locations and developing countries
http://www.microgridinstitute.org/about-microgrids.html http://www.rmi.org/nations_largest_microgrid_online_esj_article
The International Energy Agency (IEA) estimates that to achieve its
goal of universal access to electricity, “70% of the rural areas that currently lack access will need to be connected using mini-grid or
off-grid solutions.”World Energy Outlook 2011
Energy for All: Financing Access for the Poorhttp://www.iea.org/papers/2011/weo2011_energy_for_all.pdf
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
1. Transmission networks allow energy from offshore wind farms to travel great distances.
2. Fossil power plants operate with greater efficiently thanks to enhanced management between peak and off-peak periods.
3. Solar farms located in sunnier regions contribute energy to the grid.
4. Decentralized combined heat and power (CHP) plants supplies both industrial companies as well as residential and commercial buildings with energy, while excess energy is fed back into the grid.
5. Industrial and process automation functions efficiently and productively. Energy management and smart devices make it a “smart factory”.
6. Substations and distribution networks facilitate low-loss power transmission, even over long distances.
7. Computers process data from electronic meters and control energy generators and consumers. The control logic ensures the possible site for the balance of electricity supply and removal: in a street, in the local network or on the distribution network.
8. Smart meters and comprehensive building management systems increase efficiency in residential homes.
9. Smart grids and building controls also improve the energy efficiency of commercial buildings.
ABB in Germany: Smart Grid (Press Release) 14.04.2010 [Onlinehttp://www.abb.de/cawp/seitp202/77a7e74be1ea8904c12577050030ab14.aspx [Accessed:
13.11.2014]
Overview of the „Modern“ Electricity Grid
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
ABB (2010) Review (1)10 [Online] Smart Grids. [Accessed: 13.11.2014] http://www.poweranswercenter.com/83 Benedict
AdcockHeather Troutman
Dave Huntington
Gabriel Niessen
ABB (2010) Review (1)10 [Online] Smart Grids. [Accessed: 13.11.2014] http://www.poweranswercenter.com/83 Benedict
AdcockHeather Troutman
Dave Huntington
Gabriel Niessen
ABB (2010) Review (1)10 [Online] Smart Grids. [Accessed: 13.11.201 http://www.poweranswercenter.com/83
Controls
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
http://www.terrapass.com/science-technology/demand-response/
Managing Appliances
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
http://www.mpoweruk.com/electricity_demand.htmBenedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Grid response to solar PVCalifornia
Fraunhofer USA Center for Sustainable Energy Systems (2014 ) Cleantech Notes [Online] Tracking the Duck Curve [Accessed 12.11.2014]
http://www.cleantechnotes.org/2014/05/07/tracking-the-duck/ Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
The U.S. electricity system is on the cusp of fundamental change, driven by rapidly improving cost effectiveness of technologies that increase
customers’ ability to efficiently manage, store, and generate electricity in homes and buildings.
By changing electricity pricing to more fully reflect the benefits and costs of electricity services
exchanged between customers and the grid, utilities and regulators can unleash new waves of innovation in distributed energy resource investment that will
help to reduce costs while maintaining or increasing system resilience and reliability.
~Amory LovinsRocky Mount Institute
Rate Design for the Distribution EdgeAugust 2014
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Time-of-use pricing (TOU): A tariff structure in which electricity prices are set for a specific time period on an advance or forward basis, typically not changing more often
than twice a year. Prices paid for energy consumed during these periods are pre-established and known to consumers in advance, allowing them to vary their usage in
response to such prices and manage their energy costs by shifting usage to a lower cost period or reducing their consumption overall.
International Energy Agency (2011) Technology Roadmap: Smart Grids. France
Rocky Mountain Institution. (2014) Electricity Innovation Lab [Online]Rate Designed for the Distribution Edge:
Electricity Pricing for a Distributed Resource Future. USA [Accessed: 12.11.2014] http://www.rmi.org/elab_rate_design
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Political Aspects
Sources: http://www.microgridinstitute.org/about-microgrids.html, http://www.smartgridnews.com/artman/publish/Delivery_Microgrids/)
• Regulation of contracts and tariffs
– Laws and regulations must evolve to enable utilities and third parties to compete on a level playing field to provide behind-the-meter products and services to customers
– Time of Use Pricing allows utilities to send price signals for where and when electricity generation is needed from DER
– Power Purchasing Agreements provide financial security for the recoupment of DER technology investments
• Standardized Technology
– maximize compatibility, interoperability, safety, repeatability and quality
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Innovative Policies
Sources: http://galvinpower.org/microgrids
• Microgrid long-term property assessed financing • Energy districts• Allow local government to build, own and operate
new smart microgrids• Allow local governments to invest in and direct
utilities to make smart grid improvements
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Policy Reform Ideas
Source: http://galvinpower.org/microgrids
• Reliability and performance metric standards
• Low-interest loans for local governments to direct smart microgrids
• expand consumer choice and ISO markets that value consumer participation
• Ensure new legislation like cap and trade values consumer participation
German Case StudyWildpoldsried + AÜW + Siemens
Began: 1997 Innovative Leadership Plan Goal: 100% renewable energy by 2020
Progress: 500% renewable SURPLUS in 2014 = USD $7 million annual
~5 MW solar PV : 200 residences, 12 public buildings5 biogas plants : 8.2 MMBtu/year : waste wood from local forest
biogas heat district network : 120 residences, all public buildings, 4 companies11 wind turbines : 12 MW capacity : 9 financed by local dairy farmers
10 year payback 80% annual income of dairy farmers2,100 sqm solar-thermal systems
3 small hydro-power plants
All figures have been obtained from: Rocky Mountain Institute “A Small Town in Germany Becomes a Test Ground for a Smart Grid” RMIOutlet [blog] [Accessed: 13.11.2014]
http://blog.rmi.org/blog_2014_11_06_small_german_town_becomes_testing_ground_for_smart_grid Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
All electricity generated from solarwind
biomasssold to AÜW under a
fixed-price 20-yearpower-purchase agreement (PPA)
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Integration of Regenerative Energy and Electric Mobility IRENE
200 measuring devices : ( I, V, f ) production consumption138 kWh battery storage : absorbs electricity discharges,
stabilizing the grid32 electric vehicles : leased to residence for additional storageSOEASY : self-organizing automation system : balances supply
and demand
(1) Personal energy agent : how much, what time, what price : 15 minute(2) balance master : installed at AÜW : decides which offers to accept to
meet demand(3) area administrator : communicates with personal energy agents sending
excess to storage (4) network transport agent : collects data from energy producers,
consumers, the grid, and supplies it to area administrator and balance master (5) energy police : ensure that all energy producer reach supply committal
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Results
140 : new jobsEcological training center
Increased eco-tourismOver 100 : delegations visiting the town each year500 % : surplus renewable electricity generation
USD $7 million : annual revenuemedical center, recreation center, fire station, et cetera
2,600 : population (consistent)
Benedict Adcock
Heather Troutman
Dave Huntington
Gabriel Niessen
Thank You
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