NASSCOM Engineering Summit 2014: Keynote III : ‘Smart Grid and the change in energy automation’: Klaus Arzig

© Siemens AG 2014 All rights reserved. Klaus Arzig

Smart Grids and the change in energy automation

The world of electrical energy supply and distribution is changing

© Siemens AG 2014 All rights reserved.

2013-09-25 Page 3 Klaus Arzig

Definition

Wikipedia:

A smart grid is a modernized electrical grid that uses analogue or digital information and communication technology to gather and act on information, such as information about the behaviors of suppliers and consumers, in an automated fashion to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity

Roll-out of smart grid technology also implies a fundamental re-engineering of the electricity services industry, although typical usage of the term is focused on the technical infrastructure

BDEW:

Adds also gas (H2, Methane,…) to it, which might end up in an overall view of an energy network including heating, cooling, energy storage etc.



There is nothing

permanent except change

There is nothing

permanent except change

Energy systems worldwide are changing…



Renewable Integration



The world has to move towards renewable energy

200215

240

2616135

50

150

100

200

20.000

50

0 Biomass Geothermal Solar Wind

20.000

Nuclear Oil

900

Coal 2050 2010 Hydro Gas

Renewable Sources [TWh / a] World Energy consumption [TWh / a]

Conventional Energy resources [TWh]



Source: LEW

Load in kW

200

100

0

-100

-200

-300 12:00 0:00 0:00 0:00 0:00 0:00 0:00 0:00 12:00 12:00 12:00 12:00 12:00 12:00 12:00

Load profile 2003 Load profile 2011

Changing infeed patterns are challenging existing grid infrastructures

Weekly loading of a transformer station in the rural area in Germany 2003 and 2011



Renewable infeed is driving changes in the energy system



Significant changes in energy systems…

From centralized, unidirectional grid …



Significant changes in energy systems…

Smart Street Lighting

Private Solar

Electrical Vehicles

Avoidance of non technical losses

Hydrogen Storage

… to distributed energy and bidirectional energy balancing

Balancing of generation & consumption

Load management & peak avoidance

Resiliency through automatic outage

prevention & restoration

CO2 avoidance & cost curtailment

Wind Parks Offshore Large Scale

PV Plant

Pumped Storage Power Plant

Smart Distribution

End-to-end Management

Storage Solutions

Cost optimization and improved security of

supply

Smart Transmission

Wind Parks Onshore

Rail Microgrids

Diesel Generator



Transmission Applications



Distribution Applications



Distribution Automation Different approaches to solve the problems

Semi-Decentral Automation Systems at substation/ feeder level

Standard Aproach Invest in new primary equipment

…

Central solutions, eg. implemented at Control Centres

Decentral Intelligence provided by RMU



Microgrid



Key challenges drive implementation of Microgrids

Microgrid Technical challenges Customer challenges

Economical index: cost/kWh, Energy security (reliability of infrastructure, energy import dependency, energy efficiency use), presence of remote areas Positive Business Case

Political index: Taxes on fuel/CO2, Environment targets, Subsidies scheme, regulatory framework for renewable (feed-in tariffs) Long term investment, Promotion

Efficient energy use - power and heat

Reliability / Security

Integration of renewables



Demand Response/Virtual Power Plants



Demand Response General Definitions of Demand Response

FERC Federal Energy Regulation Commission “Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.” http://www.ferc.gov/industries/electric/indus-act/demand-response/dr-potential.asp

Paolo Bertoldi, European Commission, DG JRC, IE- Institute for Energy: “Demand response is a series of programs sponsored by the power grid, the most common of which pays companies (commercial DR) or end-users (residential) to be on call to reduce electricity usage when the grid is stressed to capacity. […] DR is different from reduction in load and energy consumption due to real time, time of use, or peak time tariffs, where end-users decide to act on its own consumption to reduce costs.” http://iet.jrc.ec.europa.eu/energyefficiency/workshop/international-workshop-potential-and-programmes-foster-demand-response-europe

Load follows generation to avoid high electricity prices or maintain reliable electric services.

http://www.ferc.gov/industries/electric/indus-act/demand-response/dr-potential.asp

http://iet.jrc.ec.europa.eu/energyefficiency/workshop/international-workshop-potential-and-programmes-foster-demand-response-europe




















Definition: Virtual power plant

Virtual power plant (VPP) • Bundling of distributed energy resources (producer,

user, storage) into a logical unit • Planning, operation, and monitoring by an energy

management system • Easy integration into energy markets

and grids



Storage



Storage types

Type Supply time

Startup time

Efficiency [%]

Size [MW]

Capacity Storage possibility

Flywheels Seconds - minutes

msec 80-85 0,1-20 kWh-MWh Very short

Batteries, e.g. Litium Minutes msec 85-90 5 MWh Short

Redox flow batteries Minutes – hours

sec 75-80 4 MWh Long

Pumped storage hydro power

Hours – days

Sec 75-80 6-1000 MWh-GWh Long

Compressed air Hours Sec 40-70 100-300 GWh Long

Power2Gas2Power Days – weeks

Min 35 400-1600 TWh Long



Smart Metering



Non-technical losses

Trends

Integration of renewables

Technologies and standards

Customer challenges Integration of renewables: Share of renewables to increase dramatically in the next 2 decades, bringing urgent need for grid integration, e.g. in EU, share of renewables expected to rise to 38% in 2030

Smart meters add more measurements into the grid to enhance the control

Non-technical losses: E.g. in Brazil (5.8%) due to non-technical causes, e.g. electricity theft

Market regulation: Regulation in key markets drives adoption; Europe, USA and China have regulations in place.

Smart meter as a key component in demand response scenarios Regulations

Smart metering solutions support changes in distribution grids



Standardisation (Source: http://smartgridstandardsmap.com/)



Cyber Security Trends

ICS-CERT Responses to sector specific cyber security threats across the critical infrastructure sectors in 2013

Source: The Industrial Control Systems Cyber Emergency Response Team (ICS-CERT)

Percentage related to the total response for 2013

Total Number of threats Percentage of threats



Essential Regulatory Frameworks and Standards

• Smart Grid Task Force – Expert Group 2

• Smart Grid Coordination Group – Information Security (SGIS)

• Cross-industry consortium of leading Operators of control systems

• Set of Security Requirements for vendors of automation and process control systems

Working-party on Instrument Behaviour

M/490

• Binding requirements for US grid companies.

• Auditable compliance required for bulk power operator

• Standards and recommendation for Smart Grid

TC57 27k

http://www.nerc.com/



Smart Grids also start in India