- Green Economy in Practice - the Example of Stockholm Royal Seaport

Göran Hult, Vice President R&D, Fortum Sweden

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Our geographical presence today

TGC-1 (~25%) Power generation ~7 TWh Heat sales ~8 TWh

OAO Fortum Power generation 17.4 TWh Heat sales 26.7 TWh

Russia

Poland Power generation 0.6 TWh Heat sales 4.3 TWh

Baltic countries Power generation 0.4 TWh Heat sales 1.1 TWh Distribution cust. ~24,000*

Nordic countries Power generation 53.1 TWh Heat sales 17.2 TWh Distribution customers 1.6 million Electricity customers 1.2 million

Nr 2 Power generation

Electricity sales

Nr 2

Nr 1 Heat

Distribution

Nr 1

Key figures 2011 Sales EUR 6.2 bn Operating profit EUR 2.4 bn Personnel 10,800

Great Britain Power generation 1.2 TWh Heat sales 2.1 TWh

* Distribution business sold Jan 1, 2012

Energy policies set new requirements on and the grid – cities drive

•  Towards a carbon-neutral energy and transport system

–  More renewable –  Distributed energy systems –  Energy efficiency –  Electric vehicles

•  Cities in a key role in Europe –  80% of the population lives in cities –  80% of energy is consumed in cities –  50% of CO2 is produced in cities

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Stockholm Royal Seaport (SRS) – a sustainable urban district with world class aspirations

Vision: •  Royal Seaport – A sustainable

urban city performing world class

Objectives: •  Year 2030 the Royal Seaport is

fossil free and climate positive

Focus areas: •  Effective energy end-usage •  Sustainable transportation •  Local re-cycling •  Life style issues •  Adaptation to climate change

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The local energy solution in SRS will have a smart connection to the larger energy system

•  Sustainable district heating and cooling –  Renewable fuels in effective CHP plants –  Local energy production and storage –  Smart use of heat and cooling

•  Smart grid as enabler for –  Smart buildings, homes and appliances –  Local energy production and storage –  Climate effective transports and vehicles

•  Active and caring energy users

Active homes with demand response Integration of local energy production Use of electric vehicles and smart charging Energy storage for customers and grid Smart and electrified port Smart grid infrastructure Smart grid lab – Innovation Center

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The smart grid for SRS will be needed for reaching the sustainability targets

Smart grid is more than technology - part of an evolving energy market

•  New roles and functions in the sustainable energy system

–  New technology solutions –  New business models –  New market rules –  New customer roles and

behaviours

•  Transferred into new market rules and commercial applications

A new market concept in SRS is crucial to achieve the desired dynamics Guiding principles

•  Increase the consumer influence and awareness on energy usage

•  Support environmental sustainability targets including lifestyle issues

•  Implementable into a future market environment

Features

•  Access to hourly based metering for all consumers

•  Dynamic pricing of grid and electricity market products

•  Demand response – day ahead and event driven

•  Supplier as single point of contact

•  Virtual delivery points •  Net debiting by month

•  DSO to get regulated benefits for e.g. reducing peak demand

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Reduced costs and reduced CO2-emissions •  Through domestic production and price signals visualising cost and environmental impact of electricity.

Increased control •  Through the clear visualisation of consumed and produced electricity •  Through home automation increasing consumption control •  Through an increased participation on the electricity market through virtual metering points, photo voltaic production and the charging of electric vehicles

Increased comfort •  Through home automation creating the possibilities of active lifestyle choices. •  Through higher security of supply due to peak levelling of the grid and an additional production installation

Smart grids pre study – what benefits for society have been identified?

The active house in SRS connect to the central system

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Energy Services Interface

Metering Interface

Home automation Energy display

Smart appliances Individual sub metering

Building automation Energy display

EV charging units Energy storage PV Generation

Electricity billing meters

Energy market DSO •  Cost and GHG emissions

•  Awareness and motivation

•  Simplified sustainable life

•  Softer impact of blackouts

Benefits

An automated grid infrastructure enable integration of new components with a high reliability and efficiency

•  Network automation on MV/LV •  Reliability Centered Maintenance •  New LV distribution – 1kV •  Demand response for grid •  Emergency control •  Centralized and Distributed Energy Storage

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Norra 1

110 kV

New Substations

10 kV

Gärdet

Värtan

33 kV

Harbor

220 kV

220 kV

Värtan

Värtan

Gärdet

Västra

Gasverket

ExistingSubstation

Alt 1:

≤24MW

Alt 2:

>24MW

Vid Alt 2,

och Alt 3

Alt 3:

>24MW

Energy Storage

•  Robust energy system •  Improved capacity utilisation

•  Effective O&M

•  Improved power quality

Benefits

The SRS shore-to-ship electrification reduce emissions and enable the port to remain in the city

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S/S 40 MW converter

S/S 12 MW connection

Feeder cables

50 Hz S/S switching •  Reduced GHG emissions

•  Reduced SOX and NOX

•  Noise reduction

Benefits

The smart grid lab manage the central applications and provide the test environment

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•  Network management •  Smart Grid Interchange control •  Demand response management •  Retail business applications •  Market operations

Some important messages to conclude

•  Smart Grid is a key enabler for implementing the energy policies –  Brings benefits for consumers and the entire society

•  Smart grid is a complex system development –  Industry, society and academia must work together –  Ambition, roles and responsibilities should be clarified

•  Market rules, regulation and taxation need to be further developed –  The model have to bring incentives to all actors

•  This is a global business opportunity –  The energy industry drives –  R&D arenas like Stockholm Royal Seaport will become a success factor

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