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Smart GridsDick Kronman, ABB Oy, 21.3.2012From Vision to RealityIntroducing ABB ABB Group April 4, 2012 | Slide 3A global leader in power and automation technologiesLeading market positions in main businesses135,000 employees in about 100 countries$38 billion in revenue (2011)Formed in 1988 merger of Swiss and Swedish engineering companiesPredecessors founded in 1883 and 1891Publicly owned company with head office in SwitzerlandPower systemsDiscrete automation and motionEuropeAsiaAmericasMiddle East and AfricaWell-balanced business and geographic portfolioCapturing growth opportunities, wherever they ariseShare of employees201147%Mature marketsEmerging marketsPower productsProcess automationLow voltage products53%25%21%22%12%20%Orders by division% of total orders 2011 (non-consolidated)38%30%23%9%Orders by region% of total orders 2011 ABB Group April 4, 2012 | Slide 5Leading power systems biggest-ever transformationSmarter, greener grid for more efficiency and reliabilityMerging power and automation technologies makes electricity network more reliable, flexible, secure and efficient. Smart grid benefits include:Lower power consumptionGreater use of renewable energyABBs broad offering in both power and automation technologies positions it uniquely to support this evolutionTransformation of grid to take place over several decadesTransformation of the electricity supplyWorldwide drivers for a different typeof electricity supplyGrowthPopulationEconomy in particular in emerging countriesSustainabilityPollution locallyClimate change globallyLimitation of resourcesAcceptance: difficulties in building infrastructureSubstitution: importance of electricity is still growing, outpacing all other types of energy (IEA) Development of electricity supply and applicationis the key to more sustainability. ABB Group April 4, 2012 | Slide 8Todays energy challengesCut link between growth, energy use and emissionsMeeting these challenges requires the world to:Reduce the correlation between economic growth and energy useReduce the correlation between energy use and emissionsEnergyefficiencyRenewable sourcesof energyThe case for energy efficiencyThe main source of potential emissions reductions20253035402008 20352020 *Carbon capture and storageCO2 emissions (Gt)World energy-related CO2 savings potential by policy measure under 450 Policy Scenario relative to Current Policies ScenarioSource: IEA, World Energy Outlook 2010Current trend450 Policy Scenario ABB Group April 4, 2012 | Slide 92020 2035Efficiency 71% 48%Renewables 18% 21%Biofuels 1% 3%Nuclear 7% 8%CCS* 2% 19%European SmartGrids Technology PlatformEvolution of grid designFrom traditional to future gridsCentralized power generationOne-directional power flowGeneration follows loadOperation based on historical experienceLimited grid accessibility for new producersCentralized and distributed power generationIntermittent renewable power generationConsumers become also producersMulti-directional power flowLoad adapted to production Operation based more on real-time datatraditional gridsfuture gridsA new generation mixFundamental changesRemote generation in big plantsWind power, in particular offshoreHydro power the Alps, ScandinaviaDistributed generation in small unitsPhotovoltaicCombined heat and power generationVolatile generationWind powerSolar powerConsequences all over the system of power generation, transmission, distribution and consumption.In the end this will require a new system design.Managing the challengeEuropean Electricity Grid InitiativeEEGI Focus AreasSource: Entso-e, Edso for SG 2010European Drivers of Grid DevelopmentRegional Differences in Political Targets8 / 19Common to all countriesCommon to allcountriesGermany UKSpainDecentral power generationASmartstorageBSmart meterCSmart consumptionDPower qualityregulationFElectricity demandGCostregulationHNordicItalyFranceUKNordicItalyUKFranceCommon to allcountriesCommon to all coun-tries in case of eco-nomic breakthroughe-VehiclesECommon to all countriesPower sources example GermanyFrom hundreds to millionsMWWind productionSource : StatnettIntegration of renewables also brings many challengesExample - balancing demand and supply in real-timeUnpredictable / intermittentNeed for balancing reservesLegislation / incentives for renewablesNegative tariffsThe effect of heavy wind power feed-in on tariffsBase: -35,57Peak 9,47Max(18) 42,59Min (7) -199,99Source: EnBW, 2010100500-50-100-150-200-250/MWh1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24hourinformation and communication technologies (ICT)Demand responseOne important driver for smart citiesSmart Homepower technologies buildingautomationnew interconnection in Smart GridsSmart Gridbuilding automationelectronic metervisualization,actorsgatewayRenewable energy from volatile sourcesConsequences in energy consumptionPrice spread between system compliant and non-compliant consumption will increaseStorage within applications can be utilizedHeating and coolingElectric vehiclesButConsumers will not be willing to loose controlConsumers will not acceptloss of comfortAutomationDistributed generationConsequences in distribution networksBigger variety of working points caused by distributed generationVoltage control becomes more and more difficult in rural gridsNew protection schemes requiresCommunications access to generation units requiredUlUconsumption onlywith distributed generation Distribution networks will need more remote supervision and control.Smart Grid and Power Distribution Traditional Automation AreasDistribution Control CentersNetwork management SCADA/DMSOutage ManagementWorkforce managementPrimary Substation AutomationIntegrated Protection, Control and MonitoringNew Automation Areas Secondary Distribution - MV NetworkFault Passage IndicationMonitoring of Voltages and CurrentsRemote Control of switchesSelective Protection with breakers along feedersSecondary Distribution - LV NetworkIntelligent breakers for protection and control of the LV gridSmart meters with fault indication capabilitiesAsset ManagementOn-line Condition MonitoringPenetration of automation deeper in the gridZones based on consumption criticality and disturbance vulnerabilitySubstation zones and tapped line zonesZone Concept for MV networks Reducing risks and consequences of faultsWhen Grids Get SmartCommunication Gains ImportanceVirtual Power Plants - VPPApplications:Peak reductionsOffset intermittent generationImprove forecastingSpinning reserveSmart CitiesUrbanization is a global megatrend and challengeMonth DD, Year | Slide 27 ABB GroupThe worlds fastest growing citiesThe top 600 cities*Additional fast growing citiesUrban population will increase from 50% to 70% by 2050 globally2.9 billion people will move to cities in the next 40 yearsOver 90% of urban growth will take place in emerging countriesIn 2025 the 600 biggest cities will contribute 60% of global GDPAlready today cities consume over 75% of natural resources *The top 600 cities by contribution to global GDP growth from 2007 to 2025 (McKinsey 2011)Source: McKinsey 2011, UNEP 2009Smart Cities show attractive growth rates of 18% 100 billion investment in core technologies* from 2010 to 2020Highest investments in North America, Europe and Asia PacificAlmost 40% of total investments are in UtilitiesMonth DD, Year | Slide 28 ABB Group $- $4 000 $8 000 $12 000 $16 0002010 2012 2014 2016 2018 2020Smart GovernmentSmart BuildingSmart TransportSmart UtilitiesAnnual Smart City Investment by Industry Segment 12.6%26.3%17.5%20.1%Compound Annual Growth Rate *Core technologies: Sensors, smart meters, fiber networks, software, other hardware and software that provide basis for smart city Source: Pike Research 2011 Million US $ ABB Smart City ProjectsKalasatama Smart Grid FinlandBuilding a smart city in the heart of HelsinkiKey objectives Develop a model area for a smart power grid in the new Kalasatama district Help to lower consumption and emissions with implementation of state-of-the-art energy, information and automation technology Provide 10,000 jobs and homes for about 18,000 residents in Helsinkis area by year 2030ABBs response smart grid scopeReliability of supply through Grid AutomationSmart BuildingsDemand Response ManagementIntegration of renewable energy Integration of electric vehiclesEnergy storageCustomerHelsingin EnergiaHelsingin Energia, one of the largest energy companies in Finland, supplies electric energy to about 400,000 customers in Finland and covers more than 90% of heat demand ofthe capital city Stockholm Royal Seaport project - Sweden An integrated approach for metropolitan areasFocus areas Efficient energy use Environmentally efficient transports Local ecocycles Environmental life styles Regulatory frameworkCustomers Fortum Stockholm MunicipalityKey objectives Develop a world class sustainable city district Reduce CO2 emissions to a level below 1.5 tonnes per inhabitant by 2020 Become fossil fuel free by 2030 Adapt to climate changeStockholm Royal Seaport project Swedenand a Smart Grid for reaching sustainability targets ABB Group April 4, 2012 | Slide 32Active homes with demand responseIntegration of local energy productionUse of electric vehicles and smart chargingEnergy storage for customers and gridSmart and electrified portSmart grid infrastructureSmart grid lab Innovation Center766644322151234567ABB Smart Grids Projects ABBMonth DD, YYYY | Slide 33Espoo, MkkylAdjutantti - a new consept of sustainable livingOwn Solar electricity productionElectric vehicle chargingApartments for sustainable livingMeasuring and visualization of water consumptionMeasuring and visualization of energy consumptionPossibility of consumption decreaseRoom-specific heating control and decreaseAt home / away controlsHailuotoIsland Mode Operation of Distribution GridPurposeDemonstrate a generic concept for automated dynamic island mode operation. The producers and consumers should have access to healthy parts of the grid during disturbances and/or black-outsKey TechnologiesFeeder Automation, protection and control for distributed generation Kirkkonummi, MasalaCutting outages by 50% in Fortum grid areaReducing the number of outages and recovery time Improved security of supply to customersA highly automated distribution grid is an important step towards self-healing networksExample: FDIR pilot cutting outages by 50%Fortum Grid Area in Kirkkonummi, Finland3G/GPRSDisconnectorSCADA/DMSRTU560RecloserSubstation AControl CenterDisconnectorstationDisconnectorstationDisconnectorM2M gatewayCOM600REF615REF615RecloserFDIR - integrating Substation Automation and Grid AutomationGrid Topology with Protection and Control ZonesABB Finland ABBMonth DD, YYYY | Slide 38Distribution Automation, products and systems making the power distribution smartGenerators and Converters generating electricity from windPV Inverters connecting solar panels to the gridMotors top class energy efficiencyHome Automation making our living smart and sustainableABB Finland A Leading Technology SupplierSmart Grids Energy Efficiency RenewablesNovember 08, 2011| Slide 39


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