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Speaker of Verhaert at the 8th edition of our Innovation Day on October 21st 2011.
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CONFIDENTIAL
INNOVATIONDAY 2011 Slide 1
Erik Van Genechten
Smart Grids: Hype or Revolution?
Project Manager
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 2
Presentation Summary
• Transition from conventional power grid to smart grid
• Opportunities for innovation
• Conclusion
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INNOVATIONDAY 2011 Slide 3
The Conventional Power Grid
Electricity production and delivery is monopolistic, central, conventional (=nuclear or fossil fuel based and hydropower) and predictable
Electricity flows in one direction, from producer to consumer (top-to-bottom)
Industrial entity is responsible for• network extensions iaw. growing demand• providing security of supply
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INNOVATIONDAY 2011 Slide 4
The Conventional Power Grid
• Network uses tree topology• High voltage network is operated
by the Transmission System Operator (TSO) and is used for long distance power transportation across borders and state lines
• Medium voltage network is mostly operated by the TSO and used for local power distribution.
• Low voltage lines are operated by the Distribution System Operator (DSO) and voltages are stepped down to 380/230V for SME and residential use
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INNOVATIONDAY 2011 Slide 5
The Conventional Power Grid: Market Liberalisation(Belgium: 1999-2005)
Power generation, grid operation and customer care are split over multiple actors:
• Production (Electrabel, etc.)• Transportation (Elia)• Distribution, Metering (Eandis/Infrax)• Balancing responsible (major customer, producer)• Regulator (VREG)• Delivery (ECS, etc.)• Trading (Belpex)
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INNOVATIONDAY 2011 Slide 6
The Grid becomes smarter
Network topology slowly migrated from simple tree structure to morecomplex mesh networks for added redundancyMore complex network structures demand increased control mechanismsand network communication infrastructureMarket liberalization introduced new actors, requiring better rules ofengagementNetwork balancing (demand and supply) was only done by means ofcontrolling the energy supply, i.e. turning on/off peak power plants(Gasturbines, pumped storage plants,…)
Complexertopology
Market Liberalization
Better Load Balancing
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INNOVATIONDAY 2011 Slide 7
Residential Consumption: Typical Daily Profile
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TodayBAU
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INNOVATIONDAY 2011 Slide 8
Threats to power grid
?Increasing Demand
Distributed Generation
Renewable Energy Sources
Demand-Response
Optimization Energy Storage
Prosumers
Aging Network
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INNOVATIONDAY 2011 Slide 9
Why do we need a smart grid? De-carbonization of the energy
March 2007: Ambitious European Energy policy 20-20-20:• 20% reduction in CO2 emission• 20% increase in energy efficiency• 20% of energy produced is renewable (Belgium target is 13%)
RES in Belgium:• 2005: 2,2% • 2009: 6,0%• 2020 target: 13% of energy produced is renewable
Target for 2020
CO2 neutral energy production by 2050
Increased unpredictability of power generation
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INNOVATIONDAY 2011 Slide 10
Smart Grid Functions
• Real time remote metering
• Bi-directional flow control
• Demand-Respons balancing
• Peak shaving
• Time of Use pricing
• Island operation
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INNOVATIONDAY 2011 Slide 11
Residential Consumption: Typical Daily Profile
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TodayBAUSmart Grid
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INNOVATIONDAY 2011 Slide 12
Smart meter: the cornerstone of any smart grid
EC Directive:2020: 80% of consumers equipped with Smart meters
Purpose:Remote real time registration of electricity/gas/water consumptionPower outtage notificationMonitoring power qualityInterface with Home Area NetworkRemote customer activation/de-activation
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INNOVATIONDAY 2011 Slide 13
Smart meter Benefits
Customer:• Awareness of real time electricity/gas/water consumption• No more annual meter registration• Accurate monthly billing• Faster responses to power outtage
Distributors:• Automatisation of billing• Detection of “non-technical losses”• Faster detection and resolution of power outtage• Better allignment of generation and consumption of power
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INNOVATIONDAY 2011 Slide 14
Smart meter Benefits
Power generators:Better prediction of required power to be generatedBalancing the network with increasing DER remains possibleIntroduction of ToU pricing for residential market
Aggregators:Enable energy wholesale to specific markets
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INNOVATIONDAY 2011 Slide 15
Time of Use Pricing
Multiple tariffsRatio Highest/Lowest tariff up to 15
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INNOVATIONDAY 2011 Slide 16
Demand Side Management: The hunt for flexibility
• Increasing % of RES in the network means increasing unpredictability interms of power generation (e.g. weather dependency)
• The only way to keep the networks in balance, is to also control the power
• Consumption (= demand side management)• Power generating companies are looking for flexible customers to
partner with them. The more flexible you are the better prices can be negotiated
• Different control levels are possible, both on consumption and generation side:
Power on/off control by third partyControl local power generation remotelyPeak demand reductionToU pricing, Real Time Pricing or Bidding
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INNOVATIONDAY 2011 Slide 17
Demand Side Management: The hunt for flexibility
• Air conditioning = solar powered• Dishwasher• Dryer• Cooling/Freezing = cool lower during low tariff periods, improve
hold- over time to overcome high tariffperiods
• Energy storage (electrical/thermal/hydro) = pump water with cheapelectricity, generate power when prices are high
• Water heating• Space heating• Hydrogen generation = use wind power when surplus is available• eMobility = > storage capacity
}= allready today often used during night time
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INNOVATIONDAY 2011 Slide 18
Market impact: Business opportunities
eMobility• One large mobile electrical storage medium• Flexible charging patterns• Smart charging infrastructure (public and private)• Trip planning tools
Home Area NetworkResidential gatewayIn home displays Smart appliancesBuilding/home energy management systemsMicro generation (Solar, wind, μWKK, ...)
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INNOVATIONDAY 2011 Slide 19
Market impact: Business opportunities
Shift in energy marketSmart buildingsSelfsufficient neighbourhoodsSmart Cities
Many stakeholdersSystem operatorsProducersSystem integratorsAsset ownersPolicy, regulationsCustomers
No single organization can deliver the smart grid
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INNOVATIONDAY 2011 Slide 20
Smart Grid = Marriage between Utility and Telecom sector
• Utilities typically installs equipment for 10’s of years, but whichelectronic equipment is failsafe for 10 years?
introduction of low cost consumer electronics in residential meter cabinet
• Millions of smart meters sending out data every 15 minuteshugh amount of data management requires top notch telecom infrastructure
• Electrical network security becomes key issue• Island operation requires specific connectivity and ICT technology
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INNOVATIONDAY 2011 Slide 21
EnvironmentalConcerns
Reneweable Energy
Smart Grid
Impact on daily business
Conclusion
Smart Grid will be the next industrial revolution after the internet!
Make sure you assess the potential impact on your business!
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INNOVATIONDAY 2011 Slide 22
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