Smart grids as an opportunity for Finland and environment 5/10/2011
Dr. Johanna Kirkinen, Energy and Climate Change Lead Energy Programme, Sitra ECT Forum, The Finnish Society of Electronics Engineers
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Energy Programme 20082012
Energy Efficient Built Environment • Energy efficiency into town planning • Energy efficient and sustainable new buildings • New operation models for building renovation
New Business from the Energy Revolution
• AW Energy Ltd • Neapo Ltd • Viola Systems Ltd • Norrhydro Ltd • Savo-Solar Ltd
Finns become Energy-concious
• Citizens join the energy bee • New operation models for energy guidance
Growing well-being and new business
through diminishing energy use of
individuals and communities
Energy use and emissions of
communities peak and decline –
a systemic change in energy
production and use in
buildings
5/10/2011
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Enormous greenhouse gas reduction
potential in built environment
Buildings32 %
Construction6 %
Transportation19 %
Industry30 %
Others13 %
Greenhouse gas emissions 2007Total 78 Mt CO2-ekv
Built environment:
- Share of energy end-use 42 %
- Produce 38 % of carbon emissions in Finland
Buildings38 %
Construction4 %
Transportation17 %
Industry37 %
Others4 %
Energy end-use Total 307 TWh
5/10/2011
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EU goals in environment and energy
• Greenhouse gas emission goals by 2020
- 20 % from 1990 level
- 30 % if other (industrial) countries take similar goals
- (Finland 80 % by 2050)
• In Emission Trading (ET) a common goal, in non ET MS-goals by 2050
- Industrial countries 60 - 80 %:n reduction until 2050
• Energy Efficiency: - 20 % in 2020 (compared to baseline in 2020)
• Renewable Energy Sources (RES)
- 20 % share of final energy cons. 2020 (at the moment 7 %)
- MS goals between 10 % … 48 % (Finland 38 %)
- Transport fuels RES share 10 % in 2020
• Structural change in energy system needed:
- Low carbon energy production
- Efficient use of energy industry, transport, and buildings
- Smart integration of production, use, and consumers
5/10/2011
About smart grids
05/10/2011
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05/10/2011
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From structures of industrialisation to focus on people and solutions
FROM BOTTOM
TO FRONT
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Consumer perspective
Smart Grid Benefits (WEC and Accenture 2010) • Greater choice between energy providers, products and services • Greater transparency and control over energy consumption
- More transparent and frequent billing information • Opportunity to see environmental benefits on a household/business basis • Access to clean technologies, such as electric vehicles and micro-generation (heat
pumps and smart appliances) • Provision of a more reliable service with potential energy bill and carbon savings Consumer awareness and participation (JRC 2011)
- Consumers’ awareness and participation is crucial for the success of Smart Grid projects.
- Most projects highlight the need to involve consumers at the early stages of project development, to give consumers the freedom to choose their level of involvement and to ensure data privacy and protection.
- It is imperative to ensure that consumers have trust in and understanding of the whole Smart Grid process and receive clear tangible benefits.
05/10/2011
Local energy revolution??
05/10/2011
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Local energy
• Challenge: how to increase the production of renewable energy or the use of energy saving technologies?
• “Local energy” refers to energy saved by a user or users collectively or locally produced renewable energy.
• Possibilities - Increase local economy - Increase households’ energy security - Creates communal spirit - Decreases emissions
• Challenges - No service provides (yet!!) - Costs - Not so many cases (yet!!) - Standardization and legal issues
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Electricity market
• Current situation
05/10/2011
Client -Electricity supply contract with local electricity supplier -Electricity contract with the electricity producing company
Electricity distribution company -Owns the dictribution network -Owns the meters -Charges distribution costs -Pricing is regulated by Energy Market Authority
Electricity seller -Sells electricity to the consumers -Acts in open market -Charges the costs of electricity production -No regulated pricing
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Electricity market
• In the future???
05/10/2011
Client -Electricity supply contract with local electricity supplier -Electricity contract with the electricity producing company -Provides self-produced electricity to the grid
Electricity distribution company -Owns the dictribution network -Owns the meters -Charges distribution costs -Pricing is regulated by Energy Market Authority -Provides new services??
Electricity seller -Sells electricity to the consumers -Acts in open market -Charges the costs of electricity production -No regulated pricing -New services in the markets??
Service provider - Offers services related to intelligent grid
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Energy price split between value chain players
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Local energy services, anyone?” survey
1. an online service that would allow residents to search for information, compare various solutions or create a list of suitable choices by entering basic background information.
2. a service that collects information from different sources, because the sector is developing rapidly and has many service providers -> would make it easier to find impartial information and make comparisons.
3. turnkey services that would include design, permits and installation as well as system servicing and maintenance.
05/10/2011
Other project examples
05/10/2011
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05/10/2011
Finnish smart grid offering map available here >>
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Distributed methods of energy production
Piirrokset: Leena Ahveninen
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SOLAR DECATHLON EUROPE 2010 SDE 2010 TEAM FINLAND
• A competition for universities to design and build a prototype solar powered energy self-sufficient house in Spain in May-June 2010.
• Luukku house by Aalto University - Wooden house
- Zero energy
- Minimal living unit
- Low carbon footprint
- Challenges of Northern climate
- Promote the best possible Finnish products
• Powered by Sitra
www.sdfinland.com
5/10/2011
Low2No
Towards Sustainable Urban Living
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Low carbon lifestyles
28.5.2011
Key elements:
• Increasing community engagement and community awareness
• Low carbon food
• Low carbon travel
• Mixed-use environment
• Smart systems and sensoring
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How to speed up the development of smart grids?
• User-centric approach: increased interest in electricity market opportunities, value added services, flexible demand for energy, lower prices, micro generation opportunities
- Innovation enabler
- The users deside in the end how ”intelligent” the grid is, not b2b
- ”Listen to customers instead of telling them”
• Goverment programme
- Development of smart grids
- Pricing of electricity
• Signals from the news…
- Germany: Smart grid lab opened at university in Magdeburg
- Over EUR 5bn invested in around 219 smart grid projects. By 2020, investment could reach EUR 56bn.
- Sweden: Nine of ten Swedes positive to selling surplus electricity (a survey by Fortum )
05/10/2011
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Customer participation, services, pilots…
05/10/2011
Source: Naps Systems
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Thank you! More information: Dr. Johanna Kirkinen Lead, Energy and Climate Change Energy Programme, Sitra GSM +35840 186 7107 Email [email protected]