Athens, 24th of October 2009
Maher ChebboVP, Head of EMEA Utilities & Communication industries - SAP [email protected]
EU SmartGrids Council – Chair of Demand and Metering Groupco-chair ICT for Energy Efficiency Consultation for DG-INFSOAdvisory Technical Coordination for EU project SEESGEN-ICT
SmartGrids: Overview of Smart Grid Technologies –Application Prospects - EU initiatives.
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 2
Why European SmartGrids?
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 3
Why do we need SmartGrids ?
Rasons for Blackout : Weather, Sudden increase of demand, Operational errors, Human error, MS-Border operability, Plant Breakdown & Accidents, Cables failure, Power Line Slides, etc
Answering Networks failures, Blackouts and Environment complianceAnswering increased energy demand and Power shortage :
Global Energy demand is predicted to increase 60% over the next 30 years Without action, the EU's energy consumption is expected to rise by 25% by 2012
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 4
European Energy policy goals (20/20/20) for 2020 : The roadmap of ETP SmartGrids
Regulation ofMonopolies
Innovation andCompetitiveness
Low Prices And Efficiency
Primary EnergySources
Reliability andQuality
CrossBorder
Support
AmenityPreservation
ClimateChange
Kyoto andPost-Kyoto
Inte
rnal
Marke
tSecurity of Supply
Environment
20/20/20
Euro
pean
Smar
tGrid
s20
/20/
20 in
202
0
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 5
Progressive active customer participation
Stakeholders involved Customer participation aspects
Visibility, transparency, customer empowerment, Devices losses, buildings losses, etc
(analytical tools, AMR)
Better real time prices (price signals)(Connected devices, Demand Response, ICT, AMI)
Automatic decision support system(Intelligent automation, benchmarks, forecasting, AMI)
Prosumer & active retailing(bi-directional trade, AMI)
eEnergy(electronic marketplace, virtual …)
Pan EuropeanEnergy
Data M
anagement
European Union, Governments and Utilities
Consumers acting as Power Suppliers
Suppliers, Consumers, Technology & Service Providers
Retailers to Consumers
Consumers
… from passitve to active transactions in the marketplace to saveconsumer’s energy and balance load
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 6
Customers
Retail Operations
Call Center
Planning
Electric Production
Primary resources
Generation
Operations
Transmission
Management of Smart Grids with DER Integration
Sales/Marketing
HQ/Finance
Distribution
Basic limited operations, monitoring, visibility and control available for today’s distribution grid
Smart Applications that manage the Smart Distribution Grids focusing on SCADA systems improvement and interoperability, focusing technically on Energy Savings technologies
TODAY
TOMORROW
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 7
Customers
Retailers,
Aggregators, ESCOs
Call Center
Planning
Electric Production
Primary resources
Generation
Operations
Transmission
Demand Side Integration
Sales/Marketing
HQ/Finance
Distribution
Limited awareness, ICT tools and services leading to easy, “automatic”, natural and freely decided customer participation to save energy – Limited Customer empowerement
Demand Side and Demand Response Management enabled by friendly, end user oriented ICT solutions with embedded DSO load control and customer decision support system to save energy
TODAY
TOMORROW
Regulators
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 8
How to deploy European SmartGrids?
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 9
What are the Elements for Success?
Ronnie Belmans - Keynote Address CRIS 2009 - Linköping, Sweden
9
SmartGridsMaking
Smart ConnectionsEnabling
Smart Choices
Technology
Regulation
Standards
Com
mer
cial
Supp
ly C
hain
Demonstration
• There are real technical challenges
• They are solved or solvable by research
• But technology alone is not enough
• Demonstration/pilot projects are key
• Operational proving is a critical step
• Beware the Valley of Death……
• Regulatory frameworks may have unintended barriers to innovation
• New thinking takes time to implement
• Standards and protocols underpin open systems
• A Plug & Play approach is needed
• But there are no quick changes here
• Market frameworks may not facilitate innovative solutions
• Attention to intellectual property
• Export opportunities
• Innovation needs wide deployment
• But supply chains have limited capacity
• Manufacturing, raw material, services and skills
A Model for SmartGrids
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 10
Where SmartGrids investments are required for each stakeholder
Euro
pean
Smar
tGrid
s20
/20/
20 in
202
0 Virtual Power Plants ManagementEmissions Management, Predictive Maintenance
Adaptive generation, Demand Side Management, Energy Storage, Renewable Energies, CCS, Trading
Interoperable SCADA systems and VPP MonitoringPower flow management (FACTS, WAMS, WAPS)
Integration of large DG, Self healing NetworksCapacity Planning, Energy Data Management, AMI
Demand Side Management, Synamic pricing, AMICompetitive Customers multi-channel management
Bundling and variety of Products and Services Customer segmentation and Energy Efficiency services
Smart Homes (Smart meters, smart Boxes, smart services)Home Energy Management Systems
Customers active participation (Demand Response)Customers active participation in the Energy Marketplace
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 11
European SmartGrids 7 DSO initiative(European Electricity Grid Initiative – NEW)
12 Demonstration projects involving1.5 Mio customers, 50 000 KM and 20 000 sub-stations
1.2 b€ estimated funding required for 2010-2015
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 12
European SmartGrids 7 TSO initiative(European Electricity Grid Initiative – NEW)
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 13
SmartGrids 2 b€ estimate for RD&Dof 7DSO + 7TSO projects from 2010 to 2018
SO Research
(k€)
Demonstration
(k€)
Total
(k€)TSO/DSO 90 140 230
TSO 250 260 510
DSO 240 960 1200
Total 580 1360 1940
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 14
European SmartGrids Demand & Metering WG 3outcome
Infrastructure Layer
Communications Layer
Applications Layer
Overall system and value Chain
• What structural changes to the physical infrastructure are required?
• How can asset value be enhanced through increased monitoring & control?
• What requirements drive the digitial grid?• How to deal with new energy information?• How to ensure data integrity & seciurity ?
• How to integrate EV?• How to manage & dispatch DG?• How to institutionalize DR?• How to optimize grid operation?
• How will the interfaces betweenTransmission, Distribution be impacted
• What role will new market players have ?• What regulatory schemes are required ?
• To what extent will beyond the meter applications be linked to the physical grid?
• How will Smart Home devices become linked to the digital ICT layer?
• How can customer‘s devices be utilizedto achieve important energy efficiency ?
• What are the Customer Centrictechnologies to be deployed ?
• What will Energy Capital Management mean ? Evolution from Energy to Information Management ?
SmartGrids Business Case #5:Active Distribution Networks
SmartGrids Business Case #6:Retail side Energy Efficiency
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 15
SmartGrids 7 b€ of RD estimate for Demand & Metering (Active Distribution Networks & Demand)
b€ b€
Cost 500 M€ for Active Distribution Networks plus 200 M€ for Demand Side Management for each 1% of SmartGrids penetration
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 16
SmartGrids benefits
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 17
SmartGrids benefits per stakeholder, per metric :According to the 7 DSO initiative
12 Demonstration projects involving1.5 Mio customers, 50 000 KM and 20 000 sub-stations
1.2 b€ estimated funding required for 2010-2015
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 18
Peak demand reduction
Technology Peak Demand Reduction*
Time of use Pricing Information 8%
Dynamic Pricing Signals 13%
Smart Thermostat 27%
HEMS like device 43%
* The Brattle Group “The Power of 5 Percent”, The Electricity Journal, October, 2007
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 19
Demand Side Management Benefits
Projects Topic Benefits
Finland Smart metering
Demand Response
CRE (French regulator)
Smart metering Reduction of non technical losses by 50%
Residential energy efficiency by up to 5%
CO2 reduction by up to 5% (CRE)
Demand SideManagement
7% energy efficiency
Norway (SINTEF) 24.5% energy efficiency
DONG Energy 25%-50% reduction in Non Delivered Energy
35% reduction in fault search time
Up to 90% reduction in Network Reinforcement costs
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 20
Source Topic Benefits Benefitsequivalent to …
€50bn in avoided investment related to peak generation capacity and T&D
~150 Medium sized gas power plants
€25bn annual savings in electricity bills for customers
~annual residential electricity consumption of Finland’s
Demand Response Management report
(CG-Vaasa ett-Enerdata)
Demand Response Management
202 TWh of annual energy savings ~Total residential consumption in Spain and Germany
100 million tons of CO2 emission reductions annually
50% of the 2020 target
Up to a 15% reduction of BAU emissions in 2020 (7.8 GtCO2e)
€644 billion savingsSmart2020 report
(The ClimateGroup – GeSI)
Overall ICT impact on EnergyEfficiency 2.03 GtCO2e by 2020 ~14% of Total Power sector
emissions in 2020
Projects, best practices, benefits, key figures
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 21
The ideal SmartGrids world
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 22
The ideal SmartGrids world … Internet like
Weather Prediction: Sunny, Windy, 23ºC
Weather Prediction: Sunny, Windy, 23ºC
Wind leads to more electricity generation
Wind leads to more electricity generation
Service Ecosystem 2020+…
Lower electricity production
Lower electricity production
Green Electricity available
Green Electricity available
Energy production covers (estimated) needs
Energy production covers (estimated) needs
Heat generators are not needed
Heat generators are not needed
Sun leads to increased electricity generation
Sun leads to increased electricity generation Electricity Car can get
cheaper recharge
Electricity Car can get cheaper recharge
M. S
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© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 23
Settlement run Determine the load shape of the settlement area.
DER & Virtual Power Plants
Σ Wind site 1
Σ Wind site 2
Sum load curves of all wind sites Input parameters:
1. Turbines energy dataOutput parameter:
Cumulated energy data per wind site
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 24
Mobile Metering : Energy Resources Optimization due to Electrical Vehicles and Smart Metering
Cloud Metering
Gas Metering
Electricity Metering
Water Metering
Mobile meters (opportunistic connections)
IP (mostly) C
omm
unication Layer over (3G / Internet / W
imax
etc...)IP (m
ostly) Com
munication Layer over (3G
/ Internet / Wim
axetc...)
Request info / Subscribe to Services / push partial functionality (e.g. filter)
Event based (opportunistic) info
Asset mgmtAnalyticsPredictionActive Control…
Asset mgmtAnalyticsPredictionActive Control…
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 25
3. Schedule tariff change for midnight
1. Trader requests demand reduction
2. Business rules select customers and
colour changes
4. Inform customer via
message to IHU
5. Inform customer via SMS message to
mobile
Retailers “Smart Office” : Customer Centric Management
No. 25Smart OfficeSeptember 2009
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 26
Use of Display tools for empoweringConsumers
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 27
Europe runs Smarter Energy by 2020 …
The China Energy Roadmap -“Energy for Everyone”
European Energy Roadmap -“Smart Energy”
US Energy Roadmap : “Independent Energy”
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 28
To learn more …
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 29
To know more, see following SmartGridspublications
SDD
April 2006: Vision and strategy publishedFebruary 2007: Strategic Research AgendaOctober 2008: Strategic Deployment Document (SDD
without Costs/benefits)Q4 2009: SDD with costs/benefits (date to be confirmed)
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 30
To know more, see followingarticle published in « Metering International » in 2008
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 31
To know more, see following New European Commission Publication « ICT for a LowCarbon Economy Smart Electricity Distribution Networks”
© SAP 2009 / ENERTECH 09 - Maher Chebbo – Athens October 24th 2009 Page 32
To know more, see following article publishedin « Metering International » in 2008