Post on 17-Jun-2020
transcript
Experience you can trust.1
The importance of markets for the emergence of SmartGridsPier Nabuurs
i-SUP 2008
April 22-25, 2008, Bruges, Belgium
2
Overview
• Rise of “Smartgrids”
• Technical developments (context EU, national and local markets)
• Changes needed in regulation to integrate DER/RES and influence of support schemes on their integration
• Investments needed in the EU (ageing) network and business models for DER integration
3
Rise of “Smartgrids”
There are remarkable changes ahead…
… a paradigm shift
…the Third Industrial Revolution?Prof Jeremy Rifk
4
A Smartgrid facilitates generation and distributes electricity more effectivelyeconomically, securely, and in a sustainable way. It integrates innovative ools and technologies, products and services, from generation, ransmission and distribution all the way to and from consumer appliances and equipment using advanced sensing, communication, and controlechnologies.” (EPIC, San Diego, adapted)
A definition for a Smartgrid?
Characterised by:
• Two-way distribution flows• Less distinction between T & D• Customer information• Customer participation• Variability & intermittency• ‘Internet-like’
Utilising:
• Renewable Energy Sources• Micro-generation and CHP• ICT & Power Electronics• Energy storage• Transport integration
5
Where will power flow in 2020 & beyond ?
30GW of solar power in the
South ?
Ackgt TechFreep
GW of wind ower in the orth ?
Customer Interaction and Intelligent Appliances
MicroCHP and PV
plus wind variation / cloud cover / customer choice…
6
A more Internet-like power grid emerges
Central & Dispersed sources
Smart powerelectronics
Central & Dispersedintelligence
Seamless integrationof new applications
End user real timeInformation & participati
7
Technical developments
Electric utilities are cautious in the use of new technology• Long term investments• Limited competition (grid companies)• Liberalisation has made utilities more reluctant towards
innovation• Lock-in
– Distribution companies– Regulators– Technology supplier
• Lack of incentives
8
Changes needed in regulation to achieve EU/national 2020 targets• CO2 reduction
– example: carbon credits• Innovation Incentives
– Example OFGEM• Energy saving
– example: smart meters• Integration of renewables• Management of Demand
– Example Load Shedding
9
-500
500
1500
2500
3500
4500
5500
6500
7500
8500
9500
1989
/019
90/1
1991
/219
92/3
1993
/419
94/5
1995
/6
1999
/020
00/1
2001
/220
02/3
2003
/4
0ct 0
4 - A
pr05
(IFI
1st 6
mth
s)20
05/6
2006
/7
Financial Year
£0
00
* Data from 1989/1990 to 2003/2004 is the collaborative spending on R&D amongst the DNOs through a single provider.* Data from Oct 2004 - April 2005 and the last financial year (2005/2006) shows reported total IFI spend.
UK Distribution Company IFI spend on Network R&D since 1990
• c.180 projects
• Projects are initiated by the companies
• Ofgem does not‘approve’ each project
• Only one compais spending to icap
• Av. intensity is 0.27%
• Forecast benefitotal €70m (NPV
Impact of IFI Incentive
UK Distribution Company R&D trendPrivatisation
>
m >
Impact of new incentives
10
Smart metering for households
manualprocessing manual
processing
Current situation
Databasestandardmeter
Smart meteringdisplaykWh, m3, €
gateway interface, protocol
interface,protocol
smart meter Database
serviceprovider
11
Example costs and benefits in NL (G+E)
-37.5
-25.0
-12.5
0
12.5
25.0
37.5
50.0
62.5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
cost-benefit item
NPV
per
cos
t-ben
efit
item
(EU
R\h
ouse
hold
)
meters
data infra
E-savings
meter reading
call center
monthly bill
switch
competition
DR
fraud
grid faults
12
Costs and benefits per actor
-2 000
-1 000
0
1 000
2 000
3 000
4 000
5 000
6 000Con
sumer
s
Meterin
g
Compa
nies
GridCom
panie
s
TSO
Energ
ySup
plier
sEne
rgy
Produ
cers
Gover
nmen
t
(CO 2
& taxe
s)
NPV
per
act
or (M
EUR
)
13
Distributed & Demand Side Resources
• Large penetration levels require significant data management– Aggregation, scheduling, market operations, billing and settlements– Distribution voltage and power quality management, distribution
automation– Islanding and micro-grid operations
Coordinated Voltage VAr Control
Powe
r Fac
torPo
wer F
actor
14
Load shifting based on energy price
0.0
0.5
1.0
1.5
2.0
2.5
0 6 12 18 24
Time of Day (hours)
Rel
ativ
e cu
rve
(-)
Residential Customers Amsterdam Power Exchange day ahead price
Does this result in actual energy
savings?
15
Changes in Markets (Dutch case)
DTe
TenneT(E)
GTS (G)
Grid companies
regulated market(fixed rates)
Government
APX (E)
energy supplier
producer
energy trader
consumer
metering company
unregulated market(commercial rates)
metering company
16
Engagement & commitment stakeholders: a new balance to be struck
Supply Security Supply Quality
Sustainability
Reasonable Cost
trade offs
17
EU investment until 2030: 1000 billion ۥ Demand
– Growth 2%/year = +1250 TWh by 2030• Generation
– Replacement & expansion 900 GW needed by 2030– RES 500 GWpeak needed by 2030
• Transmission & Distribution– Ageing assets, expansion and RES+DG integration– 500 billion € until 2030 needed
• Markets & Regulation– Data + information need > 20 billion € investment
(conservative figure based on 100€ per connection)
18
The Transition to Smart Grids is not a simple A B !
The Transition from theClassical Grids of today
to the Smart Grids of tomorrow
There is no blue print for Point B… but there is an emerging shared Vision
The task is Europe-wide and beyond… and has considerable export potential
Every network has technical variations… but ‘country specials’ are inadvisable
….. also true for regulation!
19
Changes Ahead:
• Cost for oil & gas, and concerns for their security• Grid congestion & costs, and potential loop flows• At risk to the actions of our neighbours• NIMBY–ism and challenge to developments• Value and capability for bulk electricity storage
• Inherent energy security and reserves• Waste and Losses, and Carbon release• Taking energy (and the sector) for granted • Passive, demand only, consumers• Certainty: no longer a familiar path
MORE
LESS
20
The Elements for Change
The Transition from theClassical Grids of today
to the Smart Grids of tomorrow
Technology
Standards & Open Systems
Regulatory Frameworks
Commercial Arrangements
Manufacturers & Supply Chain
Demonstration & proving
• a Common Vision• Collaboration• ‘Societal permission’
21
The greatest business challenge?
A new emphasis:• Domestic Customers• Transport interaction• The Built Environment• The public at large
Issues for society, policy makers and regulators,not just the sector
23
Funding for SmartGrids Developments
• EC Research & Development funding– Seventh Framework Programme– ERA-NET
• National Funding opportunities– Varies, according to each MS (numerous)
• Regulator allowances for innovation– UK; the IFI (innovation funding initiative) and RPZ
(registered power zone)• Private Funding options (business models)
– Industry, pension and investment funds (banking)
24
Alignment of EU, national and regional research programs
• European Technology Platform SmartGrids• ERA-net SmartGrids because 80% of the public RTD
budgets come from these national programs and:– the grid issues have no MS-borders– grid issues are dealt with differently in each MS
(often resulting in a limited effort to solve it)– the grid is key (facilitator) to an affordable, reliable and
sustainable energy supply• SmartGrids Association
25
Summary and Conclusion
• Large impact of RES on grid structure and operation SmartGrids challenge
• New technology and increasing engagement and commitment of stakeholders is needed:– adequate regulation– establishment of funding / support mechanisms – new business models for investment– demonstration & deployment
… to make it FLY…… on the FLY…