A vision of Smart Grid deployment at ENERGA-OPERATOR SA

ENERGA-OPERATOR SA as a power distribution system op-erator is working on preparing its network for current and fu-ture challenges facing the energy sector. The strategy will be based on a smart grid development plan to be carried out by

ENERGA-OPERATOR SA. The article describes key elements of the smart grid implementation vision which is the first stage of the work on the smart grid development roadmap.

Sławomir Noske | Adam Babś | Krzysztof Madajewski

INTRODUCTION

According to research – including but not limited to re-port “Impact of Smart Grid Technologies on Peak Load to 2050 “, compiled by the International Energy Agency (Fig. 1) – it is indicated that in the European Union, in the per-spective of 2050, the market share of renewable energy sources will have a critical impact on grid development.

to provide reliable, economically viable and sustainable electricity supplies of electricity.

This will entail the need to deploy Smart Grid solu-tions on a large scale, thus procuring a power system which will be:• optimal in terms of infrastructure use• proactive, and not only responding to occurrences of

critical situations• distributed regardless of geographical or organiza-

tional constraints• integrated, combining a variety of systems• self-healing and adaptive.

Distribution systems operators (DSOs) will have to cope with resulting challenges and expectations, de-veloping their own strategies, taking into account dif-ferences between each DSO in terms of their structure and management, as well as differentiated local circum-stances.

ENERGA-OPERATOR SA, as part of preparing a road map the Smart Grid development, has completed the first stage of the work, specifying a vision of deploying state-of-the-art solutions in its grid and its extension up to the Smart Grid level.

Work on this document resulted directly from the strategy of ENERGA-OPERATOR SA. The strategy envi-sions the company’s development through focusing on the following three pillars:• innovations – search for new, original solutions both

in the area of development of its assets, as well as re-fining its organization

• investment – capital expenditure projects aiming at the upgrade and development of its distribution assets

• initiative – efforts towards the widest possible involve-ment of the company’s staff in its development.Analysis of the current condition and determining the

key challenges that ENERGA-OPERATOR SA faces allow determining a vision of Smart Grid development in the area of the company’s business.

The sources of problems already include, or will in-clude in the near future, the following:• social and environmental constraints to infrastructure

deployment• distribution grid’s inadequacy for future functions,• MV and LV grids’ insufficient observability

The developmen of the power sector in the European Union, including Poland, in the coming years will depend on sustainable development, and will be based on com-mon use of renewable energy sources and increased en-ergy consumption efficiency. Changes in the generation structure, including the widespread use of distributed energy sources, will result in:• growing importance of large grids for connection of

load centres and large centralised renewable genera-tions

• emergence of small local grid clusters that provide an-cillary services including decentralized local genera-tion, energy storage, and active consumers

• two-way flow of information and electricity• need for dynamic management of generation and

load alike.A future power grid will have to encourage and inte-

grate in a smart way actions and behaviour of genera-tors, consumers, and other energy market players, so as

Fig. 1. Impact of key elements on Smart Grid development in the European OECD countries

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Growth in electricity demand

Increase in peak load

Deployment of renewable energy sources

Use of Evs PHEVs for peak management

Low impact high impact

medium impact verty high impact

2010 2020 2030 2040 2050

Abstract

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Sławomir Noske, ENERGA-OPERATOR SA | Adam Babś, Institute of Power Engineering, Gdańsk Division |Krzysztof Madajewski, Institute of Power Engineering, Gdańsk Division

• local accumulation of dispersed generation and the associated change in the power transmission direc-tion (from DSO to TSO)

• projected generation capacity deficit, probable after 2016.

STAKEHOLDER EXPECTATIONS FROM DSOAnother element which was considered in drawing up the Smart Grid development vision, were stakeholders’ expectations from the distribution grid operator.

The analysis and expert work have allowed defining the stakeholders’ key expectations from OSD, which are presented in the table below.

CHALLENGES FOR ENERGA-OPERATOR SAENERGA-OPERATOR SA and other distribution grid op-erators alike are now facing many challenges. Each of these entails the need to undertake specific actions:• to improve the reliability and security of electricity • supply and to ensure electricity’s high-quality

• to optimize the use of existing infrastructure and or-ganizational resources

• to improve the distribution grid’s energy efficiency,• to provide opportunities for an increased active role

of consumers in the management of electricity con-sumption and generation

• to integrate distributed sources and system • balancing in the conditions of a growing share of • distributed and dispersed generation• preparation of technical and organizational solutions

for DSO involvement in system balancing on the dis-tribution grid level

• improved accuracy of distributed generation output forecasts

• system’s preparedness for massive implementation of electric vehicles a significant part of these challenges can be met by implementing new innovative solutions related to Smart Grid development.

Subject Expectations

Consumers • higher reliability - fewer power supply interruptions• shorter after fault recovery time• better information on outages and after fault recovery times• improved quality of customer service by the DSO and seller• improved quality of supplied electricity• lower costs of the distribution and transmission service

DSO owner • higher ROI• increased operational efficiency• optimisation of capital expenditures

Regulator (ERO) • improved quality of services provided to consumers• increased operational efficiency• compliance with recommendations, transparency and predictability of operations

Transmission system ope-rator (PSE Operator)

• coordination of grid development plans considering the dynamic development of distribu-ted generation

• implementation of a new ancillary service provision model considering the new generation distribution in the system and the new role of active consumers

• implementation of a new system dispatch model, and of new standards of TSO power dispatch with DSOs

• minimizing the adverse system effects resulting from variability in the direction of power flow between the DSO and TSO grids

Investors in distributed generation development, incl. RES

• efficient and effective procedures of switching decisions• adjustment of the grids and dispatch systems infrastructure to investors’ conclusions and

expectations• elimination of the attributable to DSO causes for constraints to outputting power from

distributed generationSociety, public opinion • grid’s resiliency to damage and weather conditions

• reduction of the burden on surrounding environment• reduction of CO2 emissions• efficient and credible notification of the effects of implemented changes

Electricity sellers • better information about supply interruptions, transmission capabilities, and grid opera-tions

• option to ensure two-way communication with customers using the DSO infrastructure• option to obtain detailed data on electricity consumption, including consumption profiles

Technical solution vendors • clear signals from DSOs as to expected capex project directions• transparent specifications of services and equipment to be procured• transparent schedule of expected procurement

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A vision of Smart Grid deployment at ENERGA-OPERATOR SA

SMART GRID COMPONENTSFrom the perspective of DSO, and therefore also of EN-ERGA-OPERATOR SA, a Smart Grid consists of distribu-tion and ICT infrastructure elements so far in use, but also new solutions that appear along with technological progress. These include:• power lines and substations• measuring systems and control devices• telecommunication infrastructure and data collection

and exchange platforms• grid management and business process support sys-

tems.

Power lines and substationsConventional grid infrastructure primarily included

110 kV (HV) lines, medium voltage (MV) lines, and low voltage (LV) lines, both cable and overhead, as well as switching substations that cooperate with the national 400 kV and 220 kV transmission grid and account for the main supply points for the 110 kV grid, and also substa-tions in the MV grid where electricity is transformed to low voltage for individual consumers’ supply.

This infrastructure’s upgrade and extension will take into account Smart Grid deployment related require-ments. Therefore, it will not be a simple multiplication of existing models, but implementation of advanced tech-nical solutions. These will enable supervision of equip-ment, self-diagnostics, monitoring, and adjustment to heavy weather conditions (resilience to weather chang-es). Technical standards then developed should accept and promote deployment only of equipment that meets the new technical requirements, so in the perspective of a few years the grid infrastructure will support Smart Grid solutions.

Measuring systems and control devicesThese elements are designed to measure the grid

status, and implement autonomous automatic functions related to the assurance of continuity and reliability of electricity supply to consumers. In general, this class of systems and devices is referred to as a substation’s “sec-ondary circuits”, and their most important part are the automatic protection systems. These include sensors and convertors of electrical (voltage, current, power) and non-electrical (temperature, pressure) parameters, auxil-iary relays, and control devices.

Smart Grid of the future will be provided with many more such systems than now, especially in medium and low voltage grids. The most important change will be widespread installation of smart electricity meters at each consumer by 2020, capable of measuring many electrical values.

Telecommunication infrastructure and data collec-tion and exchange platforms

The telecommunication infrastructure will be a key Smart Grid element. It will ensure the ability to transfer significant data volumes from consumers and devices to decision-making centres as well as in the opposite direction. In this way it will deliver information enabling

grid management and control, as well as implementa-tion of functionality that requires information exchange with end consumers, i.e. demand management and load control.

Telecommunications infrastructure development will be one of the most important Smart Grid deployment-related undertakings, and the functions implemented will become the basis of the new grid’s operations. Data acquisition and sharing with other systems and entities (power companies, consumers) will be an essential re-quirement for Smart Grid. This refers to data such as:• data common for the entire company, stored at a cen-

tral database (data warehouse)• application oriented data (system analysis, engineer-

ing calculations)• local data of specific acquisition and sharing rate re-

quirements, mostly used for advanced technical real-time applications, such as system automation and control.Essential differences compared to the currently col-

lected data will refer to the following issues:• enormous volumes of data that will have to be man-

aged• the need to adopt a single and consistent data model

suitable for various needs, and for exchange with oth-er entities in particular

• the need to ensure data security and confidentiality, including resistance to catastrophes of large magni-tudes

• the need to ensure high data quality and synchronisa-tion.

Grid management and business process support systems

Grid management and business process support sys-tems are currently operated as stand-alone and loosely interoperable systems. Smart Grid deployment will entail the following changes:• integration of applications within a consistent IT envi-

ronment based on new ICT technologies• development of new applications dedicated to Smart

Grid analysis and business process support-related needs

• assurance of IT security to an extent adequate to fu-ture needs.

• The main change areas will refer to such groups of applications, as:

• SCADA systems and grid management systems• DMS systems, including those featuring the grid fault

location and isolation option and remote grid recon-figuration

• GIS geographic information systems, and grid assets management system

• electricity metering systems for individual and indus-trial consumers

• advance systems of weather, statistical, and measure-ment data-based forecast that enable resource use optimisation

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• engineering support and assets (infrastructure) man-agement systems.

SMART GRID DEVELOPMENT PRIORITIESGiven the current issues arising from the distribu-

tion grid condition, challenges expected in the coming years, as well as from the legal conditions, ENERGA-OP-ERATOR SA’s actions related to Smart Grid development should focus in the near future on the following five ar-eas indentified in the Smart Grid deployment vision:1. Active customer – the provision of conditions for

stimulation of consumers’ activity in the area of elec-tricity consumption and generation1.1. Smart metering systems1.2. Demand management infrastructure1.3. Grid infrastructure and procedures adjustment to

distributed generation1.4. Infrastructure and management structure for

electric vehicles2. Quality of supply – the improvement in reliability of

customer supply and quality of supplied electricity2.1. Distribution grid’s widespread automation on the

MV level2.2. Smart solutions for 110 kV/MV substations2.3. Increase in grid observability

3. Smart Grid control – the advanced grid management and control in the conditions of dynamic development of distributed generation3.1. New model of operations control and dispatch3.2. Load management systems3.3. Smart management of distributed generation3.4. Innovative systems of grid planning and manage-

ment support4. Smart DSO – the optimal use and development of

DSO asset and organization resources4.1. Distribution grid development4.2. Grid assets management systems development4.3. Development of grid operation services manage-

ment tools5. ICT technology – Development of technology for

Smart Grid control5.1. ICT network for Smart Grid5.2. Service oriented information architecture5.3. Standardisation of ICT solutions5.4. IT security

EXPECTED BENEFITSImplementation of the Smart Grid concept will increase

the power system’s flexibility, and will allow benefits for all participants in the value chain, from generators, grid operators, service providers, up to end users and society.

Benefits from the Smart Grid concept implementa-tion assigned to individual stakeholders are presented in the table below.

MAIN BARRIERS TO IMPLEMENTATIONMain barriers identified by ENERGA-OPERATOR SA,

which may impede the smart gird concept implementa-tion include the following:

• social resistance to the deployment of new technolo-gies

• incompatibility and instability of regulatory arrange-ments

• rapid obsolescence of technologies• uncertainty with regard to standards• large-scale investment and the associated risks aris-

ing from unsuccessful investment• need to prepare staff to implement Smart Grid solu-

tions.Efficient and effective implementation of new smart

solutions and development of power grids tailored to fu-ture needs require many changes in the existing legis-lative, regulatory, market, and technical solutions. Their main aim should be to create better regulatory condi-tions for DSO investment of considerable funds in Smart Grid development.

The scope of the necessary regulatory amendments is broad; the most relevant postulated changes include the following:• actions at the EU and national level that encourage

implementation of long-term solutions to ensure sta-ble and appropriate rate of return from investment

• substitution of the existing cost only based regula-tory model with one which considers electricity supply quality and provides DSOs with an incentive for inno-vative actions

• assurance in tariff of return of the investment in Smart Grid solutions’ development

• provision of a redistribution mechanism of the social benefits from Smart Grid deployment that favours en-tities that invest in such solutions and are involved in demand response management related projects

• definition of the division of roles and responsibilities between the transmission operator and distribution system operators, especially with regard to grid op-erations management and supervision in the centrally dispatched network

• changes in the energy market model that encourage consumers towards active and flexible behaviour with regard to energy consumption

• provision of solutions that would enable adjustment of energy supplier offerings to individual consumption profiles and consumer preferences

• regulatory support to development of the ancillary ser-viced market, with regard to both demand response management and distributed sources management.ENERGA-OPERATOR SA intends to actively partici-

pate in efforts to support changes in all the abovemen-tioned areas.

SUMMARYThe “Vision of Smart Grid deployment at ENERGA-

OPERATOR SA”, some selected excerpts of which are presented here, is the first step towards developing a detailed road map of the Smart Grid development. Sub-sequent planned actions are meant to lead to developing the road-map by the end of 2012. It is planned to leverage in these works on the expertise and experience of EN-

Sławomir Noske, ENERGA-OPERATOR SA | Adam Babś, Institute of Power Engineering, Gdańsk Division |Krzysztof Madajewski, Institute of Power Engineering, Gdańsk Division

Special Issue – Smart Grid 29

ERGA-OPERATOR SA staff, as well as to utilise the sup-port of external companies and R&D organizations, and

Stakeholder Expected benefit and its fulfilment

Electricity consumers

• reduced number of consumers not supplied during fault due to extended remote grid monitoring, control, and defect fault location

• reduced fault frequency due to grid improvements owing to better information on its components’ condition

• significant reduction of grid fault location and liquidation (repair)• reduced number of outages due to better quality of dispatcher’s decision-making

based on better grid obeservability• improved quality of supplied electricity• availability of efficient sharing of fault location and type of data with consumers

Electricity sellers and other mar-ket players

• availability of new product and service offerings, including, but not limited to, de-mand response management programmes

• improved customer service quality in terms of access to precise data on electricity supply and consumption

Power system

• optimal grid development taking into account the dynamic development of distribu-ted generation

• option to implement a new, more optimal model of ancillary service provision con-sidering the new generation distribution in the system, and the new role of active consumers

• option to implement a new more optimal model of system operations dispatch, and of power dispatch interaction standards

• minimizing the adverse system effects resulting from variability in the direction of power flow between the DSO and TSO grids

Investors in distributed genera-tion sources

• adjustment of the grids and dispatch systems infrastructure to investors’ conclu-sions and expectations

• reduction of the causes of constraints to outputting power from distributed genera-tion attributable to DSO

also those with international experience in implementing similar projects.

A vision of Smart Grid deployment at ENERGA-OPERATOR SA