When Grids gets smart Claes Rytoft

Senior Vice President ABB

World Forum on Energy Regulation IVAthens, Greece

October 18 - 21, 2009

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Electricity consumption set to double by 2030

0

3'000

6'000

9'000

12'000

15'000

18'000

0

5'000

10'000

15'000

20'000

25'000

30'000

35'000

40'000

1990 2004 2015 2030

in T

Wh

1990 2004 2015 2030

10,000

20,000

30,000

40,000

Te

raw

att

ho

urs

(T

Wh

) • Avg. global annual growth rate 2.5 %

• Highest growth rate in Asia :4.5 %

• China to consume more than US before 2015

Electricity consumption in kWh per capita

World avg: 3,240

Electricity consumption growth/yr 2006-30 in %

0% 1% 2% 3% 4% 5%

India

China

Middle East

Brazil

North America

OECD Europe

Japan

Source: IEA,

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Energy efficiency and renewable power canprovide almost 80 percent of the targeted reduction

An

nu

al

em

iss

ion

of

CO 2

in G

iga

ton

s

SourceIEA 2008

550*policy

scenario

* ppm concentration in the atmosphere

20

25

30

35

40

45

2005 2010 2015 2020 2025 2030

Reference scenario 550 policy scenario 450 policy scenario

450*policy

scenario9%

14%

23%

54%

Energy efficiency

Renewables

CCS

Nuclear

An

nu

al

em

iss

ion

of

CO 2

in G

iga

ton

s

SourceIEA 2008

550*policy

scenario

* ppm concentration in the atmosphere

20

25

30

35

40

45

2005 2010 2015 2020 2025 2030

Reference scenario 550 policy scenario 450 policy scenario

450*policy

scenario9%

14%

23%

54%

Energy efficiency

Renewables

CCS

Nuclear

Climate change concerns need to be addressed

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

More renewable power generation

Impact on grid stability and efficiency

Energy efficiency

Distributed and intermittent generation

Customer pricing expected to foster demand responses

Grids of the future will be different from those of the past Open for all types and sizes of generation technologies

Integrating demand side in system operation

Fundamental changes in power supply are coming

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Evolution of grid designFrom traditional to future grids

• Centralized power generation• One-directional power flow• Generation follows load• Operation based on historical

experience• Limited grid accessibility for new

producers

• Centralized and distributed power generation

• Intermittent renewable power generation• Consumers become also producers• Multi-directional power flow• Load adapted to production • Operation based more on real-time data

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al g

rid

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gri

ds

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Impact of Smart Grids - example of challenges

Generators: – Optimize ‘spinning reserves’ with

increased amount of renewables

Transmission utilities:– Maintain grid stability with increased

amount of renewables– Reduce transmission losses

Distribution utilities:– Maintain protection system integrity

with increased amount of renewables– Demand Response and real time price

information– Reduce distribution losses

Consumers: – Optimize electricity consumption –

home automation (incl. local generation PV, vehicle,….)

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Impact of Smart Grids – example of challenges

Source : Statnett

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Balancing the need for more power with lower climate impact

Demand response

Connectinggrids

More power

Renewablesintegration

Plug-invehicles

Power flowcontrol

Key enabler:ICT - Information & Control Technologies

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Demand response

ConsumerDSOHome Energy Management

System

Electrical connection

Bi-directional communicationNCC (control room)

• Consumer interaction and services

• Improved load management

• Enhanced reliability

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Example SmartGrid projects from ABB

BorWin 1

Off shore wind park HVDC Grid Connection, Germany-Lowers CO2 emissions by ~1.5 mill. t/yr by replacing fossil-fuel generation

2000 km HVDC line to connect hydro power, China-93% efficiency

-Savings vs AC line enough to supply power to more than 1 million consumers in China

PV Solar plant in Spain

- Produces 2.2 GWh/yr, displaces 2,200t greenhouse gas emissions p.a.

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Surface of Sahara9 million km2

Area needed to produce all European

electricity18 000 km2

Area needed for all world energy 650 000

km2

Connecting large scale solar-based generation eg, deserts, with distant load centers via an efficient

transmission system like HVDC

Future scenario:Solar power from Sahara

Claes Rytoft - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009

Do smart grids matter?

Source: DoE and NETL