Smart Grids Hype or Reality? VTT Technical Research Centre of Finland Klaus Känsälä

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1 Smart Grids Hype or Reality? VTT Technical Research Centre of Finland Klaus Känsälä

2 2 CONTENT Introduction, VTT in Brief Smart Grid what is it? What is hype? What happens after hype? VTT s Local energy production test site VTT research topics Contact details

3 3 VTT Group in brief Turnover 292 M (2010) Personnel 3,167 ( ) Customer sectors Biotechnology, pharmaceutical and food industries Electronics Energy ICT Real estate and construction Machines and vehicles Services and logistics Forest industry Process industry and environment Focus areas of research Applied materials Bio- and chemical processes Energy Information and communication technologies Industrial systems management Microtechnologies and electronics Services and the built environment Business research VTT s operations Research and Development Strategic Research Business Solutions IP Business Group Services VTT s companies VTT Expert Services Ltd (incl. Labtium Ltd, Enas Ltd) VTT Ventures Ltd VTT International Ltd VTT Memsfab Ltd

4 4 Smart Grid A smart grid is a next generation electric power network that incorporates information and telecommunication technologies into a electric power network that enables real time, 2 way communication exchange to power suppliers, the electric power market and consumers.

5 5 What is hype? Hype is then defined as: Deception; especially, loud, exaggerated promotion or publicity. Definition taken from Webster s Unabridged Dictionary If we look at the real achievements in Smart Grids against the publicity and promotion of the topic we can see that there is lots of hype.

6 6 Hype -examples E-car; a mobile power supply to network - no standards for energy supply to network only for charging - price of charging/discharging the battery still very high Micro power plants: - no infrastucture for control or communication - not wanted by the energy suppliers - Payback time???

7 7 Themes and Future Opportunities Theme 1: Intelligent Energy Role and importance of Grid Services increases dramatically: Example: Grid Services - ESCO Theme 2: Wise Consumption & E-Community Enablers for sustainable consumption and production: Example: Residential production and Aggregators Theme 3: Reliability in Value Chain From single cadgets to an integrated system: Example: Convergence of Grid, Metering, and Home Automation

8 8 Theme 1: Intelligent Energy Distributed energy production and green technologies will cause variation in energy production that forces all players in the chain to adapt their behaviour. Balancing the production and consumption will affect to all players in energy markets. Converging energy markets guides players to avoid building national strategies based on traditional high peak production. Instead of that the consumption will be controlled heavily using temporary energy storing and high price control. Keywords Controlled balance Changes expected Aggregators & Mediators Enabling ICTs Smart grids Dynamic tariffs Smart metering Consumption forecasts Energy trading Demand-Response control Pre-paid energy Predicting production and use Consumption Management Energy storages Accessory business Energy storage business Smart manufacturing Smart buildings Lighting control Smart lighting Data of manufactured components

9 9 Intelligent Energy Example: Grid Services Electric services Company The controlling and optimizing element between consumers and producers Profiles users, assists in energy saving Based on profiles, acquires cheapest electricity for end-users Controls and estimates end-user behavior, reports this to producers Business model: flat-rate, fixed price per month per apartment Collects data from energy use Reports analysis about energy use Suggests and/or forces changes in energy use Suggests and/or controls local energy storage use Gives estimations of near future (hours, days) prices Acquires energy for end-users

10 10 Theme2: Wise Consumption & E-Community The power of social media has been shown in many new trends. It can drive changes in bringing out new ways of living. Wise energy consumption will be important in the future, and the power of virtual communities will be remarkable. Intelligent buildings enable people to adjust their energy consumption in totally new ways. The connection between intelligent building/districts and energy production must be in control to enable balance between energy production and use. Keywords Smart E-stores Energy for crowds Energy AppStores Enabling active consumers Smart metering Benchmarking, CO2 Changes expected Energy Service Companies Energy Service Communities Smart metering solutions Building and district management solutions Social media Access control Electricity Information technology Performance, comfort, services, functionality Automation Lighting Security & safety Service platform Entertainment Measurements Communication HVAC Machinery... etc. Gateway Fire brigade Maintenance Monitoring Operation Police Security guard etc. Remote services Internet Renovation Architecture design Live Building Model Structural design Facility management BS design Construction

11 11 Wise Consumption and E-Community Example: Residential Production and Aggregators Element between small-scale production and energy markets Agroproduction Smart +Energy Cities, other residential systems 0 and + Energy buildings Strong community expected, consumers&prosumers Challenge: Energy storage technology critical Business New business, competes with large-scale energy production Community, locality, brand, innovation

12 12 Theme 3: Reliability & Security in Smart Grid The intelligent, proactive, and efficient properties of Smart Grid will require a highly reliable power generation, transmission, and distribution architecture together with consistent data communication and other ICT systems. Proactive flexibility, stringent monitoring and control, comprehensive fault protection, and maximal operational safety and security are of the utmost importance when it comes to fully bringing to bear all strengths and capabilities of the Smart Grid. Keywords Smart Grid ICT Architecture Energy Management Systems System Integrity Protection System Communication solutions Security/Privacy/Trust Changes expected Security/Privacy/Trust providers Smart Grid Asset management and control Automation in low-voltage systems Network monitoring Reliability Smart sensors

13 13 Reliability & Security in smart Grid Example: Convergence of Grid, Metering, and Home Automation Consumer perspective as a business driver Automation and monitoring on low-voltage networks Integration of building home/office energy automation No clear winning technology solutions Role of standardization essential Technologies meet business synergy required 0- ja + buildings drive automation to buildings Business: Services for automation maintenance Services to control consumption in micro environments Possible newcomers: existing service companies (broadband, security, energy)

14 14 VTT SmartGrid Testbed Integrated Solar&Wind powerplant in VTT Oulu premises One apartment located to the same building with full scale research facilities for living lab Electric car for mobility Heavy Duty database support with online measurements and control facilities Online internet connectivity for demonstrations and SW integration 14

15 15 VTT s Local energy production test site Electric distribution network Wind mill 5,5 kw installed on roof top Solar energy 3,8 kw. Inverter 400V ~3 phase 15 kw Energy storage 28,8 kwh Home User Interface Electric mobile Local energy production

16 16 Our focus Small scale power plants control and integration to virtual units M2M; connectivity in the grid Providing support for databased simulation Pilot solutions in data processing and data mining for SPOT applications Applying standards for local grid based power plants Stydying systems for living neigbourhoods in SmartGrid projects Systems for improving energy efficiency in small houses anf traffic

17 17 Contact and additional Information Mr. Klaus Känsälä

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