Smart Grid Gotland electricity network of the future Johan Söderbom, R&D manager Smart Grids, Vattenfall AB

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1 Smart Grid Gotland electricity network of the future Johan Söderbom, R&D manager Smart Grids, Vattenfall AB Smart Grid Gotland

2 Vattenfall and the smart grid In 2030 the Smart Grid is the technical arena where our goals are realised To meet EU s climate commitments by optimal use of sustainable energy sources in electricity generation Environmentally and economically rational use of electricity in society Electricity as the reliable and available energy carrier A transition towards sustainable road transport To take action on future business opportunities 2 Smart Grid Vattenfall

3 Smart Grids Evolution Next steps SmartGrids Evolution Initial phase 1-3 years Emerging phase 3-7 years Mature phase 7-10 years Small pilots for islanding and energy storage LV monitoring & control Energy efficiency (simulation tools) Integration of small scale generation Smart (MV) substation Improved AM and Operation system tools Integration of large scale wind farms Smart Meter integration with operational system Consumption feedback Distribution Automation Smart Meters for billing Integration electric vehicles (EV) Demand Response Integration of PHEV Islanding Energy storage Condition based maintenance (Asset Management) R&D projects Implemented Time 3 Smart Grid Vattenfall

4 Smart Grid Gotland Upgrade of an existing grid Objectives Cost efficient integration of wind power in an existing distribution system Show how new technology can improve the power quality in a rural grid with large quantities of installed wind power. Make it possible for customers to actively participate on the electricity market in order to create flexibility 4 Smart Grid Vattenfall Financed by the Swedish Energy Agency and an industrial consortium: Gotland Energi AB Vattenfall AB ABB SVK Schneider

5 Smart Grids Gotland technical platform Active homes About 2000 households will get signals about prices and can adjust the consumption Automation and control New SCADA/DMS systems for real-time grid conditions and automated supervision, control, optimization and management of the network Smart grid Lab The research plattform Active industries About 30 industries will receive price signals and can adjust the consumption Upgrade of distribution network Solutions to improve reliability: a number of disconnectors for automatic isolation of faults will be installed. 5 Smart Grids Vattenfall R&D Program October 2012 Prosumers Customers producing own electricity. Surplus is fed into the network. Environmentally friendly transformers The latest technology to minimize land usage and other possible influence on the environment. Energy storage Batteries with 3,6 MW capacity during 5 min

6 Facts about Gotland About inhabitants Currently 170 MW installed wind Power, 195 MW maximum No other permanent generation capacity The load on Gotland varies between approx MW HVDC link to mainland; bi pole 2*130 MW 6 Smart Grid Vattenfall

7 Challenges on Gotland The generation exceeds the demand several hours a year One of the HVDC links shall always be in import mode Maximum installed wind generation 195 MW - Restriction based on risk level in the system e.g. availability of reactive compensation etc Local bottlenecks in the grid on the island ~70 MW Challenge in this case is to manage the excess generation 7 Smart Grid Vattenfall

8 Energy balance over the HVDC link 5 min average values, till Six of the larges export peeks (dips in the chart): 60 MW 8 Smart Grid Vattenfall

9 Approach to address the challenge BESS as a support for the Demand Side Participation Approach DR (60 min ahead) Dynamic pricing (24h ahead) Ba=ery energy storage The main challenge is to be able to absorb excess wind generation Three tools: - Dynamic pricing (day ahead) - Demand response (within the day), - Battery Energy Storage System ( real time ) BESS to be utilized for other purposes 9 Smart Grid Vattenfall

10 How will customer interact Automatic control Price Information day ahead DR signal advance warning Possibility to override control Electricity price Gray: more voli-le spot price Day ahead spot price with local wind component Higher incenfve for load shiiing Manual control Shifting load themselves based on day ahead information in app. Energy efficiency (bonus) Real time consumption Finding energy thieves Energy expert support 10 Smart Grid Vattenfall Equipment is based on an existing product from Vattenfall EnergyWatch

11 Interaction between the applications Expected excess generafon that must be handled by load shiiing according to forecast Dynamic pricing and DR (Increased consumpfon) according to forecast DeviaFon in forcast Error in forecast (generafon consumpfon) The Ba=ery absorbs errors in forecast 11 Smart Grid Vattenfall DR (~60min ahead) Dynamic pricing (24h ahead) BESS (Ba=ery Energy Storage System)

12 Verfication in real tests starting 2014 Status overview Customer contracts being signed Price signals and communication channels developed Customer equipment developed Simulations networks and customer interaction Hourly metering introduced SCADA/DMS system under installation Battery energy storage specified Hypothesis DR (~60 min ahead) Dynamic pricing 1 (24h ahead) Batterilager Real results? 12 Smart Grid Vattenfall

13 Conclusions Several services necessary to address local imbalance problems Energy storage need to be complemented by other services to justify investment in a battery storage facility Implementation of customer market participation challenging under commercial conditions Smart meter platform necessary roll out required 13 Smart Grid Vattenfall

14 Thank you! Johan Söderbom Manager R&D for Distribution and Sales 14 Vattenfall Smart Grid AB Gotland