Helsinki Annual Program Report 2 nd Funding Period

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1 Helsinki 2012 Annual Program Report 2 nd Funding Period

2 Annual Program Report 2 (58) Execut ive Summary The aim of the Smart Grids and Energy Markets (SGEM) research program ( with five Funding Periods) is to develop globally applicable smart grid solutions that can be demonstrated in full scale utilising Finnish infrastructure. At the same time, an internationally networked research environment will accumulate the know-how of the world-leading ICT and smart grid providers in Finland. The core elements of the research, with corresponding Work Packages (WP) are: smart grid drivers and scenarios, market integration and new business models (WP1 & WP7) future infrastructure of power systems (WP2 & WP3), active resources of the smart grid (WP5), customer interface for the smart grid (WP4), and intelligent management and operation of smart grids () The SGEM program consortium consists of 20 industrial and 8 research partners. The industrial partners consist of 6 technology providers, 5 local Distribution System Operators (DSOs), Finnish national Transmission System Operator (TSO) Fingrid Oy, and 8 companies operating in the ICT sector. The program is scheduled for 5 years with a total budget of 56 M. The SGEM program structure was reviewed for the 2 nd Funding Period (2FP), and the original 27 WPs were merged into seven larger WPs. A separate WP leader was nominated for each WP to strengthen the internal management of WPs. The restructuring enhanced the collaboration between partners. When comparing with the 1 st Funding Pedior (1FP, ) and 2FP, the latter had more common activities and deliverables. In general and according to the original plan, the deliverables of the 2FP include more practical and concrete results than the 1FP. Many practical results were also demonstrated with real world pilots, which in the program are called Proof-of- Concepts. In WP1 the smart grid roadmap was revised based on the large web survey, which provided valuable information for the future planning of the program. In WP2 the research around the LVDC network continued, and the first Proof-of-Concept is currently in the installation phase in the network of Suur-Savon Sähkö Oy. In phase earthing systems research, the first invention disclosure of SGEM was filed. The research on regional high voltage networks in WP3 focused on fault current limiting technologies and the capacity of demand response in mitigating the reserve requirements, and indicated the large impact of smart grid technologies on the outage and sag costs. In WP4 Demand Response (DR) was on the focus. The technical infrastructure for achieving DR is now more closely specified and the first Proof-of-Concepts are expected during the 3rd Funding Period (3FP). In the 2FP smaller piloting was already carried out on the required intelligent customer gateway device.

3 Annual Program Report 3 (58) Active resources were investigated in WP5, and laboratory setups enabling micro-grid operation with generation units and energy storages connecting to the same DC link were tested. Intelligent management and operation of smart grids is on the focus of. The key achievements include a clearer vision of the wireless communication concept for smart grids utilising the 4G/LTE technology. In addition to Proof-of-Concepts in Self-Healing networks, continuation of the islanding operation in the island of Hailuoto, improved application of Automatic Meter Reading (AMR) measurements in both network planning (more accurate estimations on network losses) and in network operation (fault identification in LV networks). In WP7 energy market research focused on the conflicting interests of different market players in the smart grid environment. Novel network tariffs and business models have been drafted and their feasibility investigated. In international venues most of the activities were related to the European Electricity Grid Initiative (EEGI). SGEM program participated in the preparation of EEGI by defining the requirements for EEGI functional project families, and the criteria for EEGI projects. Concerning international cooperation, the target of SGEM program is to create scientifically high quality new information and practical Proof-of-Concepts, that would enable program parties to have significant role in future large scale smart grids demonstrations e.g. within EEGI. Financially the program remained slightly behind the budget of the program. 91% of the overall budget was spent, and 88% of the planned resources were used. The start of 2FP activities was delayed due to a delayed funding decision, but the consortium was able to almost catch up with the budget. 76% of the planned develirables were finalized, which is not the optimal result when comparing to percentage of resource usage. Most of the unfinished deliverables are in review phase, and they will be finalized during H1/2012. In this aspect the program is well on track.

4 Annual Program Report 4 (58) Contents Executive Summary... 2 Summary of partner budgets and accumulated costs... 5 Summary of resource usage... 7 Results status of deliverables... 7 Statistics of publications... 8 Detailed WP level results... 9 WP1: Role of Smart Grids and Energy Market... 9 WP2: Future Infrastructure of Power Systems 1: LV&MV WP3: Future Infrastructure of Power Systems 2: HV WP4: Active Customer, Customer interface and ICT WP5: Active Resources: Distributed Generation, Electric Vehicles, Energy Storages : Intelligent Management and Operation of Smart Grids WP7: Energy Market APPENDIX A: List of publications... 32

5 Annual Program Report 5 (58) Summary of partner budgets and accumulated costs Percent of the 1FP+2FP budget Reported amount ( ) Company Resulted 1FP Resulted 2FP Resulted 1FP+2FP Budget 1FP+2FP Status 1FP+2FP ABB Oy 78,8 % 62,4 % 70,4 % Aidon Oy 64,8 % 7,5 % 23,6 % Alstom Grid Oy 77,2 % 110,6 % 94,2 % Oy Cybersoft Ab N/A 153,5 % 153,5 % Elektrobit N/A 99,1 % 99,1 % Elenia Verkko Oy 95,8 % 60,8 % 77,3 % Empower Oy 123,3 % 124,4 % 123,9 % Emtele 102,3 % 29,3 % 100,0 % Fingrid Oyj 55,4 % 82,7 % 72,2 % Fortum Sähkönsiirto Oy 94,7 % 29,3 % 62,3 % Helen Sähköverkko Oy 51,7 % 28,5 % 41,2 % Nokia Siemens Networks Oy 102,4 % 81,5 % 93,5 % Tekla Oyj 100,0 % 65,4 % 85,8 % TeliaSonera N/A 57,0 % 57,0 % There Corporation N/A 43,1 % 99,8 % Suur-Savon Sähkö Oy N/A 67,8 % 67,8 % The Switch Drive Systems Oy 106,6 % 98,1 % 102,4 % Vantaan Energia Sähköverkot Oy 94,3 % 106,9 % 98,6 % Viola Systems Oy N/A 10,3 % 19,0 % Industry total 96,7 % 73,0 % 87,5 % Industry share of total 58,4 % 56,4 % AALTO 99,9 % 86,7 % 93,0 % LUT 87,6 % 85,5 % 86,6 % MIKES 84,9 % 93,8 % 92,0 % Tampere University of Technology 91,2 % 101,8 % 97,1 % University of Eastern Finland 117,5 % 86,0 % 95,1 % University of Vaasa 93,5 % 95,4 % 94,5 % VTT 93,3 % 105,5 % 100,0 % University of Oulu / CWC N/A 101,9 % 101,9 % Research total 92,8 % 96,9 % 95,0 % Research share of total 41,6 % 43,6 % Grand Total 95,2 % 83,4 % 90,6 % FP: 1 st Funding Period FP: 2 nd Funding Period

6 Annual Program Report 6 (58)

7 Annual Program Report 7 (58) Summary of resource usage 2FP Plan (person months) 2FP Result (person months) 2FP Result (%) WP ,3 119 % WP2 112,75 77,05 68 % WP3 99,5 74,87 75 % WP4 211,7 197,99 94 % WP5 134,85 129,85 96 % 452,1 380,69 84 % WP7 71,5 74,6 104 % SUM 1121,4 981,35 88 % Results status of deliverables 2FP Plan 3FP Plan Ready Ready (%) WP % WP % WP % WP % WP % % WP % SUM %

8 Annual Program Report 8 (58) Statistics of publications Publications Type Journal Articles Conference papers MSc & BSc Theses PhD Theses Technical Reports Other Total Status Ready publications Public Restricted Internal Draft Total Matrix Journal Articles Conference papers MSc & BSc Theses PhD Theses Technical Reports Other Total Public Restricted Internal Draft Total Funding Per. FP1 FP2 Total Privacy Public: Public and the authors have free publishing rights Privacy Restricted: Public, but an external party owns publishing rights (e.g. IEEE)

9 Annual Program Report 9 (58) Detailed WP level results Below the WP short summaries from each task are described. WP1: Role of Smart Grids and Energy Market The main role of WP 1 Role of SGEM is to keep the updated knowledge of the main drivers having impact on development of Smart Grids environment worldwide. The another important role of WP is to determine the visions and scenarios of Smart Grid and confirm the right movement towards the vision of Smart Grids. WP 1 is a basement for all the other WPs including the research work of different important topics required for the Smart Grid development. Task 1.1: Electricity from society point of view The work done in task 1.1 is focused on following and understanding of development of operational environment and challenges for Smart Grids. One important question for electricity distribution companies and for the whole society is " What will be the trend of use of electricity and the trend of delivery of electricity through the grid". The main answers seem to be as follows; the use electricity will increase in future but there will be a lot of areas where the amount of delivered energy through transmission and distribution grid will decrease because of high scale penetration DG and energy efficiency actions". Another big issue in future will be the management of balance between non-controlled power production and consumption of electricity. This will be one of the main tasks for the whole Smart Grid concept. It means significant challenges for the demand response actions and for the active management of electricity grid. Task 1.2: Migration scenarios towards future Smart Grids During autumn 2011 a questionnaire survey was made in Task 1.2 in order to update the Smart Grids Roadmap. The report (D1.2.1) presents the questionnaire and results of the study and creates a basis for the new roadmap. The questionnaire was distributed to all SGEM members as well as for stakeholders outside the SGEM project in order to have comprehensive results. The number of respondents was over 100. The questionnaire was into four different perspectives: Technology, Electricity Market, End-user and Smart Grid development perspectives. The questionnaire was carried out by taking into consideration the Nordic Market perspective as well as Continental European Market perspective. The idea is to recognize the differences between these two market areas and to create a vision of Smart Grid development at Nordic and Continental European market areas. Task 1.3: Industry landscape for smart grids Standardized solutions are a necessity for Smart Grid that is wide spread, cost effectively deployable, interoperable and one that utilizes open interfaces. Therefore governments worldwide not only drive Smart Grid regulation but also Smart Grid standardization.

10 Annual Program Report 10 (58) Furthermore many standardization bodies and industry fora from the ICT and energy industry themselves consider Smart Grid as a priority issue. Due to this hype a lot of activities on Smart Grid standardization have been started. The main purpose of Task 1.3 in SGEM has been to monitor these activities, and provide that information to SGEM in accessible format. The main output of Task 1.3 during SGEM II is the D1.3.1 Smart Grid Standardization Analysis, Version 2.0, which reflects the status of Smart Grid related standardization activities by February This document analyses worldwide standardization activities related to Smart Grid. The focus is on the standardization of Information and Communication Technologies (ICT) for the Smart Grid (e.g. communication, automation and control, management, customer care, billing, business processes). Specific areas like Smart Metering and electrical vehicle charging are also covered under the wider Smart Grid scope. Starting from Smart Grid standardization roadmap activities the document identifies the various standardization bodies and industry fora involved and identifies standardization work from the physical communication layer to data models and applications. Regulation, policy and legislation issues and trade and lobbying activities for Smart Grid are also briefly covered by the document as they often interact with standardization activities. The report was generated based on an analysis of the Smart Grid standardization landscape performed at Nokia Siemens Networks. Major information for this study was provided by the various Smart Grid Standardization roadmap documents, namely from IEC, NIST and DKE. WP2: Future Infrastructure of Power Systems 1: LV&MV Even in the case of Smart Grids the biggest investments will be made to primary networks. WP2 focuses to primary infrastructure on the other hand from strategic planning point of view as well as in order to develop novel and intelligent primary network solutions. Task 2.1: Strategic planning LUT has focused on overall development of strategic planning from smart grid perspective. This has required knowledge in the area of technological development (for instance LVDC, DG, EVs, energy storages) and economic regulation model of the distribution business, in particular from the viewpoint of reliability of electricity supply and allowed return. About these topics there is one journal published and another papers are under review. In TUT work has related to new reliability criteria and optimal development of network both from DSO and society point of view considering also possibility of major disturbances. In traditional reliability planning the objective has been in reducing average reliability indices (e.g. SAIDI) or by minimization of total costs including average outage costs. By using reliability criteria the distribution of real or calculated outage time is considered and the requirement depends on community structure (city, urban or rural) instead of real outage

11 Annual Program Report 11 (58) costs. Another starting point could be consideration of the vital functions of the society as most critical loading points. The selection of the planning objective can be seen as part of strategy, which also has an effect to the optimal development of the network. Analysis and some studies have been carried out. The work is a little bit delayed and will continue in the next period. In Fortum work is related to analysis of the possible use-cases of phase-earthing circuit breaker in self-healing networks. Diploma thesis is under review. In Tekla work is focused to the effects of large scale cabling and distributed generation in radial network earth fault calculation algorithm. Also research work about the implementation of reliability indexes of cabled networks into the NIS is going on and the deliverable is expected to be finished by the end of the second funding period. (task 2.3) Task 2.2: Development of Phase Earthing System Reliable method for the indication of the faulty phase with phase-to-earth fault of the MV system has been developed during 2FP. The method will be applied for indicating the faulty phase with phase earthing system. The method has been tested with PSCAD simulation environment and documented. MV network fed by primary substation Kalkulla (Fortum) was modelled and applied for testing of the phase selection method. The prototype installation of the phase earthing system developed before SGEM program is situated in substation Kalkulla and thus is was selected for testing. Publishing of Deliverable D2.2.1 is delayed because the declaring an invention has been prepared. The research work concerning to D2.2.1 has finished. The work for Deliverable D2.2.2 Evaluation of the operation of phase earthing system with neutral compensated system is in progress and will continue to the end of ongoing reporting period. The target is to find out what benefits would it possible to achieve applying phase earthing system with neutral compensated system if is there are any benefits at all? Main attention will be focused on partially compensated systems. Jori Tervo have finalized M.Sc. Thesis on "Analysis of the possible use-cases of phase-earthing circuit breaker in self-healing networks". Task 2.3: Large scale cabling LUT has been developing the overall cabling concept where the main focus is on the strategic level of the planning process. In TUT the work made has been focused on the cable construction process. In Tekla the research work about the implementation of reliability indexes of cabled networks into the NIS is going on UWASA and ABB are working with the development of earth fault protection and location issues. Task2.4: Laboratory research platforms for LVDC technology In LUT, the main effort has been used in D2.4.5 (Three-phase two-level customer-end research inverter implementation and testing in +/-750 V LVDC laboratory research platform),

12 Annual Program Report 12 (58) because the real-network platform (Task 2.6) inverters are based on it. The laboratory inverter was built first and after that, three inverters for the real-network platform were built. The laboratory inverter was functional on August 2011, but the control algorithms testing took longer than we expected and the short-circuit operation had to be properly tested because of the real-network platform customer electrical safety. At the same time, we had to use a great effort in Task 2.6. The whole LVDC distribution system and installations at Suomenniemi had to be done before winter. This caused delays in some LUT deliverables due to sharing of resources. However, the real-network platform is now operational and more resources can be used in 2.4 and the research in task 2.4 continues according to the plan. Task 2.5: Analysis and development of LVDC technology Task 2.6: Field Tests Research work has continued mostly according to the plan. The work has been done in close collaboration with other relevant tasks, such as 2.4, 2.6, 3.3, 5.1 and 6.5. Delays in some deliverables, especially in reporting of the results (publication and report writing), due to collaboration/sharing of resources with other tasks (namely tasks 2.4 and 2.6) Realisation of the laboratory setups at LUT and TUT has tied some of the resources. Especially, the task 2.6 has required more effort from the research group of LUT than was originally estimated. However, development of the research platforms in tasks 2.4 and 2.5 have opened an excellent opportunity to test, for instance, control algorithms. The opportunity to combine both theoretical studies and practical engineering has improved the quality of the results although it has also caused delays on the reporting. No changes to the contents of the research are/have been needed. Arranging collaborative LVDC workshops has proven fruitful way to share information internally. Two workshops held so far (one at LUT in November -11 and one at TUT in February -12). Next workshop will be arranged in June. LUT+SSS: The LVDC field test setup located into the network of SSS Ltd. has been finalised and the commission tests done. The focus has been in finalising the field installations, verifying the safety and operation of the setup and start of reporting. A conference article describing the design and installation processes of the field test environment has been written and provisionally accepted for the Cired workshop 2012 (notification of the final acceptance in 4/2012). Further publicatons will follow during the 3FP. Elenia+ABB: M.Sc (D.2.6.5). and B.Sc (D.2.6.7) done according to the plan and published. Key findings and summary of the results will be published soon in the SGEM portal. Planning of the next field test setup was started will be continued during spring 2012.

13 Annual Program Report 13 (58) WP3: Future Infrastructure of Power Systems 2: HV Overall objective of the WP is: to analyze solutions for operation of high voltage Smart Grids, especially possibilities of controllable FACTS-devices utilizing Nordic level wide area measurements for monitoring and control purposes monitoring of power system dynamics in order to better assess the real-time system security to determine how small-scale active resources (e.g. through VPP-concepts) could be utilized in operation of high voltage Smart Grids to study Smart Grid solutions in urban and rural subtransmission networks; as protection principles, management of fault levels, load flow and reserve capacity to study the integration and network effects of large-scale wind power interconnected to subtransmission network to study the integration of distributed energy resources and the challenges and opportunities they bring for HV Smart Grids. Task 3.1: Utilising increased controllability for balancing the power system Fingrid has carried out the project "Power balance of Finnish power production and consumption in 2020 and 2030 with Pöyry. In the project the aim was to study the trends of consumption and power production to see how the power balance can be obtained in 2020 and Especially the need and adequacy of regulating power, demand response and power production capacity in high consumption situations has been studied. Three different scenarios for years 2020 and 2030 were performed for different situations in economics and trends in energy policies taking into account the targets with carbon neutral energy production, renewables and energy efficiency. These scenarios were modelled with the market simulation model, which describe the behaviour of market in Nordic countries as well as in other countries around the Baltic Sea. Also the development of smart consumption was taken into account in the simulations in the way that if the electricity price in market is high enough, a certain amount of demand response is available. The simulation results give the general view to the market in the chosen scenarios: what the electricity prices are in different situations and how the power balance in Finland is formed if the situation with water reservoirs is varied. They also show the adequacy of transmission

14 Annual Program Report 14 (58) capacity in different situations. Task 3.2: Interconnection of large-scale wind power in HV networks No activities planned for the 2nd funding period. Task 3.3: FACTS devices The STATCOM research and development activities have reached the phase where the partial activities are to be integrated. Efforts are split a number of sub-tasks. a) Studies for combining FACTS devices to reach increased cost efficiency in terms of installation and operational costs were done using FACTS controllers in real time simulation environment. The results appeared extremely promising, therefore the subtask was re-activated postponing other planned activities. It is planned to construct a demonstrator, which is financed separately from SGEM project as it is very expensive. b) STATCOM overloadability was investigated and improved to teach 1.7 times the nominal current during 10 seconds at the time. The overloadability increases significantly the capability of hybrid SVC concept to replace pure STATCOM solution. c) Task separation of STATCOM branches for optimised power effiency vs. performance: The total losses of high voltage IGBT power semiconductor beased STATCOM are highly dependent on switching losses. Efficient reactive power compensation can be reached even by using moderate switchiong frequency below 800 Hz. Harmonics compensation however requires switching frequencies up to 3 khz. The separation of tasks hepls in optimising and prioritizing the functionalities of STATCOM. d) Subtask d) is separate from the hybrid SVC concept. A STATCOM is ususlly selected to support voltage level in a windfarm. If tere is general distribution in the same network, the power quality support becomes even more important. The installation cost of full power rated STATCOM is extermely expensive. To reduce the cost it is possible to use the wind turbine network converter to stabilise the voltage. STATCOM is additionally needed to maintaqin fast acting disturbances. By slowly tuning the reactive power of the wind turbine converters,it is possible to keep the reactive power of STATCOM at zero level and thus keeping the full power dynamics available. e) Maximising the speed of SVC reactive power control capability is an action to support the hybride SVC concept. Tampere University of Technology (TUT) has been working on STATCOM modeling and energy storage in the DC link. Two and three level IGBT bridge was modeled taking into

15 Annual Program Report 15 (58) account even switching and on-state losses. A model including super capacitors and DC/DC converter with losses to be connected to the DC link of STATCOM was implemented. A network model including the converters and electric arc furnace model was simulated. The losses and flicker reduction performance were evaluated at different voltage ratings. The work continues in 3rd funding period Aalto University has investigated the fault limitation methods in high voltage grid. Different solutions and applicability for dirrerent types of grids were evaluated. Details of the work can be be checked from the MSc thesis of Bruno Sousa available in Cleen portal. Task 3.4 Wide-Area Monitoring and Control (WAMCS) This task consisted of two separate parts: monitoring and control. Most of the work was carried out in the monitoring part. The task included two organizations: Aalto University (as a subcontractor to Fingrid) and ABB Corporate Research (Switzerland and US). However, mainly Aalto was active in the task. The work on the monitoring part of the task included further studies of the properties of the wavelet-based damping estimation method that was developed in Jukka Turunen s PhD project. In addition, further development of wavelet-based mode shape estimation was carried out. Publication of the monitoring work is in publication process. The work carried out so far on the control part of the task includes partial literature review of wide-area control approaches applied world-wide and the experiences from them. ABB was supposed to do some work related to the effect of latencies to wide-area damping control systems; however this work was not realized because one of the key persons (Rajat Majumder, ABB US) left ABB. Task 3.5: Management of regional subtransmission networks The task studies applications and impacts of Smart Grid technologies in 110 kv subtransmission networks. It is expected that the DR/DER capacity will contribute in reserve capacity of power systems and hence reduce the need of investments in the network reserves correspondingly. The task has made elementary studies how DR/DER could be utilized for this purpose. Another line of investigation is the operation of Smart Subtransmission Grids and especially the mixed systems with parallel operation of cables and overhead lines. The limiting factors are reliability (interruptions, reserves, sags) and fault levels. The costs of interruptions and sags have been studied especially for service, public and industrial customers, in urban environments. The goal is to scale different network and Smart Grid solutions according to the costs of outages and disturbances to the customers, in order to make the different alternatives comparable.

16 Annual Program Report 16 (58) WP4: Active Customer, Customer interface and ICT Interactive customer having energy storages, distributed energy production and demand response functionalities is a key player in a Smart Grid environment. The interactive customer is an active resource enabling active short and long term management of grid powers. Impacts for whole electricity system will be revolutionary. The grid and centralised power production capacity will be operated with their maximum efficiency. The use of electricity can continue without interruptions also during grid fault situations. Task 4.1: Customer behaviour, and trust and privacy Consumers' worries regarding the load controls are manageable and can be overcome when implementing the demand response programs. Sources of worry include e.g. the impacts on the comfort of living, data security and privacy, and the correct functioning of technology. Savings in energy costs are viewed as the most important reason to take part in demand response programs but also the possibilities for remote control of devices and the environment aspects are considered important. Consumers also want to retain possibilities to over-ride any control actions taken by third parties. Information provision to consumers is still a big challenge (e.g. what information should be provided, in what format and at what frequency). It is also not yet clear who will the lead users as far as the utilization of demand side resources is concerned, where these people can be found and how they should be approached. In its rhetoric, the Finnish society views the utilization of demand side resources as an important goal but the real-life actions and support to promote the achievement of the goal are missing. Task 4.2: Estimation of customer loads, DG and storage Task 4.2 approaches load modelling from three different directions: usage of AMR measurements, spatial load modelling, and load building blocks. Demand response, in itself one of the cornerstones of Smart Grids, is also part of a modern load modelling approach. Another area of research is the communication between the aggregator and the smart home platform. Work is well on its way on all fronts. Load modelling concentrates on research of novel load modelling methods using new available data, such as hourly metered data provided in increasing amounts by the new smart metering systems. During the 2 FP progress was made in studying new ways to improve the accuracy of customer classification and load models by utilizing AMR and other external environmental data. Moreover, the use of new available data in modelling the adoption of smart grid related technology has been studied, which when combined with load models can help in analyzing loads in different scenarios. The feasibility of using load building blocks of the main independently behaving sub-loads for load modelling is also being scrutinized. During 2 FP the following progress regarding development of load response models was achieved: 1. Review of literature and state of the art were completed and published.

17 Annual Program Report 17 (58) 2. Contacts with Spanish experts working in the area were strengthened 3. It has been agreed how to get the measurements of loads and responses needed for updating and further development of the models. This includes collaboration with the recent and near future field tests on a) dynamic AMR based load control by Helen SV in ST4.6.1 and b) direct load control field tests by E.ON Kainuu. The progress was according to the 2FP plan except that the schedule for receiving measured load responses needed was too optimistic. Now we are confident that adequate measurement data will be available in spring 2013 and partly in spring A load modelling and response workshop was held Nov 10th in Kuopio, with four presentations from Task 4.2. One of the aims of the workshop was to introduce to the researchers in SGEM the related research done internationally and especially in the large demand response related EU projects EU-DEEP, FENIX and ADDRESS., thus two invited external experts participated: Carlos Álvarez Bel form University of Valencia and Nerea Ruiz Carames from Tecnalia. Although initiated by Task 4.2, other WPs interested in load modelling and response joined the workshop actively, so the workshop did a lot in synchronizing, steering and advancing collaboration in the research being done on the topic of load modelling and load response in SGEM. We consider the REST web API to be the candidate communication solution between the aggregator and the smart home platform. The work during 2 FP has been preparation for the communication solution between aggregator's optimization tool and smart home demonstration platform. The work with a global device storage solution has received some set-backs, as it is not finished and There has decided not to partake in this task in 3 FP. Task 4.3: IT and service management architecture for the active resources The main results so far: D4.3.1 Use Case Descriptions version ready Modeling tool and version control repository environment solution ready (to be utilized by other WPs) D4.3.5 Verified solution description and D4.3.6 Requirement spec for DER Specific Enablers ready for Helen DR basic functionality demo RTDS testing arrangement for low voltage network management and smart home energy management has been defined. D4.3.7 Smart home energy management includes two levels: scheduling of energy usage and peak load reduction of customer connection point. Alternator controller or sometimes called as a Soft fuse will realize peak load reduction and it has been implemented in Theregate. Energy usage scheduling for EV charging utilizing

18 Annual Program Report 18 (58) dynamic energy and power delivery tariffs has been determined. Working on business models together with Elenia and Fortum to understand the high level requirements for HEMS solution Task 4.4: Potential for Demand Response (DR) The task studies potential of DR from TSO and DSO point of view. In the FP2, the requirements by TSO for different applications of balance management were first defined and quantified. Then the needs for up- and down-response were analyzed primarily by investigating the variations of intermittent power production. As a practical case of controlled load, the potential of space heating DR in Vantaa area was assessed. Task 4.5: Technical solutions for customer gateway and ICT systems The work in task 4.5 has focused on demonstrating and developing interactive customer interface, analysis of existing solutions and new possibilities for improving business processes utilizing AMR data and development of new functions of AMR meter for network management. Interactive customer interface demonstration has been done in LUT as part of the wider concept of Green Campus of LUT. Analysis of existing AMR functions and need of new ones is done and several workshops have been completed. Overall view of the complicated entity of utilizing AMR data and process oriented approach to system development has also been dealt in the task. As a new AMR function research has focused on developing LV neutral fault management (specification, RTDS testing, piloting). In the summer 2010 Finland met summer storms and After the Christmas 2011 in the South Finland was very strong storm causing wide outages effecting to hundreds of thousands of distribution customers. After the storm there was lot of discussion in the media and Finnish authorities demanded network companies to develop networks which are more protected against nature forces. One dangerous fault type was also discussed. Neutral fault can lead even to fatal over voltages. In some cases it can remain in the network unobserved and create critical situation a long time after storm damages are repaired. The work package 4.5 focused on neutral fault management during funding period 2 which was started and closed The study was shared in two main parts. At first the interest was what can be done using currently installed AMR meters in which neutral fault detection is base on phase voltage asymmetry. This requires that in neutral fault situation phase voltages differ enough from their normal values. Voltage deviation depends phase loading asymmetry and therefore neutral fault can be also hidden and arouse over voltage position later on.

19 Annual Program Report 19 (58) The second part of study is to search how next generation AMR meters should act when neutral fault occurs. One demand is to detect also so called hidden neutral faults where phase voltages remain normal or close of it. Practically research is completed by workshops, laboratory simulations and finally by piloting in the field conditions. The objective of the work package is to find methods and recommendation to improve neutral fault management in short term and in long term. Task 4.6 Validation and proof of concepts In Installations for dynamic load control were completed for over 500 test sites and 10 MW controllable power but testing continues. Hourly measurement data for 400 ToU houses was collected for analysis. The electricity retailers implemented the interface to their systems. Starting dynamic load control tests was delayed to the next winter because it was considered too risky to start dynamic load control before there is enough evidence that the houses work as ecpected. So there is enough time to detect, solve and single out possible problematic houses. In we have planned and implemented energy consumption's visualization user interface together with Skanska. The user interface is now ready and we working on the implementation onto Fortum webpages. We have also developed and produced the first version of graphic user interface for touch screen on every apartment's wall. The solar panels have been installed and they will be now connected to the grid in order to feed in extra electricity when needed. The installation of the EV charging units in the garage is now ready. The commissioning tests of the measurement and monitoring system are now in progress. Planning and preparing of the guidelines and training material for Adjutantti-tenants and for a housing company of Adjutantti and for a maintenance company have been started and is in progress at the moment. In The first three deliverables have been completed: D4.6.5 High level process descriptions: Task activities lead by Empower project group. Main activity has been to define and describe high level process information flows. Supporting work approaches: Empower internal workshops; Study of earlier research and reports; Cooperation with industrial partners; Cooperation with SGEM partners (NSN WP4.3 / Use Case descriptions) D4.6.6 Study of efficient integration: Task activities lead by Empower project group. Main activities has been to define integration structures required by processes defined in D4.6.5 deliverable. Supporting work approaches: Empower internal workshops; Analysis of D4.6.5 use cases and data flows; Cooperation with industrial partners.

20 Annual Program Report 20 (58) D4.6.7 Study of distributed calculation methods in processing billing information: This activity is carried out in cooperation with LUT. All reasearch activities and reports provided by LUT. WP5: Active Resources: Distributed Generation, Electric Vehicles, Energy Storages The research work in WP5 concentrates on three main tasks: Distributed generation, charging the electrical vehicles and energy storages. These three main tasks are closely linked together and they form a technological package, which combines requirements from grid management, intelligent communication and data prosessing, power electronic converters and energy storages. Task 5.1: Distributed Generation ABB FISUB: PSCAD modeling of practical approach to define protection functionality needs for interconnection relays is ongoing. The idea is to design new protection algorithms for unsymmetrical faults in smart grids including DER. The work will be done in collaboration with the University of Vaasa and PUV (Vaasan Ammattikorkeakoulu). The Switch: Two master thesis, one PSCAD model, one project report, four articles and three conference presentations has been done during second funding period. First master thesis considered islanding of a full power converter in a grid interface by Jesse Asikainen, second master thesis were made together with LUT and considered future grid codes in DG in Smart grid concept by Juha-Pekka Vainikka. New power electronic filter design was studied for renewable energy and power quality issues were discussed in harmonics and filters article. New full-power converter based test bench for low voltage ride-through testing of wind turbine converters and parallel operation of it were bringing out into open. Also new Solar PSCAD model of The Switch drive were released. LUT: Three master thesis related to DG has been done during 2FP: Future grid codes in DG in Smart grid concept by Juha-Pekka Vainikka, the balance management of wind power by Jari Miettinen (collaboration with Aalborg Denmark) and optimization of wind farm installations by Svetlana Afanasyeva. TUT: The work has concentrated in protection relay algorithms regarding the fault ride through capability of converter connected wind turbines in unsymmetrical faults. Also laboratory prototype and measurements of converter connected wind turbine has been completed in this autumn. TUT has also prepared one Refereed journal article and four conference papers. UWASA. The main effort is put in developing the new micro-grid model and grid inverter

21 Annual Program Report 21 (58) model which will be put into the SGEM library. The work started in FP1 regarding the simulation library continues in WP5.1. The instructions and guidelines for the modeling has been finished together with VTT by September. Rules and terms related to library use between partners is also ongoing jointly with VTT. VTT; Balancing costs for wind power for different market actors using forecasting from one model were analyzed. Regarding this topic one master thesis Wind power prediction using multiple weather forecasts and one conference paper Wind power balancing costs for different size actors in the Nordic electricity market were completed. In the solar energy research topic, the development of tool for arctic solar system design was commenced. For this purpose, one overview report Nordic photovoltaic design systems. Functions, requirements and review of current PV system design tools was published. VTT also continues the work regarding the preparation of the common SGEM simulation library jointly with UWASA. For the development of the Simantics simulation environment, the collection of the selected promising use-cases was carried out for the requirement documentation. Also the work was started on impacts of smart resources and large scale wind power to the operation of the Nordic power system. In the first phase, the WILMAR software tool for balancing cost estimation was developed. It will operate in hourly resolution and takes wind power and load prediction errors into account. Task 5.2: Electric Vehicles In LUT methodological studies related to EVs have been done. Focus has been on EVs as a load and energy storage from network perspective. Developed methodology gives possibilities for network engineers and asset managers to estimate economic benefits and drawbacks of EVs as a load (G2V) and energy storages (V2G) in form of network investments and distribution fee paid by the end-customers. Several conference and journal have been published. In TUT EV impacts on distribution network are studied based on detailed load-flow calculations. TUT has utilized statistical load models of charging based on national traffic survey. In addition to basic network impact study, impacts of EV ancillary services are studied and benefits analyzed. Also, the impact of electrical ranges of PHEVs and charging infrastructure on the energy use and charging needs have been investigated. Also, some work is conducted also about EVs in the context of new transfer tariffs. A few papers about these topics have been written and are in review. In Fortum the aim of the work was to research EV grid impacts when using fast charging stations in both customer and network operator perspective. The work focused on existing fast charging systems and the charging models, which present EVs are using in practice. In addition, it makes account of different fast charging solutions, systems and the technical specifications of those. The goal of the work was also to plan and design the testing of systems to be installed in the distribution network. The work is published by the diploma thesis "Techno-Economical Studies for Grid Impacts of Electric Vehicle Fast Charging" (ready

22 Annual Program Report 22 (58) in the end of February 2012). In Elektrobit, the focus has been on the impacts of EV charging to vehicle user (use case scenarios) and on following ISO/IEC standardization. Verification of Part 2 has been started by implementing selected parts of the draft standard. The work continues in 3FP. The work in WP5.2 interfaces with that in.1. In Aalto and VES has been focused on the potential of buses and trolleys, part-and-ride systems and EV:s in delivery traffic. Three separate reports are ready or under work. NSN has utilized its Telecommunication know how to design service control, billing, operation and management architecture for distributed EV charging station infrastructure and associated services. Work results are published in two documents (Use cases, Requirements) published to SGEM portal. Task 5.3:Energy Stogages ABB has focused on use of energy storages together with power electronics and distributed generation in island grids. The main interest has been in building a distributed generation unit, which has energy source from: national grid, wind turbine, solar cell, hydro and/or diesel aggregate etc and which supplies island grid through power electronics. The batteries have been the energy storage to balance the island grid consumption and DG power production. LUT has focused on techno-economical studies of using the Electric Vehicle batteries in grid power balancing. The use of EV batteries in bi-directional use i.e. in supporting grid is of high research interest. The green campus of LUT concists of different types of distributed generation and use of battery energy storages. VTT has continued the co-operation in EERA and EU Technology Platform Smart Grids. VTT has completed a big study on energy storage technology for photo voltaic systems and has provided a large report on Energy storage systems; intelligent control concepts and grid interfaces. Energy Storage Systems for the Use in Photo Voltaic Systems. Photovoltaic systems can be built without energy storages, but energy storage integrated systems would give more techno-economic benefits for different stakeholders. Main developing area is battery storage technology especially lithium-ion batteries. Large solar systems need also efficient power electronics and advanced control methods to be able to optimise power production for different targets. Completed study is evaluating current and developing electrical energy storage technology, grid-connection systems and control functions suitable for different kinds and sizes of photovoltaic systems.

23 Annual Program Report 23 (58) : Intelligent Management and Operation of Smart Grids This WP deals with smartness of the grid and represents more than a quarter of the total SGEM volume. There are four principal technology tasks 1-4 and eight application tasks 5-12 and specific task for pilots and trials. Task 6.1: Next generation ICT-solutions for network management This task was working on IT and communications solutions for Smart Grid and also the ICT ecosystem supporting SG was studied. On IT side the CIM model and OPC interfaces were studied and thesis work conducted (UWASA). On communication front the task delivered 1) consolidated communication requirements for SG, 2) Survey report on interference sources in smart grid, 3) Redundancy/availability analysis of a public cellular network in the DA communication 3) network traffic analysis from real network data (truly leading edge in the world) 4) network dimensioning considerations in case of dedicated wireless network for SG, 5) LTE for Smart Grid laboratory trial environment and measurement of GOOSE over LTE performance 6) A simulator for analysing different fault situations in Smart Grid has been taken further, preliminary results in report. This task was split into separate IT and communications task for the 3rd funding period. Task 6.2: Information security This task wasdealing with different aspect of security mechanisms for smart grids. It aimed at provision of security solutions for the smart grid ICT architecture which was defined in Task 6.1. At the same time it provided evaluation from security point of view of smart grid demonstration environment developed in SGEM. Following three deliverables were produced: 1) analysis of the TUT Smart Grid demonstrator, 2) Evaluation of information security solutions and platforms for SG - research publication and 3) Vulnerabilities of information security solutions supporting SG- research publication being finalized, ready in April). This task was finished at the end of the FP2 and security issues will be embedded in ICT related issues within other tasks during FP3. Task 6.3: Measurement technology This task deals with developing new low cost, wireless sensor technology to smart grid

24 Annual Program Report 24 (58) monitoring purposes, new wideband measurement technology for accurate power and energy measurements and new low cost measurement technology for monitoring of high frequency disturbances and condition of power networks. Four deliverables were produced during FP2: 1) Feasibility study on potential applications of new MEMS sensor 2) a low cost line fault detector with wireless communication and power harvesting from the line 3) a prototype of a low cost IED (intelligent electronic device) for monitoring of PLC and high frequency disturbances in power networks 4) the first single channel prototype of a wideband power and energy measurement system. Task 6.4: Substation Technology "This task investigates new Smart Grid requirements for the secondary system of a primary substation and also determines and demonstrates new solutions for addressing these challenges. The focus has been on developing architectures and environments, which would enable adding new functionality to the substations. Work within the task has been progressing with two tracks, as during 1st funding period it was identified that two different platforms are needed for covering these new requirements. The first track focused on centralized protection and control functionality, which requires short latencies and real-time operation. The environment developed is based on the IEC standard, especially focusing on the station bus -8-1 and process bus The environment has been now successfully tested in the RTDS simulation environment at TUT, and the work continues now during the remainder of 2FP and 3FP on application level testing new functions benefitting from this environment. First tests were conducted with a High Impedance Earth Fault protection function. The other track focused on centralized offline analysis functionality. This functionality does not have strict real-time requirements, but on the other hand should support integrating new functionality fast without extensive engineering effort. The implementation work was done outside SGEM, but the guiding and consulting activities were conducted from SGEM, and also a Self-Healing Proof-of-Concept from 2FP utilizes this environment. At the moment the environment is used in the Self-Healing PoC for calculating the distance-to-fault during fault situation. This functionality has been successfully integration tested, and field tests are targeted for the Spring Task 6.5: Protection functions and analysis TUT: One method for indication of high-resistance phase-to-earth faults has been implemented in the centralized protection environment of ABB. Earlier developed RTDS test environment for testing station level centralized functions has been utilized. Applying RSCAD network model

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