SMART GRID. Value propositions

Transcription

1 SMART GRID Value propositions

2 No. 1 89% % 3300 EMPLOYEES... WITHIN RENEWABLES IN EUROPE RENEWABLE ENERGY POWER AND DISTRICT HEATING PLANTS OF NORWAY S POWER GENERATION...IN MORE THAN 20 COUNTRIES

3 DELIVER GROWTH IN PURE ENERGY Flexible European generation and market operations International hydropower Wind power District heating Small-scale hydropower 3

4 STATKRAFT INNOVATION DEPARTMENT R&D programs for hydropower wind power bio energy Technology surveillance Osmotic power 4

5 SO, WHAT IS THE SMART GRID? 5

6 SOME SIGNIFICANT DRIVERS Energy security and reliability Increased renewable generation and reduced carbon footprint Enhanced energy flexibility and efficiency Support new applications (e.g. electrification of transportation and distributed energy resources) Higher rate of innovation, counter-cyclical economic measures and creation of green tech jobs Reduced system operating costs Consumer awareness and involvement Reduced end-user consumption 6

7 CASE 1: WIND POWER DEVELOPMENT IN NORTHWEST EUROPE SCENARIO Offshore capacity MW Onshore capacity MW Creating a Wind Belt from UK to Southern Sweden 7

8 REQUIRES SOME RETHINKING OF THE EUROPEAN TRANSMISSION GRID AND INTERCONNECTIONS 8

9 AND DEVELOPMENT OF FLEXIBILITY OPTIONS IN THE ENERGY SYSTEM Traditional requirements Reserve capacity (primary, secondary and tertiary) Daily load variations New important challenges Long-term (days) backup capacity Huge ramp-up capacity Innovative openings Hydro resources in the Nordics and the Alpine region can be developed to deliver ramp-up services and long-term storage Distributed Energy Resources and smart distribution grids 9

10 CASE 2: ENERGY UTILIZATION TRENDS ARE REAL Energy efficiency (EE) Distributed Energy Resources (DR) Smart Grids (SG) Fuel Switch (FS) EU has set nonbinding energy efficiency target as part of the targets New building standards substantially tightened, however slow penetration rate Steady growth across Europe mainly driven by government incentives Wide range of penetration levels across Europe Most distributed gen. expected in Germany (18% share 2 in 2025) First step of smart grids is smart metering, where EU has set a target of 80% penetration by 2020 Smart meters expected to trigger growth in smart appliances and enable demand response Most European governments have set aggressive targets for EV penetration by 2020; Backed by incentive schemes Heat pump growth driven by attractive economics 10

11 CASE 3: SMART CONSUMER & SMART HOUSE Utility xyz Meter (bi-directional power flows) Managed Circuits: HVAC Systems Hot Water Pool Pump Comfort lighting Accessories Other loads Local Distributed Generation (Wind, Solar, etc ) Home Energy Management System Hybrid/Electric Vehicle Interface Cloud Energy Services Remote Control. Reporting, Analytics, Alerts Remote Diagnostics CRM/Billing Competitive Retail Offerings Appliance Diagnostics and offers Smart Energy Wizards Battery Storage DOE 2007 Solar Competition Darmstadt winning entry 11

12 CASE 4: URBANIZATION MEGACITIES POPULATION AGGLOMERATIONS OF 10 MILLION AND MORE Moskow Los Angeles Mexico City Chicago New York Paris Lagos Cairo Istanbul Teheran Lahore New Delhi Karachi Dhaka Calcutta Bombay Chennai Beijing Seoul Tokyo Osaka-Kobe Shanghai Guangdong-Shenzhen Manila Kinshasa Jakarta Rio De Janeiro 1975: : : 29 est. Sao Paulo Buenos Aires Source: UN DESA, Department of Economic and Social Affair 12

13 THE MAIN ROLE OF THE ELECTRICITY GRID: UPHOLD BALANCE BETWEEN GENERATION AND DEMAND Generation Demand 51 Hz 50 Hz 49 Hz Grid In most national energy systems there is: Very little buffer or storage capacity Very little flexibility or interaction with demand Reserve or balancing power plants are expensive 13

14 THESE SMART DOMAINS IS CHANGING OUR EXISTING TOP-DOWN VIEW OF THE OVERALL ENERGY SYSTEM 14

15 ... AND PERHAPS LEAD TO SHIFTS IN THE VALUE CHAIN Central systems Distributed / local systems Centralized generation Trading & origination Transmission & Distribution (regulated) Aggregators & ancillary services Supply & Distributed activities Consumer Centralized conventional generation Transmission Distribution Renewables Storage Backup power Distributed energy resources Supply Prosumers Residential Commercial Centralized renewable energy generation Industrial Transportation Trading & origination 15

16 NEW OPENINGS, MARKETS AND PLAYERS Demand Side Management Distributed Resources Communication Consumer Installations Management of DER and DSM. Utilities ESCO s Other FMC s Schneider, Dalkia, Honeywell, Siemens Balancing services Time Swapping Geo swapping On-site small scale energy storage and generation Utilities ESCO s ABB Community interests Dalkia, Honeywell Fuel Cells, small wind, micro CHP Realtime, two-vay communication between components ICT/Telco companies Software industry ABB, Tendril Cisco Nokia, Vodaphone EE measures, appliances, IHD, energy services, financing, portals GE Intel Panasonic, Siemens, Miele, Sony Google, Microsoft, Apple, Yello, Onzo, Tendril Settling Aggregation 16

17 WHAT S GOING ON IN THE WORLD? Smart grids are emerging as the next strategic challenge for the energy sector and as a key catalyst to achieve the vision of a low-carbon economy. Electricity has always powered the work of computers. Now, with smarter grids, computing is returning the favor. Decentralised generation expected to account for % of installed capacity by Smart energy grids offer the greatest investment opportunity in the first half of the 21st century Our expectation is that this network will be 100 to 1000 times larger than the internet More than 250 million smart meters will be installed worldwide by 2015, representing a penetration rate of 18% of all electrical meters by that time, up from 46 million in

18 ALLIANCES BETWEEN UTILITY, COMMUNICATION COMPANIES AND INSTALLATIONS PROVIDERS Many large pilot projects are carried out across Europe. The typical alliance is between a utility, network player and a home technology provider. The utility typically plays the role of demand management. The network player is responsible for two-way communication between meter and utility. Several of the network players are also responsible for integration of own and others technology. The home technology provider supplies hardware and software for building management and control. 18

19 KEY TAKEAWAY The intelligent cooperation of generation and demand form the essence of a smart grid. The meter is merely a component is this picture. Though essential it is not the proof of an implementation. The smart grid supports (and enables?) Enhanced energy security, flexibility and efficiency Increased renewable generation and reduced carbon footprint Introduction of load and DER s as a resource into the energy system The smart grid needs innovation System designs & operations (dispatching) Regulatory setup, market designs and perhaps business models Real-time interaction between all components in the energy system Communication capabilities and standardized interfaces Protection of privacy and infrastructure security The smart grid challenges the incumbent industry players, but will also enable new openings Watch out for EU. Ambitious carbon and renewable targets China. Ambitious renewable strategies deployment and targets US. High priority for energy security 19

20 NORWEGIAN MARKET Norway does not have the same extent of the drivers and challenges but Major potential as a energy flexibility and backup provider Efficient market design and unbundling of the value chain High penetration and expertise of ICT and automation Common linked certificate scheme with Sweden may introduce more intermittency Electrification of transportation may result in capacity shortages in the distribution grid Potential for value creation within Interconnections to markets with high need for flexibility Demand side programs in parallel with smart meter rollout Wholesale capacity markets equalizing generation and demand assets Commercial and Industrial demand response 20

21 S side 21