Smart Grid, an evolution challenging the entire power system

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Håkan Johansson ABB Smart Grid Initiative CPS Week 2010 Smart Grid, an evolution challenging the entire power system June 22, 2010 Slide 1

Smart Grid main driver! Increased utilization of electricity can save energy and reduce emissions!* June 22, 2010 Slide 3 * E.g. none fossil generation

ABB s view on Smart Grid - more than IT and smart meters! A SmartGrid is an electricity network that can intelligently integrate the actions of all users connected to it generators, consumers and those that do both in order to efficiently deliver sustainable, economic and secure electricity supplies. Source: Source: European European Technology Technology Platform Platform SmartGrids SmartGrids A Smart Grid is self-healing, enables active participation of consumers, operate resiliently against attack and natural disasters, accommodate all generation and storage options, enable introduction of new products, services and markets, optimize asset utilization and operate efficiently, provide power quality for the digital economy. Smart Grid is the future evolution of the entire power network. Source: Source: US US Department Department of of Energy Energy Smart Grid includes both transmission and distribution, focuses on the integration of renewable generation, reliability and efficiency of the grid. Smart Grid includes the demand response and the potential of new technologies such as large scale integration of electric vehicles. Smart Grid includes both automation/it and controllable power devices in the whole value chain from production to consumption. June 22, 2010 Slide 4

Smart Grid A puzzle of business opportunities Energy Storage Smart S/S Integration Renewables Energy Efficiency New business opportunities in many areas, but In other areas a market for commercial solutions must be developed Not only new technical solutions New regulatory rules and business models Demonstration sites are needed Place to meet for politicians, authorities, utilities, suppliers and users Innovation centers for research, development and demonstration Power utilities goes Smart Grid certified The future electrical system requires new business models and standards June 22, 2010 Slide 5

Challenges, as of today and tomorrow What is new? Reliability and efficiency Increased network capacity. At the same time, improved security and power quality Integration of renewables Hydro, wind, large-scale wind, bio energy, large-scale solar, osmotic*, wave power etc Energy storage, balancing power etc Integration of electric vehicles Charging infrastructure etc Customer interaction, demand/response Home automation, active houses etc Business models Standards June 22, 2010 Slide 6 *Statkraft, Tofte Oslo, Norway

Smart Grid challenges Improve efficiency along the whole process Integration of renewables Demand response Reliability and efficiency Integration of electric vehicles June 22, 2010 Slide 8

Efficient generation, transport and better utilization of electricity Primary energy Transport Generation T&D Industry Commercial Residential Available energy Improved well efficiency Improved pipeline flows More efficient fuel combustion Lower line losses, higher substation efficiency Improved productivity 80 % losses 30 % saving Building management Up to 80 percent losses along the energy value chain Some losses inherent to the generation of electricity Network losses in EU are an estimated 50 TWh, the annual consumption of 13 million households* Energy efficiency along the value chain can reduce losses by 30 percent June 22, 2010 Slide 9 * Source: European Commission

Super Grid vision becomes Smart Grid vision ABB vision 1992 Hydro 200 GW Wind 300 GW 25 000 km sq 5000 x 10 km Pump Storage 1000 TWh Solar 700 GW 8000 km sq 90 x 90 k Transmission capacity Large renewable power generations Emission free balancing power Load flow control to compensate Day / Night Time zones June 22, 2010 Slide 11

Smart Grid enables balance by interconnected networks and integrated active consumers Planning targets for Sweden Wind 30 TWh, 12 000 MW Compare with Hydro Nuclear 16 000 MW 9 000 MW MWh/h 30000 How to balance intermittent 12 000 MW wind? 25000 20000 15000 10000 5000 + Import / - Export Vattenkraft Hydro Vindkraft Wind Värmekraft District heating Kärnkraft Nuclear Elavändning Electrical demand 0 Balance control from the production and/or consumption side -5000-10000 Tor Fre Lör Sön Mån Tis Ons June 22, 2010 Slide 14 Source: SvK Sweden

Smart Grid components: Integrated Active House and Electric Vehicle Own production Own storage Controllable loads Central KNX Benefits Active procumer benefits from most favorable spot price Charging box Not controllable loads Smart meters Peak load shaving by local production, storage and time shift of consumption Overall reduction of energy consumption by increased consumer awareness Communication channels Power Supply Network operator, Energy Supplier June 22, 2010 Slide 20

Communication options 1 Communication via GSM (GPRS); Internet (WAN, LAN, DSL, ISDN); PLC; M Bus over TP, Ethernet or GSM/GPRS, LonWorks PLC or EIB/KNX To and from utilities Multi utility communication controller MUC To and from houses and in the house Full two-way communication via different channels 1 Remote energy shutdowns possible e.g. QLD, AU Energy import and export measurements Electronic meters for monitoring serve all customer needs Multi-tariff options, load profiles, real time or monthly reading Visualization, control and configuration e.g. Google Power Meter, Google Wave, but also others Customized solutions for information exchange and demand response June 22, 2010 Slide 21

Smart Grid components: Charging infrastructure Electric Vehicles Billing system Benefits CO2 reduction Allows for the possibility to dispose energy when excess production is available. Peak load shaving Charging method Slow charging Fast charging Ultra-fast charging Description Individual poles at home or parking lots Charging time ~6 hours Special charging stations or with equipment at home Charging time ~1 hour Concept for special charging stations Charging time ~6 min Installation ~2kW,, AC converters ~20kW, AC converters >300kW, DC converters

Impact on the grid Voltage drops in rural areas due to ultra-fast charging Countryside in Småland: Ultra-fast charging station at E4 highway Next primary substation is >30km away Neighboring villages at same mediumvoltage connection

ABB SVC Light with energy storage Handles intermittent energy production issues such as voltage control, grid stability during and after faults, as well as frequency regulation. Used during peak load situations and as emergency reserve during power outages. Energy Storage as alternative to investment in increased grid distribution capacity Current Project Two wind farms connected to 11 kv distribution system. Rated 200 kw/1 h, 600 kw/15 min June 22, 2010 Slide 24

Smart Grid Smart Meters The European market for meters will be 244 million meters by year 2015, let us assume at least 50% will be smart meters By 2015 at least the same amount of smart meters will be installed in NAM By 2015 China is well on its way The WW amount of meters year 2015 is estimated to 500 million Assume one meter will be able to control 1000 W, corresponding to 500 000 MW. Demand response, an issue also for transmission systems June 22, 2010 Slide 25

Stockholm Royal Seaport A Smart Grid R&D Pilot Project Driver: Stockholm, a sustainable city. Reducing energy consumption to half 2009-2025: 10 000 apartments Customer interaction demand response 30 000 new office places Electrical vehicles and ship to shore connection Micro generation and energy storage 2020: CO2-reduction from 4,5 down to 1,5 ton per person 2030: Fossil free city

Example of a large-scale Smart Grid (Stockholm Royal Seaport) 7 1 Active houses/buildings and Demand Response 6 2 Reduced peak load and increased energy efficiency by demand side participation and home/building automation Distributed Energy Systems 6 6 2 3 Integration of production for local generation PV and Wind in Home/Building Automation Solution Integration and Use of electric vehicles 4 3 4 Integration of PHEV Charging Infrastructure Energy Storage for Network Support and DES* Increased stability and power quality 4 1 2 5 6 Harbor Control Solution Reduced CO2 emission based High voltage shore connection Smart Primary Substations 5 7 Increased efficiency and reliability with higher automation level Smart Grid Laboratory (part of Innovation Center) *DES, Distributed Energy Systems Research, development, simulation and implementation of smart grid application June 22, 2010 Slide 30

Smart Grid Roadmap Step 1: Smart Grids Initial phase (1-3 years) Integration large scale wind/solar farms Smart Meters for billing Pilots for energy storage, active houses, electric vehicles, demand response, distribution automation, AMI integration Step 2: Emerging Smart Grids (3-7 years) AMI integration with operational system Distribution Automation Energy storage Step 3: Mature Smart Grids (7-15 years) Active houses Demand Response Integration electric vehicles June 22, 2010 Slide 35

Conclutions Smart Grid will be an important arena where politicians, authorities, utilities, suppliers etc. will meet to discuss how to reach the goals related to sustainable energy systems with increased energy efficiency and reliability. Everyone has to reconsider the individual energy consumption behavior Smart Grid means an evaluation from today s system, that is not by definition none smart Most of the products and systems needed to create a Smart Grid is here today: Power -systems, -products, Automation -systems, -products New functions like e.g. integration of large-scale renewables, electric vehicles etc will be tested by pilots and demo and research sites Energy storage Demand response Standards must be developed Smart Grid creates new jobs and attracts new skills June 22, 2010 Slide 36