RWE s view of the Evolution of the Smart Infrastructure What are the specific challenges and how is RWE tackling this issues in the future?



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RWE s view of the Evolution of the Smart Infrastructure What are the specific challenges and how is RWE tackling this issues in the future? Dr. Andreas Breuer, Vice President New Technologies/Projects, RWE Deutschland AG 27/05/2011 EC-Telecom-Utilities Workshop RWE Deutschland AG 19.07.2011 SEITE 1

Content Slide > Smart Grids Definition and distinction > Future challenges for distribution grids > Aligning distribution grids to growing demand > Conclusion RWE Deutschland AG 19.07.2011 SEITE 2

Smart Grids Definition and distinction RWE Deutschland AG 19.07.2011 SEITE 3

Smart grids form the platform for innovative energy services for smart energy Generation E-energy Trading Marketplace of the future MUC Smart meter Smart Grids Transmission grids Distribution grids Heat grids Virtual power plant Transit Smart home MUC = Multi Utility Communication IKT = Information and communication technology ICT Consumption Storage E-mobility RWE Deutschland AG 19.07.2011 SEITE 5

Future challenges for distribution grids RWE Deutschland AG 19.07.2011 SEITE 6

Specific measures and clear objectives help to meet current and future challenges Challenges Measures Objectives Demographics Structural change Consumption Distributed generation Age structure Regulation Innovative intelligent energy grids Grid development Grid Data Energy > Secure return on capital employed > Market-driven high supply quality > Energy-efficient and cost-efficient grids RWE Deutschland AG 19.07.2011 SEITE 7

The challenge of Demographics Decline in population by 2020 combined with an East-West shift provides only little potential for rationalisation 4,0% Deutschland REG Süd REG West REG Südwest REG Ost REG Mitte REG Nord 0,0% -4,0% -8,0% -12,0% Prognosis: Inhibitants 2020 zu 2004 RWE Deutschland AG 19.07.2011 SEITE 8

The challenge of Distributed generation The development of new wind energy and photovoltaic plants fills up the low-, medium- and high-voltage grids to the point of power flow reversal inst. capacity / annual peak load 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 160 % in 2020 70 % in 2007 WWE VSE Süwag RR LEW KEVAG enviam 2007 - Windkraft [%] 2020 - Windkraft [%] Source: Grid strategy process 2008 inst. capacity / annual peak load 70% 60% 50% 40% 30% 20% 10% 0% 60 % in 2020 10 % in 2007 WWE VSE Süwag RR LEW KEVAG enviam 2007 - Photovoltaik [%] 2020 - Photovoltaik [%] Source: Grid strategy process 2008 RWE Deutschland AG 19.07.2011 SEITE 11

The challenge of Age structure The assets installed in the 60s and 70s must be replaced in the short- to medium term new technologies are available Old technology New technology * qualitative presentation PILC Paper Insulated Layered Cable XLPE Cross Linked PE 1960 1965 1970 1975 1980 Year of construction 1985 1990 1995 RWE Deutschland AG 19.07.2011 SEITE 12

Aligning distribution grids to growing demand RWE Deutschland AG 19.07.2011 SEITE 14

RWE pools the activities aimed at aligning the distribution grids to growing demands Innovative intelligent energy grids Grid development Grid Data Energy Forecasting of supply task Analysis of grid situation Installation of smart grids using intelligent measures Strategy for incentive regulation Fee-based / tariffbased model ehz / tlz meters Data concentrator Data warehouse Virtual power plant Distributed storage systems E-energy G4V Example: Electricity grids of the future project of the Federal Ministry of Economics (BMWi) (sum 80 Mio. ) RWE Deutschland AG 19.07.2011 SEITE 15

Grid planning responds to the challenges of tomorrow s grids (I) Grid development Today Tomorrow Forecasting of supply task Analysis of grid situation Installation of smart grids using intelligent measures WEA PVA 10 kv 10 kv 0.4 kv WEA PVA 10 kv CHP FC 10 kv Electricity Heating/cooling Gas 0.4 kv FC µchp BZ Fuel cell PVA Photovoltaic plant WEA Wind power plant μkwk Micro combined heat-and-power G4V Grid for vehicle PVA µchp PVA G4V RWE Deutschland AG 19.07.2011 SEITE 16

Grid planning responds to the challenges of tomorrow s grids (II) Grid development Forecasting of supply task Analysis of grid situation Installation of smart grids using intelligent measures > Identification of regional supply tasks > Inventory of the current grid situation and extrapolation to the supply task to be expected > Identification of innovative tools for grid planning, especially new processes and operating equipment as well as monetary assessment of possible use RWE Deutschland AG 19.07.2011 SEITE 17

Grid planning responds to the challenges of tomorrow s grids Grid development Forecasting of supply task Analysis of grid situation Installation of smart grids using intelligent measures > Development of individual supply schemes, taking account of the interaction between electricity and gas > Revision of existing planning and operating principles > Currently in progress: BMWi project Netze der Stromversorgung der Zukunft RWE Deutschland AG 19.07.2011 SEITE 18

Distributed generation is efficiently integrated into the grid through virtual power plants (I) Energy Virtual power plant Grid control system Energy managment system Energy exchange Billing E-energy G4V G Biomass-fired power plant Weather service G Small-scale cogeneration plant Communication network Controllable loads Remote meter reading Photovolta ic plant Fuel cell Concentrator Mod. Z Mod. Mod. Mod. Mod. Mod. Z Z Z Z Z Distributed small fuel cells Wind power Distributed loads RWE Deutschland AG 19.07.2011 SEITE 19

Distributed generation is efficiently integrated into the grid through virtual power plants Energy Virtual power plant E-energy G4V > Virtual power plants enable operators to use marketing channels otherwise closed to smallscale plants for cost reasons > RWE is positioning itself to meet the political requirements for the promotion of distributed supply > Potential results were investigated using two pools of plants as examples: A: 36 plants, 23 MW revenue 565 k /a B: 36 plants, 99 MW revenue 1,280 k /a > Marketing in a pool would have resulted in higher revenues of 13 15 % compared to individual plant operation RWE Deutschland AG 19.07.2011 SEITE 20

The fusion of information and energy technology provides new leeway for efficiency and quality (I) Energy Virtual power plant E-energy G4V > In 6 pilot regions throughout Germany have the following aims in particular: Technical feasibility Increase in economic efficiency Improvement of supply reliability and climate compatibility Increase in energy efficiency, transparency Higher profitability of distributed supply units RWE Deutschland AG 19.07.2011 SEITE 21

The fusion of information and energy technology provides new leeway for efficiency and quality Energy Virtual power plant E-energy G4V Currently in progress: E-DeMa BMWi project Last Load und and Steuerung control of von household Haushaltsgeräten appliances Customer applications IKT- ICT Gateway via DSL, GPRS, PLC, Steuerung Control of dezentraler distributed Einspeiser supply units (µkwk) (micro CHP) (virtuelles (virtual power Kraftwerk) plant) Marketplace > Creation of incentives from EEX, suppliers and grid operators > Market for energy services E-DeMa Development and demonstration of decentralised integrated energy systems on the way towards the e-energy marketplace of the future Erfassung Recording von of sparten cross-sector ü bergreifenden meter data Zählwerten (Smart (smart metering) Metering) > Grid with online information for medium- and low-voltage RWE Deutschland AG 19.07.2011 SEITE 22

G4V Project Analyses the impact and possibilities of a mass introduction of EV/PHEV on electricity grids in Europe Energy Virtual power plant E-energy G4V > Consortium: RWE, EDF, EDP, Endesa, Enel, Vattenfall, Chalmers, ECN, Imperial, RWTH Aachen, TU Dortmund, UPVLC > Starting date: 1 st January 2010; Duration: 18 months RWE Deutschland AG 19.07.2011 SEITE 23

G4V Project Analyses the impact and possibilities of a mass introduction of EV/PHEV on electricity grids in Europe Energy Virtual power plant E-energy G4V > Objectives: Developing an analytical method to evaluate the impact of a large scale introduction of EV and PHEV on the electricity grid infrastructure in Europe Elaborating a visionary road map for the year 2020 and beyond taking into account all stakeholders and generating fast and openly available result $ $ www.g4v.eu Technical aspects Social aspects Ecological aspects Economical aspects RWE Deutschland AG 19.07.2011 SEITE 24

Conclusion > The future energy supply scheme will change dramatically Generation pattern change into an environmental friendly and more decentralized mix Customer become an active partner in energy markets, due to intelligent connection and appliances (Smart meter, EV and DG) > The complexity of middle and low voltage grids will increase and changing the way how to operate a DSO grid effectively > Smart Grid structures will fulfil future customer needs, but has to respect following expectations: Quality of supply (availability) Economical structure which fulfil the regulated conditions Smart functionalities of assets has to support the above mentioned task of supply RWE Deutschland AG 19.07.2011 SEITE 25