Ubiquitous Computing in Business Processes Part V Prof. Dr. Lutz Heuser AGT Germany Prof. Dr. Zoltán Nochta SAP AG Darmstadt January 16, 2015
Outline 1. Smart Grids and Energy Management
Overview Common Electricity Sources Conventional Distributed Gas-fired micro-chp* (usually < 100 kw electrical output) High energy efficiency (up to 90% of primary energy converted into usable energy) Centralized Nuclear Practically zero emissions, waste problem Gas, coal, oil, waste Low energy efficiency (30-40%) Renewable * CHP = Combined Heat and Power Biofuel-fired micro-chp Photovoltaics Solar heating Windmills Zero emissions, low investment, high coordination effort, distributed ownership Solar-thermal power station On-/off-shore wind parks Hydropower Zero emissions, large investments, transmission capacity required, political risk (cf. DESERTEC project) Source: SAP AG Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 3
Electricity Market Participants and Main Interactions Result of market liberalization and unbundling of market roles Trading via wholesale markets, e.g. European Energy Exchange (EEX) Bilateral a.k.a. Over-The-Counter (OTC) trading Wholesale Market Energy Retailer Distributed Generation Operator Consumer Transmission System Operator Large Power Producer Distribution System Operator Sells energy to Energy flow Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 4
Main Objectives of Intelligent Energy System Operation Avoid/minimize consumption and production peaks Increase share of distributed and renewable energy sources Reduce overall energy consumption Ensure safe supply at affordable costs for industry and residential consumers 20000 Typical Daily Load Curve 16000 Load (in MW) 12000 8000 4000 0 00:00 02:15 04:30 06:45 09:00 11:15 13:30 15:45 18:00 20:15 22:30 Source: SAP AG Time of the Day (in 1/4 Hours) Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 5
Internet of Energy based on Smart Interconnected Devices Weather prediction: Sunny, Windy, 23ºC Energy production covers (estimated) needs Lower electricity production Wind leads to more electricity generation M. SANCHEZ, 2006, Quelle: European Technology Platform SmartGrids Green electricity available Sun leads to increased electricity generation Heat generators are not needed Electric car can get cheaper recharge SAP 2009 / Ubicomp / Heuser, Nochta / Page 6
ICT in Distribution Grids and Energy Markets Today High level of insight and automation in High- and Mean-Voltage Grids in place Electronic trading of large amounts of energy is well established Limited ICT usage in Low Voltage Grids, invisible production & consumer devices Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 7
ICT in Distribution Grids and Energy Markets Tomorrow Continuous monitoring and control of selected consumption devices and consumers production facilities Efficient bundling of smaller production facilities into Virtual Power Plants Demand Side Management (DSM) in both industry and residential scenarios Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 8
Scheduling Distributed Energy Resources Fixed feed-in tariff Central planning and optimization Auctioning Continuously run at maximum capacity Fosters investments into renewable and distributed energy sources Run according to received control signals Suitable for single ownership and/or control; Individual optimization while maximizing common welfare Market-determined prices; suitable if efficiency of distributed energy resources is on par with conventional generation Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 9
Dynamic Energy Pricing based on Auctions Classification of Auction Methods: Number of buyers and sellers Demand auction 1 seller and m potential buyers Double auction n buyers and m potential sellers Clearing intervals Clearing: Matching of received bids and price determination Continuous: every new bid triggers clearing mechanism Periodic: fixed time intervals or predefined dates for clearing Information disclosure Final results only (e.g. clearing price only) Bids of all sellers and buyers are disclosed Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 10
Double Auction - Principle and Example Goal: Based on participants bids find a clearing price that maximizes the number of matching deals at the end of each period (-> safe supply) and helps minimize electricity costs on the long run (-> protect consumer). Auction targets predetermined amount of energy, e.g. 1 MWh units Bidders enter Sell or Buy bids incl. their preferred price, e.g. Sell (1 MWh) for 15 (Euro) Sell 15 Buy 11 Buy 7 Buy 15 Sell 9 Buy 7 Buy 13 Buy 9 Sell 6 Sell 13 Sell 8 Buy 4 Sell 13 Sell 8 Buy 4 Sell 12 Buy 7 Buy 3 Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 11
Double Auction - Principle and Example Step1: Sort all bids of buyers and sellers based on price Sell 15 Buy 11 Buy 7 Buy 15 Sell 9 Buy 7 Buy 13 Buy 9 Sell 6 Sell 13 Sell 8 Buy 4 Sell 13 Sell 8 Buy 4 Sell 12 Buy 7 Buy 3 Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 12
Double Auction - Principle and Example Step2: Determine Clearing Price (CP) Clearing Price := M th highest price M=Number of Sell bids In example: M=8, CP=9 Sell 15 Buy 11 Buy 7 Buy 15 Sell 9 Buy 7 Buy 13 Buy 9 Sell 6 Sell 13 Sell 8 Buy 4 Sell 13 Sell 8 Buy 4 Sell 12 Buy 7 Buy 3 Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 13
Double Auction - Principle and Example Step3: Determine Matching Bids Sort Buy bids with Price CP in desc. order Sort Sell bids with Price CP in incr. order Starting with i=1, match i th Sell with i th Buy (until one of the lists is empty) Matching bids in example: Sell 15 Buy 11 Buy 7 <Buy 15, Sell 6> Buy 15 Sell 9 Buy 7 <Buy 13, Sell 8> <Buy 11, Sell 8> Buy 13 Buy 9 Sell 6 <Buy 9, Sell 9> Sell 13 Sell 8 Buy 4 Sell 13 Sell 8 Buy 4 Sell 12 Buy 7 Buy 3 Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 14
Smart Electricity Metering Today s smart electricity meters periodically record actual consumption of electric energy and other parameters relevant to operate the grid, automatically send measured values to the utility for mainly billing and monitoring purposes, usually enable a two-way communication between the meter and the central system of the utility, e.g. for remote configuration purposes, provide notification capabilities, e.g. to raise alarm upon detecting power quality issues, allow consumers to monitor consumption via integrated display offer API to capture data for external applications, to install software/firmware updates, etc. Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 15
Smart Metering within Utilities IT-Landscapes Vendor/device specific comm. Metered Data On-Peak (kwh) Off-Peak (kwh) Meter Reading Req./Res. Billing Demand Planning Energy Procurement Customer Relationship Mgmt. Master Data Demand Side Management Process Data Regulatory Compliance Grid Monitoring Middleware Events Maintenance planning Source: SAP AG Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 16
Benefits of Smart Electricity Metering Potential Benefits for Utility Providers and Grid Operators Increased accuracy of billing Higher operational efficiency by reduced labor costs Enables Pre-payment and Flexible Dynamic Tariffs (vs. Fixed Tariffs today) Improved forecasting of electricity demand (intraday) Efficient outage and tamper detection End-to-End grid quality monitoring Potential Benefits for Consumers Improved cost monitoring and consumption forecast Detection of energy intensive devices Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 17
Demand Side Management Production Driven Demand Demand Side Management (DSM): aims to adapt electricity consumption according to the availability of electrical energy and/or to the optimal utilization of grid capacity, helps optimize energy production, distribution and trading, helps integrate volatile (renewable) energy sources, does not necessarily lead to reduced energy consumption overall. Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 18
Demand Side Management Production Driven Demand Basic DSM mechanisms Dynamic tariffs and price signals to motivate load-shifting Brute-force, e.g. shutdown by grid operator to avoid grid-critical state Customer education and non-monetary incentives to adapt behavior DSM business potential Feasible in energy intensive industry processes that run on controllable devices with energy storage capacity (mechanical, thermal, or electrical energy) Today less relevant in residential/household segment Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 19
Demand Side Management Demo Provider View Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 20 Source: SAP AG
Demand Side Management Demo Device Monitoring View Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 21 Source: SAP AG
Outline 2. Electric Mobility in Smart Cities
Overview Electric Vehicle Types Combustion Engine Hybrid (parallel) Battery Electric Vehicle Plug-in Hybrid Fuel Cell Gasoline or Diesel- Engine drives the wheels. Combustion engine combined with an electric motor and a small battery. Both can drive the wheels, either combined or independently. Electric energy is stored in a Battery, electric motor drives the wheels. Similar to Hybrid with larger batterycapacity. Converts Hydrogen to electric energy, electric motor drives the wheels. + high range + fast refueling + availability of fuel + technically mature + stores energy on deceleration + better efficiency of the combustion engine due to additional load + 0-3 km electric range + good acceleration + zero-emission + noiseless + high starting torque + good acceleration + no gearbox needed In addition to Hybrid: + 10-70 km electric range + battery externally chargeable + zero-emission + noiseless + high starting torque + no gearbox needed + fast refueling + high range - emissions - noise - low engineefficiency - high costs - high weight - inefficient at higher / constant speed - limited range - duration of charge - high costs - high weight - emissions depend on primary-energy chain Additional to Hybrid: - very high costs - very high weight - very high costs - availability of Hydrogen - emissions depend on primary-energy chain of Hydrogen Source: SAP AG Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 23
Why Electric Mobility? Fossil fuel dependency reduction Sustainable mobility concepts Greenhouse gas emission reduction Green/Cool imagedriven customer demand Technologies available today Car looses status function Smart grid Grid stability Smart mobile devices Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 24 Source: SAP AG
Can electric vehicles fulfill drivers requirements? Electric vehicles available today can meet average requirements: Average range distance of electric cars: ~80-150 km Average distance a person travels daily: ~42 km 90+% of all travel distances are below 100 km Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 25
Market Roles to Operate E-Mobility for End-Consumers Customer Contract & Tarif Management E-Mobility Provider Revenue Management Customer Identification Charging Station Reservation Charging Charge station Infrastructure Provider Energy & Cost Optimization Energy Suppliers Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 26
Energy Management Optimize Cost and Stabilize the Grid Electric Vehicle Battery Parameters (e.g. Li-Ion) Desired pick-up time Current Charging Status of Battery Desired Total Charging Energy [kwh] Electric Vehicle / Driver Energy Flow Technical Parameters Number and Location of Vehicles to Charge Transmission Capacity and Energy Production Bottlenecks Charging Infrastructure E-Mobility Energy Management Commercial Parameters Prices and Tariffs Products Optimized Charging Schedule E-Mobility ERP Management Energy Flow Grid Connection Point E-Mobility Provider Energy Purchasing Working Energy Price Available Renewable Energy Energy Grid Current & Forecasted Power Grid Bottlenecks and Costs Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 27 Source: SAP AG
Energy Management Multi-Dimensional Optimization Ubiquitous Computing in Geschäftsprozessen / Lutz Heuser, Zoltan Nochta / Page 28
Outline Thank you!