1. SmartGrids From a Vision for Intelligent Electrical Grids
Ronnie Belmans
Katholieke Universiteit Leuven, Belgium
24 / 03 / 2010

2. Agenda New Energy Challenges Transition towards a SmartGrid
What value is created?
Helping integration of renewables towards a CO2-lean society
Consumer engagement
Long term job growth
Research, Development
& Deployment

3. New grid challenges EU Energy Policy
“EU policy focuses on creating a competitive internal energy market offering quality service at low prices, on developing renewable energy sources, on reducing dependence on imported fuels, and on doing more with a lower consumption of energy.”
In 1997 The European Commission proposed that the EU should aim to reach a 12% share of renewable energy by Directives were adopted in the electricity and transport sectors that set national sectoral targets. In 2006 the EU had reached a 7% share (of gross inland consumption) and the latest progress report indicates that the EU is unlikely to reach either the electricity or transport target for 2010.

4. EU Goals
Reduction of greenhouse gases
Energy consumption,
Efficiency increase
Share of renewable energy
100%
-20%
-20%
I. Concept European Energy Policy (slide 2)
Most of you will know the most important targets which the European Union has agreed to meet by 2020:
A 20% reduction of greenhouse gas emissions compared to 1990;
A 20% increase in energy efficiency; and
A 20% share of renewables including a 10% share for transport.
Notably, two of these targets are binding and are applicable at Member State level.
Hence, we have clearly passed the stage of non-binding political declarations and we now have detailed and firm commitments all over Europe. This is where the European Union has made a difference.
20%
8.5%

5. IEA 2030

6. IEA 2030
Ref: IEA WEO 2009 6

7. Annual energy related CO2 worldwide emissions
450 ppm scenario
Annual energy related CO2 worldwide emissions
Ref: IEA WEO 2009

8. European Policy Ten point action plan
Use the new internal energy market better
Make it easier for Member States to help one another in case an energy crisis arises
Improve the EU Emissions Trading Scheme
Energy efficiency
Increase the use of renewable energy
Technology
Low carbon technology for fossil fuels
Safety and security of nuclear power
Agree to an international energy policy
Improve understanding

9. Current European power system
430 million people served
2500 TWh used
560 GW installed 500€/kW = 280G€
km HV 0.4M€/km = 90G€
Approx km MV+LV network
1500€ investment per EU citizen
Largest man-made system
2007
430 million people served
2602 TWh used (+1.1% 2007)
560 GW installed 500€/kW = 280G€
km HV 0.4M€/km = 90G€
Approx km MV+LV network
1500€ investment per EU citizen
Largest man-made system
2008
Gegevens Entsoe nog slechts beperkt en niet in grafiek/kaart beschikbaar:
UCTE gegevens wel geupdate:
UCTE statistics
Million people served/GW/km geen gegevens over gevonden
Vraag is of U hier op deze slide dan entso-e mag laten staan?
Data provided by UCTE

10. Power generation in EU 2050
Ref: Eurelectric Power Choices: Pathways to Carbon-Neutral Electricity in Europe by 2050

11. New grid challenges Overview
Future of energy demand
Generation paradigm shift
Ageing assets
Markets and regulation

12. New grid challenges 1. Future of electricity demand
Rise of consumption at 2% a year
1250 TWh/year extra by 2030
Dependence on imported fuels?
Plug-in Hybrid Electric Vehicles?

13. New grid challenges 2. New generation paradigm
Current grid = hierarchical
One-way pipeline
Source has no realtime info on termination points
Peak demand reserve => inefficient use of grid
Demand
Traditional one-way supply system
Supply G
Generation
Transmission
Distribution

14. New grid challenges 2. New generation paradigm
Increasing wind generation & CHP units in Denmark

15. New grid challenges 2. New generation paradigm
Western Danish power system
400 kV
Interconnections
150 kV
60 kV
10-20 kV
400 V
4 central units:
1,488 MW
5 central units:
1,939 MW
80 wind power units:
160 MW
15 local CHP plants:
24 wind power units:
578 MW
18 MW
Range of central control
Non-dispatchable and beyond central control
543 local CHP plants:
1,104 MW
4.057 wind power units:
2,201 MW

16. New grid challenges 2. New generation paradigm
Importance of wind forecasting
Wind speed change of 1 m/s = variation of 320MW on a capacity of MW.
Control systems needed to avoid excessive backup capacity
“Fresh breeze”
means somewhere
between 200
and 1,600 MW

17. Technical miracles of the 20th century
Electrification
Automobile
Airplane
Safe and Abundant Water
Electronics
Radio and Television
Agricultural Mechanization
Computers
Telephone
Air Conditioning and Refrigeration
Interstate Highways
Space Exploration
Internet
Imaging Technologies
Household Appliances
Health Technologies
Petroleum and Gas Technologies
Laser and Fiber Optics
Nuclear Technologies
High Performance Materials
Still…
new generation paradigms
& ageing assets pose a serious challenge…
(Source: National Academy of Engineering)

18. New grid challenges 2. New generation paradigm
Future grid = distributed
Wind and solar “farms”
Home PV + CHP+ PHEV G
Generation G
Supply
Transmission
Traditional one-way supply system
Bi-directional supply system G G
Distribution
Generation
Demand
Generation

19. New grid challenges 2. New generation paradigm
Evolution in renewable energy production
& Trend in PRIMES base scenario

20. New grid challenges 2. New generation paradigm
Wind generation cost
Demand-pull
CO2-lean energy supply needs renewable energy resources
Dependency on primary energy sources
Rising/fluctuating (?) fuel prices
Liberalized market opportunities
Energy efficiency: CHPs
Subsidies, e.g. ROC
PV cost
Source: IEA
Technology-push
Experience curves of PV and wind
Break-even point?
Although not entirely true for wind due to bottlenecks in supply chain…
Electrical energy storage?
Source: PhD G. Nemet

21. New grid challenges 3. Ageing assets
Lagging investments in infrastructure
Rising demand = decreasing safety margins
Installation wave in European distribution systems in the 60s & 70s
 Replacement wave expected with business-as-usual approach
Opportunity for new system architecture and operation schemes

22. New grid challenges 3. Ageing assets
More complex role and increased responsibilities of network operators for planning and asset management.
Comprehensive integrated system solutions required from suppliers
A stable and predictable regulatory framework is required
Lack of EU-wide standards for integrated asset management and network planning
Long term vision

23. New grid challenges 4. Markets and regulation
Energy market
Data + information need > 20G€ investment (based on 100€ per connection)
GenCo
DistCo
Retail
TransCo
REGULATED

24. Drivers towards a smart grid
Regulation of
Monopolies
Innovation and
Competitiveness
Low Prices
And Efficiency
Primary Energy
Sources
Reliability and
Quality
Capacity
Nature
Preservation
Climate
Change
Kyoto and
Post-Kyoto
Internal Market
Security of Supply
Environment

25. SmartGrids Vision User-centric Stakeholder ownership Networks renewal
Distributed and central generation
Demand response
Interoperable European Electricity Networks
Liberalised
markets
Environmental policy

26. Challenges for 2020 and beyond
Micro- generation in millions of homes ?
50GW of wind power in the North ?
Smart Grids will be needed to ensure supply security, connect and operate clean and sustainable energy, and give value for money
Customer Interaction and Intelligent Appliances
plus wind variation / cloud cover / customer choice…
Ackgt TechFreep
30GW of solar power in the South ?
New DC Links and
Interconnections

27. SmartGrids Vision Multi-directional ‘flows’ End user real time
Information & participation
Seamless integration
of new applications
Central & dispersed
intelligence
Smart materials and power
electronics
Central & dispersed sources

28. SmartGrids Vision Enable active customer participation
Provide power quality for the 21st Century
Operate resiliently against attack and natural disaster
Enable new products services and markets
Anticipate and respond to system disturbances (self-heal)
Accommo-date all generation and storage options
Optimise assets and operate efficiently
Enable fundamental changes in Transport and Buildings
(Source: SmartGridNews.com)

29. SmartGrids Vision 20th Century Grid 21st Century Smart Grid
Electromechanical
Digital
Very limited or one-way communications
Two-way communications every where
Few, if any, sensors – “Blind” Operation
Monitors and sensors throughout – usage, system status, equipment condition
Limited control over power flows
Pervasive control systems - substation, distribution & feeder automation
Reliability concerns – Manual restoration
Adaptive protection, Semi-automated restoration and, eventually, selfhealing
Sub-optimal asset utilization
Asset life and system capacity extensions through condition monitoring and dynamic limits
Stand-alone information systems and
applications
Enterprise Level Information Integration, inter-operability and coordinated automation
Very limited, if any, distributed resources
Large penetrations of distributed, Intermittent and demand-side resources
Carbon based generation
Carbon Limits and Green Power Credits
Emergency decisions by committee and
phone
Decision support systems, predictive reliability
Limited price information, static tariff
Full price information, dynamic tariff, demand response
Few customer choices
Many customer choices, value adder services, integrated demand-side automation

30. SmartGrids Vision a smart metering revolution? a networks perspective
losses management & rewards
“an RTU at every service head”
intelligent demand control in emergencies
the portal to demand & micro-gen services
local network also the comms channel ?
operational visibility of local networks
new services to delight customers….
Load-limiting & remote disconnection

31. SmartGrids Vision How will the future grid look like?
Can we manage by stretching the current 380 kV grid to its limits? Or do we need a new overlay grid?
“Stretching” was successful for trains
Be aware of the “sailing ship syndrome”…
We must accept the limits of today’s situation

32. ? SmartGrids Vision A renewed grid vision? 1956 2020-2050 1948 1974
2008

33. SmartGrids Vision New roles for Network Co’s SS Integrator Optimiser
Energy
Storage
Grid Infeed SS
Integrator
Optimiser
Aggregator
Energy efficiency
Customer overall participation
Customer micro-gen types
Heat networks
Carrier communications
Manage constraints and minimise losses
Utilise smart meter data
Manage asset condition / predict failure events
Intelligent demand management in emergencies
Aggregator and manager of dispersed power sources
Aggregator and manager of ancillary services for local network and the grid
(Source: EON Central Networks)

34. sustainable, economic and secure electricity supply
SmartGrids Vision
Security of supply
DSO’s
SmartGrid
Consumers
Generators
TSO’s
Actions
sustainable, economic and secure electricity supply
Technology
Standards
Small scale generation
Market considerations
Consumer choice
Regulations
Reduced environmental impact
What is a SmartGrid?
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.
A SmartGrid employs innovative products and services together with intelligent monitoring,
control, communication, and self-healing technologies to:
better facilitate the connection and operation of generators of all sizes and technologies;
allow consumers to play a part in optimizing the operation of the system;
provide consumers with greater information and choice of supply; => Energy awareness
significantly reduce the environmental impact of the whole electricity supply system;
deliver enhanced levels of reliability and security of supply.
SmartGrids deployment must include not only technology, market and commercial
considerations, environmental impact, regulatory framework, standardization usage, ICT
(Information & Communication Technology) and migration strategy but also societal
requirements and governmental edicts.
Communication
Energy Awareness
Innovation
Self-healing

35. SmartGrids Vision Key Challenges
Strengthening the grid ensuring sufficient transmission capacity to interconnect energy resources, especially RES, across Europe
Moving offshore
Integrating intermittent generation
Preparing for electric vehicles
Enhancing intelligence of generation, demand and most notably in the grid
Communication between millions of parties in a single market
Developing decentralized architectures to enable smaller scale electricity supply systems to operate harmoniously
Activating consumers, with or without their own generation, to play an active role in the operation of the system
Moving offshore – developing the most efficient connections for offshore wind farms and for other marine technologies;
Integrating intermittent generation – finding the best ways of integrating intermittent generation including residential microgeneration;
Preparing for electric vehicles – whereas SmartGrids must accommodate the needs of all consumers, electric vehicles are particularly emphasized due to their mobile and highly dispersed character and possible massive deployment in the next years, what would yield a major challenge for the future electricity networks.
Enhancing intelligence of generation, demand and most notably in the grid;
Communications – delivering the communications infrastructure to allow potentially millions of parties to operate and trade in the single market;
Developing decentralized architectures – enabling smaller scale electricity supply systems to operate harmoniously with the total system;
Activation consumers– enabling all consumers, with or without their own generation, to play an active role in the operation of the system;

36. SmartGrids Vision Stakeholders Energy service providers
Technology providers
Researchers
Users
Traders
Regulators
Governmental
agencies
Network
companies
Generators

37. From passive towards active grids
Integration of decentralized generation?
Passive grids = Fit and Forget
Fault Detection: power can come from any direction
Power Quality: responsibility?
Voltage Control: responsibility?
Grid Planning: deterministic peak planning, cfr ER P2/5 in UK
 Significant grid problems at low levels of decentralized generation
Active grids
Normal operation
Curtailment of generation
Local power balance
Coordinated voltage control
Voltage regulators in-line
Fault situations

38. From passive towards active grids
Active distribution system has three layers
Copper based energy infrastructure (electricity)
Communications layer
Software layer
Copper based energy infrastructure (electricity)
Optimized topology
Power electronic devices
Communications layer
requirements of speed, quality, reliability, dependability with costs
different communication technologies at the same time
Software layer
multiple software functions for normal operation: doing locally and independently the maximum number of functions, reporting/requesting from the upper level the minimum possible information necessary
network reconfiguration
self-healing procedures
fault management
forecasting, modeling and planning.

39. From passive towards active grids New grid hierarchies
Cell concept (Denmark)
Hierarchical structure in the power system in which each cell coordinates local balance (market for DG), clears fault situations and communicates with other cells in energy trading
Virtual Power Plants (VPP)
Flexible representation of load & generation, acting as 1 entity towards DSO/TSO
(Source:
(Source: Risö)

40. Transmission system changes
CORESO
Central Western Europe
Development of market mechanisms
Strengthening security of supply
Efficient and safe management of the electricity system requires means of coordination and organizational structures at this scale

41. Ancillary services of small generation units
Voltage support
Feeder/transformer congestion
Impact on T&D reinforcement deferral
Black start capability of local grids?
By means of
Generation curtailment,
Generation dispatch, e.g. CHPs
Reactive power control
Demand control?
Storage?

42. Standardisation and interoperability
Lots of different standards exist
Overlapping scope and functionality:
Protocols for metering aspects, control-related or interaction
Information models for data exchange
Varying status:
De jure standards from established organizations (ISO, IEC, …)
De facto standards from alliances or user groups
Fully proprietary protocols
EC has acknowledged the need for harmonization
Mandate M/441 on smart metering assigned to CEN, CENELEC and ETSI
Speedy market acceptance demands standardization
e.g. Unified European electric vehicle plug

43. Public Acceptance much more than technology…
Smart Grids extend beyond networks and will embrace transport, the built environment, the behaviours and engagement of customers, and will need societal acceptance.

44. Public Acceptance much more than technology…
Smart Grids will require
Customer Acceptance and Participation in:
...Intelligent Appliances & Demand Response
...Smart metering with 2-way communications
...Micro-generation providing grid services

45. Public Acceptance Consumer values
Services more fit to consumer’s expectations
More information about consumption
More awareness
Energy savings
Faster and more adequate metering and billing
Smarter appliances / homes

46. Public Acceptance Privacy Issues Security Unknown privacy implications
Who can access which data?
cfr. April 2009: smart meter proposal in The Netherlands rejected due to privacy concerns
Need for regulations and contractual arrangements
Security
Cyberattacks on the grid
Meter fraud
Dependability
Design enables self-healing and resilience
Self-healing and resilience: Vinden van fouten in het net door digitale meters
Meter fraud Vb: Meters Italie betalen zichzelf terug door minder diefstal

47. Jobs Direct In the electricity sector: Direct utility SmartGrid
New ESCOs
Contractors
Installation accelerators
Service providers
SmartGrid equipment providers
Ref. KEMA
New jobs at classical energy companies
New jobs at new energy service companies
Contractors for the roll-out of smart grids
Smart grid equipment providers

48. Jobs Indirect Technologies dependent on SmartGrids
Renewable energy technology manufacturers
Distributed generation
CHP heat and electricity demand matching
PHEV
Charging cheaper when coordinated
Telecommunication sector
Renewables otherwise only limited penetration possible
DG ie CHP heat and electricity demand coupling
PHEV charging power flows need to be controlled to avoid grid problems, billing systems necessary for charging at tertiary locations

49. Jobs Both high and lower skilled workers necessary
Installing smart meters
Keeping the lights on
Long term job growth
Classical energy companies
New business models
Rollout is a huge effort
Every home needs a meter
Each windmill must be connected

50. Current Status
Global recognition of the benefits towards implementation of Smart Grids for all actors
Widespread rollout of “Smart” is technically possible during the next decade
Complex and not fully clear
how this evolution is going
to take place in practice

51. Current Status
Large-scale deployment not yet happened, why not? Some reasons:
Limited pilot experiences so far
Limited statistical significance of the quantification of benefits achieved in these experiences
Uncertainties regarding the global investments
Key challenges for the Smart Grid deployment:
Largely of regulatory nature
To a lesser extent influenced by research and development issues and by a lack of suitable demonstration pilot projects

52. What are the Elements for Success?
Action Now!
and beyond
2050 targets
2020 targets
REQUIRES research for tomorrow’s technologies
REQUIRE development of today’s technologies
REQUIRE
application of today’s technologies
These actions must be put in hand NOW

53. SmartGrids From a Vision for Intelligent Electrical Grids
Thank you for your attention !
Ronnie Belmans
Katholieke Universiteit Leuven, Belgium