Smart Grid, systems and services to use electricity the smartest way HÅKAN P JOHANSSON ABB AB SWEDEN

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1 Oct.26-28, 2011, Thailand (PL-11) CIGRE-AORC Smart Grid, systems and services to use electricity the smartest way HÅKAN P JOHANSSON ABB AB SWEDEN SUMMARY Transmission of electric energy over long distances is a well proven concept within the electricity supply industry. Due to the nature of the electrical grid, care must be taken to maintain synchronism as well as voltage stability at all times, particularly in conjunction with system disturbances. Many years of successful use of different technologies such as FACTS and HVDC, to mention some, have proved the viability of this option for bulk power transfer. Environmental and economical reasons will in the near future require power companies to look at even more complex balance and load scenarios due to introduction of large scale renewable electricity generation, like large on- and offshore wind parks and solar power installations, but also distributed electricity generation in residential areas. Wind and other intermittent generated power are dynamic by definition and will require additional balancing power to maintain stability and quality of electrical supply to consumers. Both the wind power s dynamic contribution to electricity generation and the electrical vehicles random demand of electricity require a balancing force in the electricity grid. Out of several research projects which have addressed management of these situations in the grid, the paper will present two projects in Sweden more in detail, the Stockholm Royal Seaport, in the very heart of the city of Stockholm and the island of Gotland. The learnings out of the pre studies for these Smart Grid projects will be examined in the paper. Challenges as well as benefits for all stakeholders in the system, depending on technical and commercial features, will be highlighted. Stockholm Royals Seaport aims to be a large scale test site with international focus. Stockholm city was appointed an affiliate city in the Clinton Climate Initiative and the Large Cities Climate Leadership Group (renamed "C40"). Stockholm City, ABB and Fortum, the DSO, want to build an urban district in the Stockholm city with very low climate impact, the Royal Seaport. This is to be done with i.e. an urban Smart Grid. The City of Stockholm is a main stakeholder and the project will work in close co-operation with the city throughout the whole project. New market models and services will be developed to involve active customer participation and pave the way for new market players. hakan.p.johansson@se.abb.com

2 The Smart Grid Gotland project will develop strategies for the planning, construction and operation of a fully developed, large-scale Smart Grid, including a large share of intermittent production, primarily from wind power in the distribution network. ABB, the DSO s GEAB and Vattenfall will together develop and test the future Smart Grid components and systems such as smart distribution grid, consumer and producer integrated etc. Also, the project can likely become an international model for a long-term sustainable electricity power system. Developed solutions from these projects shall be easy to adapt in all parts of the world with similar ambition related to reliable and efficient power grids. Interaction with new standardization work in this rapidly progressing area will enable easy access for other companies and solutions to expand and further develop Smart Grid projects. The final deliverable of these pre-studies is proposed Smart Grid concepts including market models and technical solutions is to be deployed and tested in full scale. KEYWORDS Smart Grid from source to socket 1

3 Introduction The fast-changing electricity supply industry is bringing the users of electricity systems fresh opportunities, as well as challenges. These stem traditionally and mainly from a strong increase in inter-utility power transfers, the effects of deregulation, political decisions, economical and ecological considerations on the building and upgrading of new production, transmission and distribution facilities. At the same time there is an increased focus from society on security and availability. Power disturbances like voltage fluctuations and outages are not accepted. Nor are derations or interruptions of industrial processes due to lack of power or insufficient power quality. A system in transformation To meet these, partly new challenges, today s electricity networks need to be modernized in order to handle the planned increased amounts of e.g. renewable generation. Production is expected to become more distributed than previously. Further, the involvement of the end user is important to be able to handle the balance between production and consumption. This evolution from today s grid to a more flexible grid is referred to as the Smart Grid. [1] The Smart Grid is a prerequisite for a grid in balance with e.g. increasing share of sustainable intermittent generation. At the same time the load will be more intermittent with large scale charging of electric vehicles and changed customer consumption patterns. In e.g. Europe, the push for renewable power is driven by fulfilling the European Union s targets (20/20/20). New technical solutions New technical solutions have to be developed and a new mind-set introduced, for the implementation of a more flexible and sustainable energy system with a more efficient use of energy. Also new market models and a more sophisticated electricity production and distribution system have to be developed to support an increased number of active players, for example service providers, third party business aggregators and Renewable Energy Sources (RES) producers to develop products and services to customers. This paper will discuss how this evolution can be seen as the implementation of new technical solutions to keep the grid stable with these new conditions. Fig.1 The evolution from today s network to a Smart Grid Fig. 1 gives is a simplified view on the evolution from a traditional radial system to a more complex grid where production and consumption patterns are more consumer driven. 4

4 Fig.2 Smart Grid technologies, a jigsaw puzzle of products, systems and services to use electricity the smartest way. Improving and safeguarding power systems, on transmission as well as distribution levels, have always been very important driving forces. The traditional approach to keep and improve capacity and quality in power transmission and distribution grids in many cases is addition of new transmission and/or generating capacity. In fig. 2, the implementation of e.g. large scale renewables does not change this importance of a stable grid-infrastructure, and can still be seen as one of the basic requirement to keep a strong and reliable power grid [2]. What we can see in the future is a need to integrate, apart from the large scale renewables, also large scale EV charging, active consumers [3] and integration of micro generation. The assumptions for the world wide investments needed to create a fully functioning Smart Grid are varying, but a likely scenario is the major investments to be in the distribution area. However, considerable investments are also needed in transmission & substations and on the consumer side. Test beds 1 Two out of several ABB Smart Grid pilot projects, to test the from source to socket approach is Stockholm Royal Seaport, [4] in the very heart of the city of Stockholm and the Smart Grid Gotland.[5] Gotland is an island about 130 km east of the southern part of the Swedish main land. Each of the projects shall be seen as an open innovation arena. Representatives from academia, small- and medium sized companies, research institutes and the public sector are invited to contribute with complementary research and new innovative solutions inside and around the pilot implementations. The main objective of the proposed innovation arenas is to create a virtual and physical meeting point where an innovative environment can be developed. The arenas will be both test areas and showplaces for new innovative solutions, where ideas will be tested and displayed in a real world application. New innovative ideas and commercial projects for smart grids can be developed within the smart grid pilots and in a wider perspective, be brought to a global market. 1 A test bed ( in research publications) is a platform for experimentation of large development projects. Testbeds allow for rigorous, transparent, and replicable testing of scientific theories, computational tools, and new technologies. Source: Wikipedia 5

5 Stockholm Royal Seaport - an urban Smart Grid project Stockholm Royal Seaport R&D project is a new urban city area with targets concerning climate and ecological, social and economic sustainability. Focus is on customer values and new market models and services, which will be developed to involve active customers as well as develop incentives and possibilities for new market players. In the long term this shall be developed into a climate positive city area. The city area shall be fossil free in Sustainable energy usage, a recycling society, environmental efficient transports and buildings and sustainable generation and consumption patterns shall be in focus. When constructing the new area, the Life Cycle Cost (LCC) principle shall be used. Area: 236 hectares. Land owned by the City of Stockholm. Building start: 2010 Completion: 2025 Current construction: soil remediation, infrastructure First occupancy: 2012 New apartments: New work spaces: Commercial areas: sqm Energy target: 55 kwh sqm/year and apartment Distance to city centre: 2.1 miles Infrastructure: Biogas buses, city tram, metro, district heating, new lanes for pedestrians and cyclists etc. Fig. 3 Stockholm Royal Seaport, a new urban district in central Stockholm. Source; City of Stockholm Stockholm Royal Seaport, Fig. 3, is a city development project with the ambition to be a world class sustainable city project with international visibility by partnering with the Clinton Climate Initiative and other global climate initiatives. The project started in 2010 and the Smart Grid portion will be completed in 2014 and the whole project The area includes approximately apartments and workplaces and required infrastructure. The area in addition includes a large port that during this time period will be transformed from an industrial port to a entry point for ferries and cruisers visiting Stockholm. To optimize the consumption of energy without compromising the comfort of the customer, it requires intelligent control of energy production, as well as energy consumption empowered by communication solutions. Residents served by a Smart Grid are empowered to become active members of a sustainable city and by that help to reduce the impact on our climate by consume energy in a more sustainable, smarter, way. Smart Grid Gotland The Smart Grid Gotland R&D project intends to develop strategies for planning, construction and operation of a fully developed, large-scale Smart Grid, including a large share of intermittent production, primarily from wind power in the distribution network. New market models and services will be developed to involve active customer participation and pave the way for new market players. Through this development of the future smart distribution grid, consumers and producers will be fully integrated in an R&D project that is likely to become an international model for a long-term sustainable electricity power system. 6

6 Develop and demonstrate a Smart Grid solution to enable - Large scale integration of wind - Active consumers participation - Reliable and secure grid operation - Smart Grid System Control - Grid Automation - Smart Substations - Energy Storage [6] - Power exchange with mainland by HVDC interconnection - and more The key drivers for the Smart Grid Gotland project can be summarized as studying: - Benefits for society - Benefits for electricity generation utility - Benefits for the distribution system operator, DSO - Benefits for end consumers Fig. 4. The island of Gotland, about 130 km off the southern part of the Swedish main land. Existing system as base for the further development The Smart Grid Gotland project intends to upgrade the existing power system on the island to a true Smart Grid system. The project will implement new and advanced equipments and methods to facilitate and significantly increase the utilization of renewable energy sources (RES) in the network. The Smart Grid Gotland Project, fig. 4, enables a possibility to test components and systems together, which has not been done before. The components and techniques are known, and some have been tested separately but not together, integrated in a system. The pilot can provide answers to questions like: 1. How do the components act when provided a possibility to communicate with each other? 2. Which benefits do they enable as a system, that they do not provide separately; and 3. Which challenges arise due to unforeseen effects? The total picture gives a larger understanding of the Smart Grid as a whole and a valuable knowledge base about the functions of separate components, possibly also leading to the fine tuning of the system in order to be faster and more intelligent; to the development of new services and to the development of new roles such as aggregators. Smart Grid benefits For an electricity generation utility, a Smart Grid enables the power utility to connect more renewable power into the grid. An energy utility that invests in e.g. wind power plants is dependent on a well-functioning and well-designed electricity grid, as well as on optimizing the load, in order to actually deliver the electricity generated. As wind power production fluctuates greatly, large and costly grids need to be able to distribute all the electricity produced at peaks. The fluctuations of renewable power also require additional power reserves and balancing power of conventional types, but also new energy storage technologies. [7] Frequent start-up of emergency power, production fluctuations and continuous shutdowns means high maintenance costs and over time an increased numbers of un-planned outages. If the Smart Grid customers can act as a kind of reserve capacity, by e.g. reducing their load and integrate storage facilities, the Smart Grid can reduce the 7

7 operation costs for the utility and improve environmental performance by running the generators under optimum conditions. Distribution By smart substations can the distribution system operator, DSO, reduce the need and cost of maintenance in the regional and local distribution grid, due to the fact that the components of the grid better indicate the need for maintenance on the grid and on the components. Traditional pre-set maintenance plans are thus replaced by condition-based maintenance. The Smart Grid also disburses loads, supervises and operates the regional grid and feeders more efficiently, which lowers the losses in the grid and increases the overall energy efficiency. Another advantage for the DSO is the improvement of power quality, such as reduced harmonics and reactive power support. [8] As a consequence, e.g. the number and lengths of outages is reduced. With higher quality and less outages, the DSO can be allowed by the regulator to use a higher tariff for the electricity distributed. Consumers For the end consumers e.g. large consumers of electricity such as industries sometimes have sensitive process equipment that needs reliable electricity with high quality and small voltage differences. Smart grid components can improve the quality of electricity by detecting faults, re-direct, heal and compensate for reactive power and harmonics. The customers will benefit from less outages, both in number but also in length. Less outages are expected since faults can be detected more efficiently, and since the installed devices will indicate if the quality of the grid is deteriorating. Large as well as small consumers can also act, not only as consumers but also as producers of electricity, with a two-way grid connection, providing the consumer the possibility to be more independent towards the electricity utility. Large as well as small consumers can agree to actively or passively participate in demand response agreements with an energy utility, with or without the assistance of aggregators. The demand response agreements can involve the shutdown of selected equipment during certain periods of high demand, and in return a financial incentive. Further, by having a flexible consumption, the spot prices will decrease from a macro perspective since the more expensive power generation is not needed during peak hours. Conclusion Smart Grid is one of the enablers for a sustainable energy system, with focus on reduction of CO 2, increase of energy efficiency, increased share of renewables, with maintained high level of reliability. The key challenges will be integration of large scale renewables, small scale distributed power, active prosumers (producer consumer)and e-mobility. EVs and active houses can also be active components in the grid, for example consuming when excess power is available in the system, reducing peak loads by shifting consumption in time avoiding peak hours, and contributing to the grid stability by releasing power at shortages. This requires incentives for the consumers, which means that smart grid and the integration of e.g. renewables and EVs is not only a technical issue, but also an issue related to business models, regulatory frameworks and standards. [9] 8

8 BIBLIOGRAPHY [1] Toward a Smarter Grid ABB s Vision for the Power System of the Future white paper [2] RGI Submission to Infrastructure Package, 22 October 2010 The Renewables-Grid-Initiative [3] Smart Grid Principal Characteristics, Enables active participation by consumers. National Energy Technology Laboratory, September 2009 [4] September 2011 [5] Vattenfall research and development magazine. No.2 June 2010 September 2011 [6] J Eyer, G Corey. Energy storage for the electricity grid, benefits and market potential assessment guide a study for the DOE energy storage systems program Sandia National Laboratories. Technical report FAND , 2010 [7] DJK Link, C Wheelock Energy Storage technology market Advanced battery technologies, pumped hydro, compressed air, flow batteries and frequency regulation for utility scale storage application. Pike Research, 2009 [8] M Holmberg, M Lahtinen, J McDowall, T Larsson SVC light with energy storage for frequency regulation IEEEE conference on innovative technologies for an efficient and reliable electricity supply. Paper 667 [9] IEC Smart Grid Standardization Roadmap, Smart Grid Strategic Group (SG3) June 2010 Short Bio-data of Main Author Håkan Johansson started his career at ABB During the years Mr. Johansson has held different executive positions, in sales and marketing. He is currently holding the position as Senior Specialist, Smart Grid, managing Marketing and Market Communication of the Smart Grid Initiative within ABB. 9