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1 Simplifying Smart Grids RE integrationsimple, robust and affordable Joint workshop IEA-EPIA and PVPS: Self consumption business models. Amsterdam, Sept. 22nd, 2014 Dr. Thomas Walter & Marie Berger

2 Agenda 1. How grids can benefit from Smartness 2. Smart evolution of established methods 3. Smart Grid key functionality simple, robust, affordable 4. Business model and approach 22/09/2014

3 1. How grids can benefit from smartness What is really needed?

4 How grids can benefit from smartness : Focus today: grid balance (I will get back to five steps later) Grid Control 2. Communicate balance of G/D 4. Incentive for user reaction 5. Execution of user reaction System Recovery Black Start Voltage Control Phase Control Identify Bottlenecks 1. Measure balance of G/D 3. Enable user reaction (e.g. DSM) Grid infrastructure: lines and topology Grid balance: generation and demand 22/09/2014

5 2. Smart evolution of established methods Synergy: sometimes one plus one makes three

6 Smart evolution of established methods Two (mostly) separate worlds Control by frequency: Control by price: Owners Engineering people Owners Commercial people Time range Milliseconds to hours Time range Quarter hour to days Detection Automatic (rotating mass) Detection Prediction, bidding, exchanges Transmission Automatic (grid frequency) Transmission ICT (computers and communication) Reaction Automatic/semi automatic (primary to tertiary control) Reaction Transferred into schedule, enforced by contract or penalty 22/09/2014

7 Smart evolution of established methods - combine the best from two worlds Information processing and communication uses existing technical system. Low cost, high speed and data security. Price setting and incentives by money rather than central control with energy exchange approach. Decentral control, market function and variable prices P [$/kwh] 7 22/09/ Consumer: Switch off if possible Consumer or storage: Switch on or charge if possible f [Hz]

8 3. Easy Smart Grid our solution The Pareto Principle: 80% effect with 20% effort

9 low Smart Grid key functionnality - delivered F i v e s t e p s to balance generation and demand with near zero transaction cost G price average 2. Communicate balance of G&D 4. Incentive for user 3. Enable user reaction reaction (price) D high price signal power Trading decision yes/ no Algorithm (Reference price) System status Market price model User preferences Demand 1. Measure balance of G&D 5. Execution of user reaction (billing by ESG meter) Generation Storage 22/09/2014

10 Benefits : simple, robust, affordable Data Security - inherent protection of private data Cost - massively reduced ICT infrastructure and storage need Stability - improved by less processing + transmission delay Robust against grid or communication failure, and hacker attacks Near Zero Transaction Cost to use full flexibility potential Simple - to understand, maintain and develop 22/09/2014

11 4. Business model and approach Early markets, high benefits, evolution instead of revolution

12 Market segments benefitting most Easy Smart Grid Public Weak grid Grid Operators - Protect assets and customer satisfaction - Improve stability in weak grids - Better use of limited capacity Public/ Private Shared Grid Infrastructure Players (governments, facility managers) - fair pricing in - Green-/brownfield developments - Clusters and anchor models, PPP Private Small (100 kw) Diesel hybrid Multi energy Medium (3 MW) Large (100 MW) RE developers and industry - Multi source integration (PV+Wind+Hydro +Biomass) complementarity, fair pricing PV developers and industry - More PV in diesel+pv hybrids 22/09/2014

13 Easy Smart Grid with step by step approach Step 1: Harvest low hanging fruit Step 2: Higher RE integration and storage Step 3: Full ESG implementation SmaCo box ESG meters

14 Thank you for your interest! Marie Berger, Dr. Thomas Walter Easy Smart Grid GmbH, Karlsruhe

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