SMART GRID MODEL PROJECTS IN GERMANY: LESSONS LEARNED AND FUTURE DEVELOPMENT
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1 Ludwig Karg, B.A.U.M. Consult München / Berlin SMART GRID MODEL PROJECTS IN GERMANY: LESSONS LEARNED AND FUTURE DEVELOPMENT
2 B.A.U.M. Consult: Facilitator for Smart Cities Action Field Research Projects Consulting for national and local authorities Consulting for enterprises Services/Projects Smart Grids, electric mobility, renewable energies (consulting, communication, project management) Implementing climate protection concepts, creating master plans for city development, facilitating regional and city development processes Implementing energy efficiency programs, supporting certification processes, technology networking Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 2
3 Smart City: Identifying Areas of Activity Residential Buildings Enterprises and Public Buildings Mobility Energy Energy Efficiency Renewable Energies Decentral Energy Supply Smart Energy Urban Development Urban Planning Water Resource management Activation Process Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 3
4 Decisions have been made! Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 4
5 The Future of Energy Supply Nuclear Water Natural Gas Coal Geothermal Solar Wind Biomass triangle of hope volatile & decentral Oil Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 5
6 Paradigm Shift Consumption-driven Generation plus Generation-driven Consumption Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 6 6
7 (Re)Construction of the Grid: Copper and Silicium Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 7
8 Linking all Components of a Smart Power System Smart Generation Smart Grid Smart Consumption Smart Storage Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 8
9 E-Energy programme Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 9
10 E-Energy: a multi-dimensional research agenda Energy Efficiency Market Liberalization ICT Architecture IT Security & Data Privacy Intelligent Metering ICT for Storage Integration of Renewables e-mobility Further Grid Construction Decentralized Energy Generation Increase Flexibility of Load Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 10
11 Together all areas covered Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 11
12 Together all areas covered cold stores swimmine Arena above Homes above 500 homes above 100 generators 50 private homes private homes (40 with storages) 80 enterprises 20 > 200 > private homes above homes 14 µchps Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 12
13 Cellular organism for secure supply Object Cell with energy butler serving as energymanager Distribution Grid Cell Markt Moderator Grid Moderator System Cell with Market Place and Grid Operation Energy Information Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 13 13
14 Living in a Smart House PV-unit and micro-chp Electric vehicle as storage Energy management including all household appliances If required, house can be operated as an autonomous cell Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 14 14
15 Communication from Generation to Consumption Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 15 15
16 Innovations in Homes micro CHP fuel cell heater battery storages Callux Modellprojekt Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 16
17 Smart Grids, Homes and Markets Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 17
18 ICT infrastructure: the key enabler Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 18
19 Demand Side Management Enables Power System Management Voltage problem ahead Bargaining process initiated Offers invited and accepted Voltage problem solved Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 19 19
20 A whole region as a Virtual Power Plant Comprehensive prognosis systems Innovative control room for Virtual Power Plant Balance and value added within the region Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 20 20
21 First results Saving potentials up to 20 % in businesses up to 5 % or 10 % in households Load shift potentials up to 10 % in private homes profitable in enterprises Diversity of proven incentives time of use tariffs bonus- and malus systems Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 21
22 First results ICT enables the market based integration of small-sized, decentral generation units without endangering the stability of the grid Aggregators can provide secure access to market places for small providers Cellular Approach enables security of supply Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 22
23 First Results ICT enables the integration of small-sized, distributed generation units without endangering the stability of the grid: Sensors necessary in the grid and at its borders Improved generation- and consumption prognoses are key RES units can provide for system services for the grid Conventional storage for short term load compensation; further storage technologies required for long term buffering Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 23 23
24 Demandside Management (one day) generation consumption generation consumption Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 24
25 Short Term Storage (one day) generation consumption load generation consumption unload Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 25
26 Long term Storage consumption generation J F M A M J J A S O N D load consumption generation unload Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 26
27 27
28 STORM? Smart Storage and Mobility A model to develop and decide upon holistic solutions to increase regional RES supply and outbalance volatility with appropriate buffering means. 28
29 The Principle Connect RES to the grid and control generation and consumption as possible Connect short term and long term storages to the grid and control them via ICT Implement algorithms to make best use of demand side management, generation side management and storages short term storage long term storage 29
30 Storage Options Technology Availability Storage period Storage volume Loical option storage of conversion (Biogas) +++ Days Power-to-Gas (Methane within gas grid) o Weeks +++ o Power-to-Gas (hydrogen within the gas grid) o Weeks + -- Power-to-Gas (hydrogen local) -- Days - + chemichal storage (Zeolith etc.) + Weeks o + compressed air storage + Weeks o o pump storage (regional) o Days o ++ pump storage (Scandinavia etc.) + Weeks ++ fly wheels (small-sized) +++ Minutes fly wheels (large-sized) -- Weeks o o mobile batteries (electric vehicles) -- Hours stationary batteries o Days Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 30
31 Smart energy supply with overlapping grids power grids gas grid heat grids mobility grids Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 31
32 ICT links the energy system s worlds Industrial Energy Management Linked System Level ICT- Infrastructure Level Smart Home E-Mobility Closed System Level Central Energy Generation Transmission Grid Distribution Grid Market s Storage Services Decentralized Energy Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin Generation 32 32
33 ICT links the energy system s worlds Industrial Energy Management Smart Linked Energy System Level Smart Home E-Mobility ICT- Infrastructure Level Smart Grid Closed System Level Central Energy Generation Transmission Grid Distribution Grid Market s Storage Services Decentral Energy Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin Generation 33 33
34 Control Signals for Good and Bad Times: Unbundling Version Electricity Sales Market Place Grid Operation Price Signal Cell Management Steering Signal Object Management Priority Signal Application Control Generation Unit Consumption Unit Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 34
35 Smart Energy: a System of Systems? Energy Information System cellular organisam, decentral processing and control, encapsulation of errors central control, bidirectional communication to generation, storage and consumption central control, limited ICT with grid components, gneration and consumption appliances monopol like market model regulated oligopol, new services, new functions (e. g. flexibility operator) big number of market participants using open market platforms Energy Market System Energy Provision System centralized generation, hierarchical grid distributed generation, levelled optimization cellular system with. autonomous parts (e. g. micro or nano grids) Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 35
36 One size does not fit all! grid topo & situation Challenge distributed small PV distributed wind or large PV high penetration of electric vehicles multiple deviations from prognosis
37 Summary Future energy systems need ICT. Technology is ready. Deployment is pending. Renewable energies call for a new energy market design. Existing market roles are getting under debate. Smart Homes are key for the Energiewende. Energy management reduces CO2 emissions and pays back as insulation does. Stress from renewables must and can be partially solved on local and regional level. Microgrids and cellular grid structures are a regionally viable solution. Municipalities can drive towards Smart Energy. They define the framework for power supply and a big portion of the building sector. Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 37
38 We need a base infrastructure! Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 38
39 Build your own Smart Grid: the E-Energy Animation Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 39
40 For more information Ludwig Karg Tel Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 40
41 BACKUP Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 41
42 Grids und mobility: joint demonstration projects Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 42
43 Transmission Grid Amprion TransnetBW 50Hertz TenneT TSO 4 control areas, 1 TSO for each area Non-discriminating access for electricity traders and/or retailers Procurement of control energy to maintain frequency stability Option to shed load from the grid or to allocate target values for power plants Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 43
44 Distribution Grid Low voltage and medium voltage grids Municipal jurisdiction >>> concession contracts for more than 900 DSOs DSO responsibilities: regional grid stability, load balancing and connection to grid users (generators and consumers) Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 44
45 From Feed-in to Market Models for PV electricity In the past: Returns from guarantueed feed-in remuneration Today: Returns from guaranteed feed-in remuneration (max. 70 % of installed capacity) Avoided purchasing of electricity Tomorrow? Proceeds from selling energy Proceeds from proving system services Avoided purchasing of electricity Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 45
46 Incentive strucutre for renewable energies Service premium Flexibility premium Market premium Market premium Market premium Market premium Market price < reference value Market price < reference value Market price < reference value Current market price > reference value Reference value (average market price) Guarantueed feed-in remuneration Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 46
47 New Business Scenarios Energy Supplier Energy Supplier plus Service Provider Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 47
48 Agenda 1. The German energy supply system 2. Global and national challenges 3. Energiewende What is to come? 4. Conceivable changes Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 48
49 Building of electricity supply Generation Grid Retail Central generation Decentral generation Transmission grid Distribution grid Electricity trade Electricity retail Electricity markets Electricity Exchange Stock market Control energy market Electronic marketplaces aggregators EEG Feed-In On-site consumption Direct marketing Utilization of electricity generation from DER Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 49
50 Building blocks of the future energy economy Generation Grid Retail Central generation Decentral generation Transmission grid Distribution grid Electricity trade Electricity retail Electricity markets Electricity Exchange Stock market Control energy market New: Regional market New: Capacity market Electronic marketplaces aggregators EEG Einspeisung EEG Feed-In On-site consumption Direct marketing Utilization of electricity generation from DER Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 50
51 Electricity Price Price range max. 7 ct 1-contract-model for private users kwh for private users, kw for commercial users Private user price at about 0,20 EUR/kWh Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 51
52 Marketplace and Services Demandside Management Demand Control Demand Response Generation Management Capacity Management System Services Electronic Marketplace Dynamic Tariffs Specific Contracts Supplier Grid Operator Aggregator Generator Consumer Enterprise Mobility Provider Market place Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 52
53 Feed-in and on-site consumption of PV electricity In the past: Returns from guarantueed fee-in remuneration heute: Returns from guaranteed feed-in remuneration (max. 70 % of installed capacity) Avoided ersparter excess Zukauf purchasing of von Strom electricty Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 53
54 Challenging Volatility Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 54
55 Storage-Demand and Storage-Supply Pump Storage Gas Grid Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 55
56 Profitable flexibility especially for commercial users Central energy manager Switching on/off consumers Cold storager compressed air aggregator request offer call Energy Manager* A batteries request delivery * Energy manager react to requests and offer flexibility within the realm of preset parameters Company A request offer call Energy Manager B Company B TSO/DSO/electricity trader request offer call Energy Manager C Company C Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 56
57 Changes in the regulatory framework Intensive interaction between regulatory bodies and E-Energy actors Central questions: Which components of the system are parts of the grid, which components are parts of the market? Which ones should be regulated? Who is responsible for the security and non-discriminating operation of the ICT infrastructure? Will we see a development of entirely new market roles or the establishment of new functions wit existing market roles? Which tariff-or contract-instruments(reduced network charges, flexibility premium) can be developed by the TSO to create incentives for generators, energy users and retailers? How can decentralized generation units be commited to or incentived to offer system servives for the stabilization of the grid ( broadening of 14a EnWG if indicated) Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 57
58 Recommendation of the E-Energy Task Force Legal Frameworks quick allocation of responsibilities and clarification of the financing question regarding the construction of ICT infrastructure for the Smart Grid Enable timely returns of investments in Smart Grids Immediate reimbursements for mandatory installations Renunciation of the manadatory use of standard load profile Data security and inforamtion security must be respected (long term) enabling cellular approaches, e.g. microgrids (long term) time- and load dependent network charges Freiburg, Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 58
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