An introduction to smart grids

Transcription

1 Background information Smart grids An introduction to smart grids Electricity is the most versatile form of energy available and it can be accessed by more than 5 billion people around the world through a series of tried-and-tested technologies. Our traditional power systems are based on centralized generation plants that supply end-users via long-established, unidirectional transmission and distribution systems. These systems have served us well, in many cases for more than a hundred years, but times are changing. Societies are demanding cleaner energy supplies to combat climate change and demand for electricity is rising. This means more electricity must be generated from a greater variety of sources. Wind, solar, biofuel, and geothermal plants will all be needed, as well as coal, gas and nuclear, with significant consequences for the power system. The mix of renewable, thermal and nuclear power plants will introduce new variation in the quality of power in the grid. Weather patterns affect the availability of wind and solar power, and the emergence of distributed power generation (rooftop solar panels, for example) will complicate matters further, requiring local networks to receive as well as deliver power. The existing power supply infrastructure is unable to manage such complexity, and needs to change. It needs to be equipped with advanced communications and information technologies to monitor, analyze and organize the supply and demand of electricity. This is what is meant by a smart grid. Why do we need a smart grid? The major driver for the evolution of the power system is the need to meet rising demand for electricity while reducing carbon emissions to avoid irreversible changes to the earth s environment. All this must be achieved without compromising the reliability of electricity supplies on which the world s economies are increasingly dependent. Figure 1: Global demand for electricity TWh Source: International Energy Agency, World Energy Outlook 2009 Between 2000 and 2007, global demand for electricity rose, on average, by 2.5 percent a year (see figure 1), and the trend continues. By 2030, it is anticipated that global electricity demand will all but double to 30,000 terawatthours (TWh) a year. If this level of demand is to be met, we will need to build a one-gigawatt ABB background information: smart grids 1

2 TVs, fridges, freezers Light bulbs Motors and drives (GW) power station and its associated infrastructure every week for the next 20 years a daunting prospect. Given that this level of expansion is necessary to meet demand, what effect will all these new power stations have on the environment? Since 40 percent of anthropogenic CO 2 emissions are currently produced by electrical power generation, simply scaling up today s operations to meet the rise in demand will not be acceptable. So how can we meet demand and still keep CO 2 emissions in check? According to the International Energy Agency (IEA), which has proposed a number of scenarios for the future of global carbon emissions, annual emissions in 2030 could be reduced from the current prediction of over 40 Gt (gigatons) CO 2 to just over 26 Gt by the implementation of a carefully designed set of policies. These policies aim to limit global warming to 2 C above preindustrial levels, which should limit the effects of climate change to an acceptable economic, social and environmental cost. Figure 2: Energy and renewables could deliver bulk of CO 2 savings Gt CO policy scenario Reference scenario As shown in figure 2, more than half of the savings predicted for this policy scenario come from the implementation of energy efficiency measures and a fifth come from an increase in renewable power generation. The development of more intelligent power systems will directly support these two objectives. In a smart grid, advanced technologies improve energy efficiency by managing demand so that it matches the availability of electricity, and they feed renewable energy into the network without letting changes in weather patterns affect the stability or reliability of the supply At the same time, using satellite, wireless and real-time communication, advanced technologies will enable utilities to pinpoint problems in the grid faster than they are able to today. 57% 20% 10% 10% Energy efficiency Renewables Biofuels (3%) Nuclear CCS* *Carbon capture and storage Source: International Energy Agency, World Energy Outlook 2009 Energy efficiency Energy efficiency is arguably the fastest, most sustainable and cheapest way of reducing greenhouse gas emissions. 1 And there are other advantages. Not only are energy-efficient technologies already available (and have been for some time), investment payback times are short and they enable energy savings to be made without compromising economic development. Figure 3: Predicted energy savings in 2020 from new EU standards TWh Circulation pumps (heating and cooling systems) 25 TWh 30 TWh 40 TWh 135 TWh Figure 3 illustrates the amount of electricity expected to be saved in the European Union by 2020 using existing technologies, which are now being made mandatory. It is perhaps surprising that the potential for much publicized low-energy light bulbs is dwarfed by the potential for motors and drives. Drives are devices used to regulate motor-driven applications from washing machines and elevators to pulp and paper mills and mining applications. Figure 4: Electricity consumption per $1 GDP kwh Japan Germany Russia Brazil India US China Figure 4 shows the amount of energy that is consumed for each dollar of gross domestic product produced in some of the world s major economies. It shows that the wealthiest countries have the lowest ratios, demonstrating that is it possible to reduce energy consumption while raising productivity. Middle East World 1 Closing statement of the G8 summit, June 2007 ABB background information: smart grids 2

3 But the applications of energy-efficiency measures are not limited to end users of electricity. They can be implemented at every stage of the power system, including generation and transportation through the world s transmission and distribution networks. It has been estimated that 80 percent of primary energy is lost during the processes of the power system (harvesting and converting primary energy sources into electricity, transmission, distribution and end use). Widespread implementation of energy-efficiency measures could reduce these losses by 30 percent with a direct impact on carbon emissions. 2 Figure 5: Power generation capacity additions in 450 scenario GWh Coal Fossil fuels decline Oil Gas Nuclear Nuclear and renewables gain Source: International Energy Agency, World Energy Outlook 2009 Hydro Other renewables A more intelligent power system with enhanced network monitoring and control features will enable transmission and distribution grids to run more smoothly, enhancing capacity and improving reliability. Monitoring and control features will also be available to end users of electricity, providing individual consumers with detailed information on how and when electricity is used in their homes. Two-way communication devices, which include smart meters, that provide information on domestic energy consumption to both users and utilities, will allow consumers to make informed, tariff-driven choices over which appliances to use and which to switch off at any given time. This will have the effect of spreading peak demand as consumers shift their non-essential energy consumption to off-peak periods in pursuit of lower electricity bills. While peak shaving may have little impact on the power consumption of individual households (families will still run their washing machines, they will just choose to run them during off-peak periods), it will significantly reduce the overall consumption of the wider population. This will reduce the amount of reserve power capacity that needs to be kept on standby to meet peak demand, and reduce the number of times that reserve capacity needs to be ramped up and down, which can be a rather inefficient process. Reducing the levels of peak demand will also reduce the number of new power plants that need to be built. All of these advantages will lead to a reduction in CO 2 emissions. Renewable power Renewable power generation will also have a direct impact on the carbon emissions of the power system by helping to increase capacity and meet demand for electricity with negligible CO 2 emissions. This concept is now well established and power generation from renewable sources is expanding rapidly. Figure 5 illustrates the changes in generation mix envisioned by the International Energy Agency s 450 scenario, which aims to limit global warming to 2 C above preindustrial levels. The IEA predicts that global electricity generation from renewable sources will rise significantly by 2030 though a cumulative investment of $5.5 trillion, 3 which represents about half of all projected investments in electricity generation for the period. While the environmental benefit of reducing our dependence on fossil fuels is clear, the largescale integration of wind farms and solar plants into the grid will have a severe impact on the stability of electricity supplies, unless we begin to make changes. The greatest challenge stems from the erratic nature of renewable energy. With the exception of hydropower, the availability of renewable resources can quite literally change with the wind. Power generation in wind farms is characterized by periods of high productivity followed by lulls in calmer weather and the performance of solar plants wanes during cloudy weather and at night. A further challenge is the location of renewable sources. Large-scale sources are often far from the centers of demand (offshore or out in the desert), and small-scale producers are often in light-industrial or residential areas where the local distribution grid is not set up to receive as well as deliver electricity. 2 ABB sources 3 Based on 2007 levels, World Energy Outlook, 2009 ABB background information: smart grids 3

4 Compared to the highly predictable performance of more traditional generation plants, most of which have been built near to the communities they serve, renewable power seems less than perfect. But many of the technologies needed to overcome the challenge of renewables are already in use and others are under development. As more renewable generation comes online, the grid is evolving to accommodate it and provide reliable electricity supplies that will meet demand, sustainably. Reliability Implementing energy efficiency measures to reduce the environmental impact of our electricity supplies will not challenge the stability of the grid. Incorporating large volumes of renewable power, small-scale power producers and electric vehicles on the other hand, could have a dramatic effect on reliability, leading to significant economic costs. Figure 6: Annual cost of power system disturbances, US Other Industrial sector $20 bn $3 bn $57 bn Commercial sector lost in the industrial sector, where the disturbances affected fewer individual consumers, but each at a greater cost. Smart grid technologies that enable fast and effective containment and correction of disturbances in the power system will be increasingly important as the world s economies become increasingly reliant on electricity. Electric vehicles Electric vehicles have the potential to make sizeable reductions in greenhouse gas emissions from the transport sector. How much they actually make will depend on the fuels consumed to generate the electricity they use. In 2009, research for the UK Department of Transport 5 suggested that, based on the UK generation mix, carbon emissions resulting from the use of electric vehicles would be about 40 percent less than those from conventional vehicles. In China however, where power generation is more dependent on fossil fuels, the carbon abatement potential of electric vehicles would currently be only about 19 percent. 6 Figure 7: Projected sales of electric and part-electric vehicles MUSD ABB Renault 8 IEA Source: Berkley National Laboratory, US, 2005 Industrial and commercial organizations suffer huge inefficiencies if power is interrupted, even for a short time, through loss of production time and the additional energy cost of resuming normal operating conditions. Additional problems are caused by dips in power quality, voltage surges and sags that can affect the performance of electronic devices and even cause permanent damage to equipment. To avoid such problems, many industrial and commercial electricity consumers install protective equipment and back-up generating capacity, all of which costs money and results in additional CO 2 emissions every time it is used. A 2005 report 4 estimated that electric power outages and blackouts in the US cost the national economy about $80 billion a year. The bulk of the losses, $57 billion, were in the commercial sector where large numbers of consumers are affected by each interruption. $20 billion were 4 Lawrence Berkeley National Laboratory Frost & Sullivan Pike Credit Suisse In addition to reducing the number of conventional vehicles on the road, electric vehicles will enable utilities to make better use of existing power generation capacity. If, for example, 20 percent of new vehicles were electric (which may happen over the next 10 years in highly motivated localities such as southern California), 7,8 recharging them could represent up to 2 percent of total electricity demand. Theoretically, if vehicles were charged mainly at night, much of this demand could be satisfied 5 UK Department for Transport, Low carbon and electric vehicles 6 McKinsey and Company, China Charges up: The Electric Vehicle Opportunity. 7 McKinsey and Company, Electrifying cars: How Three Industries will Evolve. 8 More general predictions suggest that 10 percent of new vehicles in 2020 will be electric: Multiple sources, 2009: CS Investment Bank, Boston Consulting, Renault-Nissan, Roland Berger ABB background information: smart grids 4

5 using existing capacity, generating a new revenue stream for the utility and putting off-peak power to good use. In practice, however, it is likely that electric cars will be concentrated in particular neighborhoods and, as their numbers rise, their local impact will require additional infrastructure to be built. Solutions for daytime charging would also need to be developed. A significant advantage of incorporating large numbers of electric vehicles into the grid will be the enormous storage capacity made available in the form of the cars batteries. Most cars are driven for an hour or two a day, lying idle for the rest of the time. As more drivers turn to electric vehicles, the growing fleet could become a significant source of back-up power capacity for the grid, providing short-notice reserve power to meet demand peaks. This would relieve pressure on utilities to provide reserve generating capacity and bring financial rewards for the car owners. Charging facilities for electric vehicles are becoming more widely available, but to realize the full potential of these vehicles, a number of technology advances need to be made. The cost of car batteries must be reduced significantly and many more charging stations must be built. To achieve the full CO 2 -saving potential of electric vehicles, smart grids and smart charging solutions must be implemented simultaneously. Despite the popularity of hybrid vehicles, the infrastructure for the widespread incorporation of electric vehicles into the power system remains the least developed aspect of the smart grid. ABB background information: smart grids 5

6 What will the smart grid look like? Current power system Smarter grid The grid of the future will be an enhanced version of today s network, with more extensive monitoring and communication systems, new grid interconnections, two-way flow of power and information, and a larger portion of distributed and renewable generation. The system will be highly automated to ensure the availability of reliable, energy-efficient power supplies to industrial, commercial and residential consumers, on demand. ABB s vision for a smart grid is of a self-monitoring system, based on industry-wide standards, that provides a stable, secure and environmentally sustainable network. The system will cross national and international boundaries, enabling neighboring regions to trade energy, and it will be equipped with rapid-response monitoring and control systems that will automatically contain and correct faults to ensure that high-quality electricity is available to consumers, on demand. This vision is now being put into practice. Recent advances in computing and communications technologies are being used by utilities to access detailed information on up-to-the minute network conditions at literally thousands of points on the grid. Similar information systems will provide consumers with access to their own consumption data and electricity pricing information. These data will allow consumers to play an active role in the grid, making informed decisions on how and when they use electricity, even generating their own power and feeding surpluses back into the system. While true smart grids are still a vision for the future, the technologies and standards that will be needed have been the subject of research at ABB for some years now and many are already in use. With a broad range of power and automation technologies, ABB is taking the lead in providing an integrated solution for the development of the smart grid. The following section provides an insight into some of the ABB technologies that are turning the vision of the smart grid into reality. Network management and wide-area monitoring As the information revolution of the past 30 years has transformed the way we communicate, so is it changing the way our power supplies are controlled. The ability to gather, analyze and act on large quantities of data, quickly, reliably and cost-effectively, is enabling the evolution of smarter grids. ABB s network management and utility communication technologies make full use of these technologies and are playing a leading role in the development of smart grids. They have brought new levels of performance to the systems that monitor, control, operate and protect the world s power supplies. They ensure the reliability of the electricity systems on which our societies depend. ABB s technologies enable real-time management of transmission grids, distribution networks, power plants and energy trading markets. They can collect, transmit, store and analyze data from thousands of data points across power networks and over large geographical areas. They enable data, voice, video and protection signaling, and other types of critical information to be communicated quickly, reliably and securely. Without these functions, the large-scale integration of renewable resources, the regulation ABB background information: smart grids 6

7 of two-way distribution grids, long-distance transmission, incorporation of electric cars and charging facilities would not be possible. Wide-area monitoring capabilities raise the performance of network management systems by increasing the area over which the systems can work. The use of satellite communications enables information from neighboring grids to be accessed quickly and used in early warning systems to prevent the development of widespread faults. ABB s network management solution integrated Karnataka s transmission and distribution networks into a single system, providing energy audit and customer billing systems in a single platform. A recent example of how ABB s technologies are helping to accommodate increasingly complex demands on today s power systems can be seen in the Indian state of Karnataka. At the center of the state is Bangalore, with its fast-growing information technology and biotech industry. In 2009, ABB delivered a network management solution that integrates the state s power transmission and distribution systems, energy audit and customer billing systems into a single stateof-the-art platform. ABB s system monitors the power network of the entire state, using satellite communication to provide accurate and real-time information on power supply and revenues, it enables operators to identify and correct faults quickly. The network delivers electricity to about 16 million people and is well-positioned to keep pace with ever-growing demand in the region, while maintaining the reliability on which its businesses depend. Substations Substations are vital installations in the power grid. They include equipment to monitor, protect and control the transmission and distribution of electricity, providing efficient, reliable power supplies. As part of a smarter grid, the role of substations will be to work hand-in-hand with network management systems and other grid installations to coordinate power flows. They will continue to feed power from generating stations into the grid and provide the link between transmission and distribution systems, but their ability to communicate with different parts of the grid will be greatly enhanced. This will enable a higher degree of automation in the grid to ensure the delivery of reliable, efficient power supplies. Improved substation communication has long been an important topic at ABB. The company played a leading role in the development and implementation of the first global standard for the control and protection of substation equipment. The new standard is a protocol that enables real-time, open communication between substation devices, regardless of the manufacturer. It has significantly enhanced substation performance and enabled thousands of copper communications that were needed in a single substation to be replaced by just a handful of fiber optic cables. This system, known as IEC 61850, is one of the most significant developments in substation automation and protection technology for decades and a key enabler for the development of smart grids. Just as the Internet would not have developed without globally accepted, open standards such as HTML, so the development of smart grids depends on the establishment and widespread implementation of communications standards. In the past four years, ABB has delivered hundreds of IEC systems and thousands of products for new and retrofit installations in over 60 countries to enhance the performance, efficiency and reliability of substation operation. Among ABB s landmark installations are the world s first multivendor, IEC compliant substation and the substations that serve the world s largest operating hydropower plants: Itaipu in Brazil and the Three Gorges in China. Itaipu feeds 95 TWh of emission-free power into the grid every year, enough to power the whole of Argentina for a year, or Paraguay for 11 years, avoiding the generation of almost 50 million tons of CO 2 each year. 9 The Three Gorges dam produced more than 80 TWh electricity in That s enough power to meet the needs of almost 30 million people in China million tons. Calculation based on Itaipu s 2008 production of 94,685 GWh electricity and the global average of 510g CO 2 being generated for each KWh electricity produced. 10 According to the Chinese National Bureau of Statistics, China s total elec- ABB background information: smart grids 7

8 a typical application of FACTS, helping utilities to expand their operations, quickly and effectively, as demand grows. ABB provided substations for the world s largest operating hydro plants. The Itaipu project in Brazil, shown here, produces 95 TWh of electricity a year, equivalent to power needs of Argentina. In 2009, ABB achieved another milestone in substation technology, delivering the world s highest capacity switchgear (a large-scale circuit breaker system) for a substation in China. Rated at 1,100 kilovolts, the switch can be used to turn up to 7,600 MW of power on or off within milliseconds. This is the average power consumption of a country like Switzerland (population 7.7 million). The powerful switch is needed to help control the flow of power in an ultrahigh-voltage power link, which has been built to achieve new heights in transmission efficiency. While this will be the only transmission line in operation using such high voltages, it is leading a trend towards higher voltage, more efficient transmission links that will populate the smart grid as it develops. Another ABB FACTS solution was installed to stabilize one of India s most important grid interconnections between Raipur and Rourkela. The installation enables power to be reliably transferred from India s eastern power grid (where there is a surplus) to the west and south (where there is a shortage). The solution has also provided a substantial increase in transmission capacity and is the largest installation of its kind in the country. It is the kind of application that will be used more and more as grids develop into larger, more complex systems. The latest addition to ABB s FACTS technology group provides current and voltage stabilization functions with the addition of energy storage capacity. This new feature will be of particular importance as the portion of renewable energy in the generation mix grows. FACTS and energy storage Grid stabilization: FACTS is a generic term for a group of technologies that dramatically increase the capacity of electrical transmission lines by as much as 50 percent - while maintaining or even improving the system s stability and reliability. FACTS technologies will be an important element in the smart grid because they improve the efficiency of long-distance power transmission by removing bottlenecks, and they are used to safely integrate intermittent energy sources like wind and solar power into the grid. FACTS technologies answer a number of challenges posed by our developing power systems. In Saudi Arabia, where demand for electricity is growing rapidly, an ABB FACTS solution has boosted the capacity of a vital grid interconnector by some 30 percent. The increased transmission capacity is preventing power shortages in the Saudi capital, Riyadh, and has saved the Saudi Electric Company a huge investment outlay in a new transmission infrastructure. This is tricity consumption in 2008 was 3,450 billion kwh. Three Gorges produced 80.8 billion kwh in 2008, equal to 2.3 percent of China s total electricity consumption for the year. Chinese population in 2008 was approximately 1.3 billion. 2.3 percent of 1.3 billion is just over 29 million. An artist s impression of an SVC Light installation with energy storage. With a footprint of 50m by 60m, this station could provide 30 MW of power for about 15 minutes. Today s version of the energy storage technology can provide about 20 MW of power for tens of minutes, which can keep around 10,000 households running while faults are corrected or alternative power supplies are brought online. A scaled-up version of the current model could provide up to 50 MW power for an hour or more, with significant implications for grid stability. Such storage capacity can be used not only to smooth out the erratic productivity of wind and solar plants, but also to provide emergency power to help restart grids after a blackout. In rail networks, energy that would otherwise be lost every time the train brakes could be stored and then used to help the train with its next acceleration. ABB background information: smart grids 8

9 ABB has a long-running interest in energy storage systems and in 2003, delivered the world s largest battery storage system to support the power system in Fairbanks, Alaska. Covering an area larger than a football pitch, the BESS (battery energy storage system) can provide 40 MW of power for 6-7 minutes, or 27 MW of power for 15 minutes. ABB has delivered more than 700 FACTS installations, more than half of all those installed in the world, helping power systems to make better use of existing capacity, while maintain the safety margins that are essential for a smooth-running, reliable grid. High-voltage direct current (HVDC) Pioneered by ABB in the 1950s, high-voltage direct current transmission technology has had a truly revolutionary impact on the way that electrical energy is delivered, all over the world, and its role will increase with the evolution of the smart grid. ABB is providing an HVDC link to connect the world s most remote wind farm to the German grid. The 400 megawatt wind farm, located 130 kilometers from the coast in the North Sea, is expected to avoid the generation of 1.5 million tons of carbon dioxide per year by contributing emission-free electricity to the grid. In the reverse situation, offshore rigs, such as StatoilHydro s Troll A gas platform in the North Sea, use it to receive clean, low-cost hydroelectricity from the shore, avoiding the need for noisy, space-consuming diesel-fueled generators. Electricity trading between neighboring grids contributes to the overall reliability of each system, and allows increased use of renewables. Parts of the grid that rely on wind or solar power can be supported by other parts with more reliable sources, such as hydro or thermal generation. The ability of HVDC to transmit bulk power very efficiently over long distances, interconnect neighboring power grids (even those running at different frequencies) and integrate renewable power sources into the grid mean that HVDC will be a prominent feature of future power networks. Some of the world s biggest cities, including Los Angeles, São Paulo, Shanghai, and Delhi, already rely on HVDC to deliver huge volumes of electricity, often from thousands of kilometers away, with remarkable efficiency and minimal environmental impact. These are the exact qualities needed for the delivery of renewable power from remote sources (including offshore) to centers of demand. ABB s HVDC technology was used in the Three Gorges projects in China to deliver hydroelectricity from power plants in the west of the country to the cities of Shanghai in the east and Guangzhou in the south. These electricity supplies provide large quantities of reliable power with negligible emissions, supporting economic growth while reducing the number of thermal power plants needed to meet demand. National and regional power providers interconnect their networks and trade electricity using HVDC, while offshore wind farms can use it to feed their power into mainland grids safely, reliably and without disturbing sensitive marine environments. ABB delivered the infrastructure to connect the world s most remote wind farm, 130 km off the German coast. The wind farm is estimated to avoid the generation of 1.5 million tons of CO2 emissions each year by replacing fossil-fuelled generation. Using the 580-km NorNed HVDC link, the Netherlands can import hydropower from Norway during the day when demand is high, and export excess capacity from its thermal power stations during the night when demand is low. This enables thermal power stations to run at an optimal, constant rate, avoiding the generation of an estimated 1.7 million metric tons of carbon dioxide emissions every year. ABB also used this remarkable technology in the world s longest and most powerful HVDC installation, the Xiangjiaba-Shanghai power link currently under construction in China. This power superhighway will deliver 6,400 MW of clean, hydroelectricity over 2,000 km, enough power to meet the needs of up to 31 million people in Eastern China. ABB background information: smart grids 9

10 Electric vehicles ABB s contribution to the incorporation of electric vehicles into the grid will be to prepare the grid for the challenges these vehicles will bring and provide a variety of practical charging solutions that will meet the needs of car owners, service providers and grid operators. Residential charging units need to deliver an efficient, low-power service that will recharge a battery overnight. They must have minimal impact on the grid and provide power at a viable cost to the car owner. Such charging units are currently available but the standards that will be required for the widespread implementation of these devices are still being developed. ABB has already installed a number of basic charging stations in Scandinavia, where they are also used to pre-warm the engines of traditional combustion motor vehicles. The stations have proved their resilience to the extremes of the Scandinavian climate and are now being developed further to incorporate more sophisticated communication functions. Ultrafast charging will provide a fuel-stop equivalent for electric vehicles, able to recharge a car s battery in a matter of minutes. Combined with future battery technologies, these charging stations will be installed in highway rest areas and convenient city refueling points. The vehicle connections for these units will be based on industry standards to ensure that they will be compatible with all types of vehicle. Public charging facilities must provide more rapid services that can recharge a battery in a matter of hours, while the driver is at work, for example. These charging stations will be installed in large car parks, public buildings and business premises. Since they will be installed in public areas, the stations will need to be more robust than residential units, and incorporate user authentication and/or payment systems. An ABB residential charging unit for electric vehicles, which can also used to pre-warm the engines of traditional combustion motor vehicles. ABB background information: smart grids 10

11 ABB s ongoing contribution ABB has delivered a large number of installations to raise the performance of existing power systems. These have helped to deliver more power, including more renewable power, to more consumers, more reliably and more efficiently, by linking power generators to the grid, linking grids to each other, and raising the capacity, efficiency and stability of the grid. But the projects delivered so far are only part of the story. ABB is also working on more than 20 pilot projects across the world, looking at all aspects of the smart grid, from energy storage, through network management, metering and communication, to distribution automation and home automation systems. A low-impact development in the heart of Stockholm One of the first smart grid pilot projects ABB is working on is a collaboration with the Finnish utility, Fortum. The idea is to test the concept of a flexible, low-emission power network in the Royal Seaport area of Stockholm, a former industrial area, which is now one of Europe s largest urban regeneration projects. Developers in this part of the Swedish capital hope to produce a state-of-the-art residential and commercial district where clean technologies will thrive and deliver high-quality living space with low environmental impact. A top priority for the new development is to make the best possible use of natural resources, including renewable power. ABB and Fortum are working to provide a power network that will ensure power generated from within the district (from sources such as rooftop solar panels or micro wind turbines) can be fed into the power grid for use in local homes and businesses. The project also hopes to provide charging facilities for electric vehicles, enabling them to both recharge their batteries and deliver power back into the grid, as required. In terms of scale, the Royal Seaport project will mark a big step forward in the development of a smarter and more flexible urban grid that can integrate distributed and renewable energy sources. The new district will have 10,000 homes and 30,000 office spaces. It will incorporate an innovation center to showcase the latest technologies being tested and deployed. It will also feature an attractive waterfront, where boats will be able make use of ship-to-shore power connections similar to the one ABB installeds power connector in the port of Gothenburg. These connections mean the waterfront areas need no longer suffer the noise and fumes of onboard diesel generators. Ships will be able to plug into the onshore grid to feed their power needs with minimal impact on the local atmosphere. In addition to accommodating renewable power generation and electric vehicles, Fortum and ABB hope to establish a community of active consumers in Stockholm. This will mean equipping both residential and commercial premises with energy management technologies to enable consumers to monitor and control the way they use power. The aim would be to minimize waste and spread energy consumption across the day, avoiding periods of peak demand whenever possible. Stockholm Royal Seaport is an integral part of Stockholm s effort to combat climate change. The aim is to eliminate the use of fossil fuels within the Royal Seaport district by 2030 and from the city as a whole by Local power generation and a more flexible and responsive power grid will be instrumental in achieving these ambitious targets. ABB envisions a smart grid based on industry-wide standards supporting a stable, secure, efficient and environmentally sustainable power system. It will also accommodate customer demand response management systems that allow local producers and consumers to interact with the network operator and the energy market to reduce peak loads and increase efficiency. More accurate balancing of supply and demand In order to drive the development of particular smart grid technologies, ABB is also collaborating with specialist partners in communications and information technology. In one such project, ABB is combining its expertise in power and automation technologies with those of communications specialist T-Systems, a subsidiary of Deutsche Telekom. The aim of this partnership is to develop technologies that will provide electricity consumers and electricity producers with the information they need, in a form they can use, to change the way they interact with the electricity supply system. The skills of ABB and T-Systems complement each other well. ABB s experience in power transmission and distribution, network management and energy trading systems, and T-system s knowledge of broadband communications and ABB background information: smart grids 11

12 telecommunications billing systems, will combine to help consumers and producers of electricity to balance supply and demand more effectively. Flexible tariffs that reflect real-time demand patterns, coupled with more sophisticated appliance control functions that enable consumers to take advantage of cheaper electricity will make better use of existing resources and accommodate energy sources such as wind and solar power, which are less predictable than thermal or hydroelectric power stations. Balancing supply and demand more accurately and making better use of renewable power sources are essential if the ambitious carbonreduction targets that have been set in many countries are to be achieved. Some commentators predict that the share of power from renewable energy in Germany will be as high as 35 percent by The added complexity that this level of renewable generation will bring to electricity distribution systems should not be underestimated. Unless the fluctuating levels of power that are typical of renewable generation are carefully controlled, the impact on the grid will be severe. At best, the system will operate inefficiently. At worst the system will suffer frequent interruptions and societies will suffer the consequences. Introducing more sophisticated communications and automation systems into the power system developing a smarter grid will help to stabilize supplies, accommodating renewable power and supporting efforts to combat climate change. ABB background information: smart grids 12

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