ICT and Smart Cities. Klaus Kisters Dr. Volker Bühner. GEODE Autumn seminar 23. November 2012 Barcelona

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1 ICT and Smart Cities Klaus Kisters Dr. Volker Bühner GEODE Autumn seminar 23. November 2012 Barcelona

2 Agenda Smart Cities Smart Grids as enablers for smart cities Smart Markets / market roles Example: Web2Energy Conclusion KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 2

3 KISTERS Group Development of the company KISTERS Group Business volume EUS GmbH Germany DACHS GmbH Germany KISTERS Schweiz GmbH Switzerland RHEA S.A.S. France KISTERS France S.A.S. France 2011 Number of core employees employees KISTERS AG, Head office germany Number of subsidiaries 10 Business volume 55 Mio. EUR Customers in the energy market KISTERS Ibérica S.L. Spain KISTERS North America, Inc. USA iquest (NZ) Ltd. New Zealand KISTERS Pty Ltd. Australia KISTERS Shanghai Co., Ltd., China Wasserwirtschaft A strong customer base Energiemarkt Markets Software products Asia KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 3

4 Agenda Smart Cities Smart Grids as enablers for smart cities Smart Markets / market roles Example: Web2Energy Conclusions KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 4

5 Smart Cities: The non-technical view Source: smart-cities.eu KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 5

6 Smart Cities: Criteria and ranking European ranking according to the Smart City wheel (500 recorded): 1. Copenhagen 2. Stockholm 3. Amsterdam 4. Vienna 5. Paris 6. Berlin 7. London 8. Barcelona 9. Munich 10.Frankfurt Source: KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 6

7 Smart Cities: Examples & Drivers Example Amsterdam: Smart Meter Renewables, CHP Street lamps Ship to Grid Swimming baths Public buildings Drivers: Internet / ICT Building automation Renewable energies / E-Mobility Source: amsterdamsmartcity.com KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 7

8 Examples: Light by demand and ship to grid Source: amsterdamsmartcity.com KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 8

9 Agenda Smart Cities Smart Grids as enablers for smart cities Smart Markets / market roles Example: Web2Energy Conclusions KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 9

10 Evolution from Smart Metering to Smart Grids Manual meter reading Monthly kwh reads Automatic Meter Reading (AMR) One-way or two-way Monthly kwh reads Interval data Basic theft detection Outage/Restoration Detection Advanced Metering Infrastructure (AMI) On-demand reads Programmable load intervals Bi-directional and net metering TOU, RTP, CPP pricing options Demand response Gas & Water metering Smart Meters Solid-state platform Integrated communications Integrated disconnect switch - Remote disconnect - Remote connect Power quality data - Voltage readings - Current readings - Power Factor - Frequency - Detailed power outage data Advanced theft detection Remotely programmable Remotely upgradeable Internal expansion port - Future functionality Smart Grid Energy Management Services - Residential, Commercial Home Area Network gateway - PLC - RF Web-based applications - Demand Response - Prepayment - Load Control - Revenue Protection - Web Move in/out Distribution - Load profiling/ engineering - Phase balancing - Transformer optimisation - Energy forecasting - Outage detection and GIS - Automated restoration - Work Force Management - Automated Field Dispatch - Asset Management KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 10

11 Definitions of Smart Grids A Smart Grid 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. Source: European Technology Platform SmartGrids A Smart Grid is self-healing, enables active participation of consumers, operate resiliently against attack and natural disasters, accommodate all generation and storage options, enable introduction of new products, services and markets, optimize asset utilization and operate efficiently, provide power quality for the digital economy. Source: US Department of Energy Source: smartgrid.ieee.org KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 11

12 Smart Grids: Different scopes Source: smartgrid.ieee.org KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 12

13 Smart Grids vs. conventional grid Smart Grids: need information, sensors, actors, IT, intelligence are decentralized (e.g. generators, substations, control) are centralized (balancing control, SCADA) have a complete different quantity structure: Nation level Conventional Smart Grid Power plants < > Automated substations > Demand side management Some industrial > households Control levels < 10 (only TSO) > 500 (TSO & DSO) maximize performance on the edge are unstable by design? are like a Fly-by-wire aircraft are deterministic unpredictability? are managed chaos? KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 13

14 Smart Grids: Some ICT conclusions From the ICT perspective: Huge number of elements Combined (centralized, decentralized, hierarchical) controlling strategies Balancing is crucial: Need for good and robust bottom-up forecast and optimization algorithms ICT becomes the backbone of the power system Power = IT = Power The definition of (n-1) have to be extended to ICT "In order for the Smart Grid to be successful, there needs to be a set of wellestablished standards in place that all industries and organizations involved can utilize. (Source: Dr. W. Charlton Adams, Jr., Past President, IEEE Standards Association) KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 14

15 Smart Grids: Advantages Advanced Metering Infrastructure (AMI) Customer Side Systems (CS) Demand Response (DR) Distribution Management System/Distribution Automation (DMS) Transmission Enhancement Applications (TA) Asset/System Optimization (AO) Distributed Energy Resources (DER) Information and Communications Integration (ICT) Source: US Department of Energy, DOE/NETL-2010/1413 Source: : smartgrid.ieee.org KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 15

16 Agenda Smart Cities Smart Grids as enablers for smart cities Smart Markets / market roles Example: Web2Energy Conclusions KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 16

17 Smart Grids & Smart Markets Smart Grids: Higher efficiency of grid operation and planning Automated substations, voltage control, state estimation, forecast of load flow Providing the infrastructure for Smart Markets Smart Markets: Flexibility provided by prosumers Demand Side Management (DSM) / Demand Side Response (DSR) Offers local ancillary services for secure and reliable Smart Grids like reserve power, voltage and reactive power KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 17

18 Smart Grid Architecture Model (SGAM) Source: VDE-Positionspapier Energieinformationsnetze und systeme, October 2012 KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 18

19 Smart Grid Conceptual Model: market roles Source: Report to NIST on the Smart Grid Interoperability Standards Roadmap, EPRI 2009 KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 19

20 Smart Grid Conceptual Model: ESCo ESCo Pooling of Assets, tasks: Market access Operation / supervision Billing / ESCo IT: Portfoliomanagement Scheduling Balancing group management Control system for sales Billing Source: Report to NIST on the Smart Grid Interoperability Standards Roadmap, EPRI 2009 KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 20

21 Agenda Smart Cities Smart Grids as enablers for smart cities Smart Markets / market roles Example: Web2Energy Conclusions KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 21

22 Smart Grids: EU-Project Web2Energy Source: web2energy.com KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 22

23 Business cases: Figures from Web2Energy Business case Role Effect Potential (EUR) Comment Balancing group deviation Sales Minimizing costs Actual real values needed Reserve power (pos. minute reserve) Sales Additional refunds prequalification needed Reserve power (neg. minute reserve) Sales Additional refunds prequalification needed Balancing group optimization / economical load management Sales Minimizing costs Basic optimization function RES integration EU Political goal Less needed emission allowances (EUA) Intraday market Sales Minimizing costs Additional to spot Balancing of reactive power DNO Minimizing costs typical 8 EUR/Mvarh Voltage control DNO Avoiding grid costs Refunds directly passed to Peak load optimization DNO Avoiding grid costs grid customers Based on 10 MW Hub, source: web2energy.com Only economical when combing several business cases Only a snapshot / moving target: market prices varies continuously (over time and between each other) Heat storages are essential for benefits Flexible IT-Tools (Forecast, Optimization) are needed! KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 23

24 Agenda Smart Cities Smart Grids as enablers for smart cities Smart Markets / market roles Example: Web2Energy Conclusions KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 24

25 Conclusions ICT is crucial for the success of Smart Grids & Smart Cities Power system interacts with other areas like Transport Make information out of data New approaches are needed due to the amount of data A high degree of automation is needed: Robust algorithms New roles like ESCo need new tools like control systems for sales, combining SCADA and EDM International standards for protocols, communications and interfaces are essential ( plug and play ) KISTERS AG ICT and Smart Cities, 23/11/2012, Barcelona 25

26 Casa Batlló, 1877 Antoni Gaudi Photo Wikipedia KISTERS AG Charlottenburger Allee 5 Tel info@kisters.de Aachen, Germany Fax

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