Smart Grid, Long term planning for a sustainable energy system, from source to socket

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Håkan Johansson ABB Global Smart Grid ISI Integrator Partner Seminar Västerås June 13 Smart Grid, Long term planning for a sustainable energy system, from source to socket

WW expected development Background to Smart Grid & EE drivers June 18, 2012 Slide 2 Source: BP Energy Outlook 2030 (2011)

Smart Grid, a puzzle based on: an evolution challenging the entire power system (OT) Connecting large scale renewables Charging infrastructure E-mobility Increased transfer capacity Improved control of the distribution system Active Consumer Micro gen Increased need of balancing power Improved control and security of the network Improved power quality Business Models Standards Energy Efficiency

Smart Grid IT Solution Map Physical Asset & Work Mgmt. Mobile Workforce Mgmt. Customer Mgmt. Asset Mgmt. -Supply Chain -Work Mgmt. -Operations Mgmt. -Safety & Compliance Forecasting & Planning Scheduling & Dispatch Mobile Work Execution Customer Information Billing Management Call Center Management Network Management Systems SCADA: Supervisory Control & Data Acquisition Generation Coordination & Control -Security Control & Assessment -System Monitoring -Automated Generation Control -Switching Control -Switching Orders -Real Time Market Communications -Transmission Coordination -Reliability Control -Control Area Function -Reliability Management -Volt/VAR Optimization Energy Commercial Operations Load & Rev Forecasting -Unit Optimization & Bidding Demand Response -Physical Scheduling Trading & Risk Mgmt -Market Comms & Settlement Smart Grid Operations Energy Planning & Analytics Forecasting & Analysis -Market Data Intelligence Market Price Formation -Advisory Energy Consulting -Portfolio Analysis and Planning

Applications in the power network landscape Classic SA and SCADA Infrastructure Power Plants Smart Grid System Functions: Disribution Automation, Substation Automation, SCADA and DMS June 18, 2012 Slide 5

Energy efficiency the biggest opportunity to potential emission decreases The Worlds energy related CO 2 -savings according to the 450 policy scenario relative reference scenario Source: IEA, World Energy Outlook 40 CO 2 emissions (Gigaton) Present trend 57% Energyefficiency 30 450 policy scenario 20% 10% 10% *Co 2 storage Renewable energy sources Bio fuels (3%) Nuclear CCS* 20 2000 2007 2020 2030

Efficient generation, transport and better utilization of electricity Primary energy Transport Generation T&D Industry Commercial Residential Available energy Improved well efficiency Improved pipeline flows More efficient fuel combustion Lower line losses, higher substation efficiency Improved productivity 80 % losses 30 % saving Building management Up to 80 percent losses along the energy value chain Some losses inherent to the generation of electricity Network losses in EU are an estimated 50 TWh, the annual consumption of 13 million households* Energy efficiency along the value chain can reduce losses by 30 percent June 18, 2012 Slide 7 * Source: European Commission

Today's vs. future electrical power systems. Aspects & challenges to be considered for renewables June 18, 2012 Slide 8 A new way of looking into the future network. For a long-term sustainable energy supply, renewable power offers an attractive alternative. Globally, investments in renewable energy sources is growing, which reduces costs by growing volumes and improved technologies. Renewables are environmentally clean, and its energy (e.g. wind and solar) is transmitted free of charge But exploiting renewable power is not without challenges How to maintain stability? Production some times far away from consumption Large in feed at maximum generation Intermittent production Storage High power in feed have to be supported by existing strong transmission and distribution systems

Integration of renewable energy sources Availability of emission free balance power Consumption Production Source: SvK Wind and Solar requires more balance power

DynaPeaQ ( ABB SVC Light with energy storage ) Handles intermittent energy production issues such as voltage control, grid stability during and after faults, as well as frequency regulation. Used during peak load situations and as emergency reserve during power outages. Energy Storage as alternative to investment in increased grid distribution capacity Current Project Two wind farms connected to 11 kv distribution system. Rated 200 kw/1 h, 600 kw/10 min June 18, 2012 Slide 10

HVDC Grids Regional to continental grids with HVDC technology DC Grids vs DC single links or AC Only relevant offshore solution Loss reduction for long transmission lines Increased power capacity vs. AC Less visual impact Offshore wind Hydro Why now: Offshore wind, remote solar, grid constraints HVDC Light systems and components mature Challenges: DC Breakers & DC/DC Converters Regulatory framework Solar Slide 11 PowDoc id

This vision is now a shared vision MoU European Energy Ministers Round the North Sea ABB HVDC Slide ABB 12Group June 10MP1795 18, 2012 Slide 12

Smart Grid challenges Improve efficiency along the whole process Integration of renewables Demand response Reliability and efficiency Integration of electric vehicles June 18, 2012 Slide 13

System Products in Power Applications Smart Grids Level Network Product System Size typ. # IO DMS600, SYS600 100 000 SYS600C 10 000 Power Transmission Power Distribution DMS SCADA Utilities / Industries / Power Plants Feeder Automation Infrastructure DMS DMS SCADA Bulk Renewable Energy SCADA Smart Grids DER SYS600 20 000 FDIR Station SYS600C 10 000 RTU560 Rack 5 000 Substation Automation Gateway Classic RTU Substation Automation and Gateway for electrical part voltage optimization Demand response Bay / Feeder RTU560 DIN 750 Substation Automation Gateway RTU211 250 Capacitor banks, RMUs, pole-top RTU RMUs Controller for electrical part June 18, 2012 Slide 14 Legend: Function

Smart Grid Integration of renewables Availability of sufficient emission free balance power and sufficient grid capacity efficient long distance transmission remote monitoring and control of wind farms remote monitoring and control of solar farms increasing grid capacity and stability balance load to supply demand response remote grid operation with distributed generation balance load to supply demand response balance load to supply spinning reserve energy storage management of green house gases emission trading emission monitoring and control June 18, 2012 Slide 15

Smart Grid Reliability and efficiency Increasing both grid capacity and power quality. Peak-load shaving underground power cables increasing grid capacity and reduced transmission losses grid operation with improved: cyber security customer outage information efficient outage management based on meter information reduced peak-load house automation grid operation with distributed generation micro grids reduced peak-load process automation energy storage stationary & mobile emergency power peak power efficient outage management local monitoring and control zone concept June 18, 2012 Slide 16

Smart Grid Integration of electric vehicles Sufficient grid capacity and infrastructure for charging and billing plug-in vehicles integration charging billing increasing grid capacity increased stability by energy storage stationary plug-in vehicles load management demand response real time pricing June 18, 2012 Slide 17

Smart Grid Demand response Business model and customer interaction demand response home automation business model real time pricing tariffs demand response plug-in vehicles charging energy storage demand response process automation demand response energy storage demand response distributed generation June 18, 2012 Slide 18

Products and systems for demand response The active home in a smart grid Homeautomation Visualization External System Demand Responsesystem Demand Response Communication Server Router White Gods Energy Services Interface Metering for Demand Response and Visualization Solar Systems Battery System EV Charging

Active customer The active consumer Energy consumption controlled by price signals Energy Services Interface

Two complementary ABB Smart Grid R&D sites Stockholm Royal Seaport A full scope ABB Urban Smart Grid for a sustainable city and harbor environment Focus on active consumers (residential and harbor) and peak load reduction Smart Grid Gotland A full scope ABB Rural Smart Grid with possibility to study island operation. With 30% intermittent renewable production it represents the challenge many regions and countries will face in the future. With both these sites ABB can demonstrate capability to solve the issues related to both an urban and rural grid environment. High level of international interest already shown June 18, 2012 Slide 21

Smart Grid Gotland Large scale windpower E-mobility System Control Smart substations Active customers Large scale windpower Energy storage Grid automation Develop and test Smart Grid solutions to realize: - Large scale integration of wind - Active consumers participation - Reliable and secure grid operation - Smart Grid System Control - Grid Automation - Smart Substations - Energy Storage - Power exchange with mainland by HVDC interconnection - and more ABB Month DD, YYYY Slide 22

Smart Grid Gotland June 18, 2012 Slide 23

Stockholm Royal Seaport A world class sustainable city, with a Smart Grid as the enabler Objectives Year 2030 fossil free Year 2020 CO2-emissions below 1,5 ton per person Adapted to future climate changes Focus areas Effective energy end-usage Environmental effective transports Local re-cycling Life style

Quote from Time Full system- and customer perspective coverage An open national arena for innovation and research around smart grids for urban areas. Stockholm Royal Institute of Technology, a hub for research Small and medium sized companies The energy industry June 18, 2012 Slide 25

Smart Grid Roadmap Smart Grid evolution Mature phase (7-15 years) Residential/Community Energy storage Active houses Demand Response Integration electric vehicles Emerging phase (3-7 years) Distribution Automation Initial phase (1-3 years) AMI integration with operational system Pilots for energy storage, active houses, electric vehicles, demand response, distribution automation, AMI integration Smart Meters for billing Shore to ship power Integration large scale wind/solar farms Smart Grid June 18, 2012 Slide 26 Building and house control SVC Light with Energy Storage Network Management Substation Automation with IEC61850 (FACTS) including SVC and STATCOM HVDC Light system Environmental and energy efficient equipments Today s business Time

Conclusions Smart Grid is the evaluation of today's systems and the enabler for a more sustainable energy system with a more consumer driven electricity market which includes: integration of renewable energy sources, efficient energy consumption, AMI etc. Both transmission and distribution both automation/it and power devices both technology, business models and regulatory/market frameworks Smart Grid is still a learning process. An important arena to develop and demonstrate solutions for the future power system together with all stake holders including authorities and end users. Implementation started! Most of the components and systems needed exists today but new standards must be developed Smart Grid creates new jobs and attract new competences* Everyone has to reconsider the individual energy consumption behavior * WW 3.5 mill. 2010 in renewables alone, acc. to Renewable Energy Policy Network