Dick Kronman, ABB Oy, 21.3.2012 Smart Grids From Vision to Reality
Introducing ABB
A global leader in power and automation technologies Leading market positions in main businesses 135,000 employees in about 100 countries $38 billion in revenue (2011) Formed in 1988 merger of Swiss and Swedish engineering companies Predecessors founded in 1883 and 1891 Publicly owned company with head office in Switzerland ABB Group April 4, 2012 Slide 3
Well-balanced business and geographic portfolio Capturing growth opportunities, wherever they arise Orders by division % of total orders 2011 (non-consolidated) Orders by region % of total orders 2011 Share of employees 2011 Process automation Low voltage products 12% 20% Discrete automation and motion 22% 25% 21% Power products Power systems Americas Middle East and Africa 23% Asia 9% 30% Europe 38% Emerging markets Mature markets 47% 53%
Leading power system s biggest-ever transformation Smarter, greener grid for more efficiency and reliability Merging power and automation technologies makes electricity network more reliable, flexible, secure and efficient. Smart grid benefits include: Lower power consumption Greater use of renewable energy ABB s broad offering in both power and automation technologies positions it uniquely to support this evolution Transformation of grid to take place over several decades ABB Group April 4, 2012 Slide 5
Transformation of the electricity supply
Worldwide drivers for a different type of electricity supply Growth Population Economy in particular in emerging countries Sustainability Pollution locally Climate change globally Limitation of resources Acceptance: difficulties in building infrastructure Substitution: importance of electricity is still growing, outpacing all other types of energy (IEA) Development of electricity supply and application is the key to more sustainability.
Today s energy challenges Cut link between growth, energy use and emissions Meeting these challenges requires the world to: Reduce the correlation between economic growth and energy use Reduce the correlation between energy use and emissions Energy efficiency Renewable sources of energy ABB Group April 4, 2012 Slide 8
The case for energy efficiency The main source of potential emissions reductions World energy-related CO 2 savings potential by policy measure under 450 Policy Scenario relative to Current Policies Scenario Source: IEA, World Energy Outlook 2010 CO 2 emissions (Gt) 40 35 30 Current trend 2020 2035 Efficiency 71% 48% Renewables 18% 21% Biofuels 1% 3% Nuclear 7% 8% CCS* 2% 19% 25 450 Policy Scenario 20 2008 2020 2035 *Carbon capture and storage ABB Group April 4, 2012 Slide 9
European SmartGrids Technology Platform
Evolution of grid design From traditional to future grids Centralized power generation traditional grids One-directional power flow Generation follows load Operation based on historical experience Limited grid accessibility for new producers Centralized and distributed power generation future grids Intermittent renewable power generation Consumers become also producers Multi-directional power flow Load adapted to production Operation based more on real-time data
A new generation mix Fundamental changes Remote generation in big plants Wind power, in particular offshore Hydro power the Alps, Scandinavia Distributed generation in small units Photovoltaic Combined heat and power generation Volatile generation Wind power Solar power Consequences all over the system of power generation, transmission, distribution and consumption. In the end this will require a new system design.
Managing the challenge
European Electricity Grid Initiative Source: Entso-e, Edso for SG 2010 EEGI Focus Areas
European Drivers of Grid Development Regional Differences in Political Targets Germany UK Spain Common to all countries H Cost regulation A Decentral power generation B Smart storage Common to all countries in case of economic breakthrough Common to all countries G Electricity demand C Smart meter Nordic Italy France UK Nordic Italy UK France F Power quality regulation E e-vehicles D Smart consumption Common to all countries Common to all countries 8 / 19
Power sources example Germany From hundreds to millions
Integration of renewables also brings many challenges Example - balancing demand and supply in real-time MW Wind production Unpredictable / intermittent Need for balancing reserves Legislation / incentives for renewables Negative tariffs /MWh 100 The effect of heavy wind power feed-in on tariffs Sour ce : Statn ett 50 0-50 -100-150 -200-250 Base: -35,57 Peak 9,47 Max(18) 42,59 Min (7) -199,99 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Source: EnBW, 2010 hour
Demand response One important driver for smart cities Smart Grid Smart Home new interconnection in Smart Grids building automation gateway visualization, actors electronic meter information and communication technologies (ICT) power technologies building automation
Renewable energy from volatile sources Consequences in energy consumption Price spread between system compliant and non-compliant consumption will increase Storage within applications can be utilized But Heating and cooling Electric vehicles Consumers will not be willing to loose control Consumers will not accept loss of comfort Automation
Distributed generation Consequences in distribution networks U U Bigger variety of working points caused by distributed generation Voltage control becomes more and more difficult in rural grids New protection schemes requires Communications access to generation units required consumption only with distributed generation l Distribution networks will need more remote supervision and control.
Smart Grid and Power Distribution Penetration of automation deeper in the grid Traditional Automation Areas Distribution Control Centers Network management SCADA/DMS Outage Management Workforce management Primary Substation Automation Integrated Protection, Control and Monitoring New Automation Areas Secondary Distribution - MV Network Fault Passage Indication Monitoring of Voltages and Currents Remote Control of switches Selective Protection with breakers along feeders Secondary Distribution - LV Network Intelligent breakers for protection and control of the LV grid Smart meters with fault indication capabilities Asset Management On-line Condition Monitoring
Zone Concept for MV networks Reducing risks and consequences of faults Zones based on consumption criticality and disturbance vulnerability Substation zones and tapped line zones
When Grids Get Smart Communication Gains Importance
Virtual Power Plants - VPP Applications: Peak reductions Offset intermittent generation Improve forecasting Spinning reserve
Smart Cities
Urbanization is a global megatrend and challenge The world s fastest growing cities The top 600 cities* Additional fast growing cities Urban population will increase from 50% to 70% by 2050 globally 2.9 billion people will move to cities in the next 40 years Over 90% of urban growth will take place in emerging countries In 2025 the 600 biggest cities will contribute 60% of global GDP Already today cities consume over 75% of natural resources ABB Group Month DD, Year Slide 27 *The top 600 cities by contribution to global GDP growth from 2007 to 2025 (McKinsey 2011) Source: McKinsey 2011, UNEP 2009
Smart Cities show attractive growth rates of 18% Annual Smart City Investment by Industry Segment Million US $ $16 000 $12 000 $8 000 $4 000 20.1% 17.5% 26.3% Compound Annual Growth Rate Smart Government Smart Building Smart Transport 12.6% $- 2010 2012 2014 2016 2018 2020 Smart Utilities 100 billion investment in core technologies* from 2010 to 2020 Highest investments in North America, Europe and Asia Pacific Almost 40% of total investments are in Utilities ABB Group Month DD, Year Slide 28 *Core technologies: Sensors, smart meters, fiber networks, software, other hardware and software that provide basis for smart city Source: Pike Research 2011
ABB Smart City Projects
Kalasatama Smart Grid Finland Building a smart city in the heart of Helsinki Customer Helsingin Energia Key objectives Develop a model area for a smart power grid in the new Kalasatama district Help to lower consumption and emissions with implementation of state-of-the-art energy, information and automation technology Helsingin Energia, one of the largest energy companies in Finland, supplies electric energy to about 400,000 customers in Finland and covers more than 90% of heat demand of the capital city Provide 10,000 jobs and homes for about 18,000 residents in Helsinki s area by year 2030 ABB s response smart grid scope Reliability of supply through Grid Automation Smart Buildings Demand Response Management Integration of renewable energy Integration of electric vehicles Energy storage
Stockholm Royal Seaport project - Sweden An integrated approach for metropolitan areas Customers Fortum Stockholm Municipality Key objectives Develop a world class sustainable city district Reduce CO2 emissions to a level below 1.5 tonnes per inhabitant by 2020 Become fossil fuel free by 2030 Adapt to climate change Focus areas Efficient energy use Environmentally efficient transports Local ecocycles Environmental life styles Regulatory framework
Stockholm Royal Seaport project Sweden and a Smart Grid for reaching sustainability targets 7 1 Active homes with demand response 6 2 Integration of local energy production 6 6 2 3 Use of electric vehicles and smart charging 4 3 4 Energy storage for customers and grid 5 Smart and electrified port 4 1 6 Smart grid infrastructure 2 7 Smart grid lab Innovation Center 5 ABB Group April 4, 2012 Slide 32
ABB Month DD, YYYY Slide 33 ABB Smart Grids Projects
Espoo, Mäkkylä Adjutantti - a new consept of sustainable living Own Solar electricity production Electric vehicle charging Apartments for sustainable living Measuring and visualization of water consumption Measuring and visualization of energy consumption Possibility of consumption decrease Room-specific heating control and decrease At home / away controls
Hailuoto Island Mode Operation of Distribution Grid Purpose Demonstrate a generic concept for automated dynamic island mode operation. The producers and consumers should have access to healthy parts of the grid during disturbances and/or black-outs Key Technologies Feeder Automation, protection and control for distributed generation
Kirkkonummi, Masala Cutting outages by 50% in Fortum grid area Reducing the number of outages and recovery time Improved security of supply to customers A highly automated distribution grid is an important step towards selfhealing networks
Example: FDIR pilot cutting outages by 50% Fortum Grid Area in Kirkkonummi, Finland FDIR - integrating Substation Automation and Grid Automation SCADA/DMS M2M gateway Control Center COM600 RTU560 3G/GPRS REF615 Grid Topology with Protection and Control Zones Recloser Disconnector station REF615 Substation A Recloser Disconnector Disconnector station Disconnector
ABB Month DD, YYYY Slide 38 ABB Finland
ABB Finland A Leading Technology Supplier Smart Grids Energy Efficiency Renewables Distribution Automation, products and systems making the power distribution smart Generators and Converters generating electricity from wind PV Inverters connecting solar panels to the grid Motors top class energy efficiency Home Automation making our living smart and sustainable November 08, 2011 Slide 39