SmartGrids: Overview of Smart Grid Technologies Application Prospects - EU initiatives. Maher Chebbo VP, Head of EMEA Utilities & Communication industries - SAP AG maher.chebbo@sap.com EU SmartGrids Council Chair of Demand and Metering Group co-chair ICT for Energy Efficiency Consultation for DG-INFSO Advisory Technical Coordination for EU project SEESGEN-ICT Athens, 24th of October 2009
Why European SmartGrids? SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 2
Why do we need SmartGrids? Answering Networks failures, Blackouts and Environment compliance Answering increased energy demand and Power shortage : Global Energy demand is predicted to increase 60% over the next 30 years Without action, the EU's energy consumption is expected to rise by 25% by 2012 Rasons for Blackout : Weather, Sudden increase of demand, Operational errors, Human error, MS-Border operability, Plant Breakdown & Accidents, Cables failure, Power Line Slides, etc SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 3
European Energy policy goals (20/20/20) for 2020 : The roadmap of ETP SmartGrids Regulation of Monopolies Innovation and Competitiveness Low Prices And Efficiency Amenity Preservation Internal Market 20/20/20 Primary Energy Sources Security of Supply Environment Climate Change Reliability and Quality Kyoto and Post-Kyoto Cross Border Support European SmartGrids 20/20/20 in 2020 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 4
Progressive active customer participation from passitve to active transactions in the marketplace to save consumer s energy and balance load Stakeholders involved Customer participation aspects European Union, Governments and Utilities Consumers acting as Power Suppliers Suppliers, Consumers, Technology & Service Providers Retailers to Consumers Consumers Pan European Energy Data Management eenergy (electronic marketplace, virtual ) Prosumer & active retailing (bi-directional trade, AMI) Automatic decision support system (Intelligent automation, benchmarks, forecasting, AMI) Better real time prices (price signals) (Connected devices, Demand Response, ICT, AMI) Visibility, transparency, customer empowerment, Devices losses, buildings losses, etc (analytical tools, AMR) SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 5
Management of Smart Grids with DER Integration Primary resources Electric Production Generation Operations Transmission TOMORROW Smart Applications that manage the Smart Distribution Grids focusing on SCADA systems improvement and interoperability, focusing technically on Energy Savings technologies Distribution Planning Retail Operations Call Center HQ/ Finance Sales/ Marketing TODAY Basic limited operations, monitoring, visibility and control available for today s distribution grid Customers SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 6
Demand Side Integration Primary resources Electric Production Generation Operations Transmission TOMORROW Demand Side and Demand Response Management enabled by friendly, end user oriented ICT solutions with embedded DSO load control and customer decision support system to save energy Distribution Planning Retailers, Aggregators, ESCOs Call Center HQ/ Finance Sales/ Marketing Regulators TODAY Limited awareness, ICT tools and services leading to easy, automatic, natural and freely decided customer participation to save energy Limited Customer empowerement Customers SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 7
How to deploy European SmartGrids? SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 8
What are the Elements for Success? Market frameworks may not facilitate innovative solutions Attention to intellectual property Export opportunities Innovation needs wide deployment But supply chains have limited capacity Manufacturing, raw material, services and skills Commercial Supply Chain There are real technical challenges They are solved or solvable by research But technology alone is not enough Technology SmartGrids Making Smart Connections Enabling Smart Choices Demonstration Regulation Standards Demonstration/pilot projects are key Operational proving is a critical step Ronnie Belmans - Keynote Address CRIS 2009 - Linköping, Beware the Valley of Death Sweden A Model for SmartGrids Regulatory frameworks may have unintended barriers to innovation New thinking takes time to implement Standards and protocols underpin open systems A Plug & Play approach is needed But there are no quick changes here 9 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 9
Where SmartGrids investments are required for each stakeholder European SmartGrids 20/20/20 in 2020 Virtual Power Plants Management Emissions Management, Predictive Maintenance Adaptive generation, Demand Side Management, Energy Storage, Renewable Energies, CCS, Trading Interoperable SCADA systems and VPP Monitoring Power flow management (FACTS, WAMS, WAPS) Integration of large DG, Self healing Networks Capacity Planning, Energy Data Management, AMI Demand Side Management, Synamic pricing, AMI Competitive Customers multi-channel management Bundling and variety of Products and Services Customer segmentation and Energy Efficiency services Smart Homes (Smart meters, smart Boxes, smart services) Home Energy Management Systems Customers active participation (Demand Response) Customers active participation in the Energy Marketplace SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 10
European SmartGrids 7 DSO initiative (European Electricity Grid Initiative NEW) 12 Demonstration projects involving 1.5 Mio customers, 50 000 KM and 20 000 sub-stations 1.2 b estimated funding required for 2010-2015 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 11
European SmartGrids 7 TSO initiative (European Electricity Grid Initiative NEW) SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 12
SmartGrids 2 b estimate for RD&D of 7DSO + 7TSO projects from 2010 to 2018 SO Research Demonstration Total (k ) (k ) (k ) TSO/DSO 90 140 230 TSO 250 260 510 DSO 240 960 1200 Total 580 1360 1940 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 13
European SmartGrids Demand & Metering WG 3 outcome Infrastructure Layer SmartGrids Business Case #5: Active Distribution Networks What structural changes to the physical infrastructure are required? How can asset value be enhanced through increased monitoring & control? SmartGrids Business Case #6: Retail side Energy Efficiency To what extent will beyond the meter applications be linked to the physical grid? Communications Layer What requirements drive the digitial grid? How to deal with new energy information? How to ensure data integrity & seciurity? How will Smart Home devices become linked to the digital ICT layer? Applications Layer Overall system and value Chain How to integrate EV? How to manage & dispatch DG? How to institutionalize DR? How to optimize grid operation? How will the interfaces between Transmission, Distribution be impacted What role will new market players have? What regulatory schemes are required? How can customer s devices be utilized to achieve important energy efficiency? What are the Customer Centric technologies to be deployed? What will Energy Capital Management mean? Evolution from Energy to Information Management? SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 14
SmartGrids 7 b of RD estimate for Demand & Metering (Active Distribution Networks & Demand) Cost 500 M for Active Distribution Networks plus 200 M for Demand Side Management for each 1% of SmartGrids penetration b b SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 15
SmartGrids benefits SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 16
SmartGrids benefits per stakeholder, per metric : According to the 7 DSO initiative 12 Demonstration projects involving 1.5 Mio customers, 50 000 KM and 20 000 sub-stations 1.2 b estimated funding required for 2010-2015 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 17
Peak demand reduction Technology Peak Demand Reduction* Time of use Pricing Information 8% Dynamic Pricing Signals 13% Smart Thermostat 27% HEMS like device 43% * The Brattle Group The Power of 5 Percent, The Electricity Journal, October, 2007 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 18
Demand Side Management Benefits Projects Topic Benefits Finland Smart metering 7% energy efficiency Norway (SINTEF) Demand Response 24.5% energy efficiency CRE (French regulator) Smart metering Reduction of non technical losses by 50% Residential energy efficiency by up to 5% DONG Energy Demand Side Management CO2 reduction by up to 5% (CRE) 25%-50% reduction in Non Delivered Energy 35% reduction in fault search time Up to 90% reduction in Network Reinforcement costs SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 19
Projects, best practices, benefits, key figures Source Topic Benefits Benefits equivalent to Demand Response Management report (CG-Vaasa ett- Enerdata) Demand Response Management 50bn in avoided investment related to peak generation capacity and T&D 25bn annual savings in electricity bills for customers ~150 Medium sized gas power plants ~annual residential electricity consumption of Finland s 202 TWh of annual energy savings ~Total residential consumption in Spain and Germany 100 million tons of CO2 emission reductions annually 50% of the 2020 target Smart2020 report (The Climate Group GeSI) Overall ICT impact on Energy Efficiency Up to a 15% reduction of BAU emissions in 2020 (7.8 GtCO2e) 644 billion savings 2.03 GtCO2e by 2020 ~14% of Total Power sector emissions in 2020 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 20
The ideal SmartGrids world SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 21
The ideal SmartGrids world Internet like Service Ecosystem 2020+ Weather Prediction: Weather Prediction: Sunny, Windy, 23ºC Sunny, Windy, 23ºC Wind leads to more Wind leads to more electricity generation electricity generation Energy production covers Energy production covers (estimated) needs (estimated) needs Lower electricity Lower electricity production production M. SANCHEZ, 2006, Quelle: European Technology Platform SmartGrids Green Electricity Green Electricity available available Sun leads to increased Sun leads to increased electricity generation electricity generation Heat generators are Heat generators are not needed not needed Electricity Car can get Electricity Car can get cheaper recharge cheaper recharge SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 22
DER & Virtual Power Plants Settlement run Determine the load shape of the settlement area. Sum load curves of all wind sites Input parameters: 1. Turbines energy data Output parameter: Cumulated energy data per wind site Σ Wind site 1 Σ Wind site 2 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 23
Mobile Metering : Energy Resources Optimization due to Electrical Vehicles and Smart Metering Mobile meters (opportunistic connections) Electricity Metering Cloud Metering Gas Metering Water Metering Request info / Subscribe to Services / push partial functionality (e.g. filter) IP (mostly) Communication Layer over (3G / Internet / Wimax etc...) Asset mgmt Analytics Prediction Active Control Event based (opportunistic) info SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 24
Retailers Smart Office : Customer Centric Management 1. Trader requests demand reduction 2. Business rules select customers and colour changes 3. Schedule tariff change for midnight 4. Inform customer via message to IHU 5. Inform customer via SMS message to mobile SAP September 2009 / ENERTECH 2009 09 - Maher Chebbo Athens October 24th 2009 Smart Office Page 25 No. 25
Use of Display tools for empowering Consumers SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 26
Europe runs Smarter Energy by 2020 The China Energy Roadmap - Energy for Everyone European Energy Roadmap - Smart Energy US Energy Roadmap : Independent Energy SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 27
To learn more SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 28
To know more, see following SmartGrids publications April 2006: Vision and strategy published February 2007: Strategic Research Agenda October 2008: Strategic Deployment Document (SDD without Costs/benefits) Q4 2009: SDD with costs/benefits (date to be confirmed) SDD SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 29
To know more, see following article published in «Metering International» in 2008 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 30
To know more, see following New European Commission Publication «ICT for a Low Carbon Economy Smart Electricity Distribution Networks SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 31
To know more, see following article published in «Metering International» in 2008 SAP 2009 / ENERTECH 09 - Maher Chebbo Athens October 24th 2009 Page 32