Ludwig Karg, B.A.U.M. Consult München / Berlin SMART GRID MODEL PROJECTS IN GERMANY: LESSONS LEARNED AND FUTURE DEVELOPMENT www.baumgroup.de
B.A.U.M. Consult: Facilitator for Smart Cities Action Field Research Projects Consulting for national and local authorities Consulting for enterprises Services/Projects Smart Grids, electric mobility, renewable energies (consulting, communication, project management) Implementing climate protection concepts, creating master plans for city development, facilitating regional and city development processes Implementing energy efficiency programs, supporting certification processes, technology networking Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 2
Smart City: Identifying Areas of Activity Residential Buildings Enterprises and Public Buildings Mobility Energy Energy Efficiency Renewable Energies Decentral Energy Supply Smart Energy Urban Development Urban Planning Water Resource management Activation Process Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 3
Decisions have been made! Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 4
The Future of Energy Supply Nuclear Water Natural Gas Coal Geothermal Solar Wind Biomass triangle of hope volatile & decentral Oil Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 5
Paradigm Shift Consumption-driven Generation plus Generation-driven Consumption Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 6 6
(Re)Construction of the Grid: Copper and Silicium Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 7
Linking all Components of a Smart Power System Smart Generation Smart Grid Smart Consumption Smart Storage Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 8
E-Energy programme 2009 2010 2011 2012 2013 Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 9
E-Energy: a multi-dimensional research agenda Energy Efficiency Market Liberalization ICT Architecture IT Security & Data Privacy Intelligent Metering ICT for Storage Integration of Renewables e-mobility Further Grid Construction Decentralized Energy Generation Increase Flexibility of Load Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 10
Together all areas covered Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 11
Together all areas covered cold stores swimmine Arena above 1.000 Homes above 500 homes above 100 generators 50 private homes 1.000 private homes (40 with storages) 80 enterprises 20 > 200 > 2.000 private homes above 1.000 homes 14 µchps Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 12
Cellular organism for secure supply Object Cell with energy butler serving as energymanager Distribution Grid Cell Markt Moderator Grid Moderator System Cell with Market Place and Grid Operation Energy Information Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 13 13
Living in a Smart House PV-unit and micro-chp Electric vehicle as storage Energy management including all household appliances If required, house can be operated as an autonomous cell Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 14 14
Communication from Generation to Consumption Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 15 15
Innovations in Homes micro CHP fuel cell heater battery storages Callux Modellprojekt Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 16
Smart Grids, Homes and Markets Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 17
ICT infrastructure: the key enabler Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 18
Demand Side Management Enables Power System Management Voltage problem ahead Bargaining process initiated Offers invited and accepted Voltage problem solved Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 19 19
A whole region as a Virtual Power Plant Comprehensive prognosis systems Innovative control room for Virtual Power Plant Balance and value added within the region Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 20 20
First results Saving potentials up to 20 % in businesses up to 5 % or 10 % in households Load shift potentials up to 10 % in private homes profitable in enterprises Diversity of proven incentives time of use tariffs bonus- and malus systems Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 21
First results ICT enables the market based integration of small-sized, decentral generation units without endangering the stability of the grid Aggregators can provide secure access to market places for small providers Cellular Approach enables security of supply Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 22
First Results ICT enables the integration of small-sized, distributed generation units without endangering the stability of the grid: Sensors necessary in the grid and at its borders Improved generation- and consumption prognoses are key RES units can provide for system services for the grid Conventional storage for short term load compensation; further storage technologies required for long term buffering Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 23 23
Demandside Management (one day) generation consumption 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 generation consumption Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 24
Short Term Storage (one day) generation consumption load generation consumption unload Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 25
Long term Storage consumption generation J F M A M J J A S O N D load consumption generation unload Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 26
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STORM? Smart Storage and Mobility A model to develop and decide upon holistic solutions to increase regional RES supply and outbalance volatility with appropriate buffering means. 28
The Principle Connect RES to the grid and control generation and consumption as possible Connect short term and long term storages to the grid and control them via ICT Implement algorithms to make best use of demand side management, generation side management and storages short term storage long term storage 29
Storage Options Technology Availability Storage period Storage volume Loical option storage of conversion (Biogas) +++ Days + +++ Power-to-Gas (Methane within gas grid) o Weeks +++ o Power-to-Gas (hydrogen within the gas grid) o Weeks + -- Power-to-Gas (hydrogen local) -- Days - + chemichal storage (Zeolith etc.) + Weeks o + compressed air storage + Weeks o o pump storage (regional) o Days o ++ pump storage (Scandinavia etc.) + Weeks ++ fly wheels (small-sized) +++ Minutes -- +++ fly wheels (large-sized) -- Weeks o o mobile batteries (electric vehicles) -- Hours - +++ stationary batteries o Days - +++ Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 30
Smart energy supply with overlapping grids power grids gas grid heat grids mobility grids Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 31
ICT links the energy system s worlds Industrial Energy Management Linked System Level ICT- Infrastructure Level Smart Home E-Mobility Closed System Level Central Energy Generation Transmission Grid Distribution Grid Market s Storage Services Decentralized Energy Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin Generation 32 32
ICT links the energy system s worlds Industrial Energy Management Smart Linked Energy System Level Smart Home E-Mobility ICT- Infrastructure Level Smart Grid Closed System Level Central Energy Generation Transmission Grid Distribution Grid Market s Storage Services Decentral Energy Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin Generation 33 33
Control Signals for Good and Bad Times: Unbundling Version Electricity Sales Market Place Grid Operation Price Signal Cell Management Steering Signal Object Management Priority Signal Application Control Generation Unit Consumption Unit Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 34
Smart Energy: a System of Systems? Energy Information System cellular organisam, decentral processing and control, encapsulation of errors central control, bidirectional communication to generation, storage and consumption central control, limited ICT with grid components, gneration and consumption appliances monopol like market model regulated oligopol, new services, new functions (e. g. flexibility operator) big number of market participants using open market platforms Energy Market System Energy Provision System centralized generation, hierarchical grid distributed generation, levelled optimization cellular system with. autonomous parts (e. g. micro or nano grids) Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 35
One size does not fit all! grid topo & situation Challenge distributed small PV distributed wind or large PV high penetration of electric vehicles multiple deviations from prognosis
Summary Future energy systems need ICT. Technology is ready. Deployment is pending. Renewable energies call for a new energy market design. Existing market roles are getting under debate. Smart Homes are key for the Energiewende. Energy management reduces CO2 emissions and pays back as insulation does. Stress from renewables must and can be partially solved on local and regional level. Microgrids and cellular grid structures are a regionally viable solution. Municipalities can drive towards Smart Energy. They define the framework for power supply and a big portion of the building sector. Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 37
We need a base infrastructure! Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 38
Build your own Smart Grid: the E-Energy Animation www.e-energy.de/en/animation/ Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 39
For more information www.e-energy.de Ludwig Karg e-energy@baumgroup.de Tel. +49-89 - 18 935 0 Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 40
BACKUP Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 41
Grids und mobility: joint demonstration projects Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 42
Transmission Grid Amprion TransnetBW 50Hertz TenneT TSO 4 control areas, 1 TSO for each area Non-discriminating access for electricity traders and/or retailers Procurement of control energy to maintain frequency stability Option to shed load from the grid or to allocate target values for power plants Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 43
Distribution Grid Low voltage and medium voltage grids Municipal jurisdiction >>> concession contracts for more than 900 DSOs DSO responsibilities: regional grid stability, load balancing and connection to grid users (generators and consumers) Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 44
From Feed-in to Market Models for PV electricity In the past: Returns from guarantueed feed-in remuneration Today: Returns from guaranteed feed-in remuneration (max. 70 % of installed capacity) Avoided purchasing of electricity Tomorrow? Proceeds from selling energy Proceeds from proving system services Avoided purchasing of electricity Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 45
Incentive strucutre for renewable energies Service premium Flexibility premium Market premium Market premium Market premium Market premium Market price < reference value Market price < reference value Market price < reference value Current market price > reference value Reference value (average market price) Guarantueed feed-in remuneration Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 46
New Business Scenarios Energy Supplier Energy Supplier plus Service Provider Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 47
Agenda 1. The German energy supply system 2. Global and national challenges 3. Energiewende What is to come? 4. Conceivable changes Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 48
Building of electricity supply Generation Grid Retail Central generation Decentral generation Transmission grid Distribution grid Electricity trade Electricity retail Electricity markets Electricity Exchange Stock market Control energy market Electronic marketplaces aggregators EEG Feed-In On-site consumption Direct marketing Utilization of electricity generation from DER Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 49
Building blocks of the future energy economy Generation Grid Retail Central generation Decentral generation Transmission grid Distribution grid Electricity trade Electricity retail Electricity markets Electricity Exchange Stock market Control energy market New: Regional market New: Capacity market Electronic marketplaces aggregators EEG Einspeisung EEG Feed-In On-site consumption Direct marketing Utilization of electricity generation from DER Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 50
Electricity Price Price range max. 7 ct 1-contract-model for private users kwh for private users, kw for commercial users Private user price at about 0,20 EUR/kWh Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 51
Marketplace and Services Demandside Management Demand Control Demand Response Generation Management Capacity Management System Services Electronic Marketplace Dynamic Tariffs Specific Contracts Supplier Grid Operator Aggregator Generator Consumer Enterprise Mobility Provider Market place Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 52
Feed-in and on-site consumption of PV electricity In the past: Returns from guarantueed fee-in remuneration heute: Returns from guaranteed feed-in remuneration (max. 70 % of installed capacity) Avoided ersparter excess Zukauf purchasing of von Strom electricty Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 53
Challenging Volatility Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 54
Storage-Demand and Storage-Supply Pump Storage Gas Grid Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 55
Profitable flexibility especially for commercial users Central energy manager Switching on/off consumers Cold storager compressed air aggregator request offer call Energy Manager* A batteries request delivery * Energy manager react to requests and offer flexibility within the realm of preset parameters Company A request offer call Energy Manager B Company B TSO/DSO/electricity trader request offer call Energy Manager C Company C Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 56
Changes in the regulatory framework Intensive interaction between regulatory bodies and E-Energy actors Central questions: Which components of the system are parts of the grid, which components are parts of the market? Which ones should be regulated? Who is responsible for the security and non-discriminating operation of the ICT infrastructure? Will we see a development of entirely new market roles or the establishment of new functions wit existing market roles? Which tariff-or contract-instruments(reduced network charges, flexibility premium) can be developed by the TSO to create incentives for generators, energy users and retailers? How can decentralized generation units be commited to or incentived to offer system servives for the stabilization of the grid ( broadening of 14a EnWG if indicated) Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 57
Recommendation of the E-Energy Task Force Legal Frameworks quick allocation of responsibilities and clarification of the financing question regarding the construction of ICT infrastructure for the Smart Grid Enable timely returns of investments in Smart Grids Immediate reimbursements for mandatory installations Renunciation of the manadatory use of standard load profile Data security and inforamtion security must be respected (long term) enabling cellular approaches, e.g. microgrids (long term) time- and load dependent network charges Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 58