Smartgrids Challenges and Implications of Smart Grid Implementation

Smartgrids Challenges and Implications of Smart. Grid Implementation Andrew Cross CIRED DC Chairman EA Technology UK Cross Sintra Seminar May 16 2008

Smartgrids Overview • • CIRED and Smartgrids Examples from CIRED authors Experiences and Barriers Conclusions Cross Sintra Seminar May 16 2008 2

Smartgrids CIRED Networking in an Open Electricity Market • ‘CIRED’ is derived from "Congrès International des Réseaux Electriques de Distribution„ • in English ‘International Conference on Electricity Distribution’. • An international association under Belgian law. • CIRED, the Leading Forum where the Electricity Distribution Community meets, is the major International Electricity Conference & Exhibition held every two years in different venues in Europe with a world-wide perspective and participation. Cross Sintra Seminar May 16 2008 3

Smartgrids CIRED - An Expanding International Forum IET UK National Directing Committee AIM CIRED Secretariat Belgium Technical Committee Organisation Committee Session Advisory Groups Session 1 Session 2 Session 3 Session 4 Session 5 Session 6 Cross Sintra Seminar May 16 2008 Committees Austria Belgium China Croatia Denmark Finland France Germany Italy Netherlands Norway Portugal Spain Sweden Switzerland UK Liaison Committees Algeria Argentina Australia Bahrain Bosnia & Herzegov Brazil Canada Czech Republic Egypt Greece Hungary India Iran Korea Malaysia Montenegro Poland Romania Russia Serbia Slovenia USA 4

Smartgrids CIRED 2007 Conference 1100 delegates 6 Main Sessions 16 Round Tables 400 Posters Technical Themes 1. Network Components 2. Power Quality and EMC 3. Operation, Control and Protection of Supply Systems 4. Distributed Generation - Management & Utilisation of Electricity 5. Power Distribution System Development 6. Deregulation, Management, Organisation and Skills www. cired 2007. org Cross Sintra Seminar May 16 2008 5

Smartgrids CIRED 2009 Conference Innovation in Electricity Distribution for a Sustainable Future 8 -11 June 2009 at the Prague Congress Centre www. cired. org. uk Cross Sintra Seminar May 16 2008 6

Smartgrids CIRED Seminar 2008: Smart. Grids for Distribution • 23 -24 June in Frankfurt • 100+ Technical papers from 25 countries • 5 keynotes – Smart. Grids Technology Platform: impact of SDD on Network Companies – Pier Nabuurs – Smart. Grid development: the view of the DNO – Livio Gallo – Smart. Grid Industrial Research Landscape – Duncan Botting – Role of the TNO: working together to shape the future of Smart. Grids – Chris Murray – EU Research to support development of smart networks – Wiktor Raldow • Regulator discussion panel Cross Sintra Seminar May 16 2008 www. ciredsmartgrids. org 7

Smartgrids Smartgrid Solutions Status Research • • . Development Trials . Roll out Lots of research activity Development of practical solutions Trials of new technology Implementation in particular areas Cross Sintra Seminar May 16 2008 8

Smartgrids Where is the activity • Improving network utilisation including dynamic ratings and real-time dynamic power flow management • Managing the transition from passive to active networks • System protection and security of supply • Energy Management Systems, smart metering, demand control and variation • New circuits design and planning integrating Distributed Energy Resources (DER) & demand response • Overcoming barriers to Smart. Grid development Cross Sintra Seminar May 16 2008 9

Smartgrids Examples from CIRED Authors Cross Sintra Seminar May 16 2008 10

Smartgrids Active Networks Load Management in a UK Registered Power Zone • • Significant amounts of wind generation are under construction in the area surrounding Skegness including both off-shore and on-shore developments. Most of this generation needs to be exported from Skegness to Boston via an existing dual circuit (1 x 175 mm 2) 132 k. V tower line. If conventional Winter/Summer ratings were applied it would be impossible to connect all the proposed wind generation as this circuit would be overloaded Solution is to apply a dynamic line rating to the circuit based on real-time ambient temperature and wind speed data Generation increases as wind speed increases but the corresponding increase in cooling from the same wind combine to improve the rating of the circuit by 20 -30% All data is being captured and recorded to allow for verification and refinement of the process adopted This scheme will have benefits for other parts of the network where circuits existing conventional ratings are also apparently approaching their theoretical limits. Cross R. Ferris Sintra – UKSeminar - Paper May 003816 CIRED 2008 Smartgrids Seminar 11

Smartgrids Impact of Microgrids concept on low voltage network reliability • • Detailed analysis of basic impacts of dispersed generation (DG) such as wind turbines, PV–systems and CHP units on network reliability Demonstrated how a suitable Microgrid operation strategy with corresponding control and protection schemes may improve total network reliability for different customer segments Traditionally time-dependent limited availability is neglected for the determination of network reliability indices assuming a fixed operating point for DER with reduced availability corresponding to the percentage of full load hours of the generation technology (i. e. 10 % for PV) An advanced approach which considers the synergy of time-dependent load profiles and generation profiles for an analytical reliability evaluation is described Potential for DG impact on reliability was analyzed for various DG penetration scenarios differentiated by location, capacity, number & type Simulation results for three cases (1) without DG, (2) with uncontrolled DG (island operation mode) and (3) with Microgrid operation compared Difficulties in adequate simulation that result from the complexities of meshed network structures are pointed out. However, the available results indicate that DG improves reliability - especially when controllable units are installed Cross Christine Sintra Schwaeger– Seminar May Germany 16 2008 - Paper 0027 CIRED Smartgrids Seminar 12

Smartgrids Virtual Power Plant Field Experiment using 10 micro-CHP units at Consumer Premises The experiment focused on the network utilization factor of the local distribution grid in 3 settings: 1. Baseline: domestic load profile of 10 households. 2. Fit-and-Forget: load profile of 10 households plus m. CHPs controlled in standard heat-demand driven manner 3. VPP operation: m. CHP operation coordinated by Power. Matcher intelligent control in peak-load reduction mode, without any intrusion on comfort for consumers. The main conclusions from these experiments are: • A Fit-and-Forget policy did not provide benefits to the DNO in comparison to the baseline case. The load-duration curve was lowered on average by adding the m-CHPs. However, the peak load remained virtually unchanged. • Adding VPP operation, based on intelligent control, led to a load-peak reduction of 30% in summer and 50% in winter. B. Roossien– Netherlands - Paper Cross Sintra Seminar May 16 2008 0086 CIRED Smartgrids Seminar 13

Smartgrids Application of energy storage systems minimizing effects of fluctuating feed-in of photovoltaic systems Fig. 1: Application of a plant storage system (PS) to a PV unit • • Up to now the installation of plant storages to smooth the feeding is uneconomic The main reason is the law (EEG) which assures operators of renewable energy generator fixed feed-in tariffs for energy supply into the power grid. The feed-in does not have to fit the current electrical demand If the EEG would guarantee just a fixed feed-in tariff for generation which are applied a day before, renewable energy generators with energy storage systems may establish. Also feed-in tariffs which depend on the feeding-profile may lead to a market penetration of storage systems installed at distributed generators Cross G. Bärwaldt Sintra–Seminar Germany May - Paper 16 2008 0112 CIRED Smartgrids Seminar 14

Smartgrids Inov. Grid Project – Distribution network evolution as a decisive answer to new electrical sector challenges • • Technical architecture being developed for the implementation of a fully active distribution network Energy Boxes (EB) nearest devices to consumers and producers, will support all metering and contractual life-cycle related services, also delivering through local communications detailed information & support message exchange and, where applicable, support micro-generation management and control Distribution Transformer Controllers (DTC) housed at MV/LV substation level, that besides managing services and communication with EB, operate as intelligent devices for transformer station control & automation, for fault detection and also for public light management Phase 2 includes developments in the areas of active distribution networks, selfhealing, micro-generation control strategies to deal with islanded operation and to help in power system restoration after exploitation problems and blackout situations, network assets monitoring, automation and control, and demand response and side management techniques Cross L. Vale. Sintra da Cunha Seminar – Portugal May 16 - 2008 Paper 0030 CIRED Smartgrids Seminar 15

Smartgrids Fenix architecture Energy Markets Transmission System Operator Distribution System Operators FENIX software Aggregators Intelligent meters Fenix box Households CHP Fenix box Industrial & commercial VPP Wind farms 20 partners, 4 years, budget is 14, 7 MEuro Cross J. Corera Sintra – Spain Seminar – RT 4 c May. CIRED 16 2008 2007 16

Smartgrids Norwegian Electricity Customers’ Attitudes Towards Smart Metering • • Willingness to pay is higher among those who currently have smart metering (39%) than those who do not (27%) Confidence in smart metering is high; 70% believe that it is as accurate as manual meter reading The proportion of sceptics is gradually falling Interest in using associated services is moderate Cross E. Fosby Sintra – Norway Seminar - Paper May 16 0052 2008 CIRED Smartgrids Seminar 17

Smartgrids A Roadmap for Developing Real Time Distribution System Simulation Tools for the Smart Grid • • • Simulation capabilities available to the operators play an important role in Smart Grid improvements by providing new perspectives on network operation with new possibilities for “what if” analyses and on network development with more accurate models However, the opportunities for new developments in simulation capabilities are very broad and efforts have to be strongly correlated to network operator needs and identified technical improvement pathways in order to be sure of their effectiveness A survey of the main experts of the industry was conducted to: – identify the main drivers of tool evolution – determine the most likely path for evolution of simulation and modelling functionalities • The results of this roadmap are intended to provide a high level view of the functionalities that will be needed in the next 10 years to allow “Smart. Grids” operation Cross Sintra X. Mamo – USA Seminar - Paper. May 0021 16– 2008 CIRED Smartgrids Seminar 18

Smartgrids Active Network Management: Technical, Commercial & Regulatory Barriers • The following are likely to find most application in ANM – FACTS devices (eg SVCs) – Micro. Grid Controllers – SCADA • The equipment associated with these ANM techniques are currently available in the marketplace from a number of manufacturers and little development work will be required to make these equipments available for widespread use • Currently there is little penetration of ANM into UK distribution networks and the tools used by DNOs to plan and develop their networks generally do not include ANM techniques as options for network development • Accordingly the lack of familiarity of the use of ANM techniques by DNO planners could be a barrier to ANM as the more traditional tried and tested solutions tend to used Cross Sintra G. D. Clarke – UK Seminar - Paper May 0122 16 2008 19

Smartgrids Barriers to smart grids Having established the case for smart grids the paper examines reasons why they may not happen other than in small “splashes” of limited functionality. Potential barriers that are examined include: • • cultural barriers costs of development and implementation high levels of uncertainty regulatory risk perceived complexity risks from Cyber crime burden of operating and maintaining the solutions vested interests Cross Sintra C. Walton – UK Seminar - Paper. May 002616 CIRED 2008 Smartgrids Seminar 20

Smartgrids The route to smart grids Finally we suggest some actions to make it more likely that smart grids will emerge and take their place in the future energy world. In other words, what we need to do to make them happen. These include • • • regulatory frameworks suitable incentives that support appropriate investment increased emphasis on research and development collaboration within industry and between industry and academia recognition of the need to get demonstration projects into place planning for large-scale rollout putting into place standards the importance of ensuring interoperability need to validate that these complex systems are effective and safe Cross Sintra C. Walton – UK Seminar - Paper. May 002616 CIRED 2008 Smartgrids Seminar 21

Smartgrids Smart Grids: on the road to reality Key messages are as follows: • • • the sector is facing a paradigm shift, not a variant of existing classical grid practices the sector is facing the biggest change in 40 years of grid development there is no simple blueprint, but there is an emerging vision and common concepts there are many stakeholders involved, each with critical roles to fulfill with multiple stakeholders involved, who is going to lead and coordinate what is required, beyond the technology, for successful implementation of smart grids Key conclusions are: 1. This is a revolution, not a variation on a theme 2. The span of business impacts must be addressed, not just the technology 3. There are management issues to be identified and addressed Cross Sintra J. Scott – UK -Seminar Paper 0097 May. CIRED 16 2008 Smartgrids Seminar 22

Smartgrids Some Personal Views • Distribution Network Operators are now commercial regulated businesses in most countries => They require incentives to grasp innovation & take risks • Many Smart. Grid applications have benefits that sprawl across DNO, TSO, generator, retailer, customer and community => Unbundling makes these more difficult to realise and reduces their attractiveness Cross Sintra Seminar May 16 2008 UK Distribution Company spend on Network R&D since 1990 Privatisation Impact of IFI Incentive 23

Smartgrids In Conclusion • There are powerful drivers taking us towards smarter or more intelligent networks • Many smart grid technologies are in development with some available to deploy • Implementation requires significant investment if it is to make an impact • Regulatory acknowledgement is needed • However, there is still plenty of work for the research, development, system builder and implementation communities in both T & D Cross Sintra Seminar May 16 2008 24