Smart grids: European situation and developments
European energy policy, as set by the European Union (EU) and implemented nationally by the individual member states, has set ambitious targets for 2020, with 20 percent reduction in CO2 emissions, 20 percent energy generated by renewable sources, and 20 percent energy savings. This “20/2020” initiative has intensified discussion of, and is setting the stage for, intensive research and forward-looking investment in the modernization and interconnection of the continent’s grid needed to efficiently and effectively reach the targets.
Why smartgrids
The European power system, as depicted in Chart 1, is the largest man-made system, comprising 13 percent of total European power consumption. This system serves 430 million people with 2,500 terawatt hours (TWh) used. The system is comprised of 560 gigawatts (GW) of installed generation capacity, a 230,000 kilometer (km) high voltage network, and a medium- and low-voltage network of about 5 million km. The system represents the equivalent of €1,500 per EU citizen and generates €120 billion in annual revenues, contributing 1.5 percent to the region’s gross domestic product (GDP).
Demands on the European system are growing, with investments of €1 trillion by 2030 needed to meet future demand. Demand growth of 2 percent means an additional of 1,250 TWh of power will be consumed. On the generation side, a replacement and expansion of 900 GW, and 500 GW of peak renewable energy sources (RES) will be needed by 2030. In terms of transmission and distribution, a combination of ageing assets, system expansion and integration of RES and distributed generation (DG) is precipitating the need of €500 billion by 2030. And markets and regulations that support and enable the system will need over €20 billion investment in data and information by 2030.
The ambition EU energy policy targets, the size and scope of the European power system, and the needed investments to manage its future growth, together are driving remarkable changes in how power itself is generated, transported and used. We are witnessing a paradigm shift based on the three technology pillars of renewable energy sources, storage technology (including hydrogen), and distributive communications and energy, what is come to be commonly described as the “SmartGrid.”
Drivers towards European smartgrids
There are many factors influencing Europe’s adoption of SmartGrid technology (see Chart 2). These drivers can be summarized as follows. First, the internal European market will promote economic growth and play a key role in the EU’s competitiveness. This increasing competition will encourage efficiency and spur on technological progress and innovation--to provide benefits to the European citizens such as a wider choice of services and reduced electricity prices.
Second, the security and quality of supply is a key concern, encompassing two primary issues: 1) countries without adequate reserves of fossil fuels are facing increasing concerns for primary energy availability. Europe’s import dependency is 50 percent today, and is certain to rise; 2) the ageing infrastructure of Europe's electricity transmission and distribution networks is increasingly threatening security, reliability and quality of supply.
Third, the environment and addressing sustainability issues is a major driving force for new power system technology. In addition to issues of primary energy supply, the major disadvantage of fossil fuels is that they emit CO2, SO2, NOX and other pollutants when burnt to generate electricity. Greenhouse gases contribute to climate change, which is recognized to be one of the greatest environmental and economic challenges facing humanity. Research is needed to help identify the most cost-effective technologies and measures that will enable the EU to meet its targets under the Kyoto Protocol and beyond.
Ultimately, any decision on SmartGrids must strike a balance between supply security, supply quality, sustainability and reasonable cost. The challenges for Europe for 2020 and beyond include identifying and understanding the optimal locations and availability of wind and solar generation sources, the feasibility of micro-generation options for millions of homes, establishing new DC links and interconnections to renewable and distributed generation sources, and facilitating consumer-focused technology to engage customer interaction and enable intelligent applications. In other words, SmartGrids will be needed to ensure supply security, connect and operate clean and sustainable energy, and provide value for money invested.
The power grid of the future will be a more internet-like grid, with multi-directional flows of central and dispersed—distributed energy resources (DER)—generation sources (see Chart 3). This will enable generation and load matching, that can further facilitate energy management or support local “islanding” microgrids. The SmartGrid will also include multi-directional flows of information and communications via central and dispersed intelligence, enabling fully integrated network management through smart materials and power electronics. And increased two-way communications throughout a combination of large- and small-scale mesh-like system will help to engage end users through the availability of real-time information and participation technology.
Transition and change: emerging trends and challenges
Transitioning from the classic, centralized grid system of today to the mesh-like SmartGrids of the future requires a common vision, collaboration and societal buy-in and permission. The elements of change must be facilitated on all levels, from technology, standards and open systems and legal and regulatory frameworks to commercial arrangements, manufacturing and supply chain, and demonstrating and proving new and emerging technologies.
We’re seeing today significant change in the automotive sector that will impact future grid design and operations. Based on recent industry research and studies, the automobile itself can become a "power station on wheels" with a generating capacity of twenty kilowatts. Since the average car is parked most of the time, it can be plugged in, during non-use hours, to the home, office, or the main interactive electricity network, providing premium electricity back to the grid. That means, for example, that if just 25 percent of drivers in the U.S. used their vehicles as power plants to sell energy back to the grid, all of the power plants in the country could be eliminated.
Other technology developments that will shape SmartGrids include energy storage, domestic micro combined heat and power (MicroCHP), increased residential application of photovoltaic (PV) systems, and smart metering or advanced metering infrastructure (AMI). From a network perspective, the emerging smart metering/AMI revolution will play a significant role in enabling grid-wide load balancing, voltage monitoring, interference detection, and protection of social priority customers such as hospitals. Smart metering/AMI also can enable automated compensation payments for supply loss, load limiting for debt situations and for empty properties, and for developing new services to delight customers.
In the EU, there are many challenges for transmission in building the SmartGrid future including EU power supply security and grid robustness; connecting, transporting and integrating renewable energy; integrating central/dispersed sources; integrating intelligent application; operational modeling and forecasting; aggregation of ancillary services; and end user ‘visibility’ and interaction. But the big issues to address in building the SmartGrid in the near to medium term can be summarized as (1) distribution must become more ‘active’—more transmission-like, and (2) transmission must integrate, not just accommodate, renewables and active distribution networks.
Effects on grid companies
This change will obviously necessitate new roles for European network companies. Network companies will need to fill the roles of integrator, optimizer and aggregator. As an integrator, grid companies must facilitate energy efficiency, overall customer participation, customer micro-generation, heat networks and carrier communications in their systems. As an optimizer, network companies must manage constraints and minimize losses, utilize smart meter data, manage asset condition and predict failure events, and facilitate intelligent demand management in cases of emergencies. As an aggregator, network companies will need to aggregate and manage dispersed power sources as well as ancillary services for the local networks and the grid.
The greatest challenge
In the EU political imperatives are driving change and grid renewal is very timely in light of the 20/2020 targets and increasing demands on the European power system. There also are strong new technology opportunities becoming available with tremendous implication for how grids are designed, managed and used. These opportunities are emerging worldwide and have very real business potential. However, the biggest challenge in harnessing and delivering on these opportunities is garnering the level of people engagement needed to succeed. SmartGrids must embrace transport, the built environment, and customer behavior as well as have societal permission. In other words, the power sector’s greatest challenge is how to communicate with and convince the wider public to accept and actively participate in SmartGrids. Ultimately SmartGrid is an issue for society and policy makers and not the electricity sector alone.
The European technology platform
In light of the opportunities and challenges associated with SmartGrids for the economic, environmental and societal future of Europe, the EU Technology Platforms are focusing on SmartGrids as a strategic issue for Europe’s growth. The Platform seeks better alignment of EU research with industry needs and to cover the entire economic value chain. The Platform’s objective is to ensure that research is transformed into technologies, processes and ultimately into marketable products and services.
To reach this objective, the SmartGrid Technology Platform specifically brings together key EU stakeholders had has published a SmartGrid vision document and strategic research agenda, and a strategic deployment document is in the final drafting phase (see: www.smartgrids.eu). The strategic deployment document includes the following key messages:
demonstration projects are key to progress
government and regulators must help address the framework issues
SmartGrids are critical to sustainability targets and to security of supply policy goals
the document is based on the EU policy for two timeframes—2020 and 2050
both deployment AND research will be required in parallel; deployment of today’s innovative technology to meet the challenges for 2020 and research to meet the challenges beyond 2020 to 2050.
The SmartGrid Technology Platform is also considering establishing a member-funded SmartGrids Association. The envisioned association would serve a number of functions including: provide assistance to those who want to move forward; coordinate analysis and research programs; be an international liaison forum, including standards; be a definitive source of information, news and forecasts; and provide communications and liaison services for its members.
Outside the EU, other global regions are actively engaged in various stages of SmartGrids activities and initiatives. While each region has a different pace of development, decision making and involvement, the question today is how can we speed up the SmartGrid future through international cooperation.
This paper summarizes Mr. Nabuurs' presentation given at GridWeek held on September 22 – 25, 2008 in Washington, DC.
About the EU smartgrid technology platform
From: www.smartgrids.eu
During the first International Conference on the Integration of Renewable Energy Sources and Distributed Energy Resources held in December 2004, industrial stakeholders and the research community suggested the creation of a Technology Platform for the Electricity Networks of the Future.
The European Commission Directorate General for Research developed the initial concept and guiding principles of the Technology Platform with the support of an existing FP5+6 research cluster (see www.ired-cluster.org – Integration of Renewable Energies and Distributed Generation), which represents over 100 stakeholders in the electricity networks sector.
The SmartGrids European Technology Platform for Electricity Networks of the Future began its work in 2005. Its aim was to formulate and promote a vision for the development of European electricity networks looking towards 2020 and beyond.
The main elements of the Platform are as follows:
SCOPE -- The initial scope of the Platform aims at increasing the efficiency, safety and reliability of European electricity transmission and distribution systems and removing obstacles to the large-scale integration of distributed and renewable energy sources, in line with the proposed priority for Smart Energy Networks in FP7.
STRUCTURE – The Platform should be open and accessible, allowing the participation of all active stakeholders. The structure should reflect the diverse and complementary activities which will be undertaken by the Platform, and be such as to ensure that initiatives are taken forward in an active and dynamic manner. It is recommended that the Technology Platform should be steered and monitored by an Advisory Council, which should provide guidance on the definition, initiation and putting in place of the structure, procedures and work program.
DELIVERABLES – The first deliverable of the Platform should be a Strategic Research Agenda for this area, which should be ready at the end of 2006. Other deliverables will be determined by the Advisory Council.
Benefits of technology platform
The projects resulting from the SmartGrids vision will stimulate innovation in new network and associated information technologies. The benefits of new technologies will have a positive effect for European citizens and for international business. Job opportunities will be broadened as the networks require workers with new skills and integration across new technology areas.
SmartGrids will help achieve sustainable development. Links will be strengthened across Europe and with other countries where different but complementary renewable resources are to be found. An increasingly liberalized market will encourage trading opportunities to be identified and developed. SmartGrids networks will, in addition to electricity flows, establish a two-way flow of information between supplier and user.
For a successful transition to a future sustainable energy system all the relevant stakeholders must become involved: governments, regulators, consumers, generators, traders, power exchanges, transmission companies, distribution companies, power equipment manufactures and ICT providers. Coordination at regional, national and European levels is essential and the SmartGrids Technology Platform has been designed to facilitate this process.
About Automation Insight
Automation Insight is a complimentary monthly publication designed specifically for the utility industry and those serving the utility industry. For comments or suggestions on future article topics, please e-mail automation.insight@kema.com.
To receive Automation Insight by e-mail, please e-mail automation.insight@kema.com with 'subscribe' in the subject line.
Automation Insight is an opt-in subscription. KEMA does not sell or otherwise make public subscriber information and honors all ‘unsubscribe’ requests. To unsubscribe, please e-mail automation.insight@kema.com with 'unsubscribe' in the subject line.