SMART GRID MODEL PROJECTS IN GERMANY: LESSONS … · Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M....

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SMART GRID MODEL PROJECTS IN GERMANY:

LESSONS LEARNED AND FUTURE DEVELOPMENT

Ludwig Karg, B.A.U.M. Consult München / Berlin

www.baumgroup.de

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 2

B.A.U.M. Consult: Facilitator for Smart Cities

Action Field Services/Projects

Research Projects Smart Grids, electric mobility, renewable

energies (consulting, communication, project

management)

Consulting for

national and local

authorities

Implementing climate protection concepts,

creating master plans for city development,

facilitating regional and city development

processes

Consulting for

enterprises

Implementing energy efficiency programs,

supporting certification processes,

technology networking

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 3

Residential Buildings

Enterprises and Public

Buildings

Mobility

Energy

Energy EfficiencyRenewable EnergiesDecentral Energy SupplySmart Energy

Urban Development

Urban PlanningWater Resource management

Activation Process

Smart City: Identifying Areas of Activity

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 4

Decisions have been made!

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 5

The Future of Energy Supply

Solar

Wind

Geothermal

Biomass

Natural Gas

Oil

Coal

Nuclear

Water

volatile & decentral

triangle of hope

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 6

Paradigm Shift

Consumption-driven Generation

plus

Generation-driven Consumption

6

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 7

(Re)Construction of the Grid: Copper and Silicium

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 8

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 9

E-Energy programme

2009

2010

2011

2012

2013

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 10

E-Energy: a multi-dimensional research agenda

Energy Efficiency

e-Mobility

Intelligent Metering

ICT Architecture

IT Security& Data Privacy

Increase Flexibility of Load Storage

Market Liberalization

Further Grid Construction

Decentralized Energy Generation

Integration ofRenewables

ICT for …

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 11

Together all areas covered

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 12

Together all areas covered

• above 1.000 homes• 14 µCHPs

• cold stores• swimmine Arena• above 1.000 Homes

• 1.000 private homes(40 with storages)

• 80 enterprises

20 > 200 > 2.000 private homes

• above 100 generators • 50 private homes

• above 500

homes

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 13

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

13

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 14

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

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Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 15

Communication from Generation to Consumption

15

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 16

Innovations in Homes

Callux Modellprojekt

micro CHP fuel cell heater battery storages

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 17

Smart Grids, Homes and Markets

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 18

ICT infrastructure: the key enabler

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 19

Demand Side Management Enables Power System Management

Voltage problem ahead

Bargaining process initiated

Offers invited and accepted

Voltage problem solved

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Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 20

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

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Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 21

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 22

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 23

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

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Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 24

Demandside Management (one day)

generation

consumption

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

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 25

Short Term Storage (one day)

generation

consumption

load

unload

generation

consumption

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 26

Long term Storage

generation

consumption

J F M A M J J A S O N D

generation

consumption

load

unload

27

STORM?

28

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.

The Principle

29

short term storage

long term storage

• 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

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 30

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 31

Smart energy supply with overlapping grids

power

gridsgas grid

mobility

grids

heat

grids

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 32

ICT links the energy system‘s worlds

Linked System Level

ICT- Infrastructure Level

Storage

Decentralized Energy

GenerationServices

Markets

Industrial EnergyManagement

E-Mobility

Smart

Home

Closed System Level

Central Energy

Generation

Transmission

Grid

Distribution

Grid

32

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 33

Linked System Level

ICT- Infrastructure

Level

Closed System Level

Central Energy Generation

Transmission Grid

Distribution Grid

Storage

Decentral Energy Generation

Services

Market

s

Industrial Energy

Management

E-Mobility

Smart

HomeSmart Energy

Smart Grid

ICT links the energy system‘s worlds

33

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 34

Control Signals for Good and Bad Times:

Unbundling Version

Electricity Sales Grid Operation

Object Management

Application Control

Generation Unit

Priority Signal

Consumption Unit

Cell Management

Steering Signal

Market

Place

Price Signal

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 35

Smart Energy: a System of Systems?

centralized generation, hierarchical grid

Energy Provision System

cellular system with. autonomous parts (e. g. micro or nano grids)

distributed generation, levelled optimization

Energy Information System

cellular organisam, de-central processing and control, encapsulation of errors

central control, limited ICT with grid compo-nents, gneration and consumption appliances

central control, bidirec-tional communication to generation, storage and consumption

Energy Market System

monopol like market model

big number of market participants using open market platforms

regulated oligopol, new services, new functions (e. g. flexibility operator)

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

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 37

• 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.

Summary

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 38

We need a base infrastructure!

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 39

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 40

www.e-energy.de

Ludwig Karg

e-energy@baumgroup.de

Tel. +49 - 89 - 18 935 – 0

For more information …

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 41

BACKUP

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 42

Grids und mobility: joint demonstration projects

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 43

• 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

Transmission Grid

Amprion

50Hertz

TransnetBW

TenneT TSO

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 44

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 45

From Feed-in to Market Models for PV electricity

Returns from guarantueed feed-in remuneration

In the past:

Returns from guaranteed feed-in remuneration

(max. 70 % of installed capacity)

Today:

Avoided purchasing of

electricity

Proceeds from selling

energy

Tomorrow?

Avoided purchasing of

electricity

Proceeds from proving

system services

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 46

Incentive strucutre for renewable energies

Guara

ntu

eed fe

ed-in

rem

unera

tion

Refe

rence v

alu

e

(avera

ge

ma

rket p

rice)

Curre

nt m

ark

et p

rice

> re

fere

nce v

alu

e

Mark

et p

rice

< re

fere

nce v

alu

e

Market

premium

Market

premium

Mark

et p

rice

< re

fere

nce v

alu

eMarket

premium

Flexibility

premium

Mark

et p

rice

< re

fere

nce v

alu

e

Market

premium

Service

premium

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 47

New Business Scenarios

Energy

Supplier

Energy Supplier

plus

Service Provider

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 48

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 49

Building of electricity supply

RetailGridGeneration

Central generation

Decentralgeneration

Transmission grid

Distribution grid

Electricity trade

Electricity retail

Utilization of electricity generation from DER

On-site consumptionEEG Feed-In Direct marketing

Electricity markets

Electricity Exchange Stock market

Control energy market

• Electronic marketplaces• aggregators

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 50

Building blocks of the future energy economy

EEG Einspeisung

RetailGridGeneration

Central generation

Decentralgeneration

Transmission grid

Distribution grid

Electricity trade

Electricity retail

Utilization of electricity generation from DER

On-site consumptionEEG Feed-In Direct marketing

Electricity markets

Electricity Exchange Stock market

Control energy market

• Electronic marketplaces• aggregators

New: Regional market

New: Capacity market

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 51

Electricity Price

• 1-contract-model for private users

• kWh for private users, kW for commercial users• Private user price at about 0,20 EUR/kWh

Price range max. 7 ct

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 52

Marketplace and Services

• Demandside Management

• Demand Control

• Demand Response

• Generation Management

• Capacity Management

• System Services

• Electronic Marketplace

• Dynamic Tariffs

• Specific Contracts

Generator

Consumer

Enterprise

AggregatorMobility

ProviderSupplier

Grid Operator

Market place

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 53

Feed-in and on-site consumption of PV electricity

Returns from guarantueed fee-in remuneration

ersparter Zukauf

von Strom

In the past:

Returns from guaranteed feed-in

remuneration (max. 70 % of installed

capacity)

heute:

Avoided excess purchasing of

electricty

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 54

Challenging Volatility

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 55

Storage-Demand and Storage-Supply

Pump Storage

Gas Grid

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 56

Profitable flexibility – especially for commercial

users

Central energy

manager

Energy

Manager C

Energy

Manager B

batteries

compressed air

Switching on/off

consumers

TSO/DSO/electricity trader

Company B

Company C

aggregator

Company A

Cold storager

request

Energy

Manager* A

request

delivery * Energy manager react to requests and offer

flexibility within the realm of preset parameters

offer

call

request

offer

call

request

offer

call

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 57

• 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)

Changes in the regulatory framework

Freiburg, 25.10.2012 Ludwig Karg, B.A.U.M. Consult GmbH München / Berlin 58

• 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

Recommendation of the E-Energy Task Force

Legal Frameworks