Towards Smart Power En

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Lessons learned fromEuropean research FP5 projects

Towards SmartPower Networks

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Lessons learned fromEuropean research FP5 projects

Towards SmartPower Networks


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List of abbreviations 03

Foreword 05

Introduction 07

Power quality, reliability and security 09

ICT builds Smart Electricity Networks 16

Laboratory activities and pre-standardisation 20

Pilot Installations and field tests 24

Socio-economic issues 28

Further RTD activities 32

List of FP5 projects 36

List of abbreviations

CENELEC European Committee for Electrotechnical

Standardisation

CHP Combined Heat and Power

DER Distributed Energy Resources

DG Distributed Generation

DSO Distribution System Operator

ERA European Research Area

EU European Union

FACTS Flexible Alternating Current Transmission

Systems

FP European Framework Programme for RTD

HV High Voltage

HVDC High Voltage Direct Current

ICT Information and Communication Technologies

kbit/s communication speed unit,

kilobits per second

LV Low Voltage

LSVPP Large-Scale Virtual Power Plant

MV Medium Voltage

NGO Non-Governmental Organisation

OECD Organisation for Economic Cooperation

and Development

R&D Research and Development

RES Renewable Energy Sources

RTD Research and Technological Development

SGAD Smart Grid Automation Device

SME Small and Medium-sized Enterprise

TSO Transmission System Operator

Con

tents

Contents


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04

05

Foreword

Foreword

European energy research is helping to transform the

energy system into one which will be more sustain-

able and more compatible with the ecosystem. Within

this framework, energy research is a key factor for

the development of a sustainable European economy

in the context of the Lisbon Strategy, a major prior-

ity for the European Union which is intended to boost

competitiveness, job creation, social cohesion and en-

vironmental sustainability.

Wind generators, fuel cells, photovoltaic panels and mi-

cro-turbines to mention just a few are new forms of

electricity generation currently being developed. They

make up the so-called Renewable Energies and Distrib-

uted Generation; some of which are small or medium-

sized, while others are intermittent or even stochastic.

Today, wind power and Combined Heat and Power are

reaching a competitive level with the traditional forms

of energy generation. Maybe tomorrow we will be talk-

ing about micro-turbines, fuel cells and photovoltaics.

This brochure describes the lessons learned from

around 50 research projects under the Target Action

Integration of renewable energies and distributed

generation into European electricity networks, in theEUs Fifth Framework Programme (FP5). These projects

are seen as the starting point for the development of

the first generation of components and new archi-

tectures for interactive electricity grids. Among them

is the EU cluster IRED, which gathered the efforts of

more than 100 participants. It was launched at the

beginning of2001 to coordinate and disseminate the

new knowledge generated among the partners them-

selves with national programmes active in this area, as

well as stimulating relations with similar partnerships

worldwide.

Many projects in this FP5 Target Action started in 2001

and have achieved their initial objectives very success-

fully. Activities in this area are continuing in FP6 through

very promising large Integrated Projects and Networks

of Excellence, in which more and more utilities and oth-

er stakeholders in the electricity sector usually com-

petitors in the international market are showing their

readiness to share know-how and effort.

Achieving maximum European research power requires

the development of common and coherent views

among stakeholders. The setting up of the Technology

Platform for the Electricity Networks of the Future in

2005 is one way of answering this need. A Strategic

Research Agenda is also under preparation which in-

cludes the RTD priorities for the future.

Finally, present discussions for energy research in FP7

have identified a research area, referred to as Smart

Energy Networks, as a means of continuing current

RTD efforts at European level. The initial objectives of

this new area are To increase the efficiency, safety and

reliability of the European electricity and gas system

and networks, e.g. by transforming the current elec-

tricity grids into an interactive (customers/operators)

service network, and to remove the technical obstacles

to the large-scale deployment and effective integrationof distributed and renewable energy sources.

The challenges of this research area are very ambi-

tious, but the expected contribution to the integration

of Renewable Energies and Distributed Generation in

the electricity grids could lead to very important socio-

economic benefits.

Pablo Fernndez Ruiz

Director



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Introdu

ction

01

Towards Smart Power Networks


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06

07

Introduction

Introduction

Energy research in the EUFramework Programme

Today, Europes energy supply is characterised by

structural weaknesses and geopolitical, social and

environmental shortcomings, particularly as regards

security of supply and climate change. Whilst energy

remains a major component of economic growth, such

deficiencies can have a direct impact on EU growth,

stability and the well-being of Europes citizens.

These three elements provide the main drivers for

energy research, within the context of sustainable

development, a high-level EU objective that links

economic development, protection of the environ-

ment and social justice.

Energy, at the root of all human activity, holds the key

to reconciling these often opposing dimensions. De-veloping and making better use of clean energy tech-

nologies, by investing in R&D, will help to meet the

Lisbon and Gteborg objectives and to reinvigorate

and modernise our economy by contributing to tech-

nological innovation, increasing European competi-

tiveness, unlocking vast potential global markets and

thus creating wealth and new, skilled jobs.

In helping to meet these goals, which are by no means

exhaustive, energy research will contribute directly tothe success of EU policy and, in particular, the achieve-

ment of current EU targets, which will need to become

even more ambitious when looking towards 2020,

2030 and beyond. For example: achieving an 8% reduc-

tion in greenhouse gas emissions from 1990 levels by

2008-2012 (Kyoto); increasing the share of renewable

energy systems (RES) from 6% to 12% of gross energy

consumption by 2010; increasing the share of electric-

ity from RES to 21% of gross electricity consumption

by 2010 (from 14% in 2003 ); increasing the share of

liquid biofuels to 5.75% by 2010; and reducing energy

intensity by a further 1%/year until 2010.

FP5 research projectsfor integration of DER

Projects in this area of FP5 are helping to define and

validate new system architectures and advanced

components for future European electricity networks

based on a large share of DER, while maintaining the

high level of reliability and quality in the present net-

works. The FP5projects which were supported financial-

ly were sorted into the following Research Priorities:

New approach for large-scale implementation of

DER in Europe Future electricity networks require

novel concepts and systems for their planning, de-

sign, monitoring and control architectures. The main

objectives of projects in this Research Priority were

to design, develop and validate novel architectures,

components and DER solutions needed for future bi-

directional (customers/operators) service networks.

Energy storage technologies and systems for grid-

connected applications The aim of this Research

Priority focused on the development and improve-

ment of cost-effective high-power energy storage

systems based on a wide area of technologies in

grid-connected applications to facilitate the large

penetration of DER.

Development of key enabling technologies required

for interactive energy networks with high powerquality and security of service. This Research Priority

included developments of power electronic devices

and cable systems, high temperature superconduc-

tors (components, devices and systems), and new

Information and Communication Technologies (ICTs)

for distributed energy networks.

Projects financed under these FP5 areas play a key role

in transforming the conventional electricity transmis-

sion and distribution grid into a unified and interac-

tive energy service network using common European

planning and operation methods and systems.


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The achieved results of projects financed in FP5 in

this area will impact on the three drivers described

above economic growth, security of supply, and cli-

mate change.

The FP5 Cluster IRED

A coordinated effort in this RTD area started a few years

ago with the establishment of a EU cluster of seven key

FP5 projects (http://www.clusterintegration.org or

http://www.ired-cluster.org). The Cluster IRED, with

over 100 partners and a total budget of 34 million

euro, was launched with the aim of coordinating les-

sons learned and new knowledge generated by these

projects with national programmes active in this area,

as well as with similar partnerships in the USA, Cana-

da, Japan and other OECD countries.

The most important elements for the success of IRED are :

Systematic exchange of information by improving

links to relevant research, regulatory bodies, and

policies and schemes at European, national, regional

and international levels.

Setting up strategic actions such as trans-national

R&D co-operation and common initiatives on stand-

ards, test procedures and education.

Identifying the most important research topics in

the field of integration of DER, and taking actions

to address these.

Lessons learned

The main lessons learned from EU FP5 projects in this

area can be grouped as follows:

The change in emphasis from connecting to in-tegrating DER into the overall system operation

and its development is critical. This represents

a shift from the traditional, central-control culture

to a new, more distributed control paradigm which

requires that DER can no longer be considered as a

passive appendage to the network.

The electricity networks of the future will be based

to a large extent on new power electronics and ICT

applications, some of which have already been in

use in other sectors of industry for decades. Syner-

gies from these new developments and specific ICT

solutions for the power sector, such as distributed

intelligent control, a new internet generation mod-

el, etc., which are still in their initial stages today,

should be further developed.

Fully integrated DER will have the potential of de-

livering a number of benefits for Europe, such as

reduced central generation capacity; enhanced trans-

mission and distribution network capacity; improved

system security; reduced overall costs and CO2 emis-

sions; and shaping Europes competitiveness world-

wide. However, validation examples of those benefits

are needed to satisfy their credibility and acceptabil-

ity to the stakeholders.

Reliability, safety and quality of power are the

main issues linked to the large-scale deployment

of DER. Their effect on European transmission

networks, cannot be neglected and must be ad-

dressed with a comprehensive system approach.

Major technological operation, protection, con-

trol, etc. and regulatory changes will be needed in

Europe to accommodate this new open and unified

electricity service market approach during the com-

ing decades.

Finally, the establishment of the IRED cluster at the

early stage of this FP5 area has resulted in the better

pooling of dispersed resources and expertise and has

enabled the undertaking of more substantial and more

rewarding research initiatives. Under FP5 and FP6, im-

portant projects and actions, several of which are pre-

sented in this brochure, have benefited from improved

information exchange and coordination provided by

the IRED cluster.


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Introduction

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09

The EC support budget to projects in this area in FP5and FP6With a budget of almost one milllion euro, projects in the energy area under FP5 (1998-2002 ) are

well advanced, with many entering the critical phase of exploiting and disseminating their results.

The total expenditure on European RTD projects for the large-scale integration of Renewable Energy

Sources (RES) and Distributed Generation (DG) within FP5 is of the order of130million euro, with an

EC contribution of about67million euro.

The main objective of FP6, which runs from 2002 to 2006, is to contribute to the creation of a truly

European Research Area (ERA). Thematic Priority 6.1 Sustainable energy systems has a total

budget of around890million euro. Currently, about91 million euro matched by public and private

investments, with EU funding of about50

million euro, has been awarded to RTD projects for the large-scale integration of RES and DG in FP6.


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Powerquality,

reliabil

ityand

securit

y

02



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Power quality, reliability and security

Power quality,

reliability and security

10

11

DER and continuityof electricity supply

Satisfying and responding to customer requirements

is one of the key features of the liberalised electricity

markets. In particular, the continuity of the electric-

ity supply is a major factor for competitiveness, public

health, safety, etc. In the traditional network design

approach, the performance of the medium- and low-

voltage networks has a dominant impact on the qual-

ity of service seen by the end customers, while faults

in high-voltage (HV) distribution and transmission

networks do not normally affect the continuity of sup-

ply for customers connected to medium-voltage (MV)

and low-voltage (LV) networks.

In the majority of EU countries, more than 80% of the

customer interruptions and the customer minutes lost

are caused at one of these voltage levels. The signifi-

cant impact that these networks have on the number

or duration of interruptions is primarily driven by the

radial design of these networks. On the other hand,

MV voltage networks are generally built following

so-called n-1 security criteria, meaning that an in-

terruption caused by a fault of a single MV network

component should be restored much more quickly by

switching (manually or automatically, depending on

the size of the load lost) the lost load on to a sound

part of the network. This clearly requires some redun-

dancy in MV networks. Similarly, HV networks are of-ten built with respect to n-2 security criteria.

Securityis the ability of the system to remain in op-

eration after sudden disturbances that may occur,

like short circuits, loss of equipment, etc. It may take

into account any actions causing such disturbances,

such as human errors, extreme weather conditions,

terrorist activity, etc. Another definition that gives a

general sense of what power system planners and

operators might intuitively understand by security is

the art and science of ensuring the survival of power

systems. Security is often measured by determinis-

tic indices that may include the severity of situations

but ignore the likelihood. Examples are percentage

reserve used in spinning reserve assessment, and

the n-1 or n-2 criteria used in transmission oper-

ation and planning (meaning that the system should

continue to function after a loss of1 or2 circuits).

System reliabilityis the ability of the system to satisfy

customer requirements in terms of power and energy,

considering forced outages and the scheduled main-

tenance outages of the systems equipment. However,

the term reliabilityis very specific in meaning and isaccepted as being defined by a set of probabilistic in-

dices even if only expected (average or mean) values

are reported or predicted. Reported indices include fre-

quency of interruptions, duration of interruptions, an-

nual unavailability, and load and energy not supplied.

Today, a number of indices quantify the system opera-

tional performance, such as the Loss of Load Expecta-

tion (LOLE, hours/year), Loss of Energy Expectation

(LOEE, MWh/year), Expected Demand Not Supplied

(EDNS, MW/year), Frequency of Loss of Load (FLOL,occ/year), and the Energy Index of Reliability (EIR).

Power qualitydeals with the phenomena of various

deviations in voltage or current waveform or/and

shifts in phase. These deviations could result in failure

or the mis-operation of customer equipment. The most

important aspect refers to the quality of the voltage

supplied to the customer, and includes both steady

state variations, like voltage regulation, harmonic

distortion and flicker, but also disturbances, such as

transients, voltage sags (dips) and swells that could

lead to interruptions of supply (link with reliability).


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One of the potential key benefits of DER, being con-

nected at the MV and LV networks, is an increase in

service quality, reliability and security, providing DER

is integrated in an intelligent way in the power system

planning practices (Figure 2.1 ). However, the overall

approach to system operation and development, and

in particular to provision of security of supply services,

has yet to change, and no real attempt has been made

to integrate DER into system operation. Similarly, DER

developers and operators are principally concerned

with energy production from DER plant and, given the

current incentives framework, are not motivated to

provide any services associated with system security.

DER integrationinto operation practices

Levels of DER penetration in some parts of the EU

are such that it is beginning to undermine integrityand security of the system, especially in the form

of large wind parks. This is because the emphasis

has been on connecting DER to the network, rather

than integrating it into the overall system operation.

It is only recently that transmission grid codes have

started imposing Low (or Zero) Voltage Ride Through

(LVRT) capabilities, voltage support and active power

reserves on the new wind farms, showing a gradual

change in attitude. Nevertheless, the ability of inter-

mittent power generation to displace the capacity

of large conventional (thermal) plant, the increased

flexibility in demand and balancing services due to

wind variability, requirements for additional trans-

mission capacity and system support services (grid

codes) have still not been adequately studied, so that

the full exploitation of DER for maintaining high lev-

els of security and reliability can be achieved. New,

advanced tools and methods (on-line, probabilistic,

etc.) are needed to face these challenges.

Similarly, DER at lower voltage levels can take over

some of the responsibilities from large conventional

power plants and provide the flexibility and controlla-

bility necessary to support secure system operation.

However, such requirements to support the system in

critical conditions are not requested from DER at the

distribution level, and current operating practices only

ensure that these are promptly disconnected, in case

of disturbances.

Figure 2.1: DER potential to increase securityof supply

Clearly, large penetration of DER has the

potential a displace considerably fractionof energy produced by large central plant,

but the present passive approach will be unable

to provide the flexibility and controllability

needed. Hence, if nothing is done, conventional

large-scale power plants remain the source

of control for electricity operation assuring

integrity and security of the system.

inbrief

By fully integrating DER into network

operation, it will be able to displace not only

more expensive energy produced by central

generation, but also to enhance flexibilityand controllability in facing critical situations.

To achieve this, the operating practice of

distribution networks will need to change

from passive to active, demanding a shift from

traditional central control philosophy to a new

more distributed control paradigm.

Although transmission system operators

have historically been responsible for system

security, quality and reliability, enhancement

by DER will require system operators to

develop active network management in order

to participate in providing system security.

in

brief


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12

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Results of DISPOWER project have shown that with

intelligent management, distributed generation can

improve power quality as well as economic operation

(Figure 2.2)

This will present a radical shift from the traditional

central control philosophy to a new more distributed

control paradigm. Such a control paradigm is provided

by Microgrids (Figure 2.3), i.e. systems at LV that can

be operated interconnected to the grid, or in an au-

tonomous way if disconnected from the main grid, pro-

viding continuity of supply in case of upstream faults.

At MV level, the coordination of several Microgrids and

the operation of Virtual Power Plants, i.e. coordination

of several DER so that the full functionalities of central

power plants are obtained, allows DER to take the re-

sponsibility for delivery of security services in co-op-

eration with, and occasionally taking over the role of,

central generation.

Figure 2.3: The Microgrid concept.

Figure 2.2: Online monitoring and operation ofcomponents in the pilot experiences in Stutensee,Germany.


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Research in Europe:

power quality, security andreliability enhancement by DER

In FP5, some problems linked to power quality, reli-

ability and security have been studied in the following

projects:

In MICROGRIDS project, a number of innovative tech-

nical solutions for microgrids operation and control,

especially under islanded operation, have been inves-

tigated. It has been shown that the operation of DER, if

managed and coordinated efficiently, can provide dis-tinct benefits to the overall system performance. Cen-

tralised and decentralised control techniques, based

on agent technologies, present the microgrid to the

grid as a controlled entity that is operated as a sin-

gle aggregated load. Given attractive remuneration, it

can support the network, providing services such as

a small source of power or ancillary services, when

required or when market conditions favour it. From

the customers point of view, microgrids provide both

thermal and electricity needs and, in addition, have

the potential to enhance local reliability. They can im-

prove power quality by supporting voltage and reduc-

ing voltage dips, and can lower the costs of energy

supply, when compared to spot peak market prices.

Preliminary studies performed on a typical micro-

grid, comprising microturbines, wind turbines, fuel

cells and photovoltaics, have shown similar reliability

indices for an 80% reliable line feeding the microgrid

compared to a 100% reliable feeder without DER and

cost reductions compared to spot market prices on

some days.

In DISPOWER project, a power quality (PQ) manage-ment algorithm was developed that is able to solve

voltage limit violations in low-voltage grids by optimis-

ing control of generators, storage units and control-

lable loads (Figure 2.4 ). The algorithm automatically

adapts its behaviour in the light of network perform-

ance by changing its frequency of scheduled tasks and

sensitivity limits without requiring triggering by exter-

nal control. As shown by a variety of tests, the number

of 10-minute periods that voltage exceeds the limits,

is reduced by approximately 80% on average.

Figure 2.4: DISPOWER Project developed a power quality management algorithm to avoid exceedingthe voltage band by intelligent load management based on real-time information on the grid status.


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14

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Most DER are interconnected to the power system via

power electronic interfaces. Power electronics pro-

vide several possibilities to enhance power quality by

voltage support in withstanding voltage dips, active

filtering, phase balancing, etc. The development of

new concepts for the management of the quality of

DER-dominated networks, based on FACTS and Cus-

tom Power Technologies, has been investigated in

DGFACTS project. The key innovation is the use of a

set of modular systems to optimally improve the sta-

bility and quality of supply in each electric power dis-tribution network according to its characteristics and

requirements. Looking at their economic justification,

FACTS can be easily integrated into the network (Fig-

ure 2.5). Specific devices could be also profitable in

the near future, especially when the costs of the dif-

ferent network factors causing a lack of reliability will

need to be compensated for.

Figure 2.5: DGFACTS Prototype

Wiring for CentralPhotovoltaic (PV)Inverter Series Changed

Board and measurementfor reactive powerinjection implemented


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ICTbuildssmart

electricityn

etwork

s


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16

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ICT builds smart electricity networks

ICT builds smart

electricity networks

Universal connectivity

First, ICT creates universal connectivity between a

large variety of grid devices, including power produc-

tion resources, network nodes, and local loads. This

provides new and better technical foundations for

distant control of highly distributed networks on an

increasingly large scale. Universal connectivity is a

key enabler for the proper management of any future

energy network.

Services over the internet and web

Second, ICT provides new ways for real-time interac-

tion between suppliers, distributors, and customers in

the grid. This is due, in particular, to the internet and

web. Timely and high-quality information on the sta-

tus of the grid will become much more readily acces-

sible for all stakeholders. But beyond monitoring, theinternet enables new web services based on two-way

communication between suppliers and customers. Au-

tomated demand response, balancing services, and

dynamic pricing, buying and selling of power in real-

time are just a few of the promising applications to

come in future due to advanced ICT solutions.

Increasing the intelligenceof the grid

The third trend in ICT for power is that new tech-

niques in hardware and even more so in software,

effectively inject intelligence into the grid. The elec-

tricity system inherited from the 19th and 20th cen-

turies has been a reliable but centrally coordinated

system. With the liberalisation of European markets

and the spreading of local, distributed and intermit-

tent renewable energy resources, top-down central

control of the grid no longer meets modern require-

ments. Tomorrows grid needs decentralised ways for

information, coordination, and control of the grid to

serve the customer. ICT is central to achieving these

innovations.

Research in Europe: making thecritical infrastructures of powerand ICT work together

The networks for both power and ICT are infrastruc-

tures that are highly critical to the functioning of so-

ciety today. Moreover, they have become increasingly

interdependent. The aim of European research is to

make these two critical infrastructures work together

better. The power grid needs to become more intel-

ligent, self-managing, and self-healing. And this must

be achieved in decentralised ways, as we have al-

ready seen in ICT networks the internet itself being

inbrief

FP5 projects have demonstrated that:

Established Information and Communication

Technologies (ICT), including the internet and

web, are already capable today of catering for

many of the functionalities of the future elec-

tricity network. However, the European power

sector has not yet reaped all the benefits fromthe ICT opportunities currently available.

Software agents and electronic markets

are advanced ICT technologies that enable

distributed control of electricity networks and

make the grid intelligent and self-organising.

Further research and technology develop-

ment are needed on issues of interfacing,

integrating and protecting power systems

interlinked with ICT information systems,in a robust, dependable and standardised

way. This is to be done, for example, in the

context of integrating new concepts such as

the large-scale virtual power plant.

Also, attention must be paid to how to align

the emerging new business and service models

in the European market environment with new

ICT, internet/web, and electrical architectures.


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a noteworthy example. This philosophy of achieving

distributed intelligence in the electric power system

is being explored in several European projects.

Distributed intelligence:agents and electronic markets

Intelligence in the grid involves designing innovative

hardware and software components for the electricity

grid, in ways that cross-cut power and ICT systems engi-

neering. Two such successful advanced ICT technologies

are software agents and electronic markets. Agents are

pieces of software that represent someone or something;

they negotiate with other agents for the allocation of re-

sources and communicate this to the controller software

of the devices represented. Agents are known from web

services, and provide a form of local intelligence. The

use of electronic markets is visible in day-ahead markets

like NordPool in Scandinavia and Amsterdam Power Ex-

change (APX) in the Netherlands. The underlying prin-

ciples can, however, be used in many other settings,

especially if combined with multi-agent technology.

Electronic markets provide automated means of techni-cal coordination and optimisation in systems with many

diverse components. They are a basis for new forms of

distributed control with global intelligence. An electronic

market game, called Elektra, has been developed in FP5

to enable people to experience how the concept works.

For example, the European project CRISP has led to sev-

eral innovative applications in this area (Figure 3.1).

Supply-demand matching reducesregulating power needs

One application combines different distributed and

renewable energy resources in a commercial cluster.

Electricity producers and traders have to forecast their

production and consumption, and the forecast of de-

mand and supply must be in balance with the market

as a whole. The transmission system operator (TSO)

compensates deviations that occur in real-time by con-

tracting regulating power. The costs are put on those

parties in the market that deviate from their forecast.

Field experiments show (see also www.powermatcher.

net) that agent-based electronic markets in a local or

regional commercial cluster are able to minimise such

deviations. So, they reduce costs for the market par-

ties as well as the need for regulating power. Massiveimplementation of this concept will make the grid and

the electricity markets much more stable.

Figure 3.1: Project CRISP: electronic market experiment for automatic supply-demand matching.

Wind Turbine

Park I

Wind Park II

Residential HeatProduction (CHP)

Cold Store

Emergency

Generator

Test Dwelling

Data

Communications

Networks

Power Matcher

Aggregator

Local

Agent

Local

Agent

Local

Agent

Local

Agent

Local

Agent

Local

Agent


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18

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ICT builds smart electricity networks

Advanced fault detectionand handling

Agents representing a part of the grid are also useful

in fault detection, localisation, isolation and recon-

figuration. This has been shown in recent tests with an

agent-based Smart Grid Automation Device (SGAD).

This device interfaces the electrical power system on

the one hand and the ICT-systems on the other hand; it

forms part of a future large-scale virtual power plant, orLSVPP (Figure 3.2). In FP5, technical concepts for such

a device have been drafted and tested. In a cell of the

grid, messages can be exchanged between devices in a

few tens of milliseconds. Faults can be isolated correctly

in less than 10 seconds, up to one minute, even if data

communication rates are as low as 10 kbit/s. Hence,

this approach can drastically reduce the interruptions

observed today on the distribution system.

Intelligent load sheddingIn critical situations, whole areas are sometimes shut

down to prevent overall grid collapse. Measurements

during the blackout in Sweden in August 2003 showed

that technologies and procedures used today some-

times worsen the situation. Automatic tap changers,

for instance, focus on maintaining the voltage level

of the distribution grid. They ignore the fact that this

action worsens the situation for the whole system if

a concurrent voltage drop occurs in the transporta-

tion grid. EU research has produced an intelligent tap

changer that takes into account the voltage level at

the transmission level as well. Such a critical preven-tion action solution is part of a wider strategy of dis-

tributed load shedding. Here, the action is not on the

circuit breakers of the feeders, but on specific nodes

inside them a solution more flexible and effective in

reaching the objective of balancing global production

and consumption. Local agents evaluate the local load

to shed and submit the required actions to their con-

trolled loads and production units so as to meet the

required local power variation.

Many more such advanced ICT-based applications for

the grid and for managing distributed energy resources

will see the light of day in the coming years.

Figure 3.2: The Smart Grid Automation Device (SGAD) is the interface between the electricalpower system and ICT-systems within a Large-Scale Virtual Power Plant.

LSVPP Control


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ctivitie

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20

21

Laboratory activities and pre-standardisation

One of the key activities of the European laborato-

ries participating in FP5 projects has been to provide

common requirements and quality criteria, as well as

proposing test and certification procedures for DER-

components and systems.

However, this is just the beginning. New technological

approaches concerning the functions of distributed en-

ergy resources have to be tested, the quality of prod-

ucts must be guaranteed and operational requirements

should be harmonised.

Completion of DER laboratoriesin FP5

Projects in FP5 have completed their laboratory infra-

structure in order to set up the DER laboratories that

are required to cover these tasks. Under the DISPOW-

ER project, two successful test facilities for LV gridshave been implemented in CESIs Milan site and at

ISET (Figure 4.1). They have been used to characterise,

test and evaluate the reliability of typical distributed

generators, the behaviour of the electrical grid, and

the feasibility of controlling DG by remote control in a

synergic way (Figure 4.2). Also, supervision and data-

acquisition systems have been set up to operate in

safety mode on grid and generation power units spread

across a relatively wide area. They have been designed

to use various communication media and technologies,each of them useful in a different context.

Standardisation is a voluntary process based on

consensus amongst different economic actors (in-

dustry, SMEs, consumers, workers, environmental

NGOs, public authorities, etc). It is carried out by

independent standards bodies, acting at national,

European and international level.

The European Standards Organisations are CEN,

CENELEC and ETSI, of which CENELEC (European

Committee for Electrotechnical Standardisation)

deals with standards in the eletrotechnical field.

The European Union has, since the mid-1980s,

made an increasing use of standards in support of

its policies and legislation in the areas of competi-

tiveness, ICT, public procurement, interoperability,

environment, transport, energy, consumer protec-

tion, etc.

The electricity market might use standards to make

sure that competition is fair. The public would ben-

efit from a standard which improves the quality and

safety of the power supply or other services and

reduces the cost. European standards are also de-

veloped to help people comply with European leg-

islation on policies such as the single market.

The current change of the electricity supply struc-

ture towards more and more decentralised power

generation requires a change of current safety, con-trol and communication technology. Todays main

challenges are:

the development of standards within acceptable

time frames according to the market needs.

the availability of expertise within the standardi-

sation process

the access to information on the results of stand-

ardisation for the standards users

the use of standardsFigure 4.1: ISETs DER Laboratory DeMoTecin Kassel, Germany that was completed forperforming tests within the European ProjectsDispower, DG-Facts and Microgrids

Laboratory activities

and pre-standardisation


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Coordinated pre-standardisationactivities in European DERlaboratories

It has become clear that European DER laboratories

play a key role in the integration of distributed genera-tors, not only for testing concepts but also for the qual-

ity management of future DER system components.

Standardisation of DER technology should support

safe, reliable and efficient power supplies of sufficient

and defined power quality. It should also guarantee

the compatibility of applied components and control

techniques in order to transform efficiently the conven-

tional electricity grids into future networks with high

penetration of DER and renewable energies.

Traditionally in Europe, standardisation activities

concerning DG were performed mainly according to

the energy source, e.g. for wind, photovoltaic, CHP.

However, new interdisciplinary committees are being

established to bundle general system aspects andharmonise connection issues of DER:

IEC TC8: System aspects for electrical energy supply

IEC 61850: Communication networks and systems

in substations

IEEE1547TM: Standard for interconnecting distrib-

uted resources with electric power systems

The EUs FP5 IRED cluster encompasses standardisa-

tion activities that try to support the above-mentioned

committees. Initial activities in the IRED cluster were

intended to support harmonisation on the techni-

cal level in order to prevent the development of

unnecessary differences between Member States.

Figure 4.2: 100kW Microturbine One example for the huge test environment atCESI in Milan that was completed by severaldifferent distributed generators for testingunder steady state and transient conditions

Successful tests performedwithin FP5projectsWithin the FP5 projects, the laboratories

helped to verify new technological approachesconcerning the systems technology required

to handle the distribution grid under the new

conditions. The control technology of single

units, as well as the application of adapted

grid control and energy management algo-

rithms, were successfully tested. Further-

more, possibilities to improve power quality

by means of inverter-coupled DER units were

developed and tested extensively in partici-

pating FP5 laboratories (see Figure 4.3).

The applicability of the developed controls

for reactive power management and harmonic

suppression was demonstrated.

inbrief

Figure 4.3: Within the DG-FACTS project,

power quality measurements were performed


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23

Laboratory activities and pre-standardisation

International co-operation

The opportunity for close international co-operation

between European DER laboratories at an early stage

will help to achieve a common understanding of the

standardisation requirements for an efficient future

power supplys systems technology.

An international exchange with other laboratories

was initiated in FP5. As a first step, an information

exchange has been started between US laboratories

(EPRI-PEAC, NREL, DUA) and Japanese laboratories

(METI, AIST, JET).

Establishment of a European DERlaboratory Network of Excellence

A network of high-quality European DER laboratories

has been set up within the FP5 IRED cluster.

In FP6, this network has been extended in the frame-

work of a durable European Network of Excellence

(NoE) entitled DER-Lab, which brings together a

group of11 organisations for the development of gridrequirements and certification procedures for DER

components.

DER-Lab will act as a platform for the exchange of the

current state of knowledge between the different Eu-

ropean institutes and other groups. The scattered, but

high-quality research and test facilities from the differ-

ent institutions will be combined to produce significant

benefits for the European research infrastructure and

the industry. DER-Lab will contribute to the develop-

ment of new concepts for the control and supervision

of electricity supply and distribution and will bundle,

at European level, specific aspects concerning the in-

tegration of DG and RES technologies.

The results of the FP5 IRED cluster, followed by the

output of the DER-Lab network will make significant

contributions to European standardisation activi-

ties and will contribute to the harmonisation of the

different national standards.

Figure 4.4 : Microgrids test facility at theNational Technical University of Athens


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Pilotinstallation

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andfieldtest

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24

25

Pilot installations and field tests

Pilot installations

and field tests

The integration approach:Intelligent Management ofRenewable Energies andDistributed Generation inLow Voltage Grids

Monitoring results of selected FP5 projects in grid seg-

ments showed that the main challenge for keeping

power quality stable in urban residential and commer-

cial grids lies in the adequate short circuit current and

by avoiding exceeding the voltage band. For example,

Photovoltaic (PV) systems connected to a residential

grid segment with evening peak loads may exceed the

allowed voltage band at a time with high-energy out-

put, e.g. on sunny days at noon, coinciding with low

load when nobody uses electrical devices. In such cas-

es, present systems are designed to disconnect auto-

matically, which leads to the non-optimal operation of

the Photovoltaic (PV) system. Without communication,small distributed generators are unable to contribute to

improving power quality in the grid or to optimising en-

ergy flow, e.g. through peak shaving.

Most privately owned small generators in Germany are

monitored manually by the individual owner. Data trans-

fer to the distribution system operator occurs only once

a year for billing or in case of problems. As a result, the

distribution system operator is blind to the real-time

energy contribution from distributed generators.

A relevant Spanish case study in FP5 projects showed

that the main challenge lies in connecting distributed

generators in remote areas with weak grids. In these

grids, power quality and reliability can be improved by

an integrated approach, i.e. by intelligent management

of generators. Within DISPOWER, the experimental

Technology Demonstration Centre site at San Agustin

del Guadalix was set up to monitor and control impacts

of distributed generation for power quality improve-

ments. The site serves as a multiplier for Spanish energy

experts. Concrete results are currently being evaluated.

In Italy, to date there have been no real grid segments

with high penetration of renewable energies. However,

within FP5, the Italian research centre CESI has expand-ed its experimental facility to monitor and control im-

pact of distributed generation on the Italian grid, where

about 30 million high-end electronic meters are cur-

rently being introduced over the next few years. This will

pave the way for close monitoring and control of a very

large number of distributed generators in Italy.

Pilot case study of DISPOWER:the virtual power plant settlementin Stutensee, Germany

In Stutensee (near Mannheim, Germany), around

400 people live in 100 apartments and row houses.

The electricity grids that serve European consumers

today have evolved over more than a hundred years.

They have been built up to perform efficiently and

effectively but have now significant new challenges

in parallel with major technical breakthroughs. This

calls for fresh thinking to take advantage of new tech-

nologies and the changing business frameworks.

The increasing penetration of RES and other dis-

tributed sources in the energy supply in low-volt-

age grids at national, regional and local level leads

to numerous technical challenges, that require a

European approach, which includes:

supplying European citizens with low-cost, sus-

tainable and reliable electric power; and

contributing to limiting carbon dioxide emissions

and fossil fuel dependency by accommodating re-newable sources.

To cope with this, European pilot installations and

field tests in FP5 research projects have been carried

out to analyse real impacts of connected generators

towards monitoring power quality, safety and reli-

ability in integrated concepts under development:

virtual power plants, microgrids and active networks.


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The former energy system for a residential settlement

has been converted to a small virtual power plant. The

generation units include: a co-generation plant (gas

driven Otto motor, 28 kW) with heat storage (Figure

5.1 ); several Photovoltaic (PV) systems amounting

around 30 kWp (Figure 5.2 ); and a battery system

(100 kW/h), acting both as supplier and load.

These components are successfully monitored re-

motely and controlled via the newly developed energy

management system. The results are as follows:

Power quality: The operation strategy successfullyavoids exceeding the voltage band by intelligent

load management. In case of high energy yield of the

Photovoltaic (PV) system, the battery acts as a load

and reduces the voltage level. Thus, the Photovoltaic

(PV) system can feed in despite a normally full grid,

i.e. a high voltage level.

Additional connection of distributed components.

In a second experiment, the battery acts as a second

and third Photovoltaic (PV) system. It feeds in with

the same power/double power as the Photovoltaic(PV) system. The result is the validation of grid cal-

culations for the impact of two additional 30 kW

Photovoltaic (PV) systems.

Finally, the co-generation unit was complemented by

heat storage, which gives more flexibility for the op-

eration time according to electricity needs. For this

experiment, the co-generation unit generates elec-

tricity at high tariff times. In addition, the battery

feeds in if there is still demand to be covered. The

Photovoltaic (PV) system always operates according

to the irradiation and is not actively controlled.

Figure 5.1: A view of the CHP System and heatstorage at Stutensee, Germany.

Figure 5.2: Partial view of the 30kWp photovoltaicSystem installed in Stutensee, Germany.

Within the pilot installations in FP5, the most

relevant results on the impact of distributed

generators on power quality and safety are the

follows:

The impact of distributed generators de-

pends on the grid structure as well as on the

load profile and generation profile over time.

For safety reasons, grid operators must

know the exact feed-in points of distributed

components during grid maintenance.So far, ICTs are hardly ever applied to small

distributed generators. However, they are

very important for the efficient operation of

many distributed components in low-voltage

grids with real-time information on the grid

status.

The challenge of future projects will be to

reduce the cost of monitoring devices and

ICTs for an improved infrastructure.

During FP5, experimental installation and

monitoring with high-end electronic meters

has been in progress in a few pilot installa-

tions, aiming at the introduction of flexible

tariffs and contract management. Citizens

satisfaction and behaviour will drive the

next steps in this field.

inbrief


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27

Pilot installations and field tests

Safety. Members of the grid operation staff are in-

formed about exact feed-in points and they can

monitor the real-time grid status and operate the

components via the internet at any time.

Information and Communication Technology. Be-

fore DISPOWER project, the DG components were

equipped with local analogue displays for monitor-

ing without remote access. In a first step, the team

equipped the Photovoltaic (PV) system, the co-gen-

eration unit, the battery, distribution boxes and the

transformer with measuring devices for remote real-

time monitoring. The second step was to develop andinstall interface boxes for each component. They en-

able individual standard DG and RES to communicate

with standard bus systems. The third step was the in-

terconnection of all elements by developing and im-

plementing the central control unit for the new power

quality and energy management system. The newly

established virtual power plant is accessed via the

internet on a protected website.

Loads in the apartments and rows of houses are ac-

cessible by an installation bus. The communicationfor local load dispatching is currently being activated

in selected houses in a follow-up project.

Economic Aspects: The energy management fore-

casts the demand and expected generation and,

thus, optimises energy flow based on criteria such

as minimising the use of high-tariff electricity and

shaving peak loads.

In addition, remote monitoring of the current grid

status has already led to cost savings and optimisedoperation and maintenance of distributed genera-

tors. Failures of the components are repaired more

efficiently and faster than before, resulting in cost

savings and reduced down times compared to the

situation before DISPOWER. As for the co-genera-

tion unit, the newly introduced operation schedule

reduces maintenance cost due to fewer starts and

stops. Private owners of Photovoltaic (PV) systems

monitor their own systems and are in close contact

with the distribution system operator. Failures are

detected and repaired in adequate time.

Social acceptability aspects: Experiences with

customers in this settlement show that owners of

small distributed components are willing to co-op-

erate with the distribution system operator both in

electricity generation and in consumption, if they

see an economic benefit even a small one for

themselves and understand that they can contribute

to improving the environment.

Figure5.3: In this settlement, 22 families participatedin the experiment washing with the sun. Theyreceived a message via mobile phone or e-mail thatthey should use their washing machine within a specified period of time when the team expected

high energy yield from the Photovoltaic (PV) systems.As a result, the families reacted very well. In a nextstep, this reaction will be supported by intelligentcontrol devices.

inbrief

DISPOWER results in this pilot installation

have shown that, with intelligent management,distributed generation can be integrated into

the grid successfully and can improve power

quality as well as economic operation of the

settlements energy supply.

The settlement is well prepared for further ex-

periments for the high penetration of renewable

energies and distributed generation both from

the socio-economic and technical aspects.

The next challenge will be to reduce the cost

of the ICT and energy management system in

order to make it available for large-scale use.


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S

ocio-economic

issue

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Socio-economic issues

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29

Socio-economic issuesSocio-economic research projects within FP5 were di-

rected at a further increase of the DER share in an eco-

nomic efficient manner in the medium and long term.

Thus, they address topics like optimising the role of

support schemes and improving network regulation

and the changing roles and business of relevant mar-

ket players, such as DER and network operators, in the

electricity market.

Socio-economic DER researchin FP5 projects

The main consideration of the SUSTELNET project was

that the economic values DER and RES generated for

the electricity system are insufficiently recognised

and incorrectly valued and allocated towards differ-

ent market players. Although support schemes are

often applied in EU Member States to overcome this

barrier, in the long run this will result in economically

inefficient solutions and will keep DER and RES from

becoming mature power generation sources. This sit-

uation is illustrated in Figure 6.1. The production of

DER power has a certain cost price usually well above

the market price.

As DER brings a number of (energy and environmental)

benefits to society, DER is supported through a (guar-

anteed) price that is above cost price level. The blue

bar shows the cost and the red bar a regulated feed-intariff. In an alternative (market-based) support system,

the support for DER is additional (green) to the com-

modity price (orange). This additional support should

only be given for: (i) compensation for external effects,

(ii) support for the introduction of new technologies,

and (iii) achieving specific policy objectives such as

sustainability goals. Electricity network regulation

should ensure that DER and RES are compensated for

electricity system benefits (the yellow bar), lowering

the level of external support required. Such electricity

system benefits consist of, for example, distribution ca-

pacity cost deferral, the provision of ancillary services

or reduction of line losses.

The effective integration of Distributed Energy Re-

sources (DER) into electricity supply is only secured

if an optimal combination of technical, legal and

economic requirements is fulfilled. The technical

prerequisites of the optimal integration of DER rely

on the availability of network capacity, load balanc-

ing conditions and the mix of the controllable and

uncontrollable DER share. Legal conditions are vital

as they include network regulation aimed at DER op-

erators and distribution system operators (DSO). This

includes the unbundling of distribution and trade of

electricity, the adoption of incentive mechanisms for

DSOs, and the regulation of third party access and

network connection charges. Last but not least, fulfil-

ment of correct financial, commercial and economic

requirements to DSOs and DER operators need to be

in place, including DER access to the power market,

the type & level of network connection charges, andother anticipated costs & benefits for the network and

DER operators.

Most of the barriers for further increase of the DER share

are caused by regulatory regimes that hardly recognise

the positive values of DER to power or grid services

and improvement of the security of supply. It is there-

fore essential that future energy policies acknowledge

and value the qualities of DER for the electricity system

and for society as a whole. Consequently important is

to reconcile two key policy objectives of the EU, namely sustainability (by increasing shares of DER and RES)

and improving power market competitiveness (by using

market mechanisms as policy instruments). So increas-

ing the share of DER in the electricity supply should also

support the economic efficiency of the system as much

as possible, including all environmental and network

related externalities. For that purpose it is necessary

that future power systems should be designed towards

a level playing field for all market actors, meaning equal

opportunities for both centralised and distributed gen-eration. Therefore, both the energy and environmental

values of DER should be better acknowledged and val-

ued in future power markets.


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In the medium- to long-term future (2010-2020 ), the

costs for DER will decrease as the result of technical

developments. Support is only justified to compen-

sate for external effects. In the new regulatory frame-

work it will be possible to improve the mechanisms to

compensate for DER electricity system benefits. The

compensations from the electricity system will, in rela-

tive and absolute terms, become more important for

the economics of DER.

The SUSTELNET project developed a regulatory road-

map that leads to the adoption of appropriate mecha-

nisms for increasing the integration of DER in Europe

in an economically optimal way. Therefore, criteria fora regulatory framework for future electricity systems

were identified for individual Member States for the

medium to long term, including:

Guidelines for allocation of benefits and costs of

DER

Connection charges and use-of-system charges for

DER operators

Incentivisation mechanisms for DSOs, motivating

them to connect DER to the grid and taking DER intoaccount in future network planning.

Based on these criteria, regulatory roadmaps for nine

countries1 were developed. These included sets of

measures to be taken in different regulatory periods

up to the year 2020. The work on the national regula-

tory roadmaps eventually led to a set of recommen-

dations for a common European regulatory policy on

distributed generation. In addition, the SUSTELNET

project brought a large number of stakeholders to-

gether, such as electricity regulators, policy-makers,

DSOs and supply companies, as well as representa-

tives from other relevant institutions to debate the cri-

teria for an optimal regulatory framework.

Results of the DISPOWER project have contributed

to redefining the role of the different energy system

stakeholders in a changed future electricity market en-vironment with a growing share of DER. To cope with

these integration problems and, at the same time, use

the benefits of DER to the maximum, several alterna-

tive network concepts, such as the Active Networks

and Micro-grids concept have been analysed. Such

concepts require special network technologies and,

within DISPOWER, the socio-economic impact of these

technical options in current liberalised electricity mar-

kets was studied. An inventory of technologies improv-

ing the access of DER was made with an assessment

tool (illustrated in Figure 6.2), showing the roles and

interactions between the stakeholders and energy

markets, in order to qualitatively answer the question:

which party will invest in such a technology, especially

Cost

Today Future (2010-2020)

Regulatedfeed-in tariff

Marked basedpricing

Compensation

for electricitysystem benefits

Support (e.g. green certificates) environmental benefits sustainability goals technology support

Electricitysystem benefitsincrease due tonetwork innovates

Lower supportonly for remainingexternalities

Higher commodityprice because ofinternalisationof CO2-emissioncosts throughemission tradingsystem

Commodityprice

Cost Market basedpricing

Figure 6.1: DER integration economics

1 The nine countries involved in SUSTELNET are: Denmark, Germany, Italy, the Netherlands, United Kingdom, Czech Republic, Poland,

Hungary and Slovakia.


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30

31

Socio-economic issues

when part of the benefits will accrue to a third party?

Investments in technologies such as power storage

(shown in Figure 6.2 ) have the potential to improve

the integration of DER into power networks and opti-

mise power output, producing only when the demandis highest, and to decrease balancing costs as the

technology makes DER more controllable. Benefits of

these technologies do not only accrue to the actors in-

vesting, so the mechanisms for the allocation of costs

and benefits have to be identified. Follow-up research

projects within the FP6 will quantify these benefits and

costs and identify the regulatory constraints that limit

a flexible allocation of costs and benefits between

network actors.

Today, the increasing share of distributed generationmay negatively affect the business of DSOs, because

DER units are generally located closer to demand than

centralised generation. Decreasing revenues for DSOs,

as less transport is needed, and other costs push DSOs

to change their business focus towards other revenue

sources. As the activities of the DSO have a monopoly

character, new regulation can affect the business of

the DSO and motivate it to facilitate DER in its network

system.

However, unlike DSOs, suppliers act in a market that is

exposed to competition and is not restricted by regula-

tion. A new business concept needs to be designed to

exploit opportunities for and promote the penetration

of DER, for example by operating a large number of

small electricity generators in the same way as a large

power plant, a concept often referred to as a large

scale virtual power plant, to be developed in the FP6

project FENIX.

Finally, the FP5 project ENIRDG-net completed the

assessment and overview of progress in EU Member

States as regards policy and regulation for DER in-

tegration. Through a benchmark study, a systematic

comparison has been made of different DER support

schemes and distribution network regulation in all EU

Member States. The benchmark study showed that inmany EU Member States the actual regulatory frame-

work and policy support systems did not match the

level of DER penetration needed to meet the long-

term targets. Policies towards DER are still mainly

aimed at removing short-term barriers, increasing the

production share of RES, thereby ignoring the long-

term economic benefits and efficiency goals for the

power system.

CommodityPhysical

Consumer

BalancingMarket

Energysupplier

DERoperator

Storage

DSO

TSO

Ancillaryservicesmarket

Largepower

producer

Figure 6.2: DISPOWER assessment tool

inbriefFP5 projects have demonstrated that:

A growing share of DER in the electricity sup-

ply system will require the establishment of

a level playing field, creating equal opportu-

nities for both centralised and decentralised

power generation. Reaching this level playing

field requires the following steps:

Promote DER on market-based principles,

combining sustainability with economicefficiency. Examples are the use of price

premiums (on top of market prices) or green

certificates.

Ensure network and electricity market ac-

cess for all types of generation, including

the access of DER to ancillary services and

balancing markets, ensuring valuation of

DER costs and benefits.

Include innovative approaches in network

management and regulation to motivate

DSOs to facilitate a larger share of DER into

electricity networks.


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Further RTD activities towards the Smart Power Networks

The detailed research topics for the EUs FP7 will be

presented in future work programmes, to be published

after the formal adoption by the Council and the Eu-

ropean Parliament of the Framework Programme and

correlated legislation.

These detailed research topics will be defined on the

basis of several inputs, including: a) political priorities

in the energy area, b) results and lessons learned by

previous and current EU projects, and c) other stake-

holders inputs, including the Strategic Research

Agenda produced by the recently launched Technol-

ogy Platform on Future Electricity Networks (see box).

Nevertheless, some preliminary indications have al-

ready emerged, and it can be expected that future re-

search topics will be based on the categories described

hereafter:

Intelligent electricity networks. RTD should coverthe development of new concepts, system archi-

tectures and a regulatory framework for control,

supervision and operation of electricity networks,

so as to transform the grid into an interactive (cus-

tomers/operators) service network, while max-

imising reliability, power quality, efficiency and

security. These systems should be based on ap-

plications of distributed intelligent, plug and play,

e-trading, power-line communications, etc.

Efficient distributed energy generation technolo-gies. RTD programmes should reinforce and balance

efforts made towards the development of Distrib-

uted Generation technologies, including fuel cells,

micro-turbines, photovoltaic systems, reciprocating

engines, hybrid power systems, thermally activated

technologies, etc.

Demand-side management and demand-response

resource techniques. These systems allow custom-

ers to shift their power consumption towards off-peak

periods and to reduce their total or peak demand.

RTD should cover the development of customer-side

energy management systems capable of managing

local power consumption and re-dispatching local

loads, so as to take full advantage of the real-time

energy price and network status information.

New energy services. RTD is needed for the devel-

opment of new energy services, such as remote me-

tering, remote control of appliances, the real-time

monitoring of homes to enable better care for theelderly and other vulnerable groups, building stock

performance rating, and so on.

Improving the efficiency of power transmission and

distribution. To minimise these losses (around 7% in

OECD countries), RTD is needed in areas like HVDC,

advanced high-temperature cables, high-efficiency

transformers, etc.

Enabling technologies. To build the new type of

grid structure it is essential to bring to the market

low-cost technologies which can bridge between

local networks and create a modern pan-European

network with the capability of integrating signifi-

cant DER. Key enabling technologies will facilitate

Further RTD activities towards

the Smart Power Networks

inbrief

Within the Energy Theme, the Commission

proposal for the Seventh Framework

Programme (COM(2005) 119 final) confirms

power networks and distributed generation

as a priority for future research activities

requiring a European approach. The research

area, referred to as Smart Energy Networksin the Commission proposal, is the natural

evolution of past activities on Integration.

The objective of the Smart Energy Networks

area is to increase the efficiency, safety and

reliability of the European electricity and gas

system and networks, e.g. by transforming

the current electricity grids into an interactive

(customers/operators) service network, and to

remove the technical obstacles to the large-

scale deployment and effective integration of

distributed and renewable energy sources.


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this development. RTD should focus on solutions/

applications of key enabling technologies, such as

High Temperature Superconducting Systems and

Devices, Power Electronics Converters, Power Line

Communication Technologies, etc.

Stationary energy storage. Energy storage has a

very important strategic value in future electric-

ity networks. It can allow the reduction of spinning

reserves to meet peak power demands, by storing

electricity, heat and cold, which is produced at times

of low demand and low generation, and releasing

it when energy is most needed and expensive. RTDshould focus on energy-storage technologies includ-

ing advance solutions on battery, flywheels, super-

conducting magnetic energy storage, compressed

air energy storage, and super capacitors.

Technology Platform SmartGrid: Electricity Networks of the Future

The potential for technology platforms to address major economic, technological or societal challengesand to stimulate more effective and efficient RTD, especially in the private sector, is highlighted in the

Commission Communication Investing in Research: an Action Plan for Europe, set up in response to

the 2002 Barcelona Councils call to boost research and technological development in Europe.

In collaboration with industrial stakeholders and the research community, the Commission has

facilitated the setting up of a Technology Platform for the Electricity Networksof the Future. The first

Advisory Council of the Platform was nominated in May2005 and a Member States Mirror Group in

November2005.

The first deliverable from the Platform is the publication of a Vision Paper by December2005 and of a

Strategic Research Agenda in spring 2006.

Further information on this Technology Platform can be found at:

http://europa.eu.int/comm/research/energy


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Further RTD activities towards the Smart Power Networks


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List of FP5 Projects

Integration of Renewable Energy Sources and

Distributed Generation into the European electricity gridFP5 RTD projects

DISTRIBUTED GENERATION

ERK5-CT-1999-00019 MORE CARE More advanced control advice for secure operation of isolated powersystems with increased renewable energy penetration and storage

ENK5-CT-2000-80135PreHyNet Preparation of a European Network for renewable energy hybrid powersystems

ENK5-CT-2001-00522DISPOWER Distributed Generation with high penetration of renewable energysources

ENK5-CT-2001-00577SUSTELNET Policy and Regulatory Roadmaps for the Integration of DistributedGeneration and the Development of Sustainable Electricity Networks

ENK5-CT-2001-20528ENIRDG net European Network for Integration of Renewable Sources andDistributed Generation

ENK5-CT-2002-00610 MICROGRIDS Large scale integration of micro-generation to low voltage grids

ENK5-CT-2002-00658 DGFACTS Improvement of the Quality of Supply in Distributed Generation Networksthrough the Integrated Application of Power Electronic Techniques

ENK5-CT-2002-00673 CRISP Distributed intelligence in critical infrastructures for sustainable power

ELECTRICITY TRANSMISSION

ENK6-CT-2000-00064 OMASES Open Market Access and SEcurity assessment System

ENK6-CT-2000-00076EuroMVCable Investigation of European Specification for Medium Voltage PowerCable

ENK6-CT-2000-00087 ALTERNATIVE SF6 Development of a SF6 alternative for electrical equipment

ENK6-CT-2002-00670HVDC Benefits of Hvdc Links in the European Power Electrical System and ImprovedHvdc Technology

STORAGE

ENK6-CT-1999-00013 PAMLiB New Materials for Li-Ion Batteries with Reduced Cost and Improved Safety

ENK6-CT-2000-00069ACTUS Specific Accelerated Test Procedure for Photovoltaic (PV) Batteries with EasyTransfer to Various Kinds of Systems and for Quality Control

ENK6-CT-2000-00078UHP VRLA BATTERY Ultra High Power Valve Regulated Lead Acid (vrla) Batteries forUps Applications

ENK6-CT-2000-00082 NEGELiA New Generation of Li-ion Accumulators

ENK6-CT-2000-00091 ABLE Advanced Battery for Low Cost Renewable Energy


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ENK6-CT-2000-00102PROBATT Advanced Processes and Technologies for Cost Effective Manufacturing ofHighly Efficient Batteries for Fuel Saving Cars

ENK6-CT-2000-00109STAR-BMS Evaluation of Standard Test Procedures for Battery ManagementComponents

ENK6-CT-2000-00326MULTIBAT Development of Multi-battery Management System for RenewableEnergies

ENK5-CT-2000-20336INVESTIRE NETWORK Investigation on Storage Technologies for IntermittentRenewable Energies: Evaluation and recommended R&D strategy

ENK6-CT-2001-80576BENCHMARKING Development of Test Procedures for Benchmarking Components inRES, in Particular Energy Storage Systems

ENK6-CT-2002-00601LION HEART Lithium ION Battery Hybrid Electrical Application Research andTechnology

ENK6-CT-2002-00626 LIBERAL Lithium Battery Evaluation and Research - Accelerated Life test direction

ENK6-CT-2002-00611 AA-CAES Advanced adiabatic compressed air energy storage

ENK6-CT-2002-00636 CAMELiA CAlendar life MastEring of Li-ION Accumulator

ENK6-CT-2002-00661REVCELL Autonomous Energy Supply System with Reversible Fuel Cell as Long-termStorage for Photovoltaic (PV) Stand-alone Systems and Uninterruptible Power Supplies

HIGH TEMPERATURE SUPERCONDUCTORS

ENK6-CT-2000-00077ACROPOLIS Low AC loss elementary and assembled BSCCO superconductors for

application in devices of energy technique

ENK6-CT-2002-00624HOTSMES Superconducting Magnetic Energy Storage based on High TransitionTemperature Superconducting Materials for high quality power

ENK6-CT-2002-30025HIPOLITY Innovative new high temperature superconducting magnetic energystorage system (SMES) for high efficient power quality

ENK6-CT-2002-80658 ASTRA Applied Superconductivity Training and Research Advanced Centre

ENK6-CT-2002-80668ASSPECT Centre of Excellence for the Application of Superconducting and PlasmaTechnologies in Power Engineering

ENK6-CT-2002-80669PELINCEC Centre of Excellence in Power Electronics and Intelligent Control for

Energy Conservation

Other INTEGRATION PROJECTS

ERK5-CT-1999-00001BIODISH Development of a ceramic hybrid receiver for biogas-fired Dish-Stirling-Systems for electric power supply

ERK5-CT-1999-00008

EXPERT SYSTEM LSSH Development of an expert system to analyse and optimisethe technical and economic feasibility and performance of hybrid large-scale solarheating (LSSH) systems

ERK5-CT-1999-00013 HYBRIX Plug and Play technology for hybrid power supplies

ERK5-CT-1999-00016 FIRMWIND Towards high penetration and firm power from wind energy

ERK5-CT-1999-00017Photovoltaic (PV)FC-SYS Photovoltaic fuel-cell hybrid system for electricity and heatproduction for remote sites

ERK5-CT-1999-00018 FIRST Fuel cell innovative remote energy system for Telecom


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ERK5-CT-1999-00022MINI-GRID-KIT Mini-grid construction kit for rural electrification with renewableenergies

ERK5-CT-1999-80002AMIREES Accompanying Measure for the Integration of Renewable Energies into theEnergy Systems

ERK6-CT-2000-00092 DH DSM Demand-side management of the district heating systems

ENK5-CT-2000-00307MED2010 Large-scale integration of Photovoltaic (PV) and wind power inMediterranean countries

ENK5-CT-2000-00332HELIOSAT-3 Energy-Specific Solar Radiation Data from Meteosat Second Generation(MSG)

ENK5-CT-2000-00345AFRODITE Advanced Faade and Roof Elements Key to Large-Scale BuildingIntegration of Photovoltaic Energy

ERK5-CT-2000-80124 REMAC 2000 Renewable Energy Market Accelerator 2000

ENK6-CT-2001-00507 PAMELA Phase Change Material Slurries and their Commercial Applications

ENK5-CT-2001-00527REGENERATE Theoretical and Experimental study for the development of efficientand economic Stirling regenerators

ENK5-CT-2001-00536RES2H2 Cluster Pilot Project for the Integration of RES into European Energy sectorsusing H2.

ENK5-CT-2002-00658DGFACTS Improvement of the Quality of Supply in Distributed Generation Networksthrough the Integrated Application of Power Electronic Techniques

ENK5-CT-2002-80651 ERA_ISLA New and renewable energies, electricity and water in outermost regions


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European Commission

EUR 21970 Towards Smart Power Networks Lessons learned from European research FP5 projects

Luxembourg: Office for Official Publications of the European Communities

2005 39 pp. 21.0 x 29.7 cm

ISBN 92-79-00554-5


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KI-NA-21970-EN-C

The electricity grids that serve European consumers today have evolved over more than a hundred years. They

have been built up to perform efficiently and effectively. But now they face new challenges in parallel with major

technological breakthroughs. This calls for fresh thinking to take advantage of new technologies and changing

business frameworks.

The increasing penetration of renewable energy and other distributed sources in the energy supply plays a key

role in addressing important needs, such as: supplying the citizens with low-cost, sustainable and reliable electric

power; and contributing to limiting carbon dioxide emissions and fossil fuel dependency by accommodating

renewable distributed sources.

This brochure describes the lessons learned in around 50 research projects under the Target Action Integration

of renewable energies and distributed generation into European electricity networks, in the EUs Fifth Framework

Programme. These projects are considered as the starting point for the development of the first generation of

components and new architectures for interactive electricity grids: the smart power grids. This intelligent grid

system will contribute to the deployment of new and cleaner technologies. It would also allow the electricity

consumers to choose their electricity supply according to their needs and preferences.

Activities in this area are continuing under FP6 with very promising large Integrated Projects and Networks of

Excellence in which more and more utilities and other stakeholders in the electricity sector, usually competitors

in the international market, are showing their readiness to share know-how and efforts. In the coming years,

research efforts should be intensified and coordinated in the EU to achieve validated technologies which hopefully

will provide innovative win-win solutions that were unimaginable just a

Towards Smart Power En

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