2011 10-05 smart grids as an opportunity for finland-jki


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Smart grids as an opportunity for Finland and Environment

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2011 10-05 smart grids as an opportunity for finland-jki

  1. 1. Smart grids as an opportunity forFinland and environment Dr. Johanna Kirkinen, Energy and Climate Change Lead Energy Programme, Sitra5/10/2011 ECT Forum, The Finnish Society of Electronics Engineers
  2. 2. Energy use and emissions of communities peak Energy Programme 20082012 and decline – a systemic change in energy production and use in Energy Efficient Built Environment buildings • Energy efficiency into town planning • Energy efficient and sustainable new buildings • New operation models for building renovation Growing well-being and Finns become New Business from new business Energy-concious the Energy Revolution through diminishing• Citizens join the energy bee • AW Energy Ltd energy use of• New operation models • Neapo Ltd individuals and communities for energy guidance • Viola Systems Ltd • Norrhydro Ltd • Savo-Solar Ltd 5/10/2011 © Sitra
  3. 3. Enormous greenhouse gas reduction potential in built environment Energy end-use Greenhouse gas emissions 2007 Total 307 TWh Total 78 Mt CO2-ekv Others Others 4% 13 % Buildings 32 % Buildings 38 %Industry 37 % Industry 30 % Construction 6% Construction Transportation Transportation 4% 19 % 17 % Built environment: - Share of energy end-use 42 % - Produce 38 % of carbon emissions in Finland 5/10/2011 © Sitra
  4. 4. EU goals in environment and energy• Greenhouse gas emission goals by 2020 - 20 % from 1990 level - 30 % if other (industrial) countries take similar goals - (Finland 80 % by 2050)• In Emission Trading (ET) a common goal, in non ET MS-goals by 2050 - Industrial countries 60 - 80 %:n reduction until 2050• Energy Efficiency: - 20 % in 2020 (compared to baseline in 2020)• Renewable Energy Sources (RES) - 20 % share of final energy cons. 2020 (at the moment 7 %) - MS goals between 10 % … 48 % (Finland 38 %) - Transport fuels RES share 10 % in 2020• Structural change in energy system needed: - Low carbon energy production - Efficient use of energy industry, transport, and buildings - Smart integration of production, use, and consumers 5/10/2011 © Sitra
  5. 5. About smart grids 05/10/2011
  6. 6. 05/10/2011 © Sitra
  7. 7. From structures of industrialisation to focus on peopleand solutions TO FRONT FROM BOTTOM © Sitra
  8. 8. Consumer perspectiveSmart Grid Benefits (WEC and Accenture 2010)• Greater choice between energy providers, products and services• Greater transparency and control over energy consumption - More transparent and frequent billing information• Opportunity to see environmental benefits on a household/business basis• Access to clean technologies, such as electric vehicles and micro-generation (heat pumps and smart appliances)• Provision of a more reliable service with potential energy bill and carbon savingsConsumer awareness and participation (JRC 2011) - Consumers’ awareness and participation is crucial for the success of Smart Grid projects. - Most projects highlight the need to involve consumers at the early stages of project development, to give consumers the freedom to choose their level of involvement and to ensure data privacy and protection. - It is imperative to ensure that consumers have trust in and understanding of the whole Smart Grid process and receive clear tangible benefits. 05/10/2011 © Sitra
  9. 9. Local energy revolution?? 05/10/2011
  10. 10. Local energy• Challenge: how to increase the production of renewable energy or the use of energy saving technologies?• “Local energy” refers to energy saved by a user or users collectively or locally produced renewable energy.• Possibilities - Increase local economy - Increase households’ energy security - Creates communal spirit - Decreases emissions• Challenges - No service provides (yet!!) - Costs - Not so many cases (yet!!) - Standardization and legal issues 05/10/2011 © Sitra
  11. 11. Electricity market Client -Electricity supply contract with local electricity supplier • Current situation -Electricity contract with the electricity producing company Electricity sellerElectricity distribution company -Sells electricity to the-Owns the dictribution network consumers-Owns the meters -Acts in open market-Charges distribution costs -Charges the costs of-Pricing is regulated by Energy electricity productionMarket Authority -No regulated pricing 05/10/2011 © Sitra
  12. 12. Client Electricity market -Electricity supply contract with local electricity supplier -Electricity contract with the • In the future??? electricity producing company -Provides self-produced Service provider electricity to the grid - Offers services related to Electricity seller intelligent grid -Sells electricity to the consumers -Acts in open marketElectricity distribution company-Owns the dictribution network -Charges the costs of-Owns the meters electricity production-Charges distribution costs -No regulated pricing-Pricing is regulated by Energy -New services in theMarket Authority markets??-Provides new services?? 05/10/2011 © Sitra
  13. 13. Energy price split between value chain players 05/10/2011 © Sitra
  14. 14. Local energy services, anyone?” survey1. an online service that would allow residents to search for information, compare various solutions or create a list of suitable choices by entering basic background information.2. a service that collects information from different sources, because the sector is developing rapidly and has many service providers -> would make it easier to find impartial information and make comparisons.3. turnkey services that would include design, permits and installation as well as system servicing and maintenance. 05/10/2011 © Sitra
  15. 15. Other project examples 05/10/2011
  16. 16. Finnish smart grid offering map available here >> 05/10/2011 © Sitra
  17. 17. Distributed methods of energyproductionPiirrokset: Leena Ahveninen © Sitra
  18. 18. SOLAR DECATHLON EUROPE 2010SDE 2010 TEAM FINLAND • A competition for universities to design and build a prototype solar powered energy self-sufficient house in Spain in May-June 2010. • Luukku house by Aalto University - Wooden house - Zero energy - Minimal living unit - Low carbon footprint - Challenges of Northern climate - Promote the best possible Finnish products • Powered by Sitra www.sdfinland.com 5/10/2011 © Sitra
  19. 19. Low2NoTowards Sustainable Urban Living
  20. 20. Low carbon lifestylesKey elements:• Increasing community engagement and community awareness• Low carbon food• Low carbon travel• Mixed-use environment• Smart systems and sensoring 28.5.2011 © Sitra
  21. 21. 05/10/2011 © Sitra
  22. 22. How to speed up the development of smart grids?• User-centric approach: increased interest in electricity market opportunities, value added services, flexible demand for energy, lower prices, micro generation opportunities - Innovation enabler - The users deside in the end how ”intelligent” the grid is, not b2b - ”Listen to customers instead of telling them”• Goverment programme - Development of smart grids - Pricing of electricity• Signals from the news… - Germany: Smart grid lab opened at university in Magdeburg - Over EUR 5bn invested in around 219 smart grid projects. By 2020, investment could reach EUR 56bn. - Sweden: Nine of ten Swedes positive to selling surplus electricity (a survey by Fortum ) 05/10/2011 © Sitra
  23. 23. Customer participation, services, pilots… Source: Naps Systems 05/10/2011 © Sitra
  24. 24. More information:Thank you! Dr. Johanna Kirkinen Lead, Energy and Climate Change Energy Programme, Sitra GSM +35840 186 7107 Email johanna.kirkinen@sitra.fi © Sitra