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Smart Grids: Beyond the technical challenges

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  • 1. Smart Grids:Beyond the technical challenges The Future Of Energy Networks: the opportunities ahead for engineering, society and careers. IET Local Network London 17th November 2010 Davy Thielens Senior Consultant KEMA 1
  • 2. A bit about me… Masters degree in Power Engineering With KEMA for over 7 years, 4 in the UK Chairman of the working on future Young Professionals Energy solutions London 2
  • 3. Over 1400 employees worldwide Operating in more than 20 countries UK offices London and Glasgow Turnover €270mCovering the entire energy value chain World class independent laboratory facilities in The Netherlands: High Voltage, High Power & ‘Flex Power’ grid simulation at industrial scale Testing - Operational Services - Consultancy 3
  • 4. Agenda1. Power Sector: a revolution ahead?2. What are Smart Grids?3. How great is the challenge?4. Careers, skills and opportunities5. Transition - Strategic pointers 4
  • 5. Challenges AheadSECURITY OF WORLD SUPPLY POPULATION Rising energy Rising energy demands and demands and new load types Finite hydro- new load types Significant Finite hydro- Significant carbon fuel carbon fuel investment investment stocks needed stocks needed CYBER & SOCIETAL DATA ENERGY SECURITY AWARENESS Customers Customers Power ‘energy Power ‘energy Shortages engagement’ Shortages engagement’ A Changing A Changing REGULATIONRENEWABLE Climate – more Climate – more &GENERATION extreme events extreme events INCENTIVES 5
  • 6. EU/UK drivers for radical changeThe EU’s binding 20-20-20 targetsRequire, by the year 2020:• A 20% cut in greenhouse gas emissions UK government has• A 20% increase in use of renewable energy introduced financial• A 20% cut in energy consumption through incentives such as: improved energy efficiency Renewable Obligation Certificates Feed In Tariffs Renewable Heat Incentives The 20% increase in renewable energy is for ALL energy. Typically this will require 35% of electricity generation from renewables for the UK. 6
  • 7. A New Vision for Energy & Networks…. The Silver Bullet ? The Blue Print ? The ingredients are still being worked 7
  • 8. Evolution or Revolution? 1st Industrial Revolution Steam engines, factories 2nd Industrial Revolution Electricity, mass production 3rd Industrial Revolution ….Smart Grids?Fuel for revolutionsA real concern about the present pathA vision for ‘a better way of doing it’Strong champions; active supportersProfessionalism; persistence 8
  • 9. Agenda1. Power Sector: a revolution ahead?2. What are Smart Grids?3. How great is the challenge?4. Careers, skills and opportunities5. Transition - Strategic pointers 9
  • 10. The Electric and… OFF-SHOREElements EU Supergrid? CENTRALISED INTER- GENERATION CONNECTIONS TRANSMISSION NETWORK DISTRIBUTED smart grids GENERATION DISTRIBUTION NETWORK ELECTRIC METERS & smart metering VEHICLES DISPLAYS RESIDENTIAL SUPPLIER TRANSACTIONSand… DEMANDSTORAGE? ELECTRICAL APPLIANCES CUSTOMER BEHAVIOURS MICRO- ENERGY GENERATION EFFICIENCY HOME AUTOMATION 10
  • 11. But how does it work?: balancing 50 Hz 49 Hz 51 Hz DEMAND GENERATION Note: there is no storage in the grid: generation and demand must be matched in real time. Imbalance results in change in the FREQUENCY of the grid supply.Frequency must be kept within a narrow tolerances (50Hz +/- 10%) or 11 a whole system black out can be triggered.
  • 12. First Challenge: Intermittent generation 50 Hz 49 Hz 51 HzDEMAND GENERATION CHALLENGE Less-predictable generation eg large- scale wind power 12
  • 13. The way forward…..? 13
  • 14. Second Challenge: Large increase in demand AVEVERAGE NETWORK: 1 billion / km / GW 10 year planning permission 50 Hz 49 Hz 51 Hz DEMAND GENERATION Current capacity: 60 GW CHALLENGE New demand: 120 GW Mass roll-out of new demands: EV, heat pumps, … 14
  • 15. The way forward…? 15
  • 16. Solving the challenges? Added storage! But expensive and not 100% efficient….. 50 Hz 49 Hz 51 HzDEMAND GENERATION Demand Response! Make demand flexible E.g. use Electric Vehicle in time & charging the balance the network and generation in amount 16
  • 17. Life isn’t always so Smart 17
  • 18. The great centralised grids of today…are largely ‘one-way’ systems One-way power flows CENTRALISED Remote generation GENERATION Little communications Limited automation TRANSMISSION A mainly passive grid NETWORK Delivering electricity to passive consumers The traditional paradigm: DISTRIBUTION DISTRIBUTION DISTRIBUTION NETWORK NETWORK NETWORK “Generate what is Consumed”RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL DEMAND DEMAND DEMAND DEMAND 18
  • 19. The great centralised grids of today…are largely ‘one-way’ systems One-way power flows CENTRALISED Remote generation GENERATION Little communications Limited automation TRANSMISSION A mainly passive grid NETWORK Delivering electricity to passive consumers The traditional paradigm: DISTRIBUTION DISTRIBUTION DISTRIBUTION NETWORK NETWORK NETWORK “Generate what is Consumed”RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL DEMAND DEMAND DEMAND DEMAND 19
  • 20. The great centralised grids of today… the challenges ahead Less- predictable generation Less- Off-shore and on-shore clean CENTRALISED predictableAgeing networks generation: making connections GENERATION loading and managing variability Customer Real time energy efficiency TRANSMISSION balancing NETWORK Network energy Network losses overloads DISTRIBUTION DISTRIBUTION DISTRIBUTION Raise NETWORK NETWORK NETWORK Two-way power quality of flows supply & resilience RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL Demands AND DEMAND DEMAND DEMAND DEMAND sources Distributed Generation: central & Loss of demand dispersed Heat diversity EV Pumps & charging Air Con Micro- generation 20
  • 21. The great centralised grids of today… the solutions ahead Less- predictable generationSmart metering A new paradigm: & displays Less- “Consume what is predictable Generated” loading Demand CENTRALISED Response GENERATION Real time Power balancing Electronics TRANSMISSIONSmart Vehicle NETWORK Network Charging overloads Intelligent DISTRIBUTION DISTRIBUTION DISTRIBUTION Two-way power networks NETWORK NETWORK NETWORK flows Real time Demands AND ratings sources RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL DEMAND DEMAND DEMAND DEMAND Condition Loss of demand Monitoring diversity Home Smart EV Plus Hearts & automation Charging Minds….. 21
  • 22. Networks for sustainable energy.… the smart grids of tomorrow Less- predictable generationSmart metering Less- The Smart Grid Concept predictable loading Demand Response Real time balancing Demand services NetworkSmart Vehicle overloads Charging Two-way power Intelligent flows networks Demands AND Real time sources Bi-directional power ratings and information flows Loss of demand Distributed diversity intelligence Willing Home Storage Plus Hearts & customers automation Minds….. needed 22
  • 23. PowerMatching City - Full Concept Smart GridSolution in NL (partners: ECN, HUMIQ, RWE/Essent) 23
  • 24. It happening now! 24
  • 25. End User Acceptance – a key objective 25
  • 26. Agenda1. Power Sector: a revolution ahead?2. What are Smart Grids?3. How great is the challenge?4. Careers, skills and opportunities5. Transition - Strategic pointers 26
  • 27. Smart Energy: the Challenges? Five Hazards Ahead Integrating the entire energy chain Technical/Engineering Transaction structures for new services Commercial Systems Needs to accelerate innovationRegulatory Frameworks Innovation may not be in the cultureNetwork Company Inertia The largest single risk? End User Engagement 27
  • 28. Some Barriers to Innovation Deployment a UK/EU view How high is the bar, almost too even for forward- high…. looking companies? Innovation can be a problem for • Inexperience in real traditional network companies: partnerships (in contrast to• There is commonly a lack of processes, ‘supplier’ service relationships) experience and culture • Regulatory incentives• Too few specialist staff with deep system commonly have a short term knowledge focus• Innovation brings complexity; it requires • Innovation has risk; no time for reflective thought that is company takes avoidable risk increasingly rare in today’s business world without reward 28
  • 29. Ofgem Innovation Incentive Following privatisation in 1990, total R&D spend by the electricity distribution companies declined progressively 29
  • 30. Ofgem Innovation Incentive The Innovation Funding Incentive (IFI) has had a sustained effect IFI allows companies to pass through 80% of R&D costs to customers, up to a cap of 0.5% of turnover 30
  • 31. Innovation – doesn’t always succeed Philips Multi Plane Mk I (1904) Philips Multi Plane Mk II (1907) Horatio Philips Perseverance may be needed! EU airline industry now worth €60bn p.a 31
  • 32. Hearts & Minds…CALIFORNIA ENERGY COMMISSION, 2008 proposed ProgrammableCommunicating Thermostats in new State Building Codes. These smartthermostats would enable a demand response capability – but participation bycustomers was voluntary. A great innovation?The reaction in the media?.... “the Big Brother thermostat program…” “a huge leap down the road to serfdom” “an invasion of the sanctity of our homes by state power”What’s going on:- Malicious media ? … or a lack of- Ignorant public ? Wisdom by- Manipulation by vested interests ? the sector? 32
  • 33. Wisdom?“Intelligence is knowing that a tomato is a fruit,Wisdom is knowing not to put it ina fruit salad…” Is about understanding the human dimension Where are the skills to address this ? 33
  • 34. Is new technology a dream that disappoints?Home Energy Management Exclusion of a large group of the population? Note that IT has become a no-go area for Technology Threat many people, especially the older age group Only 28% of over 65s are online in UK, Internet Connection compared to an average of 57% The older age group will be an increasing Increasing challenge proportion in the coming years Those left behind Will be disadvantaged by not participating34
  • 35. Some Pointers to consider for our sector Learn Involve from real wider e- Digital TV From people world Switch Over - an earliest example stages Hide Constant complexity updates don’t strip willAdditional it out confuse Create time and stabilitycare here 35
  • 36. Agenda1. Power Sector: a revolution ahead?2. What are Smart Grids?3. How great is the challenge?4. Careers, skills and opportunities5. Transition - Strategic pointers 36
  • 37. A New Sector AheadCharacteristics Skills….. Capabilities….. Inter-disciplinary Engineering Think from Economics system basics Whole-system Legal/politics Communicate Closer to Social sciences with non- customers Natural sciences specialists Very smart, but Environmental Operate where transparent to the sciences there is users Marketing / uncertainty Merging of communication Persistence & sectors teamwork 37
  • 38. Developing the right skillsFeel out of your depth ?– you’re probably in the right placeHow does it work, why is done that way?- continually seek answers; share what you learnDebate and communicate; build networks– hone your interaction skills throughout your careerIf you have the Vision for a better way….- you’ll need persistence (and you have a responsibility).Sharpen perspectives– engage with professional bodies such as The IET; take and 38 also contribute
  • 39. And remember:there is a skill shortage ahead! • Engineering staff in the UK under 30 proportion fell from 25% in 2008 to 20% in 2010 • Only 5% were women • 37% of companies were struggling to recruit (senior) engineers • Less than 50% believe we have the skill base for a green economy 5th edition – 2010 There will be great 400 companies surveyed opportunities for those who are part of its solution 39
  • 40. Agenda1. Power Sector: a revolution ahead?2. What are Smart Grids?3. How great is the challenge?4. Careers, skills and opportunities5. Transition - Strategic pointers 40
  • 41. Respond to changing expectations Smart Meters of customers and other stakeholders need smart grid capabilityMoving towards Smart grids are not just about distributionsmart grids… Smart grid development cannot simply be ‘switched on’ Recognise that start small: build pace & knowledge Need ‘Smart Grids’ for social It’s more than power is a concept, system equipment: inclusion not a product new policies, processes and tools are needed for operations and forThe philosophy adopted The grid can investment decisionsmust be tailored to the not be put at and a culture that supportscountry context risk! innovation in companies 41
  • 42. In conclusion The Smart Grid Concept • Fundamental changes are ahead, with strong drivers • Innovation will be essential: technical, commercial andBi-directional power socialand information flows • Demand Response has strong potential to contribute to efficiency and security • Nobody should by left behind • Jobs & skills it just gets interesting! 42
  • 43. Smarter Grids:the challenges go far beyond the technology Thank you for your attention Davy Thielens London | United Kingdom T +44 20 3170 8165 Davy.thielens@kema.comwww.kema.com 43