The document discusses smart grids and their role in creating more efficient and reliable electricity systems. It notes that electricity demand is rising significantly globally due to growth in developing countries. Smart grids can help meet this rising demand through improved capacity, reliability, efficiency and sustainability. They allow for higher penetration of renewable energy and demand response. Ongoing smart grid projects in Malta and Stockholm are highlighted which aim to integrate electric vehicles, renewable energy and energy storage among other things. Smart grids are concluded to significantly help mitigate climate change by allowing higher utilization of generation, transmission and distribution assets as well as higher levels of variable renewable energy and demand response.

1. © ABB Group
November 10, 2010 | Slide 1
Smart grids
More efficient and reliable grids
3rd November 2010, Madrid. Inés Romero

2. © ABB Group
November 10, 2010 | Slide 2
Agenda
Drivers and challenges
How future electric systems must perform
Smart grids and applications
Worldwide on-going projects
Conclusions

3. © ABB Group
November 10, 2010 | Slide 3
Today’s energy challenge – growing demand
Electricity demand rising twice as fast
China
105% 195%
India
126% 282%
Europe and
North America
11% 31%
M. East and
Africa
73% 131%
Growth in primary
energy demand
Growth in electricity
demand
IEA forecast
2006-30
South
America
56% 81%

4. © ABB Group
November 10, 2010 | Slide 4
Major challenge: improving reliability
In U.S. the annual cost of system disturbances is an estimated $80 billion*
Commercial ($57 billion), industrial ($20 billion) and residential ($3 billion)
sectors affected
Most cost ($52 billion) due to short momentary interruptions
Poor reliability is a huge economic disadvantage
* Berkley National Laboratory 2005
#disturbance
eventsinUS
Source: FERC 2008

5. © ABB Group
November 10, 2010 | Slide 5
© ABB Group
November 10, 2010 | Slide 5
Two major ways to reduce greenhouse gas emissions
Energy efficiency and renewable energy sources
Energy efficiency and renewable power generation
could provide almost 80 percent of the targeted reduction
AnnualemissionofCO2inGigatons
Source
IEA 2008
550*
policy
scenario
* ppm concentration in the atmosphere
20
25
30
35
40
45
2005 2010 2015 2020 2025 2030
Reference scenario 550 policy scenario 450 policy scenario
450*
policy
scenario
9%
14%
23%
54%
Energy efficiency
Renewables
Carbon capture
and sequestration
Nuclear

6. © ABB Group
November 10, 2010 | Slide 6
© ABB Group
November 10, 2010 | Slide 6
Major challenge: environmental concerns
CO2 is responsible for 80 percent of all greenhouse gas effects
More than 40 percent of CO2 is generated by traditional power plants
Electric power generation is the largest single source CO2 emissions
AnnualemissionofCO2inGigatons Electricity plants
Industry (excl. cement)
Road transport
Residential and service sector
Deforestation
Others
Refineries etc
International transport
10
9
8
7
6
5
4
3
2
1
0
1970 1980 1990 2000
Source: IPCC “Mitigation
of Climate Change”,
Cambridge University
Press, 2007

7. © ABB Group
November 10, 2010 | Slide 7
Agenda
Drivers and challenges
How future electric systems must perform
Smart grids and applications
Worldwide on-going projects
Conclusions

8. © ABB Group
November 10, 2010 | Slide 8
Smart grid value proposition
Four main areas of emphasis
Capacity for increasing demand
Providing the backbone of the future electrical system
Reliability of electricity supply
Upgrades and new installations to meet the future challenges
Efficiency along the value chain
Actions to mitigate climate change
Sustainability by integrating renewable
Regulatory influence and customer behavior are critical

9. © ABB Group
November 10, 2010 | Slide 9
Economic build up of capacity
Capacity
Investment in global grid infrastructure is estimated to total $6 trillion by
20301
Present grids can be refurbished to operate at full capacity without
compromising safety
New installations must provide maximum flow of energy to any location in
the grid
In 2020 the fleet of electric cars could reach 40 million world wide, around 2
percent of the cars on the road by then1
The infrastructure for charging the vehicles has to be built
Fast charging options cannot be provided by the current grid infrastructure
The future electrical system must be used at its full capacity
and must be able to cope with new challenges
Capacity
Reliability
Efficiency
Sustainability
1
Source: IEA

10. © ABB Group
November 10, 2010 | Slide 10
Electrical energy all the time, everywhere
Reliability in Transmission systems
Safe operation with minimum reserves is
the most economic way of operating PS
Systems must be designed for utmost
reliability and maximum power quality
Impact of unavoidable faults must be
limited to local areas
Immediate restoration of full
performance is essential
The future electrical system must provide a completely
reliable energy supply without interruptions
Capacity
Reliability
Efficiency
Sustainability
The European grid covers the whole continent

11. © ABB Group
November 10, 2010 | Slide 11
Electrical energy all the time, everywhere
Reliability in Distribution systems
Distribution grids are pending from a large
scale implementation of technologies to support
remote monitoring and control
automated switching
fast fault location
Resulting in
reduced outage time
increased power quality
improved maintenance
Reliability of power distribution is of prime importance in
future electrical systems
Capacity
Reliability
Efficiency
Sustainability

12. © ABB Group
November 10, 2010 | Slide 12
Power generation and grid coupling
Efficiency
Conversion efficiency of primary energy to
electricity is steadily increasing
Advanced process control adds to the overall
efficiency
Equipment and systems to couple generation to
the grid are becoming more efficient
An improvement of only 1% in efficiency can save
100 million tons of CO2 (emission of 50 M cars1)
Estimates allocate a double digit energy saving
potential in power generation2
In future electric systems highly efficient power
generation is mandatory
Capacity
Reliability
Efficiency
Sustainability
distributed
generation
solar plants
traditional
power plants
wind farms
Transformers
AC-DC
converters
Substations
Conversion efficiency
Process improvement
1 at 200g/km of CO2 emission and 10,000 km/year
2 Graus: Energy policy 2007; Gielen: IEA 2007

13. © ABB Group
November 10, 2010 | Slide 13
Saving potential in transmission and distribution
Efficiency
Losses of electrical energy in the grid can reach 6-10 %
Aging equipment with lower efficiency and thermal losses in conductors are
the main reasons
Inefficient distribution transformers account for about 30 percent of losses
Network losses in EU are an estimated 50 TWh, the annual consumption of
13 million households1
In future electrical systems losses
must be reduced significantly
Capacity
Reliability
Efficiency
Sustainability
1Source: European
Commission

14. © ABB Group
November 10, 2010 | Slide 18
Integrating renewable power
Bridging long distances (Sustainability)
Large hydropower plants
offer the biggest contribution
to renewable energy over
the next 20 years
Several gigawatts of power
must be transported over
thousands of kilometers to
the centers of consumption
Technologies for economic
and reliable transport are
required
The future electrical system must provide viable solutions
Capacity
Reliability
Efficiency
Sustainability

15. © ABB Group
November 10, 2010 | Slide 19
Integrating renewable power
Intermittent power generation (Sustainability)
Electricity from wind and solar
plants is intermittent
Spinning reserves between 5
and 18 percent of installed wind
energy are required1
Plant interconnections and a
wide range of storage
technologies could reduce the
need for reserves
The future electrical system must be able
to cope with these challenges
Capacity
Reliability
Efficiency
Sustainability
1
Wind impact on power system, Bremen 2009

16. © ABB Group
November 10, 2010 | Slide 22
Agenda
Drivers and challenges
How future electric systems must perform
Smart grids and applications
Worldwide on-going projects
Conclusions

17. © ABB Group
November 10, 2010 | Slide 23
Smart electricity – efficient power for a sustainable
world
A smart grid is the evolved system
that manages the electricity demand
in a
sustainable, reliable and economic manner
built on
advanced infrastructure
and tuned to facilitate
the integration of behavior of all involved

18. © ABB Group
November 10, 2010 | Slide 24
The visionary smart grid
Summing up the major requirements
Capacity
Reliability
Efficiency
Sustainability
Upgrade/install capacity economically
Provide additional infrastructure (e-cars)
Stabilize the system and avoid outages
Provide high quality power all the time
Improve efficiency of power generation
Reduce losses in transport and consumption
Connect renewable energy to the grid
Manage intermittent generation

19. © ABB Group
November 10, 2010 | Slide 25
Smart grids
Focus of activities
© ABB Group
November 10, 2010 | Slide 25
Focus area Activities
Distribution grid automation • Network Management for distribution grids
• Intelligent equipment
• Distribution communication
e-Mobility • EV charging infrastructure
• Grid intelligence
• On board and manufacturing segment
• Storage services
Demand response –
Commercial and Domestic
• Home / building automation
• Demand response applications
• Connectivity to grid
Distributed generation
integration
• Residential / community renewables
• Networked CHP and other generation
• Micro and Personal grids
• MV / LV DC grids
Distributed storage
(<1MW)
• Building / community level storage.
• Micro and Personal grids
• V2G
Bulk storage
(>1MW)
• Integration of large scale battery storage
• Mitigation of renewable intermittency

20. © ABB Group
November 10, 2010 | Slide 27
Smart Cities
Integration into the Smart Grid
Storage of
peak supply
power in car
batteries
(future)
Local distribution
grid extensions
Charging
scheduling for
residential areas
Ultra-fast charging stations:
•Storage
•Power quality services
Used car batteries
as central storage
capacity
Battery switch stations:
•Storage
•Power quality services

21. © ABB Group
November 10, 2010 | Slide 28
Distribution Automation
Integration of Power and Information
Distribution Control Center
Network management SCADA/DMS
OMS with AMR/AMI connection
Models sub-transmission and distribution
(including medium- and low voltage) networks
Workforce management
Primary Substation Automation
Protection
Monitoring and control
Automatic functions
Information refinement
MV/LV Network Automation (FA)
Protection
Monitoring and control
Automatic functions
Information refinement
Home/Building Automation
Smart metering (AMR/AMI)
Smart home integration (demand response)
© ABB Group
November 10, 2010 | Slide 28

22. © ABB Group
November 10, 2010 | Slide 29
Demand Response
Addressing the temporary change in electricity consumption

23. © ABB Group
November 10, 2010 | Slide 30
Demand Response
Spinning reserve within seconds addressed by emergency dispatch
of demand response
Balance power within 1-24 hours addressed by active consumers
Peak Load reduction
Use more efficient production
units
Use less costly production units
Use units with less emission
Improved utilization of the grid
capacity
Generally utilities run 10-20% of
their capacity less than 1-3% of
the time

24. © ABB Group
November 10, 2010 | Slide 31
Grid applications for energy storage
SVC Light with Storage
© ABB Group
November 10, 2010 | Slide 31
Grid connection of renewable
generation
Backup power
Continuous reactive power support
Eventual reactive power support
Intermittent loads of a railway
Emergency and short-time power
Integration of electric vehicles
Peak-load shaving
Ancillary services

25. © ABB Group
November 10, 2010 | Slide 32
PV and Energy Storage interaction
Residential application in a building
slow
charging
control
automation
LV
25 EV’s
appliances
DC
AC
BatteryFilter
Control
AC
DC
40-50 apartment As a vital part of an active building, energy
storage primary has the following tasks:
To provide load support during a few
hours per 24 h.
To store excess energy produced
locally (PV) when the grid or the local
consumers for whatever reason can
not use.
To control and dynamically stabilize
the voltage.
To mitigate harmonics, unbalances
and voltage dips and thereby provide
a high power quality.

26. © ABB Group
November 10, 2010 | Slide 34
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27. © ABB Group
November 10, 2010 | Slide 37
Agenda
Drivers and challenges
How future electric systems must perform
Smart grids and applications
Worldwide on-going projects
Conclusions

28. © ABB Group
November 10, 2010 | Slide 38
© ABB Group
November 10, 2010 | Slide 38
Progress Update – CEU
Smart Grid in Malta. First Smart Grid Island
Partner: IBM, Enemalta Corporation, Water Services Corporation Malta
Target: Building a Smarter Energy and Water Systems to deliver affordable and
secure energy
Challenges:
Integrate Utilities Business systems
conduct remote monitoring, meter reading and real-time management of the network
based on IT
Results:
Active demand: Real-time monitoring and smart meters can deliver pricing based on
time of day, enabling the utility to better manage energy consumption and customers to
cut their electrical bills.
Malta residents will also be able to track their energy use online and see how to curb
consumption habits.

29. © ABB Group
November 10, 2010 | Slide 39
© ABB Group
November 10, 2010 | Slide 39
Progress Update – NEU
Stockholm City (Stockholm Royal Seaport)
Customers – Stockholm Municipality and the utility FORTUM
Showcase Urban Smart Grid will be part of and supporting a larger showcase
for a Sustainable City concept
Demonstrate climate positive strategies, setting a compelling environmental
and economic example for cities to follow.
Selected as one of 18 global projects supported by Clinton Climate Initiative
Program for sustainable urban growth
Scope and ABB deliverables
Integration of Electrical Vehicles, Demand Response, Active House,
integration of Local Decentralized Renewable Production, Energy Storage,
Substation Automation ,Ship to Shore and an Innovation Center.

30. © ABB Group
November 10, 2010 | Slide 47
Agenda
Drivers and challenges
How future electric systems must perform
Smart grids and applications
Worldwide on-going projects
Conclusions

31. © ABB Group
November 10, 2010 | Slide 48
Smart grids will contribute significantly to mitigating
climate change
Source: DOE and NETL
Today
<13% variable renewables
penetration
5% demand response systems
>1% consumer generation
used on the grid
47% generation asset
utilization
50% transmission asset
utilization
30% distribution asset
utilization
With smart grids
>30% variable renewables
penetration
15% demand response
systems
10% consumer generation used
on the grid
90% generation asset utilization
80% transmission asset
utilization
80% distribution asset
utilization

32. © ABB Group
November 10, 2010 | Slide 49
We all have a part to play
Everyone must reconsider their own
individual energy consumption
Politicians must set up incentives to
save energy and commit to global
CO2 reductions
Energy markets and all stakeholders
must actively participate in efforts to
reduce consumption and optimize
efficiency

33. © ABB Group
November 10, 2010 | Slide 50