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Verhaert Innovation Day 2011 – Erik Van Genechten (VERHAERT) - Smart grids, opportunities for your business


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Speaker of Verhaert at the 8th edition of our Innovation Day on October 21st 2011.

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Verhaert Innovation Day 2011 – Erik Van Genechten (VERHAERT) - Smart grids, opportunities for your business

  2. 2. CONFIDENTIAL INNOVATIONDAY 2011 Slide 3 Presentation Summary • Transition from conventional power grid to smart grid • Opportunities for innovation • Conclusion
  3. 3. CONFIDENTIAL INNOVATIONDAY 2011 Slide 4 The Conventional Power Grid Electricity production and delivery is monopolistic, central, conventional (=nuclear or fossil fuel based and hydropower) and predictable Electricity flows in one direction, from producer to consumer (top-to-bottom) Industrial entity is responsible for • network extensions iaw. growing demand • providing security of supply
  4. 4. CONFIDENTIAL INNOVATIONDAY 2011 Slide 5 The Conventional Power Grid • Network uses tree topology • High voltage network is operated by the Transmission System Operator (TSO) and is used for long distance power transportation across borders and state lines • Medium voltage network is mostly operated by the TSO and used for local power distribution. • Low voltage lines are operated by the Distribution System Operator (DSO) and voltages are stepped down to 380/230V for SME and residential use
  5. 5. CONFIDENTIAL INNOVATIONDAY 2011 Slide 6 The Conventional Power Grid: Market Liberalisation (Belgium: 1999-2005) Power generation, grid operation and customer care are split over multiple actors: • Production (Electrabel, etc.) • Transportation (Elia) • Distribution, Metering (Eandis/Infrax) • Balancing responsible (major customer, producer) • Regulator (VREG) • Delivery (ECS, etc.) • Trading (Belpex)
  6. 6. CONFIDENTIAL INNOVATIONDAY 2011 Slide 7 The Grid becomes smarter Network topology slowly migrated from simple tree structure to more complex mesh networks for added redundancy More complex network structures demand increased control mechanisms and network communication infrastructure Market liberalization introduced new actors, requiring better rules of engagement Network balancing (demand and supply) was only done by means of controlling the energy supply, i.e. turning on/off peak power plants (Gasturbines, pumped storage plants,…) Complexer topology Market Liberalization Better Load Balancing
  7. 7. CONFIDENTIAL INNOVATIONDAY 2011 Slide 8 Residential Consumption: Typical Daily Profile 0 0.5 1 1.5 2 2.5 3 0 2 4 6 8 10 12 14 16 18 20 22 24 Today BAU hours
  8. 8. CONFIDENTIAL INNOVATIONDAY 2011 Slide 9 Threats to power grid ?Increasing Demand Distributed Generation Renewable Energy Sources Demand- Response Optimization Energy Storage Prosumers Aging Network
  9. 9. CONFIDENTIAL INNOVATIONDAY 2011 Slide 10 Why do we need a smart grid? De-carbonization of the energy March 2007: Ambitious European Energy policy 20-20-20: • 20% reduction in CO2 emission • 20% increase in energy efficiency • 20% of energy produced is renewable (Belgium target is 13%) RES in Belgium: • 2005: 2,2% • 2009: 6,0% • 2020 target: 13% of energy produced is renewable Target for 2020 CO2 neutral energy production by 2050 Increased unpredictability of power generation
  10. 10. CONFIDENTIAL INNOVATIONDAY 2011 Slide 11 Smart Grid Functions • Real time remote metering • Bi-directional flow control • Demand-Respons balancing • Peak shaving • Time of Use pricing • Island operation
  11. 11. CONFIDENTIAL INNOVATIONDAY 2011 Slide 12 Residential Consumption: Typical Daily Profile 0 0.5 1 1.5 2 2.5 3 0 2 4 6 8 10 12 14 16 18 20 22 24 Today BAU Smart Grid
  12. 12. CONFIDENTIAL INNOVATIONDAY 2011 Slide 13 Smart meter: the cornerstone of any smart grid EC Directive: 2020: 80% of consumers equipped with Smart meters Purpose: Remote real time registration of electricity/gas/water consumption Power outtage notification Monitoring power quality Interface with Home Area Network Remote customer activation/de-activation
  13. 13. CONFIDENTIAL INNOVATIONDAY 2011 Slide 14 Smart meter Benefits Customer: • Awareness of real time electricity/gas/water consumption • No more annual meter registration • Accurate monthly billing • Faster responses to power outtage Distributors: • Automatisation of billing • Detection of “non-technical losses” • Faster detection and resolution of power outtage • Better allignment of generation and consumption of power
  14. 14. CONFIDENTIAL INNOVATIONDAY 2011 Slide 15 Smart meter Benefits Power generators: Better prediction of required power to be generated Balancing the network with increasing DER remains possible Introduction of ToU pricing for residential market Aggregators: Enable energy wholesale to specific markets
  15. 15. CONFIDENTIAL INNOVATIONDAY 2011 Slide 16 Time of Use Pricing Multiple tariffs Ratio Highest/Lowest tariff up to 15
  16. 16. CONFIDENTIAL INNOVATIONDAY 2011 Slide 17 Demand Side Management: The hunt for flexibility • Increasing % of RES in the network means increasing unpredictability in terms of power generation (e.g. weather dependency) • The only way to keep the networks in balance, is to also control the power • Consumption (= demand side management) • Power generating companies are looking for flexible customers to partner with them. The more flexible you are the better prices can be negotiated • Different control levels are possible, both on consumption and generation side: Power on/off control by third party Control local power generation remotely Peak demand reduction ToU pricing, Real Time Pricing or Bidding
  17. 17. CONFIDENTIAL INNOVATIONDAY 2011 Slide 18 Demand Side Management: The hunt for flexibility • Air conditioning = solar powered • Dishwasher • Dryer • Cooling/Freezing = cool lower during low tariff periods, improve hold- over time to overcome high tariff periods • Energy storage (electrical/thermal/hydro) = pump water with cheap electricity, generate power when prices are high • Water heating • Space heating • Hydrogen generation = use wind power when surplus is available • eMobility = > storage capacity = allready today often used during night time
  18. 18. CONFIDENTIAL INNOVATIONDAY 2011 Slide 19 Market impact: Business opportunities eMobility • One large mobile electrical storage medium • Flexible charging patterns • Smart charging infrastructure (public and private) • Trip planning tools Home Area Network Residential gateway In home displays Smart appliances Building/home energy management systems Micro generation (Solar, wind, WKK, ...)
  19. 19. CONFIDENTIAL INNOVATIONDAY 2011 Slide 20 Market impact: Business opportunities Shift in energy market Smart buildings Selfsufficient neighbourhoods Smart Cities Many stakeholders System operators Producers System integrators Asset owners Policy, regulations Customers No single organization can deliver the smart grid
  20. 20. CONFIDENTIAL INNOVATIONDAY 2011 Slide 21 Smart Grid = Marriage between Utility and Telecom sector • Utilities typically installs equipment for 10’s of years, but which electronic equipment is failsafe for 10 years? introduction of low cost consumer electronics in residential meter cabinet • Millions of smart meters sending out data every 15 minutes hugh amount of data management requires top notch telecom infrastructure • Electrical network security becomes key issue • Island operation requires specific connectivity and ICT technology
  21. 21. CONFIDENTIAL INNOVATIONDAY 2011 Slide 22 Conclusion Smart Grid will be the next industrial revolution after the internet! Make sure you assess the potential impact on your business! Environmental Concerns Reneweable Energy Smart Grid Impact on daily business
  22. 22. CONFIDENTIAL INNOVATIONDAY 2011 Slide 23 Hogenakkerhoekstraat 21 9150 Kruibeke (B) tel +32 (0)3 250 19 00 fax +32 (0)3 254 10 08 More at helps companies and governments to innovate. We design products and systems for organizations looking for new ways to provide value for their customers. We are a leading integrated product innovation center; creating technology platforms, developing new products and business in parallel, hence facilitating new- growth strategies for our clients.