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Smart Grid Report


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Smart Grid Report

  1. 1. DENMARK: A EUROPEANSMART GRID HUB Asset mapping of smart grid competencies in Denmark
  2. 2. Copenhagen Cleantech Cluster 2Table of content Foreword3 Introduction4 Smart Grid in Denmark 5 Denmark has a unique concentration of smart grid assets 10 Smart grid commercial landscape of Denmark 12 Future smart grid challenges in Denmark 14 Conclusion18 References Appendices - company matrix20 Introduction to company matrix 21 Technology company matrix 24 Consultancy company matrix 28 Company contact list Appendices - cases30 Vikingegaarden: Creating intelligent charging 34 Inopower: Integration of large scale Wind Power into Smart Grid systems 36 QEES: Taps into large market potential 38 Spirae: from USA to Denmark 39 Appendices - projects EcoGrid EU – testing the intelligent power system 40 EDISON: Utilizing Danish Expertise to Create Sustainable Solutions 41 Electricity Demand as a Frequency-Controlled Reserve (DFR) 42 PowerLabDK: a world-class research platform 43
  3. 3. ForewordThis report is an extensive mapping of the Danish smart grid mann PhD, Associate Professor, Copenhagensector. The purpose of the report is to: Business School, for methodological advice. We are also very grateful for the valuable 1. Provide an overview and general outline comments and extensive advice from Vibeke of the competencies in the Danish smart Thyge Frandsen, Ea Energy Analyses; Jacob grid industry Østergaard, Professor and Head of the Centre 2. Display Danish competencies within for Electric Technology at the DTU Depart- smart grid research, development, test ment of Electrical Engineering; Göran Wilke, and demonstration consultant at Exergi; Birger Hauge, Founder 3. Describe the possible future develop- and CEO of VillaWatt; Brian Vad Mathiesen, As- ments within the smart grid industry in sociate Professor, Aalborg University, Michael Denmark Nymann Folmer, Consultant, The Danish IT In- dustry Association; Morten Baadsgaard Trolle, Through this study, Copenhagen Cleantech Chief Consultant, Danish Energy Association. Cluster and Copenhagen Capacity aim to strengthen Danish smart grid stakeholders Copenhagen Capacity would also like to thank and Copenhagen Cleantech Cluster by provid- all the companies that are listed in the com- ing a unique overview of over 60 smart grid pany matrix for their participation. companies. The report also seeks to visualize the array of smart grid business opportuni- ties in Denmark, and will serve as a tool for Editor: international stakeholders (e.g. companies, Cecilie Hestbæk public authorities or research units) that wish to approach the Danish smart grid sector as, Contact: for example, possible partners, customers or Copenhagen Capacity, suppliers. tel: +45 33 22 02 22 The report has been prepared by Copenha- gen Capacity with extensive assistance from © Copenhagen Capacity Mikael Togeby, partner at Ea Energy Analyses. A part of Copenhagen Cleantech Cluster Acknowledgements A number of dedicated professionals from industry, academia and various organizations have kindly assisted in the production of the report. Copenhagen Capacity would like to thank Marcy Lowe, Senior Research Analyst, Duke University; Silvia Pagani, Managing Direc- tor, Euroimpresa; and Christian Erik Kamp-
  4. 4. Copenhagen Cleantech Cluster 4IntroductionDenmark has developed unique experience over several and environmental impact while maximizingdecades with the integration of renewables into the power system reliability, resilience and stability.1supply, and has a very flexible electricity market as a result. Globally, there is a pressing need to acceler-Thus, the country has already got a head start in the devel- ate the development of carbon free energyopment of a new intelligent power grid that is planned to technologies in order to address the globalallow the integration of 100% renewable energy. challenges of energy security, climate change and economic growth. To enable this tech- As Denmark already manages the integra- nological development and implementation, tion of more wind power into the grid than smart grids are essential. Moreover, they will any other country in the world and has a wide turn out to be a more cost-effective solution array of smart grid assets within test and in most cases than merely expanding capacity demonstration and over 60 smart grid firms, in the existing grid. it has the potential to be a world leader in the smart grid industry in the coming years. Our findings The present study has been conducted to Smart grid is a necessary and cost-effec- provide an overview of the smart grid sector tive solution in Denmark from a business perspective. The A smart grid is an electricity network that aim of the report was to identify and show- uses digital and other advanced technolo- case the strengths of the Danish smart grid gies to monitor and manage the transport of sector as well as to highlight opportunities for electricity from all generation sources to meet international smart grid actors. The results the varying electricity demands of end users. give a clear picture of a Danish smart grid sec- Smart grids co-ordinate the needs and capa- tor with strong assets, continuous innovation bilities of generation assets, grid operators, and increasing growth: over 60 companies end users and electricity market stakeholders work in the smart grid industry and together to operate all parts of the system as effi- they cover all of the eight smart grid technol- ciently as possible, thereby minimizing costs ogy categories defined by the IEA. Moreover, Denmark is recognized as a unique location for test and demonstration, as is reflected in the large number of RD and demonstra- tion projects: 22% of all projects concerning intelligent power grids in the EU take place in Denmark. 2 In addition to the overview of Denmark’s strengths within the smart grid industry, the report has identified some possible future trends within the smart grid market. Due to a number of factors, experts suggest that Denmark will experience rising demand within certain smart grid business areas, including electrical vehicles and charging infrastructure; metering infrastructure; transmission en- hancement; and integrated, flexible demand response solutions. 1    OECD/IEA: Technology Roadmap – smart grids, 2011 2    EU JRC report, 2011
  5. 5. Smart Grid in DenmarkThe power supply sector will have to undergo significant on whether the existing, traditional grid isinfrastructural changes in the coming decades. An increas- expanded or if a smart grid solution is imple-ing part of electricity production will come from renewable, especially wind. Smart grid refers to the transformation of the electric power system into an ‘energy inter- By 2020, renewable energy will amount to net’, allowing utilities and customers to share 30% of total energy consumption in Denmark information in real time, often automatically, and wind power is expected to supply 50% of so that both sides can manage electricity use Danish electricity consumption. Furthermore, more effectively.2 a significant change in consumption patterns will occur due to the wider use of Electrical New power system, new technologies Vehicles (EVs) and heat pumps, for example. Future energy systems will be radically differ- These challenges will require not only exten- ent from what we know today. Danish energy sive changes in the energy system structure, production in the system will continue to be but also the development of intelligence divided into power and heating, but to achieve within the system. 1 These fundamental a system which is as flexible as possible, it changes in the sector are going to result in a will be essential that these two sectors are situation where the production as well as the not mutually dependent on each other. The consumption of electricity will fluctuate to a key factor in the energy system will be that it greater degree in the future. consists of decentralized and distributed pro- duction based on a broad array of technolo-Figure 1. Smart grid projects in EU gies that are integrated on a power grid and aSource: EU JRC report, 2011 number of heating grids. With a large number of plants on the grid, it is essential that these are monitored and constantly regulated, and % 25 that a power and heating storage capac- ity for use in times of surplus production is established. The systems created must be as 20 intelligent as possible and made flexible and robust enough to cope with fluctuations in consumption as well as production over hours, 15 days and weeks.3 Estimated investment needs 10 The specific investment needs with regard to smart grid expansion are: system software for controlling the grid; monitoring of the distribu- 5 tion grid; intelligent systems for the end user and the upgrading of metering infrastructure. 0 Denmark Germany The Netherlands During the period up to 2025, investments totaling at least Euro 1,32 billion will be necessary in Denmark alone if the grid is to be expanded ‘intelligently’. A smarter way to enhance the grid The changes in the nature of power supply and demand will necessitate investment in the enhancement of the power grid, but 2    CGGC, Duke University, 2011 3    Fonnesbech et al, 2009 the costs will vary significantly depending 1    Confederation of Danish Industry, 2010.
  6. 6. Copenhagen Cleantech Cluster 6The smart grid will give rise to a number of so- 20,7%.5 This is a notably high proportion – incioeconomic benefits, such as lower electric- fact Denmark has the largest proportion ofity costs as the flexibility of electric vehicles such electricity production in Europe.6 Figureand heating pumps allows part of electricity 2 illustrates Denmarks transition from centralconsumption to be moved to time slots where to decentral energy system.the electricity is cheaper, and a decrease inthe cost of power generation regulation. The However, the potential is much greater:value of these benefits is estimated to be Mikael Togeby, Partner in Ea Energy Analysesabout Euro 1,1 billion. Traditional expansion estimates that in the longer term, with anof the grid would require investments of Euro intelligent power grid, up to 75% of energy1,03 billion but would not result in similar supplied by wind is realistic.socioeconomic gains.1 Furthermore, theexpansion of the Danish smart grid is roughly Flexible and coordinated power marketestimated by 2025 to have led to the creation The circumstances outlined above haveof 10,000 new jobs.2 caused Denmark to be involved in the devel- opment of one of the world’s most flexibleIn the EU, the estimated investement needs electricity markets, and thus the country isare Euro 500 billion by 2030 if transmission already one step ahead when it comes toand distribution investments are included.3 a flexible demand response power system. Brian Vad Mathiesen, who is Associate Profes-Ambitious political aims sor at Aalborg University as well as the mainThe long-term vision for the Danish energy author of and scientist behind the renewablesystem is independence from fossil fuels, energy system in IDAs7 Climate Plan 2050,and there is the political ambition to achieve explains that “Denmark has the world’s mostthat goal no later than 2050. A long-term well developed market for handling wind andDanish energy system based on indigenous the resulting fluctuations in its resources can be obtained most cost- Large and small electricity producers alreadyeffectively via a combination of initiatives regulate their production, e.g. using thermalleading up to 2050: the massive development storage. In fact, this means that there isof wind power; substitution of fossil fuels with already a close interaction between consump-biomass, biogas and waste; implementing the tion and production in Denmark.”smart grid; energy exchange with neighboringcountries; and a considerable level of energy Nord Pool Spotsaving and improvements in overall energy This market interaction is possible due toefficiency.4 Nord Pool Spot. In 1991, Norway was one of the first countries in the world to deregulateLong experience with wind energy its power market, and was shortly followedDenmark has four decades of experience by the other Nordic countries, who combinedin the implementation of wind energy, and their individual markets into a common Nordichas therefore been the first country to meet market. This was done in order to optimizeand address the challenges posed by the social welfare and increase the security ofintegration of a large degree of wind energy in supply. Available power capacity can be usedthe power system. Today, Denmark produces more efficiently over a large region comparedmore than 33% of its electricity from renew- to a small one, and integrated markets en-able energy sources – wind, biomass, solar hance productivity and improve efficiency.and geothermal. Wind alone accounts for 5    Danish Energy Agency, 2010 6    Confederation of Danish Industry, 20101, 2011 7    IDA is the Danish Association of Engineers2    Deloitte, 2011 (own translation and currencyexchange)3    EU JRC report, 20114    Confederation of Danish Industry et al, 2010
  7. 7. Figure 2. Illustration of Denmark’s journey from centralised to distributed energy systemSource: Danish Energy Agency,, 100% accurate maps available 1985 2009 Centralised combined heat and power plant Centralised combined heat and power plant Decentralised combined heat and power plant Decentralised combined heat and power plant Wind turbines Wind turbines
  8. 8. Copenhagen Cleantech Cluster 8The power price is determined by the balance whether these units use electricity or gas forbetween supply and demand, taking into heating, the district heating system is one ofaccount transmission capacity. Today, there is the elements that will contribute to stabilizinggeneral consent among politicians and other the power grid when production and con-stakeholders in the Danish market that this sumption experience greater fluctuations.model serves society well. Heat pumpsNord Pool Spot was established as a company The extension of heat pumps into areasin 2002 as the world’s first market for trading where district heating is not available is rapidlypower. Today, it is also the world’s largest increasing in Denmark: estimatesmarket of its kind, and constitutes the leading that around 500,000 Danish homes will havemarketplace for buying and selling power in heat pumps by 2030. This is an essentialthe Nordic region, as well as Estonia, Germany component for the implementation of theand Great Britain. Nord Pool Spot runs the smart grid, as the intelligent remote controlleading power market in Europe and offers of electricity-driven heat pumps can pave theboth day-ahead and intraday markets to its way for more wind power in the energy sys-customers. 350 companies from 18 countries tem by helping to create balance in an energytrade on the market. 1 system based on fluctuating energy produc- tion from renewable sources. The remoteThe world’s most developed district heat- control of heat pumps allows the coordina-ing system tion of electricity price, weather forecast andThe Danish energy system is one of the knowledge of the specific houses that needworld’s most energy efficient systems. This is to be heated, which will then make it primar-to a high degree to an extensive expansion of ily possible to have the pumps running whendistrict heating that utilizes renewable energy power production is high and the price ofand heat from combined heat and power electricity low.(CHP) units. District heating today comprisesabout 60% of the heating market, and over Electric vehicles95% of the heating is produced with renewa- EVs are another technology that will con-ble energy or CHP.2 In an energy system using tribute significantly to stabilizing a future100% renewable energy, an intelligent power smart grid with power from 100% renewablegrid with flexible consumption should be com- sources. With flexible control systems, carsbined with an expansion of district heating, as can charge when electricity production is high,existing district heating systems in large cities and thus serve as storage capacity. Hence,can be converted cost-effectively from coal although EVs can end up being a heavy drainto biomass and new plants can be designed on the grid at times, they are, with the rightfor using biomass, e.g. straw or wood pellets. intelligent solutions, also a part of the smart infrastructure that will keep the grid stabi-From a smart grid perspective, this exten- lized.sive system can be used to store heat fromelectricity production by installing heatingelements (e.g. electric kettles). Due to the dis-trict heating system, the heating boilers canbe placed in a large number of places in thesystem. As there is already a regulating mar-ket in which the price of electricity determines1    www.nordpoolspot.com2    Fonnesbech et al, 2009
  9. 9. The extension of the world’s largestpower trading market, Nord PoolSpot. Source: The Nordic market: Day- ahead and intraday The UK market N2EX: Day- ahead and intraday
  10. 10. Copenhagen Cleantech Cluster 10Denmark has a unique concentration of smart grid assets“Denmark is a world-leader in the smart grid industry.” This Yet another example is the world’s largest testis the conclusion of several experts working in the field. A project on the intelligent remote control ofvariety of factors contribute to Denmark being seen as an heat pumps, which is taking place in Denmark over the next few years, and has over 300international hot spot for smart grid technology. families participating. Furthermore, several research platforms offer facilities for these Leading test and demonstration facilities activities, one of them being Powerlab (see Denmark has a vision of becoming the world’s page 43). green test lab and is already well on the way to achieving this due to framework conditions EU spearhead in RD and TD and business-oriented research. Over the last few years, public funding for re- search in Denmark has increased, and in 2011, Denmark is European leader in the develop- approx. 135 million EUR was allocated for ment of smart grids as 22% of all demonstra- research. In addition to this, European funding tion and development projects relating to from Frame Program 7 is contributing further intelligent power grids in the EU take place in to the development of smart grid technology Denmark, with Germany in second place with in Denmark. Jacob Østergaard, Professor and 11% of the projects.1 Head of the Centre for Electric Technology at the DTU Department of Electrical Engineering, Examples of exceptional projects confirms the image of Denmark as a green One of Europe’s most ambitious smart grid test hub: “The EU considers Denmark to be projects is currently taking place on the a lighthouse; a spearhead in research, test, island of Bornholm in Denmark. The full-scale development and demonstration, and these EcoGrid project (see page 40) is aiming are also the areas we need to keep prioritizing to lead the way in establishing the energy and strengthening if we want to maintain our system of the future. Over the next few years, position as leading in the world in smart grid the largest intelligent power supply system technology. I believe it is absolutely achievable in the world will be set up on Bornholm, and for us to become the European centre for the project will test and demonstrate how a smart grid technology if we keep focusing on region can become fully self-sufficient with and prioritizing our efforts in the area.” renewable energy.2 Mikael Togeby, a partner at Ea Energy Analy- Also taking place on Bornholm, the EDISON ses, agrees that the test and development project (see page 41) is utilizing Danish projects are fundamental for Denmark’s and international competencies to develop strong position within the smart grid industry: optimal system solutions for EV system “The potential of smart grid is way larger than integration, while the DTU Centre for Elec- we can imagine. For example, a technology tric Technology and Ea Energy Analyses are such as energy storage in water tanks has testing electricity as a frequency controlled enormous potential. If you are open to new reserve (see page 42). ideas, there are plenty of examples of what can be achieved. 1    EU JRC report, 2011 2, 2011
  11. 11. Universities, specialized RD centres and a with the business sector, the authoritieshighly skilled work force and the research community, and theDenmark has a number of world class uni- laboratory’s research is part of nationalversities and a highly educated work force. In and international networks. Risø DTU’sDenmark, the production of scientific articles research could have a particular impacton climate technology per million inhabitants on energy supply and consumption. Theis 70. This is four times as many as in the US research laboratory has large test facili-and EU, where the production of scientific ties and interdisciplinary research envi-articles per million inhabitants is 16 and 17 ronments that enable problem solvingrespectively.1 across traditional professional bounda- ries and competences, and training andBusiness oriented research education as well as innovative activitiesThe research being conducted into smart grid are naturally integrated into Risø DTU’stechnology in Denmark is closely linked to research activities.2industry and public needs. Academics workingin the energy sciences have traditionally been 2. Aalborg University: Aalborg Univer-in dialogue with industry and the authorities, sity conducts research into smart gridand this long experience of interdisciplinary technology in a number of ways, one ofcollaboration and projects is now part of what these being through the university’s Sus-makes Denmark a leader in the smart grid tainable Energy Planning Group, whichsector. A few outstanding research institu- works with an interdisciplinary approachtions in Denmark are: on sustainable energy planning and management. The research group is as-1. DTU: Technical University of Denmark sessing energy planning in general, with (DTU) is the country’s largest technical a focus on technical aspects such as en- university. It offers highly specialized ergy system analysis and GIS3, as well as research within several core smart grid economic and institutional aspects such areas. One of the research centres is the as feasibility studies and public regula- Centre for Electric Technology, which tion seen in the light of technological is undertaking essential research into change. Since the early 1970s, the group electric energy systems and electric has taken a strong interest in the Danish components. Another is the Risø DTU energy planning process. At the national National Laboratory for Sustainable level, strategies for the development of Energy, which is one of Europe’s leading energy conservation, renewable energy research laboratories for sustainable sources and CHP have been put forward energy. Risø DTU achieves pioneering from the very start. The researchers have research results and contributes actively regularly been involved in the design of to their implementation in close dialogue Danish energy policy and its implementa- with the wider society. Risø’s research is tion at both local and national levels.4 the basis of customer-driven activities including advising the business com- munity, institutions and authorities. Risø 2 DTU takes initiatives and sets targets for 3    A Geographic Information System is a system de- research through continuous dialogue signed to capture, store, manipulate, analyze, manage, and present all types of geographically referenced data 4    Confederation of Danish Industry, 2010
  12. 12. Copenhagen Cleantech Cluster 12Smart grid commercial landscape of DenmarkIn this study, Copenhagen Capacity has sought to list all the parallels the process in which electric powercompanies in Denmark that deliver the types of products or is delivered to the customer: first, electricity isservices which have been defined as smart grid and catego- generated, then it is stepped up by transform- ers to a high voltage so it can be transmit-rized in eight technology areas by the International Energy ted over long distances, then it arrives at aAgency (IEA). substation where it is stepped back down to a lower voltage safer for local distribution.2 The mapping (see “Technology company matrix” on page 24) shows that Denmark As can be seen in figure 3 and the technology has over 60 smart grid companies. Smart grid company matrix on page 25, the data from technology brings together a wide range of our study reveal the following: players such as technology providers, power providers, investors, regulators, government -- Denmark’s over 60 smart grid companies agencies, research institutions and standard- span the entire value chain as defined by setting organizations. In this study, we have the IEA. focused on technology and consultancy companies, and narrowed it down to those -- They are roughly estimated to have at who offer products that correspond to the least 15,500 employees. IEA smart grid technology areas. We have not included companies that produce renewable -- Denmark has firms involved in all of the energy devices, such as solar cells and micro eight IEA technology categories. The wind turbines. Furthermore, we have excluded highest number of firms appears in infor- from the study storage technologies like, for mation and communications technology example, fuel cells and stationary batteries, integration despite knowing that these products might well be part of the solution in the intelligent -- The large multinational firms such as power grid. In the matrix, however, there are ABB, Siemens, Schneider Electric, Eltel a few examples of companies that produce Networks etc. stretch across most electrical devices which intelligently interact categories. with the power grid, e.g. EVs and pumps – and we are well aware that the list is not exhaus- -- A large number of smaller and medium tive within this business area. sized companies are present in the Dan- ish smart grid commercial landscape. IEA’s eight technology categories Most of these specialize within particular To identify the capabilities of Danish smart smart grid technology areas. grid companies, we did a firm-by-firm inven- tory (see “Technology company matrix” on -- Danish companies are more involved in page 24) across the spectrum of IEA’s tech- smart grid software and services than nology categories (see page 21), which was in hardware, with 61 in software and then confirmed by the companies listed.1 services and 40 in hardware. In the study, the value chain of smart grid technology has been simplified to a repre- sentation as seen in “Figure 3. Smart Grid 2    CGGC, Duke University, 2011 Technology areas” on page 13 The left-to- right structure begins with power generation, moves through transmission and distribution, and ends with consumption. This roughly 1    No independent verification of the information reported by the companies has been performed.
  13. 13. Figure 3. Smart Grid Technology areasSource: Technology categories and descriptions are adapted from IEANote: Numbers in brackets relates to the number of companies working within (hardware software). The number in the red box is the total. Each companywork in several technology areas, thus the high number in total. Generation Transmission Distribution Industrial Service Residential Information and communications technology (ICT) integration (29 49) 78 CI and residential building energy (25 43) 68 Advanced metering infrastructure (AMI) (19 33) 52 Renewable and distributed generation integration (20 30) 50 Distribution grid 39 management (16 23) EV charging infrastructure (12 26) 38 Wide-area monitoring and control (14 18) 32 Transmission enhancement 32 applications (9 19)
  14. 14. Copenhagen Cleantech Cluster 14Future smart grid challenges in DenmarkAs was concluded from the matrix, smart grid firms in Den- Transmission enhancementmark cover all eight of the IEA technology areas. There are, The conversion of the existing grid to smarthowever, strong clues as to where demand for solutions will grid will take some innovation with regard to the distribution grid, as it will be necessary toincrease and thus where new actors would be able to enter secure an effective extension of the transmis-the market and contribute with valuable competencies at sion capacity in the distribution grid. The intro-premium demand. duction of electric and plug-in hybrid cars and extention of heat pumps will mean that the According to Jacob Østergaard, professor and power grid will have to transmit more electric- head of center DTU, Denmark will not be able ity than it is currently designed for. Maintain- to “deliver all the building blocks necessary” ing a constant voltage in spite of fluctuating for smart grid merely from domestic produc- energy production from renewable sources tion. Denmark is thus dependent on attracting and a new consumption pattern is of crucial industry players of all sizes. As an example, importance, and currently the development of he mentions system solutions for the smart the smart grid is being held back by the lack control room of the future grid as just one of common standards. However, when these concrete business area in which Denmark is standards have been decided and implement- currently short of industrial products. Through ed, the demand for transmission enhance- extensive interviews with experts a number ment solutions is expected to increase. of other possible future market opportunities are estimated to be as follows: Metering infrastructure In the IDA Climate Plan 2050, it is made Integrated flexible solutions clear that a flexible market supporting the As Denmark is already now becoming one of development and expansion of the energy the first countries to implement smart grid supply with renewable energy will demand old solutions, the demand for intelligent, inte- metering infrastructure to be replaced by new grated and flexible solutions for controlling ones that will enable realtime monitoring and energy consumption will arise. The solutions remote reading. will need to provide better service and lower prices for the consumers. Mikael Togeby from Brian Vad Mathiesen from Aalborg University Ea Energy Analyses explains that “the current explains that new meters are essential if local design of the electricity market suits the consumers are to be activated. “Of course needs of the utilities very well, but it needs to being able to move demand will have some be adjusted to the new system with a large positive effect on the system, but a more number of electricity producers.” He adds that important effect is energy conservation. One the politicians will have to remove the barriers way of reducing consumption is metering. It to flexible demand and response suitable for is simply common sense to enable people to the market if they are to achieve their own see the price of what they are buying, and it climate goals. To Mikael Togeby, the Danish will reduce people’s energy use.” In Denmark, a objective of being fossil free by 2050 is “a number of industry players are already work- challenge, but definitely a strength, too, as it ing on metering infrastructure, but as smart necessitates better regulation which will spur grid solutions win ground in both industry and the faster development of smart grid technol- private homes, and transmission infrastruc- ogy and help keep Denmark in its current ture is improved and expanded, metering solu- leading position with regards to smart grid.” tions will be in high demand. For new firms on the Danish market that can offer experience and strong competencies in metering solu- tions, opportunities may arise.
  15. 15. Electric vehicles and charging The solutions required are sometimes referredThe commitment to supporting EVs in Den- to as a “smart grid”, however he emphasizesmark is not entirely about green transporta- that it is also about organizing the marketstion. They are also seen as a storage option and the behaviour of consumer groups: “Den-for all the wind energy produced. Therefore, mark is definitely the one country which isthe smart grid aspects of the EV infrastruc- furthest advanced with regard to a smart grid.ture are imperative for EVs to become a suc- The main reason is that we already know howcess in a Danish context. to handle the integration of a large amount of wind energy – which no one else does,” saysRecently, a consortium of partners includ- Brian Vad Mathiesen and continues: “Techni-ing DONG Energy, Østkraft, IBM, Siemens, cally, it is possible to integrate a lot more windthe Danish Energy Authority and Eurisco has energy into the system, and as we, becausebeen working on developing a smart electrical of our ambitious political goals, will meetpower infrastructure for charging EVs in the these challenges first, will have to developEDISON project (electric vehicles in a distrib- the solutions before anyone else. We alreadyuted and integrated market using sustainable have parts of the solution: a flexible market,energy and open networks, see “EDISON: Uti- a district heating system, massive amountslizing Danish Expertise to Create Sustainable of research into electric vehicles and heatSolutions” on page 41). This infrastructure pumps, and a lot of activity within the smartmust enable electric vehicles to communicate grid sector. When we start integrating evenintelligently with the grid so that charging and more wind power and developing a system fordis-charging happens in an intelligent way in controlling flexible electric vehicle chargingorder to reap the benefits of EVs without put- and energy consumption, the whole world willting a strain on the electrical grid or upsetting be watching to learn how we are managingEV owners. To spur the development of the and organizing it.”EV market, the Danish Government has imple-mented a registration tax exemption on EVsuntil 2015 as part of a comprehensive plan topromote green growth in the Danish economy.In contrast, the typical car registration tax inDenmark is 180% of the dutiable price.A perfect place for EV testingBrian Vad Mathiesen from Aalborg Universityexpects flexible solutions for charging willbe available on a larger scale in 2-3 years,and that now it is all about getting the newcars out there on the roads for everyone tosee and try out. He believes that Denmark isthe perfect place for developing, testing anddemonstrating electric vehicle solutions asthese depend on a more intelligent energysystem.
  16. 16. Copenhagen Cleantech Cluster 16Intelligent buildings Benefits of being in the world’s leadingAlthough Denmark has a large number of green labcompanies working on smart grid software, When considering whether to enter the Dan-according to Göran Wilke, consultant at Exergi ish market to contribute specific smart gridand former director of the Danish Electricity capabilities, companies should also take intoSaving Trust, even more compentecies are account the conditions into which they are lo-needed to develop the intelligent buildings cating their activities: Denmark’s status as theof the future that will play an active role in ‘green demonstratorium of the world’ makes itthe smart grid. “We lack medium-sized play- a location which is both easy and beneficial toers that have a focus on consumer issues. enter for business purposes. “One of the chal-The consumer does not feel that he has a lenges in the grid today is that the companiesproblem right now, so the smart solution has that deliver products and services for utilitiesto appeal to the consumer first and foremost. are often large international companies.So we are looking for companies with vision These players have a natural platform fromand muscle that can combine energy, green which to expand their portfolio to includeIT and consumer issues. Denmark would be smart grid products, but they do not alwaysthe starter market, where companies from have the full picture of the necessary solu-different countries can test and show their tions in an electric power system with a veryproducts destined for a much larger market,” high proportion of renewable energy – and thisGöran Wilke says. understanding is important for being able to develop good future products and solutions.Denmark is a good test market For that, research, development and testingGöran Wilke agrees that our challenges are essential components,” Jacob Østergaardwill make us first movers, but also calls for from DTU explains.This is a key aspect in theimproved competencies within integrated Danish smart grid sector today and will be insolutions: “We need to be better at building the future.flexible solutions into heat pumps, electricvehicles etc., so that power supply and heatpumps, for example, come in one ‘pack-age’,” he says. Göran Wilke also believes thatDenmark is a “fantastic test country” fornew smart grid technology, as the Danes arecurious, want smart solutions and are open tonew technology – the products, however, stillneed to be great and viable in market condi-tions. “This means,” he says, “that Denmark isa ‘natural environment’ for new products, andgood solutions will therefore be quickly takenup on the Danish market.”
  18. 18. Copenhagen Cleantech Cluster 18ConclusionDenmark has over 60 smart grid companies which span the also present, partnerships or supplier-cus-entire value chain. Furthermore, the country has decades of tomer relations throughout the value chainexperience with the integration of renewables and thus has are more easily achievable than in locations with only smaller players. Moreover, all typesa unique combination of smart grid assets including leading of industrial players in the smart grid sectortest and demonstration facilities. However, Denmark will not in Denmark can take advantage of the closebe able to deliver all the building blocks for the future smart connections to the local surrounding marketsgrid 2.0 merely from domestic competencies. through e.g. Nord Pool Spot. Entering the Danish market thus gives a head start into op- A number of clues indicate where the demand erating in future energy markets and provides for intelligent solutions will increase and thus a unique hub for Scandinavia and Northern where new actors would be able to enter the Europe. market and contribute valuable competencies at premium demand, i.e. solutions that will ”We strongly believe that being part of devel- later on be in high demand in other countries oping solutions in the Danish smart grid sector where large-scale integration of renewables will provide future access to a potential smart and smart grid development will be a future grid market in Europe estimated to be worth focus for investment. Euro 500 billion until 2030”, says Jakob Elmer, Business Development Manager at Copenha- Opportunities for both large and small gen Capacity. companies For large multinationals, therefore, testing, developing and launching new products in Denmark can give a unique insight into cur- rent and future demand for smart grids and the possibilities for full-scale implementation, while for smaller companies the environment in which they will be acting has a number of potential benefits. The Danish market is easy to enter, and as a variety of large players are
  20. 20. Copenhagen Cleantech Cluster 20ReferencesSource Publication/articleConfederation of Danish Industry Bright Green. Solutions for Sustainable Growth, 2010.Danish Energy Smart Grid i DanmarkDanish Energy Agency, 2001 www.ens.dkDeloitte for Dansk Elbilalliance Elbiler og smart grid – perspektiverne for grøn vækst og beskæftigelse, Copenhagen, 2011Ea Energy Analyses for Confederation of Danish Intelligent Energy Systems. A white paper with Danish perspectives, Copenhagen, 2010Industry et Smart Grid – en folkesag (Nyhedsmagasinet om Energi), 2011Fonnesbech et al IDA’s Climate Plan 2050, Ingeniørforeningen, Copenhagen, 2009Lowe, Marcy; Fan, Hua; Gereffi, Gery: Center on Smart Grid Core Firms in the Research Triangle Region, North Carolina, U.S., 2011Globalization, Governance and Competitiveness,Duke UniversityOECD/International Energy Agency Technology Roadmap – smart grids, Paris, 2011Ålborg Universityø DTU DTU Commission, Joint Research Centre, Smart Grid projects in Europe: lessons learned and current developments, European Union 2011Institute for EnergyNord Pool Spot www.energinet.dkThe Danish Society of Engineers, IDA
  21. 21. Introduction to company matrixTo provide an overview of the players in the smart grid sec- all the technology areas in “Figure 3. Smarttor, we have listed them in a matrix containing information on Grid Technology areas” on page 13. How-their size (number of employees) and their area of business ever, not all technology areas need to be in- stalled to increase the ‘smartness’ of the grid.(technology areas). The listings only apply to the parts of The technology areas are defined as follows:each company that are based in Denmark (e.g. multinationalsare only listed under the products and services their Danish Information and communications technol-branches offer.) The symbols in the matrix are as follows: ogy integration Make it possible to integrate intelligence throughout the entire power system, and to Type of product: achieve real-time, two-way communication in Hardware order to manage energy more effectively. Software and other services Commercial, Industrial or Residential Build- ing Energy Management. Number of employees: Building automation systems with more 1-10 integrated customer-side systems, us- 11-25 ing networked sensors and monitors and 26-50 incorporating data from individual systems 51-100 such as lighting and heating, ventilation and 101-500 air conditioning (HVAC). New technologies 500 include energy readers, smart appliances, and local energy storage. An important smart IEA technology areas grid application is “Demand Response”, which In the matrix, we have chosen to use the involves cutting demand through voluntary same eight main smart grid technology areas agreements with power customers. To create as defined by the International Energy a large pool of capacity to reduce peak power Agency 1 loads through demand response, utilities are turning to curtailment service providers. Each of the eight categories described in this section comprises a number of smart grid Advanced Metering Infrastructure (AMI) technologies involving various configurations The foundation of the smart grid’s two-way of hardware, software, communications and flow of data, and the key to most smart grid services. The categories extend across one or initiatives to date, is the underlying infrastruc- more stages of electric power delivery, from ture that combines smart meters, communi- generation through transmission and distribu- cations and data management. AMI involves a tion, to consumption. number of functions, including: -- smart meters, the network infrastructure The many smart grid technology areas – each to transmit data from smart meters to consisting of sets of individual technologies – the utility, and span the entire grid, from generation through -- software to compile and manage the transmission and distribution to various types massive quantities of data produced. of electricity consumers. Some of the tech- nologies are actively being deployed and are Electric vehicle charging infrastructure. considered mature in both their development Electric vehicles rely on energy storage in the and application, while others require further form of advanced vehicle batteries. Connect- development and demonstration. ing electric vehicles to the grid for battery recharging requires infrastructure to handle A fully optimized electricity system will deploy billing, scheduling and other intelligent func- tions. If charging stations allow power to flow both ways, electric vehicles can serve as a 1    OECD/IEA, 2011
  22. 22. Copenhagen Cleantech Cluster 22Appendicessource of distributed energy storage—dis- standard technologies used to connectcharging electricity back to the grid during traditional sources such as coal andhours when the vehicle is parked and peak nuclear. Because solar panels producepower is needed. direct current (DC), they require inverters to convert DC to alternating current (AC).Transmission enhancement Accommodating small-scale, distrib-Enhancement applications involve a number uted power sources such as rooftopof technologies that can make transmission solar requires different capabilities fromnetworks easier to control, maximize the grid-scale renewable sources such as atransfer of power, reduce transmission losses, concentrating solar array. Energy storageand decrease the risk of overloads. Trans- can play a key role in neutralizing theformers are devices that reduce the voltage variable nature of renewables by supply-of electricity so it can be safely distributed to ing energy at times when there is no sunconsumers. Advanced transformers reduce or wind.electricity losses compared to conventional -- The storage device itself is required,ones. New transformer designs greatly re- along with converters (rectifier inverters),duce the waste of electricity during distribu- and traditional field equipment associ-tion. ated with conventional power.Distribution grid management Wide area monitoring and controlCombines sensor technologies and automa- Helps system operators monitor, controltion to continuously: and optimize the power system over large-- maintain voltage levels geographic areas, avoiding blackouts and-- locate faults facilitating the use of renewables. Advanced-- reconfigure feeders system analytics generate data used to-- control distributed generation so that inform decisions and make systems more equipment performs optimally and out- reliable. ages are minimized. Source: OECD/IEA, 2011 and CGGC, DukeRenewable and distributed generation University, 2011integration require-- Connecting solar arrays, wind farms and other sources to power grids. This involves new products in addition to
  23. 23. Examples of products Technology category Examples of hardware Examples of software or systems IT communications technology integration Communication equipment (Power line carrier, Enterprise resource planning software (ERP), WIMAX, RF mesh network, cellular), routers, Customer information systems (CIS) relays, switches, gateway, computers (servers) C/I building or home energy management Building automation systems, smart appliances, Energy readers, energy management systems, routers, in-home displays, demand-response energy applications for smartphones and tab- enabling devices lets, demand-response curtailment services Advanced metering infrastructure Smart meters, in-home displays, servers, relays Meter data management system (MDMS) Electric vehicle charging infrastructure Charging infrastructure, batteries, inverters Energy billing, smart grid-to-vehicle charging (G2V) and discharging vehicle-to-grid (V2G) methodologies Transmission enhancement Superconductors, FACTS, High-voltage direct Network stability analysis, automatic recovery current (HVDC). Advanced transformers: High- systems. Advanced transformer asset manage- efficiency amorphous transformers, solid state ment systems transformers (under development) Distribution grid management Automated re-closers, switches and capacitors, Geographic information system (GIS), distribution remote-controlled distributed generation and management system (DMS), outage manage- storage, transformer sensors, wire and cable sen- ment system (OMS), workforce management sors, distribution management systems system (WMS) Renewable distributed generation Power conditioning equipment for bulk power Energy management system (EMS), distribution integration and grid support, communication and control management system (DMS), SCADA, geographic hardware for generation and enabling storage information system (GIS), battery management technology; energy storage: advanced batteries, systems capacitors, fuel cells, compressed air, pumped storage Wide area monitoring control Phasor measurement units (PMU) and other sen- Supervisory control and data acquisition sor equipment (SCADA), wide-area monitoring systems (WAMS), wide-area adaptive protection, control and automation Sources: OECD/IEA, 2011 and CGGC, Duke University, 2011
  24. 24. Copenhagen Cleantech Cluster 24 AppendicesTechnology company matrix Renewable and distributed genera- CI and residential building energy Advanced metering infrastructure Wide-area monitoring and control Information and communications Distribution grid management Transmission enhancement EV charging infrastructure technology integration tion integration managementTechnology companies Products and ServicesABB Energy storage, power products, power systems, discrete automa- tion and motion, low-voltage products, process automation, servicesActua Software for control of Smart GridAlcatel-Lucent Communication networks, e2e systems integration, consultancy services.Alexandra Instituttet Research based and user driven IT and process developmentAlstom Grid High-voltage products, circuit breakers, power electronics, au- tomation solutions, control room information technology, network consultancy, SCADA systems, power transformers.Amplex Low-voltage network monitor- ing, metering systems, energy management systemsBetter Place EVs and EV infrastructureChoosEV EV operator, infrastructure, charg- ing stations, EV projects, commu- nications technology, etc.Cisco System networks, IT security etc. - developing standardsCleanCharge Smart grid EV infrastructureContech Automatic Automation solutions, SCADA systems, power control, electricity installation, services and main- tenanceCoromatic IT-operational dependabilityDanfoss Inverters for photovoltaic instal- lations, heatpumps, refrigeration and air-conditioning Hardware Software other services
  25. 25. Renewable and distributed genera- CI and residential building energy Advanced metering infrastructure Wide-area monitoring and control Information and communications Distribution grid management Transmission enhancement EV charging infrastructure technology integration tion integration managementTechnology companies Products and ServicesDevelco Products A/S Energy management, building automation, load control, smart metering, grid balancing and energy awarenessEglu A/S Energy consumption control in hi- tech commercial greenhousesElectrocom Energy Registration and Smart MeteringEltel Networks Full-service supplier within meter- ing, smart grid, power supply etc.EnergyWise Heat pumps, solar heat pumpsEnterprise Green It / Energy monitoring/data collec-EGIT - JouleX tion, energy scenario simulations, energy policy registration and management within distributed network, DataCenters and facil- lities.Frichs A/S Engines and power heating systems, biogas sublimation, specialized engines, gas turbines, emergency power stations, main- tenance and servicesFuturecom Business IT systemsSolutions A/SGreenwave Reality Energy control in buildingsGridmanager Energy efficiency and man- agement, automatic demand response, load shifting and grid balancingGrundfos Heat pumps for residential build- ings, control and monitoringHoneyWell Automation and control solutionsIBM Software for EV infrastructure Hardware Software other services
  26. 26. Copenhagen Cleantech Cluster 26 Appendices Renewable and distributed genera- CI and residential building energy Advanced metering infrastructure Wide-area monitoring and control Information and communications Distribution grid management Transmission enhancement EV charging infrastructure technology integration tion integration managementTechnology companies Products and ServicesIEN Consultants Intelligent buildings, measurement analysis and control for buildingsInoPower Control systems for large scale renewable energy integration into power gridsJuniper Networks System networks, IT security etc.Kamstrup Advanced metering solutions, smart meters for smart grids, resi- dential meters industrial metersKemp Lauritzen Electricity installation, services, power enterprises, engineering, total service, high voltage and supply, transmissionKK electronic A/S Control systemsLandis Gyr Meters for grid, residential and industry buildingsLogica Full service ranging from consul- tancy to full business process outsourcing within smart grid services and solutions. Solutions include smart metering, real-time enterprise asset management and running central markets. Implementer of major third party solutions, including SAP.Microsoft Development Center IT systemsCopenhagenNeogrid Technologies ApS Solutions for remote control of consumption, aggregation + activation of flexible power consumption with special focus on controlling heat pumps, grid balancing and energy efficiency and managementNorth Q Realtime metering solutions, en- ergy saving solutions, readers for visualizing power, gas and water consumption etc. Hardware Software other services