Keynote Jörg Jasper: Summer School on Services 2013

1. Energie
braucht Impulse
Services in Future Energy SystemsServices in Future Energy SystemsServices in Future Energy SystemsServices in Future Energy Systems
PD Dr. Jörg Jasper
EnBW Energie Baden-Württemberg AG
Karlsruhe, September 26, 2013

2. Reasons for new services in future energy systems
2
SupplySupplySupplySupply
DemandDemandDemandDemand
pricepricepriceprice
PPPP
quantityquantityquantityquantity
CapacityCapacityCapacityCapacity
TechnicalTechnicalTechnicalTechnical limitslimitslimitslimits ofofofof thethethethe gridgridgridgrid
timetimetimetime
WholesaleWholesaleWholesaleWholesale marketmarketmarketmarket andandandand gridgridgridgrid relatedrelatedrelatedrelated reasonsreasonsreasonsreasonsWholesaleWholesaleWholesaleWholesale marketmarketmarketmarket andandandand gridgridgridgrid relatedrelatedrelatedrelated reasonsreasonsreasonsreasons NewNewNewNew customercustomercustomercustomer preferencespreferencespreferencespreferencesNewNewNewNew customercustomercustomercustomer preferencespreferencespreferencespreferences
Source: Qivicon

3. Reason #1 for demand‘s future key role in electricity
market: Elasticity
The wholesale market aspect
3
SupplySupplySupplySupplyDemandDemandDemandDemand
pricepricepriceprice
pppp
quantityquantityquantityquantity
› In electricity markets,
demand is more or less
inelastic…
› The same applies for
supply when it is close
to the capacity limit
› Under normal
conditions, this is not a
problem.

4. Reason #1 for demand‘s future key role in electricity
market: Elasticity
The wholesale market aspect
4
SupplySupplySupplySupply DemandDemandDemandDemand
pricepricepriceprice
pppp ????
quantityquantityquantityquantity
› … but what happens, if
demand exceeds
supply?
› Demand will be rationed
by system operators
(rolling blackouts)
› Customers‘ preferences
(different WTP) play no
role here!
› What could we do about
it?

5. Reason #1 for demand‘s future key role in electricity
market: Elasticity
The wholesale market aspect
5
SupplySupplySupplySupply
DemandDemandDemandDemand
pricepricepriceprice
quantityquantityquantityquantity
› Solution one: subsidize
new capacity (beyond
the quantitiy the market
would have brought
forward)
› Probably not efficient…
SupplySupplySupplySupply withwithwithwith
subsidysubsidysubsidysubsidy////
capacitycapacitycapacitycapacity paymentpaymentpaymentpayment
pppp

6. Reason #1 for demand‘s future key role in electricity
market: Elasticity
The wholesale market aspect
6
› … instead it might be
way more elegant to
make demand more
elastic (i.e. make it
respond to price signals
in real time!)
› This is where the
customer comes in!
SupplySupplySupplySupply
DemandDemandDemandDemand
pricepricepriceprice
PPPP
quantityquantityquantityquantity

7. Reason #1 for demand‘s future key role in
electricity market: Elasticity
The distribution system aspect
timetimetimetime
CapacityCapacityCapacityCapacity
Import of energy intointointointo local grid
Export of energy fromfromfromfrom local grid
Consumption of
energy generated
elsewhere
consumption of energy
generated regionally
TechnicalTechnicalTechnicalTechnical
limitslimitslimitslimits ofofofof
thethethethe gridgridgridgrid
ThereThereThereThere areareareare twotwotwotwo alternativesalternativesalternativesalternatives
whenwhenwhenwhen theretheretherethere isisisis tootootootoo muchmuchmuchmuch
energyenergyenergyenergy inininin thethethethe gridgridgridgrid::::
› Switch RES generation off
(high costs, as RES not
generated is also
remunerated in Germany)
› ShiftShiftShiftShift consumptionconsumptionconsumptionconsumption (e.g.(e.g.(e.g.(e.g.
powerpowerpowerpower totototo heatheatheatheat))))
7

8. Must Run (15-25 GW)
Reason #1 for demand‘s future key role in electricity
market: Elasticity
The whole picture
Maximum load
Minimal load
Normal load
40 – 60 GW
Intermittent generation
Capacity
20 GW
40 GW
60 GW
80 GW
100 GW
120 GW
140 GW
2020
2030
Additional demand
* With 20 kW charging capacity, 10 % equivalent to 5 Mio. EVs
Too much generation!
Grid capacity sufficient?
Sufficient generation?
Sufficient grid capacities?
Smart Market
Demand reduction with
significant potential
8

9. Reason #2 for demand‘s future key role in electricity
market: new customer needs and prefereces
Different needs of customers in different ‚clusters‘
› Enjoy ‚smart energy world‘
› Ecologic values; support
‚Energiewende‘
› ‚safe autarky‘
› Reduce costs/energy
efficiency
Private
› Comply with legal
norms/standards
› Efficiency
› Green image
› Buy from a ‚one stop shop‘
IndustryIndustryIndustryIndustry////
SMEsSMEsSMEsSMEs
› Offer new products and
services to own customers
without signfificant
investment
MunicipalMunicipalMunicipalMunicipal
utilitiesutilitiesutilitiesutilities
› Green image
› ‚safe autarky‘
› Make political agenda
become reality
MunicipalityMunicipalityMunicipalityMunicipality
yesterday today increasingly tomorrow
› Supply security
› Fair prices (B2B)
› Fair prices + additional values
of benefit
› Ecologic values/sustainability
› Support ‚Energiewende‘
› Being autonomous
› Use opportunities, reduce risk
› Reduce complexity
› Keep energy costs under
control
9

10. Market
Customer‘s role is going to change…
yesterday
„consumer“
today
„customer“
tomorrow
„prosumer“
› Know-how
with energy supplier
› Know-how distributed
(supplier, customer,
others)
› Integrated co-operation of
diffferent market
participants
› Large power plants › 30 % decentral generation › Generation extremely
intermittent
› Generation follows
consumption
› Consumption supports
generation
› Consumption follows
generation
› Electricity + gas › Electricity + gas +
solutions
› Energy solutions
› Stable environment › Increasing complexity and
dynamics
› High complexity and
dynamics
time
10

11. The customer to become the key figure
11
RES
generation
Storage
Prestige
Grid data
Delivery of
electricity
Metering
data
Convenience
Demand
shift
Mobility
… but a ‚smart… but a ‚smart… but a ‚smart… but a ‚smart infrastructureinfrastructureinfrastructureinfrastructure‘‘‘‘ willwillwillwill bebebebe requiredrequiredrequiredrequired! This! This! This! This infrastructureinfrastructureinfrastructureinfrastructure isisisis nownownownow availableavailableavailableavailable....

12. 12
Smart Market
› Smart energy logistics (tariffs for load
shift)
Smart capacity markets
› To incentivise optimal use of capacity
Smart grid
› Active capacity and congestion
management
› New tariff system
Smarter metering services
› ‚Intelligent‘ metering systems
› New role of metering services
Smart operations
› Processes compatible with mass
markets
› Adjusted standards (data formats etc.)
Smarter regulatory framework
› E.g, grid regulation adjusted to smart
world
Customer
‚Smart‘ infrastructure is/will be available
Elements of a ‚smart‘ infrastructure

13. An example: EnBW‘s virtual power plant (VPP) will
combine customers‘ flexibilities and bring them to the
market
13
DegreesDegreesDegreesDegrees ofofofof
freedomfreedomfreedomfreedom inininin
› Consumption
› Generation
› Framework
conditions
Energy market
Genera-
tion
ControlControlControlControl
Con-
sump-
tion
SellingSellingSellingSelling flexibilitiesflexibilitiesflexibilitiesflexibilities inininin electricityelectricityelectricityelectricity marketmarketmarketmarket,,,, sharingsharingsharingsharing profitsprofitsprofitsprofits withwithwithwith customerscustomerscustomerscustomers....
DecentralDecentralDecentralDecentral
generationgenerationgenerationgeneration
managementmanagementmanagementmanagement
DemandDemandDemandDemand
ResponseResponseResponseResponse
SellingSellingSellingSelling RESRESRESRES
directlydirectlydirectlydirectly intointointointo
marketmarketmarketmarket
IndividualIndividualIndividualIndividual
flexibilitiesflexibilitiesflexibilitiesflexibilities
TTTTotalotalotalotal
flexibilityflexibilityflexibilityflexibility
FlexibilityFlexibilityFlexibilityFlexibility InInInIn thethethethe
marketmarketmarketmarket
CCCCustomerustomerustomerustomer
Customer:Customer:Customer:Customer:
OptimizationOptimizationOptimizationOptimization

14. Path towards introduction of the virtual power plant in
the market
14
› 20 installations at
customers
› Decision on IT-
architecture & systems
› Concept for day-ahead
control
› Buildup entire system
› Approval &
implementation of
algorithms
› 150 installations at
customers‘ homes
› Test (Simulation) in
real time environment
› Creation of product
concept, rollout
› Operation with real
market data
› Analysis
Phase 1Phase 1Phase 1Phase 1
UUUUntil15ntil15ntil15ntil15 OctOctOctOct. 2013. 2013. 2013. 2013
DesignDesignDesignDesign „„„„AlgorithmsAlgorithmsAlgorithmsAlgorithms““““ Aufbau GesamtsystemAufbau GesamtsystemAufbau GesamtsystemAufbau Gesamtsystem SMART MARKETSMART MARKETSMART MARKETSMART MARKET
Phase 2Phase 2Phase 2Phase 2
UntilUntilUntilUntil end Q1/2014end Q1/2014end Q1/2014end Q1/2014
Phase 3Phase 3Phase 3Phase 3
Until15.Until15.Until15.Until15. OctOctOctOct. 2014. 2014. 2014. 2014
Phase 4Phase 4Phase 4Phase 4
UntilUntilUntilUntil end Q2/2015end Q2/2015end Q2/2015end Q2/2015
20 20
150 150
0
200
Phase 1 Phase 2 Phase 3 Phase 4
NumberNumberNumberNumber testtesttesttest customerscustomerscustomerscustomers
› Data collection
› Finalization of
intelligent control
concepts

15. Decentral solutions – growing German market
Solutions by EnBW
Source: EnBW
EEEE----MobilityMobilityMobilityMobility
• SolutionsSolutionsSolutionsSolutions forforforfor
chargingchargingchargingcharging
infrastructureinfrastructureinfrastructureinfrastructure
• MobilityMobilityMobilityMobility----
managermanagermanagermanager////
partnerpartnerpartnerpartner
DecentralDecentralDecentralDecentral
energyenergyenergyenergy
systemssystemssystemssystems
• CoolingCoolingCoolingCooling
• HeatingHeatingHeatingHeating
• CHPCHPCHPCHP
B2C/B2B/B2GB2C/B2B/B2GB2C/B2B/B2GB2C/B2B/B2G
EnergyEnergyEnergyEnergy
EfficiencyEfficiencyEfficiencyEfficiency
• ManagementManagementManagementManagement
ofofofof energyenergyenergyenergy
efficiencyefficiencyefficiencyefficiency
B2B / B2CB2B / B2CB2B / B2CB2B / B2C
• ContractingContractingContractingContracting 1111
SmartSmartSmartSmart WorldsWorldsWorldsWorlds
• Smart HomeSmart HomeSmart HomeSmart Home
• SmartSmartSmartSmart
IndustriesIndustriesIndustriesIndustries
• VPPsVPPsVPPsVPPs
• Smart MeterSmart MeterSmart MeterSmart Meter
DDDD
AAAA
BBBB
CCCC
EXAMPLES
15

16. SystemSystemSystemSystem forforforfor futurefuturefuturefuture controlcontrolcontrolcontrol ofofofof
residentialresidentialresidentialresidential appliancesappliancesappliancesappliances
› Open System
› Producer independent
› Plug & Play
› No edificial changes
required
› Several kinds of
applications
EnBW co-founded the Qivicon Smart Home
Alliance
16

17. Smart Home 1.0 – user interface
17
› Market introduction with energy-
related issues like
› Light
› Heating
› Follow-ups
› Optimization of customer‘s own
energy consumption
› Alarm-clock-App
› etc.
› Philosophy:
› Makes energy use joyful,
interesting and more efficient

18. EnBW illumination package
18
› Define light sceneries –
spontaneously or progammed
› Create time schedules for
illumination of household
appliances
› Remote switching of
appliances
› Simulate presence at home
and optimize security

19. EnBW starter package heating
19
› Control air humidity
› Holiday function: dim heating
plus presetting function for
home return
› Remote swiching of heating
appliances

20. Project LivingLab BWe mobile:
Installation charging infrastructure in Stuttgart and region
Targets:
› development and profitable operation of a
public charging infrastructure for EVs
› Reliable and unclomplicated charging at
home
› Intelligent EV-fleet management
› Intelligent connection of vehicles and
standardisation of access
EnBW participating at 5 projects of „LivingLab
BWe mobil“
Project duration: 03/2012 – 06/2015
Partners: 35 firms and institutions
20

21. Research project iZEUS: Intelligent zero emission urban
system
Targets: connect traffic and energy systems via
trans-regional roaming and billing concepts,
decentral energy- and charging management,
development of prepaid solutions for public
charging
Project duration: 1/2012 – 7/2014
Project partners: Daimler, Opel, ads-tec,
Fraunhofer Gesellschaft,
KIT, PTV, SAP und TWT (EnBW = leading
underwriter)
Target group: municipal utilities, municipalities,
private business
Karlsruhe
Stuttgart
21

22. Competition
Traditional value-added-chain completed by new elements.
New competitors entering the market
Generation
Retail
Grids
Trading
Energy
efficiency
Logistics
Smart
Solutions
Power generating
final customers
Area networks
22

23. What our competitors offer
Sources: websites and publications
GermanyGermanyGermanyGermany
EEEE----mobilitymobilitymobilitymobility
› E-bikes
› Car-Leasing (EV)
› Car-Sharing (EV)
› Charging infrastructure
› Billing/roaming
› OEM-Partnerships
› Vehicle-to-Grid
› Inductive charging
----
----
-
DecentralDecentralDecentralDecentral
energyenergyenergyenergy
systemssystemssystemssystems
› Consultancy
› Installation
› O&M
EnergyEnergyEnergyEnergy
efficiencyefficiencyefficiencyefficiency
› Efficiency consultancy
› Energy pass
› Thermography
› Financing
› Build up contact with craftsmen
----
----1 ----1
SmartSmartSmartSmart
worldsworldsworldsworlds
› Smart Meter
› Smart Home
› VPPs
MunicipalMunicipalMunicipalMunicipal › Municipal services
1111
2222
3333
………… examples
Internat.Internat.Internat.Internat.
Existing offers
4444
examplesexamplesexamplesexamples
23

24. Example: NEXT Kraftwerke
› Next Kraftwerke GmbH is a spin-off of
Energiewirtschaftliches Institut at
Cologne University (EWI)
Source: http://www.next-
kraftwerke.de/
24

25. Concept of Deutsche Telekom for roaming and billing
of EV-charging
1111
ChargingChargingChargingCharging
planningplanningplanningplanning
› Route optimization considering existing charging
stations and charging times
EnergyEnergyEnergyEnergy
RoamingRoamingRoamingRoaming
› Authentification and authorization of user/EV
› Remote reading of charging energy consumption via TelekomTelekomTelekomTelekom
SmartSmartSmartSmart----MeteringMeteringMeteringMetering ServiceServiceServiceService
› Realtime-clearing user-supplier via roaming-module
› Transaction data transmission
MobileMobileMobileMobile
MeteringMeteringMeteringMetering › Mobile reading of battery status via Telekom SmartTelekom SmartTelekom SmartTelekom Smart----MeteringMeteringMeteringMetering
ServiceServiceServiceService
› Registration at charging station at destination
› Calculation of charging cycles by alignment with customer‘s date
book
Source: Deutsche Telekom NPE Bildungskonferenz
25

26. LichtBlick‘s ZuhauseKraftwerk
TargetTargetTargetTarget
› Decentral energy generation (electricity,
heat) for B2C from environmentally friendly
sources
OfferOfferOfferOffer
› GasGasGasGas heatingheatingheatingheating forforforfor electricityelectricityelectricityelectricity andandandand heatheatheatheat gen.,gen.,gen.,gen.,
basedbasedbasedbased on Volkswagenon Volkswagenon Volkswagenon Volkswagen engineengineengineengine
› Saves up to 20 per20 per20 per20 per centcentcentcent ofofofof expensesexpensesexpensesexpenses forforforfor
heatingheatingheatingheating
› Customer also earns by feeding in electricityelectricityelectricityelectricity
intointointointo thethethethe gridgridgridgrid (0.5 ct/kWh), excess heat
production stored
› Property of Lichtblick, no gas purchse, O&M
for customer
› Lichtblick pays monthly rent (EUR 5,-)
› CentralCentralCentralCentral controlcontrolcontrolcontrol via mobilevia mobilevia mobilevia mobile networknetworknetworknetwork
StatusStatusStatusStatus
› FirstFirstFirstFirst MoverMoverMoverMover in segment (followed by GASAG)
› CEO Gero Lücking: „business model works “
› Mid to long term target:100.000100.000100.000100.000 cutomerscutomerscutomerscutomers
› Apparent problems with implementation
› VW engines seem to reqiure more
maintenance than expected
› Craftsmen network apparently not optimal
Source: LichtBlick, Hamburger SAGA GWG
2222
26

27. RheinEnergie‘s SmartCity-conzept3333
› SmartCity Cologne is platform for all individual projects in Cologne aiming at CO2-
reduction and RES, smart technologies, E-mobility
› Project alsoProject alsoProject alsoProject also intendsintendsintendsintends totototo improveimproveimproveimprove qualityqualityqualityquality ofofofof lifelifelifelife
› In detail: Smart meters; smart street lamps, small decentral power plants,
storage, and buildings that produce more energy than they consume
Cologne,Cologne,Cologne,Cologne, 02.11.1102.11.1102.11.1102.11.11
RheinEnergieRheinEnergieRheinEnergieRheinEnergie andandandand thethethethe CityCityCityCity ofofofof Cologne willCologne willCologne willCologne will cocococo----operateoperateoperateoperate inininin technicaltechnicaltechnicaltechnical climateclimateclimateclimate protectionprotectionprotectionprotection
Quelle: Klimabündnis Köln, RheinEnergie27

28. Florida Power & Lighting (FPL) reduced 938 MW peak
loads by switching customers
Target ProjectTarget ProjectTarget ProjectTarget Project „„„„OnCallOnCallOnCallOnCall““““
› Keeping grid stable by reducing peak load
› Reduction of energy consumption
ImplementationImplementationImplementationImplementation
› VolutaryVolutaryVolutaryVolutary programmeprogrammeprogrammeprogramme forforforfor directdirectdirectdirect loadloadloadload controlcontrolcontrolcontrol
(DLC)
› """"greygreygreygrey boxesboxesboxesboxes"""" installed in customers‘ homes
for free to control certain appliances, like
› Air conditioning
› Central heating
› Swimming pool pumps
› Boilers
› Supplier entitled to swich costomer devices
during short time intervals (ususally 3 - 4
times a year), in turn pays bonus to
customers
› Customers save up to USD 137/yr.
EffectsEffectsEffectsEffects
› 2007 750.000 Customers750.000 Customers750.000 Customers750.000 Customers
› DemandDemandDemandDemand paekspaekspaekspaeks > 900> 900> 900> 900 MWMWMWMW lowerlowerlowerlower thanthanthanthan beforebeforebeforebefore
› Used successfully after hurricane KatrinaKatrinaKatrinaKatrina totototo
makemakemakemake efficientefficientefficientefficient useuseuseuse ofofofof scarcescarcescarcescarce fuelsfuelsfuelsfuels
› Suitable fundament for smart grid
implementation
Source: website, Govt. of Oregon
4444
28

29. To sum up…
› There are some good reasons for new
energy related services.
› First, there is a systemicsystemicsystemicsystemic needneedneedneed forforforfor moremoremoremore
flexibilityflexibilityflexibilityflexibility, especially due to higher RES
penetration. Here new services can
substantially enhance the efficiency of
the entire system.
› Second, there isisisis newnewnewnew demanddemanddemanddemand forforforfor energyenergyenergyenergy
relatedrelatedrelatedrelated servicesservicesservicesservices from the customer‘s
side. Perhaps, conspicuous
consumption and convenience will
become much more important in this
field than they are today.
› The infrastructureinfrastructureinfrastructureinfrastructure willwillwillwill soonsoonsoonsoon bebebebe availableavailableavailableavailable
to allow for all this.
› There areareareare lotslotslotslots ofofofof businessbusinessbusinessbusiness modelsmodelsmodelsmodels beingbeingbeingbeing
discusseddiscusseddiscusseddiscussed, new ones constantly to
emerge.
Source: EnBW
29

30. Energie
braucht Impulse
ThankThankThankThank youyouyouyou!!!!
PD Dr. JörgPD Dr. JörgPD Dr. JörgPD Dr. Jörg JasperJasperJasperJasper
Group Expert Energy Economics & Policy
Schiffbauerdamm 1
10117 Berlin
Tel.: +49 30 23455 254
Durlacher Allee 93
76131 Karlsruhe
Tel.: +49 721 63-14852
j.jasper@enbw.com