Looking forward to Smart Grids

Master en Energías Renovables Distribuidas.
Antonio Moreno Muñoz
Introduction to Smart Grids

207/03/15 Antonio Moreno Muñoz. Área de Electrónica. Universidad de Córdoba.
■ Population growth
7.5 bill. in 2020 (+1.1 bill.)
■ Megacities (>10 mill. people)
27 megacities by 2025
Scarce resources
■ Geopolitics
70% of global oil and gas
reserves are located in just
a few countries
■ Oil price fluctuations
Climate change
■ Climate goals
Political programs aimed at
long-term reduction in
CO2 emissions
The world is changing
Source: UNO
Rising
energy consumption
Due to efficiency increases:
Growing electrification of
society
Growing
demand for
“clean” electricity
Demographic dynamics

What is happening?
CO2
emissions
contribute to climate
change, which impacts
water systems.
Energy production results
in CO2
emissions.
Water is needed to
generate energy and
energy is needed to
provide water.
WATERWATER
CARBONCARBONENERGYENERGY
 Organizations will need to optimize their use of energy and water and minimize GHG
emissions.

Energy crossroads
Unsustainable modelUnsustainable model Growing demandGrowing demand
• 45% increase
in primary energy demand
forecast → 2030
• Emerging countries: 70%
of expected increased demand
• Universal right to
development.
• 1,600 million people
without access to electricity
• 2.000 million people
without access to
commercial energy
ENERGY:
Crisis or
opportunity?
• 80% based on
fossil fuels.
• With limited reserves
(peak oil expected
in 10-20 years).
• Concentrated in unstable
countries: geo-strategic
insecurity of supply.
• Volatile prices.
• Climate change.
An unsustainable panorama

The EU's 20-20-20 goals
-20% -20%
20%
Primary energy use Greenhouse gas
emissions
Renewable
resources
Efficiency Renewables
The EU set a series of demanding climate and energy targets to be met by 2020 in order to
strengthen competitiveness, to increase energy security and to combat climate change

The global utilities industry faces a number of fundamental changes that are transforming
the industry landscape
Key drivers for change

Trending insights.

The energy value chain is evolving from a
traditional model …
Consumer
Power Flow
Periodic Information Flow
Continuous Information Flow
Coal/Natural Gas
NuclearHydroelectric
UTILITY

…. to a modern, transformed and powerful
value chain
Consumer
Power Flow
Solar
Wind
Wind
Hydroelectric
Solar
Nuclear
Wind
Energy Storage
Energy Storage
UTILITY
Plug-in Vehicle
Coal/Natural Gas

Market forces are creating the need for
an evolution in the energy sector.
Solar
Wind
Solar
Wind
Hydroelectric
Solar
Nuclear
Wind
Energy Storage
Energy Storage
Energy Storage
UTILITY
Plug-in Vehicle
Consumer
Power Flow
Coal/Natural Gas
NuclearHydroelectric
UTILITY
TRADITIONAL TRANSFORMED
Coal/Natural Gas

What can be done?
ENSURING CLEANER ENERGY SUPPLY
Meeting stringent greenhouse gas
emissions targets
while maintaining sufficient, cost-effective
power supply.
TRANSFORMATION OF THE GRID
Transforming the grid from a
rigid analog system to
a dynamic and automated
energy delivery system.
EMPOWERMENT OF CONSUMERS
Empowering consumers by providing
them with near
real-time, detailed information
about their energy usage.
ENERGY ANDENERGY AND
UTILITIESUTILITIES
To deliver power more responsibly and more efficiently, energy and utilities organizations
are working toward a smarter energy value chain.

New capabilities to redefine the relationship
between utilities and end-users
CONSUMERS UTILITIES
Take advantage of variable
pricing by purchasing
electricity when it’s cheapest.
Generate their own
electricity and sell it
back to the grid.
Decrease carbon
emissions by choosing
clean electricity
sources.
Automatically monitor
the health of the grid.
Remotely sense
damage to grid
assets and dispatch
repair crews.
Better predict demand
and manage supply
accordingly.

Smart Grids
Informal Energy Council, Seville, 15 January 2010 The Spanish Presidency of the
European Union, Main topics for the European Energy Action Plan 2010-
2014:
• “The EU has defined six large interconnection and external connection
projects, considered essential to guarantee its EU energy security”.
• “It should also be possible for interconnection networks to be considered as
Smart Grids. Transition may be needed towards this new concept. The
networks thus drawn up will need optimally to match supply and demand in
real time and will be most useful for specifically decentralized or intermittent
generation, or for electric vehicle needs.”
• “Information technologies and communication (ITC) will play an
indispensable part in the management and control of the transport,
distribution and access system.”
The ambitious EU target for the year 2020 include 20% reduction in greenhouse gas emissions, 20% EU
renewables share and 20% savings in consumption by improving energy efficiency

What is the Smart Grid?
• Although there is no standard global definition, the EU’s Smart Grids
Technology Platform (www.smartgrids.eu) defines Smart Grids as:
 “electricity networks that can intelligently integrate the actions of all
users connected to it - generators, consumers and those that do both – in
order to efficiently deliver sustainable, economic and secure electricity
supplies”.
• But what does this “smartness” mean?
 Rather than a recipe for specific implementations, the “smartness”
provides a conceptual framework that defines new criteria for the design
and implementation of a reliable power delivery grid.
• Other initiatives:
 http://intelligrid.epri.com/
 http://www.oe.energy.gov/smartgrid.htm
 http://www.environment.gov.au/smartgrid/

Today’s Grid
Before
 One-way limited communication
 One-way power flow
 No electric vehicles
 Centralized generation
 Few sensors and analog control
 Little to no consumer choice
 Reactive maintenance
 Limited usage transparency

Tomorrow's Grid
 Bi-directional communication
and metering
 Bi-directional power flow
 Millions of electric vehicles
 Applications
 Pervasive monitoring and digital control
 Self-monitoring & high visibility
 Many consumer choices
 Condition-based maintenance
 Proliferation of numerous applications
Power
After
Information

Role of the Smart Grids
Smart Grids are about building, operating and maintaining the future electricity networks by:

Value Chain
 The customer has more to offer in reciprocal
value to power providers and other
participants than just payment for energy
 At the same time, customers are becoming
more demanding.
Emerging industry value model:
Value to customers (continuous)
 Power
 Reliability
 Universal service
 Environmental
impact reduction
 Cost saving
 Personalization
 Power
 Reliability
 Environmental
impact reduction
 Cost saving
 Personalization
 Information
 Services
 Revenue
 Information
 Services
 Revenue
 Information
 Services
 Environmental
impact reduction
 Revenue
 Information
 Services
 Environmental
impact reduction
 Revenue
 Information
 Personalization
 Services
 Cost savings
 Environmental
impact reduction
 Information
 Personalization
 Services
 Cost savings
 Environmental
impact reduction
 Revenue
 Information
 Connections
/ personal
networks
 Revenue
 Information
 Connections
/ personal
networks
 Power
 Demand
response
 Power
 Demand
response
Reciprocal value from
customers (intermittent)
Third- party product/
service providers
Traditional industry value model:
Value to customers
(continuous)
 Revenue Revenue
Reciprocal value from
customers (intermittent)
 Power
 Reliability
 Power
 Reliability

While the traditional value chain stopped at the meter to the premises, the new value chain will
integrate devices beyond the meter and the actions of customers themselves.
End-use
customers
Power
distribution
Energy
service
(retail)
Power
transmission
Power
generation
and trading
Electric
devices and
appliances
End-use
customers
Power
distribution
Energy
service
(retail)
Power
transmission
Power
generation
and trading
Electric
devices and
appliances
Distributed resources (generation, storage, electric vehicles)
Traditional electricity value chain
Emerging electricity value chain
Information and
services
platform owner
Information
devices
and appliances
Information
services
Power flow
Information flow
Value Chain

What the Smart Grid does not mean?

The roles in a Smart Grid market

Benefits of the Smart Grids
Smart Grids employ intelligent monitoring, control, communication, and self-healing technologies in
order to:

Challenges of the Smart Grids
From this perspective, there are certain clear needs that emerge, essential to the future
success of this initiative:

Service&End-to-endSecurity
Grid and
Enterprise IT
Grid Application
Demand Response (DR)
Grid Operation
GenerationGeneration TransmissionTransmission ConsumptionConsumptionDistributionDistributionRail
Electrification
Rail
Electrification
Field Devices
(Sensors,
Controllers, RTUs
IEDs, PMUs)
Protection Sensors
AMI/AMR
Smart Meters
Power
Quality
Communication
and Automation
CommunicationAutomation / SCADA
Virtual Power Plant
Outage Mgmt & rest.
(OMR)
Meter Data Mgmt.
(MDM)
Big Data Analytics, IT integration, Energy Trading and Risk ManagementBig Data Analytics, IT integration, Energy Trading and Risk Management
Smart Grid building blocks
Distribution Mgmt.
Sys. (DMS)

Advanced Meter Infrastructure
• Meter
• Head-End Device
• Meter Data Management System (MDMS)
• Communications Layer
• Home Area Network
Transmission & Distribution Network
• Communications Layer
• Data Historians
• SCADA RTU
• Substation Assets (not managed by
SCADA)
• Electrical Grid Field Assets (downstream of
substation)
Power Generation
• Fossil / Nuclear plant devices monitoring
(Non-Operational)
• Distributed Generation Communications
Layer
• Distributed Generation Assets (Wind,
Solar, Hyrdo, Diesel)
Central
Generation
Transmission
Network
Substation
Distribution Network
Residential
Customer
Commercial
Customer
Distributed
Generation
Renewable
Generation
Mobile
Workforce
Data Communication Network
1
4
4
4
2
2
3
3
4
1
4
1
5
5 5
1
2
3
4
5
1
23 4
55
5
1
2
1
2
3
1
2
2
3
3
1
Integration of the physical and digital
instrumentation systems
Utility Operation Center

PHEV
Natural Gas Engine
Wind Energy
Solar Energy
DC/AC
Inverter
Fuel Cells
Battery Storage Ultra Capacitor
UTILITY GRID
DC/AC
Inverter
DC/AC
InverterGenerator
DC/AC
Inverter
Smart Meter
Residential/ Commercial
Building
Priority LoadsPriority Loads
Micro GridMicro Grid
Control and Energy
Management
Control and Energy
Management
Generator
Transformer /CB
Distributed Micro
Energy Sources
Distributed Micro
Energy Sources
Local LoadsLocal Loads
Distributed
Storage
Distributed
Storage
Generator
Flywheel Storage
DFIG
Micro Turbine

Demand reduction is emerging to drive smart metering deployments in developed countries;
replacing operational efficiency drivers
 Efficiencies
 Grid automation
 Competitive markets
 Governance model
 Policy agenda
 Energy independence
 Demand reduction
 Renewable energy integration
Grid Efficiency Drivers
Demand Reduction Drivers
1st
Generation
2nd
Generation
3rd
Generation
Latin America,
Asia & Pacific
North America
& Western
Europe
 Growth capacity
 Electricity theft reduction
 Access
 Energy demand growth
 Reliability
Reliability Drivers
Grid Efficiency
Drivers
Demand Reduction
Drivers
Reliability
Drivers
Probable evolution scenarios

Smart Grid Roadmap
Phase 1
Phase 2
Phase 3
Smart Meter
2 way communications
Substation automation
Demand Response
Cyber security
Fault detection
Transmission network stability (PMU)
Volt/VAR management
Distributed generation
Consumer portal
Automated restoration
Predictive maintenance
Home area networks

AMI T&D DRAdvanced Metering Infrastructure Transmission & Distribution
T&D
DR
1ª
Oleada
2ª
Oleada
3ª
Oleada
AMI
T&D
DR
1ª
Oleada
2ª
Oleada
3ª
Oleada
AMI
Latam (p.e.
Brasil)
India
AMI
T&D
DR
1ª
Oleada
2ª
Oleada
3ª
Oleada
T&D
DR
1ª
Oleada
2ª
Oleada
3ª
Oleada
AMI
EuropaUSA
Momento
actual
Momento
actual
Momento
actual
Momento
actual
Volumen de
inversión
acumulado
2020 2020
2020 2020
Volumen de
inversión
acumulado
Volumen de
inversión
acumulado
Volumen de
inversión
acumulado
Fuente: Elaboración propia a partir de datos de “Smart Grid: The next Infrastructure revolution”, Morgan Stanley
Probable evolution scenarios
•Demand Response

Traditional
“One way delivery”
AMI
“Bi-directional communication“
Demand Response
“Efficient markets”
Smart grid
“Smart Bi-directional delivery”
EnergyMarketEnergyMarket
Traditional meters Traditional meters
• Automation / Self-healing
• De-centralizing storage
• Distributed generation
• Mobility / Electronic cars
• New payment solutions
• Elastic pricing
• Reducing peaks
• Reducing CO2 in generation
• Resizing distribution capacity
• Reducing operational costs
• Automated processes
• Billing on actual consumption
• Manual meter readings
• Manual processes
• Overcapacity in grid / generation
Price signals
Generation capabilities
Consum
ption
dem
and
Customer
Electric cars
Traditional services /
Estimated billing
Traditional services /
Estimated billing
Knowledge / Control of
consumption
Knowledge / Control of
consumption
Lower consumption /
New pricing products
Lower consumption /
New pricing products
Micro generation
Smart meters Smart meters
Energy StorageEnergy Storage
Utility companyUtility company
Price SignalPrice Signal Price SignalPrice SignalPrice SignalPrice Signal
Traditional SystemTraditional System AutomationAutomation Real-time BillingReal-time Billing Complex SolutionsComplex Solutions
2030+-1930 2010 20202015
Distributed generation /
E-mobility
Distributed generation /
E-mobility
Real-time changing consumption patternsReal-time changing consumption patterns
30

Smart Grids: in conclusion
Smart Homes
& Meters
Distribution
Intelligence
Grid Operation
Centers
Renewable
Energy
Plug-In Electric
Vehicles
Consumer
Engagement
"An optimal smart electricity grid would – by utilization of the latest ICT – be able to largely
control itself. That is, it would be able to accept any kind of generation source, deliver
power of any quality on demand, diagnose itself, and even heal itself through intelligent
use of redundancies“.

Master en Energías Renovables Distribuidas
Introduction to Smart Grids

Looking forward to Smart Grids

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