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21st May 2014 Smart  Grids: 21st May 2014 Smart  Grids:

21st May 2014 Smart Grids: - PowerPoint Presentation

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21st May 2014 Smart Grids: - PPT Presentation

Increasing energy flexibility John Scott j ohnscottchilternpowercom Economic and Policy Forum Meeting Very briefly My background Electricity Distribution amp Transmission planning and operations ID: 626393

smart amp network power amp smart power network grid system distribution data energy demand generation grids electricity networks loss

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Slide1

21st May 2014Smart Grids:Increasing energy flexibilityJohn Scottjohn.scott@chilternpower.com

Economic and Policy Forum MeetingSlide2

Very brieflyMy background:Electricity Distribution & Transmission planning and operationsManager of the UK National Control CentreEngineering Director of National Grid Company in UKTechnical Director for Ofgem, the GB Energy RegulatorDirector, Network Innovation for KEMA Consulting Ltd

Independent Consultant, Chiltern Power LimitedIET: Institution of Engineering & Technology – Energy Policy PanelSlide3

What characterises today’s power grid in GB ?Slide4

GB Electricity TransmissionCommodity type Market

Customers (homes)

~28m

Generation Capacity

76

GW

Peak Demand

~60 GW

Annual

electricity consumption

~ 300TWh

Regulated NetworksTransmission Max Voltage 400 kV1 System Operator + 3 Trans. OwnersDistribution Max Voltage132kV14 Licenced Distribution areas (6 companies)Slide5

GB Electricity Distribution Network Owners 20136 Owners but 14 Licensed DNOsElectricity distribution carries electricity from the transmission system and delivers it to consumers.

Typically, it includes 132kV, 33kV and 11kV power lines, substations and

transformers, and low-voltage (230/415 V)

distribution wiring.In GB it does not include meters.Slide6

TODAY’S GRID CHARACTERISTICS

BUSINESS AS USUAL

Home

Local

Commercial

Regional

National

Largely passive,

domestic users

Few intelligent

appliances

LESS DATA, LESS INTELLIGENCE, LESS CONTROL

Good sensors

Real time data

Advanced

processing

2 way data

Sparse sensors

Limited data

Limited processing

Limited two-way data

Sensors

hr

data

1

/

2

Retail processing

Limited one-way

meter reading

No sensors

Fit and forget

No electronic

data transfer

Manually read

dumb meters

No electronic

data transfer

One-way power

Two-way

power flows

Transmission

and Systems

Regional

distribution

Commercial

Properties

Local

distribution

Homes

Transmission is a well-instrumented active network

© The Institution of Engineering and Technology 2011Slide7

It’s all well established, so what’s changing, why are ‘smarter grids’ on the agenda?Note - Google offers 3 million references for ‘smart grid’(and 35 million for ‘smart meter’) Slide8

The great centralised grids of today…

are largely

one-way

systems

RESIDENTIAL

DEMAND

DISTRIBUTION

NETWORK

TRANSMISSION

NETWORKCENTRALISEDGENERATIONDISTRIBUTIONNETWORKDISTRIBUTIONNETWORKRESIDENTIALDEMANDRESIDENTIALDEMANDRESIDENTIALDEMANDOne-way power flowsRemote generationLittle communicationsLimited automationA mainly passive networkDelivering electricity to passive consumers

The traditional paradigm:

“Generate what is Consumed”

acknowledgement

Generation must always match Demand: there is no storage in the networksSlide9

The great centralised grids of today… the challenges ahead

acknowledgement

Off-shore and on-shore

wind generation

Distributed Generation: central & dispersed

Ageing networks

EV charging

PV small and large scale

Heat Pumps & Air Con

E

nergy

losses

Q

uality

of supply & resilience

Customer energy

efficiency & smart meters

New hydro & marine

New nuclear with larger single loss risk

Demands AND sources

Network

loading & voltage limits

Less- predictable loading

Less- predictable generation

More complex system balancing

Two-way power

flows & raised FLs

Loss of demand diversity

Network stable operation

Lower inertia power system

Larger single loss

Larger single loss: 1320 (Size B) increased to 1800 for new nuclearSlide10

The great centralised grids of today… the solution opportunities ahead

Smart Vehicle Charging

Home automation

Plus

Hearts & Minds…..

But now, within a

new paradigm:

“Consume what is Generated”

acknowledgement

Power Electronics

Active Distribution NetworksReal time ratingsCondition Monitoring‘DR’ Demand ResponseSmart metering & displaysElectricity StorageSynthetic InertiaNew materialsAggregation & VPPDC embedded & interconnectionDemands AND sourcesNetwork loading & voltage limitsLess- predictable loading

Less- predictable generation

More complex system balancing

Two-way power

flows & raised FLs

Loss of demand diversity

Network stable operation

Lower inertia power system

Larger single loss

Generation must match DemandSlide11

Demands AND sourcesNetwork loading & voltage limits

Less- predictable loading

Less- predictable generation

More complex system balancing

Two-way power

flows & raised FLs

Loss of demand diversity

Network stable operation

Lower inertia power system

Larger single loss

A new architecture for the power system

Smart Vehicle ChargingHome automationPlus Hearts & Minds…..Power ElectronicsActive Distribution NetworksReal time ratingsCondition Monitoring‘DR’ Demand ResponseSmart metering & displaysElectricity StorageSynthetic InertiaNew materialsAggregation & VPPDC embedded & interconnectionNetworks for sustainability & security.… the smart grids of tomorrow

acknowledgement

Customer Engagement

The Smart Grid Concept

Bi-directional power and information flowsSlide12

How might these flexible ‘smart grids’ interact with the Built Environment? Slide13

Network Solutions - all voltage levelsA Wide Range of Potential Solutions: Built Environment linkages are highlighted here

The Smart Grid Concept

Bi-directional power and information flows

D-FACTS, STATCOMS, power electronic

controllers for voltage management

Solid State tap

changers (

inc

11kV/LV)

Interconnection of D-STATCOMs to create a controllable DC network overlay

DC networks

in homes and buildings, grid networks with multi-terminal systemsSuperconducting and other designs of fault current limitersSoft Open Point power electronics at LVIntelligent switching logic and adaptive protection and controlPower electronics for synthetic inertiaSolid State transformersSmart EV charging for homes, streets, car parks, intelligently co-ordinatedEV charging: contact-less & mobileCyber-secure communications and interfacesWaveform cleaning and phase balancingElectricity storage: interfaces, home and community scalePotential for hydrogen production and storageMicrogrids for storms resilience with intentional islanding utilising DERsPhasor Management Units (PMUs) andWide Area Monitoring, Control and protection (WAMPACs)Forecasting, modelling and visualisation for planning /operational timescalesState Estimation for network observabilityActive Network Management (ANM)Home/Building Energy Management Systems, Smart Meters & DisplaysCustom Private NetworksHybrid technologies including hydrogen, heat and gasSmart Communities, Smart Cities and the Internet of ThingsSlide14

However, there is another pressing agenda for the power grid…Slide15

Adequacy of GB generation capacity?Closure of non-FGD coal stationsNew nuclear build still not confirmedRenewables are incentivisedEMR not yet completeBarrage / Lagoon proposalsDe-mothballing?New CCGT??Shale gas???

National Grid contingency actions

(i.e. WITHOUT RENEWABLES)Slide16

Renewable power sources?Renewables are growing in total capacitySome 20GW peakIn 2013 renewables delivered 14% of GB energy useToday, dependent on the wind and sunImportance of forecasting, interconnectors, geographic spread and, in the future, demand flexibility and storage.Slide17

Will Smart Grids and new flexibility really happen, do the costs/benefits stack up?Slide18

Developments in GB:The Smart Grid ForumShaping a shared Stakeholder ViewThe DECC/Ofgem Smart Grid Forum was established in April 2011DECC – the UK Department of Energy & Climate ChangeOfgem

– the GB electricity and gas regulator

Identify future challenges

for electricity networks;

Guide the actions

of Government/Regulator;

Identify actions to

facilitate the deployment

of smart grids

;

Facilitate

the exchange of information and knowledge;Help stakeholders better understand future developments; Track smart grid initiatives in Europe and elsewhere.Slide19

Smart Grid Forum Workstream 3:Evaluating Conventional and Innovative solutions

To develop and populate a model that demonstrates the value of smart grid innovative solutions in distribution networks to address a range of low carbon scenarios

The model is generic - it does not know network connectivity or calculate load flows or voltages

I

t does reflect the characteristics of the DNOs networks across GB

It does examine alternative investment strategies

Many modelling parameters are user-definableSlide20

The Headline modelling results20Smarter strategies appear most cost effectiveSummary of Present Value of gross totex of distribution network investment (2012-2050) Slide21

21‘No Clustering’ could reduce costs by 60%

2

nd

generation EVs could increase costs by 50%

A 5% change in the reinforcement threshold could increase costs by 40%

Some Sensitivity CasesSlide22

But….Slide23

The IET’s warning flag…… and its challenges to the power sectorSlide24

The IET Position Statement

The December 2013 Position Statement summarises ground-breaking work

A classic problem of an ‘invisible’ risk because it grows incrementally

There is evidence already of changing GB system behaviours - hence The IET’s call for actionThis is not a panic message, but solutions will require sustained effort and fresh thinking

Indeed, a ‘shock to the system’ after 80yrs of grid development

The work here is at a scoping level, not determining solutions.

The Power Network Joint Vision (PNJV) Position Statement and Report are available at

www.theiet.orgSlide25

The GB view: Material Changes Ahead

The graphic summarises the rising complexity anticipated for our power networks

The scale of change is no longer incremental and will move the power network significantly beyond the bounds of its original Systems Engineering

Best practice in other sectors ensures a ‘Whole Systems’ approach through the role of a

System Architect

But no party has this role in today’s industrySlide26

What is Ofgem doing to incentivise network innovation?Answer: more than any regulator world-wide!Slide27

The Low Carbon Networks Fund A new regulatory incentive to stimulate smart grid

deployment

Tier 1 funding

of £16m per year

is allocated

between all DNOs (according to customer numbers) on an annual basis. This allocation will allow each DNO, with minimum bureaucracy, to undertake several small scale projects. Customers will fund a maximum of

90%

of the cost of projects.

£500m over 5

years (2010-2015)

for bold network innovation projects

Tier 2 funding a significant amount comprising £64m p.a. to encourage a small number of ‘flagship’ projects. Funds will be held centrally, with DNOs competing for funding. After 2015, these incentives will become the NIA Network Innovation Allowance, and NIC Network Innovation Competition Slide28

European ComparatorsSmart Grid Projects 2012

Excellent messages for GB’s positioning in Europe

A strong platform for innovators, exports and growth?Slide29

A Practical Example of smart grid innovationSlide30

An example: UKPN ‘Flexible Plug & Play’Ackg’t: Sotiris Georgiopoulos, UKPN(33kV network)Slide31

An example:UKPN ‘Flexible Plug & Play’Ackg’t: Sotiris Georgiopoulos, UKPNAn Active Network Management system (ANM)Slide32
Slide33

Where might all this be leading?Is this in fact pointing to bigger changes than smart and flexible electricity….Slide34

The Direction of Travel?

Smart Community

Smart Grids

Smart Transport

Smart Customers

Smart Buildings

E-Health Care

Energy StorageSlide35

The Direction of Travel?Communications Everywhere

Intelligent Processing

Big Data Analytics

Peer to Peer

“The Internet of Things”

Sensors Everywhere

Communities & Collaboration

…Digital

Cities

…Intelligent Cities

…Smarter Planet (IBM)

…Digital Urbanism (CISCO)…Sustainable Cities (Siemens)Producer/ConsumersProsumersSlide36

The Consequences?Connecting Everything with EverybodyMassive cost savings, new services and convenience

Plus some new risks and opportunities for misuse….

“The Internet of Things”

Nearly Free Goods and Services:

”Close to Zero Marginal Costs”

If so, o

ur

traditional economic model (competition by price) can no longer be dominant

‘Nearly Free’ is a

lready

with us:

Non-profits, publishing, communications, information, 3D-printing, on-line higher education (MOOCs), Apps for smart phones, car sharing, spare room sharing…..renewable energyA New Economy is ahead:A hybrid of Collaborative Commons + Capitalism.What impact for Business?12Communications EverywhereIntelligent ProcessingBig Data AnalyticsPeer to PeerSensors EverywhereCommunities & CollaborationProducer/ConsumersProsumersSlide37

The Characteristics“The Internet of Things”Communications Everywhere

Intelligent Processing

Big Data Analytics

Peer to Peer

Sensors Everywhere

Communities & Collaboration

Producer/Consumers

Prosumers

SHARING ON A MASSIVE SCALE

ENERGY

LOGISTICS

COMMUNICATIONSMORE ABOUT ACCESS THAN OWNERSHIPBUILDING SOCIAL CAPITALENTREPRENEURIAL OPPORTUNITIESSUSTAINABLE QUALITY OF LIFEOPEN & DISTRIBUTED BUSINESSMORE ‘QUALITY of LIFE’, LESS ABOUT ‘GDP’‘NET NEUTRALITY’OPEN, DISTRIBUTED, COLLABORATIVEACCESS FOR ANYONE, ANYWHERE, ANYTIMESlide38

A growing body of work…Watch his lecture from the RSA in London: http://www.thersa.org/events/audio-and-past-events/2014/a-world-beyond-markets

Delong & Summers, The New Economy

Univ

of California, Berkeley, 2001

http

://

ideas.repec.org

/a/

fip

/

fedkpr

/y2001p11-43.htmlSlide39

These changes may take decades, but they are fundamental.Q – do the construction, engineering, and technology sectors have insights to offer?If so, they must ‘reserve their rights to play’.But, do they currently have sufficient influence?Slide40

Some key messages to summariseSlide41

In SummaryThe landscape for power grids is set to change:Disruptive challenges are ahead: smart solutions will be needed

1

Whole-systems thinking is needed: a System Architect for the grid?

3

Consumer & business engagement will be key to the changes

2

We can expect

Near-Zero Marginal Prices: changes ahead for our economy

4

… real impacts for

business and wider society.Slide42

Smart Grids:Increasing energy flexibilityThank you for your attentionDiscussionJohn Scott, Director, Chiltern Power Ltd.www.chilternpower.com+44 (0) 7771 975 623Slide43

Spare MaterialSlide44

Is today’s framework creaking already?Fundamental design changes require a whole-systems view: but no one has accountability as the System ArchitectRising inter-dependencies and complexity: electricity, heat, gas, comms

, big data, transport, and consumers at scale

The skills deficit: future support for customers, clients and supply chains

The consultation burden from DECC and Ofgem (now 1/week from DECC, 4/week from Ofgem)

Short termism

: electoral cycle times & the Senior Civil Service rotational system

Is there sufficient strategic capability?Slide45

Hannah Nixon (Joint Chair) Ofgem Sandy Sheard (Joint Chair) DECCMike Calviou National Grid Dave Openshaw UKPN (DNO)Steve Johnson

ENWL (DNO) Phil Jones CE Electric (DNO)

Mark Mathieson SSE (DNO & TO)

Chris Harris RWE nPower Ashley

Pocock

EDF (Supplier)

Tim

Rotheray

CHP Association

John Scott Chiltern PowerJudith Ward Sustainability First Jim Sutherland Scottish Power (DNO)Robert Symons WPD (DNO)An open selection process for membership was run by the Government/Regulator jointlyMembership List (by invitation)at April 2014Yselkla Farmer BEAMA Chris Welby Good Energy John Mulcahy British Gas Gavin Jones Electralink Duncan Botting PB Power Steve Unger Ofcom Nick Jenkins Cardiff University Ben Davison OLEV (EVs)Sarah Bell DSR Coalition