3.19.2015 SEPA Webinar Smart Grid Germany

Helping Utilities Make Smart Solar Decisions

Solar, Smart Grid & Distribution System Operations – A View from Germany

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Speakers

Gerhard Walker Engineer Netze BW

Moderator: Bob Gibson VP, Education & Outreach SEPA Helping Utilities Make Smart Solar Decisions

Distribution System Operator as Enabler Managing fast growing Flexibilities while Maintaining Grid Stability

Gerhard Walker Technology Innovations

An EnBW Company

Who we are… The EnBW as Germanys only fully Integrated Utilities Company

Sales

Grids

› Brands such as EnBW and Yellow

› Subsidiaries TransnetBW and Netze BW

› B2C and B2B

› All voltage levels, transmission to distribution

Electricity sales in billions of kWh 51.1 Gas sales in billions of kWh 67.7 Customers in million 5.5 million Transaction Volume 9,569 million Adj. EBITDA in € million 227.1

Electricity grid lengths in km 155,000 Gas grid lengths in km 16,000 Revenue 5,708 million Adj. EBITDA in € million 961.8

Our Business Segments at a glance External Revenue 20,540 million and some 20.000 Employees

Renewables

Generation and Trading

› Hydro, Wind and Solar

› Fossil and Nuclear generation

› project development through to operation management

› Planning, building, operation and decommissioning

Installed capacity in MW 1,059 Generation in GWh 6,344 Revenue 369 million Adj. EBITDA in € million 216.4

Distribution Grid Operators as Enabler | Gerhard Walker

Generation in GWh 51,744 Installed capacity in MW 12,653 Revenue 4,886 million Adj. EBITDA in € million 834.7

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Who we are… The Netze BW, Baden-Württemberg’s largest DSO

Electricity

› Supply Points

Gas

› Supply Points

141.100

› Overall Grid Length ca. 103.600 km

› Overall Grid Length

4.800 km

› Power Distributed

ca. 48 TWh

› Concessions

100

› Concessions

620

ca. 3,0 Mio.

› Variable Energy Sources Installed Capacity

147.200 ca. 3.5 GW Ca. 3800

Employees

Water

Services

› Fresh Water Supplies

› Lightning

› Infrastructure and Planning

› Infrastructure › Telecommunications › District heating

Distribution Grid Operators as Enabler | Gerhard Walker

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Who we are… Same but Different, Unbundling in Germany

Market and Grid Segments

Market

Cooperate Unbundling

Generation / Trading

› Different buildings › Separate service contractors › Regulatory oversight on Interactions

Monopoly Transmission / Distribution

Vertical Integration Information Unbundling › Separate IT infrastructure

Market

Sales

Distribution Grid Operators as Enabler | Gerhard Walker

› Restricted and transparent flow of information

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Distribution System Operator as Enabler Managing fast growing Flexibilities while Maintaining Grid Stability

1. Major Energy Trends in Germany 2. Challenges for the DSO 3. Innovations at the DSO 4. Data and Data Acquisition 5. Innovative Grid Components 6. Managing Flexibilities 7. Smart Home, Smart Market, Smart GridConclusions

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1. Major Energy Trends in Germany Nuclear Shutdown and Decentralized, Renewable Generation

Energy Mix EnBW 135,4 TWh 2014

Renewabl e 27%

Nuclear 32%

Fossil 41%

kW per km2 ≥ ≥ ≥

0,00 - < 5,00 (1103) 5,00 - < 10,00 (1023) 10,00 - < 20,00 (1458)

Distribution Grid Operators as Enabler | Gerhard Walker

≥ 20,00 - < 50,00 (2543) ≥ 50,00 - < 100,00 (1492) ≥ 100,00 - < 2000,00 (619)

0-9 10 - 19 20 - 29

30 - 39 40 - 49 50 - 59

90 - 99

60 - 69 70 - 79 80 - 89

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1. Major Energy Trends in Germany Shrinking Residual Loads and Loss of Ancillary Services

Residual Load

Privileged Renewables Reduction of residual load

Expensive Conventional Less base load forces conventional plants off line

Distribution Grid Operators as Enabler | Gerhard Walker

Excessive Energy

Dynamic System Less rotating masses and more power electronics

Ancillary Services Increase in required ancillary services while less power plants online

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1. Major Energy Trends in Germany

Price in [Cent/kWh]

Substitution of Primary Energy Sources by Electric Power

Compensation and Price of Electricity 60

The Prosumer

› Customer is increasingly independent

50

› Amount of energy acquired from the grid drops while maximum power rises

40 30

› Increasing volatility and strong correlation to external triggers, such as weather and holidays

20 10 0

› Problems with current models for grid fees PV-Compensation

Price of Electricity

First Grid Parity

Second Grid Parity

› Electricity is costs more than renewable compensation covers

› Renewable power competes with natural gas prices (~ 5ct/kWh)

› Optimization towards maximum self consumption

› Installation of heat pumps direct electric heating systems

 Smart Home Systems  Storage Units

Distribution Grid Operators as Enabler | Gerhard Walker

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1. Major Energy Trends in Germany New Players and Markets

Dynamic Pricing and Flexibilities

Virtual Power Plants

› Spot market price ranges from +300 Euro/MWh to -200 Euro/MWh

› Aggregation of flexibilities to reach market capable volume

› Sales increasingly interested in managing flexibilities to increase arbitrage on markets

› No representation of actual grid parameters › Open market allows for several, parallel players in one grid section

› Simultaneity factors on the rise

Smart Homes

Distribution System Operator

Consumer Flexibilities

› Interface to the customer

› Electric Vehicles

› Gets price signals of directly communicates with VPPs.

› Heating Systems

› Not part of the regulated system of the DSOs

› Renewable Generation

Distribution Grid Operators as Enabler | Gerhard Walker

› Battery Storage

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2. Challenges for the DSO Increasingly volatile load flow

Parameter

Implications

1

› Increased generation pushes components past their limits

Current

› Fluctuation direction of load flow through renewable generation poses challenges for the power system protection and management

2

› The distribution system was designed to compensate loads

Voltage

› Voltage compensation is increasingly difficult, as high load and high generation sections in a distribution grid distort voltage regulation capabilities by sub-stations

3

› Volatile generation makes balancing the grid an increasingly difficult task (TSO)

Frequency

› DSO expect an active role in Frequency control in the future through implementation of rules and regulations for generation and loads

4 Outage

› As a regulated company, DSOs receive financial punitive measures when e.g. outage times increase past certain levels › Faults in the distribution grids have to be identified and resolved quickly

Distribution Grid Operators as Enabler | Gerhard Walker

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3. Innovations at the DSO Technology and Innovations for the DSO of Tomorrow (1/2)

› Heading of all grid related innovation projects › Analysis of trends and developments in the energy sector and development of scenarios and cooperate directions › Identifying, testing, developing and evaluating of innovations › Strong interconnection with universities and industry partners › Political representation of the Netze BW on all topics surrounding grid innovations.

Distribution Grid Operators as Enabler | Gerhard Walker

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3. Innovations at the DSO Technology and Innovations for the DSO of Tomorrow (2/2)

Niederstetten

Decentralized intelligent power management Systems In-Line Voltage Regulator

Demand Side Management Prognosis and Smart Market

Boxberg

Communication Technologies

Freiamt

Demand Side Management with consumer clients

Grid Monitoring

Smart Grid Components

Electric Mobility Adaptable Distribution Transformers

Weinstadt

Integration of fast charging infrastructure and reactive power management systems

and Smart Stations Smart Meters and Grid Analysis

Solutions for high level solar power integration into low voltage grids

Sonderbuch

Intelligent (reactive) Power System Management

Energy Storage Distribution Grid Operators as Enabler | Gerhard Walker

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4. Data and Data Acquisition What, When, Where?

Scope Analysis and Requirements Engineering

Development of a technical and organizational concept

Deployment of the concept into all subsidiaries

Metering Point Operator

Automated Processes

Real time consumption information

Optimized procurement of Energy

Demand and supply management

Smart Grid Management

Increased Efficiency

Platform for new products and services

PV-Unit

Smart Meter OS -Admin -Measure -Control

Smart Home Gas Meter

Smart Meter Control Unit

Communication

Roll-Out of smart meter and gate way devices

New Products and Services for consumer

Gateway

Heat Pump

Flow of Data

Increased knowledge and better options for control during grid operations Distribution Grid Operators as Enabler | Gerhard Walker

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4. Data and Data Acquisition Communication

Sub-Stations

Distribution Transformers

Metering Points

Customers

Fiber-Optics Network

Broad Band Powerline In order to maintain cold start capabilities and eyes in the grid during 100% of the time, the infrastructure needs to be buffered for an extended period of time and highly reliable. Powerline repeater in a cable distribution cabinet

CDMA 450 Wireless

Siemens Powerline Smart Meters

Cellular Networks CDMA coverage tests for ROMI

Deployment of specialized communications infrastructure for varying purposes Distribution Grid Operators as Enabler | Gerhard Walker

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5. Innovative Grid Components Smart Distribution Station, Foundation for Flexible Grids Measuring and Tele-Control Technologies

› ›

Current values for voltage, current, real and reactive power Communications interface to the grid control center for transmitting values and control commands

Fault detection and restoration of operational status



Directional short circuit and earth fault detection allows for easy and fast locating of faults.



Tele-Control contactors reduce down time in case of fault or operational switching.

Voltage regulator



Each Smart Distribution Station can accommodate an adaptable distribution transformer.

Increased knowledge and better options for control during grid operations Distribution Grid Operators as Enabler | Gerhard Walker

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6. Managing Flexibilities Demand Side and Feed-In Management

AC

Electric Mobility DC AC

Feed-In Management Current Feed-In Management is a temporary solution. 100%-70%-30%-0% Steps

PV-Installations DC

Smart Meter

AC DC

Heatpump, AC, Storage Heaters, Water Heaters

Demand Side Management Improved integration of variable renewable generation (Load follows generation)

AC

Battery Storage DC Grid Modul

Unit Control Smart Home System

Smart Grid Monitoring to prevent overload situations and avert conventional grid improvements.

Flexible Non Flexible

House Hold

Distribution Grid Operators as Enabler | Gerhard Walker

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6. Managing Flexibilities The Grid Traffic Light

› Grid state estimation › Intelligent infrastructure › Feed-in management

Violation of grid limits

Red

Emergency measures with clear directives / direct intervention by the network operator. No “business as usual“

Smart Grid Smart Meter

grid limit

Closing in on grid limits DSO sets limits for sales

Yellow

Demand side management through signaling e.g. pricing Supplier Costumer or DNO Supplier

Smart Market

Stable grid conditions › Power procurement at optimal costs control energy › Virtual power plants

DSM by Supplier e.g. through pricing.

Green

No interference by the distribution network operator

Organization of the yellow light (§14a EnWG) uncertain. How do we consider both- the requests of regulated and non-regulated sector? grid reliability – accounting grid conformity – customer friendly / voluntary Distribution Grid Operators as Enabler | Gerhard Walker

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6. Managing Flexibilities The Quota Model

N-1 Reserve

Grid limits for activating of flexibilities by sales

Boundary Conditions › Sales negotiate how to meet DSO‘s conditions

Transformer Capacity

based on their customer contracts › DSO supervises load activation by sales through load flow measurements at the Quota:

substations › Quota is determined by the DSO day ahead

E.g.60%

based on load and generation prognosis

Decentralized Generation

Load Flexibility

› Errors in the day ahead prognosis need to be compensated › Information needs to be made available to all energy sales companies

Load

Distribution Grid Operators as Enabler | Gerhard Walker

› The DSO must limit sales in a nondiscriminatory manner

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7. Smart Home, Smart Market, Smart Grid Interfacing the Smart Family

Direct Access to Smart Meter Systems during red phase Activation via direct command or pricing

Smart Grid (DSO) › Grid Monitoring › Generation of specific grid traffic light signals › Adapting of grid

topology

Smart Markets › Platform for managing capacities and flexibilities › Distribution of quotas between

› Intervention on red traffic light

participants in corresponding grid sections

Large Scale Participants Quota

Smart Meter

Smart Home

› Unified interface

› Manages in

for all

home

Transactions

flexibilities

› Power Plants

› Capability for

› Maintains limits

› Industries…

multi tariff

set by Smart

metering

Meter

Virtual Power Plant › Buys and sells capacities and flexibilities

Distribution Grid Operators as Enabler | Gerhard Walker

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7. Smart Home, Smart Market, Smart Grid The Wide Area Power Plant

Transmission System Operator

Distribution System Operator › Responsible for maintaining distribution grid stability (load flow and voltage)

› Responsible for grid stability › Manages ancillary services

Wide Area Power Plant

Smart Markets

› Process for managing all players

› Offer and sell ancillary services,

within a smart grid › Interfaces for flexibilities, ancillary

services and generation capacities

Supplies overview of available products

1. Aggregates all products 2. Generates Quotas for all grid segments and products including

flexibilities and generation capacities to TSO

› All Contracts registered with WAPP

Smart Meter Smart Home

Virtual Power Plant › Buys and sells capacities and flexibilities

overlay effects

Requests e.g. ancillary services

3. Offers TSO a bandwidth for activation

Large Scale Participants › Power Plants

› Industries… Distribution Grid Operators as Enabler | Gerhard Walker

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8. Conclusion Next Steps Progresses takes place at the same time but at different speeds

› › › › ›

Addition of renewable generation Intelligent grid planning

Load management and smart markets Development of transmission grids Introduction of smart grid components

The solution to the problems occurs in two stages:

1. 2.

Technical issues will be solved utilizing a model kit system of available technologies. Load balancing will be achieved via supply management, demand side management, Power-2-Gas and energy storage systems….

The speed at which we can accomplish the „Energiewende“ will not be determined by how fast we can build new renewable generation sources, but by how fast the grid can adapt to the new challenges. Distribution Grid Operators as Enabler | Gerhard Walker

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Thank you for your Attentions Questions?

Gerhard Walker › Contact Information  E-Mail:  Phone:

[email protected] +49 711 289 83203

Distribution Grid Operators as Enabler | Gerhard Walker

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Q&A

Gerhard Walker Engineer Netze BW

Helping Utilities Make Smart Solar Decisions