Flexibility- Answer to Uncertainty

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1 Flexibility- Answer to Uncertainty Michael Hübner Smart Grids Coordinator Austrian Ministry of Transport, Innovation and Technology ISGAN PVPS Workshop Vienna 18th May 2015

2 The Bigger Picture dynamic world with huge change processes Grand Challenges - stable drivers over the next decades. Globalisation climate change demographic development Migration differentiation and specialisation in society, social and technological networks ( big data) cultural and behavioural change (e.g. car ownership) and resulting new business models and markets.

3 Europe s Vision for an Energy Unit: Europe is the largest energy importer in the world (53% imports at a cost of 400 billion EUR). European Energy Union - EC stresses the need for a fundamental transformation of our energy systems towards the vision of a sustainable, low carbon and climate-friendly economy that is designed to last strong, innovative and competitive European companies, delivering the technology and services needed to deliver energy efficiency and low carbon technologies inside and outside Europe a European labour force with the skills to build and manage the energy system of tomorrow citizens that take ownership of the energy transition, benefit from the technologies and actively participate in the market European Union shall become no one in renewable energy.

4 High Uncertainty Calls for No-Regret-Strategies develop high efficient, flexible and affordable infrastructures enable us to adopt to actual needs and developments like new available technologies that we want to integrate or changes in society, industry and energy landscapes, changes in the environment, etc. enable us to react flexible on short time changes. E.g.: smart electricity grids- react on wheather conditions during the day, during the week; e.g.: traffic systems- react on traffic jams, etc.

5 Drivers for Change in the Energy System Picture: Smart Grids Modellregion Salzburg Energy and Climate Policy Liberalisation of Energy Markets Goals oft the EU EU Roadmap 2050: -80% CO2 Change in the Energy Systems ICT Revolution Internet of things Miniaturisation Vernetzung Trends in the society Individualisation Independency Environmental. consciousness The classical structure centralised production and distribution to distributed small consumers is going to be turned around! ( Prosumer )

6 6 Präsentationstitel Name, Abteilung Austrian R&D Strategies

7 7

8 ~ 50 Hydro Storage power plants out of them 13 as pump storage up to 730 MW ~ 30 Run of river power plants ( MW) 2800 Small Hydro power plants MW ( GWh). care for 60-65% of Austrias total Electricity Renewable Energy Technologies

9 Strong Interlinks with Neighbours: Installed Capacity in Austria: 23 GW Peak capacity used: 10 GW Year:

10 Austria: Additional Renewable Power Scheduled Until 2020* Austrian Energy Strategy: Renewable Power MW (2010) MW (2020) Hydro** Wind Biomass Solar Source: Austrian Power Grid AG * According to the National Action Plan 2010 for renewable energy Austria ** run-of-river, small hydro, storage power stations excluding pumped storage

11 Distributed Generation Example: Region of Upper Austria Substation Hydropower Thermal Power Windpower PV PV projected Source: Energie AG Netz GmbH è un evento

12 Distributed Generation Example: Region of Upper Austria Substation Hydropower Thermal Power Windpower PV PV projected Source: Energie AG Netz GmbH è un evento

13 Distributed Generation Example: Region of Upper Austria Substation Hydropower Thermal Power Windpower PV PV projected Source: Energie AG Netz GmbH è un evento

14 Austrian R&I- Strategy: Making the Zero Carbon Society Possible! [Austrian Energy Research Strategy 2010] Final Energy Demand in PJ Target for 2020: 34% Renewables in Austria Target for 2050: 85% Renewables in Austria Efficiency Renewables 14

15 From Incremental to Transformative Source: Dennis Pamlin, Senior Associate, Chinese Academy of Social Sciences, Global Advisor Slide 15 Michael Hübner Energy and Environmenal Technologies

16 Energie neu denken Modellsysteme und Modellregionen Innovation

17 Smart Grids Pioneer Regions Smart City Vienna Smart City Graz

18 proof of concept for different use- cases (Examples) Aktive Verteilernetze Building 2 Grid Consumer to Grid PV to / Vehicle to Grid 18

19 R&D Infrastructure SmartEST- Laboratory at AIT Objective: Excellent environment for R&D, testing and verification in the field of large scale DG/RES grid integration and Smart Grids applications New analysis methods include real-time Power-Hardware-in-the-loop (P- HIL) combining close-to-reality hardware system tests with the advantages of numerical simulation Implementation: Methods developed within DG-EV-HIL will be applied to the infrastrucure (SCADA) testing approaches (P-HIL) B. Bletterie, AIT,

20 Modernising the electricity grids in Europe increased flexibility of the power system to cope with the growing share of intermittent and decentralised renewable generation, and managing the complex interactions among millions of energy resources. cost-efficiently enhancing available network capacity to deliver energy over longer distances, to support increased flows from renewables and those resulting from the integrated energy market. providing the information, services, market architectures and privacy guarantees to support open markets for energy products and services and to activate the participation of consumers in energy markets. The modernisation of energy networks also needs to maintain or enhance service quality, reliability and security and to mitigate capital and operational costs.

21 Smart Grids as a Cost Damper the challenge is immense: according to the International Energy Agency (IEA), no less than 1.3 trillion of investment is needed by 2025 in the global electricity sector for power generation, transmission and distribution. Approximately 1/3 for grids, of which 2/3 for distribution grids. Smart Grids can act as a cost damper! Austrian Smart Grids Showcases in Salzburg, Upper Austria and Vorarlberg have shown, that in some cases smart grids solutions can bring down investment cost by up to 50%. At the same time enabling much more flexible and future proof networks.

22 Cooperation is Key 2015 ERA-Net Smart Grids Plus

23 Innovation is needed to address these challenges, innovation is needed in system integration, interoperable technologies, services, tools, co-ordination schemes, business processes, market architectures and regulatory regimes to plan, build, monitor, control and safely operate end-to-end networks in an open, competitive, decarbonised, sustainable and climate-change resilient market, under normal and emergency conditions. potential synergies with different (supply-) infrastructures (as the built environment, other energy networks, telecommunication networks, water and sewage networks, etc.) should be taken into account. Future convergence of technology- and application areas should be anticipated. essential design principles like security and privacy, system- resilience, energy and resource efficiency of equipment, systems and components shall be integral part of the developed solutions as well as the implementation of future proof technologies and systems with respect to potential risk of lock-in effects of early deployment. interdisciplinary, inter-sectoral, complex innovation process

24 Three level Approach (ERA-Net Smart Grids Plus) Stakeholders / Adoption -overcoming; why do we or don t we do it? goal: overcome barriers to massive user adoption research targets: people, community, stakeholders, society typical topics: innovation and transition, consumer acceptance, prosumer interaction, education, policy, retail, community/society, human behaviour, privacy, busines modelling methods european scope, social research, etc. Marketplace - structuring; how do we organize it? goal: create solutions for energy market participants to leverage smart resources across national borders and participate in changing energy market structures research tergets: goods and services typical topics: (retail market and interfaces, busines modelling methods, standards, abolition of barriers between member states, prosumer interaction, forecast, demand side management, integration of microgrids, flexibility, energy exchange with neighbours, economic research, etc.

25 Three level Approach (cont.) Technology - enabling; which technology do we need? goal: Develop innovative technological concepts for sustainable energy systems Bring these solutions towards a transnational Proof of Concept and possibly Demonstration Try to bridge the valley of death by accompanying measures such as solving practical implementation issues or studying the potential and barriers for the innovative technologies in question. research targets: (energy and ICT) technology typical topics: energy storage, high-voltage direct current, power quality, integration of microgrids, standards, security, energy exchange with neighbours, integration of renewable energy sources, power system planning, big data, etc..

26 Challenge Integrating Renewables Technical: Ensuring power system reliability as uncertainty and variability increase. integration on different Network Levels Economic: Ensuring that a maximum of renewable energy can be integrated in the market while at the same time effectively managing the system costs associated with variable RE, and leveraging grid investments to extract maximum value from variable RE investments. There is no guarantee that renewables can be used to a maximum extent when we only look at the system cost. For a given set of assets and capacities the system cost might be lowest when turning off the windfarms and PV rooftops at certain times.

27 Increasing Flexibility is Keywhat options do we have? coordinated balancing of volatility virtualpower plants Smart Inverters etc. bulk storage regional storage capacity local/ onsite storage etc. Production / Conversion Storage Flexibility Options demand follows supply (demand response, demand management, smart charging, etc. smart control (building to grid, smart lighting, etc.) etc. Consumption 27 Networks Transmission Management HVDC active distribution grids cellular management and supraregional exchange hypergrids (power to heat, power to gas, etc.) etc.

28 Findings from the Strategieprozess Smart Grids 2.0 Number of flexibility options available Opttion have different characterixtics and have to be qualified Reaction time Power and Capacity How long can we shift? Location / grid layer Besides technical feasibility economic aspects are key merrit order- cost efficient from overall perspective Busines models, how can we mobillise the potential Market design

29 Findings from the Strategieprozess Smart Grids 2.0

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31 Please contact: Michael Hübner, Fritz Fahringer Energy and Environmental Technologies Austrian Ministry of Transport, Innovation and Technology Tel.: fritz.fahringer@bmvit.gv.at Thank you for your attention! Natalie Prüggler University of Applied Sciences Technikum Wien Tel.: prueggler@technikum-wien.at michael.huebner@bmvit.gv.at