The Smart Urban Energy Landscape

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1 The Smart Urban Energy Landscape Micro MBA Smart Urban Energy Frits Verheij, Director Smart Green Cities, DNV GL Energy Delta Institute, Nyenrode - NL, September 22, September 2016 SAFER, SMARTER, GREENER

2 Outline Global trends, and the need for resilient infrastructures Smart energy drivers and some challenges Energy transition disruptive to some, new normal to others Universal Smart Energy Framework (USEF) 2

3 Smart energy and DNV GL 3

4 DNV GL purpose and vision Purpose To safeguard life, property and the environment Vision Global impact for a safe and sustainable future 4

5 How we contribute to a safer, smarter and more sustainable world Policy Production Transmission && distribution distribution Use Use Examples of our project portfolio: Smart Cable Guard (SCG) Smart PowerMatching City Energy Storage Roadmap 5

6 DNV GL s Technology Outlook Technology trends creating a new power reality 6

7 Global trends, and the need for resilient infrastructures 7

8 Growing losses to extreme weather (events ) 8

9 Climate change is at top of mind of governments and industry 9

10 and already affects our live (1) Storm surge flooding for Copenhagen and surrounding areas (2011) 10

11 and already affects our live (2) Superstorm Sandy caused blackout of 8.1 million homes in US (2012) Left: simulation of flooding extent of Long Island in 2050 Below: actual situation after Sandy in 2012 Power providers reported outages in every state from North Carolina to the Canadian border and as far inland as Ohio and Indiana. 11

12 RES Gas Nuclear Oil Solid Fuels RES Gas Nuclear Oil Solid Fuels Energy transition needed to realise climate change targets e.g. in Europe Electricity use as part of the energy mix Range of decarbonisation scenarios Range for current trends scenarios 2005 EU decarbonisation scenarios changing the energy mix 2030 and 2050 range of fuel shares in primary energy consumption compared with 2005 outcome (%) Electrification of energy consumption changing the business models of utilities, and others Share of electricity in current trend and in decarbonisation scenario s (% of final energy demand) 12 Source: Energy Roadmap 2050, European Commission

13 Some developments changing the energy landscape, locally Rise of self-supporting communities Extreme climate events require adaptive cities Converging infrastructures: gas, electricity, heat/cold New entrants applying novel business models Increasing role of IT leads to smarter grids Big data management and cyber security threats 13

14 and changing the energy landscape on a centralised level CAVE thinking Ageing assets Resilience RES integration Security threats Financing 14

15 Smart energy drivers and some challenges 15

16 ( ) Solar PV, 70 GW installed yet 16

17 Discharge time at rated power Electricity storage a wide variety of applications, e.g. for EVs Application range for alternative energy storage technologies 17

18 Digitalisation of electricity grids B. da = 0 A(v) Grids become hybrid and more complex 18

19 Electrification will ease integration of (local) energy companies, housing industry, and automotive sector creating game changing business models Transportation Local energy Smart devices Electric vehicles will become mainstream E.g. micro CHP s: local heating and electricity production Smart home appliances, innovative services, etc. Green gas application 19

20 Technology developments ease access for (small) consumers, however also result in more complex energy systems 20

21 Energy transition disruptive to some, the new normal to others 21

22 Energy transition strengthened by socio-economic developments Energy transition Growth of renewables Electrification of our energy system Socio-economy Decentralisation, next to Europeanisation Digitization Super computers that fit in the palm of your hand Access to the cloud Open data Source: Eurostat Social media, social trends Socially connected everywhere, anytime 22

23 Use of data analytics to answer energy related questions Is wind resource appropriate to support financing this wind farm What is the status of each of my renewable assets and what needs attention? Is the cable operating as expected and can I predict when and where it will fail? How does my retail energy offer compare with others in the competitive market? How are my generation assets performing? Where am I getting the most participation in my energy efficiency program? How is this customer using energy throughout the day? Where are the best locations in a region to place renewable assets? 23

24 New collaboration leads to new business opportunities??? Present infrastructure accommodates various ownership and/or control concepts 24

25 First examples of new business models have been launched Source: Energeia Source: Jedlix September 2016

26 Universal Smart Energy Framework (USEF) 26

27 USEF the market structure, tools and rules for energy flexibility trading In search for a more sustainable energy system, many different pilots are initiated, often focussing on very similar energy flexibility concepts. While technology pushes the market forward at considerable speed, we risk wasting time and money reinventing the wheel, or addressing incompatibility issues later. USEF delivers the market structure, the tools and the rules for energy flexibility trading. It provides a common standard for a unified smart energy market that is easy to build on. With existing detailed specifications and the first real-life pilots in the market, USEF is the most advanced initiative of its kind, enabling implementations to accelerate and scale rapidly and assuring product connectebility September 2016

28 To create an effective market we should all play together by the same rules Market characteristics differ Regulation differs Requirements of flex products differ Which may lead to e.g. different aggregation models One size does not fit all yet harmonization is needed - 28

29 Flexibility Suppliers Flexibility Users Central Generation x x Balancing Capacity Producers TSO Large Industry BRP Portfolio Optimisation Local demand and supply Commercial & Industrial Residential Aggregated DSO Grid Management

30 USEF Role Model

31 How is value created from flexibility? The Consumer perspective Cooling Systems Emergency Generators Consumer Production Process Heat Pump Solar FLEXIBILITY Aggregator The aggregator A new role, unlocking flexibility Electric Vehicle Airco System

32 How is value created from flexibility? The Market perspective Cooling Systems Emergency Generators BRP Flex for Portfolio optimization Consumer Production Process Heat Pump Solar FLEXIBILITY Aggregator UFLEX DSO Flex For grid management Electric Vehicle Airco System TSO Flex to maintain balance

33 What should be on your agenda? 33

34 Innovation creates business for tomorrow To-do list Attitude Integrate ICT in energy technologies, and in new energy market designs Think technology + economics + society + innovation policy + regulation + Join forces with industries and academia having other expertise than yours Open-minded, able to combine ideas and new technologies Strong believe in your own vision, still willing to be a team player Out-of-the-box? What box? 34

35 Thank you. Frits Verheij, Director Smart Green Cities SAFER, SMARTER, GREENER 35

36 We are about to make strategic choices Today Strategic Choices Large Scale Implementation R&D Feasibility Demonstration Service Demonstration Large Scale Demonstration Planning Preparation Regulation Development process in smart energy 36