China Electric Power Research Institute CAO YANG. September 24, 2014

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1 China Electric Power Research Institute CAO YANG September 24, 2014

2 Outline 2014/10/27 2

3 1.1 The 1 st and 2 nd Industrail Revolution The 1 st Industrail Revolution Started From mid-18 th Century England Coal the Steam Era the Early-Modern Industrail System The 2 nd Industrail Revolution Started From late 19 th Century America Electricity the Age of Electricity the Modern Industrail System 2014/10/27 3

4 1.2 The Background of the 3 rd Industrial Revolution Energy Crisis Environmental Crisis Climate Crisis Industrial Civilization based on Fossil Fuels is Facing new Developing Difficulties! 2014/10/27 4

5 1.3 The Concept of the 3 rd Industrail Revolution The U.S. futurologist Jeremy Rifkin mentioned in his new book The Third Industrial Revolution : The integration of new communication and new energy system will appear once again the combination of internet technology and renewable energy will create a strong new infrastructure for the third industrial revolution. Energy Structure Transition Distributed Generation Energy On-site Storage Chargable Traffic System Energy Internet Five Pillars of the 3 rd Industrail Revolution 2014/10/27 5

6 1.4 The Connotation of the 3 rd Industrail Revolution The 3 rd industrial revolution is the gradually happened comprehensive in-depth change of industrialized way that from quantitative to qualitative change in the background of economic globalized development, human address climate changes and energy resource crisis jointly, and under the premise of information, energy, biology, materials and other technology breakthrough, integrated development and their penetration into industry. 2014/10/27 6

7 Outline 2014/10/27 7

8 2.1 Future Smart Grid The future of the smart grid, will be a strong, open widely interconnected, highly intelligent, interactive Energy Internet" Strong Grid It refers to the grid is with scientific planning and rational structure, safe and reliable, flexible operation, adapt to the large-scale access of wind power, photovoltaic and distributed energy. Extensive Interconnection It means that interconnection is both cross-regional and cross-industry. 2014/10/27 8

9 2.1 Future Smart Grid Highly intelligent Open & Iteractive It refers to widely use information network and other advanced technologies, six aspects of smart grid highly intelligent and automated operation, and with selfhealing capabilities. It means that make full use of the network market function of the grid, construct an open and unified, orderly competition power market system that plays a decisive role in the allocation of energy resources. Smart Grid is not only the grid s own intelligence and informatization, but also the energy infrastructure revolution that learn and use internet technology. 2014/10/27 9

10 2.2 Smart Grid Supporting 3 rd Industrail Revolution Energy Revolution Generation Cleaner More ecnomical Consumption More convenient More reliable Configuration Safer more efficient Extensive Interconne ction Highly Intelligent Grid Strong Open Interactive Smart Grid Centered on electricity and make Smart Grid as the platform is the fundamental of the round of energy revolution Smart Grid is the basic platform supporting 3rd industrial revolution, and with a global role in promoting the 3rd industrial revolution. 2014/10/27 10

11 2.2 Smart Grid Supporting 3 rd Industrail Revolution 1 Promoting energy development mode 2 Promoting energy configuration mode 3 Promoting energy consumption mode 4 Promoting production and lifestyle conversion 5 Promoting strategic emerging industries development 2014/10/27 11

12 2.2 Smart Grid Supporting 3 rd Industrail Revolution ---Promoting energy development mode revolution An important part of future energy production revolution is to substitute traditional fossil fuels with new energy resources. Facilitate the centralized development of new energy With randomness and intermittent Low Controllability and predictability Large-scale development and utilization brings huge challenges to grid control and coordination! Accurate prediction and optimized scheduling of energy resources will improve the output characteristics of new energy generation, and enhance the ability of accepting clean energy. 2014/10/27 12

13 2.2 Smart Grid Supporting 3 rd Industrail Revolution ---Promoting energy development mode revolution Facilitate the application of distributed energy Support flexible and adaptive troubleshooting and selfhealing, weak the impact of high penetration of distributed energy, and achieve the orderly access of distributed energy and its friendly interaction with the grid. Promote the clean utilization of conventional energy Facilitate the efficient development and utilization of traditional fossil energy, and promote the integration and coupling of multiple production technologies of Wind & Hydro complementary, Hydro & PV complementary, Wind & Thermal bundling. 2014/10/27 13

14 2.2 Smart Grid Supporting 3 rd Industrail Revolution ---Promoting energy configuration mode revolution The core content of future energy configuration mode revolution is to strengthen the wide-area, high-efficiency optimized energy allocation. Promote optimal energy allocation in a wider range By using technologies of ultra-long-distance and ultralarge-scale transmission, multiple energy coordinated optimal scheduling to achieve advantage complementary of power characteristics in each region, thereby enhance renewable energy absorption capacity. Local Balance Smart Grid Large-scale optimal allocation Overall Balance 2014/10/27 14

15 2.2 Smart Grid Supporting 3 rd Industrail Revolution ---Promoting energy configuration mode revolution Promote energy transmission efficiency improvement The energy loss during transmission is reduced by the application of advanced transmission technology, smart devices, new materials, energy storage technologies; optimize system power flow distribution is achieved by the real-time bidirectional interaction of Source-Grid- Load, and the transmission efficiency of transmission network is improved. Smart Grid is a collection of energy transmission, configuration and service functions, and will become the largest energy supply system of modern society. 2014/10/27 15

16 2.2 Smart Grid Supporting 3 rd Industrail Revolution ---Promoting energy consumption mode revolution The development trend of the future energy consumption mode is to enhance the electrical level of energy consumption, facilitate energy efficiency improvement. New changes adapt to energy consumption Flexible information-network technology and intelligent control technologies allow users to freedom to choose power consumption mode; the integration of distributed power and micro-grid technology supporting the flexible conversion of generation and consumption relationship. Bidirectional interaction is achieved by the technologies of demand response and energy efficiency management. 2014/10/27 16

17 2.2 Smart Grid Supporting 3 rd Industrail Revolution ---Promoting energy consumption mode revolution Promote the formation of power-centric electricity consumption mode Smart grid will provide more convenient, efficient and diverse power acquisition channels, advance the achievement of substitute coal with electricity, substitute oil with electricity, promote the formation of powercentric energy consumption mode. Smart Grid will promote the electricity consumption mode change from unidirectional, passive mode to a flexible, interactive mode. 2014/10/27 17

18 2.2 Smart Grid Supporting 3 rd Industrail Revolution ---Promoting production and lifestyle conversion Establish sustainable industrial civilization through energy revolution has become the world s unstoppable trend. Promote the production mode conversion Smart Grid will promote the production mode transmit to the direction of green, intelligent and service-oriented. Energy production industry and traditional manufacturing industry will be more concerned about product s carbon footprint in the process of production, pay more attention to products environmental attributes. Electric equipments and smart home devices will develop to digital, intelligent direction, and intelligent production is achieved. 2014/10/27 18

19 2.2 Smart Grid Supporting 3 rd Industrail Revolution ---Promoting production and lifestyle conversion Promote lifestyle conversion Deep integration of Smart Grid with internet of things, internet contribute to the integration of public services and promote the intelligent of life. As a platform for energy supply, information and communication and other public services, the public services integration is achieved. Advanced information tools promotes the revolution of energy consumption mode, achieves bidirectional interaction between grid and customers, and enhances the quality of service. Take full account of customers personalized, differentiated service needs to achieve bidirectional interaction of energy flow and information flow. It will make energy consumption more autonomy and make life more low-carbon. 2014/10/27 19

20 2.2 Smart Grid Supporting 3 rd Industrail Revolution ---Promoting strategic emerging industries development Smart grid is a key driving force for focus industries in next industrial revolution. Compared with the traditional interconnected grid, intensive features of smart grid is more prominent. It is with different degrees of pulling effects on the strategic emerging industries of new energy, environmental protection, new materials, bio-industry, advanced device manufacturing and information industry. It closely related to the major projects of strategic emerging industries in our planning, including intelligent equipment manufacturing, new energy integrated application, new energy vehicle,etc. 2014/10/27 20

21 Outline 2014/10/27 21

22 3.1 Smart Power Consumption under the 3rd Industrial Revolution Opportunities Smart Power Consumption DER access to micro-grid Demand Response EV charging facilities Smart power consumption integration New changes adapt to energy consumption modes Promote the formation of power centric energy consumption mode 2014/10/27 22

23 3.2 New changes adapt to energy consumption modes ---DER access to micro-grid The uncertainty of renewable energy brings challenges to the security and stabilization of the power grid. It complicates the device structure of distribution and consumption side. Smart Grid It enables the electricity flow be converted from unidirectional flow between grid and consumers to bidirectional flow between them. It makes the users demand of electricity be converted from rigid to flexible, and converted from uncontrollable to bidirectional interaction between grid and users. Users electricity consumption mode is completely changed 2014/10/27 23

24 3.2 New changes adapt to energy consumption modes ---DER access to micro-grid Develop photovoltaic, wind power, natural gas and other distributed power to response to climate change and ensure energy security is becoming an important part of the energy strategy of each country. Smart grid is used to construct energy-sharing network and promote rapid development of distributed energy. Distributed Generation one sign of 3rd industrial revolution 2014/10/27 24

25 3.2 New changes adapt to energy consumption modes ---Demand Response Demand Response: Consumers response to price changes or incentive payments change their original electricity consumption patterns. For example:tou,cpp, CPP Peak Price Elect ricit y kwh Peakers Strategy Com bined cycle Coal Nuclear Valley Price 4 PM Daily Adjust users demand to achieve load shifting 0:00 7:00 10:00 12:00 21:00 24: /10/27 25

26 3.2 New changes adapt to energy consumption modes ---Demand Response Conservation:Reduce Electricity Consumption 2.Load Shifting:Peak Load Cut 3.Improve Asset Utilization 4.Participate systme reservation:decrease traditional reservation pressure 2014/10/27 26

27 3.2 New changes adapt to energy consumption modes ---Demand Response Reduce or shift electricity demand through response to the signal from Power Company, power optimization and smart appliances. Achieve energy conservation through efficient equipment, PV and smart thermostats Studies show that by optimizing demand, home users can save 3 to 5 percent of peak load, can save 10% of power rate; industrial users can save 2 to 3 percent of peak load, can save 5% of power rate. 2014/10/27 27

28 3.3 Power-centric energy consumption mode ---EV charging facilities The development of EV can effectively solve energy and environment issues Charging facilities are the basis for the widely application of EV Charging service network promote large-scale development of EV The construction of intelligent charging network can effectively advance the development of EV, promote green transportation and reduce the dependence on oil. 2014/10/27 28

29 3.3 Power-centric consumption mode ---EV charging-discharging facilities Large-scale application of EV means that there are a large number of energy storage devices at user side Helps to significantly reduce the risk of large area blackout in city area Provides potential backup power for grid operation The network formation, charging, scheduling and management of distributed batteries will become an important component of future grid function 2014/10/27 29

30 3.3 Power-centric consumption mode ---Comprehensive integration Smart power consumption comprehensive integration technology means that apply advanced measurement technology, bidirectional interactive technology, user side DER and energy supply, EV chargingdischarging and other multiple new technologies, new results in a certain place, and achieve comprehensive application of smart electricity consumption outcomes. Main outcome forms: smart building, smart community, smart industrial park, smart city, etc. 2014/10/27 30

31 Conclusion The essence of 3 rd industrial revolution is the major innovation and integration of digital manufacturing, internet, renewable energy and other technologies, then leading to the significant change of industry and even society, this process will not only promote the birth and development of emerging industries to replace the existing industry, but also lead to the important changes of social production mode, manufacturing pattern and even production organization methods, and finally brings human into the ecological harmony, green and sustainable development society. 31

32 Thanks! 2014/10/27 32