Heat Pumps as a support technology for large Wind Power integration

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1 Danish Pilot Project with integration of Heat Pumps into the Electricity Smart Grid Heat Pumps as a support technology for large Wind Power integration April 2011 Steen Kramer Jensen energinet.dk TSO of Denmark Chief Consultant Strategic Planning mail: skr(a)energinet.dk

2 Let me introduce some new Technology to you!

3 Energinet.dk in brief National transmission system operator (TSO) for electricity and gas Plan, build, own and operate the transmission system including interconnectors for electricity and gas Developing of the Market PSO funding of feed-in tariffs and R&D Reporting of environmental impact Owned by the Danish state under the Ministry of Climate and Energy but with a Independent Supervisory Board Co-owner of the Nord Pool Spot, Nord Pool Gas and EMCC (European Market Coupling Company) About 560 employees Annual turnover - about DKK 9 billion (1.2 billion )

4 Danish Energy Policy The long-term vision Independence from fossil-fuels A visionary Danish Energy Policy 2025 Possible doubling of wind-power capacity from 3 GW to 6 GW Energy agreement Up to 2012: 1300 MW of new wind-power capacity ~ 40% increase! EU target 30% renewables In 2020, the power system may have to handle 50% wind-power Towards independence of fossil fuels in 2050 Government Plan From coal, oil and gas towards green energy

5 The Wind Power Challenge at 50 % in An illustrative case from Denmark Today (2010) Tomorrow (2025) % wind power 20% wind power % wind power Wind power Demand Wind power covers the entire demand for electricity in 200 hours Wind power Demand In the future wind power might exceed demand in more than 1,000 hours Effective Wind power integration using: Robust Transmission grid with strong interconnectors Using more electricity and less oil and gas in heat and transportation Intelligent control using Smart Grids applications

6 Bornholm a Unique Test Site citizens Strong political commitment & public support Demonstration in a real system with 50 % RES Operated by the local DSO, Østkraft High variety of low carbon energy sources Several active demand & stationary storage options R&D infrastructure & full scale test laboratory Interconnected with the Nordic power Market

7 EcoGrid EU Partners DENMARK Energinet.dk Østkraft DTU-CET Siemens DK IBM DK Landis+Gyr NORWAY SINTEF ER (Coordinator) BELGIUM ELIA EANDIS (+ORES) Bornholm ESTONIA Tallin University of Technology (TUT) GERMANY EnCT Siemens AG* THE NETHERLANDS ECN IBM, NL* SPAIN Tecnalia AUSTRIA Austrian Institute of Technology (AIT) PORTUGAL EDP SWITZERLAND IBM Zrl* Siemens, CH*

8 Pilot Project on Intelligent Heat Pumps Energinet.dk is running a demonstration project on Smart Grid Enabled Heat Pumps in preparing EcoGrid EU. Cost approx. 2 mill. Euro Energinet.dk has developed an Open Source Control Box for retrofitting existing Heat Pumps, thus enabling intelligent start and stop on behalf of prices on electricity and weather forecasts. The project is demonstrated in Danish homes over the period , as a part of a feed-in campaign for establishing new heat pumps in Denmark Lessons learned to be merged into the large EcoGrid Project

9 Develop new Control Systems to deal with different price signals and forecasts. Day ahead Spot Prices Intraday prices on regulating power Frequency reserves Dynamic Distribution Tariffs from load and/or long term marginal costs Taxes Weather Forecasts

10 What will be demonstrated? Presentation & visualization Commercial players My E-home Power company 3. part Management & control Commercial players Weather forecast Power system signals Etc. Balance responsible ESCO On-line Communications server Clearing house Homeautomation Time series Basic data Signals from the house Home automation Gadgets VPN tunnel Controlling box Heat pump Grid company Main electricity meter

11 Presentation & visualization Commercial players My E-home Power company 3. part Management & control Commercial players Balance responsible Weather forecast Power system signals Etc. Retrofitted On-line Communications server ESCO Homeautomation Clearing house Time Basic Open Source series data Signals from the house Home automation Gadgets equipment VPN tunnel Controlling box Heat pump Grid company Main electricity meter Hot Water Heat Pum p Heating

12 Heat pump Presentation & visualization My Heat Pump Commercial players My E-home Power company 3. part Management & control Commercial players Weather forecast Power system signals Etc. Balance responsible ESCO On-line Communications server Clearing house Homeautomation Time series Basic data Signals from the house Home automation Gadgets VPN tunnel Controlling box Grid company Main electricity meter Calculated COP Hot Water Usage Heat Production Power Consumption Temperatures Weather forecasts Prices Start/Stop Management Hourly logged

13 Economic Drivers for Smart Grid in Denmark The socio-economic potential: mill. /year (total turnover approx. 2 bill. ) - With a flexible share of 10-15% out of a total of 40 TWh/year The economic seen from the end-consumer - Consumption from Heat Pump 6000 kwh/year - Total electricity cost 1800 /year incl. tax. The fluctuating electricity prices of today give the endconsumer a total saving of around 50 /year - This should be compared with the total saving from switching from oil to electricity at about 1000 Euro/year

14 Expected outcome from the project In deep knowledge about technical solutions, both hardware and software needed for local control and central Virtual Power Plant Server (VPP) so international communication and Smart Grid standards can be prepared Outline of different business models on how to control flexible electricity consumption and estimate the savings Large amount of measuring data from where it will be possible to develop new marked designs and system operation tools that is capable of handling distributed, flexible electricity consumption and heat pumps Knowledge on consumer behavior and preferences Identification of possible barriers and means on how to promote intelligent control of distributed, flexible electricity consumption and heat pumps

15 Findings until now The reason for choosing a Heat Pump is savings from high Oil prices not Smart Grid Customer awareness on operation is very important and is a driver in itself don t underestimate the power of Apps (iphone/android) The socio-economic potential for Smart Grid Enabling Heat Pumps is out there The economic value for the end-user is minimal, so manufactories has to be first movers Smart Grid has to be bundled with added value to the end-user to gain acceptance and support for the roll out of Smart Grid

16 Thank you for your attention! Horns Reef