GreenTech Business Network Event Smart Energy City: Future Energy Solutions

Size: px
Start display at page:

Download "GreenTech Business Network Event Smart Energy City: Future Energy Solutions"

Transcription

1 Laurence Carpanini Director Smart Metering & Smart Grids, IBM UK Limited GreenTech Business Network Event Smart Energy City: Future Energy Solutions 25 th April IBM Corporation

2 The global utilities landscape is changing, demanding a new approach to traditional business models Security of Supply 233.5bn incremental cost of upgrading UK power infrastructure by 2025 Growth in Renewables and Distributed Generation 47GW new capacity from renewable sources by 2020 Affordability increase in average annual household energy bill between 2004 and 2008 Electrification of Heat & Transport 10% of UK transport energy and 12% domestic heating from renewable sources by 2020 Carbon Reduction 34% - obligation to reduce CO2 emissions by 2020 Consumer Engagement Customer collaboration in ToU tariffs and automated DSR will deliver 45% of benefits case IBM Corporation

3 Bringing new pressures on the industry to transform radically Shift from national to regional system operation larger proportion of renewables generation as time-expired fossil fuel and nuclear plants are retired Connecting and managing intermittent, distributed and embedded energy sources (e.g. solar, wind, micro-generation) Supporting a future (but unpredictable) increase in dynamic new loads such as electric vehicles and heat pumps Adopting new ways of working, new regulatory pressures, new intermediaries and new customer relationships Offering new and innovative products and services IBM Corporation

4 Traditional industry roles are changing - the lines between the energy producer, transmission operator, distributor, energy retailer and consumer are blurring VPP: A system that relies upon software systems to remotely and automatically dispatch and optimise generation, demand-side, or storage resources (including plug-in electric vehicles and bi-directional inverters) in a single, secure webconnected system. Microgrids: An integrated energy system network consisting of DER and multiple electrical loads and/or meters operating as a single, autonomous grid either in parallel to or islanded from the existing utility power grid. Cooperatives: An organisation that is owned and run jointly by its members, who share the profits or benefits e.g., Good Energy (United Kingdom) and Lichtblick (Germany) Pico Producers: A small individual system energy producer?? Source 2013 Navigant Consulting, Inc. All rights reserved IBM Corporation

5 Made all the more challenging because we live in the age of the empowered customer Sustained focus on customer engagement Customers have unlimited access to instantly sharable information Radical changes to the buyer/seller dynamic Customers expect more from their energy provider to help them to: save money be efficient be environmentally conscious Aim is to move customers from awareness to collaboration Awareness Acceptance Collaboration and changing customer behaviour is crucial IBM Corporation

6 Integrated smart energy systems and collaborative stakeholders will drive the transformation to customer enabled utilities Smart Grids Intelligently integrate the actions of all users connected to them - generators, consumers and those that do both - in order to efficiently deliver sustainable, economic and secure electricity supplies (ENSG) Government Policy Regulatory Control & Incentives Customers Customer Awareness & Action Industry Delivery & Engagement IBM Corporation

7 For example Source 16:24pm 14/11/2012 Shifting the peaks capacity management through Demand side Response and Demand side management Solving the storage problem Optimising renewables solar PV, wind, etc. District heating schemes CCP, biomass, etc. System optimisation minimising reinforcement and capital expenditure on wires and transformers Integrating EVs Engaging with customers IBM Corporation

8 Data is at the heart of this transformation through an instrumented, interconnected, intelligent smarter energy network Customer Service Know exactly which customers are connected to what assets, providing proactive service and response to outages Network Management Optimisation of asset maintenance programmes based on condition & performance; dynamically schedule and dispatch maintenance and repair crews Executive team Business decisions based on accurate data across all time horizons: past, present and future Demand Management Ability to control all embedded generation and micro-grids; real-time transactive control through negotiations based on network condition and financial incentives Network Operations Predict or remotely sense network outages and track demand patterns based on past history of weather, loads and environmental factors Network Asset Planning Optimised CAPEX programmes based on performance, risk and criticality IBM Corporation

9 significantly changing the way energy companies operate and providing real opportunities to innovate With Big Data Customer Service Know exactly which customers are connected to what assets, providing proactive service and response to outages Sensor Data GPS External Data Network Management Optimisation of asset maintenance programmes based on condition & performance; dynamically schedule and dispatch maintenance and repair crews Executive team Business decisions based on accurate data across all time horizons: past, present and future Demand Management Ability to control all embedded generation and micro-grids; real-time transactive control through negotiations based on network condition and financial incentives Massive Internal Data Network Operations Predict or remotely sense network outages and track demand patterns based on past history of weather, loads and environmental factors Network Asset Planning Optimised CAPEX programmes based on performance, risk and criticality IBM Corporation

10 This will enable Intelligent Operations Operational Efficiency Incident / Event Management Airports Manufacturing Retail Distribution GOAL:-Ensure environment maintains operational targets. Collaboration Stadiums Agriculture VIP Visits Extreme Weather GOAL:-Incidents managed effectively during extreme activities and returned to a steady state. Intelligent Response Intelligent Operations SOP s Business Rules GOAL:-Get information and resources to the right people at the right time for rapid problem resolution Workflows GOAL:- Real-time response using good practice Available Resources IBM Corporation

11 Or the city at a glance Key Performance Indicators Incident & Event Management Cross Agency Collaboration Geo spatial mapping Data Collection and Integration IBM Corporation

12 The Ecoisland Community Interest Company (CIC) The Ecoisland CIC aims is to make the Isle of Wight the first sustainable region in Britain. Run by members of the Community in the interests of the Community, Ecoisland has a detailed vision of how the Island can achieve sustainability in terms of energy, water, food and fuel. From net importer to net exporter of energy Lower carbon emissions from the Island Engage with & reduce energy costs for IOW residents Produce a shrink-wrapped smart infrastructure that is replicable in other EcoIslands Build a Smart Grid exemplar: Virtual Power plants, demand response, network orchestration Green energy biomass, geothermal, PV, tidal, wind, etc. Storage through EVs, Hydrogen, batteries IBM Corporation

13 The EcoIsland dashboard IBM Corporation

14 Bornholm Island - testing systems to balance wind energy with demand EDISON - 50 EVs on the island used as storage batteries for excess wind energy. When the wind blew the cars charged, when the wind died down, the cars provided extra capacity to the grid EcoGrid EU New project to balance load using dishwashers, heat pumps and electric water heaters, as well as the EV batteries, to store excess energy in 2,000 homes on the island Total budget 21m in a large scale demonstration of a real-time market place for distributed energy Controlling a real power system with more than 50 % renewable energy Lykke Friis, the former Minister for Climate and Energy in Denmark, is a strong advocate of the intelligent electricity system EcoGrid EU is an incredibly promising pilot project, in which Bornholm will become a test island in the future intelligent electricity system. We need an intelligent electricity system which can integrate more wind power and other renewable energy sources to make this work in future, it is necessary to turn all resources in regional grids into active players, exactly as in Bornholm IBM Corporation

15 Pacific North West Transactive Control $180m US Federal Government sponsored programme Developing transactive control capabilities at scale: 5 states, 60,000 premises, Countless appliances & devices Enables market of micro-bidding devices to establish optimal power supply and demand conditions. Algorithms defining cost-based economic signals drive a distributed control system signal Key objectives: Manage peak demand Facilitate renewable resources Address constrained resources Improve system reliability and efficiency Select economical resources to optimise the system Aggregation of power & signals occurs through a hierarchy of interfaces IBM Corporation

16 Creation and modification of incentive signals (TIS) The signal is modified as it flows from supply to user through the Transactive Network IBM Corporation

17 Transactive Control an illustration Transactive Control Nodes Transformer Charge Station 1 Charge Station 2 Charge Station 3 Load, TFS (kw) 50 EV3-Saver EV2-Now 45 EV1-Flex Base Load 40 Max.Demand TFS 35 Capacity TIS Time of Day (hr) IBM Corporation $0.06 $0.05 $0.04 $0.03 $0.02 $0.01 $0.00 Price, TIS ($/kwh)

18 QUESTIONS ARE NICE, BUT CAKE WOULD BE BETTER IBM Corporation

19 IBM Corporation