Virtual Power Plant Introduction of the project

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1 Virtual Power Plant Introduction of the project Transform 2012 Lars Lorenz November 22nd Virtual power plant Lars Lorenz DW-DHD

2 The Virtual Power Plant fits in perfectly in the german Energiewende and meets the political requirements in all important key aspects Integration of renewable energy Storage of energy Transportation and distribution Decentralized solutions New EU-Framework 20/20/20 Cities and companies have high environmental ambitions Funding and support systems Growing cities and increase of energy demand Request for renewable energy solutions Decentralized solutions are preferred New business opportunities for Vattenfall 2 Virtual power plant Lars Lorenz DW-DHD

3 Increasing integration of fluctuating energies challenges more and more transmission grid stability Residual load, forecast and feed-in of wind energy in eastern German transmission grid 50 Hertz ( ) Forecast Wind Feed-in wind energy resulting load Load 2 1 Feed-in vs. forecast No wind Inst. capacity [MW] Gradient / high flexibility Feed-in > load Wind Energy Feed-in Virtual power plant Lars Lorenz DW-DHD Data source: 50Hertz Transmission

4 Intelligent concepts can especially be realized within the heat market based on decentralized assets Forecast Wind Feed-in wind energy resulting load Inst. capacity [MW] Load Bigger assets are not flexible enough to balance fluctuations Smal scale assets can be used in a flexible way Wind Energy Feed-in Energy consumption private houshold 2007 Decentralized assets can be used for heat heat production (CHP and heat pumps) Main energy consumption is used for heating (incl. hot water) within private housholds 4 Virtual power plant Lars Lorenz DW-DHD 4

5 Actual framework and future developments in the energy market require innovative technical solutions Importance of integrating renewable energy increases Fluctuating supply from renewables will have a stronger impact on balancing the electric grid Partly renewable energies are not used at full capacity Virtual Power Plant New possibilities of integrating renewable energies are necessary We create space for renewable energies. 5 Virtual power plant Lars Lorenz DW-DHD

6 Innovative alliance between producers and consumers with the aim of grid integration of renewable energies electricity feed-in electricity take-off Producer Consumer Grid frequency + - Our unique selling proposition is based on making the link between producers and consumers - 6 Virtual power plant Lars Lorenz DW-DHD

7 Fluctuating energy (wind) drives the asset dispatching Scenario 1: little wind decentralized Micro CHP are being operated Scenario 2: a lot of wind heat pumps are being operated mchp heat pumps Feed-in Feed-in off-take In case of little wind micro CHPs compensate the needed electricity to meet the load whereas co-generated heat which overruns given heat demand at site will be stored In case of a lot of wind heat pumps take off the electricity excess generated by windmills, transform it into heat to serve the heat demand at site or store the heat 7 Virtual power plant Lars Lorenz DW-DHD

8 The innovative approach consists in smart control of the decentralised plants through our centralised control centre Transmission of: Control impulses Generation schedules Transmission of: Status data Reports Storage levels Analysis and calculation: Forecast of wind and heat load Optimised operation Creation of generation schedules 8 Virtual power plant Lars Lorenz DW-DHD

9 For creating the IT solution we were able to benefit from our long-time experience in controlling power plants Heat loadforecast Schedule optimization Heat load forecast Schedule optimization Day ahead optimization for large power plants Know-how Vattenfall Day-ahead optimization for virtual power plants Information modul Advanced metering infrastructure 9 Virtual power plant Lars Lorenz DW-DHD

10 All heat pumps and block-type CHP plants in the virtual power plant are equipped with our GPRS-based control unit 10 Virtual power plant Lars Lorenz DW-DHD

11 We presented our VHPREADY standard at the Hannover trade fair in April 2011 The new Vattenfall standard for controlling stand-alone energy plant For convenient and low-cost integration of heat pumps and block-type CHP plants into the Virtual Power Plant Plants meeting the quality requirements and technical preconditions of the VHPREADY quality label can be connected up without any additional installation work Plant manufacturers - provided they comply with the technical conditions - will receive a certificate and the authorisation to use the VHPREADY logotype 11 Virtual power plant Lars Lorenz DW-DHD

12 The open architecture of our Virtual Power Plant allows for integration of manufacturers, operators and technologies We are open to: Manufacturers Operators SenerTec Stiebel Eltron SES Energiesysteme and all interested suppliers Housing associations Municipal utility companies Residential customers Industrial customers Technologies Heat pumps Block-type CHP plants Cooling plants Batteries Immersion heaters Hydrogen petrol stations e-mobility (in future) 12 Virtual power plant Lars Lorenz DW-DHD

13 Our products can be divided into two product lines: Advanced products meet the needs of a wide range of target groups - from single family houses to peer energy suppliers Product lines of VPP Heat supply contracting Management of third-party assets Single/multi-family houses Municipal utilities Housing associations Third-party CHP owners Industry 10-year heat supply contract All-inclusive package (design, build, operate) Steering through VPP VPP controls third party CHP plants Operational management 13 Virtual power plant Lars Lorenz DW-DHD

14 Currently we have more than housing units under VPP controll, end of 2012 we plan to have housing units under controll Target end of housing units Status quo Expansion end of housing units Start of VPP housing units Okt 2010 Dez 2010 Q Q Q Q Q Q Q Q Virtual power plant Lars Lorenz DW-DHD

15 The Vattenfall Virtual Power Plant is unique in Germany and Europe because of its following USPs Combination of producers and consumers Open to manufacturers, operators and technologies All-German expansion and clear growth targets ( 4m investments in control technology between 2010 and 2012) 15 Virtual power plant Lars Lorenz DW-DHD

16 Thank you for your attention 16 Virtual power plant Lars Lorenz DW-DHD

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