Getting Smart Answers! Siemens AG
Getting Smart Answers Answers to What Questions? Page 2
Distribution of Population Source: Census from various countries Page 3
Projected Population Growth Source: UN Statistics Page 4
Population Growth Leads to Higher Demand Growth of population and energy demand +63% 33,000 TWh Renewables By 2030, power consumption will grow from today s 20,000 TWh to roughly 33,000 TWh a 63 percent leap! Primary cause of growth is demographic change more people need more electricity. Prosperity is on the rise, causing a substantial increase in the use of electrical devices, equipment, and machines. Especially pronounced in urban centers. 20,300 TWh 68% Fossil energy sources Nuclear 54% 2008 2030 Page 5
Why Grids Must Change The need to replace outdated infrastructure Today s power grids aren t at their limit yet. But with an additional 63% increase by 2030, they definitely will be stretched well beyond their capacities. For example, the U.S. power grid: 70% of transformers and 60% of switchgear are over 25 years old $3 billion a year needed for replacement and renewal programs alone Page 6
Getting Smart Answers Smart Grids are essential to ensure a safe supply of electricity worldwide and demand will grow over 60 percent from 2008 to 2030. Page 7
Where Does This Energy Come From? Source: United Nations Framework Convention on Climate Change Page 8
Where Does This Energy Come From? Source: United Nations Framework Convention on Climate Change Page 9
The Question of Efficiency This has been the case for more than 50 years Page 10
The Question of Environment Source: World Resource Institute Page 11
The Question of Environment Source: NASA-GISS, CDIAC, NOAA ESRL Page 12
The Question of Environment: Effects Page 13
The Question of Environment: Effects Page 14
The Question of Environment: Effects Source: University of Colorado Page 15
The Question of Environment: Effects Page 16
Why Grids Must Change Climate change, the need for CO 2 reduction, and therefore more renewable energy sources Immense demand for energy will need to be managed to a greater extent by renewable sources. By 2030, the proportion of renewables in the energy field will climb to 20 percent. Focus on sustainability to protect the climate and conserve ever-scarcer natural energy resources. Page 17
Paradigm shift in power grids: The new age of electricity 19th Century 20th Century Early 21st Century End of 21st Century Electrification of society 'Age of Coal' Extensive generation of electrical energy 'Age of fossil fuels' Shift to new age of electricity Challenges require rethinking: 1.) Demographic change 2.) Scarce resources 3.) Climate change The new age of electricity Electricity will be the energy source for most applications in daily life. Integrated energy system with power grid as backbone Unsustainable energy system Unsustainable energy system Sustainable energy system 'Generation and load closely coordinated' Supply island with stochastic load 'Generation follows load' Integrated network, central generation, load stochastically predictable, unidirectional energy flow 'Energy system shifting' Increasingly decentralized, fluctuating generation 'consumer' becoming 'prosumer' 'Load follows generation' Central + decentralized generation, intelligence with ICT 1, bi-directional energy flow Fossil energy source, hydro Fossil energy sources, hydro, nuclear Fossil energy sources, hydro, nuclear, biomass, wind, solar Renewable energy sources (solar, wind, hydro, biomass), 'clean' coal, gas, nuclear No environmental concerns 1) ICT = Information and Communication Technologies Environmental awareness Page 18
Getting Smart Answers: Changing the Conventional Flow of Energy Source: Energy Information administration (EIA) Page 19
Getting Smart Answers: Renewables Integration of large-scale renewable energy sources Renewable energy sources will help protect the climate by reducing CO 2 emissions. They will produce a shift in the energy mix toward the use of renewable energies. Page 20
Getting Smart Answers: Renewables Page 21
Getting Smart Answers: Renewables Page 22
Getting Smart Answers: Solar Huge Room For Growth Source: United Nations Framework Convention on Climate Change Page 23
Getting Smart Answers: Solar Technologies Source: Metropolitan State University Minneapolis Page 24
Getting Smart Answers: Wind Power Offshore wind farms have a higher yield of wind speeds, thus contribute higher supply of electricity. Onshore wind farms are good alternative to provide electricity to isolated locations. Page 25
Getting Smart Answers: Hydro Page 26
Getting Smart Answers: Cogeneration Why not make use of this? Page 27
Getting Smart Answers: Cogeneration Source: Marathon Engine Systems Page 28
Getting Smart Answers: Trigeneration Source: Cenergy Page 29
Getting Smart Answers: Changing the Conventional Flow of Energy Source: Energy Information administration (EIA) Flow of Energy Possible Page 30
Getting Smart Answers: Innovative Technologies Virtual power plants Integration, management, and control of a large number of small, individual generation sites into virtual power plants." Page 31
Getting Smart Answers: Innovative Technologies Smart buildings Since buildings account for 40 percent of today s total energy consumption, they also offer a huge potential to save energy. Modern buildings will not only consume or store energy they also will generate energy on their roofs, in their solar-active windows and facades, or with a combined plant in their neighborhood. A powerful intelligent Building Management System will manage and optimize this energy flow. Page 32
Getting Smart Answers: Innovative Technologies Management of bidirectional power flow In the future, power consumers (like large buildings) will become power producers with storage capacity. This will transform them into energy suppliers (prosumers) and make them part of a new bidirectional energy system. Page 33
Getting Smart Answers: Innovative Technologies Smart metering and transparency Fluctuating availability of new sources will lead to flexible fees for personal power consumption: information in real time is a necessary step. When electricity costs are lowest, customers can run their most energy-intensive appliances. In the future, this information will be provided automatically by smart meters with an integrated bidirectional communication function. They will need to be installed in millions of households. Page 34
Getting Smart Answers: Smart Metering Utilities / ISOs Transmission of meter readings Different tariffs Remote collection of meter readings Overview of consumption and cost Consumer Flexible tariffs Smart Metering Intelligent monitoring of consumption Bi-directional data transmission Increased security of supply and higher efficiency Variable tariffs dependant on overall consumption and grid load Page 35
Getting Smart Answers: Innovative Technologies Management of fluctuating in-feed Load The requirement is a flexible and optimally controlled grid system that integrates and balances fluctuating in-feed of individual power producers. Wind power infeed 0 Page 36
Getting Smart Answers: Changing the Conventional Flow of Energy Source: Energy Information administration (EIA) Flow of Energy Possible Page 37
Getting Smart Answers: Cogeneration and reduce this.. Why not make use of this? Page 38
Getting Smart Answers: Innovative Technologies Reduction of long-distance transmission losses In the past, the grid was built for power stations close to the demand. In the future, the grid will have to handle large-scale, renewable generation far from the site of consumption. Large power plants will be supplemented with a growing number of small, decentralized power generation units: tens of thousands of photovoltaic units on house rooftops, smaller onshore wind farms, cogeneration plants, and biomass units. This complexity will pose new challenges. Page 39
Energy-efficient and low-loss: HVDC for transporting electricity over great distances Requirements Benefits Implementation Energy-efficient, environmentally friendly and low-loss power transmission over long distances Access to energy resources that are far distant to the load centers 30 to 40 percent lower transmission losses than a comparable alternating current (AC) transmission line Savings of losses reduces CO2 emissions of conventional power plants Direct current (DC) transmission lines need less space than AC lines HVDC transmission technology based on innovative power electronics In China and India: Transport of electricity over distances of more than 1,000 kilometers via overhead lines In the U.S.: Transport of electricity via underwater cable links to meet growing demand with power from more distant grids Page 40
Getting Smart Answers: Changing the Conventional Flow of Energy Source: Energy Information administration (EIA) Flow of Energy Possible Page 41
Getting Smart Answers: Distribution Automation Today s standard No monitoring, control, and automation No communication No auxiliary power supply and motor-operated mechanism No active integration in control center (manual updates) Evolution Automation of distribution substations Communication in distribution networks Decentralized, intelligent application Distribution management system Harmonized networks and tasks Smart distribution automation Self-healing automation functions Intelligent applications Online information (operational and non-op.), e.g., power quality system Page 42
Getting Smart Answers: Distribution Automation RMU-automation Pole top automation DA and metering Page 43
When This Changes.. Source: Energy Information administration (EIA) Page 44
To This.. Page 45
Getting Smart Answers: Microgrids Microgrids Small island units without access to the main grid require optimized network management to orchestrate the mix of small producers and consumers. Page 46
Getting Smart Answers: Microgrids External grid Micro-Grids Microgrid Central control Plant energy management PV Wind Waste heat reuse for electricity generation Electrocar CCHP Building automation Clean electricity, heating and cooling generated by local energy source High level energy selfsufficiency through advanced energy management system and power electronics technology Continuous operation in islanding mode when external network faults Optimal energy management achieve both economic and ecological targets Page 47
Getting Smart Answers: ecars emobility: Smart Grids will bring ecars to start. Charging periods will be reduced and electricity will become cheaper. Millions of ecars will depend on grids as consumers, and also serve as storage units. A new power infrastructure has to be constructed: charging units, public charging stations, eparking garages, battery sweeping stations. ecars will stabilize the grid as mobile energy storage units and counteract power failures caused by fluctuation. Page 48
Getting Smart Answers: ecars Page 49
Siemens is the enabler of the new age of electricity with real solutions today for the Smart Grids of tomorrow Page 50
Linking different power grids: The "Siplink" project at SWU Energie in Ulm Requirements Benefits Implementation Linking of two separate and technically differing power grids in Ulm and New Ulm Regulated power transfers in peak-load hours, to save grid operation costs Buying control energy in peakload hours can be avoided Intelligent controls and optimization of the power flows Improved voltage stability and quality Better utilization of existing energy reserves in the overall power grid "Siplink" medium-voltage link based on innovative power electronics for quickly controlling power flows between the two grids Electronic power converters in the switchgear room of the Böfinger Heide power plant on the Danube River Operation of the link from the central control room Page 51
Electro-mobility and Smart Grids: Energy storage for grids technology partnership with RWE Requirements Benefits Implementation New mobility concepts for providing high individuality and flexibility High energy efficiency and environmental protection by fully integrating renewable energies and recovering energy Stabilization of the power supply grid by using electric vehicles as the source of energy and its use Electric vehicles make it possible to increase the share of renewable power sources in the grid Prevent noise, pollution and emissions by using renewable energy Reduce emissions from the use of conventionally generated power (higher efficiency) New business models for electro-mobility New concepts for charging infrastructure, energy management and electric drive systems Equipping 40 charging stations at Siemens locations in Germany (together with RWE) Page 52
Trans bay cable project, USA: Security of power supply for San Francisco area with HVDC PLUS Transmission constraints before TBC 2010 Transmission constraints after TBC Energy exchange by sea cable No increase in short-circuit power P = 400 MW Q = +/- 170-300 MVAr Elimination of transmission bottlenecks Dynamic voltage support Page 53
Distributed Energy Resources (DER) and storage: Reference example Virtual power plant KonWerl (Germany) Cost-optimal planning and management of decentralized power supply plants Generation ranging from 500 kw to several MW each Includes coordination of different carriers Page 54
Smart metering: Reference example 1 Reference project for Energie AG Oberösterreich, Austria: The most important reasons for the implementation of an AMIS system are Automated metering processes (meter reading, blocking of customer installations, billing, prepayment services, etc.) Significant improvement of customer processes Implementation of various tariffs Quality improvement of consumption data due to monthly meter reading Replacement of ripple control Recording of customer supply Automation of the transformer stations Support of Energie AG s energy efficiency program Page 55
Smart metering: Reference example 2 Transitioning 800,000 retail customers in New Zealand to smart metering: Meter data management solution (EnergyIP) provides High volume meter data management for gas and electricity Time-of-use-based billing Residential load management Exception reporting and integration of field workforce Automated commissioning of each meter installation Detailed reporting for retail and distribution applications Web-based energy Information portal Integrated wireless in-home display Fully managed smart service Page 56
Building automation: Reference examples along the building life cycle Design and build Maintain and operate Renew and revitalize Sierra Nevada College (US) LEED platinum building 60% energy savings 1) 65% water savings 2) 7% higher upfront cost pay back in 15 years 1) savings over ASHRAE 90.1 2) savings over traditional automation systems Borås Schools (Sweden) 30% saved on district heat within 2 years 8% saved on electrical power 22% saved on water consumption Annual carbon dioxide reduction of 824,000 kg Payback time of only a few months University of Arts Berlin (DE) Green building partner status for customer Financing for modernization of HVAC equipment 28% energy savings Annual carbon dioxide reduction of 1,180 tons Page 57