Integrating ti Distributed ib t Energy Resources into Smart Grids with Virtual Power Plants 1. Smart Grid International Forum Rome, 30.11 01.12.2010 Siemens AG Smart Grid Applications Page 1
Integrating ti Distributed ib t Energy Resources into Smart Grids with Virtual Power Plants 1. Smart Grid International Forum Rome, 30.11 01.12.2010 Siemens AG Smart Grid Applications Page 2
Trend Towards Distributed Energy Generation New Generation Technologies Increasing Energy Consumption world wide Distributed Energy Generation Political Targets Increasing Energy Costs Page 3
Virtual Power Plants Essential Elements of Smart Grids A Virtual Power Plant is a cluster of distributed generation installations (such as microchp, wind-turbines, small hydro, back-up gensets etc.) which are collectively run by a central control entity. The concerted operational mode shall result in an extra benefit as to deliver peak load electricity or balancing power at short notice. Siemens Source: Wikipedia Page 4
Technical Structure of Virtual Power Plants Network Control System Decentralized Energy Management System Energy Exchange G Biomass Power Plant G Block-type Heating Power Plant Communication Network Billing Meteorological Service Flexible Loads PV Power Plants Fuel Cells Communication Unit Data Concentrator Distributed Small Fuel Cells Wind Power Plants Mod. Z Meter Reading Mod. Mod. Mod. Mod. Mod. Z Z Z Z Z Distributed Loads Page 5
DEMS Decentralized Energy Management System The Brain of Virtual Power Plants Load Forecast Forecast of renewable generation Scheduling Automatic Generation Control SCADA (Su uperviso ory Con ntrol and Data Acquisit tion) User Interface Archive Reports Market Interfaces DEMS Communication Page 6
Requirements for Communication Technology Costs Independent from Network Operator Interfaces to Process Control IT-Security Page 7
Siemens DEMS and DER-Controller The Technical Backbone for Your Virtual Power Plant DER 1 TM 1703 IEC 60870-5-104 DER 2 TM 1703 DER n TM 1703 Page 8
Already Today, Virtual Power Plants Provide Economical Benefits Ecological l benefits Incorporation of renewable energy in the optimization process Using energy more sufficient i due to co-generation of electrical l power and heating/cooling Economical benefits (published examples from Germany) Reducing cost for power in high tariff periods 23,000 per avoided MW power Reducing costs for regulating energy 100 MW energy purchase, Load forecast improvement of 2% Several 100,000 cost reduction Avoiding network investments in a small utility 1 Million invest postponed for 5 years Page 9
Case Study ProViPP Virtual Power Plant for RWE in operation since 31-Oct-2008 9 Small hydro units (8,6 MVA). Additional units will be connected in the next weeks DEMS Decentralized Energy Management System Sachsen- Anhalt Nordrhein- Westfalen Rheinland- Pfalz Saarland Schleswig- Holstein Hamburg Bremen Niedersachsen Hessen Baden- Württemberg Mecklenburg - Vorpommern Thüringen Bayern Brandenburg Berlin Sachen Project Focus: Develop a marketable Virtual Power Plant Definition of business models in different energy markets Definition iti and implementation ti of optimal operation strategies for distributed generation Implementation of innovative communication concepts between distributed generation and DEMS Page 10
Case Study - SAPPI South African Pulp & Paper Industry (Gratkorn, Austria) Challenge One planning system for the forecast of the natural gas and the electricity profile of a paper and pulp factory considering the optimized co-generation of electricity, steam and efficient primary energy use Reduction of energy costs and CO 2 emissions Modular system that t can be easily extended d and adapted to future needs IT integration of all energy related mill data for central monitoring, automatic reporting, forecasting and optimization Benefits DEMS is bridging the IT gap between industry and energy sector Increased energy efficiency Reduced CO 2 emissions and fuel costs Reduced contract penalties of electricity and natural gas (limit violations) Decision support for energy market trades Improved business process ROI < 1 year Solution Use of the Decentralized Energy Management System DEMS extended with pulp & paper specific applications and features Load forecast based on production plans Day-ahead optimized plant commitment Production cost calculation Access to energy market opportunities Mixed fuel operation of heat plants Operator inputs through action list Online energy flow monitoring Page 11
In the Future, Virtual Power Plants Will Play an Important Role in Smart Grids Medium Voltage Medium Voltage Low Voltage Low Voltage Transformation into Smart Grids Today Clear load flow direction Little Automation Passive distributed generation In the future Changing load flow directions More Automation Actively managed distributed generation Page 12
Case Study FENIX Flexible Electricity Networks to Integrate the expected energy evolution Description of the environment: Demonstration ti objectives: - Real distribution network in Spain with 14 DERs - Distribution Voltage / Var Control in real time - Real transmission network of REE in Spain - Information exchange between the grid operator and - VPP aggregation of hydro, wind, solar and CHP the aggregator (day ahead and in real-time) e) Page 13
Case Study FENIX What Has Been Demonstrated Providing global services (TSO level) Active power in the day ahead market Tertiary reserve, balancing market Reactive power support at DSO / TSO boundaries Providing local services (DSO level) Help maintaining voltages in lines Under equipment outages, use active power generation to avoid reconfiguring the distribution network (simulated) Page 14
Our Technology Your Future Already today, Siemens DEMS and Siemens DER-Controller offers the technical basis for Virtual Power Plants. Your benefits Using synergies by aggregating distributed generation Get remarkable economical and ecological benefits Obtain new market opportunities for distributed generation Optimal integration into distribution networks Create your future energy system with Virtual Power Plants! Page 15