Smart Electricity Grids

SETIS

In brief

A smart electricity grid is an upgraded active electricity network. It can intelligently inte-grate the actions of users that are connected, creating so-called ‘prosumers’ who are able to produce electricity as well as consume it. A smart grid ensures an efficient, sustaina-ble electricity supply, with lower losses and greater reliability and security. Smart meters provide utilities with a secure, two-way flow of data and may form part of a smart grid. On the transmission side, the existing electricity grid will need to be expanded to accom-modate remote renewable sources, while distribution grids are becoming increasingly bi-directional, changing the traditional prin-ciples on which grids are planned and con-trolled. Increased energy efficiency – which mostly comes from residential buildings – and demand-side management of energy are moderating consumption patterns, requir-ing new advanced control procedures and greater harmonisation between the unbun-dled transmission system operators and distribution system operators.

The technology

Most of the projects in advanced smart grids in Europe are at the R&D demonstration stage. However, according to the European Commission, 50 % of Europe’s electricity networks should operate on ‘smart’ principles

by 2020, seamlessly integrating existing or new technologies – such as meters, sensors, information and communications technol-ogies – with the physical infrastructure required to generate, transmit and distribute electric power.

Unlike passive conventional grids, the smart electricity grid can accommodate the chang-

ing behaviour of end-users, often in real time. Smart grids allow demand side man-agement, active protection of the network, energy savings and cost reduction.

The current European electricity grid was built more than half a century ago and much of the infrastructure is expected to need replacement. It also has to be modified to

e-Energy(electronic marketplace, virtual...)

Customer participation aspects (technology enabled)Stakeholders involved

EU, GO, Utilities

Customer-Utilities

Suppliers, Customers,Technology & Services

Suppliers to Customer

Customer

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Prosumer & active retailing(bi-directional trade, AMI)

Automatic decision support system(Intelligent automation, benchmarks, forecasting, AMI)

Visibility, transparency, customer empowerment,devices losses, buildings losses, etc

(Analytical tools, AMR)

Better real time prices (price signals)(Connected devices, DR, ICT, AMI)

Involvement of customers and grid users at different deployment stages

Source: Smart Grids ETP

handle remote electricity production from offshore wind farms, for example, and to allow a greater degree of interconnectivity. On the transmission side, multi-terminal High Voltage Direct Current (HVDC) grid technology is particularly suited for con-necting offshore grids, such as the Northern Seas Offshore Grid, as well as for increasing cross-border electricity exchange.

An important driver behind the deployment of a smart grid is the optimal integration of distributed generation (DG), as well as distributed energy storage systems (DESS) and demand side management (DSM) sys-tems. These three technologies are usu-ally grouped under the name of distributed energy resources (DER). The massive deploy-ment of DER calls for a new operation phi-losophy, revised design criteria and upgraded architecture.

Distributed electric energy storage may relieve potential congestion of the grid, while improving its efficiency and reliability, thus delaying the need to expand the distribu-tion network. Local storage can enable con-sumers to store energy when it is produced but not needed (e.g. during the daytime for household solar PV) and to consume it or feed energy into the grid when it is required.

The transition to smart metering is an important element in the implementation of smart grids. Smart meters can record the real-time details of energy consumption and communicate these to energy providers for accurate billing. They also help custom-ers to optimise their consumption based, for example, on pricing. An estimated 170 million smart meters will be installed in the EU-28 by 2020.

Within the smart grids concept, electrical vehicles will not only be consumers of energy, they can also be used as storage medium in what is known as vehicle-to-grid (V2G). For example, electrical vehicles can be used in a smart grid environment to flatten the daily consumption load curve, which increases the overall efficiency of that system.

Ongoing research

A wide-ranging R&D effort is required to deliver smart grids and distribute up to 35 % of electricity from dispersed and concen-trated renewable sources by 2020.

The European Technology Platform for the Electricity Networks of the Future (or Smart Grids European Technology Platform) was

The development of smart grids is essential if the global community is to achieve shared goals for energy

security, economic development and climate change mitigation. Smart grids enable increased demand response and energy

efficiency, integration of variable renewable energy resources and electric vehicle recharging services, while reducing peak

demand and stabilising the electricity system.

International Energy Agency

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Smart Electricity Grids

Fact file

• Europe will need to add 42 100 km to its existing 300 000 km of trans-Euro-pean high-voltage power lines in the next ten years, at a cost of up to EUR 28 billion between 2010 and 2015, according to estimates by the Euro-pean Network of Transmission System Operators for Electricity (ENTSO-E).

• At least 170-180 million smart meters will be installed in the EU-27 by 2020 at a cost of at least EUR 30 billion (EC/JRC 2013.

• Italy has installed around 36 million smart meters; Sweden has rolled-out 5.2 million. Malta and Finland were due to complete their smart metering roll-out by 2013. France will install 35 million meters by 2017, Spain - 28 million meters by 2018, and the UK will install 56 million smart meters by 2019 (EC-JRC).

set up in 2005, bringing industry, the public sector, research institutions and civil soci-ety together to guide policy, research and funding.

EU research is currently organised under the European Electricity Grid Initiative (EEGI), one of the European Industrial Initiatives under the Strategic Energy Technology Plan (SET-Plan). With an estimated overall budget of EUR 2 billion for the period 2010-2018, the EEGI builds on priorities identified by stakeholders and focuses on system inno-vation rather than technology innovation. It addresses the challenge of integrating new technologies under real life working conditions and validating the results.

The EEGI’s R&D and demonstration pro-gramme is expected to identify and imple-ment the most suitable grid architectures. The research part concentrates on the devel-opment of new technologies to improve the flexibility and security of the network and to mitigate future capital and operational expenditure. It also focuses on developing the necessary modelling and planning tools to design and test innovative pan-European grid architectures.

The European Energy Research Alliance (EERA) launched in 2008, is the public sector research pillar of the SET-Plan, coordinating research in 250 universities and research centres across Europe on targeted low-car-bon themes. The EERA Joint Programme on Smart Grids, which started in 2010, concen-trates on network operation, energy man-agement, control system interoperability and electrical storage technologies.

Up to September 2013, the EC Framework 7 (FP-7) research programme was supporting 329 projects related to the integration of smart grid technologies.

The EC Joint Research Centre (JRC) has ana-lysed past and ongoing European Smart Grid projects and developed a comprehensive assessment framework for cost-benefit analysis (CBA).

The industry

Smart electricity grids are flexible, coordi-nated and adequate electricity networks that promise to address the major challenges of liberalised EU energy systems: mounting net-work congestion; increasing deployment of feed-in renewables; more efficient electricity generation units; and diffusion of dispersed generation installations.

The upgrade and development of energy networks is one of the EU’s key challenges for securing a sustainable and competitive energy future. The re-engineering process to smart grids is complex, covering market design, organizational, regulatory and tech-nical issues. Research is needed to develop new technologies to make transmission and distribution networks stronger and smarter. In particular, this means enriching the net-

Smart Electricity Grids

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Fact file

CostsThe EC Energy Roadmap 2050 estimates the investments required in transmission grids, interconnectors, distribution grid and smart components under different energy technology scenarios (billion EUROS at 2005 values):

ENTSO-E (the European Network of Transmission System Operators for Electricity) estimates investments for transmission and distribution of the order of EUR 500 billion by 2030.

Greenhouse gas emissions Smart grids can contribute to sustainability, reducing CO2 emissions by enabling the integration of large-scale renewables and increasing energy efficiency in the power sector. The construction of new lines and the installation of innovative equipment may also allow the replacement of lower efficiency power units, which in turn may help avoid further CO2 emissions.

Security of supplySmart grids support competitiveness and open and efficient markets by increasing market participation through the aggregation of distributed prosumers (consumers also able to produce power) and through the strengthening of interregional markets. Security and quality of supply are enhanced by integrating technologies/mechanisms to balance flexible generation and by increasing the observability and controllability of the grid in order to reduce outage times.

Scenario 2011–2020 2021–2030 2031–2040 2041–2050

Reference 292 316 662 1 269

Diversified supply technologies

337 416 959 1 712

High RES 336 536 1 323 2 195

Smart electricity grids distribution network activities

Level 5: Smart Customers

FUNCTIONAL PROJECTSSMART GRIDS MODEL

Customers aware and actively participating

Cluster 1: Integration of smart customers

Cluster 2: Integration of smart metering

Cluster 3: Integration of DEAR and new uses

Cluster 4: Smart Distribution Network

Level 4: Smart Energy ManagementManagement of end-use energy efficiency, aggregation, retail

Level 3: Smart IntegrationRenewable energy, DG, electric vehicles, electricity storage and aggregation

Level 2: Smart Distribution NetworkMore automated MV distribution networkswith self-healing capabilities.Monitored and controlled LV networksICT supported processes

SMAR

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D1. Active Demand ResponseD2. Energy Efficiency from integration with Smart Homes

D3. Metering infrastructureD4. Smart metering data processing

D5. DSO integration of small DERD6. System integration of medium DERD7. Integration of storage in network mgtD8. Infrastructure to host EV / PHEV

D9. Monitoring and control of LV networkD10. Automatisation and control of MV networkD11. Methods and system supportD12. Integrated communication solutions

Source: European Electricity Grid Initiative

For further information:

SETIS section on Smart electricity gridshttp://setis.ec.europa.eu/technologies/Smart-grids

European Technology Platform for the Electricity Networks of the Future http://www.smartgrids.eu

European Energy research Alliance Joint Programme on Smart Grids http://www.eera-set.eu/eera-joint- programmes-jps/smart-grids/

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Smart Electricity Grids

works with information technologies such as sensors, digital meters and a communication network.

Barriers

According to the EEGI, particular challenges arise from the change from “supply follows load” to “load follows supply”, real-time balancing, the introduction of aggregators and the multi-layer control structure of smart grids.

The main technological challenge identified by the EEGI stems from the integration of the many different technological elements, stakeholders and business models involved in smart electricity grids. Meanwhile, consid-erable flexibility, together with appropriate market and control structures, is needed to coordinate the increasing amount of inter-mittent, variable renewable energy on the networks.

Other barriers include the current lack of harmonised regulations and standardisation regarding grid issues and public opposition to certain forms of new installations.

Needs

There is a need to set out standard rules and guidelines in some areas while removing administrative barriers in others. As a first

step, in 2011 the EC mandated the various European standards organisations to adopt a set of standards for smart grids.

Standards are especially needed in commu-nication, smart metering, network integration and grid connections to facilitate interopera-bility and foster the integration of Distributed Energy Resources (DER) at lower cost.

Close coordination is needed between trans-mission system operators (TSOs) in order to realise a truly pan-European grid. At the same time, distribution system operators (DSOs) need to manage their grids as sys-tems, as an increasing amount of genera-tion and active loads is connected to the distribution grid.

Effective measures are needed to safeguard personal information on consumers that is shared between stakeholders.

Installed capacity

According to the International Energy Agency, overhauling the European power sector will involve the second largest gross capacity addition after China in the period up to 2035, adding almost 750 GW. About three quarters of these additions will be renewable energy technologies - mostly wind and solar PV. And as these technologies have shorter lifetimes than conventional power plants, even some recent additions will need to be replaced

before 2035. This expansion is in spite of a slowdown in demand of about 11 %.

It will also be important to invest in intercon-nections, especially to integrate the growing share of renewable energies, to smooth out their variability and to reduce the need to add conventional power capacity. Smart grids will increasingly make use of local storage technologies and demand side management, which could offset the need for new trans-mission and distribution lines.