Smart Grid Smart Energy Future a Reality “Smart grid” is the buzzword of the moment, but in the picture-postcard region of Upper Austria, it’s becoming a reality. Energie AG Oberösterreich has been rolling out a comprehensive intelligent network infrastructure, with 28,000 smart meters already in place. They enable the utility to manage power demand and supply intelligently, for example by switching power on or off in a home in a matter of seconds. The near future, according to the people involved, is becoming even more exciting. Photo: Reiner Riedler / Anzenberger Agency By Stefan Nicola Energie AG’s futuristic SolarCampus marks the site of Austria’s largest solar power station. Living Energy · Issue 5 /July 2011 · www.siemens.com/energy/living-energy 43 Smart Grid Smart Grid Photos: Reiner Riedler / Anzenberger Agency New wine in an old skin: The traditional facade of Father Leopold Fürst’s home in Gmunden conceals a state-of-the-art smart meter. 44 Living Energy · Issue 5 /July 2011 · www.siemens.com/energy/living-energy A winter morning in Gmunden, a small village of 13,000 residents in Upper Austria, can be mesmerizing. When the sun climbs above the snowcapped Alps and the rays touch the surface of the Traunsee Lake, it looks like someone has sprinkled gold dust over it. At the shore, in the cobblestoned market square, locals have set up their booths to sell produce from the farms that dot the region’s surrounding hills. Although they are lush green in summer, the hills now sport a heaving dusting of white. You’d almost believe that things remain here as they have always been. In a way, a stay in Gmunden, with its narrow alleys and traditional house fronts, feels like a trip back in time. Little would you expect that the future is about to start here any day – in homes like that of Father Leopold Fürst. Living Energy · Issue 5 /July 2011 · www.siemens.com/energy/living-energy 45 Smart Grid Smart Grid Photos: Reiner Riedler / Anzenberger Agency Both the old farmhouse and the new low-energy house of Regina Huemer-Schögl (with son Simon, above) and her family are equipped with AMIS meters. 46 Living Energy · Issue 5 /July 2011 · www.siemens.com/energy/living-energy A tall pastor with thin-rimmed glasses, disheveled hair, and a warm smile, Fürst opens a cabinet door in the corridor of his house in St. Konrad, a short drive from Gmunden’s city center, to show off his latest technical gadget. It’s a Siemens Automated Metering and Information System (AMIS) “smart meter,” one of the most advanced models available. These meters are truly intelligent – they not only measure consumption in homes, but also cover the entire supply chain, from power plant to consumer, by communicating through the power grid. Some 28,000 AMIS meters are already installed in the region, and this is just the beginning. For a total investment of some €150 million, Linz-based Energie AG Oberösterreich plans to roll out 500,000 AMIS meters over the next decade. They’re intended to benefit Living Energy · Issue 5 /July 2011 · www.siemens.com/energy/living-energy 47 Smart Grid Smart Grid smart grid growth markets such as China and the USA, Siemens will push its internal development and also look to buy small and medium-sized companies. But back to Upper Austria – to Father Leopold Fürst and his new smart meter. What has changed for him? “The whole feeling of things,” he says, laughing, before adding, with a smile and a shrug, that things have been more or less the same. “I hope this doesn’t disappoint you – but it’s still just a meter for me.” Automated Metering and Information System (AMIS) AMIS is an integrated smart grid application consisting of meters and load-switching devices linked through data nodes to a back-end control center. Siemens offers this solution for optimization of network-operating processes by combining metering with management of distributed systems. More Than a Meter Some of the benefits for grid operators include: ■ Data transmission from end user to operator ■ Automated billing and tariff administration ■ Monitoring capacity use of infrastructure ■ Minimizing system downtime ■ Integration of small decentralized plants into distribution channels AMIS equips both customers and operators for the challenges of dynamic energy markets. utilities as well as customers, and help blaze the trail into a new energy age. Siemens intends to back up that transition. The global smart grid sector, which includes intelligent power lines, sensors, and transformer technology, is a €100 billion market, of which Siemens can address €30 billion, according to a spokesperson for Siemens’ smart 48 Living Energy · Issue 5 /July 2011 · www.siemens.com/energy/living-energy grid business. The aim is to secure a 20 percent share of this important market, which can be expected to grow in the future. The technology giant seems to be on track. Its smart grid sales rose by 10 percent in 2010 compared to the previous year, to €1.1 billion, and its meters are among the most soughtafter in the world. To succeed in Photo: Reiner Riedler / Anzenberger Agency In the test room of Energie AG: The AMIS smart meter creates a win-win situation for consumers and utilities alike. It won’t be for long – Father Leopold might soon become much more attached to his new gray meter. Some features are already available to him. If he moves into a new apartment, for example, he can simply phone in to Energie AG’s call center to have his power switched on remotely via the smart grid infrastructure in a matter of seconds – there’s no need for the technician to drive all the way to his home. And there is much more to come. The experts of Energie AG, who are rolling out the smart grid infrastructure, are as excited as actors before a big premiere. “What’s happening here in Upper Austria with the Siemens AMIS smart meter and the smart grid really is a revolution,” says Werner Steinecker, a member of the board of Energie AG and the company’s chief technical officer. The utility built its first power station in Gmunden back in 1902, but to show how it sees the future, it invited a small group of journalists to its SolarCampus, a futuristic, box-shaped building made of steel and glass that overlooks fields decked with shiny blue solar cells. The rapid rise of renewables – Energie AG expects that some 10,000 solar power plants will be installed in Upper Austria over the next several years – is a challenge for the grid. Experts agree that the current power infrastructure can’t accommodate the fluctuating renewable energy sources such as solar, wind, and biomass. It would be like running the Internet through a switchboard. New networks are needed, and at the heart of this so-called “smart grid” is the smart meter, which could inject unparalleled flexibility and transparency into everyday electricity consumption. Energie AG began thinking about smart meters and a smart grid in the early 2000s, “at a time when there was no market and no regulation,” Steinecker says. This summer, Energie AG will launch a new power tariff that enables customers with an AMIS smart meter to pay variable rates at different times of the day. Electricity “There’s a huge leverage with which we can play without the customer even noticing. People will still have warm homes and hot water at all times, but they’ll save energy costs.” Johann Kaltenleithner, Head of the Metering Services Department, Energie AG will be cheaper, for example, at night or in the morning, and more expensive during times of peak demand. For example, customers who program their heat pump accordingly end up with a smaller bill. A Win-Win Situation The utility also benefits. It doesn’t need to buy as much expensive peak power and can better manage the grid, resulting in a more stable network. Moreover, Energie AG doesn’t need to send employees to switch power on and off or check consumption on-site. “It’s really a win-win situation,” adds Steinecker. The new tariff comes with a Webbased portal that customers can log Energie AG Oberösterreich is a Linz-based utility with a history that dates back 120 years. Active in nine European markets, Energie AG’s core business lies in energy, water, and waste disposal. The federal province of Upper Austria holds the majority stake in Energie AG, which employs around 7,000 people. Living Energy · Issue 5 /July 2011 · www.siemens.com/energy/living-energy 49 Smart Grid Smart Grid households, but also individual appliances in them. For example, a refrigeration room in a factory could be cooled down further than usual on a night when wind power is abundant, and be taken off the grid for a few hours the next day. But what about customer convenience? Will Father Leopold have to wash his robe at 3 a.m. or face horrendous power prices? Is this just a more playful way to make money? Energie AG and Siemens vow that customers won’t feel a thing – except more cash in their wallets. el. The farm is home to the young couple Regina Huemer-Schögl and Robert Huemer, their three-year-old son Simon, his grandparents, and Felix, a red cat that one day, a few years ago, simply arrived and decided to stay for good. Farm Leaps into the 21st Century (Left to right) Johann Kaltenleithner, Werner Steinecker, and Manfred Litzlbauer outside Energie AG’s SolarCampus. into from their computer or their mobile phone. Via easy-to-understand graphics, they’ll see how much power they consume at what time of day, and they’ll be able to compare that to energy efficiency benchmarks. Father Leopold can wave goodbye to his confusing power consumption bill that used to come once a year – the AMIS smart meter is able to monitor electricity flows every 15 minutes. “It’s similar to the new digital fuel consumption display in my car,” says Alexander Schenk, the man overseeing the AMIS business at Siemens AG Österreich. “I never thought I’d care, but I have developed a real ambition to keep fuel consumption down.” Via the smart meter and a modern ripple control receiver (9,000 are already installed in homes), Energie AG will be able to manage not only 50 Living Energy · Issue 5 /July 2011 · www.siemens.com/energy/living-energy Appliances such as dishwashers, washers, and dryers account for just 8.5 percent of a typical household’s energy consumption. The real energy gobblers are heating and warm water systems, which make up a staggering 85 percent. In Upper Austria, many households have heat pumps installed – perfect for flexible power switching. “That’s a huge leverage with which we can play without the customer even noticing,” says Johann Kaltenleithner of Energie AG. “People will still have warm homes and hot water at all times, but they’ll save energy costs.” The utility says it can imagine rolling out iPhone and iPad apps so users can see when power is cheap, and switch their heating system on or off while on the road. Then, a smart meter could be like a computer game that saves you money. “There are armies of software developers out there who are already working on these things,” Schenk says. But will consumers really care, especially those who don’t want to bother with computers or new technology? What about the many farms and rural communities in Upper Austria? Well, don’t underestimate customers’ willingness to adapt. Via narrow gravel roads that meander around the rolling terrain above Gmunden, Kaltenleithner takes the reporters to a farm tucked away in the hills, some 700 meters above sea lev- Photo: Reiner Riedler / Anzenberger Agency Cash-Saving Convenience The 14-hectare farm is somewhat of a symbol for the transition going on in Upper Austria. Lots of cows used to roam the Huemer grasslands, but with today’s milk prices, a mediumsized dairy farm simply doesn’t pay off anymore. The eight cows that are left are fed with hay from the fields and will be sold to the meat industry when ready. The old farm building, with doors so low that you have to stoop down to avoid bumping your head, has been renovated, its aging, disconnected oven-heating system exchanged for a new one fed by wood pellets cut from the trees growing on the hills. The young couple also built a new, low-energy house next to the old grange – it has a geothermal energy heating system and a large winter garden. “We have the new smart meters in both houses,” says HuemerSchögl, as she opens a wooden compartment in the corridor of the old homestead and points to the three rectangular boxes that link the farm to the new energy age. The family already benefits from a tariff that allows Energie AG to switch off the farm’s hay-drying system, installed in a large barn, for a few hours at midday during summer months. That saves the family money, and the utility has excess power to balance out the grid. With the new smart grid infrastructure, tariffs like that can be designed even more flexibly and individually. Regina Huemer-Schögl is excited about the Web portal that’s about to be introduced. She says that for a large household like hers, it would be great to see when and where the most power is consumed. “I think then we could save even more,” she says. “Eighty percent of the AMIS smart meter’s possibilities still lie buried within its electronics. We’ll unearth those over the next several years, and then things will be possible that we might not even be able to imagine now.” Werner Steinecker, Chief Technical Officer, Energie AG For Energie AG and the AMIS developing team, the new tariff is just the first step. A functioning smart grid such as the one Energie AG has in mind for Upper Austria would link customers directly to the power market – for example, by enabling them to sell electricity generated from their rooftop solar panels to the grid, or to use it at home when household prices are high. A future smart grid would also integrate power-charging stations and use electric cars as a storage pool to manage energy flows within the network. It could feature smart grid-ready appliances (these are being developed at the moment) that can switch themselves on or off, depending on the power price. And there are many other possibilities that will certainly come up, Steinecker predicts. “Eighty percent of the AMIS smart meter’s possibilities still lie buried within its electronics,” he says. “We’ll unearth those over the next several years, and then things will be possible that we might not even be able to imagine now.” Stefan Nicola, a politics and energy journalist based in Berlin, is the Europe correspondent for the US news agency United Press International (UPI). He also writes for the European Energy Review, an energy publication for decision makers. Further Information www.energieag.at www.siemens.com/energy/amis Living Energy · Issue 5 /July 2011 · www.siemens.com/energy/living-energy 51