SHAPING THE FUTURE OF SMART GRID 22.03. 2013 SMART GRID DEVELOPMENT IN NEXT STEP CITY • We are striving for to attract the world’s leading developers of smart grid infrastructure technologies • SE and its partners are currently building the intelligent power system of tomorrow – the smart grid • Next Step City is the R&D hub at the new SE HQ. This facility houses leading smart grid developers and provides direct access to the SE grid infrastructure. THE OPPORTUNITY… • Denmark’s renewable energy ambition in Energy Strategy 2050 presents sizeable challenges, and demands significant advances when it comes to creating the energy system of the future • We are already the world’s largest investor in smart grid technology, and we currently have the best smart grid infrastructure in Europe • We have established several ongoing living lab projects, which provide us with valuable experience and big data AGENDA • SMART GRID: WHY DENMARK? • SMART GRID: WHY SE? • LIVING LAB PROJECTS • SUMMARY AND NEXT STEPS DENMARK IS DRIVING SUSTAINABILITY SMART GRID WHY DENMARK? 100% RENEWABLE ENERGY IN ALL SECTORS BY 2050 150,0 • Political leadership 140,0 130,0 • Effective energy policy 120,0 110,0 • Adaptable business community that is willing to invest 100,0 90,0 80,0 70,0 60,0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 GDP CO2-emission, adjusted • Denmark still strives to maintain its position as global leader in the wind industry • The EU is set to implement energy policies in Europe based on the Danish energy efficiency model DENMARK ALREADY HOLDS A STRONG INTERNATIONAL POSITION The first steps have been made towards giving the industry a unique development potential According to report JRC Reference Report “Smart grid projects in europe” SMART GRID WHY SE? THE SE SUPPLY AREA IS UNIQUE IN THE SMART GRID CONTEXT WORLD-CLASS POWER GRID NETWORK AND THE MOST RELIABLE POWER SUPPLY SE power grid area is the most modern supply area in Denmark Third biggest supply area in Denmark • 7,000 km2 • 10,000 transformers, 20,000 km grid and ~120.000 cable boxes • All 261,000 customers have remotely-read smart meters – SE collects 25 million consumption data every day • All 60 kV stations (169 units) are fiber-connected to a digital backbone Most reliable power supply WORLD-CLASS FIBER BROADBAND AND THE MOST FIBER-INTENSIVE REGION IN EUROPE* Customers has access to the fastest internet in Europe • Local 10Gbps standard connections – with an option of 100Gbps (B2C segment) • Customized SLA (with 99,955 – 99,9995% uptime levels) – 24/7/365 support • Optical Fiber Core n*10Gbps • Cashing servers implemented for 2 key customers enable fast local access to traffic – securing optimal use of international capacity • Network Core site (TAR) located within 0.6 miles of the data center • Latency of 1-2 ms in SE network • Newly acquired cable partner Stofa has a nationwide data infrastructure for their +400,000 CATV customers * Source http://www.evm.dk Coverage ratio 80-100 % 60-80 % 40-60 % 20-40 % 1-20 % 0-1 % SMART GRID LIVING LAB PROJECTS VALUABLE EXPERIENCE FROM FULL-SCALE PROJECTS CO2 NEUTRAL SØNDERBORG BY 2029 UNIQUE FULL-SCALE SYSTEM INTEGRATION = GLOBALE OPPORTUNITIES • Since 2007, CO emissions have 2 been reduced by 18% and more than 800 green jobs have been created • Winner of the EU prize for sustainable energy solutions • Included in Clinton’s Climate Positive Development List • Experiences from this project have been sought out by urban renewal projects in large Chinese cities OTHER LIVING LAB PROJECTS SE is a central partner in several smart grid R&D projects. These include both technical and behavioral projects focusing on user involvement and real-life testing Energy storage Energy storage based on water in underground membranes Next Step Village Energy-producing housing Next Step Citizen Welfare techonologies that improves life throgh fiberbroadband services Micro combined heat & power Decentralized production with fuel cells in private households PHD on consumer behaviour Analysis of consumer behaviour related to energy consumption SMART GRID TAKE PART IN NEXT STEP… THERE IS SIGNIFICANT LOCAL PRODUCTION IN THE SE DISTRIBUTION NET – ESPECIALLY WIND • The energy sources in the future power system will fluctuate greatly • Wind power is to be the primary energy source by 2050, accompanied by solar power, heat pumps, biomass and waste heat • There is already a significant amount of local wind energy production in the SE distribution net Division of locally-installed capacity 2012 (%) 6% (63 MW) Total: 1,064 MW 36% (381 MW) Onshore wind CHP 58% (620 MW) Solar PV Local production units 10,400 774 • We expect at least 80-100 new wind MW to be installed over the next five years 89 Turbines CHP Solar PV WORKING TOWARDS 100% RENEWABLE ENERGY WILL REQUIRE INTELLIGENT DATA MANAGEMENT • The challenge is to balance production and availability with demand (installed capacity wind: 1,063 MW vs. max. demand 670 MW) Consumption and local production Monthly, 2012 (GWh) Consumption CHP Wind 300 1,063 200 37% 670 150 • Therefore, it is crucial to analyze big data and develop new methods for grid management • This will help to establish industry recommendations and provide a unique opportunity to gain valuable experience. Q1 Q2 Q3 Q4 Max prod. Max demand (MW) (MW) Flow on a 150/60 kV transformer (MW per minute) 100 0 -100 Surplus production TAKE PART IN SOLVING THE NEXT STEP CHALLENGE: BALANCING PRODUCTION AND CONSUMPTION IS ALREADY A CHALLENGE TODAY AND WILL INCREASE YEAR BY YEAR WE NEED TO COMBINE AND INTEGRATE ALL ENERGYSOLUTIONS TO SUCCEED Ravnevej 12, 6705 Esbjerg Ø, www.se.dk NEXT STEP CITY PROVIDES WORLD-CLASS FACILITIES TO SMART GRID DEVELOPERS World-class facilities include: • Close partnerships with leading Danish universities SDU, AAU and DTU • Located directly on top of the fiber backbone and power grid • Full-scale test laboratory with 256,000 connected consumers on the power grid • Technology related to to CO2-neutral buildings and renewable energy • Heliport with daily flights to Billund Airport • Conference center, showroom, kitchen and catering facilities WHO SOLVES THE NEXT STEP CHALLENGE? Today, the base load can be significantly increased, but it must be monitored in order to avoid short-term and future peak issues Consumption vs. net capacity, 2013 (examples) Percentage of capacity usage The vast majority of our transformers are in the “safety zone” with a lot of spare capacity. Therefore, free usage of our existing assets is a priority, as hot-spots (peak issues) are extremely rare ”Esbjerg” 100 Asset sweating Safety zone archetype Indsæt data i ex. (Quartz) Asset sweating Free capacity Capacity peak issues are expected to increase, along with the penetration of heat pumps, EVs, and new introductions ”XXXXX” 100 Risk of capacity shortage Hot-spot archetype Peak shavin g SE is developing innovative marketdriven value propositions and business models to increase the base load The combination of an increase in base load and more peak issues necessitates close monitoring of the development in capacity usage in order to react at the tipping point – from asset sweating to peak shaving Billede af VP ell. Smart home THE NEXT STEP CHALLENGE IS: DEVELOPING SE I-NET SE i-net • Better grid utilization • Less reinvestment • A stable power grid • Rapid repair of grid faults • Decreased losses in the grid • No reduction in comfort SE i-net demo projects • ProjectZero • The Holsted cell • Danfoss heat pumps • Phd about consumer behavior • Innovation center at HQ DIRECT INTERNATIONAL ACCESS POINTS http://submarine-cable-map-2013.telegeography.com/ DENMARK ALREADY HAS WHAT IT TAKES FOR AN EFFECTIVE IT INFRASTRUCTURE • The power system of the future will be extremely complex, and the volume of information needing to be gathered, communicated and processed will increase dramatically. Therefore, an effective IT infrastructure is vital.