K-MEG Direction & Business Strategy Park, Sang Doug MKE Office of Strategic R&D Planning Contents Ⅰ. K-MEG Task Overview Ⅱ. K-MEG Concept III . Demonstration Site Overview IV . Business Model KOREA - MICRO ENERGY GRID 01 K-MEG Task Overview K-MEG Task Overview K-MEG Task Development of Leading Technology for Future Industry Task for Creating Early Achievements Korea-Micro Energy Grid Business Objective Develop Total Energy Solutions to Efficiently Generate and Use Energy, and Realize Energy Self-Sufficient City(Building) Administrator : MKE Office of Strategic R&D Planning Organizer : Samsung C&T Duration : July 2011~June 2014 (3 yrs) |4| K-MEG Task Overview Overview ■ Task Goals K-MEG Task Final Goals - Development and demonstration of system to improve use efficiency by 30% - Establishment of Micro Energy Grid using electricity, heat, gas & other energy sources - Development and commercialization of Plug and Play Micro Energy Grid that is highly applicable to different environments & markets ■ Budget (Unit : 1,000 won) Private Sector Year Government Contribution Cash Physical Assets Year 1 18,810,000 1,340,474 8,193,465 28,343,939 Year 2 18,810,000 2,946,150 8,017,027 29,773,177 Year 3 18,592,000 2,959,594 8,067,287 29,618,881 Total 56,212,000 7,246,218 24,277,779 87,735,997 |5| Total K-MEG Task Overview K-MEG Task Structure Organizer Commercialization Task Force Provides management support for K-MEG Project Head of K-MEG Task 1 Group 2 Group Steering Committee Advisory Committee Makes decisions Provides advisory & technical support 3 Group 4 Group 5 Group Development of K-MEG K-MEG Biz Model K-MEG Energy Development/Establishment Establishment of DC Distribution Energy Consumption Optimal Demonstration & Commercialization of K-MEG Energy Integrated Generation Grid Establishment K-MEG Open-Type Test Bed Management System Operation System No. of participants 21 No. of participants 11 No. of participants 13 No. of participants 20 15 No. of participants * Including overlapped participants |6| K-MEG Task Overview K-MEG Participants – By Sub Task 1 Group 2 Group 3 Group Samsung Everland Hanwha S&C KEPCO KDN Samwoo A&E Iljin Electric Samchully S1 Wooam Corporation Power21 Nara Controls Omni System Brenex Ecosian Power21 Kotec Engineering Omni System SQI Soft Elecpower Woowon M&E YPP Woowon M&E Wintech ENG Xprime Sanion Elecpower Nexus Community Omni System JEENNETWORKS Sungkyunkwan Unv. KD Power 5 Group 4 Group ABIsystems Seoul Nat’l Unv. MAT KEPCO KDN Gagyo Tech LG Innotek Donga Elecomm Sungkyunkwan Unv. Rootech YPP Sanion Entec E&E Airtech System Daeryuk Ecosian Alu EnC Xprime Ohkyung Com Tech Elecpower Samwoo TEC KAIST Daekyung Enertech Hyosung Ebara KD Power Engineering Kapjin Power21 KESCO Maxfor KERI Sundosoft KICOX Interpower M&D JEENNETWORKS NSRI Sungho Electronics Samsung C&T KETI ETRI ETRI KETI KFRI KAIST KIER Kwangwoon Unv. 21 11 13 |7| 20 15 KOREA - MICRO ENERGY GRID 02 K-MEG Concept K-MEG Concept K-MEG Key Points Convergence-Integration & Ability to Operate Shifting between Energies Energy Self-Reliance Integration • Integrate various energy sources • Develop a self-reliant model to supply energy to isolated areas • Complement Smart Grid’s macro grid • Converge & integrate a range of element technologies Off Grid - Establish infra within a unit area & link to backbone grid Electricity Heat Gas - Generate, distribute, optimize consumption of electric power within a unit area & secure linkage with backbone grid for exchange - Link facilities related to energy generation, storage, distribution by installing decentralized power system |9| K-MEG Concept K-MEG Concept From Macro Grid To Micro Grid! Redefine Use of Electric Power, Gas, Heat! Redefine Energy Use COP (Coefficient Of Performance) Is an indicator to evaluate performance of heat efficiency of refrigeration machine. Individual Macro Grid Integrated Micro Grid | 10 | K-MEG Concept K-MEG Block | 11 | K-MEG Concept K-MEG Model Structure Separate Energy Consumption & Supply into Several Blocks by Character Based on IT Operation System to Freely Model Blocks Commercialize Energy Blocks in a short term by establishing platform Platform Business | 12 | KOREA - MICRO ENERGY GRID 03 Demonstration Site Overview Demonstration site Overview Demonstration Site Structure Heat Grid Electric Grid Gas Grid Off Grid Banwol –Sihwa Nat’l Industrial Complex Guro Digital Nat’l Industrial Complex Gyeonggi SME Biz Center (GSBC) PE-IGCC (Hwasung, Gyeonggi) VTT in Finland COEX Off-Grid SNU Gwanak Campus SUNY Stony Brook in US VTT in Finland CITRIS HQ in US First Town, Sejong City | 14 | Demonstration site Overview Domestic Demonstration Sites Gyeonggi SME Biz Center (GSBC) Guro Digital Nat’l Industrial Complex Seoul Nat’l Unv. COEX PE-IGCC | 15 | Banwol –Sihwa First Town, Sejong City Nat’l Industrial Complex Demonstration site Overview Overseas Demonstration Sites VTT Off-Grid CITRIS HQs | 16 | SUNY Stony Brook Medical Center Demonstration site Overview Guro G-Valley Demonstration Organizer : Samsung C&T Demonstration Objective • Establish Korea’s largest Micro Energy Grid Complex • Aim to save energy by 20% • Introduce Korea’s first Energy Management System for a block of buildings Overview • • • • • • Location: Guro-dong, Guro-gu, Seoul Size: 32 blocks, 4,100 companies Land Area : 452,647㎡ Use: Apartment-type factory, office, etc. Completion Year : 1974 Demonstration Size : 17 Buildings in one block (Apartment-type factories, eMart, etc.) Applied Technology Status • Demonstration Commissioning(Evaluation, Simulation) & Optimized Design • Establishment of AMI(Advanced Metering Infrastructure) System • Participation in DR(Demand Response) Market • Establishment & Operation of User Feedback Service • Establishment of BEMS(Building Energy Management System) [Shared Areas of Stores, Apartment-type Factories] • Establishment of gBEMS [Linking to TOC(Total Operation Center)] • Replacement with High-Efficient Energy Devices (LED, Air-Conditioner Outdoor Heat Exchangers, etc.) | 17 | Demonstration site Overview Banwol –Sihwa Nat’l Industrial Complex Demonstration Organizer : Samsung C&T, Hyosung, Everland Demonstration Objective • Establish Heat Grid to efficiently supply reused sources (such as steam & electric power) by reusing waste heat from industrial complex, depending on different demand conditions • Develop commercialization model for Heat Grid Overview Applied Technology Status • Location : Wonsi-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Jeongwang-dong, Siheung-si, Gyeonggi-do • Size: Banwol (5,099 Companies), Sihwa (8,389 Companies) • Land Area : Banwol : 15,374,000m2, Sihwa :16,568,000m2 • Use : National Industrial Complex for Metal, Petrochemical, etc. • Completion Year : Banwol (1987), Sihwa(2006) • Demonstration Size : Supply(4 Companies), demand(6 Companies) • • • • • Demonstration Commissioning (Energy/Evaluation, Assessment, Simulation) Establishment of Energy Grid Application of Smart Meter (AMI), Smart Cabinet Board, Sensor System Establishment of Energy Saving Technology & Heat Grid EMS Realization of Heat Trade System & Link to TOC | 18 | Demonstration site Overview COEX Demonstration Organizer : KT Demonstration Objective • Demonstrate optimized energy for large complex building • Demonstrate energy integration management by integrating heterogeneous BAS Overview • Location: 159, Samsung-dong, Gangnam-gu, Seoul • Size: Land Area 1,217,970 m2 (368,436 pyeong), Area managed by COEX 213,691pyeong (approx. 58%) • Use : Commercial/Office Facilities • Completion Year : 1964 • Demonstration Size : Part of Commercial Facilities Applied Technology Status • Evaluation & Prediction of Building Energy [Improve BEMS’s Heating/Cooling Energy Optimization Guide Function] • Heterogeneous BAS Integration Technology [Demonstration in COEX Artium Building] | 19 | Demonstration site Overview Seoul National University Demonstration Organizer : KD POWER Demonstration Objective • Pilot Project to demonstrate Green Campus & Green School Biz Model • Test Bed for applying DC distribution Overview • • • • • Location: 56-1, Shinrim-dong, Gwanak-gu, Seoul Size: Land Area 4,200,000m2, 211 buildings Use : Lecture rooms, offices, R&D buildings Completion Year : 1970 Demonstration Size : Material Engineering Dept. Building (33th building) (3 stories above the ground, Land Area 2,280m2) Applied Technology Status • Demonstration Commissioning & Optimized Design • Development of DC Distribution Technology • Establishment of Demonstration Site with DC Distribution Applied • Thin-Film BIPV (Building Integrated Photovoltaic) • Linking AMI System & TOC • Establishment of Energy Saving Technology & BEMS | 20 | Demonstration site Overview PE-IGCC Demonstration Organizer : Samsung C&T, Wintech ENG, NFRI Demonstration Objective • Industrial complex’s Off-Grid model • Secure energy self-reliance & competitiveness by generating electric power energy Overview • Location : 544-16, Jaan-ri, Bibong-myeon, Hwasung-si, Gyeonggi-do • Demonstration Size : Establishment & Test of Gasification of 2 Units of 75kW Steam Plasma Torch • Gasification of Low-Quality Coal Compared to Existing IGCC • Saving Fuel Costs by 1/15 with High-Quality Coal Approx. 300 dollars/ton, Low-Quality Coal 20 dollars/ton Applied Technology Status • Gasification of Steam Plasma (Use Low-Quality Coal ) • Steam Plasma Torch • Synthetic Gas Refinement Equipment | 21 | Demonstration site Overview Gyeonggi SME Biz Center(GSBC / Gwanggyo Technovalley) Demonstration Organizer : Hyosung, Nara Controls Demonstration Objective • Establish energy cluster by generating/consuming/controlling energy flow • Optimize supply & competitiveness of heat/electricity energy via technologies linking fuel cell & heat pump • Introduce decentralized power supply using city gas • Suggest energy eco-friendly building model using active control technology • Establish integrated management system for building blocks & user participation service Overview • Location : Yeongtong-gu, Suwon-si, Gyeonggi-do • Use : Complex buildings with Exhibition Hall, Meeting Room, Offices, etc • Completion Year : 2001 Applied Technology Status • Energy Management Technology : BEMS, DR, Decentralized Power Supply, etc. • High-Efficient Construction Technology : LED, Fuel Cell, Waste Heat Recovery, etc. | 22 | Demonstration site Overview First Town, Sejong-si Demonstration Organizer : Samsung C&T, KT Demonstration Objective • Establish EOC System to integrate & control data supplied by OEMS & BAS • Secure energy efficiency to operate government buildings at First Town, Sejong-si • Develop energy operation efficiency biz model & secure operation know-how through demonstration • Expand application of energy saving technology for different building uses (office, commercial buildings, etc. Overview Applied Technology Status • Construction Period : July 2007 ~ 2012 (Scheduled) • Demonstration Size : Establishment of System to Link 4 Target Buildings (Resident Support Center, Fire Station, Post Office, Health Center, etc) such as Complex Community Center | 23 | • • • • • EOC(Energy Operation Center) Public BAS Linkage Gateway Optimized Energy Management System(OEMS), etc. Smart Meter(AMI), Smart Cabinet Board, Sensor System Linking City Integrated Management Center & Electric Power, Carbon Emission Data • Real-Time Monitoring & Controlling Technology Using Mobil Devices Demonstration site Overview VTT Demonstration Organizer : Samsung C&T Demonstration Objective • Secure efficiency of integrated energy of electricity & local heating • Save energy by efficiently operating buildings • Apply for an overseas model for managing by grouping research facilities Overview • • • • Location : Espoo, Finland Use : Research & lecture buildings Completion Year : 1970 ~ (Varied) Demonstration Size : 4 Buildings (Thorough Demonstration), Approx. 100 buildings (Energy Monitoring) Applied Technology Status • Thorough Monitoring Environment Sensors & Energy Consumption • Energy Consumption User Feedback Service • Linking LOC & TOC • Integration of Heterogeneous BAS (Development & Application of Energy Saving Algorithm ) | 24 | Demonstration site Overview CITRIS HQs Demonstration Organizer : KETI Demonstration Objective • Demonstration model for active energy efficiency at operation stage • Demonstrate new convergence technology applying networks of smart sensors & IPv6 sensors Overview • • • • • Location : Berkeley, CA, US Land Area : 13,100 m2 Use : Offices, Research Buildings Completion Year : 2009 Demonstration Building : Sutardja Dai Hall (California Government ‘s Research Center - CITRIS HQs) Applied Technology Status • • • • Smart Sensors IPv6-Based Sensor Network Open ADR & Fast DR Technology sMAP-Based Energy Monitoring & Consumption Prediction Technology • Comfort Energy Efficiency Technology (Development of Separately-Run Air-Conditioning System Control & Comfort Level Measurement System) | 25 | Demonstration site Overview SUNY Stony Brook Medical Center Demonstration Organizer : Samsung C&T Demonstration Objective • Building energy efficiency model • Develop overseas retrofit market-type biz model based on demonstration in commercial buildings in USA • Develop total solutions for hospital building energy efficiency Overview • • • • Location : Long Island, NY, US Land Area : 20-story 3 Buildings, 72,000 m2 Use: Hospital(2 Buildings). Medical School & Office(1 Building) Completion Year : 1978 Applied Technology Status • • • • • • | 26 | Establishment of Building Energy Saving Technology & BEMS/BAS Smart Sensors & Sensor Network Demonstration Commissioning & Optimized Design Linking AMI System & TOC Linking US-Type Automated DR & Participation in DR Market Integrated Energy Control Between Buildings (gBEMS) Demonstration site Overview Off-Grid Demonstration Organizer : Samsung C&T, Hyosung, KD POWER Demonstration Objective • Demonstrate Off-Grid using renewable energies & K-MEG technology • Distribute & optimize Off-Grid energy Overview • Energy Off-Grid Model including Renewable Energy • Secure Overseas Reference of Establishing Off-Grid with Domestic Technology & Products Applied Technology Status • Off-Grid Design • Establishment of Off-Grid EMS, etc. | 27 | KOREA - MICRO ENERGY GRID 04 Business Model | 28 | K-MEG Business Model 400 ongoing global Micro Grid projects are categorized into five types, and China is most active compared to other regions. 5 Types of Global Micro Grid Projects Middle East South America Africa • Establish Smart Transport Systems such as EV-related charging/discharging infra(V2G, G2V) 1 Urban Development 88 20 10 14 7 7 2 2 1 2 Smart Grid 1 70 50 7 15 5 Renewable Energy Introduction 33 10 45 13 9 5 Technology Demo 40 31 22 9 9 Smart Transport System 29 6 46 3 152 87 72 30 3 4 5 Total** *Others include Industrial complex, smart house, IT development, etc. Source: Nikkei BP, Global Expert Interviews; Deloitte Analysis 81~100 India Smart Transport System 61~80 Japan Next-Generation • Test-bed to demo next-gen. technology at R&D stage (Mainly Technology to develop storage battery, DR) Demonstration 41~60 East Asia • Enhance local energy self-reliance & efficiency via decentralized power generation using wind, photovoltaic energies, etc. 21~40 Europe Renewable Energy Introduction 1~20 North America Smart Grid • Establish Smart Grid infra such as smart metering, power distribution, etc. (Unit: Number of Projects) China Urban Development • Comprehensively realize EcoCity with green building, house, smart transportation Ongoing Projects by Region (As of 2012) 2 3 1 1 3 24 1 11 5 1 1 4 2 ** Total project number all considering overlapped types & other projects by region 29 K-MEG Business Model Given the market attractiveness & internal competence overall, Urban Development Type is the most interested one. But, considering commercialization timing and K-MEG Preparedness,, careful approaches are required. Comprehensive Evaluation of Micro Grid Project by Type high Restrictions on Urban Development Micro Grid Projects “Most Interested Area” Market Attractiveness (Relative) Urban Dev. Pilot Stage Market Smart Grid Renewable EV Energy Transport System Demo Stage K-MEG Technology Next-Gen Tech Demo Low Low Feasibility (Relative) high * Over 80% of the ongoing urban development projects conducted in China requires over1 trillion won investment. Source: Deloitte Analysis 30 • Key technologies used for Urban Development (Holistic Urban Planning Design, Hybrid System TOC, Advanced ESS, DER) are only at an early stage, thus, delaying commercialization timing. • Key K-MEG technologies used for Urban Development (BAS, G-BEMS, Heterogeneous Energy Source Integration Management TOC) are still requiring verification process via additional demo projects. K-MEG Business Model K-MEG Smart Building Projects are to design, build & operate smart buildings with integrated control system for airconditioning, heating/cooling systems & lighting, and optimal decentralized electric power by introducing BEMS & BAS. K-MEG Smart Building Project Overview 4 Key Elements K-MEG Smart Building Project Outdoor Air Cooling Control PV Generation Sys. Building Passive Design (Insulated In/Outdoor Materials) LED Lighting BIPV Sys. Air-conditioning Sys. Mgmt Industrial Complex Smart Meter/ Sensor, AMI Small Cogeneration DR Control User Feedback BEMS BAS Off Grid Concept O&M(ESCO) • Manage & control buildings by integrating Smart Meter, AMI, BEMS, BAS, etc. • Design, build, operate buildings using optimized energy via decentralized electric power such as PV, BIPV Source: IEA, METI, ‘ZEB(Zero Emission Building) 실현과 전개에 관한 연구회’; Deloitte Analysis 31 Design/ Build • Total passive, active design & simulation, monitoring design/construction preemptively considering energy saving effects • Samsung C&T, Samwoo A&E Control/ Manage • Integrate various energy sources (Gas, Electricity, heat) related to lighting, power, air-con., heating & cooling via BEMS, BAS • KT, Hyosung, Nara Controls, Samsung C&T • Meet energy demand within buildings via decentralized Decentralized generation (Photovoltaic, solar, FCGeneration HP, etc.) & store for emergency • Hyosung, Samchully, KD Power O&M • Provide Smart Building operation/management & also ESCO consulting service • Samsung C&T, Everland K-MEG Business Model K-MEG Heat Grid Projects are to provide demanding party with renewable energies such as steam & electric power in an optimized manner to meet changing demand conditions by reusing waste heat coming from industrial complexes. K-MEG Heat Grid Project Concept Renewable Energy Using Waste Heat Building Player Production Consumption Incinerator Industrial Complex Profit Model by Interest Group Waste Heat from Discharged Water Factory A Factory B Factory C SPC APT A Others APT B V Turb ine • Secure gap btw Steam / Electric Power profits & initial facility investment APT C Steam / Electric Power Sales (Wholesale) Off Grid • Additional Profit Source - Selling CERs ** Steam / Electric Power Sales (Retail) Steam Supply V Demanding Party Revenue Stream Steam Supply Electric Power Supply Source: Deloitte Analysis 32 Producer • Main Profit Source - Selling Steam & Electric Power • Additional Profit Source - Selling renewable Energy Supply Certificate (REC)* K-MEG Business Model K-MEG Off Grid Projects are to establish independent electric power grid by using local energy sources to isolated areas such as islands. K-MEG Off Grid Project Concept Renewable Energy Supply Building Player Production Photovoltaic Energy Industrial Complex Profit Model by Interest Group Consumption Demand A Demand C Demand B Demanding Party Revenue Stream • Stable Electric Power Consumption Electric Power Supply Wind Power Small Hydro Power Electric Power Supply Demand D Demand E Provider • Profits from operation after installation • Subsidy from public institutes Demand F Investment Off Grid Others Electric Power Supply 33 Investor Public Institute Thank You !